ZIMBABWE’S investment climate continues to be defined by unresolved currency instability and challenges repatriating funds — a reality underscored by investor discussions at last week’s Africa Investment Forum (AIF) Market Days in Rabat, Morocco.
At the high-level forum, only one Zimbabwean project — the US$90 million, 100-megawatt Shangani Solar Power Plant, proposed by local special-purpose vehicle Ravensus (Pvt) Ltd — was successfully presented.
It was among 39 projects across the continent to secure investment commitments, which totalled US$15,2 billion.
The concerns come as Zimbabwe grapples with the consequences of years of policy shifts in currency management, which have previously triggered capital flight, frozen funds, and severe investor losses.
The country’s long-standing difficulties repatriating funds were repeatedly cited as a primary deterrent, overshadowing project merits and dampening investor appetite.
“International investors are concerned about the ability of projects to repatriate foreign currency back to them once they have brought it in. That, to me, was the major touchpoint,” MMC Capital executive director Itai Chirume told businessdigest on the sidelines of the forum. MMC Capital are the financial advisors to Ravensus.
Keep Reading
- Company migrations hit CBDs
- Local equities market defies post-election uncertainty
- Disputed polls bleed VFEX…as the bourse loses US$40m
- Africa Investment Forum attracts US$180 billion in six years
Chirume noted that while the government had made positive moves — such as allowing intensive energy users to settle independent power producer bills in foreign currency — investors still required proof such policies could be implemented reliably.
He stressed that a supportive exchange-control framework across all sectors was essential if Zimbabwe hoped to attract sustained international capital.
As Zimbabwe moves towards a planned mono-currency by 2030, he warned the system would only function if the currency remained fully convertible.
“The mono-currency is not a bad thing provided it can be converted into foreign currency, which goes back to providers of capital when they need it,” Chirume said.
“Every other country that uses its own currency can still attract foreign investment because they are able to convert it back and remit it.”
He also emphasised the need for greater local equity participation, arguing that projects backed by domestic investors give international financiers confidence.
“Institutional investors, banks, insurers, pension funds, and listed companies were well-positioned to take up such opportunities and demonstrate national commitment,” he added.
Matthew Sangu, the acting director of Investment Coordination in the ministry of Finance, Economic Development, and Investment Promotion, who was also present at the AIF, confirmed the investor concerns.
“What I picked up is that there are other issues that we require, as a government, to work seriously on,” he said.
“Basically, on currency risk and price stability, which we are also addressing. We are striving to do our best, and there is a requirement for even more information to be shared internationally, so they know what is really transpiring.”
He added: “Some investors might not have full information on what is really happening in Zimbabwe. But we accept that we need to be serious and consistent in our policy formulation and implementation for our country to build its brand.”
Sangu said Zimbabwe must push harder to stabilise the macroeconomic environment to regain investor trust.
“We are competing for money, and we have to up our game,” he stated.
He also highlighted shortcomings in project preparation, noting many Zimbabwean projects failed to meet international standards due to a lack of credible feasibility studies and reputable technical partners.
“We have too many projects that do not have feasibility studies. Even where they exist, they must be done by reputable people to be accepted,” Sangu said.
Improving project development processes—including environmental studies and certification — would help filter and prioritise bankable projects suitable for platforms like the AIF, he noted.
Sangu confirmed that Zimbabwean participation at the forum remained enthusiastic but limited, with many project developers only learning investor expectations upon attending sessions.
He urged the country to invite AIF facilitators to local investment forums to educate project sponsors on international standards.