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NewsDay

AMH is an independent media house free from political ties or outside influence. We have four newspapers: The Zimbabwe Independent, a business weekly published every Friday, The Standard, a weekly published every Sunday, and Southern and NewsDay, our daily newspapers. Each has an online edition.

Zim’s confidence gap: Unlocking investment potential

Opinion & Analysis

FEW countries possess the combination of natural resources, educated workforce, tourism attractions and entrepreneurial spirit that Zimbabwe enjoys.

Despite these advantages, the country continues to attract less investment than many believe it should.

Investment flows where confidence exists.

We must continue to demonstrate that our country is a place where businesses can operate, invest and sustain returns with confidence.

Every investor makes a bet on the future by committing capital based on their belief that tomorrow will provide opportunity and stability.

Investors seek confidence in contract enforcement, regulatory consistency and the rule of law.

Our greatest investment opportunity lies in strengthening confidence among both domestic and international investors.

Investors prefer to operate in a business environment that offers favourable monetary and fiscal policy.

Favourable policies include tax holidays or tax exemptions in Special Economic Zones (SEZs) and targeted support for Business Process Outsourcing (BPO).

In a bid to streamline business operations, improve efficiency and remove bureaucratic hurdles, the government established the Zimbabwe Investment Development Agency (Zida) — a one‑stop shop effectively playing an instrumental role in cutting down the time and red tape required for business registration and tax reductions.

Importantly, Zida plays a key role in regulating the Zimbabwe Stock Exchange, which offers special fiscal and non‑fiscal incentives for eligible businesses.

Zida also plays a key role in reviewing and co-ordinating partnerships between the government and private investors.

As such, investors receive guidance tailored to their particular industry.

Among its many roles, Zida is not only involved at the start of an investment, but also provides post‑investment support, including business expansion and scaling efforts.

Another pull factor for investors is a strong governance structure.

Most countries with strong governance structures tend to attract more investment because investors gain confidence in how decisions are made and risks are managed.

Good governance promotes accountability, transparency and institutional stability.

Strong governance structures attract more investors because they are willing to accept risk, but are very reluctant to accept uncertainty.

Moreover, clear legal frameworks, transparent corporate governance structures, and protection of private property rights assure investors that their institutional capital is secure.

The government must set up systems that promote robust corporate governance frameworks, which encourage fair trading and efficient allocation of resources.

Such frameworks enforce accountability while minimising the possibility of major corporate collapse.

Building effective governance balances the interests of stakeholders.

Good governance practices form the cornerstone of promoting sustainable development as well as long‑term success within ever‑evolving markets.

Corporate governance expectations require organisations to be run responsibly, ethically, openly and in the highest interest of shareholders.

Responsibility makes boards of directors and upper management accountable.

Similarly, transparency involves providing timely, accurate and complete information about the company’s performance and operations, which helps build trust with investors, employees, and the public.

Economic activity relies heavily on infrastructure that, in turn, enables growth.

Reliable transportation networks, water systems, and logistics capabilities all play significant roles in supporting investments.

Businesses need the confidence that their products and services can move efficiently, operations can continue without disruption and that information can flow seamlessly.

One of the most pivotal decision points for investors is predictability, because they make investment decisions that often span years or even decades.

With that in mind, investors need the confidence that the operating environment will remain stable enough to support long‑term planning.

Consistent policies send a powerful message that we are committed to economic growth and investment partnership.

Zimbabwe’s future as an investment destination is bright and hinges on fundamentals for growth such as natural resources, a resilient workforce and strategic institutions such as Zida.

What remains critical is embedding strong corporate governance, transparent policies, and predictable systems that assure investors of stability.

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