Govt, Industry Urged to Work Together to Attract $20 Billion FDI

via Govt, Industry Urged to Work Together to Attract $20 Billion FDI by Blessing  Zulu 13.01.2014 VOAZimbabwe

The former president of the Zimbabwe National Chamber of Commerce (ZNCC), Luxon Zembe, is urging industry and the government to work together to raise more than $20 billion in foreign direct investment (FDI) needed for the country’s economic revival.

Foreign direct investment in the country has been reduced to a trickle with the Confederation of Zimbabwe Industries chairman Cephas Msipa telling the Herald newspaper that the country’s manufacturing sector  requires $8 billion for capitalization.

Economists and the Zimbabwe Congress of Trade Unions have warned that the economic crisis might worsen this year if there is no foreign direct investment as more and more companies continue to close shop.

Presenting Zimbabwe’s 2014 national budget recently, Finance Minister Patrick Chinamasa said key economic challenges included limited external inflows in the form of foreign direct investment, lines of credit and grants linked to high country risk premium resulting in low investor confidence.

Chinamasa said both local and foreign direct investment is most welcome, and vigorously promoted.

He further noted that the trade balance between the country’s recorded exports and imports of around US$3.7 billion for January-October 2013 was a cause for concern.

Total exports for the period January to October 2013 stood at US$2.8 billion, this is against US$3.2 billion realised during the same period in 2012.

Government and economists believe that the declining growth in exports is a reflection of the overall slowdown in the real economic activities. By the end of 2013, exports are projected to reach US$4.430 billion.

In 2014, growth in exports is hinged on the overall performance of the economy. Exports are expected to reach US$5.0 billion.

 

COMMENTS

WORDPRESS: 4
  • comment-avatar
    Mixed Race 8 years ago

    What do we really export except minerals which are not mined and sold transparently?Agriculture only exports a bit of tobacco and very limited horticulture products.What happened to our valued beef exports to EU? I cannot see companies which are struggling to pay their employees to be capable of inviting reasonable finance with our current indigenisation policy.Qualitative tourism might help provided we stop careless and provocative language towards the west who really give that quality of visit.We do not want cheap visitors who just waste our infrastructures.

  • comment-avatar

    I think I need reading glasses. Can’t believe the economic drivel I seem to read these days. Must be my bad eyesight

  • comment-avatar
    John Thomas 8 years ago

    This guy is smoking his own product

  • comment-avatar
    Johnson@yahoo.com 8 years ago

    Analysis
    “Presenting Zimbabwe’s 2014 national budget recently, Finance Minister Patrick Chinamasa said key economic challenges included limited external inflows in the form of foreign direct investment, lines of credit and grants linked to high country risk premium resulting in low investor confidence.Chinamasa said both local and foreign direct investment is most welcome, and vigorously promoted.

    COMMENT
    THE ABOVE STATEMENT SHOWS UTTER HYPOCRISY OR STUPIDITY ON THE FOLLOWING ISSUES
    1) “CHALLENGES….LIMITED EXTERNAL INFLOWS IN THE FORM OF FDI” How can someone expect FDI in a country festering with lawlessness and corruption. The indegenisation scare finally nails the last nail in the coffin of Zim economy. The pretences of the likes of Chinamasa pretending to be suave baffles us in the intellectual industry who have never seen “a leopard change its spots to goat’. FDI is a function of good governance, trust, respect for human rights and good international relations inter alia. On these factors et cie Zimbabwe is utterly bankrupt or totally ignorant. Thinking of FDI is a fantasy that will never happen during the subsistence of China Masser’s Finance ministry.
    2)Line of credit-How can a bad debtor expect lines of credit. credit has already been rendered but the money was never returned and there is utter lack of accountabilty. When diamonds were discovered there were boastings of an economy that would become a behemoth overnight. This never saw the light of day. The best s to account for every penny and promote openness in govt spending with checks a balances and upholding human rights, not to mention upholding of the rule of law
    3)vigorous Promotion! My foot!- No matter what promotion is used engaging the greatest minds will work without a total change in economic policy- “a volteface” so say the least. Guys just tone down the nationalisation rhetoric. We support citizens empowerment totally but it must be done in a careful, well studied and well intentioned manner, with realistic expectations from every citizen and with total transparency
    4)Local investment- Why are they not investing now when they are there seeing the “glitz and glamour” in governace. As for diasporans they are seen by the state as “foreigners’ as shown by vehement denial of voting rights and other comments. Haa its really not viable for diasporans to partake in the cake which might be taken from their mouth without warning by the mandarins, the powera-that-be!