Real Estate Leads Investment Boom

Audrey Galawu

Assistant editor

Zimbabwe’s real estate sector emerged as the top investment destination in the fourth quarter of 2024, accounting for a staggering US$2 billion in projected investment value, according to the latest report from the Zimbabwe Investment and Development Agency.

This figure represents 43.6% of the total projected investment for the period, signalling strong investor confidence in the country’s property market.

ZIDA Chief Executive Officer Tafadzwa Chinamo attributed the surge in real estate investments to increasing demand for commercial, industrial, and residential properties, as well as the government’s efforts to enhance urban infrastructure.

“Real estate continues to be a magnet for investors who see Zimbabwe’s urban expansion and infrastructural projects as lucrative opportunities,” Chinamo said.

While real estate led in projected value, the mining sector remained dominant in terms of the number of investment licenses issued. Out of the 200 investment licenses issued in Q4 2024, 91 were in mining, reinforcing Zimbabwe’s position as a resource-driven economy.

The sector attracted US$592.42 million in projected investment, with gold and lithium mining taking centre stage.

“The global demand for critical minerals such as lithium and platinum group metals continue to drive investor interest in Zimbabwe’s mining industry,” Chinamo noted. “Our rich mineral resources remain a key driver of economic growth.”

Meanwhile, the energy sector secured US$1.04 billion in investment commitments, making it the second-largest recipient of projected investments after real estate. This influx is largely tied to the country’s renewable energy drive, with solar and hydro projects taking the lead.

“The energy sector is a critical component of Zimbabwe’s economic development, and the rise in investments shows that investors see potential in our drive towards sustainable energy,” said Chinamo.

“We are working on improving regulatory frameworks to ensure these projects come to fruition.”

Regional analysis from the ZIDA report highlights Harare as the top destination for new investment licenses, securing 84 out of 200 licenses issued. However, in terms of projected investment value, Mashonaland Central led the way with US$2.1 billion, driven by large-scale mining and infrastructure projects.

“Investor confidence in Mashonaland Central shows the growing appetite for development beyond traditional business hubs,” Chinamo said. “This aligns with the government’s strategy of decentralizing investment opportunities.”

Investor interest remains strong despite a drop in overall investment value from US$11.5 billion in Q4 2023 to US$4.6 billion in Q4 2024. Analysts attribute this to fewer high-value outlier projects in 2024.

However, the increase in the number of licenses issued and renewed suggests a steady inflow of new investors.

The automation of ZIDA’s licensing system, which saw 98.1% of applications processed online, has been a major driver of investor confidence. The government’s push for Public-Private Partnerships has also attracted attention, with landmark projects such as the Harare-Nyamapanda Road upgrade and the Forbes Border Post modernization now approved for implementation.

ZIDA has set its sights on further digitalization and enhancing Zimbabwe’s appeal to foreign investors. The upcoming Single Window for Investor Entry and Establishment, designed to provide online access to government services for investors, is expected to simplify business operations in the country.

“With continued policy improvements and digital transformation, we anticipate a more investor-friendly climate in 2025,” Chinamo said. “Real estate, mining, and energy will remain strongholds, but we are also focusing on emerging sectors such as technology, manufacturing, and agro-processing.”