Indian firms keen on local deals
INDIAN firms are currently exploring possible local investment avenues and hope doing business reforms will be expeditiously implemented.
At least five companies from the South Asian giant, which recently overtook Britain as the sixth-largest economy in the world, engaged business lobby group, the Zimbabwe National Chamber of Commerce (ZNCC), over potential investments.
Indian Ambassador Rungsung Masakui told The Sunday Mail Business that Zimbabwe has the potential to become one of the fastest growing economies on the continent.
“India is more than willing to invest in Zimbabwe as today (last week Wednesday) we are having discussions with the Zimbabwean business community to see if we can have some opportunities in a number of sectors.
“Our delegation expressed interest in investing in agriculture, mining, infrastructure, SMEs, clothing and textile.
“This delegation comprises of the Indian companies who have visited the country for the first time and have seen more opportunities here and we expect them to come back to fulfil their interests in the next few months,” said Ambassador Masakui.
During the India-Africa Summit in October last year, President Robert Mugabe discussed investment opportunities with Indian businesspeople.
Varun Beverages Zimbabwe, which is owned by Indian billionaire Mr Ravi Jaipuria, is presently building a US$30 million Pepsi bottling plant in Harare.
The investment is expected to create 3 000 jobs.
Although the plant was initially scheduled for completion at the end of 2016, it is now expected to be completed in the third quarter of 2017.
Indian companies are however concerned with the bureaucratic red tape in doing business.
“We appreciate the potential and the abundant resources that Zimbabwe has, but there is need to accelerate ease of doing business reforms in order to capture all potential investors.
“The country should be liberal as far as the economic reforms are concerned as it is still behind Zambia, Mozambique and South Africa, among other regional countries in company registration, land securing and VAT registration, among other process,” added Ambassador Masakui.
ZNCC president Mr Davison Norupiri noted that the Indian delegation had afforded the local business community the chance to gauge the appetite and perception of potential foreign investors.
“The visit by the Indians is a clear indication that we are getting there in terms of creating a conducive working environment.
“Through thorough discussions, our Government is already taking steps to engage investors as evidenced by the launch of the onestop shop.
“And also minerals are quite abundant, with the country having 68 different minerals. In 1980, gold was the main mineral, with others like chrome, iron, copper, coal and asbestos, but now we have discovered that we have diamonds and platinum.
“I think we have opportunities for those who want to undertake mining in our country,” said Mr Norupiri.
Besides multi-million dollar investments, India’s National Small Industries Corporation (NSIC) — a government of India enterprise — is urging the local small to medium enterprises to create mutually-beneficial linkages between two countries.
India is targeting to become the world’s third-biggest economy by 2030.