According to the latest data from the Zimbabwe Investment and Development Agency (ZIDA), nearly 30 percent of the projects licensed in 2022 are now operational, with actual investments totaling US$450.3 million.
Out of the 266 projects licensed that year, 78 were operational as of June 30, 2024, based on renewal assessments. These projects had initially projected investments of US$2.4 billion, reflecting that 29 percent of licensed projects are operational and 19 percent of projected investments have been realized.
ZIDA Chief Executive Officer Tafadzwa Chinamo noted in the agency’s second-quarter 2024 report that much of the actual investment was in the form of capital equipment contributed by foreign shareholders.
The foreign currency cash injection totaled US$85.3 million, received through official banking channels and ZIMRA Form 47 declarations.
Sector-specific implementation rates are as follows: 50 percent for energy and tourism, 45 percent for services, 42 percent for manufacturing, and 20 percent for mining.
Investment realization mirrors these trends, with 35 percent for services, 20 percent for both services and manufacturing, and only 5 percent for mining. Mining projects often have longer development periods, which can affect investment timelines.
In the second quarter of 2024, the number of licenses issued increased by 8 percent to 154, compared to 143 in the first quarter, though it represented a 10 percent decrease compared to the same quarter last year.
This rise is attributed to improvements in the licensing process, particularly with the adoption of the online Do It Yourself (DIY) portal, which now accounts for 28 percent of all applications since its launch.
ZIDA also saw a 68 percent increase in projected investment values, reaching US$1.8 billion during the reviewed period, up from approximately US$1 billion in the same period of 2023. Notably, there was a significant increase in proposed investment values from US$622 million in the first quarter of 2024.
The provincial distribution of investments highlights that Harare Province remains a key area for investment, especially in manufacturing and services. However, Mashonaland West Province had the highest investment projections at 40 percent, followed by Midlands Province with 33 percent.
Among the 154 new licenses issued in the second quarter of 2024, the manufacturing sector had the highest projected investment value, accounting for 41 percent of the total, followed by energy at 35 percent and mining at 21 percent.
License renewals fell by 75 percent compared to the same period in 2023, due to fewer eligible licenses and reduced investor compliance. Only three licenses were renewed on time, resulting in a 16.6 percent renewal rate for the period. The overall renewal rate from the first quarter of 2023 to the second quarter of 2024 stands at 14 percent, indicating low investor compliance. In response, ZIDA is launching a campaign to remind investors to renew licenses at least three months before or after expiry, aiming to improve on-time renewal rates.
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