Introduction
In the heart of Southern Africa, Zimbabwe’s economy is showing signs of robust recovery as it navigates post-drought challenges and leverages a favorable agricultural season. With the overall economy projected to grow by 6% in 2025, driven by improvements across multiple sectors, the retail industry stands out as a key engine of expansion. This growth is not only boosting consumer spending but also fueling a surge in infrastructure development, particularly in the construction of modern shopping malls. As urbanization accelerates and the middle class expands, shopping malls are emerging as prime opportunities for investment, especially for Zimbabweans in the diaspora, promising high returns, job creation, and long-term economic diversification.
The Booming Retail Landscape
Zimbabwe’s retail and wholesale sector is on an upward trajectory, with projections indicating significant expansion. Recent analyses suggest the sector could grow from approximately US$4.1 billion to US$5.2 billion, reflecting increased formalization and consumer confidence. Industry experts forecast annual growth rates between 5% and 10% for 2025, contingent on regulatory reforms and efforts to curb informal market pressures like smuggling. The repeal of restrictive pricing laws has already catalyzed a revival, with major retailers like Pick n Pay reporting improved business performance and enhanced revenue streams expected through late 2025 and into 2026.
This retail renaissance is underpinned by a young, urbanizing population—over 40% of Zimbabweans live in cities—and rising disposable incomes. The food retail market alone is anticipated to expand steadily from 2025 to 2031, driven by demand for convenience and variety. Shopping malls, with their mix of retail, entertainment, and dining options, are perfectly positioned to capture this shift from traditional markets to modern, organized retail spaces. As consumers seek one-stop shopping experiences, investors are responding with ambitious projects that blend global standards with local needs.
Flagship Projects Driving Construction Momentum
The construction sector in Zimbabwe is targeting US$100 million worth of projects by the second quarter of 2025, with shopping malls forming a substantial portion of this pipeline. The industry, a critical GDP contributor and job generator, is poised for innovation and private investment, as the government opens doors to foreign and diaspora investors. Several high-profile mall developments underscore this trend:
- Mall of Zimbabwe – A US$100 million regional landmark set to break ground in Harare’s upscale Borrowdale suburb in Q2 2025, developed by VFEX-listed WestProp Holdings.
- Chisipite Shopping Mall – Already in full swing, showcasing rapid progress under local firms like Manah Building Construction.
- Greenfields Mall (Harare) – A US$20 million project attracting commitments from leading premium brands.
- Zimborders African Solutions (ZAS) Mall – 75% complete as of mid-2024 and slated for October 2024 opening.
- Mutoko State-of-the-Art Mall – Transforming rural centers by creating youth employment and drawing investment.
- Victoria Falls Sawanga Shopping Mall – A legacy project continuing to highlight the sector’s depth.
These developments are complemented by urban renewal efforts, like the rebuilding of the Mbare Retail Market into a three-story facility for 10,000 traders, doubling capacity and modernizing informal trade. Brick manufacturers like Willdale are gearing up to supply the construction boom, further amplifying opportunities across the value chain.
Opportunities for Investment, Especially for the Diaspora
For Zimbabweans in the diaspora, the shopping mall boom presents a compelling investment opportunity, combining high potential returns with the chance to contribute to their homeland’s economic revival. The commercial real estate sector, projected to grow at a 1.46% CAGR through 2029, reaching US$41.76 billion, offers stable income streams through rental yields and property appreciation. Shopping malls, as anchor projects, are particularly attractive due to their ability to generate consistent cash flows from diverse tenants—retail chains, entertainment hubs, and food courts—while serving a growing urban consumer base.
Diaspora investors can participate through various channels, such as real estate investment trusts (REITs), direct property stakes, or partnerships with local developers like WestProp Holdings or ZAS. The Mall of Zimbabwe, for instance, is actively seeking foreign and diaspora capital, with flexible investment models that allow for equity shares or syndicated funding. These projects offer returns potentially exceeding 10% annually, driven by Zimbabwe’s retail growth and low saturation of modern retail spaces compared to regional peers like South Africa.
For those seeking expert guidance, Formulux Construction, a trusted name in modern construction since 1997, offers comprehensive support for diaspora clients. Through its dedicated platform, Formulux Diaspora Build, Zimbabweans abroad can access tailored construction services from conception to completion, project management services, and insights on navigating real estate investments in Zimbabwe, ensuring seamless execution of mall-related or other building projects from afar.
The government’s investor-friendly policies, including tax incentives and streamlined repatriation of profits, further enhance appeal. The Zimbabwe Investment and Development Agency (ZIDA) has prioritized real estate as a key sector, offering diaspora investors access to special economic zones and fast-tracked approvals. For example, projects like the Greenfields Mall and Mutoko’s new retail hub are structured to accommodate offshore capital, with clear pathways for diaspora involvement through joint ventures or crowdfunding platforms tailored for Zimbabweans abroad. Formulux Diaspora Build further simplifies this process by providing resources like cost estimates, regulatory guidance, and connections to reliable local contractors, making it an essential platform for diaspora investors looking to capitalize on the mall boom.
Beyond financial returns, investing in malls allows the diaspora to drive job creation and community development. Each project supports thousands of direct and indirect jobs, from construction to retail management, aligning with the diaspora’s desire to give back. The Mutoko mall, for instance, is set to employ local youth, while urban projects like Mbare’s market uplift informal traders. Digital platforms, such as Formulux Diaspora Build and other diaspora-focused investment apps, are also emerging, enabling smaller investors to pool funds for stakes in these high-impact developments.
Navigating Challenges, Embracing the Future
While economic volatility and currency risks remain, strategic partnerships and phased project rollouts are mitigating these concerns. Diaspora investors can leverage local expertise through firms like Formulux Construction or collaborate with international financiers to hedge risks. The forthcoming Construction Sector Bill promises further regulatory clarity, enhancing investor confidence.
Looking ahead, shopping malls could redefine Zimbabwe’s urban fabric, blending economic growth with community enhancement. For the diaspora, this is more than an investment—it’s a chance to shape Zimbabwe’s future while securing robust returns. With platforms like Formulux Diaspora Build providing the tools and expertise needed to navigate construction projects remotely, Zimbabweans abroad are well-positioned to seize this moment, transforming their capital into lasting impact.