tawandamusarurwa
Nixon Shingi Chekenya
“It was the best of times, it was the worst of times, it was the age of foolishness … it was the spring of hope, it was the winter of despair…” Charles Dickens.
HOW apt this statement seems to be in describing Zimbabwe’s situation in these times of global recession and slowing economic growth.
We are in times of global economic misery, instability, pandemics, wars and rumours of wars and economic despair, but there is hope for our beloved Zimbabwe.
A sad reality of many developing countries such as Zimbabwe is that they do not have significant savings required to fund their investments.
As a result, they rely heavily on foreign direct investment (FDI) and foreign aid, with the latter creating a problem of aid dependency.
Low FDI and portfolio investments in Zimbabwe are a concerning puzzle.
This is despite the background that the nation has a highly educated workforce, a rich mineral base, a developing infrastructure compared to its regional peers and a rich culture that should attract investors.
This begs the question, what can be done to attract more investment into the country?
To realise some decent economic growth, the nation needs to build a firm foundation upon which real and sustainable economic progress can happen.
Building on the current policies and efforts by the Government and its related agencies, such as the Zimbabwe Investment and Development Agency (ZIDA), there is room for proper revision of strategies and regulations to attract more investment.
The ZIDA Act [Chapter 14:38] (Act No. 10 of 2019), as renamed by the Statutory Instrument 44 of 2022, is a world-class Act that speaks to the country’s commitment to respect and protect investors’ interests.
Despite other legacy issues, promulgation of the Act is a giant step towards rebuilding the economy.
A lot of heavy lifting still needs to be done to re-establish ourselves as the breadbasket of Southern Africa.
Resource-seeking investment should naturally flow into the country because, other than South Africa, Zimbabwe is the only country with considerable platinum reserves.
The ZIDA Act itself guarantees protection of investors’ property rights.
It is very clear about not violating property rights and taking over an investor’s assets.
It is really a very strong statement of intent by the country to protect investors’ assets.
If the basic principles of investment are in place, Zimbabwe has a lot of potential to attract more serious investment flows.
This can start with asking basic but key questions such as how we create a transformative agenda which could benefit Zimbabwe.
Other countries did it; we can do it too!
It’s a journey that needs to start with the basic and honest questions.
It might take time but eventually we will get there.
*Nixon S. Chekenya is a PhD student, distinguished graduate student fellow, teaching and research assistant at Texas Tech University.
Online Reporter