Thumbs up for Zim

rich mineral resources.
In its emerging companies research focusing on London Stock Exchange-listed LonZim, WH Ireland Research said Zimbabwe has enormous economic potential and could easily double its economic growth.
Similar comments were made by another London-based securities company, Amstel. It described Zimbabwe as “the final frontier market in Africa”, ignored by investors.
Zimbabwe, with the potential to double its growth, is expected to grow by about 8,1 percent this year, buoyed by increased production in the agriculture and mining sectors.
WH Ireland said considering the natural resources with which Zimbabwe was blessed, it ought to be a highly attractive place for investors.
Despite the volatile political environment in Zimbabwe, which is expected to slow down growth, the country continues to be attractive for foreign direct investment.
“However, the potential returns are also high as the country is rich in natural resources and historically had the infrastructure to exploit them,” said WH Ireland
The company rated LonZim as a speculative buy on the London Stock Exchange.
LonZim is an investment company with majority stakes in companies operating in Zimbabwe and neighbouring Mozambique.
These companies are in several sectors and selected according to their ability to be among the first to benefit as Zimbabwe recovers from the hyperinflationary period.
“The economic potential of Zimbabwe is vast, with substantial deposits of platinum, gold, diamonds and other minerals,” added WH Ireland.
Historically, Zimbabwe has been a major exporter of tobacco and wheat and it has enormous potential as a tourist destination.
“Moreover, prior to the economic crisis, Zimbabwe had the infrastructure capable of supporting a thriving economy,” read part of the report.
Independent organisations also estimated that GDP grew by 8,1 percent in 2010 and predict slightly higher growth for the next five years.
Tourism is typically one of the first sectors
to recover, as it attracts prosperous individuals from outside, while communications also
play a vital part in the resurgence of an economy.
Zimbabwe has the second largest platinum reserves in the world, after South Africa, as well as deposits of gold, diamonds, coal, copper, nickel and tin.
Major rivers, including the Zambezi in the north and the Limpopo in the south, have the capability to generate up to 5 000MW of hydro-electricity as well as providing around half of all available water in sub-Saharan Africa, excluding South Africa.
The country is home to the Victoria Falls, the widest curtain of falling water in the world and one of the seven natural wonders of the world, several national parks and the historic Great Zimbabwe monument.