US investors pledge to propel black businesses
THE delegation of visiting US businessmen currently in Zimbabwe to explore trade and investment opportunities in the country says its mission is to propel blackowned businesses to unprecedented levels of success globally.
The chairman of the Global Opportunity Committee (GOC) of the Atlanta Business Chambers (ABC), Mr Ricardo Berris said the delegation was looking to forge connections with Zimbabwe’s diverse business community.
“We are here in Southern Africa because of Zimbabwe, we have been working tirelessly on several products from technology and agriculture to products in manufacturing.
“We are serious about doing business with Zimbabwe. As the delegation sets foot in Zimbabwe it does so with a fervent commitment to realising its overarching goal; propelling black businesses towards unprecedented heights of success on the global stage,” revealed Mr Berris.
The delegation is engaging with Zimbabwean business counterparts exploring collaborative ventures and unlocking new avenues for business expansion.
“Please understand that as we meet you throughout the next few days, we want to ensure that as we go back, we are going back with a story, with a message to tell our members that Zimbabwe is open for business.
“That the new Zimbabwe is ready to receive their business. It is amazing what you have here in this country and I hope you see the value in that because we also see that value and that is a big part of the reason we are here,” Mr Berris told journalists soon after arriving in Harare at the weekend.
Zimbabwe is expected to benefit from over US$500 million worth of investments in several sectors of the economy from the visiting US black businesspeople.
The delegation, which will also visit South Africa and Zambia, comprises investors and experts in agriculture, real estate, manufacturing, mining, and biotechnology.
Several memorandums of understanding have since been inked between the US businessmen and their Zimbabwean counterparts.
Mr Berris said ABC’s ultimate vision was to generate over US$100 billion in value for the American and Zimbabwean business partners.
Zimbabwe’s trade with the US remains limited, but exports to the US rose to US$12,1 million in 2022 from US$700 000 in 2020.
The American community is increasingly becoming influential and stimulating to the US economy, controlling over US$3 trillion of the total US gross domestic product.
The Black Americans are growingly showing a huge appetite for African products and are willing and ready to invest in Africa as part of their diaspora homecoming aspirations.
Meanwhile, the Zimbabwe Energy Regulatory Authority (ZERA) said on Monday there was urgent need to expand Zimbabwe’s grid capacity to adequately support key sectors of the economy amid growing demand from the mining sector.
Addressing the same forum, ZERA chief executive officer, Mr Edington Mazambani said limited power generation in the country was negatively weighing on business operations.
“There is a need for us as a country to step up and improve our grid, we have a very old grid, which needs to be reinforced. We have a growing economy, which has led to a growing demand for electricity and fuel. The mining sector is one of the biggest that demands high energy sources.
“Growth in energy demand has been exacerbated by the new policy where the country is no longer exporting raw minerals. We are now exporting processed minerals, leading to increased demand for electricity in the country.
“Electrification rate stands at 44 percent in Zimbabwe and we need to fulfil SDG Number 7, which talks about universal access to modern energy by 2030,” said Mr Mazambani.
He further encouraged local industrialists and commercial operators to utilise their rooftops or any spaces to produce their own electricity given the huge potential of solar energy in the country.
Although there has been investment to expand generation capacity, Zimbabwe remains in the throws of debilitating power shortages.
Zimbabwe’s level of electrification stands at 44 percent, meaning the country needs to facilitate more investment in the energy production sector to meet demand.
After nearly two decades of economic meltdown, including due to the impact of illegal Western economic embargo, the economy is performing well below its potential; reflecting upside potential for even higher demand for power in the future.
Zimbabwe’s main source of electricity is the Kariba Dam, which relies on water from the Zambezi River, but droughts in recent years have reduced water levels in the dam, resulting in reduced electricity generation capacity.
Some of the country’s power generation infrastructure is too old, limiting its output and reliability. Limited production disrupts production across key sectors, including mining, the country’s largest export earner.
According to Zimbabwe Electricity Transmission and Distribution Company (ZETDC), Zimbabwe’s projected demand for energy will reach 2 350 megawatts by 2025, particularly with high demand from the mining sector.
As of yesterday, Zimbabwe was generating a total of 1 195MW with Hwange producing 764MW, Kariba 400MW and independent power producers churning out 31MW.