Reforms charm private sector investors

The various reforms implemented by the Second Republic have brought favourable regulations that guarantee safety of investments and good returns, a development that is helping the country to achieve its “ambitious” but “achievable” economic and development goals, President Mnangagwa said yesterday.

He said his administration was reforming the doing business environment with a view to making Zimbabwe attractive to investors and drive the attainment of an upper middle income society by 2030.

Addressing delegates at the inaugural Zimbabwe Annual Investor Forum in Harare yesterday, President Mnangagwa said the Government had rolled out robust and responsive trade and investment policy strategies that have resulted in economic recovery, and setting it on a path to long-term growth.

“The progress made under the Second Republic is there for all to see. My Government stands ready to work with you as investors and partners in the private sector to achieve our country’s ambitious and yet achievable goals,” said the President.

“Our cross-cutting reforms have, to date, enhanced the investment environment and seen greater participation of the private sector.”

Further, President Mnangagwa said economic management was continually being strengthened while better public financial management and performance of State-owned enterprises was being vigorously pursued.

Key reforms had been designed to achieve macro-economic stability, improve the business operating environment and ensure the structures of local industries are internationally competitive.

Said the President: “These have seen us recording remarkable milestones as the economy remains on an upward growth trajectory, with a 4,6 percent economic growth projection for 2022.

“This forum is, therefore, pivotal and timeous as it interrogates various ways to scale up sustainable long-term financing and investment,” said President Mnangagwa.

The one-day investment forum, held under the theme “Sustainable long-term investments options”, was targeted at policymakers, parastatal executives, development finance institutions, financial service providers and insurance firms, among others.

The forum also interrogated issues around financial literacy levels, public utilities investment options as well as improving the participation of individuals on local and world investment markets.

President Mnangagwa noted that under the “Zimbabwe is open for business” mantra, Zimbabwe was already primed and ready to receive foreign and domestic investment.

He said all investments would be secure, in a stable operating environment supported by policy certainty and regulatory safeguards.

The President commended China’s investment philosophy towards Zimbabwe and said Harare remained grateful for the consistent support, partnerships and investment from Beijing, which are having far-reaching impact across all economic sectors.

President Mnangagwa noted that as Zimbabwe develops and modernises, additional quality rural and urban infrastructure as well as contemporary social services remain a priority.

In this vein, he said the Government has made deliberate policy decisions towards the construction and reconstruction of national infrastructure.

“The 2022 National Budget gives impetus to the Government’s commitment to infrastructural development as a critical enabler to national competitiveness and economic growth. Earlier in 2020, my Government launched the 2020 Infrastructure Investment Plan, which provides a roadmap towards infrastructure recovery.

“The plan has ensured that public assets are restored and modernised for sustained and inclusive national economic growth. To continue delivering this, public-private synergies remain imperative.

“Financial institutions, local and foreign investors are, therefore, invited to scale-up their investments and partnerships to profitably provide solutions to Zimbabwe’s infrastructure gaps. Government is building modern roads, airports and rail systems to connect our people, foster smooth flow of trade and increase regional integration and interconnectivity,” said President Mnangagwa.

The infrastructural development projects that the Government has embarked on, are expected to further position Zimbabwe as a logistics hub in Southern Africa. President Mnangagwa said the ongoing housing reform agenda also provides opportunities for the private sector to participate in infrastructural development projects and the Government commends efforts by financial institutions and authentic private property developers who have taken the initiative to increase investments in real estate.

“As Government, we are keen to see development of not only luxury housing units, but also entry-level housing schemes for the majority of our people, in both urban and rural areas. Additionally, investments in industrial infrastructure and factory shells must be considered more favourably, more so in the context of our rural industrialisation drive and devolution agenda.

“Through innovations centred on Public-Private Partnerships (PPPs), private sector players are called upon to come up with bankable and feasible projects to harness these opportunities,” said President Mnangagwa.

Long-term benefits of all the policies are invaluable to sustainable economic growth and a higher quality of life that leaves no-one and no place behind towards an upper middle income society by 2030.

On the energy front, the President said in the last four years, the Government had undertaken extensive transformation of the sector and the objective was not only to realise energy self-sufficiency, but to also ensure Zimbabwe’s power generation, transmission and distribution capacity was congruent with the growth and expansion of the industrial base.

“Independent Power Producers are welcome to complement our efforts which include the Hwange Unit 7 and 8 Expansion Project. Furthermore, Zimbabwe is keen to increase its footprint in green energy solutions and the realisation of Sustainable Development Goal number 7 for affordable and clean energy.

“Independent Power Producers are, thus, invited to explore the prospects in more hydro and solar energy projects. These can leverage on the many water bodies in the country, both in existence as well as those under construction.

“Based on the above and other prospects, investment commitments continue to be made, plants are being built, jobs are being created, and production is underway. As investors come on board, don’t be left behind,” he said.

To date, the Second Republic’s policies were continually expanding domestic manufacturing, and production capabilities through an enhanced human capital base, said the President.

He said this has seen the support for robust and responsive education and training, anchored by a strong science, innovation, technology and engineering ecosystem.

“However, in my view, more deliberate ‘out of the box’ investments by the private sector should be directed to accelerate our country’s industrialisation and modernisation potential. These include ensuring that exporting firms partner and strengthen the country’s SMEs and start-ups by our young entrepreneurs, to enhance their ability to manufacture for Zimbabwe and global value chains,” said President Mnangagwa.-herald.cl.zw