ZIMBABWE is targeting to achieve an investment level of more than 30% of gross domestic product (GDP) by 2030, the finance deputy minister has said. Speaking at the African Investment Leadership Forum Awards (AILFA) stakeholder briefing last week, Finance, Economic Development and Investment promotion deputy minister David Mnangagwa (pictured) said this would be achieved through collaboration with the private sector.
“Our target as a country is that by 2030, Zimbabwe will have achieved an investment level of more than 30% of gross domestic product, currently we are at about 15% of GDP,” Mnangagwa said in a speech read on his behalf by the ministry’s chief director Charles Mujajati.
He added that the government was implementing policies and incentives to attract and promote investment, through measures such as tax breaks, investment protection, and streamlined procedures for setting up businesses.
However, the Treasury has come under fire for the recent spate of new taxes that target both local businesses and foreign ones as well.
The sectors the government is promoting for investment are agriculture, mining, tourism, and manufacturing.
Zimbabwe attracted foreign direct investment of about US$342 million in 2022.
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Property rights and the rule of law are among some of the top concerns from foreign investors in investing in Zimbabwe.
Recently, one of the world’s most influential global economic decision-making bodies, the World Economic Forum noted that Zimbabwe’s economic prospects are shrinking.
The forum made the assessment based on a low average annual growth of 1,8% between 2018 and 2023, a falling GDP per capita and the economy scoring poorly in innovativeness, inclusiveness and resilience.
“Allow me to call upon all of us to strengthen collaboration between governments and the private sector in promoting investment and economic growth,” Mnangagwa said.
“By working together, both parties can leverage their strengths and resources to create an environment that attracts domestic and foreign investments.”
Mnangagwa said Zimbabwe had its fair share of economic challenges which caused a negative impact on investment and economic development in the country.
These economic challenges are from poor policy making, shrinking consumer spending, high national debt, high taxes, power and water supply challenges, low foreign direct investment, and an increased risk profile.
Hence, the government was making great strides to improve the ease of doing business by implementing reforms to streamline processes, reduce bureaucracy, and enhance investor protection, the minister continued.
“Here in Zimbabwe, this workshop comes at a critical juncture following the recent finalisation and launch of the mid-term review of our National Development Strategy 1 (NDS1), an economic review which has revealed the need to accelerate our efforts in order to realise our vision 2030 of becoming an upper middle-income country,” Mnangagwa said.
“The mid-term review has shown us that as a country, Zimbabwe must continue striving in order to realise our development goal of prosperity for all.”
He said one of the key tools to realise that important national goal would be to attract investment both domestically and globally.
Last year in December, AILFA called for stakeholders, investors, and visionaries to collaborate for its inaugural awards.
The group released its first page of speakers at the inaugural awards to be held in June this year.
Those expected to attend include Finance, Economic Development, and Investment Promotion minister Mthuli Ncube, Mnangagwa, Success Motivation Institute chairperson Nigel Chanakira, Zimbabwe Stock Exchange chief executive officer (CEO) Justin Bgoni and Zimbuild CEO Tinashe Manzungu.
The event will serve to bring together local, continental, and global investors. The confirmed guests and speakers consist of the local and international figures from various sectors.
AILFA inaugural awards will run from June 26 to 28 in Harare under the theme, “Prosperity through Partnership: Cultivating Sustainable Investment Ecosystems in Africa.”