MACRO-ECONOMIC Planning and Investment Promotion minister Obert Mpofu has bemoaned lack of foreign direct investment (FDI) inflows into the country and urged government and private sector to work together to lure investors.
BY MTHANdaZO NYONI
Speaking at the stakeholders’ preparatory seminar on development and operationalisation of special economic zones (SEZs) in Bulawayo on Tuesday, Mpofu who was represented by his permanent secretary, Desire Sibanda, said Zimbabwe was trailing behind in terms of FDI inflows.
“We have low FDI as a country of about $600 million, while countries in the region are doing well….. There is need to increase our investment through the establishment of special economic zones,” Mpofu said.
Zimbabwe has been trailing regional neighbours in terms of FDI inflows, as potential investors cite policy inconsistencies and threats caused by the empowerment legislation. The legislation stipulates that at least 51% of all companies operating in the country should be in the hands of locals.
Last year FDI inflows into Zimbabwe were down to $421 million from $545 million in 2014. Mpofu said if implemented, SEZs would help the country attract significant investment.
He said the Bulawayo City Council should position itself to attract foreign investors.
“Bulawayo should now be exploring areas where it can attract this kind of investment as well as designing economic development models which will be suitable for the attraction of investment into the city,” he said.
- Chamisa under fire over US$120K donation
- Mavhunga puts DeMbare into Chibuku quarterfinals
- Pension funds bet on Cabora Bassa oilfields
- Councils defy govt fire tender directive
Keep Reading
He said there was need for local authorities and government to work together if the concept of SEZs was to succeed. “This will enable us and the whole city to regain its industrial hub status and develop into a more sophisticated economic zone.”
Speaking at the same function, guest speaker Professor Motoyishi Suzuki, said there was need for the government to give tax incentives to investors as a way of attracting them into the country.
He said government needs to be patient as it was not going to be easy to attract investors. He gave an example of Japan, which failed to attract investors for more than 10 years into its Laos city which was declared an SEZ.
Suzuki also said as the country was implementing the concept of SEZs, there was need to consider small-to-medium enterprises (SMEs), adding countries such as China, Thailand and Japan thrived because they let SMEs play a leading role.
