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Measures being taken by the government to attract Foreign Direct Investment have started paying off as evidenced by what is happening on the ground.
A number of countries especially from Europe have already shown interest in investing in the country. Only last Friday, the government and an Indian firm which makes Pepsi products held a ground-breaking ceremony for a $30 million bottling plant in Harare which will create nearly 5,000 jobs by 2018. This is just one of the many projects which could be attributed to a new investment climate that the government has created to attract foreign investors.
In August last year, Zimbabwe and China signed nine landmark investment deals that cover various sectors of the economy. Some of the projects that run into billions of dollars are already being implemented putting to shame prophets of doom who dismissed the signing of the mega deals as a non-event.
Russian investors are already working on a $3 billion platinum venture in Darwendale, another project expected to completely change the face of mining in the country and create thousands of jobs. Chinese financial institutions are next month expected to release $1,1 billion for the expansion of Hwange Thermal Power Station.
The completion of the project will add 600 megawatts to the national grid. The positive indications that the country is slowly becoming an investment of choice globally should spur the government to do more to create a conducive investment climate. The government has already identified its shortcomings such as long and protracted procedures that frustrate investors hence the mechanisms being put in place to reduce the waiting period for approval of new investment.
Three weeks ago Vice President Emmerson Mnangagwa launched The Zimbabwe National Competitiveness Report which again listed a number of issues which work against the government’s efforts to attract foreign investors. There is therefore urgent need to address issues such as the country’s high cost of labour, erratic electricity supplies, high taxes and poor transport infrastructure.
Finance and Economic Development Minister Patrick Chinamasa has emphasised the need for those in leadership to speak one language when it comes to issues of investment. He said once there is a disagreement or perceived disagreement, capital runs away.
It is a fact that conflicting policy statements especially from government ministers, work against efforts to attract foreign investors.
We have said it before that Zimbabwe cannot continue to lose investors to its neighbours such as South Africa, Botswana and Zambia given its abundant resources that include highly skilled manpower. We want at this juncture to implore the government to continue addressing the shortcomings that are working against attracting foreign investment.
Bongani Ndlovu
Online Reporter