The Sunday Mail
Global financial markets leaders have expressed interest to explore available opportunities and invest in Zimbabwe to help boost trade and rebuild the economy.
This came out at the Financial Markets Indaba (FMI) held in Sandton, South Africa, where delegates explored the hidden value opportunities while cautioning the inherent risks associated with investing in Zimbabwe.
The financial market gurus said investors were especially keen to exploit opportunities in mining, manufacturing, infrastructure and value addition.
Part of the discourse focussed on how the new political set up impacts different asset classes, their short to medium view of the economy, the investment opportunities as well as risks.
There was a general positive sentiment from the delegates who said the shift in the country’s administration had brought with it hope for economic recovery as evidenced by Government’s commitment to address corruption, improve the ease of doing business through reforms, re-engagement with the West and the current “Zimbabwe is open for business” theme.
Delegates comprising of business people, both local and foreign, agreed there was a positive change in attitude by public office holders with Cabinet Ministers for instance, spending more time on economic revival as opposed to political rallies.
They said this is a step in the right direction.
Finance and Economic Planning Deputy Minister Terence Mukupe also said Government Ministries have an open door policy and invited constructive criticism and suggestions on how to improve the economy.
Some foreign investors who spoke to The Sunday Mail Business said they are prepared to invest in Zimbabwe if the current positive sentiment is maintained.
Zimbabwean business people based in other countries also indicated they are looking at available opportunities to invest back home.
London based Barings Asset Management director for portfolio strategy, Mr Brian Mangwiro said the country’s financial markets are still small but present huge opportunities.
“There is credible opportunity for growth, I have seen people with keen interest in Zimbabwe, but they want to have a view of where things are going and that interest will translate to reality.
“In my view, if the way things are continues for the next three to five years, there is real optimism in attracting meaningful investment,” he said.
Russian and Turkey based firm, West Properties chairman Mr Ken Sharpe said his firm already had a 10-year business plan ready for rolling out in the country with interest growing following last November’s events.
“We have for long held on to our plan, but we are now ready to move in, our key area of interest is real estate,” said Mr Sharpe.
United States based businessman Mr Hannington Mubaiwa said the impetus is there and it is the role of Zimbabweans to take a leading role in rebuilding the economy.
As such, it is his company’s imperative to play its part towards the country’s economic transformation.
It was also agreed recovery would be anchored on domestic resource mobilisation while exploiting opportunities across value chains.
Emerging small to medium enterprises, which have been referred to as the “new economy”, have reshaped the country’s economic fortunes due to their immense contribution towards the gross domestic product and employment.
Financial Securities managing director Mr Garikai Munema said there is need to look at ways of capacitating the budding businesses that have over the past decade been the hubs of economic activity after big corporations downsized operations while others eventually closed.
“SMEs have great potential and we need to incubate them so that they grow and realise their full potential,” he said.
Due to Zimbabwe’s geographic location in the region, other low hanging fruits identified include the logistics sector.
Infrastructure development, which is still lagging behind, is also another area.
Infrastructure deficiencies have been identified as some of the key impediments to industry growth. They present opportunities for investment.
Event coordinator, Mr Patrick Muzondo said the one-day FMI was designed to help institutional and private investors with an interest in Zimbabwe to connect with credible partners.
“This is arguably the largest platform that connects asset owners, capital allocators and providers.
‘‘This in particular had fruitful deliberations and has been oversubscribed, a sign that businesses are ready and committed to map the way forward for Zimbabwe,” he said.
In its fifth year, this year’s Indaba ran under the theme ‘Beyond the Headlines.’
