Investor interest in Zimbabwe is still high

Investor interest in Zimbabwe is still high
Published: 25 February 2018
Mines and Mining Development Minister Winston Chitando told The Sunday Mail Business that a stable operating environment has provided better opportunities for planning and execution of mining projects.

"Investor interest is still high as evidenced by the number of business enquiries for investment opportunities.

"Supplier-miner relations have improved considerably with some credit being availed to producers," he said.

"The country has immense potential and is under-explored. Zimbabwe has the second largest known deposits of platinum, quality coal, gold, chrome, and diamonds," Minister Chitando said.

He said there are efforts to improve the ease of doing business and render the mining sector in Zimbabwe internationally competitive.

This comes at a time when President Mnangagwa is spearheading engagements with the international community to improve relations.

Such improved relations act as a base for attracting investment into the economy.

He said efforts by the Government are being complimented at sectorial level.

He said given its abundant mineral resources, the mining sector has massive potential to contribute to the much-needed sustainable economic growth.

The country is blessed with a large amount of minerals, making it an investor's paradise.

The country has more than 60 minerals and research shows that Zimbabwe has six out of 10 of the world's most valuable minerals.

This massive resource base creates lucrative opportunities for investors in exploration, mining and beneficiation.

The new Government has raised hopes for investors in the mining sector due to a number of pro-business policies it has crafted.

Given the open door policy and realignment of the Indigenisation and Economic Empowerment Policy, many investors have realised opportunities in the mining sector.

The new indigenisation policy now allows investors to hold more than 49 percent stake in mining most minerals, except for diamonds and platinum – where the 51/ 49 percent empowerment policy still applies.

To check business sentiment about the prospects of the mining sector and economy in general in the next 12 months, Minister Chitando said the mining industry's representatives, Chamber of Mines of Zimbabwe (CoMZ), uses the mining business confidence index (MBCI).

The index is interpreted on a scale of -100 to +100, with the lowest score representing the least level of confidence and the biggest score representing the highest level of confidence.

The perception on political risk has improved in view of the new Government. Most investors are expressing confidence on the new political dispensation.

Economist Mr Luckson Zembe said: "President Mnangagwa's has raised hopes not only in the mining sector but all sectors of the economy due to his proactive approach to business as he continues to assure the investors of safety of their property and investment.

"Such approach to business will certainly raise confidence in the economy as a whole."

Given the conditions laid down, the country's mining sector is likely to surpass the set target of US$3,5 billion mining export earnings this year.

On various occasions, President Mnangagwa has said the country is open to investment and is willing to do all it takes to improve the economy.
- zimpapers
Tags: Chitando,

Comments

Latest News

Latest Published Reports

Latest jobs