(NEWZIMBABWE) US$800m new projects approved: ZIA

US$800m new projects approved: ZIA
14/10/2012 00:00:00
by Brian Paradza

MORE than a hundred and thirty new investment projects worth about US$800 million have been approved this year, the Zimbabwe Investment Authority (ZIA) has revealed.

Zimbabwe Investment Authority (ZIA) chief executive, Richard Mbaiwa, said most of the new investments were earmarked for the country’s mining and manufacturing sectors.

“We have processed over 135 projects this year valued over US$800 million. But these are just approvals, nothing is yet on the ground but we hope to see all the projects taking off soon,” Mbaiwa told newzimbabwe.com.

The ZIA chief was speaking on the side-lines of the recent Zimbabwe National Chamber of Commerce (ZNCC) International Business Opportunities conference in Harare.

He said Zimbabwe needs to continue attracting foreign direct investment, particularly from the region, to fire up recovery and growth if the target of a US$100 billion dollar economy is to be achieved.
“We need more of regional investments from other African countries,” he said.

“We need to exploit the existing opportunities for investment and trade within the region before we look and the international community. We need to promote cross border investment as an answer to limited international investment.”

ZNCC vice president for Harare region, Davison Norupiru, said there was need for more intra-Africa trade and investment adding local companies need to dispense with the belief that investment only comes from the West.

“Companies need to get over the mentality that investment only comes from European countries, business opportunities exist in neighbouring countries,” he said.

“This year we invited over 10 African ambassadors to discuss with the local business community investment and trade opportunities in their countries and how we can exploit each other’s potential. The goal is to promote cross-border investment,” he said.

Still, EU ambassador to Zimbabwe, Aldo Dell'Ariccia said Europe was keen to do business with Zimbabwe and welcomed amendments to the country’s empowerment legislation to exempt new investment from the 51 percent local equity threshold.
He however added that the legislative framework needed to be clearer and not prohibitive of foreign investment.
“Zimbabwe can become the economic hub (of the region) once the legislative framework becomes clear,” he said.

“A few things have to be done in order to attract investors from the EU including issues to do with the BIPPA arrangements and the legislation governing investment.

“We welcome the new announcements by the Minister of Finance regarding amendments to section 3 of the Indigenisation and Empowerment Act we urge the government to continue on that path.”