Zimbabwe Bets Big on Outsourcing: New BKPO Framework Aims to Transform Economy and Create Jobs

Zimbabwe has launched a business and knowledge process outsourcing (BKPO) framework to position the country as a global outsourcing hub and grow service exports. The government says the initiative will help attract investment and create jobs through outsourcing.

Government launches BKPO framework for the outsourcing sector

Zimbabwe has introduced a BKPO framework under the Ministry of Finance and the Zimbabwe Investment and Development Agency (ZIDA). The framework can make the country a global outsourcing hub, according to Newsday.

“We must accelerate the transition from a predominantly commodity-dependent growth model towards one anchored on productivity, innovation, services exports and intellectual capital,” said Finance, Economic Development and Investment Promotion (MOFED&IP) minister Mthuli Ncube. “The development of the Business Process Outsourcing (BPO) sector is a catalytic intervention under our economic transformation agenda.”  

The initiative aims to build a structured system that supports BKPO activities. It is linked to government efforts to expand service exports and attract investment into the local economy.

Tafadzwa Chinamo, ZIDA chief executive, said the framework is built on three pillars:

• Policy certainty
• Infrastructure readiness
• Human capital excellence

Within that structure, the system will run on a four-tier model covering facility designation, developer permits, operator licensing, and investor licensing. 

“This model ensures certainty, prevents incentive leakages and strengthens oversight while accelerating the establishment of outsourcing operations,” said Chinamo. 

Approved BKPO operators can qualify for incentives under the Finance Act No. 7 of 2025. These include a flat 15% corporate income tax rate for licensed investors, a suspension of customs duties on approved ICT infrastructure and equipment, and a 100% capital allowance deduction in the first year of use. 

The government also introduced a youth employment tax credit of $1,500 per youth employee per year. Qualifying foreign investors are exempt from non-resident tax on dividends.

The framework operates within Zimbabwe’s Special Economic Zone model, designating specific buildings as BKPO SEZ facilities. It was developed under the ZIDA Act, the Special Economic Zones Regulations of 2023, and the Finance Act No. 7 of 2025.

Framework linked to investment and job creation goals

Government reporting from The Herald states that the BKPO framework is intended to draw significant capital and generate jobs. It can also strengthen efforts to grow service exports and Zimbabwe’s participation in outsourcing markets. The framework supports BPO and knowledge-based services delivered to international clients. 

Overall, reports from NewsDay and The Herald describe the BKPO framework as part of a broader policy direction to develop Zimbabwe’s services sector, with government messaging tying the initiative to long-term goals around investment promotion, service exports, and job creation.

David Kudakwashe Mnangagwa, deputy minister of MOFED&IP, said at the BKPO breakfast forum in Harare that the BKPO initiative “provides the operational structure required to translate Zimbabwe’s human capital advantage into an investable industry.”

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