Zida records US$1,2 billion investment in Q3

ZIMBABWE’S pro-business policies continue to boost investor confidence attracting over US$1 billion in new investments during the third quarter to September 2024 with the mining sector leading the pack at US$579 million in projected investments value, followed by the energy, manufacturing and construction sectors.

The mining sector is a major contributor to the economy, accounting for 13 percent of the gross domestic product and employing over 50 000. The sector also generates more than 70 percent of the country’s exports.

In its third-quarter report, the Zimbabwe Investment and Development Agency (Zida) said there was a nine percent increase in the number of licences issued during the period compared to second quarter of 2024, with a seven percent decrease in the licences issued in the same quarter in 2023.

Zida said the increase in the number of licences issued is linked to improvement in licensing processes, confirming investors have embraced using the online DIY Licensing Portal.

Of the 168 new licences issued with a projected value of US$1,171 billion, the mining sector had the highest projected investment value, which accounted for 50 percent of the aggregate investment value, followed by the energy sector with 22 percent and the mining sector accounting for 16 percent.

“We are pleased to report that the quarter recorded a nine percent increase in the number of licenses issued compared to the previous quarter.

“In total, 168 new licenses were issued in the just ended quarter, with a projected investment value of US$1,171 billion,” Zida chief executive officer, Mr Tafadzwa Chinamo, said.

“Also, pleasing is the fact that investors have fully embraced the online DIY Licensing Portal. On September 1, 2024 the agency adopted the digital DIY Portal as the sole means by which investors can apply for the Zida Investment License.

“In terms of the sectors investors are obtaining licences to operate in, the mining sector continues to attract the most number of investors, closely followed by the energy sector,” said Mr Chinamo.

However, during this period, the agency recorded a 66 percent decrease in the projected investment values, when compared to the same period in 2023.

There was a 56 percent decline in the number of licences renewed in the period under review in comparison with the same period in 2023.

The report said globally, for the period 2023 to the end of quarter 3 in 2024, there was a 100 percent timeous renewal rate.

“This shows that most investors licensed from 2022 are now renewing their licences upon expiry. In a bid to encourage all licensed investors with overdue licenses and those due for renewal to renew their licenses, the agency activated a campaign advising and reminding investors of the expectation for them to do so and avoid penalties,” said Mr Chinamo.

“Out of the 266 projects newly licensed in 2022, 72 were identified as operational by the end of September 2024, based on the licence renewal applications processed.

“This shows that 27 percent of the projects licensed in 2022, were operational in 2024. The total actual investment reported upon the renewal of these licenses amounted to US$137,29 million, primarily attributed to capital equipment imported into the country by foreign shareholders.”

The Second Republic led by President Mnangagwa has set its sights on tapping into the immense potential of the country’s mining sector. Zimbabwe has 60 mineral occurrences, according to official Government reports, the major ones being diamond, platinum, gold, nickel and lately lithium, among others, that can be fully exploited for quick economic turnaround.

According to the latest Mining Industry Prospects for 2025 report findings, mining firms are set to spend approximately US$500 million next year on various capital projects with executives indicating general optimism in the sectors prospects and willingness to spend more, a new mining report shows.

The report shows that gold capital projects have a financial outlay of US$65 million, coal sector players intend to inject US$20 million, ferrochrome sector (US$25 million), platinum firms (US$2,8 million ) and lithium sector is expecting to inject US$380 million.