South Africa to assist FDI inflows into Zim

in South Africa.
A business forum, comprising South African companies operating in Zimbabwe, is also seeking to increase investment and trade between the two countries.
Speaking at a trade and investment initiative meeting held in Harare yesterday, South Africa’s Ambassador to Zimbabwe Mr Vusi Mavimbela said the huge investment opportunities in Zimbabwe required Foreign Direct Investment.
“South Africa is the biggest investor in Zimbabwe and we would like to facilitate dialogue between businesses in the two countries,” he said.
“We need to unlock all the logjams that businesses are facing to promote regional integration. Businesses in South Africa want to come to Zimbabwe, hence the need for such forums.”
A five-member steering committee was yesterday elected to determine the role of the forum and a working committee would soon be established to spearhead engagements between the two countries.
The embassy is facilitating a roadshow to Johannesburg next month, to promote investment opportunities in Zimbabwe. Ambassador Mavimbela said he had already approached some of the high-profile financiers in South Africa to get them to invest in Zimbabwe and assist in some of the projects the country is undertaking.
He said the Development Bank of South Africa, the Industrial Development Corporation (SA) and the Department of Home Affairs have been investing in Zimbabwe and were still willing to continue investing.
Zimbabwe and South Africa have a Bilateral Investment Promotion and Protection Agreement and the ambassador such issues would be defined through the forum.
He added that South Africa was part of the four emerging economies in the world and Zimbabwe should use South Africa as a springboard to economic development.
Participants at the meeting said the forum should also engage the authorities to deal with issues affecting the smooth movement of goods across borders.
Business executives said consignments were being delayed at the border post, resulting in retailers passing on the costs to consumers, resulting in an inflation spiral. The issue of transit visas was also brought up, with the ambassador saying it had since been raised with the relevant authorities.
“We need to review that. We have raised the issue with our Government and it is work in progress,” he said.
Zimbabwe has been described as the frontier of African markets and investors are jostling to invest in the country with vast opportunities across all sectors of the economy. The country has a tremendous recovery potential propelled by its dollarisation in early 2009.
A key driver for growth is the mineral wealth, especially in low-cost platinum production with new projects worth over US$1 billion underway.
Zimbabwe offers significant opportunities in agriculture, hydroelectric power and tourism.
South Africa has remained Zimbabwe’s major trading partner with the country exporting goods worth US$3,2 billion in 2010 of which 53 percent was destined for the Rainbow Nation.