Mining attracts 76% of projected investments

Audrey Galawu

The mining sector has continued to draw the most investment, both in terms of number and projected investment value.

In its Q4 2023 report, the Zimbabwe Investment and Development Agency reported that 76% of the projected investment value for all licences were issued in the mining sector.

In the period in question, 148 new licences were issued, with 61 issued in the mining sector, although the number of licenses issued is lower than the 86 licenses issued in the previous quarter.

The manufacturing sector followed with 35 new licenses compared to 46 issued in the previous quarter of the safe year. The services sector had more new licences issued than in the previous quarter with 33 and 26 respectively issued.

On a positive note, in the fourth quarter Zida recorded US$4. 425 million in total Projected Investment Value higher compared to the US$3.410 million in the third quarter of the same year.

In the report, the Agency highlighted that the two largest investments in mining for the period being the Ajako United (Pvt) Ltd with a project investment value of US$6.94 billion for mining, processing and trading of gold and other minerals including lithium, manganese and copper from its base in Harare and Innermost Resources Zimbabwe (Pvt) Ltd, US$1.4 billion towards mining and processing of gold in Penhalonga, Turk Mine and Kwekwe.

The projects are expected to eventually contribute to increasing the country’s gold production from the current 200 tons to 300 tons per year by 2025.

The Agency revealed that in Q4 of 2023, the Agency received a proposal with a projected investment value of US$6.940bn, for minerals trading and mining development, which is being reviewed.

Although the Agency recorded lower numbers of issued licenses, Zida chief executive officer, Tafadzwa Chinamo said the Mining Matchmaking platform has made significant impact, which led to the launch of the Tourism Match-Making platform which is designed to bring together tourism promoters and investors seamlessly and efficiently.

“On investor activity, there was a drop in the number of licenses the Agency issued in the 4th quarter compared to the 3rd quarter. Despite this decline projected investment value grew by 232.85% quarter on quarter with 76% of this amount attributable to the mining sector.

“During the quarter, we recorded significant progress through increased enquiries and follow through on our Mining Matchmaking Platform, which gave us impetus to launch the second phase of our matchmaking platform initiative. This saw us going live with the Tourism Matchmaking Platform that we launched at the Sanganai/Hlanganani Tourism Expo. This digital platform will bring together local and international tourism promoters and investors seeking opportunities in the sector.

“The key highlight of this quarter was the promulgation of the Special Economic Zones and General Investments Regulations on the 14th of November 2024. The Special Economic Zones Regulations, S.I. 226 of 2023 provides for the application procedure for Special Economic Zones and the General Investments Regulations, S.I. 227 of 2023 provides for the licensing procedure for general investment licenses. Many thanks to the Attorney General’s Office and the Ministry of Finance, Economic Development and Investment Promotion for facilitation of the processes,” he said.

The Agency opened new offices in the Southern Region supporting investment in Masvingo, Midlands, Matabeleland North, Matabeleland South, and Bulawayo provinces.

“Looking ahead, the Agency remains committed to driving investments and fostering growth. Embracing innovation and technology will be central to our success in the future. We recognise the importance of sustainable developments through responsible investments, hence a renewed emphasis to attract socially responsible investors in line with regional and global trends,” Chinamo added.