The U.S. Department of State’s Investment Climate Statements help U.S. companies make informed business decisions by providing up-to-date information on the investment climates of more than 170 countries and economies. They are prepared by our embassies and consulates around the world and analyze each economy’s openness to foreign investment. Topics include:
• Openness to, and Restrictions upon, Foreign Investment,
• Investment and Taxation Treaties,
• Legal Regime,
• Industrial Policies,
• Protection of Property Rights,
• Financial Sector,
• State-owned Enterprises,
• Corruption,
• Labor Policies and Practices,
• Political and Security Environment, and
• U.S. International Development Finance Corporation (DFC) and Other Investment Insurance or Development Finance Programs
Each statement provides a starting point for U.S. firms and offers a point of contact at the relevant U.S. embassy or consulate abroad.
These reports are also a resource for foreign governments to create business environments that ensure fair treatment for the United States and our companies and investors.
To access the full Investment Climate Statement, visit the U.S. Department of State Investment Climate Statements website.
Executive Summary - Zimbabwe
Zimbabwe offers significant economic development potential but presents a challenging business environment. Its abundant wildlife, agricultural opportunities, natural landscapes, skilled labor, and high literacy rate create opportunities for U.S. investors. Key sectors attracting investor interest include:
- mining,
- agriculture (especially tobacco),
- energy, and
- tourism.
Zimbabwe also boasts some of the world’s largest reserves of critical and rare earth minerals.
The Government of Zimbabwe actively seeks foreign direct investment (FDI) to:
- drive economic growth,
- create jobs, and
- enhance international competitiveness.
The Zimbabwe Investment Development Agency (ZIDA), established in 2020, serves as a one-stop shop to assist investors in navigating the regulatory environment. Zimbabwe has encouraged public-private partnerships and aims to improve the investment climate by:
- lowering business costs,
- streamlining processes, and
- restoring the rule of law.
Despite these efforts, implementation remains a challenge.
In 2020, Zimbabwe amended the Indigenization and Economic Empowerment Act, removing the requirement for majority indigenous Zimbabwean business ownership in a bid to bring in new technologies, generate employment, and promote value-added manufacturing. However, the government retains discretion to designate minerals for indigenization in the future and encourages joint ventures in the production of strategic minerals. ZIDA promotes and facilitates both domestic and foreign investment, establishing Special Economic Zones (SEZs) with fiscal and non-fiscal incentives.
The government has made gradual progress in improving the business environment by reducing regulatory costs, but policy inconsistency and weak institutions have continued to frustrate businesses. Corruption remains rife and is a major cost to doing business in the country. The Zimbabwe Anti-Corruption Commission (ZACC) investigates corruption but lacks prosecutorial authority. Zimbabwe has undergone several investment policy reviews, with recommendations for transparency and reform in sectors like diamond mining. The World Bank, IMF, and UNCTAD have conducted assessments, highlighting the need for improved investment conditions. The Zimbabwe Environmental Lawyers Association (ZELA) has also published reports on the extractives sector, emphasizing the importance of legal and regulatory clarity.
Zimbabwe’s regulatory environment lacks transparency, with prevalent corruption and policy inconsistency. The government uses statutory instruments and temporary presidential powers to alter legislation, often surprising businesses and causing disruptions. The judicial system, based on Roman-Dutch law, is theoretically independent, but political interference remains a concern. Foreign investors can invest in most sectors without restrictions, but certain sectors are reserved for local citizens. Zimbabwe encourages competition through the Zimbabwe Competition Act, enforced by the Competition and Tariff Commission.
Zimbabwe has two stock exchanges: the Zimbabwe Stock Exchange (ZSE) in Harare and the Victoria Falls Stock Exchange (VFEX). Foreign investors can participate in both markets, with certain ownership limits. The banking sector, supervised by the Reserve Bank of Zimbabwe (RBZ), faces challenges such as high inflation and foreign exchange constraints. The RBZ introduced the Zimbabwe Gold (ZiG) currency in 2024, but it suffered significant devaluation in the same year.
Zimbabwe’s labor market is characterized by high informal employment and youth unemployment. Zimbabwe encourages the use of local management and technical personnel, with restrictions on employing foreigners. Labor laws make it difficult to adjust employment in response to economic downturns, except in SEZs. The government often clashes with labor unions, and strikes are often met with bans and dismissals.
The U.S. International Development Finance Corporation (DFC) has limited support for Zimbabwe projects, focusing on loan portfolio guarantees for micro and small-to-medium enterprises. Zimbabwe is a member of the World Bank’s Multilateral Investment Guarantee Agency, but support from the Export-Import Bank of the United States is limited due to Zimbabwe’s debt arrears.
The U.S. government terminated the Zimbabwe Sanctions Program on March 4, 2024, and designated 11 individuals and three companies, including President Emmerson Mnangagwa, under its Global Magnitsky Human Rights Accountability Act (GloMag).