ZIA approves $10 billion projects

ZIA approves $10 billion projects
Published: 28 November 2013
THE Zimbabwe Investment Authority (ZIA) has approved projects valued at $10 billion since the economy was dollarised in 2009 until June 2013, figures from the agency revealed.

About 10 000 jobs were created by these investments in a country where unemployment is estimated at 80 percent.

China, the country's all-weather friend, had more investment projects approved than any other country. China's investments stood at $2,25 billion.

ZIA statistics show that in 2009, a total of $1,3 billion was approved. The figure declined to $520,4 million the following year.

In 2011, the value of investment into Zimbabwe increased to $6,6 billion largely due to investor confidence brought about by stability in the economy.

Analysts say potential investors wanted investment security, political stability, respect for property rights and respect for the rule of law.

In 2012, investments worth $929,9 million were approved by ZIA, with $570 million having being approved between January and October this year.

Of the $9,9 billion approved since the economy was formally dollarized, mining accounted for $5,9 billion, more than 50 percent of the total investments approved during the period under review.

Mines Minister, Walter Chidhakwa, said the contribution of mining to Zimbabwe's Gross Domestic Product (GDP) had grown from an average of 10, 2 percent in the 1990s to 19,9 percent from 2009 to 2013, overtaking agriculture.

Mining contributed an estimated 16 percent to GDP in 2012 from four percent in 2008. The sector also continued to lead in export earnings which rose to $2 billion in 2012, from $1,8 billion in 2011.

This was driven mainly by increased diamond, platinum and gold production. This was also supported by favourable international market prices.

The mining sector accounted for over 60 percent of total exports from 2009 to date and is projected to grow by 17,1 percent this year.

Agriculture accounted for $470,9 million of the investments during the period under review.

The manufacturing sector, whose capacity utilisation is currently at 39 percent, accounted for $953,7 million of total investment.

The service sector had investment worth $220 million approved while the tourism sector had $1,6 trillion worth of investment approved.

The tourism sector is projected to rebound by about seven percent annually over the next 10 years.

The sector contributed 13 percent to the country's GDP last year and is now expected to contribute more on the back of revived interest by international tourists.

Zimbabwe's foreign direct investment in-flows in 2012 were at $400 million, representing 17,7 percent of gross fixed capital formation.

According to figures from the United Nations Conference on Trade and Development World Investment Report launched last week, Zimbabwe's inflows marginally increased from $387 million in 2011.

Outward flows were at $46 million, from 14 million in 2011.

Investment in Zimbabwe slowed down as a result of barriers to FDI imposed by government, such as the controversial indigenisation programme.

Zimbabwe desperately needs investment in order to attain meaningful economic growth that creates employment.
- fingaz
Tags: ZIA,


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