We are working on investing in a tar manufacturing plant in Zimbabwe. This project is geared to qualify for government incentives and infrastructure development grants, which we are excited about.
Feasibility:
Zimbabwe has a growing demand for road construction and maintenance, especially in rural areas. Limited local production means reliance on imports, presenting a gap in the market. Bitumen (the raw material) can be imported or potentially sourced regionally.
Potential Returns:
Moderate to high (IRR ~15–22%), especially if you can secure contracts with government road agencies or construction firms. Local production reduces costs and improves supply reliability.
Risks:
Economic instability (e.g., inflation, currency volatility)
Logistical challenges in sourcing raw materials and machinery
Regulatory uncertainty and potential delays in public sector payments
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