Tapiwanashe Mangwiro
Senior Business Reporter
ZIMBABWE’s investment pipeline strengthened in the third quarter of 2025, with the Zimbabwe Investment and Development Agency approving 203 new licences valued at US$3,26 billion, a development the agency says demonstrates rising investor confidence and effective facilitation systems.
The total represents a 178 percent year-on-year increase from US$1,17 billion in the same period in 2024 and a 6,8 percent jump from the previous quarter.
ZIDA said the steady growth reflects a maturing investment environment underpinned by policy consistency and digital facilitation.
“These results demonstrate a strengthening investment pipeline supported by policy consistency, digital facilitation and our targeted engagement strategy,” said ZIDA Chief Executive Officer Tafadzwa Chinamo.
“They also highlight a maturing investment environment, where capital inflows are increasingly directed towards high-impact, value-creating sectors.”
According to ZIDA, foreign-currency cash injections accounted for US$2,82 billion, underscoring renewed international interest in Zimbabwe’s emerging sectors.
Capital equipment imports reached US$354 million, while foreign-exchange loans and debt financing stood at US$72,5 million.
Local contributions totalled US$3,15 million.
Compared with 2024, both the number of licences and the value of projects expanded sharply. The number of licences rose 20,8 percent year-on-year, from 168 in the third quarter of 2024 to 203 this year, while the value of projects jumped almost threefold.
ZIDA attributed the surge to large-scale, capital-intensive projects in mining and energy where investors continue to leverage foreign financing.
However, local participation declined, with domestic contributions falling from US$128 million last year to just over US$3 million this quarter, a shift ZIDA says reflects the predominance of foreign-driven projects but also signals international confidence in Zimbabwe’s investment framework.
Harare once again anchored the national investment map, attracting US$2,43 billion, or nearly 75 percent of the quarter’s total projected value.
ZIDA said: “The capital’s performance was largely driven by a single large-scale venture capital initiative focused on infrastructure development across energy, transport, real estate and telecommunications.”
Matabeleland North came a distant second with US$326,7 million (10 percent), followed by Matabeleland South on US$118,4 million (3,6 percent) and Midlands at US$94,3 million (3 percent).
Mashonaland West contributed US$106 million, while Mashonaland Central and East recorded US$38 million and US$75 million respectively.
Manicaland drew modest interest with US$15 million and Bulawayo recorded US$6,7 million in new projects.
“Harare Province remained the leading destination for new investment licences supported by its well-developed economic ecosystem anchored in manufacturing, construction, real estate and services,” ZIDA said.
“However, the strong showing in Matabeleland North and South highlights growing investor appetite for resource-based and regional infrastructure projects outside the traditional hubs.”
From a sectoral perspective, financial services dominated new licences by value, accounting for US$2,15 billion (65,9 percent) of the quarter’s projected investment. The energy sector followed with US$543 million (16 percent), reflecting continued investor interest in power generation and renewables.
The mining sector ranked third, drawing US$379 million (11,6 percent) across 105 projects, the highest number of licences issued to any sector.
Manufacturing attracted 58 licences worth US$120 million, while services registered 13 projects totalling US$51 million. Smaller allocations went to agriculture (US$5,6 million), construction (US$5,3 million), tourism (US$2,6 million) and health (US$2 million).
ZIDA said: “The energy and mining sectors continued to benefit from strong global demand for critical minerals and clean-energy projects,” adding that investments in manufacturing and services showed renewed momentum after a period of slow growth.
“The dominance of financial services and energy reflects the structural shift towards high-value, capital-intensive projects,” the agency said. “At the same time, the rise in manufacturing and services licences suggests growing diversification and confidence in Zimbabwe’s productive base.”
In a further sign of stability, licence renewals increased by 53 percent to 164, up from 107 in the previous quarter.
ZIDA attributed this to stronger follow-up mechanisms and improved after-care support to existing investors. Renewal compliance also improved, with 31 percent processed on time compared to 24 percent in the second quarter.
“The rise in licence renewals is a clear vote of confidence from investors already operating in Zimbabwe,” Mr Chinamo said. “They are not only enduring but reinvesting and expanding, which is key for long-term economic growth.”
While Harare led in projected value, the Midlands Province recorded the highest actual investment inflows, amounting to US$607 million, representing 31 percent of monitored projects during the quarter. Harare followed with US$410 million (28 percent), and Masvingo with US$397 million (27 percent).
The Manufacturing, Mining and Agriculture sectors accounted for 89 percent of all realised investment, led by manufacturing at US$645 million, mining at US$472 million, and agriculture at US$202 million.
Energy (US$94 million) and services (US$36 million) recorded smaller but steady inflows, while tourism, financial services and ICT remained subdued.
ZIDA said: “The concentration of actual investments in primary and value-adding industries reflects the structural composition of Zimbabwe’s investment portfolio.”
They added that the steady growth of energy and services signals emerging diversification prospects that could be strengthened through targeted incentives.
The quarter also benefited from the full rollout of ZIDA’s e-Regulations Portal, which digitally maps licensing and permit procedures across 20 ministries and agencies.
The platform is expected to reduce processing delays and enhance transparency, a move ZIDA believes will improve Zimbabwe’s Ease of Doing Business ranking.
“Digital facilitation tools such as the e-Regulations Portal are transforming how we engage investors,” Mr Chinamo said. “They offer clarity, speed and accountability, all essential for building a competitive investment destination.”
ZIDA said it would continue to strengthen its pipeline through targeted promotion and after-care support.
With the fourth quarter expected to build on current momentum, the agency projects sustained capital inflows particularly in renewable energy, infrastructure, and manufacturing.
“As we prepare to transition from NDS1 to NDS2, our focus remains on execution and impactful investments that deliver measurable economic outcomes for all citizens,” Mr Chinamo said.
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