The Sunday Mail
To attend are executives from the Exim Bank of India, the Development Bank of Southern Africa and other financial institutions whose balance sheets have capacity to finance most of the big infrastructure projects in Zimbabwe.
DBSA is behind financing the rehabilitation of the Plumtree-Mutare highway for US$206 million through Infralink, an investment vehicle partnering ZINARA.
When Zimbabwe emerged from colonialism in 1980, the new Government faced a daunting task of rebuilding a nation devastated by over a decade of war.
Rebuilding the nation required astute leadership and frank conversations with those with the means of production.
For the new Government, there was need to guarantee existing investors that their investments were safe while potential investors had to be persuaded to pour their money into the country.
There was a general aversion to the “socialist” administration and the chilling spectre of possible compulsory acquisition of white owned assets as had been the case in some newly independent African nations.
Many were unsure of the economic trajectory the new Government would take and it was the duty of the new office holders to show leadership and give direction.
As a result, a good number of investment conferences were organised not only to explain the new trajectory the country was taking, but also to market the new nation as a destination of choice for investors.
Fast forward 37 years later, Zimbabwe finds itself in an almost similar situation.
The country is emerging from years of under investment characterised by collapsed infrastructure, a comatose industrial base and semi-collapsed social service infrastructure, among a plethora of other challenges.
The new political dispensation, which ushered in President Emmerson Mnangagwa’s Government late last year, is faced with more or less similar challenges to the ones faced by the first Zimbabwean Government.
While the administration has hit the ground running, going all out to promote the country’s potential as a first-rate investment destination, more still needs to be done.
President Mnangagwa has been at the forefront of an aggressive campaign to send the message that Zimbabwe is open for Business. As highlighted by his attendance at the annual World Economic Forum meeting in Davos, it was reported that he was star attraction as he reiterated that message loud and clear.
Both locally and on the international scene, senior Government officials are headlining investment conferences, where they are selling the open for business mantra.
Only last week, Mines and Mining Development Minister Winston Chitando hosted the who’s who of the global mining industry during the Mining Investment Conference at a Harare hotel.
The extractive industry is expected to be central in mastering economic revival owing to the vast riches under Zimbabwean earth.
Meanwhile in Sandton, South Africa, Deputy Finance Minister Terrence Mukupe was appearing at the Financial Market Indaba while his boss Patrick Chinamasa was on a whirlwind tour across Europe, meeting senior European bureaucrats, including the British Foreign Affairs chief, Boris Johnson.
During this short period and through these investment forums, President Mnangagwa has launched a comprehensive investment handbook while investment pledges valued at more than US$3 billion have been extended.
This week, one of the biggest investment conferences in the country since independence will take place in Harare.
The Zimbabwe Investment Conference convenes on Tuesday in Harare under the theme “Zimbabwe, Towards a proffered Investment Destination”.
The conference is being organised by Oxlink Capita and coordinated by the Office of the President and Cabinet.
Government will have a high powered representation at the conference with six Ministries involved at the highest level.
Ministers Ambassador Simon Khaya Moyo (Energy and Power Development), Supa Mandiwanzira (ICT and Cybercrime), July Moyo (Local Government and national Housing), Mukupe (Deputy Finance and Economic Development), will be complimented by secretary for Tourism and hospitality Dr Thoko Chitepo and Transport and Infrastructure Development secretary Eng George Mlilo.
Organisers of the conference told The Sunday Mail that the respective Ministers are expected to outline the various opportunities available as well as incentives that are being offered under their portfolios to investors.
Discussions will centre on investment opportunities in infrastructure projects across a wide spectrum that includes ICT, energy, water and sanitation, among others.
Also to attend are executives from the Exim Bank of India, the Development Bank of Southern Africa and other financial institutions whose balance sheets have capacity to finance most of the big infrastructure projects in Zimbabwe.
DBSA is behind financing the rehabilitation of the Plumtree-Mutare highway for US$206 million through Infralink, an investment vehicle partnering ZINARA.
With bilateral trade between India and Africa rising to US$75 billion in 2015 and the India EximBank at the centre of facilitating lines of credit for a number of African countries, the importance of the presence of officials from the bank cannot be underscored.
The private sector will also be involved.
The Industry and Commerce Minister, whose ministry is in charge of investment promotion portfolio, told The Sunday Mail that investment conferences such as this one will form the foundation for actual investment into the country.
“I foresee a number of conferences being held in this country as well as abroad,” said Dr Bimha.
“I foresee quite a lot of work in that area because there is a lot of interest with the new dispensation.
“Judging by the number of inquiries we are getting, I see a very bright future for Zimbabwe.
“The President has pronounced reforms that give comfort to the private sector because his first call was that we must grow the economy and that Zimbabwe is open for business.
“That has resulted in a number of inquiries under a short space of time.
“So, we will participate in these events and continue preaching the President’s message”
Zimbabwe Investment Authority chief executive Mr Richard Mbaiwa said potential investors will be looking closely at these conferences in order to scout for investment opportunities.
He said authorities will take advantage and properly articulate the reforms being undertaken to improve the investment environment
“Generally, this is a window of opportunity and serious investors should ride on this wave,” said Mr Mbaiwa.
“Over the last two days, we have had the Mining Investment Conference and we also had a very powerful Germany delegation around.
“We had a delegation from the Germany Business Society on Tuesday and Wednesday and they were looking for opportunities in various areas, including infrastructure, energy, manufacturing and mining.
“The Germany Business Society is a very powerful institution that gives direction to where German money is invested.
“What we are saying is there are many opportunities and there are also serious reforms taking place.
“When we attend these conferences we are telling them that this is an opportune time and there is nothing to wait for.
“Even with elections around the corner there is nothing to wait for because there is a functioning system right now.
“Opportunities are not going to wait for anyone because the early bird catches the worm. We are giving them assurances that their investments are secure and we are reforming as we go.”
Economic analyst Mr Brains Muchemwa said continuous engagement between Government and the investor community will result in a win-win situation.
“Zimbabwe still offers significant discounted opportunities in most sectors of the economy when compared to most mature markets.
“Notwithstanding the abundance of opportunities, policy makers need to attract the right kind of investments that create decent jobs and improve the current account balance.
“And in order to attract such kinds of sustainable long term investments, there is need for continuous engagement with the investment community as well policy consistency.”
“In order to industrialise this economy and gravitate towards being a middle income economy by 2030 as outlined by the President, Zimbabwe needs a strong infrastructure base in order to capitalise on both its competitive and comparative advantages.”
It is clear that Zimbabwe is moving in the right direction and with renewed interests from investors, the country stares a brighter future.
