Business, Careers & Technology
US$21,6 billion in
2009 to US$18,4
billion in 2010,
representing
an
average
decline
of
almost 20 percent.
This
average,
though, masks some
dramatic
highs
and lows for
individual
countries.
The decline was attributed to the
adverse effects of the global financial crisis
of 2008/09. No final FDI figure has been
compiled for 2011 although the committee
said preliminary reports pointed to an
increase in inflows as the region benefited
from the temporary recovery of the global
economy. Individual country updates,
however, show commendable growth in
FDI inflows into southern Africa during
the past year.
Zimbabwe approved projects worth
US$6,63 billion in 2011, with more than
55 percent of these in the mining sector
at US$3,68 billion.
Disaggregated data from the ZIA shows
that the tourism sector was the second
largest recipient of FDI in 2011, attracting
a total US$1,58 billion. It was followed
by agriculture (US$444,77 million),
construction (US$120,9 million), services
(US$128,1 million) and manufacturing
(US$670 million).
China remains the biggest source of
FDI in the Southern African Development
Community (SADC) region – including into
Zimbabwe. By the end of 2011, China’s
investments in SADC amounted to US$9,9
billion, including about
U S $ 5
billion in nonfinancial
investments.
These
investments
i
n
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mining include significant partnerships
with the Zambian government in the
extensive Copperbelt, the Democratic
Republic of Congo (DRC)’s state-owned
Gécamines in cobalt and heavy earth
minerals, and Zimbabwe in diamonds.
Chinese companies have also entered
the retail sector, mainly through cheaper
textiles in most SADC member states.
Vokes further feels that Zimbabwe has
been a little bit slow in promoting foreign
investment.
“It’s important to remember that
although Zimbabwe has resources to
boot, there are a lot of things that make
foreign investors see the country as not
so attractive and these include political
stability, transparency, policy consistency,
innovative free market culture and the to
improve ease of doing business.
“Zimbabwe has to be out there,hungry,
selling its brand and trying to attract new
businesses,” he says.
The economic consultant also blames
bureaucracy for deterring foreign
investment: “Because of the convoluted
and bureaucratic system, sometimes a
foreign investor comes in and they’ve
got to navigate not only legal rules, but
they’ve also got to navigate state and
local governments that may have their
own sets of interests.”
“Bodies like the ZIA and ZimTrade
need, among other things, to explain
clearly the various business incentives
offered by each sector – not create a “onesize –fits-all,” he says, emphasising the
need to treat clients differently
and create made-to-measure
approaches.
“Having said that, I still feel
Zimbabwe can do much better than it
is doing right now. Being able to create
if not a one-stop shop then, at least, no
more than a couple of stops for people
to be able to come into the country and
make investments. That means reducing
complexity and confusion and improving
the ease to do business and creating
something with a momentum of its own!”
“However, it’s not all gloom. Zimbabwe
is on an upward trajectory and part of a
region is on the go - faster, quicker than
other regions.”
regions.”TP
April 2013
Page 33