Zimbabwe remains attractive to investment – ZIA
Harare- Zimbabwe’s manufacturing, services and mining sectors remain the country’s top attractive sectors to foreign investors, the Zimbabwe Investment Authority has said.
Data released by the Zimbabwe investment authority shows that the number of foreign projects approved increased to 21 in the 9 months to October 2016 from 18 same period last year however with value figures falling to $ 143,6 mln comparable to $2, mln respectively ,same period last year.
During the quarter approved projects under the joint initiatives were 116 valued at $ 522,3 mln compared to 118 valued at $ 1,1 bln
ZIA public relations Nixon Kanyemba said Zimbabwe remained attractive in manufacturing , mining and services sectors which still dominates the investments although at lower investment values.
ZIA approved high value figures especially in mining and manufacturing sector in 2015 compared to this year .
“ The issue is not about monetary values but about investments. The flow of investments show that Zimbabwe still potential in the manufacturing mining and services sectors as they continue to be dominant. If you look at the figures you will see that those areas that were attractive last year are still the same signifying the potential the country has in those areas.,” he said.
The manufacturing sector continued to lead in this third quarter with 42 projects valued at $137,7 mln however a fall from last year third quarter of 53 projects valued at $1,9 bln, while the services sector approved projects during the period under review fell to 31 valued at $129,5 mln compared to 39 projects valued at $ 258,6 ml same period last year.
43 approved projects valued at $78,8 mln were approved for Mining sector , a significant improvement in number of approved compared to 28 projects approved last year however the at a higher figure of $ 472 mln.
Investment in the Construction declined both in number of projects and value with 2 projects valued at $19 mln being approved compared to 6 projects valued at $42,38mln approved in the 9 months to October 2015.
The tourism sector improved significantly with 7 projects being approved at value of $ 3,34 mln comparable to 1 project approved same period last year valued at $ 434,624.
Zimbabwe has been struggling to attract Foreign direct investments due to a number of treasons including high cost of doing business and policy reforms
The country’s FDI Zimbabwe declined by 23 percent in 2015 to $421 million, reflecting weak investor sentiment towards the struggling southern African country.
Lack of policy consistency, disregard for property rights and the unwillingness of authorities to deal with corruption have often being identified as factors dissuading investors from a country which boosts of vast mineral deposits.