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Investment Opportunities in Zimbabwe

Zimbabwe is a country endowed with investment opportunities for both domestic and international investors. Zimbabwe as an investment destination should always be viewed with growth into the region. The country is placed strategically in the southern African region at an arm’s length to South Africa, Botswana, Mozambique and Zambia. When considering a possible investment in Zimbabwe, corporate structuring of an investment is key, with a focus on mitigation and allocation of risk. In this regard, we have noticed that many investors coming in to Zimbabwe tend to team up with development finance institutions (DFIs) such as the African Development Bank and the French Development Agency in order to minimise their risk exposure.

The sectors which can be viewed as opportunities for investment in Zimbabwe are endless but the key sectors can be narrowed down to infrastructure development, energy, hospitality (particularly in the Victoria Falls), water reticulation, telecoms and fintech, agriculture and agro-processing.

Energy is an especially critical sector, for not only Zimbabwe but for the region as well, with the entire continent facing severe energy deficiencies. Zimbabwe has established a legislative framework for independent power producers of renewable energy and is actively encouraging and supporting them in this sector.

Agriculture is the most integral sector of the Zimbabwean economy, with agriculture being identified (based on studies by the Ministry of Macro-Economic Planning and Investment Promotion) as contributing to the livelihood of 70% of the country’s population, 25% of formal employment, 60% of agro-industry raw materials, 16% of export earnings and 15% of the GDP. Currently, the agricultural demand far exceeds the rate at which the country is producing, which manifests investment in this sector as extremely pertinent.

Zimbabwe presents endless opportunities for investment, particularly when the investment is structured with a view to expansion into the region and the managing of risk allocation. As a commercial law firm in Zimbabwe, we remain hopeful and positive about the fundamental growth potential of the country.

Author: Reena Thaker- Desai