HARARE – The Zimbabwe Investment Development Agency ( ZIDA), has launched the Business Knowledge Process Outsourcing (BKPO) framework, positioning the country as a competitive and credible outsourcing hub. The initiative aims to leverage the country’s highly educated population, strong English proficiency, and youthful workforce to attract investment and create economic opportunities.
BKPO Service is defined by Finance Act No. 7 of 2025 as services provided by a Zimbabwean entity on behalf of an offshore entity, including routine business tasks and knowledge-intensive tasks requiring specialised expertise. BKPO activities include export-oriented services like financial analytics, medical transcription, software development, data analytics, engineering design, research, and back-office support for international firms.
These activities are recognised as service exports if they generate foreign currency, contribute to skills development, and create jobs within designated Special Economic Zones.
The BKPO framework is built on three pillars: policy certainty, infrastructure readiness, and human capital excellence. Firstly, policy certainty is assured through the Special Economic Zones (SEZ) framework, offering clear incentives, simplified licensing, and coordinated government support, providing investors with much-needed predictability.
Secondly, Zimbabwe boasts infrastructure readiness, with competitively priced, BPO-ready commercial space, expanding fibre connectivity, and modern digital infrastructure, further bolstered by a strategic time-zone advantage that aligns with Europe, Africa, and parts of Asia. Lastly, the country’s human capital excellence shines through its high literacy rates and pool of graduates in ICT, finance, engineering, analytics, and business services, forming a solid foundation for a world-class outsourcing ecosystem.
Speaking during the launch, ZIDA CEO Tafadzwa Chinamo said this presents a practical, implementable framework centred on a facility-based Special Economic Zone model, with specific buildings designated as BKPO facilities, supported by a clear four-tier system: designation, developer permitting, operator licensing, and investor licensing. This model ensures certainty, prevents incentive leakages, and strengthens oversight—while accelerating the establishment of outsourcing operations.
He added that the incentive package is performance-based, focused on investment, job creation, and export revenue. To be eligible for incentives under the BKPO SEZ framework, investors must meet performance-based thresholds, including a minimum capital investment of US$1 million, creating at least 500 jobs within 5 years, and generating foreign currency revenues of at least US$500,000 in years 1-2, US$1 million in years 3-5, and US$1.5 million after year 5. These criteria are indicative and ZIDA may consider partial compliance on a case-by-case basis, subject to verification and compliance with fiscal legislation.
Licensed BKPO investors operating from designated SEZ facilities can qualify for various incentives, including suspension of customs duty on specified equipment, a 15% corporate income tax rate, 100% capital allowance deduction, exemption from non-resident tax on dividends, and tax credits for youth employment.
They also benefit from a 15% tax rate for specialised expatriate staff. To access these incentives, investors must obtain and maintain a valid ZIDA SEZ Investor Licence, operate from a designated BKPO SEZ facility, and comply with tax and regulatory requirements.
The guest of honour, Minister of Finance Mthuli Ncube, emphasised the strategic shift toward a knowledge-based economy, noting: “The development of the BPO sector is a catalytic intervention under our economic transformation agenda as we transition to a diversified, export-oriented and digitally competitive economy.”
Zimbabwe is positioning itself as a strategic, scalable, and sustainable partnership location for outsourcing operations. Globally, the BPO sector generated around US$328 billion in 2025, and it’s estimated to grow by 9.9% from 2026 to 2033, with an estimated revenue generation of US$696 billion.
