Aussie investors eye Zimbabwe

Australian investors are due in the country this week following pledges made at the Africa Down Under annual conference held in Perth, Australia, late last month, which was attended by a delegation led by Mines and Mining Development Deputy Minister Gift Chimanikire.

The conference provides Africa with a rare opportunity to showcase its mining potential and opportunities to investors.

Deputy Minister Chimanikire, who addressed the conference, said one of the investors had already made a follow up visit to assess opportunities in chrome mining.

“The conference was a success for us as we explained the attractiveness of Zimbabwe’s mining sector ahead of many African countries,” he said.

“We interviewed at least 20 prospective investors who pledged to visit Zimbabwe to see what we have to offer.

“One of the investors who was interested in chrome mining was in the country last week and we had fruitful discussions and another group of investors is expected this week.”

Deputy Minister Chimanikire said the country was ready to offer reasonable tax concessions to firms willing to bring investment into the country as an incentive.

He said while in Perth they had also explained the country’s indigenisation law which has been misconstrued by many as nationalisation of foreign owned assets.

Zimbabwe is endowed with various minerals ranging from diamonds, chrome, iron ore to gold, but investors have largely remained hesitant because of the negative publicity the country has been receiving.

In addition, erratic power supply, inefficient rail transportation, the rising cost of production, constraints in the supply of services, illiquidity in the financial services sector and difficulties in raising long-term capital are slowing down full recovery of the sector.

Zimbabwe requires an estimated $6 billion to $8 billion in mining investment over the next five to eight years to restore and improve production capacity at existing mines.

While power interruptions cause significant production interruption, they also highlight investment opportunities into exploration and mining energy minerals such as coal. — New Ziana.