adminThis form of investing is usually offered as an alternative to other forms such as mergers and acquisitions, joint ventures, or licensing agreements. Figures from the United Nations Conference on Trade and Development World Investment Report 2012 show that last year the country registered Greenfield investment projects to the tune of US$5,8 billion.
This figure is much higher that the US$387 million that the country received as FDI.
Last year’s level of Greenfield projects show incremental foreign investor confidence, as it above US$754 million worth of similar projects recorded in 2010, and US$889 million for 2009. According to the Unctad report although Greenfield projects still dominated the investment matrix across the board, cross-border mergers and acquisitions drove FDI growth last year.
Zimbabwe’s FDI from mergers and acquisitions last year stood at US$27 million.
During the first quarter of this year, the Zimbabwe Investment Authority approved projects worth US$152,7 million, however, the authority chief executive officer Mr Richard Mbaiwa, recently indicated that less than half of these projects are currently being implemented.
The Government has since indicated that it is establishing an investment tracking system.
The system will function to monitor the implementation of the approved projects.
Meanwhile, the Unctad report noted that the majority of countries continued to liberalise and promote foreign investment in various industries to stimulate growth last year.
The report shows that 78 percent of the new policies were geared to liberalise the investment environment, while 22 percent were restrictive.
The Government is in the process of reviewing its legislative and policy framework to improve the country’s investment and doing business environment.
Deputy Minister of Economic Planning and Investment Promotion Dr Samuel Undenge however said the macro-legislative environment consisted of some laws and by-laws were acting to hinder FDI growth.
Online Reporter