info.afrindex.com
China-Africa Trade Information Service
info.afrindex.com
China-Africa Trade Information Service
Photo from Internet
The Zimbabwe Investment Authority (ZIA) has confirmed that there are too many investment projects come into being in the first quarter of 2018, which make a huge interest in Zimbabwe.
This figure is significantly higher than the $150 million recorded in April 2017. Over 62 investment licences were also issued from January to April. Even though most of the deals are still far from being implemented, there is no doubt that the change of leadership in government generated some positive interest from international investors on Zimbabwe’s economic prospects.
There is a chance that net FDI inflows into the country can surpass $500 million for the first time since 2014, which may show a significant recovery for the country. The clear take out for government is that leadership, policy change on governance and confidence are key in attracting investment into our economy.
The government recently made amendments to the Indigenisation and Empowerment Act that had been a thorn to investment in the economy. The amendments were made through the Finance Act passed on March 14 2018 and published through the Extraordinary Government Gazette.
The Act is now limited to the extraction of diamond and platinum with compulsory local ownership of 51%. However, the government has pointed out that exceptions will be provided for if investors justify exemption from the Act and that compliance is not enforced on project commencement.
The government can give written permission to a business to comply with the Act over a period of time. The government also engaged on a blitz of various international destinations such as EU, China and Britain in search of investment.
