THE Zimbabwe Investment and Development Agency (Zida) says investor sentiment remained strong in the third quarter of this year, despite elections and heightened country risk, businessdigest can report.
This comes as the agency closed third quarter sitting at US$3,4 billion in projected investment value.
Of this total amount, foreign investors are expected to bring in US$2,7 billion.
Normally, investors take a wait and see approach during the election period as uncertainty lingers.
This is coming at a time Zimbabwe is battling high country risk, reflecting the sovereign defaults, arrears and high debt.
In such situations, chances of attracting investors become slim.
But Zida chief executive officer Tafadzwa Chinamo told businessdigest on the sidelines of the agency's third quarter report 2023 release on Tuesday that foreign investors remained unfazed.
“We didn't see much of a slowdown in August,” Chinamo said.
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“We are only recording investments which come through Zida. If anyone opens their shop or any other business in other parts of the country and are not licenced, we won't record that.
“But for the investments that come through Zida, we didn't see any slowdown during the election period.”
Statistics availed by the agency shows that the highest number of new investment licences issued by Zida was to Chinese investors, with projected investment value of U$2,7 billion.
This was followed by the United Arab Emirates at US$498,49 million, while India sat at US$0,95 million. Canada and South Africa had investments worth US$4 million and US$3,81 million, respectively. Pakistan is expected to bring in US$1,7 million worth of investments.
Local investors had a projected value of investment worth US$32,96 million.
“From where it stands, it will be difficult to say if country risk is an issue because our numbers are going up quarter by quarter, not just in terms of values but in terms of actual investors that come in,” Chinamo said.
“Obviously, if the situation here was perfect, we would be seeing more numbers but the fact that the numbers are increasing quarter by quarter gives us more confidence to say that this country had more to offer to investors.”
During the period under review, 82% of projected investment value for all new licence approvals were issued in the energy sector, with six new licences issued at a projected value of US$2,8 billion.
It was followed by the mining sector, which saw 86 new licences being issued with a projected value of US$411,97 million.
“We were in an election period and the kind of mood had been wait and see but the number of licenses that we issued at 180 is actually higher than all the other quarters,” Chinamo said.
According to the third quarter report, the largest investment was by New Eagle Industrial Park, which intends to invest U$2,3 billion towards the development of an energy industrial park in Mapinga.
This was followed by Simone Pvt Ltd with US$496,8 million towards the development and operation of a 500 megawatts solar plants in Mazowe, Manhize and Mutoko.
