Government charms South African investors

Source: Government charms South African investors | Sunday News (Business)

Judith Phiri, Business Reporter 

THE Government has reaffirmed its commitment to establishing stable macro-economic and financial stability, which in turn will encourage investments and take the country a step closer to realising the stated ambition of becoming a middle-income economy by 2030. 

The commitment dovetails with the aspirations of the first five-year medium-term plan, the National Development Strategy 1 (NDS1) whose objectives include strengthening macro-economic stability, characterised by low and stable inflation, as well as exchange rate stability. 

Speaking at the Zimbabwe Investment Summit 2024 in Johannesburg, South Africa on Friday, Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube said the Government was committed to collaboration and engagement with investors.

“As we head towards Vision 2030, we are hopeful that the growth prospects of our economy will continue on a positive trajectory, creating investment resources for the productive sectors of the economy, and ultimately industrialisation, economic growth and development.

“On behalf of the Government of Zimbabwe, I wish to confirm our readiness for further collaboration and engagement with the investors on deliberations that will culminate in an understanding of relative risks and opportunities that facilitate informed decision-making, today, tomorrow and beyond,” he said. 

Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube

He said Zimbabwe was open for business to all investors, including Zimbabweans in the Diaspora.

Prof Ncube also said Zimbabwe has reassured development partners and creditors that the Government was committed to the implementation of key reforms critical to resolving the debts and arrears burden.

“I want to further encourage investors to play a major and increased role in leveraging co-financing through public-private partnerships in order to attract more private sector financing for project preparation and infrastructure development,” he said.

“Colleagues, let us be innovative in infrastructure financing, through various financial instruments such as catastrophic bonds, green bonds, infrastructure bonds, diaspora bonds, small to medium enterprise (SME) Infrastructure bonds while Government will endeavour to complement these private sector efforts.”

Prof Ncube said the recently introduced structured currency (ZiG) will provide some resilience in the economy against both domestic and global shocks and headwinds, and ensure a continued downward trend in inflation. 

Tourism and Hospitality Industry Minister Barbara Rwodzi

He also said gold coins, digital gold tokens and United States dollar (USD)-denominated instruments introduced will complement the new currency. 

“I therefore urge you, investors, to contribute towards policy measures on how best we can unleash the potential of this important development agenda. To this end, I suggest that there should be a separate agenda to discuss policy issues that should be addressed or implemented by Government to support our capital markets sector and foreign investors,” said Prof Ncube. 

Speaking at the same event, Tourism and Hospitality Industry Minister Barbara Rwodzi said tourism and hospitality contribute 5,7 percent to the national GDP while also boosting employment numbers significantly. 

“Our goal is to promote and develop our tourism so that it moves two places up to become the single largest contributor to our national GDP or at least to double its contribution to the same. Tourism and Hospitality industry is a low-hanging fruit that is ready for picking,” she said. 

Minister Rwodzi said the Zimbabwe tourism investment promotion strategy was pursued within the 11 clusters with particular focus on programming infrastructure, workforce training infrastructure, physical (facilities) and digital infrastructure (ICT related) and tourism financing infrastructure among others.