Zim’s SA investment road show kicks off

sectors such as mining, tourism, agriculture, energy, Information Communication Technology, manufacturing, financial services, transport among others.
It also hoped that the road show will make local companies more visible thus enable then to have access to financing and technical partnerships with South African financiers, provide opportunities for joint ventures, develop corresponding banking relations and access to lines of credit with SA and regional financiers.
South Africa is Zimbabwe’s largest trading partner and a Bilateral Investment and Protection Agreement already exists between the two countries.
Government has thus identified investment as critical to economic growth through the Medium Term Plan.
In particular, the attainment to Gross Domestic Product ration of 25 percent would be an enabler for growth, employment creation and increase industrial capacity.
The two-day investment workshop is a platform to showcase existing opportunities to foreign investors, fund managers and private equity investors.
Economist Mr Ratesh Anand said from an economic perspective, the conference would dispel a number of myths about investing in Zimbabwe and hopefully reflect the economic progress Zimbabwe has made since dollarisation.
“Zimbabwe has registered 3 years of positive GDP growth after almost a decade of decline.
“Inflation has average 4-5 percent and capacity utilisation has increased from 10 percent to over 50 percent. It’s important that we convey this message to the international community,” aid Mr Anand.
He said SA is a huge source of funds. “Firstly, SA has the largest and most developed country in Africa with GDP in excess of $520 billion.
The JSE has a market cap of over US$800 billion and their capital markets are well developed.
“SA has a large and growing pension fund market and are now allowed to invest a further 5 percent of their assets in Africa. The proximity to Zimbabwe combined with the BIPPA agreement that provides the necessary investment protection makes them obvious partners/investors in Zimbabwe.
“SA companies like Pick and Pay, Nampack etc have illustrated their commitment and willingness to invest in Zimbabwe. I hope that the conference encourages more companies and individuals to make further investments in Zimbabwe.”
Mr Anand noted that South Africa was very much part of the BRICS economies. He said Zimbabwe should look to the BRICS economies for investment.
“Over the next decade these economies will become more dominant given their rapid growth and development.
“Developed economies especially in Europe and the US will continue to stagnate primarily due to the debt burden and the lack of liquidity.”
South African ambassador to Zimbabwe applauded Zimbabwe for the initiative to lobby for investment in Zimbabwe “it is my singular conviction that we should be building bridges and interaction and engagement between the two countries,” he said.
“I am convinced that even after political engagement (through facilitation of GPA), and interaction between the two countries can benefit immensely from stronger bridges of economic engagements. And interaction.”
An official from the Gauteng Province said the conference has come at a time when the SA richest province was working in improving economic relations with other African nations through economic integration.
The official said African country stands to benefit from the jewelry plant that would be built at OR Tambo to add value add the precious minerals.
Finance Minister Tendai Biti, Economic Planning and Investment Minister Tapiwa Mashakada and Mines and Mining Development Deputy Minister Gift Chimanikire are representing the GovMining Indabas that have seems to have become an annual event on Zimbabwe business calendar.
Traditionally, Zimbabwe used to enjoy investment inflows from the western countries until the relations strained over the Government land reforms that sought to give land to thousands landless Zimbabweans.
However, re-taping FDI from these nations appears difficult as the Eurozone and the America are in a serious debt crisis.
It is against this background that the Ministry of Economic Planning and Investment Promotion has shifted its focus from the traditional source markets and now focusing on emerging economies such as the BRICS.
Zimbabwe has already undertaken similar missions in Brazil and China, the world’s second largest economy.
This time, Zimbabwe is in Gauteng, South Africa’s most economically productive region and the fourth largest economy in Africa.
It ranks high in connectivity to global city networks, global flows of capital, information and goods.
A Zimbabwean delegation comprising of senior Government officials and businesspeople is engaging South Africans in a two-day workshop, which began yesterday and has attracted more than 900 delegates.
The workshop is seeking to expose investment opportunities existing in Zimbabwe in sectors such as mining, tourism, agriculture, energy, Information Communication Technology, manufacturing, financial services, transport among others.
It also hoped that the road show would make local companies more visible thus enable then to have access to financing and technical partnerships with South African financiers, provide opportunities for joint ventures, develop corresponding banking relations and access to lines of credit with SA and regional financiers.
South Africa is Zimbabwe’s largest trading partner and a Bilateral Investment and Protection Agreement already exists between the two countries.
Government has thus identified investment as critical to economic growth through the Medium Term Plan.
In particular, the attainment to Gross Domestic Product ration of 25 percent would be an enabler for growth, employment creation and increase industrial capacity.
The two-day investment workshop is a platform to showcase existing opportunities to foreign investors, fund managers and private equity investors.
Economist Mr Ratesh Anand said from an economic perspective, the conference would dispel a number of myths about investing in Zimbabwe and hopefully reflect the economic progress Zimbabwe has made since dollarisation.
“Zimbabwe has registered 3 years of positive GDP growth after almost a decade of decline.
“Inflation has average 4-5 percent and capacity utilisation has increased from 10 percent to over 50 percent. It’s important that we convey this message to the international community,” aid Mr Anand.
He said SA is a huge source of funds. “Firstly, SA has the largest and most developed country in Africa with GDP in excess of $520 billion.
The JSE has a market cap of over US$800 billion and their capital markets are well developed.
“SA has a large and growing pension fund market and are now allowed to invest a further 5 percent of their assets in Africa. The proximity to Zimbabwe combined with the BIPPA agreement that provides the necessary investment protection makes them obvious partners/investors in Zimbabwe.
“SA companies like Pick and Pay, Nampack etc have illustrated their commitment and willingness to invest in Zimbabwe. I hope that the conference encourages more companies and individuals to make further investments in Zimbabwe.”
Mr Anand noted that South Africa was very much part of the BRICS economies. He said Zimbabwe should look to the BRICS economies for investment.
“Over the next decade these economies will become more dominant given their rapid growth and development.
“Developed economies especially in Europe and the US will continue to stagnate primarily due to the debt burden and the lack of liquidity.”
South African ambassador to Zimbabwe applauded Zimbabwe for the initiative to lobby for investment in Zimbabwe “it is my singular conviction that we should be building bridges and interaction and engagement between the two countries,” he said.
“I am convinced that even after political engagement (through facilitation of GPA), and interaction between the two countries can benefit immensely from stronger bridges of economic engagements. And interaction.”
An official from the Gauteng Province said the conference has come at a time when the SA richest province was working in improving economic relations with other African nations through economic integration.
The official said African country stands to benefit from the jewelry plant that would be built at OR Tambo to add value add the precious minerals.
Finance Minister Tendai Biti, Economic Planning and Investment Minister Tapiwa Mashakada and Mines and Mining Development Deputy Minister Gift Chimanikire are representing the Government.
The Zimbabwe Investment Authority, Confederation of Zimbabwe Industries, Zimbabwe National Chamber of Commerce, Chamber of Mines, Business Council of Zimbabwe, Zimbabwe Tourism Authority and Zimbabwe Council for Tourism and Imara are representing the business side.
Notable attendees from South Africa include Harmony Gold, Investec and other top fund managers.