Staff Reporter
Zimbabwe’s energy sector has taken the lead as the country’s top investment destination for the first quarter of 2025, thanks largely to a game-changing US$2 billion thermal power project underway in Kalungwizi, Binga.
In an interview with the media yesterday, Zimbabwe Investment and Development Agency (ZIDA) Chief Executive Officer Mr Tafadzwa Chinamo hailed the country’s strong investment performance in the first quarter of 2025, with the energy sector emerging as the dominant magnet for capital inflows.
“We have seen a significant uptick in investment activity this quarter, especially in energy. A total of 207 new investment licences were issued in Q1 — a 44.8 percent increase from the same period in 2024,” said Chinamo.
He added, “While licence renewals increased in volume, we noted a slight dip in on-time submissions, from 16.7 percent to 14.6 per percent. In response, we have introduced automated renewal notifications and intensified follow-ups to ensure better compliance.”
According to ZIDA’s latest quarterly report, Zimbabwe recorded a projected investment value of US$4.7 billion between January and March 2025, with the energy sector alone accounting for a staggering US$2.72 billion — 57.39 percent of the total.
This boom is largely driven by a US$2 billion thermal power project in Kalungwizi, Binga, being spearheaded by Yuanlin Energy Investments (Pvt) Ltd.
The MW coal-fired power station, part of a broader US$2.71 billion energy push, has placed the energy sector firmly at the top of national investment rankings.
ZIDA reported that Matabeleland North Province, home to the project, attracted the highest provincial investment value of US$2.61 billion, representing 54.95 percent of all projected investments.
“Matabeleland North Province led all provinces, driven by one project which plans to establish a 600 MW coal-powered thermal power plant in Binga,” the report stated.
The province’s rich coal reserves and strategic location have positioned it as a growing hub for energy and extractive projects.
The Kalungwizi plant is expected to play a critical role in boosting Zimbabwe’s energy supply, especially for mining and manufacturing industries — key sectors in the country’s economic recovery agenda.
Other provinces also recorded notable investment figures: Mashonaland West secured US$928 million, Masvingo US$512 million, Midlands US$262 million, and Harare US$207 million. The lowest was Manicaland, which registered just US$5 million.
Mining and manufacturing followed energy in attracting capital, bringing in US$906.8 million and US$877 million, respectively.
ZIDA also revealed that four high-impact projects worth a combined US$1.2 billion were added to its pipeline.
These include the US$1.1 billion nitrogenous fertiliser plant by Verify Engineering in Mkwasine, a US$63 million residential development in Waterfalls, and a US$2.4 million National Railways of Zimbabwe sleeper plant in Bulawayo.
Chinamo said 60 percent of actual inflows comprised imported capital equipment, mainly for mining and manufacturing, while 11 percent came from foreign exchange equity.
He concluded, “Investor confidence remains high. We continue to support sustainable investments, project development, and clear regulatory pathways — especially in mining, agriculture, and renewable energy.”
