Lovemore Kadzura
Post Reporter
MANICALAND has become a firm favourite for both domestic and Foreign Direct Investments (FDIs), with the province attracting investments worth over US$1,5 billion in 2023 to ramp up production in economic sectors it has comparative advantage and grow its Gross Domestic Product (GDP).
According to investment agency – Zimbabwe Investment and Development Agency (ZIDA) – report for 2023 released recently, 21 licences were issued to investors in Manicaland, compared to nine issued in 2022.
The 2022 investments in the province were valued at US$34 million, which leaped to US$1,505 billion in 2023 following huge interest in mining, manufacturing and energy, among other critical economic sectors.
Manicaland is endowed with an assortment of minerals, timber and tea estates, tourism facilities as well as adequate water for agriculture, among other natural resources.
The province is also expected to ramp up production and value addition in the mining and agricultural sectors, while there is need to attract FDI to ensure that the cutting and polishing of diamonds is done in the province.
Manicaland also has a comparative advantage in the tourism sector.
Chisumbanje-based ethanol producer, GreenFuel’s application for Special Economic Zone (SEZ) status was approved for designation under the new SEZ regulatory framework, together with other designated zones like Metallurgical Processing (Beitbridge) and the Goromonzi Agro-Industrial Park. In its 2023 annual report released recently, ZIDA said it has generated provincial-specific data that enabled stakeholders to view levels, areas of comparative advantage and interest in each province.
This gives provinces impetus to drive the national development agenda. According to ZIDA, Manicaland attracted US$1,5 billion worth of investments, while Harare continues to dominate as the top investment destination with 312 investors, while Mashonaland West had the highest value of projected investment at US$2,383 billion.
Masvingo had projected investment value of US$1,8 billion, Matabeleland North US$701,6 million, Mashonaland East US$51 million, Midlands US$402 million, Mashonaland Central US$230 million and Matabeleland South US$15,5 million.
ZIDA chief executive officer Mr Tafadzwa Chinamo said the agency achieved significant progress in attracting both international and local investments.
China is leading in the pack of Foreign Direct Investments (FDIs), while local investors are ranked fourth.
“Leveraging market intelligence, customer insights and targeted sector strategies, ZIDA achieved significant progress in attracting international investments. Our efforts resulted in a demonstrably more diverse investor base, with participation by companies from 46 countries in 2023 – which is a 35 percent increase compared to 2022. As with previous years, most of the investors came from China, primarily drawn to the mining sector. Manufacturing was the second most sought after sector.
“We were further encouraged by the rise in the number of new investors from South Africa, Botswana and the UAE source markets. We are actively marketing the country’s investment opportunities to these countries and we are poised to register strong growth in years to come. Overall, we successfully licensed 615 new investors, compared to 267 in 2022; representing a growth of 130 percent increase. Contrary to popular belief, our mandate emphasises the need to attract, not only Foreign Direct Investments, but Domestic Direct Investment as well. Our renewed focus on the latter continues to bear fruit with investment from Zimbabwean investors ranking fourth as source market.
“In addition to advocating for an improved business environment and ease of operations, the agency is committed to fostering innovation to enhance accessibility and feasibility of investment opportunities for investors. In the third and fourth quarters of the year, we successfully launched new products in the form of mining and tourism matchmaking platforms.
“These online services facilitate connections between investors and project promoters, enabling investors to discover assets that may not be easily accessible conventional scouting methods. These platforms significantly expand our spectrum of investment opportunities beyond our internal research and project development efforts.
“As we work in 2024, the agency is committed to building on the ground established in 2023 by our strategic plan.
“This plan is centered around several key objectives, including identifying and promoting investment opportunities that are of national significance, integrating processes across ministries, departments and agencies to enhance the ease of doing business and advocating for a business friendly environment that fosters growth and success.
“These strategic initiatives will guide our efforts in the coming year ensuring that we continue to facilitate investment, streamline operations and create a conducive ecosystem for business to prosper,” said Mr Chinamo.
