Zimbabwe is expected to receive $4 billion in investments this year from both domestic and foreign investors, to be spread across a variety of economic sectors, mainly mining, 263Chat-Business has learnt.
According to the Zimbabwe Investments Development Agency (ZIDA) these estimates are based on inquiries received by the agency which are a reflection of keen investor-interest in the country.
Of the projected US$4 billion investments for the year -which will be measured in both equity cash as well as capital goods- US$1.5 billion is expected to be from international investors (FDI), US$0.5 billion from domestic investors and US$2 billion as reinvestment into existing operations.
According to ZIDA CEO, Tafadzwa Chinamo as at second quarter (June) US$ 445 million worth of investment had been actually committed.
“We are seeing quarter by quarter growth,” Chinamo told journalists during an engagement meeting in Harare.
“Mining by far outstrips any other investment area and it’s been mainly lithium…Major investors have been from China but we have investors from about 30 different countries.”
Chinamo said the agency has already surpassed its 2023 projected FDI target of US$1.5 billion based on figures for the second quarter (Q2) 2023.
In the first quarter projected investment stood at US$760 million before an additional US$1.1 billion was tabled by investors in the second quarter.
Zimbabwe has in the last two decades lagged behind its regional peers in terms of investment inflows owing to a myriad of challenges mainly emanating from its hostile political and economic landscape.
Currently the country is experiencing acute inflation as well as exchange rate volatility with its currency rapidly losing value.
“If all is normal in terms of stable exchange rate and stable inflation, investments would be 10 times these figures,” added Chinamo who however stated that the positive investment figures noted by the agency are not being captured by the country’s narrative.
