Online Reporter
Tapiwanashe Mangwiro
ZIMBABWE is increasingly turning to private capital to bridge its infrastructure financing gap, with figures from the second quarter of 2025 indicating a significant surge in interest.
The Zimbabwe Investment and Development Agency (ZIDA) has revealed it appraised 20 public-private partnership (PPP) proposals worth nearly US$1,9 billion, marking what could be the strongest quarterly PPP pipeline in recent memory.
The proposals span a wide range of economic sectors, including energy; mining; real estate; tourism; and information and communication technology (ICT); and gaming.
“The volume and diversity of PPP proposals under review this quarter signal a robust appetite from both public entities and private investors to co-develop long-term infrastructure solutions,” ZIDA noted.
“Zimbabwe is becoming more deliberate in attracting structured, bankable partnerships.”
This surge in activity points to a quiet, yet meaningful shift in Zimbabwe’s development strategy: less dependence on Treasury-funded capital projects and more focus on de-risked, investor-driven infrastructure.
Why the shift to PPPs?
The shift is driven by a convergence of constraints and opportunities. The Government ministries and local authorities face budget shortfalls, while demand for roads, housing, water systems and power stations continues to rise.
With international financiers cautious and donor funding dwindling, PPPs are becoming a policy of necessity.
“It is a rational shift,” said economist Ms Tariro Dube, noting that Zimbabwe’s public sector has neither the fiscal room nor the technical depth to execute mega projects alone.
“But to be clear, PPPs are not a silver bullet. They require careful structuring, clear risk allocation and honest politics. The real work begins after the MoUs (memoranda of understanding) are signed.”
ZIDA is addressing this with urgency, emerging as the central coordinating body for PPP vetting.
It has fast-tracked a new register of transaction advisers to support ministries and municipalities, with 11 firms listed in Q2 alone.
This aims to ensure projects are bankable before being promoted within the circles of investors.
“PPP is not about outsourcing public responsibility,” ZIDA wrote in its report. “It is about structuring projects so that everyone carries their fair share of the risk and reward.”
Key projects in the pipeline
At the top of the PPP list is the proposed US$455 million rehabilitation of the Hwange Thermal Power Station, which has received Cabinet approval to proceed.
Equally notable is a US$1,002 billion toll-concession road upgrade project on the Harare-Chirundu corridor, currently under review.
Other prominent projects include a US$3,1 million mining exploration joint venture with China’s TBEA Group; a US$62 million bulk infrastructure project for the Masuwe Special Economic Zone in Victoria Falls; and a US$200 million refractory gold processing plant, backed by Fidelity Gold Refinery.
The pipeline is not solely composed of mega projects.
In Q2, the Harare City Council proposed a micro-scale initiative to install advertising-integrated street signs.
The National Museums and Monuments of Zimbabwe also joined in, proposing a zipline attraction at Domboshava and the restoration of an aviary at the Mutare Museum.
“The PPP pipeline tells us that infrastructure is not just about asphalt and turbines,” said investment analyst Ms Rufaro Muzenda. “There is a realisation that tourism, heritage and even gaming can be modernised with private input. This is healthy diversification.
“The good news is that local authorities are buying into the model. But there’s still a long way to go in terms of technical readiness. Many proposals lack basic financial modelling or stakeholder frameworks.”
Scrutiny and future outlook
Of the 20 projects reviewed in Q2, only five received clearance to advance to full feasibility study, while three were sent back for revision. Others remain in various stages of appraisal.
“Zimbabwe has tried PPPs before, but this time the difference is institutional rigour,” said economic analyst Mr Namatai Maeresera. “We are seeing more methodical evaluations, which is a good sign. But let us not get ahead of ourselves; the success of this model will depend on project execution, transparency and continuity of policy.”
Mr Maeresera highlighted past PPP failures linked to unclear ownership structures, lack of investor guarantees and abrupt policy shifts.
“A good pipeline is not a guarantee of delivery,” he cautioned. “ZIDA must keep building trust and ensure that these partnerships are not just politically convenient, but economically viable.”
ZIDA itself acknowledges this, stating: “Only commercially viable, socially beneficial and environmentally sound projects will advance.”
The agency has also focused on capacity-building.
In Q2, the agency held workshops with officials from the Marondera Municipality, Zvishavane Town Council and the Attorney-General’s Office, covering topics ranging from legal frameworks to project finance structuring.
In response, ZIDA is preparing further decentralised training and considering sector-specific PPP templates to streamline development timelines.
As Zimbabwe moves closer to rolling out its investor single window, integrating digital licensing and dispute resolution, the ecosystem for PPPs appears to be strengthening.
Analysts agree this is not a short-term play; it is a shift towards making private capital a co-owner in public development.
“This is the largest and most diverse PPP pipeline we have seen in years,” said ZIDA chief executive Mr Tafadzwa Chinamo. “If successfully executed, these projects will unlock jobs, increase infrastructure resilience and build investor confidence.”
In a region where competition for capital is intensifying, Zimbabwe’s message is subtle but clear: It is not only open for business, but open for partnerships as well.
“We are looking for more than money,” Mr Chinamo said.
“We are looking for partners with solutions.”
