Zimbabwe is a country rich in natural resources, fertile land, and a growing economy, making it a great destination for investors. However, for many years, bureaucratic hurdles and inconsistent policies hindered investment growth. In response, the government established the Zimbabwe Investment and Development Agency (ZIDA) in 2020 under the Zimbabwe Investment and Development Agency Act (Chapter 14:37) to create a more investor-friendly environment.

ZIDA serves as a one-stop investment center, streamlining processes for both local and foreign investors. It consolidates multiple investment-related agencies into a single entity, reducing red tape and making it easier to do business in Zimbabwe. The agency promotes key economic sectors, including mining, agriculture, tourism, manufacturing, and infrastructure development, offering incentives to attract investment.

By implementing strategic reforms, introducing digital solutions like the Do It Yourself (DIY) Licensing Portal, and facilitating Public-Private Partnerships (PPPs), ZIDA is playing a crucial role in positioning Zimbabwe as a competitive investment destination in Africa. This blog will discuss the services of ZIDA in detail.

About Zimbabwe Investment and Development Agency (ZIDA) 

Discusses the mandates and functions of the ZIDA

ZIDA’s Role in Regulating Special Economic Zones

Top investment opportunities in Zimbabwe.

The Zimbabwe Investment and Development Agency (ZIDA) is the country’s primary institution for investment promotion, facilitation, and coordination. Established under the ZIDA Act (Chapter 14:37) in 2020, the agency plays a critical role in creating an investor-friendly environment by streamlining regulatory processes and reducing bureaucratic obstacles.

ZIDA operates as a one-stop investment center, consolidating various investment-related agencies and ensuring that investors have a seamless experience when setting up businesses in Zimbabwe. The agency has the legal mandate to regulate domestic and foreign direct investment (FDI), Special Economic Zones (SEZs), and Public-Private Partnerships (PPPs). Below is shared the mandate and functions of ZIDA in detail.

1. Investment Promotion: A major part of ZIDA’s mandate is promoting Zimbabwe as an attractive investment destination. The agency carries out marketing and awareness campaigns to attract both local and foreign investors. Some of the key functions under this role include:

• Developing investment policies and strategies to enhance Zimbabwe’s competitiveness.
• Engaging international investors, trade bodies, and foreign embassies to market Zimbabwe’s investment opportunities.
• Conducting investment roadshows, summits, and trade fairs to showcase potential business opportunities.
• Providing up-to-date information on investment opportunities, incentives, and regulatory frameworks through publications and digital platforms.
• Encouraging reinvestment by existing investors through policy stability and ongoing support.

By actively marketing Zimbabwe as a favorable investment destination, ZIDA helps drive capital inflows, job creation, and economic growth.

2. Investment Facilitation: ZIDA simplifies the process of investing in Zimbabwe by providing a centralized and efficient investment facilitation process. Other key functions in this area include:

• Issuing investment licenses to both local and foreign investors, ensuring compliance with national laws.
• Providing a fast-track service for investors by reducing bureaucratic delays in business registration and approvals.
• Offering a one-stop service center where investors can access multiple government services, including company registration, tax registration, and sector-specific approvals.
• Providing advisory services to investors on Zimbabwe’s business environment, legal requirements, and sector-specific investment opportunities.
• Facilitating land allocation and approvals for investors in agriculture, mining, and infrastructure development.

ZIDA’s facilitation services help reduce the cost and time associated with setting up and running a business in Zimbabwe.

3. Regulation and Management of Special Economic Zones (SEZs): Special Economic Zones (SEZs) are designated geographical areas where businesses enjoy special regulations, incentives, and infrastructure support to 

• Promote investment, industrialization, and economic growth. 
• These zones are strategically designed to attract both domestic and foreign investors by offering tax benefits, streamlined business regulations, and improved infrastructure.
• In Zimbabwe, the Zimbabwe Investment and Development Agency (ZIDA) is responsible for the regulation, management, and development of SEZs, ensuring that they contribute to economic diversification, job creation, and export growth. The establishment of SEZs is guided by the ZIDA Act (Chapter 14:37), which provides the legal framework for their operation.

ZIDA is the primary authority overseeing SEZs in Zimbabwe, ensuring that they function effectively and align with national development goals. The agency’s regulatory responsibilities include:

1. Identification and Designation of SEZs: ZIDA, in collaboration with government ministries and economic experts, identifies areas suitable for SEZ development based on economic potential, infrastructure availability, and strategic importance. The criteria for SEZ designation include:

• Proximity to transport and logistics hubs (ports, railways, highways, and airports).
• Access to utilities (electricity, water, and telecommunications).
• Industry-specific needs, such as mineral-rich areas for mining SEZs or fertile lands for agro-processing SEZs.
• Potential for export-oriented industries to boost foreign exchange earnings.

ZIDA ensures that designated SEZs meet these criteria and align with Zimbabwe’s Vision 2030, which aims for an upper-middle-income economy through industrialization and economic growth.

