Investment roadshow set for SA

seeking to build on the Bilateral Investment Promotion Protection Agreement signed by the two countries in 2010.
The delegation will include Government ministries, the private sector represented by business advocacy groups, including the Confederation of Zimbabwe Industries, the Bankers’ Association Zimbabwe, the Zimbabwe National Chamber of Commerce and the Chamber of Mines.
Secretary of Economic and Investment Promotion Mr Desire Sibanda said the targeted sectors were those identified as the “most critical” in the Medium Term Plan. These include energy, mining, manufacturing, agriculture, tourism, transport and information and communication technology.
“We have a BIPPA with South Africa signed in 2010 and that has created a conducive environment for trade and investment between the two countries,” said Dr Sibanda.
“With that agreement in place, we are going to have a big roadshow to encourage South African companies to invest in Zimbabwe.”
Over the years, South Africa has been Zimbabwe’s biggest trading partner. Last year Zimbabwe’s exports to South Africa amounted to US$150 million while imports were about US$1,7 billion, according to statistics from SA’s Department of Trade and Industry.
Zimbabwe continues to lag behind most Southern Africa Development Community countries in attracting foreign direct investment, drawing a mere US$105 million in 2010, out of the US$10 billion which was poured into other Southern African economies.
Angola, which recently emerged from the ravages of a civil war, attracted US$2 billion in FDI, followed by Zambia and South Africa at US$1 billion apiece, Namibia at US$888 million, Mozambique US$789 million and Malawi US$140 million. Zimbabwe managed only US$105 million in FDI, after approving a total of 450 investment proposals worth US$2,8 billion during 2010.
The poor inflows have been largely attributed to negative perceptions about indigenisation and country-risk profile. Indigenisation is an empowerment programme aimed at bringing previously marginalised locals into mainstream economic activities.
But in the face of scepticism on perceptions on indigenisation, the country could leverage on other comparative drawcards.
These include unrivalled mineral wealth, a stable dollarised economy, lowest inflation in Sadc and a highly literate and skilled workforce.
Last year, Zimbabwe embarked on a similar business mission in Brazil where companies from the biggest South American economy expressed interest in setting up business here.
Analysts have encouraged Government to target emerging economies as major sources of investments.