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CHINA was Zimbabwe’s biggest investor in the first five months of the year injecting about $100 million Foreign Direct Investment (FDI) into the economy. Statistics from the Zimbabwe Investment Authority (ZIA) show that the Asian country accounted for 74 percent of the $134 million of the FDI the country received during the period under review.
ZIA revealed that Chinese businesses invested $81,2 million in the manufacturing sector and another $16 million in the mining sector between January and May.
Other top investments to Zimbabwe came from Mauritius and South Africa that accounted for $11 million and $7 million respectively in mining and service sectors.
The bulk of the investment inflows came through mining and manufacturing sectors. In 2012, the ZIA approved $929 million of FDI, of which 72 percent was from China.
Trade between China and Africa rose from $9 billion in 2000 to $200 billion in 2012.Zimbabwe’s economy has over the years been battered with hyper-inflation recording its peak in 2008. However, the economy has been on a major rebound following the adoption of the multi-currency system in February 2009.
The mining sector has as a result become the mainstay of the economy contributing immensely to the Gross Domestic Product. In 2011, the mining sector contributed an estimated 13 percent to the GDP and grew by about 15,8 percent in 2012.
Other sectors such as agriculture and tourism have also anchored the economy.
However, since last year Zimbabwe has experienced economic stagnation due to a number of challenges, among them liquidity constraints.
Online Reporter