'Zim prospects bright,' says ZIA boss

Zimbabwe Investment Authority CEO, Richard Mbaiwa

Published: 21 November 2013

THE Zimbabwe Investment Authority (ZIA) this month launches the Zimbabwe Investor Awards, which will recognise and honour companies that have contributed to the development of the economy.

In this interview with The Financial Gazette (FG)'s Shame Makoshori, the ZIA CEO, Richard Mbaiwa (RM) says prospects for Zimbabwe are bright, but a lot of work is still required to consolidate the country's competitive advantage on the investment front.

FG: May you give us an overview of investment trends?

RM: We are looking at reinvestment and expansion by existing multinational companies. We have to encourage them to invest more. They already know the conditions in Zimbabwe so the fear factor, fear of the unknown, is not there. Companies that have been here are comfortable. We have several multinational companies in Zimbabwe. We are also working on attracting new investment.

In the mining sector we talk of Zimplats, Unki and RioZim, which are generally localised. In the manufacturing we have Unilever, Nestle, Delta BAT, and more local ones like Innscor. We also have companies like SAVANNA which are doing quite well. We need to have more of these because their investments are long term and they create a lot of jobs. We also want to see more and more SMEs coming on the ground, as long as they are formalised.

FG: What are the indications?

RM: The indications are positive.

Most multinationals are positive about the prospects in Zimbabwe.

But one of the things that they always bring up is about policy clarity and inconsistencies, such as our empowerment laws and on investment incentives. We need to have clarity in our policies.

We also need to improve on our business climate. We are improving but maybe it is the rate that needs to improve. There is need for work on perception management. Some of the concerns by investors are real, such as getting access to electricity and construction permits, these areas are difficult. But we have improved in some of the things. It is not a game where you say you have arrived.

FG: I see big investors are choosing destinations like Mozambique and Zambia at the expense of Zimbabwe. What could be the reasons?

RM: In 1998, we were on top of most countries in the region in terms of FDI (Foreign Direct Investment).

FDI flowing in countries like Mozambique was about half of what Zimbabwe was generating. Then we went into a period of hyperinflation, which was not conducive for investment. Then from 2009, we saw a movement from $30 million to about $400 million (FDI per annum). We have had a 10 fold increase in about seven years. The trend is good but it is still below what we expect. In Zambia, they have privatised their mining industry. It was a way to bring FDI.

FG: Post elections how have been the investors reacting?

RM: This has been a watershed year from a political perspective.

We had successful constitutional reforms, and we held successful elections. A new government is in place for the next ive years. There is going to be stability and predictability. But critical will be our ability to attract investment in the manufacturing sector and the agro industry. We will get our turnaround from that area. Zimbabwe is capable of producing consumer goods and textiles for export. This creates jobs.

FG: Tell us about the Zimbabwe Investor Awards.

RM: This concept has not been done here in Zimbabwe. In other sectors, such as business chambers, they give awards such as the businessman of the year. We felt that investment as a sector that is expected to contribute to the economy, we need to recognise investors whether they are foreign or local and whether they have been here for many years, or for a short period.

We have a number of categories such as the industry awards, the lifetime investor award, the green business award and the investor of the year award. We want to make it an annual event where we recognise not only individuals but companies that have contributed to the economy. The investor awards are not just about dollar value performance of an investor's portfolio - rather it is also about other key factors that contribute to each individual investor's success such as the strategic value of the Zimbabwean economy, job creation, supply chain development, exports, import substitution and environmental sustainability.

So this is a tool to put investment issues on the map.

We want to motivate and encourage those that are here to reinvest and encourage additional FDI.

Nominations are closing this Friday. Thereafter, adjudication will start.

The climax will be on November 26 when winners get their trophies. We are encouraging investors, government department, embassies, NGOs and business associations to be part of this event.
- The Financial Gazette

Tags: ZIA,