Zimbabwe to dispatch delegation to Portugal to drum up FDI

Source: Zimbabwe to dispatch delegation to Portugal to drum up FDI | The Financial Gazette October 11, 2016

A DELEGATION of government and private sector representatives would be travelling to Portugal this month to take part in an investment promotion forum in an effort to improve foreign direct investment (FDI) into the country.

The Zimbabwean embassy in Portugal recently wrote to the Zimbabwe Investment Authority (ZIA) asking it to c0-ordinate and take part in the programme dubbed “Zimbabwe day”.

“The embassy is planning to hold a Zimbabwe day in Portugal in October. This will be a day dedicated to trade and investment promotion of the country’s priority sectors. The idea is to have a government minister lead the delegation and explain government policies on trade and investment. The outcome of the visit could be a cooperation agreement between the two countries’ chambers of commerce. The Portuguese Industrial Association-Chamber of Commerce and Industry is keen on ensuring the fruition of this initiative and to organise a Portugal Day in in Zimbabwe in future,” he embassy said in a letter to ZIA.

Preparations to attend the event have already started.

There is very low trade between Zimbabwe and Portugal, which is also in favour of the European country.

Zimbabwe used to export flue cured tobacco, cotton, flowers, wooden furniture and black granite to Portugal.

FDI, which dropped 23 percent to US$421 million in 2015, is seen further declining this year, according to the central bank and this is expected to pile pressure on the economy.

The country had recently been looking up to remittances from Zimbabweans in the diaspora but this has also been declining.

In the six months to June this year, diaspora remittances amounted to US$397 million, 13 percent lower than in the same period last year and the government wants the estimated five million Zimbabwean citizens resident outside the country to contribute more, to offset gaps in FDI.

In the past month, the country has been increasing its road shows in advanced countries to drum up both FDI and remittances.