Africa’s largest lithium producer approves US$1.59 billion in new investments as mining and manufacturing take nearly 80%

The Zimbabwe Investment and Development Agency (ZIDA) issued 284 new investment licences during the three months to June, according to figures disclosed by the agency and reported by Zimbabwean NewsDay.

Mining remained the biggest destination for investors, attracting 86 licences valued at US$768.5 million, or close to half of all projected investment during the quarter.

Manufacturing followed with 43 projects worth US$496.7 million. Combined, the two sectors attracted about US$1.27 billion, equivalent to almost 80% of the US$1.59 billion investment pipeline.

The concentration highlights the central role Zimbabwe’s mineral resources are playing in its attempts to attract foreign capital and rebuild an economy that has endured years of currency instability, limited access to international financing and subdued investor confidence.

Zimbabwe has some of Africa’s most significant reserves of gold, platinum-group metals, lithium and chrome, positioning the country to benefit from global competition for minerals used in batteries and other clean-energy technologies.

But Harare is increasingly trying to capture more of the value generated from those resources before they leave the country.

The government has been tightening its beneficiation strategy, encouraging or requiring companies to process minerals domestically instead of relying overwhelmingly on exports of raw or minimally processed ores.

That strategy is beginning to show up in Zimbabwe’s mineral exports. Mineral export receipts reached approximately US$2.53 billion in the first half of 2026, with platinum-group metal matte and spodumene concentrates among the biggest contributors.

Lithium sulphate, a higher-value processed product, generated about US$73.2 million during the period.

This makes the sharp rise in manufacturing investment particularly important.

While mining accounted for the larger total value in ZIDA’s second-quarter approvals, the average manufacturing investment was about US$11.6 million per licence, compared with roughly US$8.9 million for mining, according to an analysis by Equity Axis.

For Zimbabwe, more manufacturing around its mineral sector could mean processing lithium, platinum and other commodities domestically, creating additional jobs and retaining a greater proportion of export value.

The investment figures also come against an improving macroeconomic backdrop.

The International Monetary Fund said in July that Zimbabwe’s economy grew 8.3% in 2025 and projected expansion of about 5% in 2026, supported by agriculture, mining and favourable gold prices.

The IMF also said inflation had remained relatively contained amid tight monetary policy and greater exchange-rate stability.

Still, approved investment does not necessarily translate into money immediately entering the economy.

That distinction is particularly important in interpreting ZIDA’s headline numbers. The US$1.59 billion represents the projected value of approved projects rather than capital that has already been deployed.

ZIDA itself is shifting its attention towards that gap.

During the second quarter, the agency generated 38 qualified investment leads, facilitated 15 tripartite meetings and secured eight investor commitments.

Investment commitments linked to its activities were approximately US$417.8 million, significantly below the total value of approved projects.

ZIDA chief executive Tafadzwa Chinamo said the agency was moving beyond simply counting investment licences and placing greater emphasis on whether projects are implemented and produce tangible economic benefits.

That conversion will determine whether Zimbabwe’s growing investment pipeline ultimately translates into factories, mines, exports and jobs.

For the second half of 2026, ZIDA says it plans to focus on higher-quality investments in productive industries, investor aftercare, special economic zones and public-private partnerships while pushing approved projects towards implementation.

The second-quarter numbers nevertheless provide a clear indication of where investors currently see Zimbabwe’s biggest opportunity: underground in its mineral deposits and, increasingly, in the factories that could turn those resources into higher-value products.