Online Reporter
Nqobile Bhebhe Zimpapers Business Hub
THE Zimbabwe Investment and Development Agency (ZIDA) recorded a sharp rise in domestic direct investment in the first quarter of 2026, reflecting growing local participation and joint venture activity, chief executive officer Mr Tafadzwa Chinamo has said.
According to the agency’s latest quarterly report, domestic direct investments surged by 2,406 percent, from US$4,08 million to US$102,38 million, signalling increased confidence among local investors and stronger collaboration with foreign partners.
The report also shows a notable shift in the structure of investments, 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.
“As we reflect on the first quarter of 2026, I am pleased to report that the Zimbabwe Investment and A Development Agency (ZIDA) has made significant and measurable progress in strengthening the investment environment, despite a challenging global economic and geopolitical landscape,” said Mr Chinamo.
“This progress has been driven by key policy developments, enhanced investor engagement and improvements in investment facilitation.
“The period also reflects a shift towards higher value investments and more structured investment activity, while highlighting the need to strengthen conversion and execution going forward.”
Mr Chinamo said a key milestone during the period under review was the approval of the Public-Private Partnership (PPP) Guideline by Cabinet, which provides a clear and standardised framework for the preparation, appraisal and implementation of PPP projects.
“ This is a significant development for Zimbabwe’s investment landscape, as it enhances transparency, improves coordination across Government, and strengthens investor confidence through clearer processes and risk allocation mechanisms.
“The Guideline is expected to accelerate infrastructure delivery and create a more predictable and structured environment for private sector participation.”
He noted that investment patterns were evolving, with a bias towards fewer but more capital-intensive projects.
“There was a notable shift in the structure and quality of investment, with a 62% increase in projected investment value compared to the previous quarter driven by fewer but more capital intensive projects.
Domestic Direct Investments increased significantly, with contributions 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%, reflecting sustained investor confidence alongside increased use of leveraged financing.”
The agency also recorded improved compliance among investors, particularly in licence renewals.
“Encouraging progress was recorded in licence renewals, with total increasing by 53 percent and timely renewals improving to 22 percent reflecting the impact of strengthened monitoring and follow-up initiatives,” said Mr Chinamo.
Looking ahead, ZIDA says it will continue to focus on enhancing the investment climate and delivering tangible economic outcomes.
“Looking ahead, ZIDA remains committed to attract, facilitate, establish investmets for economic growth and development.
“ We move forward with renewed momentum and a clear focus clear focus on delivering impactful and measurable economic outcomes as we position Zimbabwe as a preferred investment destination on the continent.”
