FOREIGN Direct Investment (FDI) grew marginally to $410 million in the period 2013 to 2014 and is expected to accelerate on the back of reforms aimed at luring investors, the Finance and Economic Development ministry and said on Tuesday.
In the period 2012 to 2013, FDI into Zimbabwe was $400 million.
FDI had stuttered around $400 million in the last three years as the country payed the price for uncertainty especially around the indigenisation policy which has unnerved investors.
Speaking at the official launch of 2014 Edition of the World Investment Report, Finance and Economic Development acting chief economist Chengetedzai Musarah said since 2009, FDI has been increasing, but its share of regional inflows was low.
“The country received about $60 million in 2009 before reaching the figure of about $410 million in 2013,” Musarah said.
He said for FDI inflows into the Sadc region in the period 2006 to 2012, Zimbabwe was at the bottom followed by Zambia and Swaziland while at the top three was Angola, Botswana and Lesotho.
Musarah, however, said that government was working towards the implementation of reforms to the investment climate which should give policy direction on investing in Zimbabwe.
“Prioritising investment for rehabilitation and development of infrastructure, necessary for supporting and attracting investment, driving the economy and enhancing efficiency of the productive sector becomes critical,” he said.
“Therefore addressing the business environment is a key factor in attracting and promoting investment.”
Zimbabwe Investment Authority (ZIA) chairperson Nigel Chanakira said the FDI inflows had been affected by uncertainty.
He, however, said Zimbabwe was set to surpass the $1 billion mark in terms of investment and was targeting to reach $2 billion per annum.
ZIA head of operations SichoniTakoleza said according to the 2014 World Investment Report, global FDI returned to growth in 2013 with inflows to developed countries rising by 9% to $566 billion.
FDI to developing countries rose to $778 billion and the balance of $108 billion went to transition economies, he said.
“Developing and transition economies now command half of the top 20 FDI inflows and the FDI outflows from developing economies also rose significantly,” Takoleza said.
“The poorest countries are now less dependent on extractive industry investment while the manufacturing and services now make up 90% of value Greenfield investment projects in Africa and LDCs [least developed countries].”
He, however, said the investment policy measures remained geared towards investment promotion and liberalisation.