The Sunday News
Roberta Katunga Acting Business Editor
THE Government efforts to measure actual investment data in the country are at an advanced stage with a pilot survey and data publication earmarked for early 2015 amid revelations that 143 projects valued at more than $700 million were approved by the Zimbabwe Investment Authority this year. The exercise is being carried out by the Zimbabwe Investment Authority, Reserve Bank of Zimbabwe, ZIMSTAT and Ministry of Finance.
The actual investment inflows include Greenfield investment, mergers and acquisitions, retained earnings as well as portfolio investments on the Zimbabwe Stock Exchange.
In an interview, ZIA head of operations Mr Sichoni Takoleza said at least 9 212 people stand to benefit in terms of employment once the projects have been implemented.
“A total of 143 projects with a combined value of $748,5 million were approved by ZIA between January and November this year. There has been a 9,1 percent increase in approvals by value from $685,9 million recorded between January and December 2013,” said Mr Takoleza.
“The increase in the total value of approvals may be attributed to the confidence that investors are gaining in the Zimbabwe economy even though the actual number of approved projects has declined marginally.”
According to statistics from the investment authority, the services sector recorded the highest amount of investment approvals valued at $285 million for 35 projects while the transport sector recorded the lowest at $2,4 million for two projects.
The manufacturing sector recorded $269,7 million for 49 projects while the mining sector approvals were at $153,6 million for 44 projects and construction, agriculture and tourism sectors recorded $30,2 million, $4,5 million and $3,3 million respectively.
“It is, however, important to note that these values are for approved projects and do not necessarily translate to ones that have been implemented as we are still working on a system to measure the actual value of investment into the country through implemented projects,” said Mr Takoleza.
Speaking on the general view of the investment climate, he said investment into the country was subdued with a number of issues that affect the country’s ability to attract investors.
“From our interactions with investors; the issue of policy inconsistency always comes up. Some of the challenges investors raise that may be contributing to the low investment figures we are realising as a country despite the huge potential that is there also include discretionary implementation of the indigenisation policy and very short time frames for compliance, security of investment issues, perceived high country risk, corruption as well as lengthy processing times and high cost of doing business,” Mr Takoleza said.
According to ZIA, for 2015, the aim is to scope above $1 billion in investment approvals.
ZIA has the mandate to promote and facilitate investment.
The authority said several initiatives were underway which will also carry over into the coming year as well as new ones that include an international investment conference in Harare, lobbying for the introduction of Special Economic Zones as well as local investment road shows and seminars aimed at coming up with bankable projects that can be broadcast to targeted investors and fund managers.
