63pc of ZIA projects implemented

Business Reporter

THE Zimbabwe Investment Authority says 63 percent of investment projects approved are being implemented, which is way above the acceptable global implementation rate.Chief executive Mr Richard Mbaiwa yesterday said projects valued at $432 million are at various stages of implementation against investment approvals of $685 million. The normal implementation time-frame for projects is two years, failure of which the investor should advise ZIA why a project has delayed and their plan to implement.

“We have made a follow up of 163 proposed projects. There is huge gap (between approved projects and those being implemented), but there is some activity,” said Mr Mbaiwa.

“Most of the projects being implemented are joint ventures between locals and foreigners. However, the speed at which the projects are implemented is “slow” due to funding challenges.

Globally, an implementation rate of 25 percent and above, of the approved projects, is acceptable.

Macro-economic challenges facing the country have negatively affected implementation of the projects. Zimbabwe is going through difficult economic challenges, among them old equipment, perceived country risk and high cost of doing business.

However, some economic analysts say the appetite for investment remains huge, but the country needs to address critical fundamentals to improved business climate.

“The implementation rate of the projects followed up is quite encouraging, but the challenge is the pace of implementation,” said one economic analyst.“We just have to improve our investment climate and assure the investors that their investments are safe.

Zimbabwe has already made some major milestones under the second 100-Day Rapid Results Initiative, in terms of both legislative and administrative aspects. All the thematic committees tasked to work on improving the business environment have reported positive movement towards achieving a conducive doing business environment.

Progress was recorded in all the thematic areas, which included Starting a Business and Protecting Minority Investors, Construction Permits and Property Registration, Enforcing Contracts and Resolving Insolvency, Getting Credit and Paying Taxes and Trading across borders.

President Mugabe has also clarified the empowerment laws, which have often been cited as major impediment to foreign direct investment.“It is encouraging that there is progress in improving business climate but we still need to do more as a country and fighting corruption should be one of the priorities,” economic analyst Mr Dave Chihwa said.

Meanwhile, Mr Mbaiwa has dismissed speculation that project proposals by Aliko Dangote were on ice, saying the Nigeria billionaire was given two- year licences for the project.