The country’s investment promotion body, Zimbabwe Investment Authority (ZIA), approved projects worth $6,6 billion last year.
The mining sector attracted the most investment at $3,68 billion followed by tourism at $1,58bn.
Agriculture attracted $444,77 million, construction $120,9 million, services at $128,09 million and manufacturing at $669,95 million.
Economic Planning and Investment promotion minister Tapiwa Mashakada told delegates attending the Mandel/GIBS 2012 Economic Outlook symposium on Friday last week, it was critical for the country to have a condusive environment for investors.
“We need more ‘Essar deals’ in 2012 to sustain the growth momentum,” said Mashakada in apparent reference to the $750 million investment by the indian giant into former iron and steel-making firm, Ziscosteel.
“Indigenisation and empowerment regulations need repackaging. There should always be room for negotiation for investment in priority areas — bearing in mind the need to grow the cake $100 billion economy by 2030.”
Mashakada said investment inflows were critical for the achievement of 2012 macroeconomic targets adding the government would embark on road shows to promote investment targeting the emerging markets of Brazil, Russia, India, China and South Africa.
In addition, the government plans to embark on comprehensive investment reforms to address key impediments to investment in the country.
He said focus will be on provincial investment promotion in order to decentralise investment into all provinces.
In order to ensure predictability, Mashakada said the multi-currency regime would continue beyond this year as price stability was crucial for the performance of the economy.
“More effort will be put by the government to ensure policy consistency. In terms of elections, they will only be held after the constitution-making process and other key electoral reforms,” he said.
Mashakada, however, said there were concerns that the eurozone would fall into mild recession this year, a development that will adversely affect developing countries, especially Zimbabwe.
“The key concern is that if the European crisis worsens during the coming months, the world could be plunged into another recession.,” said Mashakada.
“This prognosis makes the prospects for developing countries gloomy. The key challenge for developing countries is how to create firewalls to minimise the impact.”
Possible effects of global events on the local economy include, reduced foreign direct investment, reduced trade, decline in export demand, limited aid inflows from eurozone countries, lack of credit lines and reduced remittances.