Business Reporter
The Zimbabwe Investment and Development Agency (ZIDA) has set an ambitious goal to secure US$10 billion in investment commitments this year.
The CEO of ZIDA, Tafadzwa Chinamo, discussed the target during a familiarization tour of ZIDA facilities by the Parliamentary Portfolio Committee on Budget, Finance, and Investment Promotion.
"In 2023, we had US$9.6 billion in committed investments and I pointed out in the briefing that we had with the parliamentarians that it might not seem ambitious that we target US$10 billion in 2024 because there was one outlier project, a very big project of US$3.5 billion. So, if you factor that out, I think it is still quite a stretch. But I think we are on track. We have just closed our half-year and I think we are just below halfway as far as that is concerned. But with what we are working on right now in terms of pipelines, I think we will hit that US$10 billion by the end of it," Chinamo explained.
Despite this optimism, Chinamo expressed concerns over the recent downturn in commodity prices which began earlier this year.
"We have seen since the beginning of the year when commodity prices plummeted. We are still seeing investment into mining but not at the sort of pace that we want,” he noted.
The agency has been proactive in issuing new licenses to spur investment.
In the first quarter of 2024, ZIDA registered 143 new licenses worth US$622.18 million, a slight decrease from the 116 new licenses valued at US$761 million recorded in the first quarter of 2023.
Chinamo highlighted that the manufacturing sector saw the most activity in terms of licensing, with 41 licenses issued amounting to US$47.41 million. In terms of projected investment value by sector, the services sector led with 25%, followed closely by the construction sector at 23%, and the mining sector at 18%.
This strategy by ZIDA underscores its role in navigating economic challenges while striving to reach its investment target, aiming to bolster Zimbabwe’s economic landscape through diverse and robust investment inflows.
