Investor sentiment on Zim has shifted, for the better

BUSINESSMAN Mr Shingai Mutasa — the founder of Masawara Group, whose portfolio straddles various sectors, such as financial services, hospitality, technology, health, energy and property — is considered media-shy. He rarely does media rounds.

But a couple of weeks ago, he emerged from the shadows to do a presentation in the capital, giving the market a rare opportunity to take a peek into the mind of the reclusive businessman, who has been a serial investor on the local market.

Mr Mutasa talked up the transformative prospects of the US$1,5 billion steel plant in Manhize and the oil and gas find in Muzarabani, which have emerged as signature investments over the past five years.

“If I look, (we have) Tsingshan (parent company of Dinson Iron and Steel Company) . . . (they are building) what will become the most competitive steel producer in the world, here in Zimbabwe. This is a private company that, in spite of sanctions and the short-term challenges of Zimbabwe, has invested over US$500 million and continues to invest in our region,” he said.

“These are the long-term partners we need. Our challenge as business is to embrace them as partners and work together to further strengthen our Southern African Development Community region.”

Through the businessman, we critically get the opportunity to tap into the mind of local investors, most of who are beginning to expand their operations, buoyed by the enabling investment environment that has been created by the Second Republic.

Over the past five years, President Mnangagwa’s administration has reconfigured its foreign policy drive through pursuing an economic diplomacy initiative meant to boost trade and economic growth.

And demonstrable progress has been made, not least in the growing trade volumes between Zimbabwe and the United Kingdom, as well as the United Arab Emirates, among others.

Significant inroads are also being made in Europe and Asia, where political relations are increasingly being translated into material benefits.

While Mr Mutasa gives us a glimpse of domestic investor sentiment, results of a recent survey by multinational accounting firm KPMG, which we report elsewhere in this paper, indicate the softening view of global investors.

The report, titled “Doing Deals in Sub-Saharan Africa”, ranked Zimbabwe 10th on the list of African countries to watch for future investments.

The country is listed after South Africa, Nigeria, Tanzania, Ghana, Kenya, Mauritius, Zambia, Uganda and Mozambique.

Six percent of the respondents to the survey said they would definitely consider investing in Zimbabwe over the next two years.

The major drawcards for investors in the region were identified as “abundant natural resources, including oil, minerals and agricultural produce”.

This, however, does not capture the extent of investments that have been witnessed in Zimbabwe under the Second Republic.

Chinese investors, in particular, have sunk in close to US$1 billion in the lithium sector alone.

There have also been various other investments in infrastructure development, which is now clearly at a scale unlike at any other time in the country’s recent history.

This is turning into a golden epoch for Zimbabwe.

It is quite an incredible feat, particularly for a country that is under coercive measures from the United States, the UK and the European Union.

It also indicates the sheer amount of work that has been invested in reinventing brand Zimbabwe, which was dented by withering disinformation campaigns since the turn of the millennium.

Such milestones are important for the future of Zimbabwe.

They will hopefully persuade fence-sitters that now is the time to move.

Local investors, especially those who have been sceptical, should take heed and seize opportunities that are presented under the New Dispensation.

Thankfully, some of the domestic investors are now opening up their chequebooks on capital investment projects to boost their capacity.

In its 2023 annual report, Innscor Group chairperson Mr Addington Chinake revealed that the group spent almost US$125 million in capital investment across its numerous business units over the past two financial years.

Encouragingly, it has also since set aside between US$50 million and US$60 million for similar projects this year.

Similarly, confectionary producer Proton Bakers recently announced plans to set up a new US$3,6 million plant, which is expected to boost the company’s daily output by 60 000 loaves to 200 000 loaves.

These are just but a few examples of heightened local economic activity.

But, overall, what this clearly shows is that both domestic and global investor sentiment on Zimbabwe has shifted — and for the better.