China a major source of foreign investment for Zimbabwe: official

A Chinese supervisor (L) communicates with an employee (R) through Shingirirai Alufasi's interpretation at the Zimbabwe Zhong Xing Electric Energy company in Hwange, Matebeleland North Province, Zimbabwe, on June 15, 2022. (Photo by Tafara Mugwara/Xinhua)

Zimbabwe is witnessing an increase in investments, with China contributing significantly to foreign investment inflows into the country, a government official said Tuesday.

HARARE, Sept. 11 (Xinhua) -- Zimbabwe is witnessing an increase in investments, with China contributing significantly to foreign investment inflows into the country, a government official said Tuesday.

Responding to a question from Xinhua on the sidelines of the 2024 Zimbabwe Investment and Development Agency (ZIDA) Stakeholder Input Forum held in Harare, the capital of Zimbabwe, Deputy Chief Secretary in the Office of the President and Cabinet William Manungo said China remains a key investment partner of Zimbabwe, notably in the mining and manufacturing sectors.

"The Chinese investments have centered around mining, but over and above investment into mining, the cooperation between Zimbabwe and the People's Republic of China has also seen significant investments in partnership with the government in the transport sector, energy sector among others," he said.

ZIDA's 2023 annual report showed that 369 licenses were issued to Chinese investors with a projected investment value of 3.93 billion U.S. dollars, accounting for about 40 percent of the projected value of the year.

People visit the exhibition stand of Zimbabwean company Comkwik at the Zimbabwe Agricultural Show in Harare, Zimbabwe, on Aug. 30, 2024. (Xinhua/Tafara Mugwara)

Trade between China and Zimbabwe has also recorded an upward trajectory. In 2023, bilateral trade between the two countries reached 3.122 billion dollars, a 29.9 percent increase year on year, according to China Customs statistics.

Commenting on the total investments recorded, Manungo said Zimbabwe in 2023 witnessed a strong recovery of investor interest, with businesses from 46 countries coming into Zimbabwe to invest.

"This represents a rebound of 35 percent over the previous year, 2022," he said.

Investment data also confirmed new investors coming in from South Africa, Botswana, and the United Arab Emirates, Manungo said. "In total, I am told that 615 new investors were licensed during 2023, representing a significant growth of 130 percent when related to 2022."

To enhance the ease of doing business in the country, Manungo said ZIDA completed the activation of its self-service digital licensing system called Do It Yourself (DIY).

"The Zimbabwe Investment and Development Agency is reporting an 8 percent growth in the issuance of licenses during the second quarter of 2024, reflecting growing investor confidence, most notably through the online DIY licensing portal," said Manungo.