Do you need advice on doing business in Zimbabwe, or help in identifying the best businesses to invest in? Do you need ideas or information about the best investment opportunities in Zimbabwe? Then I advise to you read on.

Zimbabwe possesses a diversified economy and has numerous resources making it attractive for investment. Zimbabwe offers free movement of investment capital and attractive investment incentives. Some of the incentives include: 

 Zero-rated Corporate Income Tax for the first 5years of operation with a corporate tax rate of 15% applying thereafter 

 Special Initial allowance of 50% of cost from year one and 25% in the subsequent two years

 Specialized expatriate staff will be taxed at a flat rate of 15%.

 100% rebate on customs duty for all imported equipment, machinery and raw materials

When you make the right investment decisions, the results can be spectacular and profitable. 

In this article PMRC will give you some highlights of the best investment opportunities in Zimbabwe.

HOW TO INVEST IN A BUSINESS 

According to the information provided by the Zimbabwe Investment and Development Agency (ZIDA), the process of investing in Zimbabwe can be summarized in four processes, company registration, and investment license registration, application for a secondary license and lastly, application for a work permit.

It is encouraged to invest in businesses that you have knowledge on. This mitigates your risk while helping you to engage in business investment opportunities that are worth your time and finances. Investing money into businesses or industries you have prior experience with is a sound strategy to make sure you know what you’re getting into and will even give you the opportunity to offer actionable advice to the company that will help your investment bear fruit. 

To help you start your successful journey, PMRC has compiled a list of the most lucrative businesses opportunities that have a long-term financial value in Zimbabwe as of 2022, considering factors such as industry growth, efficiency, increased turnover, and increase in demand, competitiveness and profitability potential.

Consulting

The high rate of unemployment in Zimbabwe has caused more people to become more aware of the need to start their own private businesses. Entering the market as a new start-up can be tricky, to keep business float, entrepreurs now require consulting services. The business world now relies on data more than ever before, making consulting firms' services in high demand. Management consultancies help organizations and entrepreneurs with high-quality management and research solutions which in turn helps to drive business with informed decisions. 

Gold mining 

Gold is one of the most valuable metals in Zimbabwe and gold mining is still open to investors. Gold is a major foreign currency earner in Zimbabwe. According to Mining Zimbabwe, Zimbabwe’s total output for the first five months of 2022 spiked by 86.3% to 13,171,58kg compared to 7,068,85kg in the corresponding period in 2021 official data show. Fidelity Printers, the country’s sole gold buyer availed that in May 2022 the total gold output by both small scale and large-scale miners were up by 79,5% as compared to May 2021. Over the years, small-scale miners have become the largest contributors of gold, contributing 60% of the gold. The gold mining sector has more capacity to produce better hence it would be profitable to invest in this sector. According to Zimbabwe Investment and Development Agency (ZIDA), foreign investors can own 100% of shares for mining activities in all minerals. Incentive such as ‘Finders Keep it Principle’ will be adopted to encourage exploration and investment. Over 4 000 recorded gold deposits in Zimbabwe and yet more are to be discovered. According to data provided by Gold Rate 24 on September 29, 2022, the gold price in Zimbabwe for 1 ounce of gold was ZWL$599,192.03 and USD1, 655.68. 

Agriculture and Agro-processing

Zimbabwe is an agriculture-based economy with investment opportunities for investment in meat processing, fruit juices, timber processing, horticulture, floriculture, beekeeping, fish farming and rearing rabbits, cattle and goats. Finance remains critical in unlocking agriculture's full potential.  Agriculture is the backbone of Zimbabwe’s economy; Agriculture contributes approximately 17 percent to Zimbabwe’s GDP. It provides employment and income for 60-70 percent of the population, supplies 60 percent of the raw materials required by the industrial sector and contributes 40 percent of the total export earnings. The agribusiness opportunities in Zimbabwe include manufacturing of irrigation equipment, production of pharmaceuticals for livestock

Students' accommodation 

Student accommodation is increasingly seen as a profitable area for property investors. There are various ways to make money from student accommodation from buy-to-let and renting to local students, to investing in purpose-built blocks and special types of REITs (real estate investment trusts). It has been known as one of the stable investment opportunities. There are currently 18 universities in Zimbabwe1 and almost every province has one. The number is steadily growing, removing geographical distance as a significant deterrent to the uptake of tertiary education. Universities are far more accessible to potential students and this accessibility has led to rapid growth in enrolment. At the same time, the Infrastructure Development Bank of Zimbabwe (IDBZ) has estimated that 75% of the current student population in Zimbabwe has no access to on-campus accommodation facilities.

This imbalance between demand and supply provides a highly promising gap in the real estate sector. In the past, students only had a few options: on-campus housing, renting an apartment in a nearby town, or living with family and commuting to their studies. With today's dynamic student population and their specific demands, products have evolved to include the provision of modernized housing on a small scale and, more popularly, the use of multifamily residential property as an off-campus dorm with modern amenities. A room is costing an average of US$100 per month (inclusive Wi-Fi, stove, bed, security,)

Waste recycling

Zimbabwe, like any other country, produces tonnes of waste product, which entrepreneurs can take advantage of, to build and grow a business. The recycling business has become a much profitable venture at present. There are many kinds of wastes and types of recycling business ideas depending on the industrial outputs. These lucrative ideas for recycling include scrap metal recycling, food waste recycling, paper recycling, computer recycling, aluminum can recycling. 

This business has been helping the society in making the environment clean at the same time making money from the waste. According to Zimbabwe’s Ministry of Environment, Water and Climate Change, about 600 tons of plastic are thrown away in the capital Harare every day. This garbage has become a blessing to some Zimbabweans, providing unemployed people with a steady income. At the same time, the waste collectors are a blessing for the city. Plastics do not rot but pose long-term threats to the environment. Recycling solves this problem. Plastic junk has become a source of regular income on an average one can earn about 70 dollars per week from the plastic rubbish they collect. Recycling companies pay up to 10 dollars per kilogramme. (Jefrey Moyo-21/11/1016)

Hospital equipment

Hospitals are littered with many investment opportunities that investors of all experience levels can access. There is a consistent demand for healthcare as Zimbabweans continue to experience a heavy burden of disease dominated by preventable diseases such as HIV infection and AIDS, malaria, tuberculosis and covid-19 hence this leads to fairly predictable cash flow and growth potential. The health sector faces numerous challenges that include poor infrastructure with ill-equipment. Most hospitals lack functional laundry machines and kitchen equipment. The types of hospital equipment that one can invest in include diagnostic, monitoring and treatment –based. Examples of diagnostic equipment include MRIs and CT scans which enable physicians to make diagnosis and plans for treatment for diseases and disorders. Monitoring equipment is needed to constantly measure blood pressure, oxygen levels, and many other vital signs. Lastly, examples of treatment-based supplies include surgical masks, IV lines, needles, and a range of products used to stave off the spread of disease and to facilitate treatment of a patient.