Mining, energy and manufacturing dominated new licences issued by the investment promotion agency Zimbabwe Investment Development Agency (ZIDA) in the last quarter.
The three sectors, alongside agriculture, were also top of the list of investor enquiries in the third quarter, ZIDA reports in its latest report. The agency processed licences for projects that could have a combined value of US$1.1 billion.
“Of the 168 new licences issued with a projected value of US$1,171.42 billion in the third quarter of 2024, the mining sector had the highest projected investment value which accounted for 50% of the aggregate investment value, followed by the energy sector with 22%,” ZIDA reports.
Five new energy projects, worth US$253 million, were licenced. ZIDA licenced 74 new mining projects, which together would have a value of US$579 million. Manufacturing had 33 new licences, all worth US$183 million. Other key sectors were construction and tourism.
ZIDA also tracks the sectors that investors asked about the most. In the quarter, there were 28 new enquiries for mining, 14 for manufacturing, 13 for agriculture and 10 for mining.
The agency also reports on how many investment projects have actually taken off.
Says the report: “Out of the 266 projects newly licensed in 2022, 72 were identified as operational by the end of September 2024, based on the license renewal applications processed. This shows that 27% of the projects licensed in 2022, were operational in 2024. The total actual investment reported upon the renewal of these licenses amounted to US$137.29 million, primarily attributed to capital equipment imported into the country by foreign shareholders.”
To attract investments, Zimbabwe is licensing special economic zones, which come with special tax breaks. Among these is the Xintai Resources Special Economic Zone in Beitbridge, where a 50MW thermal generator and a coking plant have been built, all part of a project that will also include a ferrochrome smelter. – (NewZWire)
