ZIMBABWE has been ranked 37th on the African Investment Index for 2016 on the back of an unfriendly investment climate, a new report has shown.
BY TATIRA ZWINOIRA
In the Africa Investment Index report released by research firm, Quantum Global, Zimbabwe scored poorly on liquidity, growth, risk, the business environment, social capital and demographic factors.
The Africa Investment Index ranks all 54 African countries.
For Zimbabwe, the lowest ranking on the index was on exchange rate risk, where the country was ranked as the third most risky country on the continent.
On economic growth, the country further scores poorly at 49 out of the 54 countries.
In previous rankings, Zimbabwe was 38th in the 2015 edition, 39th in 2014 and 40th in 2013.
Botswana was ranked as the most attractive African investment country, South Africa fourth, Zambia fifth, Tanzania eighth and Namibia ninth.
Madagascar was last on the overall ranking, while Malawi was 51st.
Macro-Economic Planning and Investment Promotion minister Obert Mpofu told NewsDay last week that, while he was not aware of the ranking, he hoped interest in special economic zones would “improve the country’s future rankings”.
“We are currently working flat out to improve our investment portfolio on the ease of doing business reforms in Zimbabwe. We are working flat out with all the relevant line ministries who are involved with early results very encouraging,” he said, adding that his ministry had received calls from investors from South Africa, South Korea and China.
“More investors are calling to talk about special economic zones. They are very much interested in these zones so we can assure you that we are working very hard now.”
The government is relying on special economic zones to see an improvement in investment after supporting legislature was signed into law by President Robert Mugabe last October.