Zimbabwe, the country of Victoria Falls, lies in the southern part of Africa. The country is rich in diverse wildlife, natural resources, and warm culture. From agriculture to mining, Zimbabwe shows promising potential for nationwide economic growth as well as personal business success. Its economy has experienced ups and downs, with inflation and rising prices in recent years. However, these challenges can be controlled through advancements in technology, better business-focused training, access to required resources, and tools to enhance business operations. Besides, support from the government and major organisations can create a gradual effective impact on the growing economic prospects of Zimbabwe. This blog will discuss investment opportunities and guidelines to invest in Zimbabwe and many more.

This blog will discuss 

Reasons to invest in Zimbabwe like global demand, supportive government, steady infrastructural development etc.

Areas to invest in like – Mining, Agriculture, Tourism, etc.

Detailed guidelines for investors

Role of ZIDA in creating a bridge of trust for the investors 

Challenges of investing and ways to overcome the challenges

Recent Popular Investments in mining, energy and agricultural sector. 

Zimbabwe has great investment potential due to its rich resources in mining and farming. The government is working to introduce and improve investment-friendly policies. With such motivated manpower and government support, there are positive signs that Zimbabwe’s economy will grow further with the help of investors.

• Zimbabwe is rich in gold, diamonds, platinum, and lithium. Mining can be a great space for investment as it has high global demand.  

• The Zimbabwe Government supports investors in many ways and thus it has improved policies for the field of investment. 

• The country has fertile lands and thus cultivation of tobacco, maize, or soybeans is easier. A major part of the population still depends on agriculture. 

• Victoria Falls and national parks attract global tourists. Investing in tourism can be profitable because of the growing visitor numbers.

• Zimbabwe’s location connects key southern African markets. There is easy access to regional trade opportunities and supply chains.  

• Steady infrastructural development can be seen in Zimbabwe, thus this can be another sector to invest in. Roads, railways, and energy projects are improving gradually. 

• Skilled and Educated manpower is very much needed for strong efficient work processes of the industries. Zimbabwe is working on providing such a workforce. 

• Special Economic Zones offer tax breaks and business incentives. Investors receive different benefits for their business growth.   

Several potential sectors are there in Zimbabwe for investment, including agriculture, mining, tourism, manufacturing, and services. These sectors hold strong future growth prospects as the country is rich in natural resources and has been putting significant efforts toward economic development. Some ideas of the sectors are elaborated below: 

Mining:

Zimbabwe is one of Africa’s top 10 mineral-producing countries. It has around 40 different minerals. Key minerals include platinum, chrome, gold, coal, lithium, and diamonds. The country has the world’s second-largest platinum deposits and high-grade chromium ores, with 2.8 billion tons of platinum and 10 billion tons of chrome. Zimbabwe contributed to global mineral production in 2019 – 

• 7.3% of the world’s platinum
• 5% of the world’s palladium
• 1.5% of the world’s diamonds
• 1.4% of the world’s lithium

The mining sector makes up 12% of Zimbabwe’s GDP and 80% of its exports. According to historical challenges, poor infrastructure and governance have affected progress, but currently, new reforms are creating hope for more growth and investment. 

Agriculture:

Zimbabwe has a strong agricultural industry. It includes sugar, cotton, vegetables, meat, dairy, etc. There are many chances for growth in this sector but there are also many challenges. Agriculture is an important part of Zimbabwe’s economy as it helps with food supply and poverty. A decade ago, agriculture made up about 20% of Zimbabwe’s economy but it has then dropped to about 10%. However, 70% of the people in Zimbabwe rely on agriculture for their work and income. In 2024, agriculture made up about 17% of the economy, provided 40% of exports, and gave jobs to 70% of the population. Despite weather problems and poverty making things hard, the government is working to improve farming by using land, water, forests, and wildlife in smarter and more sustainable ways to increase production.

Manufacturing:

The manufacturing sector of Zimbabwe is very diverse. It is connected to other important parts of the economy. Investment opportunities in this sector include joint ventures or partnerships with companies under the Industrial Development Corporation and other private companies. Some manufacturing sectors are – 

• Textile industry: Zimbabwe produces one of the best cotton in the world. Many great opportunities can be seen in this sector for investment. 
• Meat Processing: This sector has a very attractive market, specially in Europe and the Far East.  
• Canning of vegetables and fruits: Backward linkage is created with the growth of canning of vegetables and fruits. Good opportunities are there in this sector for the future. 
• Motor Vehicle Assembling & Manufacturing: This part of manufacturing relies mostly on joint venture investment. Some include the manufacture of buses, fuel-efficient vehicles, and the manufacture of spare parts locally.

