MERGER activity in Zimbabwe surged sharply in 2025, signalling renewed corporate restructuring and growing investor interest in the economy, according to the latest report by the Competition and Tariff Commission.
The commission said 2025 marked a significant shift in deal-making activity, driven by domestic consolidation and rising cross-border investment.
“Merger activity for the year 2025 stands out as a pivotal year, characterised by record transaction volumes, improved efficiency in merger assessment, strategic realignments across multiple sectors, and increased visibility of the commission’s work within both the domestic and regional competition landscape,” the regulator said in its fourth-quarter 2025 report.
During the year, the commission handled 30 merger cases and made decisions on 26 transactions. Of these, 23 mergers were approved without conditions, suggesting most transactions were unlikely to substantially lessen competition or raise public interest concerns. Three mergers were approved with conditions after the regulator identified potential competition or public-interest risks requiring mitigation.
However, two mergers that had been approved with conditions were later withdrawn, while one transaction that had been prohibited was also withdrawn.
Overall, the number of concluded mergers rose sharply compared with the previous year.
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“This indicates a surge (by 85,7%) in merger cases concluded from 14 cases in 2024 to 26 cases in 2025, reflecting improved operational efficiency rate for the reporting period and the commission’s commitment to timely merger review processes,” the report said.
The commission added that public interest considerations — particularly employment — remained central to merger assessments.
Local deals dominated the merger landscape, highlighting continued consolidation within Zimbabwe’s corporate sector.
“In relation to the distribution of mergers by domicile, local to local transactions dominated, comprising 60% of the transactions, 23% were between foreign and local parties and 17% were between foreign to foreign parties,” the report said.
“This merger profile reflects a combination of domestic economic priorities and the country’s growing integration into regional and global markets.”
According to the commission, the surge in deals points to rising corporate dynamism and renewed investor confidence.
“2025 proved to be a defining year for merger activity in Zimbabwe, marked by strong growth in both local and regional transactions reflecting heightened corporate dynamism and renewed investor interest in the economy,” the report said.
“The dominance of local to local transactions pointed to ongoing domestic consolidation, while the participation of foreign firms illustrated broader global restructuring trends and sustained appetite for opportunities in the Zimbabwean market.”
Companies pursued mergers for various strategic reasons, including recapitalisation, infrastructure modernisation and business restructuring.
“For local to local transactions, primary drivers were recapitalisation to support operational expansion, modernisation of infrastructure, and purchase of equipment,” the commission said.
Foreign investors were also active in the market.
“Foreign to local mergers were largely driven by foreign firms seeking to enter or deepen their presence in the Zimbabwean market,” the report noted.
It also said some international companies also divested local operations as part of broader global restructuring.
The report added that purchase considerations increased during the year, supported by improved investor sentiment and regional financing flows.
In terms of sectoral distribution, the manufacturing industry accounted for the largest share of mergers at 30%, followed by hospitality at 13%, while retail, mining, and warehousing and logistics each accounted for 10%. Key countries involved in the transactions included Zimbabwe, South Africa, Mauritius, the Netherlands and Switzerland.
Mauritius-linked firms played a particularly prominent role in cross border deals due to favourable tax arrangements.
“Local Mauritian-registered companies dominated transactions between foreign and local parties based on its favourable tax regime including low corporate tax rates, tax treaties with countries that avoid double taxation, and exemptions of certain types of income,” the commission said.
Regional cooperation is also strengthening oversight of cross-border mergers. The commission said collaboration with the Comesa Competition Commission has improved its ability to assess transactions with regional implications.
“With respect to regional mergers, transaction activity increased markedly (by 50%) between 2024 and 2025,” the report said.
Looking ahead, the regulator expects deal-making activity to remain strong.
“The commission anticipates sustained growth in merger notifications and restrictive practice cases in 2026, supported by strengthened regional cooperation and expanded stakeholder engagement through awareness programmes and competition training initiatives,” the report said.
It added that its priorities would include strengthening market intelligence, tackling anti-competitive conduct and promoting a competitive environment that supports economic revitalisation.