Zimbabwe business landscape: opportunities, mergers and acquisitions — March 2025

Key economic indicators

Zimbabwe's economy showed notable resilience, with GDP growth projected at 4.7% for 2025, up from 3.9% in 2024. Inflation had stabilised around 15%, a marked improvement on previous years. The Zimbabwe dollar held relatively steady against major currencies, supported by improved foreign currency reserves and tighter monetary policy.

Notable mergers and acquisitions

The first quarter saw several strategic transactions that signalled growing investor confidence:

• Financial services: two leading fintech companies merged to create a combined digital banking platform, widening access to financial services for underserved populations
• Agribusiness: a major South African agricultural group acquired a 40% stake in Zimbabwe's largest grain processing company, bringing capital for modernisation and expansion
• Mining: a consortium of diaspora investors acquired a medium-sized lithium mining operation, taking a position in the electric vehicle supply chain
• Retail: the consolidation of three regional supermarket chains created a new national retail leader, with plans for inventory management and e-commerce investment

Policy developments

Government policy through the period was aimed at a more favourable environment for growth and investment:

• Diaspora investment incentives: tax breaks for diaspora investors, including a five-year tax holiday for investments above $100,000 in priority sectors
• Special Economic Zones: two further zones established, focused on technology innovation and renewable energy manufacturing
• Regulatory reform: business registration streamlined, cutting the time to establish a company from 20 days to five
• Digital economy framework: a policy framework covering e-commerce, digital payments and data protection

Emerging opportunities

Several sectors looked particularly promising for entrepreneurs and investors:

• Renewable energy: the commitment to 40% renewable energy in the national grid by 2030 opened substantial room in solar installation, maintenance and mini-grid development
• Value-added agriculture: processing facilities for nuts, fruits and specialty crops, with strong export potential
• Healthcare technology: telemedicine and healthcare management systems growing quickly against a real access gap
• Tourism infrastructure: with international tourism recovering, eco-lodges, tour operations and cultural experience businesses were returning well
• E-learning and EdTech: rapid expansion in content development, learning management systems and skills training

Challenges and considerations

Against the positive developments, several constraints remained:

• Infrastructure gaps: improving, but inconsistent electricity supply and rural internet connectivity still constrained certain business models
• Skills shortages: particularly software development, renewable energy engineering and advanced manufacturing
• Supply chain complexity: international supply chains still faced periodic disruption, making contingency planning necessary
• Regional competition: neighbouring countries were implementing their own investor-friendly policies

Outlook for the remainder of 2025

Several developments were expected through the rest of the year:

• Increased regional integration through the African Continental Free Trade Area, opening markets for businesses with export capacity
• A central bank digital currency pilot announced by the Reserve Bank of Zimbabwe for the third quarter
• A major public-private partnership for transport infrastructure expected to be finalised
• A diaspora bond programme scheduled for the fourth quarter

Conclusion

The first quarter of 2025 showed continued economic evolution, with strategic mergers, policy improvement and emerging sectors creating a more dynamic environment. For diaspora entrepreneurs and investors, the combination of improved stability, specific incentives and growing sectors made a reasonable case for engaging with the Zimbabwean market.

As always, successful ventures require thorough due diligence, strong local partnerships and adaptable business models. But the trajectory suggested that well-positioned investments made at the time could do well as the economy continued to integrate regionally and globally.