ZIMBABWE has stepped up efforts to position itself as a competitive destination for Business and Knowledge Process Outsourcing (BKPO), as government officials yesterday outlined plans to harness the country’s youthful workforce, expanding digital infrastructure and fiscal incentives to grow service exports.
Speaking at a BPO breakfast forum organised by the Zimbabwe Investment and Development Agency (ZIDA) in partnership with the Ministry of Finance at the Hyatt Regency Hotel, Finance Minister Mthuli Ncube said the sector would play a central role in the country’s transition towards a knowledge-based economy.
“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,” Ncube said.
Government officials say the initiative, which has attracted interest from both local and international investors, is expected to support export growth, youth employment and broader economic transformation under the National Development Strategy 2 (NDS2) and Vision 2030.
Deputy Finance Minister David Kudakwashe Mnangagwa highlighted the importance of the newly introduced BKPO Special Economic Zone (SEZ) framework, describing it as a key mechanism for turning Zimbabwe’s human capital into a viable investment opportunity.
“This framework provides the operational structure required to translate Zimbabwe’s human capital advantage into an investable industry,” he said.
Zimbabwe’s renewed push comes as authorities seek to capitalise on growing global demand for outsourced business services, including customer support, back-office processing and higher-value digital services.
Government has already introduced a range of fiscal incentives to stimulate investment in the sector. Presenting the 2026 National Budget, Ncube said Zimbabwe was responding to rising domestic interest in establishing BKPO operations, noting the industry’s potential to generate jobs, earn foreign currency and stimulate investment in digital infrastructure.
The incentives include suspension of customs duty on imported equipment, a concessional corporate income tax rate of 15 percent and a 100 percent capital allowance in the first year of use. Companies will also benefit from exemption from Non-Residents Tax on Dividends and a US$1 500 per employee annual tax credit under the Youth Employment Tax Incentive programme. Skilled expatriate employees will also qualify for a flat 15 percent tax rate.
Zimbabwe has already begun to see the emergence of several call-centre and outsourcing operations in recent years, supported by a largely English-speaking workforce and comparatively competitive labour costs.
Globally, outsourcing has grown into a major industry as companies increasingly rely on external service providers to reduce operating costs and access specialised skills.
Business Process Outsourcing (BPO), which covers services such as call centres, customer support and administrative processing, is estimated to generate more than US$260 billion in annual revenue worldwide. Knowledge Process Outsourcing (KPO), which includes higher-skill services like data analytics, financial research and digital content moderation, is valued at over US$55 billion.
Major outsourcing hubs such as India and the Philippines employ millions of workers and generate substantial export earnings, while African economies including Kenya, Rwanda and South Africa have also made significant progress in developing the sector.