Home » Business » INVESTMENT FLOWS TO ZIMBABWE STAGNANT SINCE 2010

HARARE, May 6 — The flow of investment into Zimbabwe has averaged 400 million US dollar annually since 2010 compared with those of other countries in the southern African region where they average 2.0 billion USD, says the Zimbabwe Investment Authority (ZIA) chief executive officer, Richard
Mbaiwa.

He told the Parliamentary Committee on Industry and Commerce here Tuesday that local investment laws remained a major impediment to foreign direct investment (FDI). “It is clear that as a country, we are not performing to our best potential in terms of investment inflows especially if you compare with countries with similar resource endowment in the region,” he said.

Mbaiwa also attributed the low investments in the country to bad publicity, policy inconsistencies, sanctions and liquidity constraints among other impediments.

However, he added that bringing into operation the one-stop investment centre would accelerate the process of setting up business in Zimbabwe, which is currently cumbersome.

Zimbabwe has over the years been ranked poorly on the World Bank survey of ease of doing business.

Late last year, the country was ranked as the worst investment protector in sub-Saharan Africa ranking number 128 and has dropped to 170 from 168 on the ease of doing business world rankings that the World Bank compiles.

“Where we are is not where we want to be. Our board has said our target should be such that after reforms have been done, we need to be in the top 100 in the doing business survey,” said Mbaiwa.

In 2009 Zimbabwe received investment worth 60 million USD while in 2010 it received 166 million USD, in 2011 387 million USD while in 2012 it received 400 million USD before reaching about 410 million USD in 2013.
At its peak in 1998, the country received investment worth 443.3 million USD

SOURCE: NEW ZIANA

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