Uncategorized

Govt approves US$7bn investments

26 Apr, 2019 - 11:04 0 Views
Govt approves US$7bn investments President Mnangagwa

eBusiness Weekly

Golden Sibanda
Zimbabwe has approved US$7 billion in investment proposals since the establishment of an interim committee to administer a One-Stop Investment Service Centre (OSISC) in August last year while legislation to create a substantive investments authority is being finalised.

The Office of the President and Cabinet (OPC) said the interim committee had achieved significant milestones since being constituted, chief among them being the approval and recommending of investment proposals worth US$7 billion.

The OPC did not indicate the specific sectors in which investment proposals were made but indications from the investments committee are that most of the proposals were public-private partnerships.

This comes as Government has covered significant ground towards promulgation of a legislation that will guide the establishment of a one-stop shop investment approval authority. The piece of legislation is now only awaiting presidential assent.

Foreign investment inflows into Zimbabwe stood at US$387 million in 2011 stagnated at US$400 in 2012 and 2013, reached an all-time high of $545 million in 2014 before declining to US$421 million and US$319 million in 2015 and 2016, respectively.

“It (OSISC) has to date processed and recommended projects for approval worth more than $7 billions. OSISC has also among other things championed the production of the ZIDA Bill, which has been gazetted for debate by the legislature.”

The country had used the Zimbabwe Investment Authority to facilitate approval of investments, but registered little success with the processes remainin cumbersome and time consuming
due to conflicting legislation that bear on businesses.

While the country has gone through a tumultuous economic period over the decade to 2008, which was briefly interrupted by a period of relative stability between 2009 and 2016 after switching to a US dollar dominated currency system, it retains enormous potential economically due to its highly adaptive skills base and natural endowments that include gold and diamonds as well as tobacco.

To realise this potential, the Government of Zimbabwe set up an interim committee (OSISC) in August 2018 to serve as a single point of contact for all investors wishing to invest in Zimbabwe.

OSISC consists of 42 technical expects seconded from various Government departments and agencies engaged in investments, as Government upped the ante in its efforts to increase investment and turnaround the wobbly domestic economy.

Finance and Economic Development Minister Mthuli Ncube projected in his 2019 Budget that the economy will grow by 3,1 percent this year largely driven by mining and agriculture sectors, which anchor the economy.

He is also on record as saying the country will join the six fastest growing economies in the world over the next two years. To that end, creating
avenues for inflows of external and local capital is key.

The OPC said the interim committee OSISC has also among other things championed the production of the Zimbabwe Investment Development Authority (ZIDA) Bill, which has already been gazetted for debate by the legislature. The Bill entails the dissolution and reconfiguration of such agencies as the Zimbabwe Investment Authority, Joint Venture Unit (JVU) and Special Economic Zones Authority (ZIMSEZA).

The proposed ZIDA Act will therefore repeal the existing statutes establishing the above entities and create a one stop investment promotion and facilitation centre under which all investors will be provided with high quality service under one roof.

The establishment of ZIDA is part of far reaching reforms the Government is undertaking in an effort to attract the foreign direct investment needed to rebuild an economy battered by years of poor policies, hyperinflation and western sanctions.

In an attempt to enhance the ease of doing business reforms, Government is undertaking widespread reforms within its Integrated Results Based Management Framework whose underlying objective is to create a business friendly environment.

The doing business reforms will also cover a review of legislation, regulations, procedures, business-related costs, turn-around time as well as transactional and administrative bottlenecks that affect existing and prospective businesses in Zimbabwe.

Specifically, the reforms cover 10 main areas of business regulation that constitute or affect a business and these are; starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors; paying taxes; trading across borders, enforcing contracts and resolving insolvency.

The ultimate aim of the doing business reform process is to mobilise local and foreign investors in line with President Mnangagwa’s mantra that “Zimbabwe is Open for Business”.

Part of the broad dimension of the business reforms entails OPC’s role in spearheading state enterprises and corporate governance reforms with a view to enhancing their efficiency and effectiveness in service delivery and contribution to economic growth.

While implementing reforms emphasis will be on strengthening good corporate governance practices in state enterprises through the operationalisation of the Public Entities Corporate Governance Act.

As the investment climate in Zimbabwe continues to improve, the Southern African country has received billions of US dollars worth of investment commitments since President Mnangagwa rose to power in November 2017.

Since his inauguration the President made a commitment to overhaul the country’s laws and regulations that bear on business, the policy framework and doing business environment as well as focus more on rebuilding the economy than on politics.

 

Share This:

Sponsored Links

Survey


We value your opinion! Take a moment to complete our survey

This will close in 20 seconds