BUSINESS investment in Zimbabwe rose by 14% to US$127,5 million between January and September 2025, according to a new survey.
The increase came alongside a modest rise in the proportion of companies making investments.
The Confederation of Zimbabwe Industries (CZI) 2025 Third Quarter Business Insights report, which surveyed 514 companies, found that investment activity was recorded across all economic sectors.
Business performance and outlook over the nine-month period remained broadly positive, underpinned by a relatively stable macroeconomic environment.
However, the CZI warned that this stability continues to be fragile and vulnerable to several sources of negative sentiment, including the government’s unresolved domestic debt position.
“The survey results show that the proportion of firms that invested between January and September 2025 increased slightly by 0,6 percentage points from 37,4% in 2024 to 38% in 2025,” the CZI stated.
“However, the total value of investments grew more substantially from US$112 million in 2024 to US$127,5 million in 2025, representing a 14% growth.
“This suggests that although the number of investing firms rose only marginally, those that did invest committed larger amounts, reflecting greater investment intensity.”
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The report noted that fewer than half of all firms undertook new investment initiatives, with investment levels varying sharply by sector.
“This indicates that every sector in the economy identified at least some opportunities to invest and expand their operations,” the CZI said.
“The largest proportion of firms who undertook some investment activities was recorded in the agriculture horticulture sector, while the financial and ICT services sector and the wholesale and retail sector had the lowest proportions of firms investing between January and September 2025.”
The survey identified major obstacles to securing investment from traditional sources, citing liquidity constraints, public debt, corruption and a high-risk operating environment.
Investment activity also differed significantly by firm age and size. “Long-established firms (above 100 years) were the most active investors, with 70% committing additional resources towards further expansion,” the CZI reported.
“On the other hand, a few firms that are 20 years and below undertook additional investments.
“This suggests that older firms must be treated as a potential pool for new investment, and policy measures should recognise and support their continued growth.
“It also reflects that new firms usually invest heavily during their start-up phase, leaving less need or capacity for substantial additional investment in the early years of operation.”
A disparity was also evident by firm size, with investment rates lowest among small firms compared to medium and large enterprises.
“The higher investment rate among large firms likely reflects their stronger capacity to mobilise long-term capital, access financing, and attract new investment opportunities,” the CZI noted.
On foreign currency sourcing, the report highlighted that domestic sales remain the primary source for firms operating within Zimbabwe’s multi-currency regime.
“The survey shows that 84,2% of respondents relied on domestic sales to meet their foreign currency needs, an increase from 79% during the same period in 2024,” CZI said.
“This is driven by the firms’ strong appetite for US dollars supported by hysteresis effects and the need to meet both domestic and foreign transactions.
“In a multi-currency regime, the US dollar remains the preferred currency used in most transactions.
“It is also difficult and expensive to source foreign currency from other alternatives.
“The banking system has only managed to supply a limited number of firms with foreign currency as only 9% of respondents indicated that they obtained foreign currency from banks and the interbank market,” it added.
This figure represented a decline from 14% in 2024.
“Export proceeds accounted for just 2,1% in the survey period of 2025, which is the same as that of 2024. This reflects the shrinking export base for most firms,” the CZI concluded.
“This is an unhealthy situation since the only sustainable way of generating foreign currency is through export growth.”