Tourism:

Victoria Falls, Hwange National Park, Mana Pools National Park, Great Zimbabwe Ruins, Matobo National Park, Lake Kariba, etc. are some of the greatest tourist attractions in Zimbabwe. Investment opportunities in this sector include resorts, hotels, convention centers, exhibition parks, amusement parks, shopping malls, restaurants, etc.

To invest in Zimbabwe the following guidelines can be helpful for investors- 

Three main ways to enter in Zimbabwe’s investment network- 

ZIA (Zimbabwe Investment and Development Agency): ZIA helps local and foreign investors set up businesses in Zimbabwe. It makes business registration easy. 

ZSE (Zimbabwe Stock Exchange): ZSE is Zimbabwe’s main stock market where companies sell shares to raise money. It is regulated by the Securities and Exchange Commission.  

RBZ (Reserve Bank of Zimbabwe): RBZ is Zimbabwe’s central bank that controls money, inflation, and foreign exchange. It also makes sure banks and financial institutions follow regulations.

Greenfield Projects are particularly dealt with by the Zimbabwe Investment Authority (ZIA) by promoting and supporting both foreign and local investments. Greenfield Projects refers to new businesses started from scratch. Investors can set up their business in various ways. The most common among them is a private company limited by shares, which offers limited liability protection. Business activities are regulated under the “Companies Act” for companies and the “Cooperative Societies Act” for cooperatives, ensuring compliance with Zimbabwe’s legal framework.

The Reserve Bank of Zimbabwe (RBZ) through its Exchange Control Division manages foreign investments in businesses that are already existing. This is known as Brownfield investments. These investments often involve mergers, acquisitions, rights issues, and restructuring. Investors are required approval of Exchange Control. Foreign investors can invest up to 100% in unlisted companies for existing projects with the permission of Exchange Control. Applications for approval are submitted through Authorized Dealers (banks) to the Reserve Bank and the approval process typically takes up to about two days.

Foreign investors can invest up to 100% in primary bond issues. The purchase must be made using foreign currency through regular banking channels. There is no limit on how much each investor can participate. The investors can freely buy and sell bonds in the secondary market. However, investors must provide proof that the foreign currency has been transferred through normal banking. While disinvesting, proceeds can be freely sent abroad. Additionally, foreign investors can buy any other money market instruments. In both cases, any approval from the Reserve Bank is not needed.

The Zimbabwe Stock Exchange (ZSE) offers foreign investors a way to invest in the local economy through the stock market. From sectors like mining, agriculture, and tourism to services and manufacturing, it gives investors a wide range of options. Some companies on the ZSE are also listed on foreign stock exchanges. Foreign investors interested in trading on the ZSE must follow their regulations.

The government is creating Special Economic Zones (SEZs) under the Special Economic Zones Act. These zones focus on value addition and improving exports. The key sectors include agriculture, manufacturing, mining, tourism, services, and information communication technology. All investment proposals for the SEZs are looked after by the Special Economic Zones Authority.

External loans are secured at sustainable rates. It is done to support the economy’s productive sectors. Foreign investors are allowed to lend funds to local borrowers. Here, the Exchange Control Guidelines on External Borrowing (ECGEB) will be aligned. The guidelines show long-term financing by offering better pricing for loans with longer durations. Tobacco financing, shareholder loans, and national vendor finance follow a different pricing model. External loans up to USD 20 million are processed at the bank level and loans above that amount require approval from the Reserve Bank. To give assurance to the lenders, the Reserve Bank allows borrowers to secure their loans with assets like property, securities, minerals, or equipment though this also requires prior approval.

The Zimbabwe Investment and Development Agency (ZIDA) is the government’s primary investment promotion agency. It is established to help and support domestic and foreign investments from all sectors. ZIDA plays a very important role in regulating Zimbabwe’s chains of investment by coordinating processes, providing investor support, and ensuring compliance with the legal and regulatory frameworks.

1. Create and carry out strategies to attract investors.  
2. Help investors start and run their businesses.  
3. Set up and manage Special Economic Zones (SEZ).  
4. Support and review Public-Private Partnerships (PPPs).  
5. Assist investors after they start operations.  
6. Encourage investment across all regions of Zimbabwe.

