THE Zimbabwe Investment and Development Agency (Zida) says foreign direct investment (FDI) slowed in August as the country had its general elections, but maintains that the US$4 billion annual target is still attainable.
Since the turn of the millennium, the country has struggled to attract significant FDI.
“There was a slowdown. I think investors, you know, just take a back seat normally when elections are being done, as generally there will be a slowdown of things, but with the prevailing peace and the doomsday that maybe some investors had in mind, did not happen,” Zida chief executive, Tafadzwa Chinamo, told The Financial Gazette last week on the sidelines of the launch of its mining claims investors matchmaking platform Harare.
“The trend, in my view, will make up for the slowness that took place in August. So, we are already ahead of our targets by half a year, so our target was surpassed.”
Tafadzwa Chinamo, Zida chief executive
Advertisements
The agency established a mining claims matchmaking platform to facilitate communication between investors and claim holders and make it easier to negotiate and finalise deals.
Chinamo said the platform is a one-stop shop for investors to partner with mining claim holders.
“Once an investor’s registration has been approved, they will be able to view registered mining claims and express their interest,” he said.
“The investor will then be given further details to be able to contact and negotiate with the owner of the chosen claims on a one-on-one basis.”
To register on the platform, claim holders need to scan and upload their identification documents, claim registration certificate, valid inspection certificate and site map.
Investors need to register and submit relevant information, such as their contact details, investment objectives and the type of mining claim they are interested in.
Fees for claim holder registration are pegged at US$500, while investors pay US$1 000 for registration.
Speaking at the same event, deputy chief secretary for policy analysis, coordination, devolution and development planning in the Office of the President and Cabinet, Willard Manungo, said this is a significant milestone for the mining sector in Zimbabwe.
“I believe that the platform will be a valuable tool for promoting investment in the mining sector. It will make it easier for investors to find and acquire the claims they need and it will help to create a more efficient and transparent mining industry,” he said.
The web-based platform is going to be extended to other productive sectors of the economy.
Figures from Zida show that the country recorded US$445,70 million in investments during the second quarter of 2023.
In the first half of 2023, the agency managed to attract investors from 32 countries.
China had the highest number of investors and investment value, with mining being the most preferred sector, followed by the manufacturing sector. During the second quarter, the mining sector attracted the most investment, with 62 new licences issued and a projected investment value of US$202,7 million.
Between 2000 and 2018, the country’s FDI hovered around US$500 million a year. However, with Chinese investments in mining and the local industry increasing, annual FDI flows have been rising over the last five years.