Harare (New Ziana) – The country attracted US$1.8 billion in investment in 2021, and expects a five percent growth this year, the Zimbabwe Investment and Development Agency (Zida) has said.
China, with 94 projects approved by the agency, dominated the investment flows, followed in distant second by India with 38.
Ironically, inspite of sanctions imposed on Zimbabwe by their countries, British investors came in third with 10 projects, and the US in fifth with six.
The investment, covering all sectors of the economy, came from all continents except South America.
This underlines the success of the government’s engagement and re-engagement policy, the centrepiece of which is development of trade and attraction of foreign investment.
Until now, the country – constricted by Western sanctions, and negative perception – would have been lucky to attract a couple of hundred million dollars a year.
The West imposed sanctions on Zimbabwe to try and force it to relent on its land reform programme, under which it compulsorily acquired excess farmland from white farmers to resettle landless blacks.
Zida said falling inflation, and other incentives from government for investors, should see investment in the country growing by at least five percent this year.
The agency said it was working with government and stakeholders to improve the investment climate, in some cases sector-specific.
“We anticipate at least a five percent increase (in investment figures) due to good inflation figures,” the agency said.
“Zida also advocated for incentives in gold and medicinal cannabis which should see increase in investments in these sectors,” it added.
A number of multi-billion dollar greenfield investment projects are currently underway in the country, particularly in the mining sector, which are not only expected to have positive knock-on effects on the economy, but also testimonial about Zimbabwe’s attractiveness.