Zim attracts US$154.5 million in investments: ZIDA

Abel Karowangoro

Zimbabwe, a landlocked country in Southern Africa, has witnessed a remarkable surge in foreign investments during the first quarter of this year, according to Zimbabwe Investment and Development Agency (ZIDA).

ZIDA released , that Zimbabwe has successfully attracted a substantial amount of US$154.5 million in investments.

The influx of foreign investments signifies a growing confidence in Zimbabwe’s business climate and economic prospects, highlighting the efforts made by the government to promote investment and stimulate economic growth.

This surge covered both local and foreign investments, with China, India, UK and the US being among the top five investment source markets.

“For first quarter of 2023, the total actual investment recorded was US$154.5 million which is comprised of capital equipment from abroad of US$64.45 million: equity US$26.86 million: loans US$2.41 million and local assets of US$60.77 million respectively, which includes local funds and raw materials,” ZIDA said.

According to ZIDA latest reports, China has emerged as the dominant investor in Zimbabwe, with a significant portion of its capital directed towards the mining sector, specifically the emerging lithium sub-sector.

“In Q1 2023, 36 percent of all licences were issued to lithium investors (prospecting, mining and processing). The strong trend began in 2022 and is expected to continue for the rest of 2023 and beyond. With the government’s thrust to encourage more mineral beneficiation, we expect manufacturing, already drawing significant investment, to also continue to be of interest to investors,” it said.

ZIDA is currently processing a number of applications from investors eager to participate in renewable energy initiatives.

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