There are three main ways to invest in Zimbabwe. First is “General Investment”, which allows investors to start and fully own a private business. Second, “Public-Private Partnerships”, lets the investors partner up with the government, local, or state-owned companies to run a business. Third, “Special Economic Zones (SEZs)”, which offer designated areas for business growth. The investors can apply to develop, operate, or set up a business in an SEZ with full support from ZIDA.

ZIDA issues investment licenses within 7 working days. Their “One-Stop Investment Services Centre (OSISC)” is dedicated to assisting investors. With experts from 12 government offices, the investors have the opportunity to get all the help they need to get the right licenses and permits for their business.

ZIDA’s aftercare service is very strong. It works with the OSISC to provide guidance and quickly resolve issues. Their Monitoring and Evaluation team checks up on the investors regularly to track their progress and address any problems. 

ZIDA helps the investors to connect with the local businessmen through different business associations and sometimes through a direct approach with the help of their matchmaking platforms.

ZIDA plays a great role in the investor chain of Zimbabwe. It has been successfully performing its duties by making investments easier, safe,r and rewarding. 

Investing in Zimbabwe shows great potential, but there are also some challenges. Some issues are as follows- 

• The value of the Zimbabwean dollar is dropping which is also causing inflation and reducing profit margins for investors.  
• The processes of investments are time-consuming and it takes a lot of time to get approvals too, which is slowing down businesses. Thus it creates frustration among the investors. 
• Frequent changes in government policies create instability, thus Investors face much uncertainty. 
• Increases in operational costs due to poor electricity, roads, and telecommunications limit business efficiency and growth.  
• It’s difficult for businesses to take loans and other financial services because of high interest rates and limited foreign currency. 
• Corruption and unfair business practices make the business environment unstable.
• Taxes, fees, and import duties create difficulties in running a business, which makes businesses more expensive and reduces profits.  
• Foreigners face legal barriers in cases of getting land ownership.
• There is a lack of skilled workers in specialized fields. 

Despite the challenges, there is still hope for strong support and solutions for investors. Here are some ways to overcome these obstacles-

• Using stable currencies like the U.S. dollar in transactions and investments can create a risk-free financial process.
• Zimbabwe Investment and Development Agency (ZIDA) provides investors with a detailed process and support in regulating a smooth investment process.
• Staying updated with government policies and working with local advisors can help investors adapt to the changes and bring out business strategies accordingly.
• Investing in private infrastructure projects or participating in public-private partnerships can help businesses ensure better access to resources.
• Seeking alternative financing solutions can provide better financial stability.
• Implementing transparent business practices and working with reputable legal firms can help investors deal with corruption-related risks.
• Exploring investment zones and negotiating tax incentives with the government can help reduce excessive costs.
• Partnering with local businesses can be a strategic way to regulate under Zimbabwe’s land ownership laws.
• Establishing employee training programs can create skillful manpower.

Significant investments across various sectors can be observed in Zimbabwe, which reflects its growing appeal to international investors.

Mining Sector

The mining industry in Zimbabwe has shown significant foreign investment, especially in lithium extraction. Since 2021, the country has received over $1 billion for the purpose of lithium investments and it was mainly from Chinese battery metal companies. In July 2024, Kuvimba Mining House, a state-owned company signed a $310 million deal with British and Chinese investors to build a lithium concentrator at the Sandawana mine. The facility will process 3 million tons of ore each year, producing 600,000 tons of lithium concentrate.

Energy Sector

In August 2024, the Facility for Energy Inclusion (FEI) gave $10 million to Cicada Solar Limited, a solar company in Zimbabwe. This money will help build solar power systems and provide clean energy to the country.

Agriculture Sector

In July 2024, British International Investment announced a $10 million loan to NMB Bank Zimbabwe. This loan has been given to help agricultural exporters and encourage sustainable farming practices. 

Zimbabwe presents a strong source of potential investment opportunities because of its dynamic and growing economy in various sectors like agriculture, manufacturing, mining, tourism, and ICT. With investor-friendly policies and access to diverse financing options, the country is effectively becoming a prime goal for both local and foreign investors. The government’s support in creating a stable, trustworthy, and supportive business environment showcases that the investment will be sustainable and will be efficient for long-term growth. By investing in Zimbabwe, investors can position themselves at the front line of a sustainable, attractive, and exciting market with numerous opportunities for profit and growth. So, don’t miss out on the chance to be part of such sustainable growth of business and investment.