Mishma Chakanyuka, Staff Writer 
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THE Zimbabwe Investment and Development Agency (Zida) says it witnessed an improvement in investment this year, as compared to last year, despite 2023 being an election year.
In an interview with The Financial Gazette, Zida’s acting chief executive, Theresa Muchinguri said the agency has registered almost 800 foreign investors with an estimated total investment value of US$1 billion as of August 31, 2023.
“This year was an election year, normally, you would expect that there would be a slowdown in terms of interest, but if we compare last year’s performance to this year, we have performed better this year with an increased number of investors coming through.
“Last year, I think we were speaking of about 500 investors, this year, and the year is not even out and we are already at 800,” Muchinguri said on the sidelines of the Zida Stakeholder Engagement Input Forum held in Harare yesterday.
The extractive sector has remained the leading investment area as most foreign investors are currently interested in the mining sector. Source: Zida
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Zimbabwe has been struggling to attract significant foreign direct investment (FDI) in the recent past due to a host of problems, including a massive debt overhang, a negative perception in the international community brought on by the country’s 2000 land redistribution exercise, tainted human rights record and disputed elections.
Between 2000 and 2018, the country’s FDI was hovering around US$500 million yearly. However, with Chinese investments in mining, the annual FDI inflows have been rising over the last five years.
Muchinguri highlighted that the renaming of the ministry of Finance and Economic Development to the ministry of Finance and Investment Promotion will increase the ease of doing business.
“The whole aim is to ensure that we make this environment as conducive as possible to ease doing business in the country and make it as simplest as possible when investors come through,” she said.
Muchinguri noted that the extractive sector has remained the leading investment area as most foreign investors are currently interested in the mining sector.
The mining sector is followed by services, the manufacturing sector, and other sectors as well.
During the second quarter of 2023, the mining sector attracted the most investment, with 62 new licenses issued and a projected investment value of US$202,7 million.
The construction sector was the second-largest recipient of investment, with six new licenses issued and a projected investment value of US$59,78 million.
The services sector saw a significant increase in investment during the quarter under review, with 43 new licenses issued and a projected investment value of US$41,94 million.
At least 68 percent of the projected investment value for all licences that were issued during the quarter were in the energy sector.
It registered 12 new licences with a projected investment value of US$723,91 million.
“The global boom in demand for energy has seen an increase in the number of investor inquiries into the sector.
“The highest projection for investment was from Zhongjin Heli Energy (Pvt), which proposed to bring US$400 million towards coal mining and thermal power generation in the Matabeleland North province.
This is expected to eventually lead to increased power generation and reduction of the power supply deficit should all the projects be implemented as planned,” the agency said in its 2023 second-quarter report.
