Zimbabwe’s investment landscape maintained strong momentum in the second quarter of 2025, buoyed by significant inflows into energy and mining projects, a surge in licence renewals, and the operationalisation of a key investor protection mechanism. The Zimbabwe Investment and Development Agency (ZIDA) reported issuing 190 new investment licences during the quarter, translating to a projected investment value of US$2.47 billion—a 36.3% increase compared to the same period last year.
By Ryan Chigoche
The energy sector emerged as the clear leader in terms of projected investment value, accounting for US$1.8 billion (74%) of total commitments. This growth was driven largely by renewable energy and power infrastructure projects, including a major natural gas and coal project in Gwayi, Lupane District, Matabeleland South Province. The single project alone contributed US$1.81 billion to the province’s investment projections, cementing its position as the top recipient of capital in Q2.
The mining sector, while second in terms of projected investment value at US$369.23 million (15.2%), recorded the highest number of new licences with 91 issued in the period. Although this represented a slight 8.2% decline compared to Q1 2025, it marked a 23.4% increase compared to the same quarter in 2024.
This sustained investor interest reflects the strong global appetite for Zimbabwe’s vast mineral resource potential, even as capital equipment from abroad continues to be a primary form of investment in the sector.
The symbiotic relationship between energy and mining was particularly evident in Q2 2025. Mining operations depend heavily on a reliable power supply for exploration, extraction, and processing, while energy projects benefit from demand driven by mining activity. This synergy not only enhances project viability but also creates a multiplier effect across the economy.
For instance, the Gwayi natural gas and coal project is expected to power both industrial and mining operations, lowering operational costs and supporting value addition in mineral beneficiation. This integrated approach highlights how energy investments are catalysing growth in mining and vice versa, ultimately driving Zimbabwe’s economic transformation.
Meanwhile, highlighting the strengthening of investor confidence, foreign currency equity injections accounted for 85.7% (US$2.12 billion) of total proposed investment in the quarter, marking a shift from Q1 2025 when capital equipment imports dominated.
As a result, actual investment inflows for monitored projects licensed between January 2022 and June 2025 stood at US$1.03 billion, representing 25% of total projected investment. This was a 13% increase from US$0.91 billion in Q1, underscoring improved capital absorption rates.
Licence renewals surged by 137% compared to Q1 2025, with 107 renewals processed and actualised investments valued at US$221.68 million.
The improved compliance has been attributed to ZIDA’s enhanced monitoring framework, which includes proactive follow-ups through email reminders and direct calls. The percentage of licences renewed within stipulated timelines improved to 24%, up from 15% in Q1 2025.
According to the agency in its report, a significant milestone for the quarter was the operationalisation of the Investor Grievance Response Mechanism (IGRM), which safeguards investor rights by addressing grievances stemming from government actions or policy shifts. This structured platform builds on reforms introduced under the ZIDA Act [Chapter 14:38], ensuring timely dispute resolution and minimising disruptions.
While energy and mining dominated projected investment, the manufacturing sector accounted for the largest share (62%) of actual investment inflows, followed by agriculture (20%), with services and mining each contributing 8%. This diverse performance demonstrates the breadth of investor interest across Zimbabwe’s economy.
The Q2 2025 results paint an encouraging picture of Zimbabwe’s evolving investment climate, characterised by regulatory reforms, strong investor confidence, and growing synergies between key sectors such as mining and energy.
As the country continues to build a reliable energy base, mining operations are expected to benefit from improved efficiency and cost structures, further attracting large-scale capital projects.
