FDI inflows remain low

Foreign direct investment (FDI) inflows into Zimbabwe remain a major cause for concern, considering its importance in financing government’s Budget deficit and new business opportunities, a survey by a local advisory firm has shown.

FDI is direct investment into production by a company located in another country, either by buying a company in the target country or by expanding operations of an existing business in that country.

According to a recent report by MMC Capital, FDI inflows into Zimbabwe remained very low when compared to other regional countries and this indicated the high risk premium on the country.

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