Online Reporter
Nqobile Bhebhe
Zimpapers Business Hub
THE Zimbabwe Investment and Development Agency (ZIDA) has noted a surge in investor appetite for lower capital-intensive sectors such as services and technology, amid shifting preferences from previous traditional drawcards like manufacturing and infrastructure.
ZIDA said the shifting patterns had resulted in a decline in projected investment value amid the shift in sectoral focus.
In its latest report, the investment agency said there was a marked increase in the number of new investment licences issued, although 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 billion, constituting a six percent decrease compared to the previous year, which recorded US$9,67 billion of projected investment made into the country.
“The 10 percent decrease in projected investment value suggests that the average value of individual investments has decreased,” said ZIDA.
ZIDA added that 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 global slump in lithium prices, ZIDA noted, has forced some investors to reconsider their initial capital-intensive commitments, instead pivoting towards ventures that are leaner in terms of resource demand.