2. Licensing and Regulation of Businesses Operating in SEZs: Businesses intending to operate within an SEZ must obtain SEZ status approval from ZIDA. The agency:

• Issues SEZ licenses to eligible companies.
• Ensures compliance with SEZ regulations regarding business operations, labor laws, and environmental impact assessments.
• Monitors investment activities to ensure they align with Zimbabwe’s economic priorities.
• Provides dispute resolution mechanisms to protect investor interests.

The licensing process has been simplified through ZIDA’s digital platforms, reducing bureaucratic delays and improving efficiency.

3. Administration of SEZ Incentives and Benefits: ZIDA ensures that businesses operating in SEZs receive the full range of benefits and incentives provided by the government. These include:

• Tax Holidays and Reduced Corporate Taxes – Companies in SEZs may receive corporate tax exemptions or reductions, typically for the first 5 to 10 years.
• Duty-Free Imports – Investors can import raw materials, machinery, and equipment duty-free to encourage manufacturing and value addition.
• Relaxed Foreign Exchange Regulations – SEZ businesses can retain a higher percentage of their foreign currency earnings, improving liquidity for international transactions.
• Simplified Customs and Trade Regulations – ZIDA ensures that SEZ businesses experience fast-tracked customs clearance and minimal bureaucratic hurdles.
• Employment and Skills Development Support – ZIDA facilitates training programs and workforce development initiatives within SEZs to create a skilled labor force.

By administering these incentives, ZIDA enhances Zimbabwe’s competitiveness as an investment destination.

4. Development and Management of Infrastructure in SEZs: One of the key roles of ZIDA is to ensure that SEZs have modern infrastructure to support industrial and commercial activities. This involves:

• Collaborating with government agencies to develop roads, electricity, water supply, and telecommunications infrastructure within SEZs.
• Facilitating Public-Private Partnerships (PPPs) for infrastructure development.
• Ensuring sustainable environmental practices in SEZ construction and management.
• Providing security and utilities to make SEZs attractive to investors.

By ensuring that SEZs have world-class infrastructure, ZIDA helps investors reduce operational costs and improve efficiency.

5. Promotion of Public-Private Partnerships (PPPs): To enhance infrastructure development and economic growth, ZIDA facilitates Public-Private Partnerships (PPPs) between the government and private investors. Some key responsibilities in this area include:

• Identifying key sectors and projects where PPPs can drive economic development, such as roads, energy, housing, and tourism infrastructure.
• Assisting government departments in structuring PPP agreements that benefit both public and private stakeholders.
• Providing technical and advisory support to ensure PPP projects comply with national policies and international best practices.
• Coordinating approvals for PPP agreements and ensuring smooth implementation.
• Monitoring and evaluating the performance of PPP projects to assess their impact on economic growth and public service delivery.

By leveraging private-sector expertise and capital, PPPs help bridge infrastructure gaps and improve service delivery in Zimbabwe.

6. Aftercare Services for Investors: To ensure long-term success for investors in Zimbabwe, ZIDA provides aftercare services that help businesses navigate the local market and address operational challenges. These services include:

• Assisting investors in resolving operational challenges related to licensing, permits, and government regulations.
• Facilitating dialogue between investors and government authorities to address policy concerns.
• Ensuring protection of investors’ rights under national laws and international investment treaties.
• Supporting business expansion efforts by providing information on new market opportunities and financing options.
• Monitoring and evaluating investor satisfaction to improve Zimbabwe’s investment climate.

By providing strong aftercare services, ZIDA ensures that investors remain engaged and committed to long-term business success in Zimbabwe.

One of the key mandates of the Zimbabwe Investment and Development Agency (ZIDA) is to enhance the country’s investment climate through policy advocacy and regulatory improvements. By working closely with government agencies, private sector stakeholders, and international investors, ZIDA ensures that Zimbabwe’s business environment remains competitive, transparent, and attractive to both local and foreign investors.

1. Recommending Legal and Regulatory Reforms: Zimbabwe’s investment landscape has historically faced challenges such as bureaucratic red tape, inconsistent policies, and slow administrative processes. To address these issues, ZIDA actively reviews and recommends reforms to improve the ease of doing business in Zimbabwe. Some of the key areas where ZIDA has pushed for changes include:

• Simplification of business registration processes – ZIDA has worked with the government to reduce the time it takes to register a business, cutting down bureaucratic hurdles and making the process more efficient and investor-friendly.
• Modernization of investment laws – ZIDA played a role in the enactment of the ZIDA Act (Chapter 14:37) in 2020, which consolidated various investment-related laws into a single, comprehensive framework, replacing outdated and fragmented legislation.
• Land ownership and security of tenure – For investors in agriculture, mining, and infrastructure, land security is a crucial factor. ZIDA has advocated for clearer property rights and longer lease agreements to enhance investor confidence.
• Tax and investment incentives – ZIDA regularly engages with the Ministry of Finance to review and improve tax incentives for investors, ensuring that Zimbabwe remains competitive compared to other regional markets.
• Strengthening dispute resolution mechanisms – To protect investors and enhance trust, ZIDA has promoted the establishment of alternative dispute resolution (ADR) mechanisms, ensuring that investors have access to fair and efficient legal recourse.

