Emmerson Njanjamangezi, Group Features Editor 
ZIMBABWE Investment Development Agency (Zida) recently signed a MOU with Singapore Cooperation Enterprise (SCE) for the cross pollination of ideas to develop special economic zones (SEZs) and other investment promotion initiatives in the country. The Asian nation ranks among the top countries on the World Bank Ease of Doing Business index and is considered a global prime investment destination. The Financial Gazette Deputy News Editor Emmerson Njanjamangezi (EN) caught up with the Zida chief executive (CE) Douglas Munatsi (DM) and spoke about the Asian country’s model of economic development through private investment promotion. Below are excerpts from the interview:
EN: Zimbabwe’s economic prospects are getting brighter each day. Growth projections for next year are seen at around 5,3 percent. Do you see the economic resurgence attracting further investments in the country?
DM: Definitely! The economic growth trajectory being experienced across most sectors is a positive indicator with regards to luring investors into the country. Behaviour patterns of investors are influenced by patterns that we are currently experiencing combined with other key variables such as intellectual property rights, repatriation of funds that are clearly outlined in the Zida Act.
The renewed interest in investing in Zimbabwe is very encouraging and we are happy to be riding on this wave of a positive economic outlook for the country.
Doug Munatsi
EN: With regards to the investment opportunities, what does Zimbabwe offer?
DM: Zimbabwe offers an array of lucrative and profitable investment opportunities in different sectors such as infrastructure development, value addition, manufacturing, mining, ICTs and agriculture.
There is also medicinal cannabis which is proving to be a huge foreign currency earner.
We also offer long-term contracts between a private party and a government entity for providing a public asset or service, in which the private party bears significant risk and management responsibility, and remuneration is linked to performance in the form of Public Private Partnerships.
We are also offering Special Economic Zones which are at different stages of being developed, with the most topical one at the moment being the Masuwe SEZ in Victoria Falls. These attract investors due to the attractive special conditions that we offer to investors that express interest in operating within them.
EN: Any update on the development of SEZs in Zimbabwe?
DM: We are still at inception stages on almost all of our zones, SEZs require bulk utility infrastructure and we are currently working with other government entities for the provision of those facilities.
I am happy to state that the collaboration has been encouraging and soon there will be movement in our SEZs. Our SEZs are an ongoing reform for us. We see the potential we should, and we’re working hard to make it a reality.
We still have a lot to learn as we grow and we have chosen to grow in an organic and natural manner. We believe this department will bring strong growth and beneficiation to our country.
EN: Zida recently signed an MOU with Singapore Cooperation Enterprise (SCE), what prompted the choice of Singapore’s trade investment body?
DM: We are benchmarking ourselves with the best in the world. Singapore moved from being a Third World country to a well-developed country in a very short space of time and surely, we have a lot to learn from their transformational journey.
Further, they also rank among the top countries on the World Bank Ease of Doing Business, an Index which we value as a key indicator of our achievements.
They have developed successful SEZs and we will be cooperating immensely in this area as we are in the process of developing ours as I alluded to earlier. We will also tap from their knowledge on investment promotions and capacity building. It’s an exciting partnership for us.
The first step in learning is acquiring the ability to listen. As mentioned before, Singapore has mastered the ability to learn and grow exponentially. Zimbabwe need not reinvent the wheel, but rather acquire it. Singapore has shown a willingness and ability to assist us as a developing nation.
EN: The Zida One Stop Investment Service Centre (OSISC) has drawn praise especially from the mining sector. Are there more activities lined up to further improve on this front?
DM: The ease of doing business is ongoing and we will continue to refine our systems until we get to a point of optimum efficiency. We are looking at many facets of our economy where we can gain a social and economic dividend.
We need to reach a point where we have a 360 degree view of our environment. We have embarked on an exercise to collate as much data on our economy, priority projects and potential growth in our country.
OSISC is the heartbeat of Zida and provides a seamless experience that makes investing in our country an enjoyable process.
Of course, more activities to improve this area are lined up and we will be announcing them as we go. We prefer a situation where our efforts are seen through movements on the ease of doing business index.
EN: What is Zida doing to actively promote investments in power generation, especially renewable power generation?
DM: The world is embracing renewable energy and we are hoping to benefit from the growth in this industry. We have a sustainable value proposition on this front, we recently licensed a Singaporean company AE Power to set up a 200MW solar farm in the Matabeleland region and that is just a tip of the iceberg of the investment that we are bringing into the country.
Zimbabwe has abundant resources of hydro, solar and wind energy. We wish to harness these into economically viable projects that will not only have an economic return, but also be a social benefit to the nation. In line with the National Development Strategy (NDS1) we envisage a situation where Zimbabwe will have surplus power to export into the region.
EN: There has been talk of stringent rules for repatriation of funds by investors from Zimbabwe. Is this something that Zida is looking to push for policy review?
DM: The Zida Act is very clear on this issue, where is this talk happening as this issue is clearly stipulated by the law that we administer? The Act allows investors to repatriate their profits out of Zimbabwe subject to paying tax obligations.
The transfer of funds may be done freely in any convertible currency that is either foreign currency or any other currency preferred by the investor. Proceeds from sale of assets, dividends, patent fees and royalties from investments can now be taken out of Zimbabwe without question.
This is a very pertinent and important issue. We have historic issues which, as a nation, we are willing to address head on. The Reserve Bank of Zimbabwe has made it very clear that the repatriation of funds and payment of dividends is a priority. The Zida Act also addresses the protection of investments on a non-partisan basis. This gives comfort to investors, both local and international, that Zimbabwe is truly open for business.
