Zimbabwe’s energy sector has taken center stage in driving the country’s investment boom, with an unprecedented US$2.72 billion in projected capital flowing into power projects during the first quarter of 2025. 

The Zimbabwe Investment and Development Agency (ZIDA) revealed in its Q1 report that the energy sector alone accounted for more than 57% of all licensed investment value a powerful signal of investor confidence in the country’s energy roadmap.

“This quarter’s performance shows that energy is no longer just a potential growth area it is now the cornerstone of Zimbabwe’s investment strategy,” declared ZIDA CEO Tafadzwa Chinamo. “The commitments we are seeing in this sector reflect investor confidence in Zimbabwe’s long-term energy framework and our ability to facilitate high-value projects.”

Leading the charge is a colossal US$2 billion thermal power project in Binga, Matabeleland North a 600MW coal-fired plant poised to significantly bolster national energy output. Thanks to this single initiative, Matabeleland North became the top investment destination by province, securing over 54% of the national total in projected capital.

But it’s not just fossil fuels attracting attention. Zimbabwe’s clean energy ambitions are gaining traction. In February, ZIDA, in collaboration with the World Bank Energy Group and the International Finance Corporation, hosted a landmark Renewable Energy Roundtable. The event brought together power producers, financiers, and legal experts to fast-track Zimbabwe’s integration into Mission 300, an Africa-wide initiative aiming to connect 300 million people to electricity by 2030.

The roundtable discussions focused on removing regulatory bottlenecks, expediting approvals, and creating clear frameworks for public-private partnerships. If Zimbabwe meets the programme’s conditions, implementation of Mission 300 projects could begin in the second half of 2025.

Beyond energy, the mining and manufacturing sectors also posted strong performances. Mining attracted US$906.8 million in projected investment and was the most active by volume, with 88 new licences issued. Manufacturing followed with US$877.7 million and 56 new licences, showing steady investor trust in Zimbabwe’s industrial capacity.

Agriculture, while smaller in comparative value, still registered US$84.17 million in projected investments, boosted by a renewed spotlight on horticulture and agro-processing. ZIDA is aggressively marketing the sector as a major economic driver, estimating it could generate over US$2.4 billion annually in exports and create more than 580,000 jobs pending an estimated US$795 million in targeted funding.

The first quarter of 2025 also marked a digital milestone for ZIDA. With the full rollout of an online licensing system, the agency reported a 44.8% year-on-year jump in issued investment licenses a total of 207 driven by faster, more transparent processing.

As Zimbabwe stakes its claim as a regional energy hub, the momentum from Q1 suggests the country is entering a new era of infrastructure-led growth, powered by strategic capital and forward-thinking policy shifts.