The Zimbabwe Investment and Development Agency (ZIDA) has reported robust investment activity in the first quarter of 2025, with particular emphasis on the mining and energy sectors, both of which are vital to Zimbabwe’s economic growth.
By Ryan Chigoche
In total, 88 mining investment licenses were issued, amounting to $906.8 million, reflecting sustained investor confidence in the sector’s potential. This continued interest highlights mining’s critical role in driving Zimbabwe’s economic progress.
While mining remains the leader in investment, the energy sector has increasingly come into focus, with projected investments reaching $2.7 billion. This growing emphasis on energy underscores the interconnectedness between Zimbabwe’s mining and energy sectors. Reliable and affordable energy is essential for efficient mining operations, and addressing power shortages is crucial for unlocking the full potential of the mining industry. A stable energy supply will not only support existing mining operations but also attract additional investments into the sector.
To address energy challenges, ZIDA has been actively promoting renewable energy initiatives. In February 2025, the agency facilitated a key meeting with stakeholders, including the World Bank Energy Group and the International Finance Corporation (IFC), to explore opportunities in renewable energy. The meeting was an important step in strengthening Zimbabwe’s energy infrastructure, which is vital for the continued growth of the mining sector.
Investment composition for Q1 2025 further illustrates the strong focus on mining. Of the actual inflows, 60% were directed toward imported capital equipment, much of it aimed at enhancing mining and manufacturing capabilities. This highlights the sector’s ongoing modernisation and the significant capital being injected to boost productivity.
ZIDA’s efforts to foster investment in priority sectors such as mining, agriculture, and renewable energy have been strengthened through research-led initiatives and strategic forums designed to provide regulatory clarity and support sustainable projects. The agency’s commitment to improving the investment climate is reflected in its efforts to streamline processes and make Zimbabwe a more attractive destination for international investors.
A significant milestone in these efforts was the launch of ZIDA’s fully online investment license issuance system at the end of March 2025. This digital transformation allows for an end-to-end online process for license applications, processing, and issuance. As a result, 207 new investment licenses were issued in Q1 2025, marking a 44.8% increase compared to the same period in 2024. The streamlined system is expected to improve business operations in Zimbabwe by reducing processing times and enhancing regulatory efficiency.
However, while the volume of license renewals increased, ZIDA observed a slight decline in the proportion of on-time renewals. To address this, the agency has introduced automated renewal notifications and reinforced follow-up measures to encourage greater compliance and timely renewals.
Furthermore, ZIDA has continued to expand its research activities, culminating in the development of a Priority Sector Research Paper and two Policy & Investment Research studies. These studies are aimed at improving regulatory efficiency and facilitating investor engagement, aligning with ZIDA’s 2025 strategy to create a more conducive environment for investment. These efforts are critical in supporting the continued growth of Zimbabwe’s mining sector and ensuring that it remains competitive on the global stage.
