At least 50 British based firms have since January expressed interest in doing business in Zimbabwe.

This comes as Government says there is a marked increase in investment inquiries from “non-traditional” markets.

For 15 years, the British government has discouraged its nationals from investing in Zimbabwe in retaliation to Harare’s agrarian reforms that saw a few thousand white farmers cede land to some 300 000 black Zimbabwean families.

Information gathered by The Sunday Mail shows that some British firms were seeing “good business prospects” in Zimbabwe and were inquiring on investment opportunities.

Investment highlights

Zimbabwe Investment Authority approved 67 investment projects since January 2015
Projects valued at US$971 million approved
Projects to create over 7 000 jobs
16 mining projects valued at US$156 million approved this year
26 manufacturing sector projects valued at US$722 million given green light
Manufacturing sector projects to create over 2 000 jobs and exports valued at US$31 million

The companies said there was now clarity in Zimbabwe’s investment and indigenisation policies.

Concerns had previously been fed by the misconception that the 51-49 percent local-foreign ownership structure was rigid and across all economic sectors.

The 51-49 benchmark applies to resource-based sectors like mining and farming, while foreign investors can negotiate shareholding in other sectors.

According to a top trade and investment promotion consultancy, British Expertise International, an increasing number of UK firms were “beginning to show a growing interest in Zimbabwe in the areas of project finance and infrastructure development”.

Responding to questions from The Sunday Mail, British Expertise International director Mr Alex Lambeth said Zimbabwe’s indigenisation policy was “not necessarily problematic”.

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“Our organisation, British Expertise, represents the UK consultancy sector which has been showing a growing interest in Zimbabwe and considering where their skills could best support Zim-Asset,” he said.

“I am told that the (British) Embassy (in Zimbabwe) continues to receive inquiries from a wide range of firms . . . The recent changes (to the indigenisation law requiring potential investors) to engage line ministries in the process have some value.

“The policy itself, as explained by many ministers we met on our visit last year, is not necessarily problematic — it was presented as flexible and adaptable.

“British Expertise International has visited twice this year, and as Zimbabwe continues to encourage international engagement in infrastructure, I can only see this increasing.”

British Expertise International led a delegation of British investors to Zimbabwe in 2014.

The delegation was the first British trade mission sponsored by its government to visit the country since relations between the two soured at the turn of the new millennium.

Zimbabwe recently embarked on an exercise to reform its business policies with the view to stimulate foreign direct investment.

The reforms, which include among other things, setting up the National Competitiveness Commission, establishing a one-stop shop at the Zimbabwe Investment Authority and of special economic zones, and review of labour legislation, are expected to make the country an attractive destination for capital.

Secretary for Economic Planning and Investment Promotion Dr Desire Sibanda told this publication that Zimbabwe was “receiving quite a number of inquiries from investors from non-traditional markets”.

“Over the last seven months we have received not less than 50 potential investors scouting for investment opportunities.

“This phenomenon is not only peculiar to us but the entire African continent where investors from both the East and the West are taking advantage of the dramatic improvement in the investment climate especially in areas of infrastructure development.

“Zimbabwe has joined into this bracket of massively attractive investment destinations owing to the continued improvement of our ease of doing business indexing.

President Mugabe last week reiterated that Zimbabwe was open for business and Government was working on improving the operating environment.

“Being a country that observes and respects the rights of investors, as the Government, we prepared to listen to all investor concerns, and address them, with the aim of making sure that we bring the cost of doing business in Zimbabwe to the barest minimum,” he said during his keynote address to mark Heroes Day at the National Heroes Acre in Harare.