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Oliver Kazunga Business Reporter
THE country has floated a $32 million tender for an aeromagnetic mineral exploration exercise in the Eastern Highlands, a senior Government official has said. Permanent Secretary in the Ministry of Economic Planning and Investment Promotion, Dr Desire Sibanda, said the exploration project would help Government to comprehensively determine the extent of the country’s mineral wealth and have adequate information to lure investors.
He said lack of Foreign Direct Investment (FDI), among others was one of the challenges deterring economic growth.
“The Government has recently floated a $32 million tender for an aeromagnetic mineral exploration exercise in the Eastern Highlands.
“The exploration is expected to lure FDI in the mining sector, which the country terribly needs to promote investment,” he said.
Dr Sibanda said FDI inflows were determined by factors that included political stability and predictability, labour conditions, size of the market, openness of the economy and infrastructural development.
“The low FDI inflows in the country is due to turbulent political environment in the last decade, stand-off with development partners especially the International Monetary Fund, inadequate infrastructure supply and poor perception of the country from potential investors’ perspective,” he said.
The Chamber of Mines estimates that the mining sector requires between $3 billion and $5 billion investment to increase capacity to an average of more than 80 percent in the next three to five years.
Dr Sibanda said Zimbabwe needed to improve its ranking on the doing business indicator in order to attract foreign direct investment in the mining sector.
Following the adoption of a multi-currency system in 2009, the mining industry has become the leading sector anchoring the economy.
Since 2009, the sector has registered an average annualised growth of more than 30 percent.
However, the Ministry of Finance has revised downwards mining sector growth for this year to 5,3 percent from 17,1 percent.
According to the mid-term national budget statement, this was as a result of a sharp decline in Zimbabwe’s mineral output in the first six months of the year owing to persistent challenges facing the economy.
Online Reporter