Increased FDI a masterstroke
It is early days yet, but Zimbabwe looks set to achieve or exceed its economic targets if news on investments coming this way is anything to go by.
INCREASINGLY, the economy has mastered the art of pleasantly surprising itself against all odds. The latest Zimbabwe Investment Development Agency (ZIDA)’s third quarter report announced last week has brought with it a helping of good news that the country is on the right track, as it continues on an economic growth trajectory for the sole purpose of improving the livelihoods of its people.
Last week, ZIDA reported that Zimbabwe had attracted investments worth US$3,4 billion in the third quarter of this year and this is nothing short of outstanding!
It is a known fact globally that investments dwindle and many business deals are put in abeyance during a country’s election period, but Zimbabwe defied the odds.
It actually received more investments in the third quarter compared to the previous two quarters and this is no mean feat.
The peace and tranquil that characterised Zimbabwe’s electoral period was a sure masterstroke.
This all but consolidated this country’s stature as a safe investment destination. When the political environment in a country is right, everything else flows.
Such was the case with our beloved motherland in the last quarter.
The vote of confidence expressed by foreign investors serves to show that sustained economic growth is guaranteed for Zimbabwe. It is no longer an “if ” but a “when”.
This is a sign that we are headed in the right direction.
The land of milk and honey is no longer a mere dream, but a possibility in the not too distant future.
Of course, we need to do more to ensure we attain our national goals and ultimately Zimbabwe’s Vision of becoming an upper middle-income economy by 2030.
The President was quite prophetic when he said this could be achieved two years earlier.
Increased investments are testament that President Mnangagwa’s engagement and re-engagement stance has not been in vain, but has borne the much-needed fruit for this country.
These pronouncements are not child’s play, but forceful drivers of the national agenda to grow the economy and bring results for all to benefit.
Zimbabwe is indeed open for business, thanks to the ease-of-doing-business policies and interventions championed by the Government. We applaud investors that have taken notice of these initiatives and have responded positively.
Increased investment means more wealth created, more jobs generated, expanded production and a whole bag of direct and indirect benefits that can only augur well for this economy.
The energy sector attracted the highest investments of US$2,8 billion, while the mining sector had the highest number of new licences valued at US$411 million.
With continued inflow of such investments, the country will undoubtedly continue on its growth trajectory. Double digit growth figures are not far-fetched.
Of the US$3,4 billion, foreign direct investments (FDIs) accounted for US$3,38 billion while domestic direct investments (DDIs) chipped in with US$27,9 million.
Kudos to Zimbabweans who are heeding the President’s “Nyika inovakwa vene vayo” mantra. It is a reality that many have embraced. Increased local investment sends the right cue to foreign investors.
It is inspiring to see that we are not just waiting for FDIs but, as Zimbabweans, we are investing too. Indeed, President Mnangagwa continues to charge us to be at the forefront of developing the country.
None but ourselves can build the Zimbabwe we want to see.
“We can no longer continue to admire the level of development in other countries, we must build the Zimbabwe we want ourselves and that burden rests with all of us, Government, the private sector, micro, small and medium enterprises alike,” said President Mnangagwa recently.
At least 121 investors from China were granted new investment licences with their projects valued at US$2,7 billion, followed by the United Arab Emirates’ five investors with investments of US$498 million.
Zimbabwe had 10 investors issued with licences, with their projects valued at US$32,9 million while India’s 17 investors injected US$10,9 million. Canada’s three investors registered their interest with a US$4 million investment, South African investors brought in US$3,8 million worth of investment. Investors from Pakistan come in with US$1,7 million, to make up the top seven countries that invested during the third quarter.
Of the 180 new licences issued, Harare had 99 worth US$657, Midlands 17 worth US$36 million, Mashonaland East 16 worth US$246 million, Mashonaland West 12 worth US$2,3 billion, Manicaland 11 worth US$41 million, Mashonaland Central seven worth US$9,8 million, Masvingo province five worth $38,8 million, Matabeleland North, a similar figure worth US$51,5 million, Bulawayo five worth US$6,3 million and Matabeleland South three worth US$9,9 million.
ZIDA chief executive officer Mr Tafadzwa Chinamo said investors continued warming up to the conducive business environment instituted by the Second Republic.
“This surge in investor confidence is testament to the robustness of the country’s investment ecosystem and the efforts we have channelled towards informing the world of the bountiful investment opportunities and collective Government thrust to continually improve and simplify the business environment,” he said.
“The mood was that let’s wait and see these elections and then after that we see but the number of licences in the third quarter were 180, they are actually higher than the two quarters before that.”
Need we say more?
It is gratifying to see our all-weather friend,
China, having its investors leading the pack in terms of value of investments into the country. The two countries have come a long way.
The Asian giant’s role in Zimbabwe’s growth can never be overstated. It is truly a strategic partner.
Zimbabwe’s economic blueprint, the National Development Strategy 1 (NDS1) outlines that improved relations with the international community will be leveraged on in respect of the country’s quest to attract investment, promote economic growth and national wealth creation within the context of global economy.
This is what has been playing out. Furthermore, President Mnangagwa’s diplomatic stance that Zimbabwe is a friend to all and an enemy to none has proven to be a king maker when it comes to attracting FDIs and other business deals to prop the economy.
He continues to reiterate the importance of investments for Zimbabwe’s development.
“As we focus on our development agenda, we remain seized with opportunities under the Africa Continental Free Trade Area through private sector-led initiatives. I expect you, through the various sub-sectors, to have traceable growth with regard to increased investments and the penetration into regional and global markets.
“Our clarion call is for both local and foreign investors to invest in Zimbabwe across all sectors of the economy, leveraging on the abundant natural resources and the prevailing youth dividend,” he said.
According to the World Bank, productive private sector investments are an important component of developing countries’ growth strategies. Attracting FDIs helps to link a country’s economy to global value chains and facilitates economic upgrading. FDIs bring investment, jobs, increased exports, supply chain spillovers, new technologies and business practices to countries, it says.
The World Bank asserts that while the benefits of FDIs are well-recognised, they do not flow without a conducive policy, legal and institutional environment. It means in this instance, Zimbabwe is doing it right.
Indeed, much more can be achieved if we remain steadfast in our desire to grow the economy and achieve Vision 2030. We have the stamina to do that. We have the ingredients to do more. Let us run with it!
In God I Trust!