Enacy Mapakame recently in SANDTON, South Africa
South African-based Diaspora Infrastructure Development Group (DIDG) is this year targeting to roll out a US$500 million water infrastructure project for Harare as part of efforts to enhance water delivery for both domestic and industrial consumption.
The project will also entail rehabilitation of the existing water infrastructure.
In an interview with The Sunday Mail Business at the Financial Markets Indaba held in Sandton South Africa last week, DIDG chairman Mr Donovan Chimhandamba said a huge infrastructure backlog in the country provides investment opportunities.
Infrastructure has been identified as one of the key enablers of economic growth in the country, according to the economic blue print – Zim Asset.
The proposed water infrastructure project will look at the entire value chain, from bulk water resource development to metering.
“This year we are also looking at water infrastructure for City of Harare. This should be in the region of US$300 million to US$500 million, depending on how we structure the project,” he said.
Feasibility studies for the water project are already underway and are expected to be complete within the next four to five months.
According to the Confederation of Zimbabwe Industries (CZI), erratic utilities supplies have been cited as one of the recurring impediments to industry competitiveness, with firms incurring overheads due to poor water and electricity supplies. Mr Chimhandamba said his organisation is focusing on water infrastructure development due to its strategic role in both domestic consumption and industrial processes.
“When building a country, you start with infrastructure, once you have the transport infrastructure, water and electricity then industrialisation can easily take place and you can attract investment.
“Once we finish our feasibility studies, we will conclude discussions with the various partners that we are working with.
“I think at that period we will be able to see concretely the course of the project and all the finer details,” he said.
Mr Chimhandamba added that his organisation, which comprise of Zimbabweans in the diaspora, was encouraged by the current mindset change and positive sentiment prevailing in the country.
He said although there are still some challenges in the country, this is the best time to boost investment as the current political dispensation is showing commitment to improve the business environment and rebuild the economy.
“Nobody will ring the bell for investors to come in, this is the moment and we have to seize it now,” he said.
The DIDG, in partnership with South Africa’s Transnet, are already bankrolling the recapitalisation of the National Railways of Zimbabwe through a $400 million facility. Discussions at the FMI, hosted by Thomson Reuters and Emergent Capital Management, showed that more institutional investors are keen in Zimbabwe’s infrastructure development.