Zim targets billion dollar investments in 2015 - CNBC Africa

Zim targets billion dollar investments in 2015

Southern Africa

by Trust Matsilele 0

Zimbabwe's finance minister, Patrick Chinamasa has been battling to keep the ailing economy affloat. PHOTO: Zimbabwe Elections

This figure will double the 2014 target.

James Wadi, a group economist at BancABC told CNBC Africa that the target would be a significant improvement considering where the country is coming from.

“Two billion does not seem like a lot but when you look at where we are coming from with foreign direct inflows (FDIs) of about 500 million per year, this amount would be a definite improvement,” noted Wadi.

“As a country, we have had significant challenges with trying to attract FDI flows because of the policy inconsistencies especially the indigenisation policy.”

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Wadi posited that, although concrete actions were to be seen, there has been an encouraging message coming from the government with inclination towards policy flexibility.

“Government is trying to make significant amendments to the indigenisation policy to make the country attractive for foreign investors,” added Wadi.

“One of the messages that is coming from the government is its commitment to work with the international community. The country’s engagement with the International Monetary Fund (IMF) has been progressing well and it looks like the government wants to maintain that relationship.”


Wadi also explained that there was need for Harare administration to be more consistent especially with policies that have bearing towards investor confidence.

(READ MORE: Slight improvement in Zimbabwe's economy)

“Going forward, the government might dilute the indigenisation requirements in sectors like manufacturing that has suffered immensely over the years and hasn’t responded well to the dollarised environment,” he said.

The BancABC economist said the country was likely to see more tightening on the liquidity space.

“Liquidity has been a challenge over a couple of months now even after tobacco sales that previously helped in bringing the much needed foreign money.”  

Wadi noted that one of the focus areas as Zimbabwe move forward would be attention on growth enablers like investment in the energy and other vital infrastructural projects.