By pushing for these reforms, ZIDA is making Zimbabwe a more attractive and predictable investment destination.

2. Advising the Government on Investment-Friendly Policies: ZIDA serves as the bridge between investors and policymakers, providing insights into global investment trends and best practices. The agency advises the government on:

• Sector-specific policies – ZIDA provides input on policies related to mining, agriculture, tourism, energy, and technology, ensuring that they align with investor interests and international standards.
• Macroeconomic stability – Stable inflation rates, exchange rate policies, and financial regulations are key for investor confidence. ZIDA works with the Reserve Bank of Zimbabwe (RBZ) and the Ministry of Finance to create policies that protect investments and ensure financial stability.
• Foreign exchange regulations – One of the major concerns for investors is the availability and movement of foreign currency. ZIDA has been instrumental in advising the government on foreign exchange liberalization to allow investors greater access to repatriate profits.
• Labor laws and workforce development – ZIDA advocates for skills development programs, flexible labor laws, and competitive wage structures to ensure that Zimbabwe’s workforce meets investor needs.

By continuously engaging with the government, ZIDA ensures that investment policies remain progressive and responsive to global economic changes.

3. Collaborating with Government Agencies to Improve the Ease of Doing Business: ZIDA works closely with various government institutions to improve Zimbabwe’s ranking in the World Bank’s Ease of Doing Business Index. Some of the key collaborations include:

• Working with the Registrar of Companies to streamline business registration processes, reducing the time required to start a business.
• Partnering with the Zimbabwe Revenue Authority (ZIMRA) to simplify tax registration, VAT refunds, and customs clearance procedures for investors.
• Engaging with the Environmental Management Agency (EMA) to ensure that environmental impact assessments (EIAs) are processed efficiently for new projects.
• Collaborating with the Zimbabwe Electricity Supply Authority (ZESA) and local municipalities to guarantee that investors have access to reliable utilities such as electricity, water, and telecommunications.
• Developing public-private partnerships (PPPs) with banks and financial institutions to increase access to capital for investors.

Through these partnerships, ZIDA is reducing bureaucratic obstacles and making it easier for investors to set up and operate businesses efficiently.

4. Conducting Research and Publishing Investment Reports: To ensure data-driven policy formulation, ZIDA conducts research and market intelligence studies to provide stakeholders with accurate investment-related data. Some of the areas covered include:

• Annual Investment Reports – These highlight trends in foreign direct investment (FDI), sectoral performance, and investor confidence levels.
• Sector-Specific Reports – Research on mining, agriculture, energy, ICT, and manufacturing helps investors make informed decisions based on market

ZIDA has introduced several initiatives to boost investor confidence and ease business operations, including:

• DIY Licensing Portal – A digital platform that has simplified the investment licensing process, allowing investors to complete applications online.
• Multimillion-Dollar PPP Projects – Recent partnerships have been launched to address urban housing shortages, develop tourism infrastructure, and modernize Zimbabwe’s agricultural sector.
• Legal and Policy Reforms – The government, through ZIDA, continues to revise laws to ensure an investor-friendly regulatory framework.

To learn about investment opportunities and guidelines to invest in Zimbabwe and many more, you can read Investment Opportunities and Guidelines: Your Guide to Invest in Zimbabwe.

Zimbabwe is slowly turning into an attractive investment destination, with ZIDA playing a crucial role in improving the business climate. Through policy reforms, digitalization, and investor support services, the agency is making investment easier than ever, ensuring that Zimbabwe competes favorably with other African markets.

As Zimbabwe continues to open its doors to global investors, opportunities abound in mining, agriculture, tourism, and infrastructure. With the right support from ZIDA, businesses can thrive in Zimbabwe’s evolving economic landscape. Investors are encouraged to take advantage of ZIDA’s streamlined processes, incentives, and investment-friendly policies to establish and grow their businesses in Zimbabwe.

Frequently Asked Questions (FAQs)

1. What is ZIDA?

ZIDA is the Zimbabwe Investment and Development Agency, responsible for promoting and facilitating investment in Zimbabwe.

2. What services does ZIDA provide to investors?

ZIDA offers investment promotion, licensing, regulatory guidance, SEZ management, PPP facilitation, and aftercare services.

3. What are the main investment sectors in Zimbabwe?

Key sectors include mining, agriculture, tourism, manufacturing, ICT, and infrastructure development.

4. How can investors apply for business licenses in Zimbabwe?

Investors can use the ZIDA DIY Licensing Portal for a quick and seamless application processing experience.

5. Are there investment incentives in Zimbabwe?

Yes, especially in Special Economic Zones, where businesses enjoy tax incentives and relaxed import/export regulations.