Zimbabwe’s real estate sector has emerged as the leading investment destination in the fourth quarter of 2024, with a remarkable US$2 billion in projected investment value, according to the latest report from the Zimbabwe Investment and Development Agency (ZIDA). This figure represents 43.6% of the total projected investments for the period, reflecting growing investor confidence in the country’s property market.
Key Drivers Behind the Surge
ZIDA Chief Executive Officer Tafadzwa Chinamo attributed the surge to increasing demand for commercial, industrial, and residential properties, as well as government initiatives aimed at enhancing urban infrastructure.
“Real estate continues to be a magnet for investors who see Zimbabwe’s urban expansion and infrastructural projects as lucrative opportunities,” Chinamo stated.
The booming property market was complemented by strong performances in other sectors, including mining and energy.
Mining Sector Remains a Powerhouse
While real estate led in terms of projected value, the mining sector dominated in the number of investment licenses issued. Out of the 200 licenses approved in Q4 2024, 91 were for mining projects, attracting US$592.42 million in projected investment.
Gold and lithium mining stood out as key drivers, with global demand for critical minerals maintaining Zimbabwe’s position as a prime destination for resource-based investments.
“The global demand for critical minerals such as lithium and platinum group metals continues to drive investor interest in Zimbabwe’s mining industry,” Chinamo noted.
Energy Sector Shines
The energy sector secured US$1.04 billion in investment commitments, making it the second-largest recipient after real estate. Renewable energy initiatives, particularly solar and hydro projects, played a significant role in attracting investors.
“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,” Chinamo said, adding that efforts to improve regulatory frameworks are underway to ensure project implementation.
Regional Investment Trends
Harare retained its status as the top destination for investment licenses, with 84 out of 200 issued in the capital city. However, Mashonaland Central emerged as the leader in projected investment value, attracting US$2.1 billion, largely driven by large-scale mining and infrastructure projects.
“Investor confidence in Mashonaland Central shows the growing appetite for development beyond traditional business hubs,” Chinamo remarked. This aligns with the government’s decentralization strategy to spread investment opportunities across the country.
Challenges and Opportunities
Despite the impressive performance of key sectors, overall investment value dropped from US$11.5 billion in Q4 2023 to US$4.6 billion in Q4 2024. Analysts have attributed this decline to a reduction in high-value outlier projects. However, the steady rise in the number of licenses issued and renewed indicates consistent investor interest.
Automation of ZIDA’s licensing system has been a key enabler, with 98.1% of applications processed online. Additionally, Public-Private Partnerships (PPPs) have attracted significant attention, with major projects such as the Harare-Nyamapanda Road upgrade and Forbes Border Post modernization now approved for implementation.
Looking Ahead
ZIDA aims to build on the momentum by further digitalizing its processes and enhancing Zimbabwe’s investment climate. The introduction of the Single Window for Investor Entry and Establishment, an online platform to streamline government services for investors, is expected to simplify operations and attract more foreign investment.
“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.”
Zimbabwe’s diversified investment portfolio, coupled with ongoing reforms, positions the country as a compelling destination for both local and international investors. The real estate sector’s dominance in Q4 2024 underscores the growing opportunities within the nation’s rapidly evolving economy.
