adminthe review workshop, co-hosted by the Zimbabwe Investment Authority and his ministry in Harare on Wednesday, Economic Planning and Investment Promotion secretary Dr Desire Sibanda emphasised the need for the country to work towards attracting FDI as a way to ensure sustainable economic growth.
“FDI is critical if we are to achieve a healthy and meaningful economic growth rate in the 7 percent range as the economy will continue to struggle without investment,” he said. “But I am also pleased to announce that we have since presented a paper to Cabinet to amend the ZIA Act to make it more competitive, attract investment and to ensure the speedy setting up of a one-stop shop for investors.”
In his recommendations, the expert Mr Clive Vokes said Zimbabwe needed to embrace a number of strategic measures to realise its 2015 goal of FDI accounting for 25 percent of Gross Domestic Product.
He said there was need to consider three critical aspects to achieve the target: investment attraction, facilitation and integration.
“In order to attract FDI, there is need for ZIA to transform from just being a licensing agency, but rather to operate as a fully fledged investment promotion agency that operates a business development unit that would be a sales and marketing arm of the country so that investors can get the necessary information,” he said.
Mr Vokes added that market data, investor profiles, policy advocacy and analysis should be the responsibility of this unit, while it should also assist with the investor selection process.
Facilitation would involve the use of a one-stop shop by foreign investors as they seek to access the relevant information in decision-making regarding which sector to invest in. The need for integration was emphasised, as it would assist potential investors to map and profile business partners, while the one-stop shop would also help with advice on which companies they can possibly partner with.
“The one-stop shop would assist potential investors get information that is vital in making decisions, including understanding the provisions of the indigenisation laws of the country so that they will comply, while also benefiting from their investment ventures,” he said.
The indigenisation law states that 51 percent of all foreign-owned companies should be ceded to indigenous Zimbabweans. Mr Vokes also challenged the authorities to be able to differentiate between the various types of FDIs, as this would assist in ensuring that they attract the right investors who will in turn help with the economic growth agenda.
“Investors include those that are market-seeking, resource-seeking, efficiency-seeking which means they are concerned about lowering costs, and strategic asset-seeking which is concerned about buying market share and mergers.
“By being able to deduce what kind of an investor you are dealing with, you can actually be able to focus on those that you believe will give you the best value,” he said.
Once these recommendations were fully discussed and eventually implemented, Zimbabwe was bound to improve its international competitiveness and effectiveness in attracting FDI while there was also continued need to increase co-ordination and co-operation between stakeholders.
Zimbabwe recently participated in the Zimbabwe-South Africa investment and trade conference in South Africa under the theme, “Invest in Zimbabwe, Building Partnerships in a Diversified economy”.
Officially opening the two-day conference, Economic Planning and Investment Promotion Minister Tapiwa Mashakada said Zimbabwe’s FDI rose 19 percent last year to US$450 million from the previous year’s US$387 million.
Online Reporter