SA leads private sector FDI in Zim
THE stock of foreign direct investment in Zimbabwe stood at $4,5 billion in 2015, having increased by $200 million from 2014 with South Africa being the largest source market.
According to Zimstat’s Private Foreign Capital Report for 2014 and 2015, FDI liabilities, inward foreign direct investment, rose by $200 million in 2015 to $4,5 billion in 2016.
The leading sources of FDI in 2014 were South Africa, which had 45 percent, UK 26 percent, China 7 percent and Nigeria 4 percent.
The FDI pattern was little changed in 2015 with neighbouring South Africa at 42 percent, United Kingdom 30 percent and China 6 percent representing the biggest sources of foreign investment.
The main components of financial resources used in the investment were accumulated earnings 37 percent and reserves 24 percent, in 2014, while in 2015 the rates for the same portfolios moved marginally at 42 percent and 23 percent, respectively.
Zimstat said in 2014 most of the FDI was in manufacturing, finance and insurance, at 24 percent each, mining and quarrying 19 percent and wholesale and retail trade at 16 percent.
In the following year, most of the investment remained in manufacturing at 29 percent and finance and insurance at 24 percent and mining 17 percent.
The stock of portfolio investment liabilities in 2014 was $291 million and in 2015 it declined to $271 million.
In 2014 main holders of the stock were UK 57 percent, Mauritius 11 percent, Australia 8 percent, unspecified countries 6 percent and Nigeria 5 percent.
Again, the United Kingdom held the largest investor portfolio investments in Zimbabwe in 2015 with 47 percent.
Accumulated earnings were the main component accounting for 44 percent in 2014 and 46 percent in 2015.
Most of the investments were in information and communication 33 percent and finance 25 percent in 2014.
In 2015 the largest investments were in the same industries, 35 percent being information and communication and 30 percent going into finance.
There were no portfolio investments assets reported during the survey, the Zimstat survey found.
In 2014, the total stock of private external debt was $2,19 billion and this decreased to $2 billion in 2015, which reflected total net reduction of $193,3 million.
The United States was the major creditor with 32 percent of the total stock of debt liabilities, followed by China at 25 percent and Germany at 15 percent in 2014.
The United States remained the biggest creditor with 27 percent in 2015, followed by China with 25 percent while Germany accounted for 16 percent of the lending.
Loans made up 69 percent and 76 percent of the total stock of private sector debt for 2014 and 2015.
In 2014 the largest borrowers were the manufacturing sector, which accounted for 34 percent and finance and insurance industries at 25 percent.
In 2015, manufacturing owed 41 percent of total external debt while the information and communication sector owed 16 percent of the total private sector external debt.
Zimbabwe’s external debt assets amounted to $79,8 million in 2014 and decreased to $66,8 million in 2015.
This was a net decrease of $13,1 million.