Zimbabwe plans to rehabilitate and expand existing infrastructure in order to support the envisioned economic growth. To achieve this objective, the government has developed a framework for recapitalization of major public entities - a process that has opened up massive investment opportunities.
Opportunities in the sector broadly fall under the following:
• Construction of medium priced residential accommodation, commercial and industrial buildings.
• Development of toll roads, building and upgrading of airports.
• Construction of dams and bridges.
• Provision of road haulage, tourist transport, car hire and taxis.
Investors can also benefit from proposed joint ventures under Public Private Partnership (PPP), Build Operate and Transfer (BOT) and Build Own Operate and Transfer (BOOT). BOT and BOOT structures qualify for tax concessions under the incentives scheme.
Government projects
1. National Railways of Zimbabwe (NRZ)
Cost of investment:US$ 274 million
Project location: Countrywide.
The project involves the upgrading of the railway system as it plays a major role in mining, manufacturing and agricultural development . The rail network is currently operating between 30-50% capacity due to inadequate rehabilitation and maintenance of equipment and infrastructure. A feasibility study is complete and the project is awaiting funding for immediate implementation.
Type of investment participation: BOT
Benefit analysis: NRZ has a wide railway network which cuts across the nation, making it a lucrative investment. When complete it will facilitate the transportation of goods in the mining, agricultural and manufacturing sectors. The
project will also enhance export of transport services within the southern Africa region, and generate foreign currency.
2. Air Zimbabwe Holdings
Cost of investment: US$750 million
Project Location: Harare airport
The promoter intends to recapitalize the airliner. Interested investors have an immediate opportunity to provide a hanger fire protection system. The long-term investment opportunity under the project involves supplying of new fleet of aircrafts and writing a comprehensive feasibility study.
3. Beit Bridge Chirundu Toll Road
Project location: Lupane and Lowveld
The project whose estimated cost is US$1 billion involves the construction of the Beit bridge Chirundu toll road. The government is inviting investors to implement the project under BOOT or any other PPP framework.
4. Tokwe Mkosi dam construction
Cost of project: US$36 million
Tokwe Mukosi Dam is situated about 75 km South of Masvingo City, Zimbabwe’s oldest city, and is also in the vicinity of the country’s sugar estates. The opportunity to develop the dam would increase sugar and citrus production for export, as well as boost the country’s electricity generation capacity. Potential receipts from power generation and surrounding irrigation projects will guarantee increased returns to the investor. The government is looking for a BOT participator for this opportunity.
For more information on infrastructure and building opportunities contact the Zimbabwe Investment Agency.
Contact: Richard Mbaiwa
Chief executive officer,Zimbabwe Investment Agency
Email: mbaiwa@zia.co.zw, info@zia.co.zw
Tel: +263 475 7931 (to 7936)
www.zia.co.zw
