via ZIA approves $307m investment projects NewZimbabwe 23/09/2013
SOME US$307 million worth of new investment projects with the potential to create about 5,000 jobs were approved by the Zimbabwe Investment Authority (ZIA) during the first eight months of the year, the agency has revealed.
ZIA said 109 projects worth US$307.6 million were approved over the period with about 104 being joint ventures in line with the empowerment and indigenisation laws of the country.
Foreign Direct Investment (FDI) project proposals appeared to have been affected by the general scepticism surrounding the business climate ahead of and after elections.
The FDI fatigue has also been clear on the Zimbabwe Stock Exchange (ZSE), where local deals have dominated the market since last year with foreign punters appearing to adopt a wait and see attitude.
Domestic investment has however, taken a knock as a result of funding shortages to bankroll new projects and high interest rates in the banking system.
Analysts say investors in Zimbabwe were looking at investment security, political stability, respect for property rights and an environment which has an assured, high level of law and order.
In the past, several projects have been proposed in the country, but implementation of has proved one of the major problems.
Zimbabwe’s foreign direct investment in-flows in 2012 reached US$400 million representing 17,7 percent of gross fixed capital formation.
The manufacturing sector received the bulk of the investments worth US$136 million for 42 projects, followed by mining with US$119 million for 46 projects whilst construction got US$26,4 million for 3 projects.
China is still the leading investor for Zimbabwe, investing in projects worth US$180, 2 million with its interest mainly in manufacturing where it invested about US$86 million, whilst injecting US$68 million in the mining sector and US$20,2 million in construction.
The United Kingdom had projects worth US$34 million approved mainly in manufacturing, mining and services. In Africa, South Africa is the leading investor with projects worth US$39 million.