DESPITE Zimbabwe’s vast natural wealth and economic potential, the country has struggled for decades to attract meaningful investment.
Once hailed by Tanzania’s founding leader, Julius Mwalimu Nyerere, as the “Jewel of Africa” upon its Independence in 1980, Zimbabwe boasts abundant opportunities that could make it a premier investment destination.
The country is richly-endowed with critical and rare earth minerals, including Africa’s largest lithium reserves and the world’s third-largest proven platinum deposits, trailing only South Africa and Russia.
Yet, nearly 45 years after gaining independence, Zimbabwe has spiralled into economic decline, crippled by hunger, rampant unemployment and an exodus of capital.
With a gross domestic product (GDP) estimated at US$35,2 billion by the World Bank in 2023, the nation remains burdened by a staggering US$21,7 billion debt, locking it out of concessional funding from multilateral lenders.
What went wrong with the Zimbabwe that Nyerere once admired?
Decades of unchecked corruption, mismanagement of state enterprises and erratic policies, particularly under the late strongman Robert Mugabe, offer a clear explanation.
A turning point came in 2000, when the government violently expropriated white-owned farms without compensation.
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Mugabe then escalated uncertainty by threatening to nationalise foreign-owned firms, especially mining companies that provided thousands of jobs. The result? A mass flight of capital as businesses shut down or relocated.
When President Emmerson Mnangagwa took over in 2017, he vowed to break from Mugabe’s ruinous legacy.
His rallying cry, “Zimbabwe is Open for Business”, unveiled at the 2018 World Economic Forum in Davos, initially raised hopes of economic renewal. But six years later, the promise rings hollow.
Corruption has metastasised, hunger continues to afflict millions and prolonged power outages have crippled the manufacturing sector.
Meanwhile, Zimbabwe’s local currency remains in free-fall against the United States dollar, further eroding investor confidence.
Zanu PF’s push to extend Mnangagwa’s second and final term to 2030 has only deepened uncertainty, unsettling investors who value stability above all else.
The Zimbabwean government knows precisely what needs to be done to attract investors. Time and again, reform blueprints have been outlined in various policy forums.
Just last week, Polish Foreign Affairs minister, Radosław Sikorski, reiterated this point after co-chairing the EU-Sadc ministerial meeting in Harare.
Anything short of this will fail to attract investment.
