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(HERALD) Zim should lure investors: minister

Zim should lure investors: minister
Business Reporter

ZIMBABWE should use the new political dispensation to lure investors as part of efforts to turnaround the economy, a recent business forum heard.

Economic Development and Investment Promotion Minister Mr Elton Mangoma told delegates at a forum on ‘Doing business in Zimbabwe’ held in South Africa last week that companies with subsidiaries here should consider recapitalising them.

"The private sector must play a pre-eminent role in getting Zimbabwe moving again. We have got to re-examine the private sector as partners.

"The Zimbabwean Government must mingle and consult with the private sector and ensure that their concerns are dealt with," he said.

"Where you are a parent company, please recapitalise subsidiaries in Zimbabwe. Now is the time.

"Whoever is strong (in Zimbabwe) now, will be very strong in the future," said the minister highlighting, "Zimbabwe also needs lines of credit and extended credit terms."

Mr Mangoma said the scrapping of the local currency has led to one of the most liberal exchange control regimes in the world with the US dollar and the South African Rand acting as anchor currencies.

It is yet to be seen which will emerge as the dominant currency. There is no urgency to re-introduce the Zimbabwean dollar, he said.

Finance Minister Tendai Biti recently told Parliament that that Zimbabwe dollar had essentially died and there was no urgency to revive it.

The Zimbabwe dollar failed to resist the weight of hyperinflation.

Potential investors have a chance to grab business opportunities in sectors such as agriculture, mining, tourism, manufacturing, information technology, infrastructure development and financial services.

The "lost decade" coupled with investment drought has resulted in many sectors falling behind in their growth trajectory.

Although potential donors have been looking at Zimbabwe largely from a humanitarian standpoint, they have recently agreed to assist with the strengthening of public finance management systems which they believe are currently not strong enough to ensure targeted spend.

It is expected that in three weeks the World Bank and the International Monetary Fund will have formalised their position on Zimbabwe.

Southern Africa heads on Monday at a Sadc summit said they were prepared to help Zimbabwe raise US$8,3 billion to rebuild the economy.

Speaking at the business forum, Brian Njikizana, a partner at KPMG Zimbabwe, noted business opportunities were arising in Zimbabwe as a result of policy changes driven by the inclusive Government.

These opportunities would be enhanced by the Zimbabwean Government’s decision to privatise and commercialise some of its parastatals.

Labels: FDI

posted by MrK @ 5:46 PM