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ZIDA Defies Economic Odds, Ends Quarter on Positive Note

By Shingirai Vambe.

the Zimbabwe Investment and Development Agency (ZIDA) has released its Quarter 4 (Q4) report, revealing a positive trajectory despite the current economic shockwaves. The report’s findings have sent shockwaves of optimism throughout the country, as many had anticipated a dismal performance due to the economic challenges Zimbabwe has been facing.

The Q4 report is a testament to the resilience and determination of Zimbabwe’s investment community. Despite the economic headwinds, ZIDA has managed to facilitate investments, promote economic growth, and create employment opportunities. The agency’s efforts have been instrumental in shaping Zimbabwe’s investment landscape and fostering a conducive business environment.

Zimbabwe Investment and development Agency Chief Executive Officer, Tafadzwa Chinamo

ZIDA CEO, Tafadzwa Chinamo said, “As we conclude 2024, I am honored to share the Agency’s 4th Quarter report. We are pleased to report that the year ended on a positive note,  and in total, we recorded investments in 12 sectors demonstrating the diversity of the Zimbabwean economy an attribute we intend to showcase in the future.” Said Chinhamo.

ZIDA has a record of more than 2000 investors, both local and international, 50 000 planned jobs and USD $18 billion, planned capital investment.

“Interest from investors to invest in the country remains strong with 200 investment licenses issued in the fourth quarter, higher than the 149 issued in the same period in 2023. In terms of the amount’s investors committed to invest, Q4 2023 had a higher value of US$11 502,92mn compared to US$4 586,99mn in the fourth quarter of 2024. The decrease is attributable to several high-value projects in 2023. On the bright side we recorded an increase in the number of licenses renewed during the quarter compared to the same period last year,” added Chinamo.

According to statistics, reports, the mining sector has attracted the bigger part of investment in the country, while real estate is coming second with 43.60 percent of total projected investments for the quarter, according to ZIDA. following various stride and initiatives by government to transcend from current energy sources, to renewable sources, the energy sector reported and 7 percent growth trajectory with a total of 22.76 percent projected investment value for the quarter.

According to the report, ZIDA has made significant strides in promoting investment in key sectors such as agriculture, mining, and manufacturing. The agency has also been actively engaged in facilitating joint ventures, public-private partnerships, and foreign direct investment. These efforts have resulted in increased investment inflows, improved economic activity, and enhanced competitiveness.

Zncc president Chris Mugaga

One of the key highlights of the report is the significant increase in investment approvals. ZIDA has approved a substantial number of investment projects, worth millions of dollars, across various sectors. These projects are expected to create thousands of jobs, stimulate economic growth, and improve the country’s balance of payments.

The report also notes that ZIDA has been working closely with the government to improve the business environment and address investment barriers. The agency has been advocating for policy reforms, regulatory improvements, and infrastructure development to support investment growth. These efforts have started to bear fruit, with Zimbabwe’s investment climate showing signs of improvement.

The Q4 report’s positive trajectory is a welcome respite for Zimbabwe’s economy, which has been facing significant challenges. The country has been grappling with high inflation, currency fluctuations, and a severe drought, which have impacted economic activity and investment sentiment. However, the report’s findings suggest that ZIDA’s efforts are starting to yield positive results, despite these challenges.

However, there has been an out-cry in the manner at which Government has been awarding investment opportunities to foreign nationals and few political elites pin the country. the recent report by the Zimbabwe National Chamber of Commerce exposed corrupt tendencies and gaps existing in various sectors of the economy.

A recent survey conducted by the Zimbabwe National Chamber of Commerce (ZNCC) has shed light on the alarming scale of corruption in Zimbabwe, estimating that it costs the Treasury a staggering US$1.5 billion annually. The survey, which polled 1,600 members and stakeholders, including government entities, revealed widespread corruption ranging from tax evasion and bribery during licensing processes to sleaze at border posts.

The ZNCC’s 56-page report, titled 2024 Annual State of Industry and Commerce Survey, provides rare insights into the systemic corruption and mismanagement that are undermining Zimbabwe’s economy. Nearly 1,800 executives from major corporations participated in the survey, with a whopping 81% urging authorities to prioritize anti-corruption measures to restore investor confidence.

Christopher Mugaga, CEO of ZNCC, cautioned that the estimated US$1.5 billion loss could be an understatement, highlighting the need for urgent action to address corruption. This report’s findings are a stark reminder of the devastating impact of corruption on Zimbabwe’s economy and the need for swift and decisive action to restore transparency and accountability.

It’s worth noting that Zimbabwe has been struggling with corruption for decades, with the country ranking 149th out of 180 countries in Transparency International’s 2023 Corruption Perceptions Index. The report’s findings are a call to action for the government and stakeholders to work together to address corruption and promote economic growth.