adminMernat Mafirakurewa Business Editor
THE government is committed to creating a conducive business environment that will attract high quality investment and contribute to rapid economic development, a Cabinet Minister has said.
Speaking at the third annual Zimbabwe Pension Funds Investment Forum in Bulawayo yesterday, the Senior Minister of State in the President’s Office, Simon Khaya-Moyo, said infrastructure development remained a focal point towards the country’s economic growth strategy.
He said pension funds could play a pivotal role through the development of capital markets as well as injecting the much needed capital into developmental projects.
“The involvement of local pension funds in co-funding the infrastructure development programmes spearheaded by the government would go a long way towards the economic growth of the country and I call upon pension houses to assess the possibility of part financing projects with the requisite prudence and due diligence,” said Khaya-Moyo.
“The convening of this forum would never have come at a more momentous time as the government of Zimbabwe has embarked on turn-around strategies for economic recovery.
“This initiative creates opportunities for much sought after economic reinforcement through local pension funds as well as other institutional investors from across the globe.”
According to a 2010 African Development Bank report, at least $40 billion is required for the rehabilitation of diversified infrastructure.
The country’s infrastructure has deteriorated over the past decade.
Khaya-Moyo said electricity and water had been identified as key enablers to the country’s economic growth prospects.
He said as part of efforts to attract investment into the country, the government was in the process of formulating legislation to set up special economic zones.
Khaya-Moyo said the government was hopeful that once the legal framework had been put in place, it would lead to an influx of investors.
“We are quite certain that the numerous foreign investors who are interested but are sceptical about our investment policies and are sitting on the fence will pour in millions in capital investments as they realise that their concerns are totally misplaced,” he said.
“Let me just mention that in order to minimise errors with respect to establishing these SEZs, we are going to draw valuable lessons from our previous initiative – the Export Processing Zones we set up in 1996.
This is essential because we are cognisant of the fact that there are corrupt investors who might want to fleece the people of their God-given natural resources under the guise of investment.
“We are going to put tight screws on such investors, especially the foot-loose ones who might try to loot and then move on to the next investment destination when they have dilapidated our environment.”
Khaya-Moyo said the country’s economic recovery was hinged on an efficient and reliable supply of electricity that would enable the usage of modern agriculture technology and engender efficiency in the delivery of crucial social services to all.
He said failure by government to pay Hwange Colliery Company for coal sold to Zesa at a subsidised price had strained the former’s operations forcing the country to depend on imports.
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