The Zimbabwean government has increased efforts to unlock the country's investment potential and attract foreign direct investment (FDI) by targeting South African investors at a conference in Johannesburg.
Zimbabwe's minister of economic planning and investment promotion,Dr Tapiwa Mashakada, said: "To date the Zimbabwe Investment Authority is sitting on approved investment projects worth U.S.$13 billion since 2009, of which 80 percent are in mining."
Mashakada, who is a member of the MDC-T and part of the government of national unity, said South Africa continues to be Zimbabwe's main trading partner, accounting for more than 60 percent of the country's international trade volumes.
Official reports from the investment authority also show that South Africa contributed close to 55 percent of the FDI approvals by December 2012. South African companies are visible in various local projects and the country has emerged as a global gateway for FDI flows to Africa.
The minister pointed out that the major obstacle in trying to woo foreign direct investment for the country is the Empowerment Act and "unless that law is reviewed Zimbabwe will lag behind in terms of investments and economic development".
Professor Anthony Black from the University of Cape Town's School of Economics said that he was worried about the investment climate in Zimbabwe, which is improving but remains weak. Black recommended that the country needs a "very clear and transparent economic policy, democratic elections, ensure that infrastructure is working properly and property rights need to be secure".
Black cited countries with high growth rates such as Nigeria, Angola, Tanzania, Ghana and Botswana as more favourable in terms of investment.
He went on to say that Africa is attracting "huge foreign direct investment but Zimbabwe is not part of it" and "the indigenisation law is not attractive". The law forces companies to sell a majority stake in their businesses to indigenous people.
Dr Mashakada blamed Zanu-PF ministers for putting "spanners in the works" when his ministry tried to amend the Zimbabwe Investment Authority Act of 1996 "to make sure that provisions of the Indigenization Act are suspended and also to introduce clauses that protect investors".
Nonetheless, Mashakada vowed that his ministry would continue to hold road shows in other countries to promote Zimbabwe "because it is a rich country offering diverse opportunities". He said that in the right environment Zimbabwe would become the "leading recipient of foreign direct investment".
