Time up for errant foreign investors
STAFF WRITER
President Emmerson Mnangagwa has warned foreign investors operating in Zimbabwe to strictly adhere to the country’s Constitution and laws, amid rising concerns over exploitation of national resources and local communities.
Delivering his State of the Nation Address (SONA) at Parliament in Mt Hampden on Tuesday, Mnangagwa stressed that investment in Zimbabwe must respect both legal frameworks and local customs.
“As we welcome investors in our jurisdiction, we expect that they will adhere to the Constitution and laws of our country, while also respecting our people, customs and culture,” he said.
The President’s remarks come amid reports of some foreign investors, allegedly violating local regulations and community rights, sparking public outcry.
Analysts say Mnangagwa’s warning reflects an effort to safeguard local interests while maintaining Zimbabwe’s investment-friendly image.
Despite these tensions, the economy is showing robust growth. Mnangagwa projected GDP growth of 6.6% in 2025, driven by a resurgent agricultural sector, mining expansion, and a strengthening manufacturing base.
“The national economy is projected to grow by 6.6% in 2025, anchored on the recovery in the agricultural sector, with record harvests of tobacco, maize and wheat, among other crops. These are a result of the implementation of the Agriculture, Food Systems and Rural Transformation Strategy. Under the Strategy, the Pfumvudza/Intwasa Programme has empowered over 3 million households with inputs,” he said.
The livestock sector continues to expand, with the national herd now at 5.7 m and milk production rising from 76.7 m litres in 2019 to 115m litres in 2024. Irrigated farmland has increased from 151,000 hectares in 2019 to 221,000 hectares in 2024, placing Zimbabwe on track to reach its target of 496,000 hectares.
Infrastructure and modernisation are supporting growth across key sectors. The Grain Marketing Board is introducing 14 AI-driven silos, adding 750,000 tonnes of storage capacity, while road projects such as the Harare-Chirundu Road, Bulawayo-Victoria Falls Road, and Christmas Pass by-pass are being prioritised.
In mining, investments are rising in gold, lithium, iron, and steel, while manufacturing now contributes 15.3% of GDP, led by steel, cement, dairy, cotton-to-clothing, and pharmaceuticals. Mnangagwa highlighted reforms in licenses, permits, levies, and fees to enhance ease of doing business.
Zimbabwe’s foreign currency position is strengthening, with inflows rising 26.8% to US$10.4 bn as of August 2025, up from US$8.3 bn in the same period last year. Reserves reached US$900m at the end of September, up from US$700 million in June.
“In recognition of this effort, the World Bank recently ranked Zimbabwe first among the top 10 countries in the world that have made significant progress in foreign currency reserve accumulation,” Mnangagwa noted.
Social protection, health, education, ICT, and youth empowerment remain priorities, with programmes such as the Basic Education Assistance Module and input support schemes being expanded to vulnerable groups.
