Investment traffic increases by 25pc
INVESTMENT traffic into the country increased by 25 percent in the first half of the year amid revelations that there is a growing appetite by investors targeting the manufacturing sector.
According to latest statistics from the Zimbabwe Investment Authority, in the first six months of the year, 84 projects with a cumulative value of about $300 million were approved compared to 67 with a value of $1 billion during the same period last year.
ZIA public relations manager Mr Nixon Kanyemba said the difference in value from 2015 to this year was driven by a high value energy project that was approved last year.
“Energy sector projects are usually big and of a high value and they only come once in a while. This particular project that was approved during the first half of last year made the total investment balloon,” said Mr Kanyemba.
The ZIA statistics also showed an increase in foreign investments from eight last year to 14 this year while joint investments between locals and foreigners which make the bulk of investments in the country increased from 59 to 70.
“The advantage with our economy is that it is diversified and we have a lot of capacity utilisation in the industry that we still have to work on and that on its own presents an opportunity for joint investments with local people,” said Mr Kanyemba.
He said the high interest that the country was receiving was a plus on its own and that there was a lot of positivity and potential for growth in the economy.
“We expect to see some growth in investment inquiries and applications in the second half. Some of the countries that have been showing a lot of interest include China and South Africa,” said Mr Kanyemba.
The manufacturing industry topped the sectors’ approvals with 29 projects worth about $49 million while mining was second with 25 investments worth $50 million.
The energy sector despite receiving only two approved investments had the highest value projects of about $107 million.
The statistics also showed that 3 765 people were employed from the 84 projects with mining creating the most employment of 1 409 and the agriculture sector the least at four.
Equipment from abroad worth approximately $157 million was brought into the country in the first half of the year compared to last year’s $94 million.
However, recently ZIA board chairman Mr Nigel Chanakira told a Parliamentary Portfolio Committee on Indigenisation and Economic Empowerment that mining usually attracts a lot of interest but Government’s action had put off potential investors.
“On the mining side we observed some caution and slow down with investors waiting to see what would happen with the diamond sector, that seemed to send tremors in the mining sector and as a result we are 70 percent down in terms of the value of investment that we would normally have,” said Dr Chanakira.