Zim attracts US$2,5bn in SEZ, PPP investments 

Business Reporter

THE Zimbabwe Investment and Development Agency (Zida) reviewed investment projects worth approximately US$2,5 billion under the special economic zones (SEZs) and public-private partnerships (PPPs) during the second quarter of the year, the agency said in its latest report.

In its second-quarter report, Zida said it had approved deals worth billions of dollars, with investments worth about US$1,2 billion having been approved for SEZs, while some are still under review.

Deals of similar value were also reviewed under PPPs, according to Zida, the State agency responsible for promoting investments in the country.

The Government adopted PPPs and SEZs as platforms to attract investment into key economic sectors.

In November last year, the Government introduced new SEZs regulations aimed at stimulating domestic and foreign investment. The regulations, outlined in Statutory Instrument 226 of 2023, replaced the previous framework and offer incentives like tax breaks and regulatory ease to attract businesses.

The regulations seek to revitalise the performance of SEZs through expanded eligibility. Previously, unclear guidelines hindered progress.

Landowners and long-term leaseholders can now apply for SEZ permits, broadening the potential developer pool.

To qualify for SEZ designation, applicants must demonstrate financial capability, provide detailed location information, conduct a comprehensive market analysis and present a schematic master plan.

Environmental impact assessments are mandatory.

SEZs are prioritising export-oriented manufacturing, technology transfer and local employment. A minimum investment of US$50 000 is required, and businesses must demonstrate linkages to the domestic economy.

To ensure compliance, SEZs must meet specific infrastructure standards and adhere to reporting and auditing requirements.

Zida will monitor and inspect SEZ operations. Fees for designation, development and operation are outlined in the regulations.

One of the most high-profile SEZ investments is the agreement between Masuwe and Zimbabwe Cricket. The sporting body will develop a world-class cricket stadium and ancillary facilities on a 10-hectare plot in Victoria Falls, with an estimated investment of US$4 million.

The facility is expected to be ready for the 2026 Cricket World Cup.

In another development, Beitbridge is set to benefit from a proposed investment by a South African company. The investor is eyeing the construction of warehouses, manufacturing plants and energy infrastructure in the zone.

A major boost to the country’s energy sector is also on the horizon, with the approval of a 1 200-megawatt thermal power station by Prestige Massive Limited and Xintai Resources in the border town of Beitbridge.

The project is estimated to cost US$1,2 billion over 10 years.

The Goromonzi Agro-Industrial Company (GAIC) has also attracted considerable interest, with multiple investors expressing keenness to set up operations in the zone. The potential land uptake of about 300 hectares out of the available 1 025 hectares indicates strong investor confidence.

GAIC is targeting to secure funding for the SEZ development by the end of the year.

Among the high-profile projects being considered under the PPPs is the construction of the Thuli-Moswa Dam in Gwanda and a 150-kilometre pipeline to South Africa by the Zimbabwe National Water Authority (Zinwa). The massive infrastructure undertaking is projected to cost US$850 million.

The Ministry of Transport and Infrastructural Development is also in the spotlight with plans to upgrade and toll the Harare-Nyamapanda road and the Nyamapanda Border Post. The project is estimated to require US$263 million in investment.

In a bid to boost the country’s energy sector, the Bulawayo City Council has proposed the development of a 50-megawatt solar power plant worth US$75 million.

Meanwhile, the Mining Promotion Corporation (Private) Limited has secured a joint venture deal worth US$12 million to explore and develop a mine in the Arcturus area.

Speaking at the 7th SADC Industrialisation Week, Ms Eunice Kamwendo of the Economic Commission for Africa emphasised the importance of aligning SEZs with national development plans and creating a conducive environment for investment.

She stressed the need for regional collaboration in developing transboundary SEZs to foster value chains.

“SEZs should align with a country’s comparative and competitive advantage and be supported by a conducive policy and regulatory environment, including the integration of these zones into broader national development plans and policy frameworks,” said Ms Kamwendo.

“Strong political will is necessary to secure bilateral investment commitments to the zones by providing confidence to investors.”

The PPPs, on the other hand, are collaborative arrangements between Government entities and private sector companies to finance, build, operate and maintain public assets or services.

Under the arrangement, a significant portion of the project’s capital comes from private investors that take financial risks.

Governments often provide guarantees or credit enhancements to reduce investor risk and attract financing.

Cabinet approved the policy framework that will play a crucial role in guiding private sector participation in infrastructure development.

“We believe PPPs are a key driver for economic growth and development, and this framework will provide a clear road map for implementing these projects effectively, in accordance with the applicable procedures, as set out in our laws.

“Notably, feasibility studies for significant infrastructure projects such as the Thuli-Moswa Dam and the Harare-Nyamapanda road have been approved, with a combined estimated project cost of over US$1 billion,” Zida said.