adminpolicy brief on a study carried out by the organisations, infrastructural development should take place before investment can be expected to flow into the country.
The study was aimed at assessing the potential of Zimbabweans abroad to invest in the country, to learn best practices from other countries and to proffer recommendations to improve Diaspora contribution and how they can actively participate in economic development.
Zimbabwe faces a plethora of problems from lack of investment to liquidity challenges. If it took a leaf from other countries in similar situations, it could exploit the potential for those in the Diaspora to contribute towards economic development.
“The macro-economic environment needs to improve before people in the Diaspora can feel confident to invest in Zimbabwe,” reads party of the policy brief.
“Efforts should also be made to improve the infrastructure such as energy, roads, telecommunications, etc, which are currently expensive to run.”
The NGOs said Zimbabwe should also improve on investor information dissemination which the study said was lacking. They said those in the Diaspora should have close links with home-based institutions, such as the Confederation of Zimbabwe Industries, the Zimbabwe Stock Exchange and the Zimbabwe Investment Authority.
Nango said they were also concerned about political uncertainty in the country and some unfavourable investment regulations. According to the report by Nango and its partners — the European Union and the University of Zimbabwe — Zimbabwe has managed to educate its people large numbers of whom migrated to other countries during the hyperinflationary era.
“The brain drain had a negative impact on the economy, but it is expected that those who left the country can still make a positive contribution to the economy that would offset the negative impact,” said the report.
Previously, Zimbabwe has taken various initiatives to lure investment from the Diaspora, including through Homelink. Homelink was launched by the Reserve Bank of Zimbabwe to persuade Zimbabweans abroad to invest in real estate.
Money Transfer Agencies were also established during the same period to make it easier for those in the Diaspora to repatriate money back home.
The Migration and Development Unit was established with the aim of enhancing the co-ordination and management of migration and Diaspora issues.
The Migration and Development Draft Policy by Government is yet to be adopted by Cabinet.
According to the study, Zimbabweans in the Diaspora prefer to invest in immovable property, motor and transport, agriculture, agro-processing and mining.
Some of the countries that have benefited from Diaspora remittances include Bangladesh, India and the Philippines.
Last year alone, India realised about US$58 billion from Diaspora remittances.
Online Reporter