adminKudzanai Gerede
Government has urged investors to seriously consider injecting capital into the country’s energy sector as the current power deficits present huge opportunities for exploration given the sector has been given priority -area status to ignite productivity in all sectors of the economy. Addressing Chinese investors and local industry and commerce stakeholders at the Zimbabwe-China Investment conference in Harare last Tuesday, Minister of Macro-Economic Planning and Investment Promotion, Dr Obert Mpofu said the Government was worried about the effects power shortages has on economic production and were committed to improving energy supply through engagement with external partners in the energy sector.
“We are committed to improving the supply of energy to achieve economic growth. Chinese companies are being invited in a big way to invest in energy. We welcome such investment in this priority area. No country can grow without sufficient energy. We are tasked with providing the necessary incentives into the energy sector,” he said.
Zimbabwe needs 2 200 megawatts at peak consumption and currently generates about 1300 megawatts, which leaves a serious need for investment into the sector. He said government had laid out incentives for energy investors by removing duty for the procurement of energy equipment.
Furthermore, his ministry was making serious strides in revamping the Zimbabwe Investment Authority’ s role as a One-Stop-Shop for investment by making the registration processes easier and efficient in line with global standards.
The Minister of Industry and Commerce, Mike Bimha said his ministry was also working towards creating confidence in the country’s investment profile by ratifying the Africa Trade Insurance (ATI), a multilateral institution open to membership from any African country with the mandate to promote and support international and intra-regional trade and investment on behalf of African member states through the use of insurance, re-insurance, core-insurance, guarantees and other financial instruments.
“The ATI has the capacity to provide as well as facilitate access to capital to practical cost effective financial risk mitigation and FDIs,” he said. This is crucial in supporting export and imports, attracting FDI, growth of productivity and reduction of trade costs in Africa in general and Zimbabwe in particular,” said the minister.
“Once Zimbabwe becomes a full member, her corporate partners including China, will be able to reap the benefits outlined above,” he added.
He also called for Chinese investment in other various sectors of the economy such as agriculture, mining, ICTs, pharmaceuticals and construction among others and reiterated the need for China to consider provision of technologies to replace most of the country’s obsolete manufacturing plants. Zimbabwe has in recent years received investment from Chinese firms with the current expansion of Kariba South power station lingering in mind, the Harare water plant resuscitation and the expansion and modernization of the Victoria Falls airport.
Recently China has become Zimbabwe‘s cured tobacco’s leading buyer. The conference took place as a prelude to the Chinese President’s visit to the country on December 1, where bilateral and economic relations are expected to be strengthened.
Online Reporter