Chinese investors pledge US$2,79 billion

THE Zimbabwe Investment and Development Agency (Zida) attracted 121 Chinese investors with a combined estimated investment value of US$2,79 billion in the year to September with the projected investments mainly from mining, energy and manufacturing sectors.

In a recent third-quarter report, figures from the investment agency indicate that in the corresponding period last year, 41 Chinese investors were licensed with a projected investment value of US$271 million.

“During the year to September 2023 the Agency managed to draw investors from 38 countries whilst in 2022, investors were drawn from 27 countries. During both periods investors from China were the most by number and investment value with mining being their most preferred sector followed by the manufacturing sector.”

According to the report, in terms of the value of projects, one licence was issued in the energy sector worth US$2,3 billion followed by US$371 million in the mining sector from 70 new licences.

In the manufacturing sector, 31 licences worth US$96 million were issued.

The report notes that the projected investment value of five licensed UAE investors was $498.49 million. The investments were in the energy, manufacturing, construction and mining sectors.

Zida licensed 17 investors with investments worth US$10,95m from India, US$4m from Canada, US$3,8m from South Africa and two Pakistani investors with an estimated investment value of US$ 1,7m.

Zida has been working on improving the investment climate in Zimbabwe in a bid to make the country an easier place to do business. This year, Zida cut the time needed to register new businesses from 20 to seven days.

The streamlining of time required to register a business, under the One Stop Investment Services Centre (OSISC), is part of ongoing efforts to make it more flexible for those willing to start enterprises in the country.

One of the priorities of the Government is to improve the ease of doing business, or rather, create a more favourable operating business environment, including obtaining permits and licences, dealing with taxes, protecting investors, and other regulatory aspects.

It is an important indicator of a country’s business environment and critical to make the country attractive to investors. The Government has continuously been on a drive to improve the ease of doing business to stimulate economic growth and attract more investment into the country.

Recently, the agency opened a Southern office in Bulawayo, a clear demonstration of the Government’s commitment to creating a more conducive investment environment, all across the country.

The new office is also expected to play a vital role in attracting and supporting investment into Bulawayo Metropolitan Province, Matabeleland North and South Province, Masvingo, and Midlands.

The broader vision is to have offices being opened in strategic locations across the country to augment what is already available.

Meanwhile, according to the report, Zida said it has finalised proposed regulations for Special Economic Zones (SEZs) and General Investments (GIs) meant to provide clarity on the agency’s investment licensing processes and fees it charges.

The proposed regulations are a significant step forward in Zida’s efforts to streamline the investment licensing process and make Zimbabwe a more attractive investment destination.

The proposed regulations are also in line with Zida’s mandate to promote, facilitate and protect investments into the country.

“Zida continued to prioritise the promulgation of the Special Economic Zones regulation and General Investments regulations, which will provide clarity and the agency’s investment licensing processes and fees it charges,” Zida chief executive Mr Tafadzwa Chinamo said in their quarter report for 2023.

“The regulations have been finalised and submitted to the Ministry of Finance, Economic Development and Investment Promotion.”

Once they are approved, they will come into effect and will provide much-needed clarity on Zida’s investment licensing process and fees.

The finalisation of the proposed regulations is a positive development for businesses that are interested in investing in Zimbabwe.

The proposed regulations will make it easier, faster, and more transparent for businesses to invest in the country.-chronicle