Zimbabwe Investment Authority approves over $500m projects

THE Zimbabwe Investment Authority (ZIA) has approved investment projects worth $570,5 million for the nine-month period to October this year mainly driven by investments in the mining sector.

Report by Tarisai Mandizha

According to the latest statistics from ZIA, 137 projects were approved, creating employment for 7 244 people in the period under review. Experts say the easing of empowerment regulations by the Zanu PF government following the July 31 elections is expected to ease investor fears. Zimbabwe are currently ranked one of the lowest investment destinations.

The mining sector received investments worth $179,5 million for 55 projects, followed by manufacturing with $151,3 million for 51 projects, services sector was $99,1 million for 21 projects and the construction sector received $129,5 million for six projects.

Only two projects were approved in the tourism sector with a value of $3,4 million, while the transport sector had one project with a value of $5,3 million and Agriculture had one project valued at $2,5 million.

In the period under review, Zimbabwe received foreign investment worth $87,2 million from seven projects which created 402 jobs while in joint investments Zimbabwe received $483 million from 130 projects and 6 842 jobs were created.

During the period under review Zimbabwe export earnings totalled $306,3 million.

According to the Mid-Term Fiscal Policy statement by former Finance minister, Tendai Biti, domestic investment was primarily limited by the liquidity challenges prevailing in the economy.

“. . . Foreign direct investment was mainly constrained by perceived risks associated with elections as the indigenisation and economic empowerment regulations, all of which have seen investors adopting a cautionary attitude,” Biti said.

Biti said private investment was projected at 6,3% of the Gross Domestic Product in 2013, on the other hand public investment originally target of 4,4% remains low and unachievable due to over-crowding of unsustainably high recurrent expenditures — 32,6% of GDP.

Biti revised the year-end economic growth rate to 3,4% from the projected 5% due to political uncertainty after the polls. The projected economic growth decline was also reflected by a slowdown in growth of aggregate demand, which is now projected to grow at 7% in 2013, down from the original forecast of 12%.

Experts say Zimbabwe’s Foreign Direct Investment (FDI) inflows should double within the next five years in order to achieve the 7,3% annual economic growth rates projected in the new economic blue print. According to the United Nations Conference on Trade and Development (Unctad) FDI flows into Zimbabwe increased slightly by 3,25% to $400 million last year from $387 million in 2011. FDI contributed 17,7 % to the country’s total GDP during the period under review.

The African Development Bank estimates that Zimbabwe’s infrastructure, a key enabler for FDIs, needs $14 billion to rehabilitate. The country has an estimated debt of $10,7 billion, which represents 110% of GDP.

6 Comments

  1. What a drop in the ocean. Surely with unemployment above 80%, and parastals retrenching more than the jobs promised, I dont see the worthness of this excitement!

    And to mention that some people want to create 2.2m jobs over five years. I am just scared what will happen to the thousands of graduates that leave our Universities ecvery year.
    And by the way, what is Biti’s photo doing on this article?

  2. Aripo here ma investments acho kana ma pepa. Ndaapi ma manufacturing projects atanga timhanye kundotsvaga ma basa isu ma rovha hedu timbosiya kutengesa ma banana mu street..

  3. What a fools paradise. People of small minds mistaken mist for a rain cloud. Between Harare and Bulawayo 1 700 firms closed shop and nearly 9 000 jobs were lost as a result. Therefore job creation bragged about here is a non-event. It is like mistaking a mole hill for a mountain.

  4. mhembero dzisina maturo.l have also registered mine but afraid to start only until we have a friendly environment.

  5. @Tongoona please tell that to the 7K folks who got jobs that its a non event I gurantee you that its a big even for them, just may wanna check before you write or better yet think

  6. Stembiso Tambani

    Nhai vaMbaiwa we-e-e-e you too, where are these investments you report on, just names of a few and in which sectors. You and I both know kuti no right thinking investor can ever risk hard earned resources in a country with such a myriad of negative indicators. Stop this licking forthwith.Wasting so much effort to potray a picture as if all is well, while we all know Rome is burning will not help ZIA at all. Be the adult and stop this nonsense.

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