The Sunday Mail
THE Zimbabwe Investment Authority (ZIA) believes the country needs to attract foreign direct investment (FDI) that is 10 times more than the current inflows if the country is to successfully reindustrialise.In 2014, FDI inflows topped $545 million, which is 36 percent higher than 2013.But regional peers such as South Africa, Mozambique and Zambia received $5,7 billion, 4,9 billion and $2,4 billion, respectively, during the same period.
Speaking during the International Business Conference at the Zimbabwe international Trade Fair (ZITF) in Bulawayo last week, Dr Chanakira said Zimbabwe is lagging behind in FDI despite the key role it plays in economic growth.
“FDI is one of the key drivers for growth in any economy. Countries like China, South Korea and Malaysia have achieved significant growth on the back of increased levels of FDI.
“Zim-Asset assumes increased FDI and establishment of Special Economic Zones (SEZ) as some of the key drivers that will anchor economic growth. It is therefore critical that the country embraces FDI and the SESs as key drivers of economic growth,” he said.
He added that there was need for local companies to export competitive products to regional and global markets.
Dr Chanakira said the country is not attracting investment as it ought to do because it is not readily accommodative to investments.
“We have a lot of investment opportunities but we are not astute especially when dealing with documentation,” he said.
According to the UNICTAD World Investment Report 2015, global FDI fell 16 percent to $1,23 trillion in 2014.
But inflows of FDI to developing countries rose 2 percent to $681 billion.
FDI flows to Africa remained static at $54 billion.
China became the largest recipient of FDI with $39,5 billion in 2014.Poor infrastructure, negative perception, lack of attractive investment incentives, an over- regulated economy, economic sanctions as well as a poor doing business environment have been some of the key impediments to attracting new investments.
However, Government is currently working on measures to improve the investment climate.
Among some of the key interventions include improving the ease of doing business for both local and foreign investors.And there has been progress.
