Online Reporter
Nqobile Bhebhe,Zimpapers Business Hub
The Zimbabwe Investment and Development Agency (ZIDA) has attributed the recent decline in projected investment value to a shift in sectoral focus, noting increased investor appetite in lower capital-intensive sectors such as services and technology, in contrast to the traditionally dominant infrastructure and manufacturing sectors.
In its latest report, the Agency revealed that although there was a marked increase in the number of new investment licences issued, the total projected investment value dipped by 10 percent compared to the same period in 2023.
“In 2024, the investment value recorded was US$8,628.14 million, constituting a six percent decrease compared to the previous year, which recorded US$9,669.00 million of projected investment made into the country. The 10 percent decrease in projected investment value suggest that the average value of individual investments has decreased,” said ZIDA.
The Agency said the drop does not reflect waning investor interest in Zimbabwe, but rather a changing landscape of investment preferences.
“Several factors may account for this. One possible factor is a shift in sectoral focus, with growing interest towards sectors requiring lower capital investment, such as a surge in smaller-scale service or technology-based investments compared to large-scale infrastructure or manufacturing projects,” ZIDA explained.
The Agency also noted that the global slump in lithium prices has forced some investors to reconsider their initial capital-heavy commitments, instead pivoting towards ventures that are leaner in resource demand.
“The drop in global lithium prices has also led many investors to change their plans, pivoting towards lower capital ventures,” the report added.
