The Sunday Mail
Sunday Mail Reporters
BRITAIN has implored its companies to take up investment opportunities in Zimbabwe saying Government has developed investor-friendly policies, a striking departure from its rhetoric that the country was an unsafe destination for capital.
Relations between London and Harare have been frosty since 2000 when Government redistributed land to benefit formerly marginalised black people, resulting in Britain and its allies imposing sanctions on Zimbabwe.
But as multinational conglomerates and governments from the Brics (Brazil, Russia, India, China and South Africa) flock to Zimbabwe to invest billions of dollars, the UK and the United States are now following suit.
Companies from Brics have of late invested in mining, infrastructure development, agriculture and telecommunications.
The British Embassy in Harare recently released a report titled “Zimbabwe: Commercial Opportunities (2015)” detailing investment opportunities for British firms.
The report endorsed Government’s “more investor friendly investment policies” and points to potential for high returns.
At the same time, US investors have openly blasted their government for its rigid stance on Zimbabwe.
And the Corporate Council of Africa, a body that promotes business and investment between the US and African countries, sent representatives to Zimbabwe last month, and last week they told The Sunday Mail that indigenisation laws did not hinder investment.
The British Embassy says its report has generated many enquiries from companies looking to invest in the energy, finance and ICT sectors.
Reads the report in part, “Despite continued mixed signals, there are encouraging signs that the Government is softening its stance on indigenisation and developing more investor friendly policies.
“A number of international firms, particularly but not only from Brics countries, have begun to make serious investment into Zimbabwe given high return opportunities.
“A growing number of UK companies including Avanti Communications, Info Tech Financial Technologies and British Environment Resource Management have won tenders in Zimbabwe; Atlas Mara Co-Nvest has made significant investment in 2014.
“UK firms are often well-placed to win business, given historic links and a compatible business culture. As well as rich resources and strategic location, Zimbabwe has a highly literate workforce, with few industrial relations problems.”
The Embassy said the report in response “to calls from UK firms for more information on the business landscape and guidance on investing in Zimbabwe”.
“We have seen renewed interest from British firms in various sectors.”
Enquiries about potential investment opportunities are being handled through the embassy’s resident prosperity officer, Mr David Mupamhadzi.
Mr Philip De Leon, who led a US delegation to Zimbabwe, told this newspaper that indigenisation laws did not deter investment.
“This said, the 51 percent rule exists in other countries and we can work well with it. For instance our company AGCO has a joint venture in Algeria and the two state-owned organisations we have partnered with own 51 percent and we still have a very fruitful partnership, having manufactured 1 000 Massey Ferguson tractors in 2013 and 2 000 in 2014 for the Algerian market,” he said.
Economic Planning Minister Ambassador Simon Khaya Moyo said apart from Special Economic Zones, Government would also launch a one-stop shop at the Zimbabwe Investment Authority before year-end to facilitate expeditious processing of investment applications.
“We want a situation where applications are processed in two to four days,” he said.
FDI into Zimbabwe last year rose by over 36 percent to around U$540 million even as inflows into other African countries fell by 16 percent on average
The country has hosted 30 delegations of potential investors in the first half of 2015.
Last year, German-American investment strategist Dr Mark Mobius, who manages a U$47 billion portfolio, said Zimbabwe had opportunities for huge financial returns.
And Harvard University’s Professor Ricardo Hausman has said Zimbabwe has potential to be Africa’s fastest-growing economy by 2020, and the sixth fastest in the world.
