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Business Reporter
The Zimbabwe Investment and Development Agency has reported a 2 406 percent increase in domestic direct investment and a 62 percent rise in projected investment value compared to the previous quarter, with the chief executive pointing to significant improvements in the investment environment despite a fall in the total number of licences issued.
ZIDA chief executive Tafadzwa Chinamo, said the Agency had made “significant and measurable progress in strengthening the investment environment, despite a challenging global economic and geopolitical landscape”, in a statement accompanying the Agency’s first-quarter report for 2026.
“This progress has been driven by key policy developments, enhanced investor engagement, and improvements in investment facilitation,” Mr Chinamo said.
Among the most significant achievements cited by the Mr Chinamo was Cabinet’s approval of the Public-Private Partnership (PPP) Guideline during the quarter, which provides a standardised framework for the preparation, appraisal and implementation of PPP projects.
Mr Chinamo described the development as “significant for Zimbabwe’s investment landscape”, adding that it “enhances transparency, improves coordination across Government, and strengthens investor confidence through clearer processes and risk allocation mechanisms”.
The Agency also enacted substantial fee reductions under the ZIDA General Investments (SI 17 of 2026) and Special Economic Zones SI 18 of 2026) Regulations. Mr Chinamo said the downward review of licensing fees was “a deliberate intervention to reduce the cost of entry and enhance Zimbabwe’s competitiveness, reaffirming the country’s commitment to being a cost-competitive investment destination and signalling that Zimbabwe is open for business”.
A flagship achievement during the quarter was the launch of the Business and Knowledge Process Outsourcing (BKPO) Framework in collaboration with the Ministry of Finance, Economic Development and Investment Promotion.
“By leveraging our demographic dividend, a youthful, English-speaking workforce with a 93,7 percent literacy rate, Zimbabwe is being positioned as a premier outsourcing hub connecting European and Asian time zones,” Mr Chinamo said.
“This premises-based model, supported by targeted fiscal incentives, enables the country to tap into global outsourcing value chains and further strengthens its competitive positioning.”
The period recorded a remarkable increase in domestic direct investment, with contributions rising by 2,406 percent — from US$4,08 million to US$102,38 million — indicating stronger domestic involvement and joint venture activity.
The capital structure also shifted, with capital equipment imports accounting for 46 percent of total investment, followed by foreign currency cash injections at 25 percent and foreign loans at 22 percent. Mr Chinamo said this reflected “sustained investor confidence alongside increased use of leveraged financing”.
Encouraging progress was recorded in licence renewals, with total renewals increasing by 53 percent and timely renewals improving to 22 percent. Chinamo attributed this to “the impact of strengthened monitoring and follow-up initiatives”.
The CEO highlighted that the agency’s international engagements continued to yield tangible outcomes, including deepened relationships with Kenya and Ghana through Joint Permanent Commissions, together with collaboration with UNCTAD on the Investment Single Window prototype.
“This reflects a shift from procedural transparency towards the automation and integration of Government services, which is essential for modern investment facilitation,” Mr Chinamo said.
The development of the National Investment Single Window, anchored on the e-Regulations platform, is expected to further improve efficiency, transparency, and coordination across Government.
The Agency recorded mixed performance in investment licensing, with the number of new licences issued declining by 32,2 percent — from 214 to 146 — and total projected investment value decreasing by 59,6 percent year-on-year.
However, Mr Chinamo noted a notable shift in the structure and quality of investment, with a 62 percent increase in projected investment value compared to the previous quarter, driven by fewer but more capital-intensive projects.
Mr Chinamo extended special thanks to the Agency’s principals and stakeholders “for their unwavering support that has made it possible for the Agency to function smoothly and in turn achieve the milestones we present in this report”.
“Looking ahead, ZIDA remains committed to attract, facilitate, establish investments for economic growth and development,” he said.
“We move forward with renewed momentum and a clear focus on delivering impactful and measurable economic outcomes, as we position Zimbabwe as a preferred investment destination on the continent.”
