Singapore urged to invest in Zim

to take advantage of the vast opportunities in the local market.
The event saw the participation of about 150 delegates, consisting of Zimbabweans and Singapore investors.
The Singapore-Africa business group-Standard Chartered partnership forum, which ran under the theme: “Zimbabwe: Africa’s new promising market”, was hosted by Singapore Business Federation, Africa Business Group in Singapore, Standard Chartered Bank Singapore and Global Risk Controls.
Conference presentations were done by Zimbabwe Ambassador to Indonesia and Singapore Alice Mageza, deputy minister of Economic Planning and Investment Promotion Samuel Udenge, Securities Commission of Zimbabwe chairperson Mrs Willia Bonyongwe.
Permanent secretary of Information Communication Technology Engineer Sam Kundishora, Confederation of Zimbabwe Industries president Mr Joseph Kanyekanye, deputy minister of Industry and Commerce Mike Bimha and Infrastructure Development Bank of Zimbabwe officials as made presentations.
Speaking at the event Mr Joseph Kanyekanye said the productive sectors presented particular investment opportunities, especially as Zimbabwe is looking to focus on priority industries, incubation strategy, modernisation, capital injection, and technology transfer.
He also reiterated that Zimbabwe’s industries require lines of credit worth at least US$2 billion or a same value revolving fund at a rate of 10 percent per annum on a tenor for at least one year
IDBZ head of resource mobilisation Mr Morciad Chaparira urged the Singapore investors to consider Zimbabwe’s critical infrastructure.
Mr Chaparira noted the increasing demand for infrastructure refurbishment in respect of road, rail and aviation.
“Zimbabwe’s vehicle fleet is growing attributable to increase in small commuter traffic to fill void left by ZUPCO and trucks filling the gap created by National Railways of Zimbabwe as well as cheap imports from Japan.
“Annual average daily traffic (AADT) is increasing thereby straining the capacity of roads,” said Mr Chaparira.
As regards the rail network, Mr Chaparira said the main thrust is to facilitate a seamless operation where regional players can freely operate in and out of the country.
He also urged investors to look at country’s aviation infrastructure, with requirements for this sector estimated at US$300 million at 2009 constant prices.
SEC chairman Mrs Willia Bonyongwe said Zimbabwe’s capital markets offered attractive incentives for intending investors.
“Key attractions to Zimbabwe’s capital markets include: a diversified economy offering pure risk and return potential (best of sub-Saharan Africa outside South Africa), lack of capital controls and use of the United States Dollar.
“They are based on a strong economy anchored on educated people and natural resources (minerals and land), and a credible regulatory framework which will be compliant with International Organisation of Securities Commissions (IOSCO) principles by 2012,” she said.
Mrs Bonyongwe also said the challenges facing the capital markets presented opportunities in equity and debt investment.
Some of these challenges include: low (but growing) capacity utilisation, low liquidity in financial markets, and manual trading and settlement among others.
The Singaporean private sector participants included investment bankers, asset managers, stockbrokers, infrastructure developers, property investors and developers, private equity funds, financiers.
Key Singaporean government agencies at the event included tourism, trade and investment, capital markets regulators.
Mr Moyo said that as an action plan the Singaporean business community pledged to put together a high-level business mission to Zimbabwe next year.
In this respect an invitation was extended through Ambassador Mageza to Singapore and the Zimbabwe mission in Indonesia to join the Africa Business Group of Singapore a platform for Singaporean like-minded private sector keen to participate in African business opportunities.
Additionally, the Singapore Business Federation, the apex business body representing over 17 000 Singaporean enterprises, requested DEAT Capital to develop a detailed trade and investment project opportunities clearing system in conjunction with stakeholders in Government and private sector for continuous profiling to Singaporean investors, financiers, technical and trading partners.
Singapore is ranked number one in terms of the Doing Business Index by the World Bank this year.
The country’s Gross Domestic Product currently stands at US$250 billion, and has a per capita income US$43 000.