Online Reporter
Nqobile Bhebhe
THE energy sector has emerged as Zimbabwe’s top investment destination for the first quarter of the year, driven by a transformative US$2 billion thermal power project in Kalungwizi, Binga.
The 600MW coal-powered initiative by independent power producer Yuanlin Energy Investments (Pvt) Ltd has positioned the energy sector at the forefront of national investment activity.
According to the latest quarterly report from the Zimbabwe Investment and Development Agency (ZIDA), the massive coal-fired power plant, which is part of a broader US$2,71 billion energy investment, also catapulted Matabeleland North Province to the top of the national projected investment rankings.
“Regarding projected investment value, Matabeleland North Province led all provinces, with US$2,61 billion, representing 54,95 percent of the total. This was driven by one project, which plans to establish a 600MW coal-powered thermal power plant in Binga at an estimated cost of US$2 billion,” ZIDA reported.
The province’s strategic location and rich coal reserves have increasingly positioned it as the heart of Zimbabwe’s energy and extractives sector.
Its growing portfolio of large-scale energy infrastructure and mining projects is reshaping Zimbabwe’s industrial landscape and strengthening national energy security.
The Kalungwizi thermal power plant is expected to support Zimbabwe’s electricity needs, particularly for mining and manufacturing industries that remain critical to the country’s economic recovery.
Across the country, Zimbabwe recorded US$4,7 billion in projected investment during the first quarter.
Following Matabeleland North, Mashonaland West attracted US$928,04 million (19,54 percent), while Masvingo came third with US$512 million.
Other provincial figures include Midlands (US$262 million), Harare (US$207 million), Matabeleland South (US$152 million), Mashonaland Central (US$43 million), Bulawayo and Mashonaland East (US$13 million each respectively), and Manicaland (US$5 million).
ZIDA said the energy sector led the way in attracting capital, with approximately US$2,72 billion (57,39 percent of the total projected investments) driven largely by coal and thermal power initiatives in Matabeleland North.
The mining sector followed with US$906,8 million (19 percent), while manufacturing drew US$877 million.
The report also noted that four high-impact projects were added to ZIDA’s pipeline, with a combined value of US$1,2 billion. These include a US$2,4 million National Railways of Zimbabwe Concrete Sleeper plant in Bulawayo, currently under pre-feasibility study.
The project will produce pre-stressed monolithic concrete sleepers and rail products, with an anticipated annual factory output of 60 000 sleepers. It is projected to generate approximately US$4,6 million in revenue, with a payback period of six months.
Other projects include the US$1,1 billion coal-based nitrogenous fertiliser plant in Mkwasine by Verify Engineering, a US$27 million 10-storey housing development along Livingstone Avenue in Harare under a PPP/Debt Real Estate model by the Ministry of National Housing, and a US$63 million residential development of 100 blocks of flats with 1 200 units in Waterfalls, Harare.
ZIDA chief executive officer Mr Tafadzwa Chinamo revealed a notable uptick in investment activity, with 207 new investment licences issued in Q1 — up 44.8 percent from the same period in 2024.
“While licence renewal activity grew in volume over the same period, the proportion of on-time renewals declined marginally, from 16,7 percent to 14,6 percent,” Mr Chinamo said.
“To address this, ZIDA introduced automated renewal notifications and strengthened follow-up efforts to encourage greater compliance. Investment composition this quarter indicated that 60 percent of actual inflows comprised imported capital equipment, largely directed to the mining and manufacturing sectors, while 11 percent originated from foreign exchange equity.”
He said investor interest remained particularly strong in mining, agriculture, and renewable energy, with ZIDA playing a proactive role in supporting sustainable investments, project development, and regulatory clarity.
