adminZimbabwe will need to invest at least US$2 billion each year over the next ten years to close the infrastructure gap, says African Development Bank (AfDB) resident representative Mr Mateus Magala.
“Inefficeinces are eroding competitiveness as the gap is huge,” Mr Magala told the three-day Buy Zimbabwe conference which opened in Victoria Falls on Wednesday.
“We need innovative financing to bridge the gap. We do not need to think outside the box, but think without the box at all.”
Zimbabwe spends around US$800 million each year on capital expenditure, or under 5 percent of the national budget, as the rest goes towards recurrent expenditure.
Infrastructure development has suffered, as a result, with key economic enablers such as roads and power going for years without proper investment.
Mr Magala said investments into power infrastucture alone would need to be scaled up to US$1,2 billion each year and water and sanitation infrastructure US$427 million, to bridge existing gaps.
“Infrastructure deficts are short-changing the country as investors shy away,” he said, adding ineffiencies in this sector cost Zimbabwe US$700 million per year.
The country will need to be fund infrastructure through multi-lateral agreements that include innovative policy approaches at attracting domestic and foreign direct investment, the conference heard.
The Buy Zimbabwe summit ends on Friday and is running under the theme Enhancing Local “Preference for Industry Revival.”
derick.khumalo
Online Reporter