Manufacturing sector accounts for 41% of investm...

Manufacturing sector accounts for 41% of investment value for Q2

Audrey Galawu

Assistant Editor

The Zimbabwe Investment and Development Agency has revealed that of the hundred and fifty-four new licences issued with a projected value of US$1.809 billion in the second quarter of 2024, the manufacturing sector had the highest projected investment value.

The manufacturing sector accounted for 41% of the aggregate investment value, with a projected investment value of US$745.08 million closely followed by the energy sector with 35% and the mining sector which accounted for 21%.

Across all sectors, the Agency recorded a 68% increase in the projected investment value during the period under review compared to the same period in 2023.

The number of licences issued in the first quarter of 2024 increased by 8% compared to the second quarter of 2024 and a 10% decrease in the licences issued in the same quarter of 2023.

ZIDA chief executive officer, Tafadzwa Chinamo said the high number of licences issued follows the improvement in the licencing process as investors have embraced the online DIY Licensing Portal, which now accounts for 28% of all applications submitted since the launch of the portal.

“As the global economic landscape continues to evolve, ZIDA remains steadfast in its mission to facilitate, attract, protect and establish investments, and drive sustainable development across Zimbabwe .The performance of investments licensed in this quarter, as well as the introduction of new investment opportunities, policies reflects our work to driving economic growth and fostering a conducive environment for both domestic and foreign investments.

“An increase of 8% growth of licences issued in the second quarter was noted in comparison to the first quarter, as investors have embraced the use of the online DIY Licensing Portal. A decline in timely licence renewals was noted in the same period. As at 30 June 2024, 29% of the projects licensed in 2022 are operational. This performance leaves much to be desired and with effect from 1 July 2024, the recently developed M&E framework through our CRM system shall be in use to close this gap and ascertain that the turnaround time falls into a more desirable range as per international best practice,” Chinamo said.

However, the number of licences renewed in the period under review declined by 75% compared to the same period in 2023. For the period under review, the Agency renewed 38 licences compared to 153 licences renewed in the same quarter last year.

The three licences renewed by the due date in the period under review reflect a 16.6% renewal rate of licences and for the period Q1 2023 to Q2 2024 the rate is 14%.

“This shows that not all investors are renewing their licences upon expiry, a situation the Agency has noted with concern. In a bid to encourage all licenced investors with licences overdue/due for renewal, the Agency is currently running a campaign advising or reminding investors of the expectation for them to renew their licences at least 3 months before or after the expiry of their licences. This measure should see the rate of renewal on or before renewal date improve.”

The National Competitiveness Commission in its 2023 report, the commission stated that Zimbabwe’s mining environment needs to be more conducive to attract foreign investment.