The Zimbabwe Investment Authority (ZIA) has approved projects valued at over $2,8 billion in the first half of the year despite critics describing the country as a risky investment destination.
Statistics from the Ministry of Economic Planning and Investment Promotion indicate that mining sector had a total $1,7 billion worth of projects, followed by agriculture at $450 077 611 and construction at $271 090 000.
The manufacturing, services and tourism sectors had projects worth $201 381 102, $158 809 233 and $22 501 070 approved respectively.
Addressing delegates at the third mining indaba that ended on Friday, Economic Planning and Investment Promotion minister Tapiwa Mashakada said the time taken to approve, acquire residence and work permits remained inhibitive for investors.
He said this coupled with poor infrastructure, negative publicity on external debt and high start-up costs were some of the impediments to the country attracting huge investments.
Mashakada said violation of bilateral investment promotion and protection agreements, policy uncertainty and the country being perceived as a high risk was also making it difficult.
“Government is currently working on a number of initiatives to improve the investment climate, the key policy targets include operationalisation of the One-Stop-Shop investment centre and coming up with an investment Promotion and protection Bill by December 2011,” said Mashakada.
The minister noted that it would be critical to set up a National Investment Council by year-end and to conclude the Zimbabwe Mineral Policy and plan for the development of the country’s resources.
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“Infrastructure in Zimbabwe has deteriorated significantly over the past decade, resulting in lack of sufficient and reliable infrastructure services. A robust infrastructure is a key enabler for economic recovery, growth and transformation,” he said.
“Government welcomes FDI and private sector initiatives in rebuilding, rehabilitating, maintaining, modernising and expanding the country’s infrastructure base.”
Infrastructure priorities for the country have been classified as energy, water and sanitation, transport, housing and construction, Information, Communication and Technology, Science, Technology and small to medium enterprise infrastructure.
According to Finance minister Tendai Biti the country $7 billion external debt has become a serious development constraint for the economy.
