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Direct domestic investment rockets 2. 406 percent

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Zimbabwe’s domestic direct investments skyrocketed by 2.406 percent to USD 102.38 million in the first quarter of 2026, while total projected investment value jumped 62 percent compared to the previous quarter, signalling a decisive shift toward larger, more capital-intensive projects under the Zimbabwe Investment and Development Agency’s new facilitation drive.

“Domestic Direct Investments increased significantly, with contributions rising by 2 406 (from USD 4.08 million to USD 102.38 million) and there was a notable 62 percent increase in projected investment value compared to the previous quarter, driven by fewer but more capital-intensive projects,” said ZIDA Chief Executive Officer Mr Tafadzwa Chinamo, presenting the agency’s Quarter One Report.

“This reflects sustained investor confidence alongside increased use of leveraged financing.”

The capital structure of new investments saw capital equipment imports accounting for 46 percent of total investment, followed by foreign currency cash injections at 25 percent and foreign loans at 22 percent.

However, the agency recorded a sharp decline in overall investment licensing activity.

The number of new licences issued fell by 32.2 percent year-on-year, from 214 to 146, while total projected investment value decreased by 59.6 percent compared to the first quarter of 2025.

“As we reflect on the first quarter of 2026, I am pleased to report that ZIDA has made significant and measurable progress in strengthening the investment environment, despite a challenging global economic and geopolitical landscape.

“This progress has been driven by key policy developments, enhanced investor engagement and improvements in investment facilitation. The period also reflects a shift towards higher-value investments and more structured investment activity, while highlighting the need to strengthen conversion and execution going forward,” he said.

A major milestone during the period under review was Cabinet’s approval of the Public-Private Partnership Guideline, which provides a clear and standardised framework for the preparation, appraisal, and implementation of PPP projects.

“This is a significant development for Zimbabwe’s investment landscape, as it enhances transparency, improves coordination across Government, and strengthens investor confidence through clearer processes and risk allocation mechanisms,” Mr Chinamo said.

The guideline is expected to accelerate infrastructure delivery and create a more predictable environment for private sector participation.

The Agency continued advancing ease-of-doing-business reforms.

Significant fee reductions were enacted under the ZIDA General Investments (S.I. 17 of 2026) and Special Economic Zones (S.I. 18 of 2026) Regulations.

“This downward review of licensing fees is a deliberate intervention to reduce the cost of entry and enhance Zimbabwe’s competitiveness, reaffirming the country’s commitment to being a cost-competitive investment destination and signalling that Zimbabwe is open for business,” Mr Chinamo added.

In collaboration with the Ministry of Finance, Economic Development and Investment Promotion, ZIDA launched the Business and Knowledge Process Outsourcing Framework.

Leveraging a youthful, English-speaking workforce with a 93.7 percent literacy rate, the premises-based model aims to position Zimbabwe as a premier outsourcing hub connecting European and Asian time zones, supported by targeted fiscal incentives.

The mixed performance, Mr Chinamo noted, indicates the need to boost conversion rates.

The agency continues to focus on higher-value investments while addressing the decline in overall licence issuance through ongoing policy reforms and investor facilitation improvements.

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Current Affairs

EU and Zimbabwe Strengthen Environmental Cooperation

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By Everisto Zhuwao

The Minister of Environment, Climate and Wildlife, Honourable Evelyn Ndlovu, met with the European Union Ambassador, Katrin Hagemann, in Harare on Monday to strengthen strategic cooperation on environmental protection and climate change.

The meeting, which included Permanent Secretary Mr Simon Masanga, focused on scaling up existing projects to benefit local communities and the economy.

“This partnership reflects a shared vision for a resilient Zimbabwe. The European Union currently supports several major initiatives in Zimbabwe through its Global Gateway Strategy and the NaturAfrica Programme,” Minister Ndlovu said.

A key component of this partnership is a €26 million investment aimed at protecting biodiversity and building resilience through the Zimbabwe Resilience Building Fund. The funding helps rural communities adapt to changing weather patterns while preserving the country’s natural resources.

Regional conservation also remains a priority. The delegation highlighted a €2.8 million project dedicated to the Chimanimani Transfrontier Conservation Area, which Zimbabwe shares with Mozambique. The initiative seeks to protect wildlife and forests across borders while creating opportunities for sustainable tourism and research.

Beyond conservation, the dialogue also focused on the transition to clean energy and modern farming methods. The EU is supporting climate-smart agriculture to improve food security, while also expanding renewable energy projects in remote communities.

“Modernising energy and farming is a matter of national security,” Ndlovu explained.

Minister Ndlovu and Ambassador Hagemann emphasised that these programmes follow a community-centred approach. By involving local people in the stewardship of their land, the cooperation ensures that Zimbabweans directly manage and benefit from their environment.

“Nature is best protected by the people who live alongside it,” the Minister concluded.

The ongoing partnership aims to create a balance in which both nature and communities thrive through green governance and sustainable development.

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Three Health Workers Quarantined Over Suspected Hantavirus Contact

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The Government has confirmed that Zimbabwe has not detected any cases of Hantavirus, while assuring citizens that health authorities are closely monitoring the situation and urging the public not to panic.

Addressing journalists in Harare on Monday, Health and Child Care Minister Douglas Mombeshora revealed that three healthcare workers who had interacted with suspected Hantavirus patients arrived in the country earlier in the day.

Mombeshora said the trio had immediately been placed under quarantine as a precautionary step in accordance with established public health procedures.

“Three health workers who had been in contact with suspected hantavirus cases arrived in the country this evening,” said Mombeshora.

He added that the quarantine measure was meant to safeguard public health while authorities continue carrying out assessments and monitoring.

“Disease surveillance systems across the country remain on high alert despite the fact that Zimbabwe has not recorded any confirmed Hantavirus infections,” he added.

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Government Targets Traffic Relief As New Harare Interchange Nears Completion

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Minister of Transport and Infrastructural Development Hon  Felix Mhona today toured the ongoing construction works of the new Cloverleaf Interchange at the intersection of Harare Drive and Joshua Mqabuko Nkomo Road, formerly Airport Road, as Government continues implementing major infrastructure projects aimed at modernising the country’s road network.

The transformative project forms part of Government’s ongoing efforts “to decongest one of Harare’s busiest transport corridors, improve travel times to R.G. Mugabe International Airport, and enhance road safety for all road users.”

Addressing journalists during the tour, Hon. Adv. Mhona described the project as “a long-awaited development milestone,” while applauding Emmerson Mnangagwa for championing infrastructure modernisation and development across the country.

The Minister also reaffirmed the Ministry’s commitment to “accountability and delivering quality infrastructure that directly benefits citizens.”

Upon completion, the interchange project is expected to pave the way for the development of “10 additional interchanges from Glenara and associated routes,” a move expected to significantly improve traffic flow within Harare.

The tour was attended by Permanent Secretary Engineer Joy Pedzisai Makumbe, heads of parastatals and other senior Government officials.

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