five months of the year.
This compares with 72 projects with a value of US$104 million in 2010, reflecting an 88,49 percent increase in value terms.
But figures showing the conversion rate of these investment approvals are not yet available.

Over the years, a significant amount of these investment projects have not materlaised, contributing to the depressed economic recovery.
According to ZIA, the projects approved have the potential to generate employment for 5 246, compared with 2 944 for the same period in 2010.

In the latest figures, the mining sector has the potential to create the most jobs – 2 063.
The projected foreign currency generation increased to US$438 million, up from US$35 million in the same period in 2010.

“The investment environment continues to show some positive growth as demonstrated by the figures, a clear demonstration that Zimbabwe is ready for investment,” said a ZIA official.
Statistics also show that the manufacturing sector had the highest number of approved projects at 34 (worth US$104 million), followed by mining with 20 (US$239 million), services with 18 (US$108 million), agriculture with two (US$444 million) and construction with one project (US$9 million).

Although the agriculture sector has attracted only two projects, they had a high value. In contrast, the manufacturing sector had a high number of approved projects with low values.
It was also notable that the tourism and transport sectors had no projects approved during the period. These should be areas of concern considering their traditional significance to the Gross Domestic Product.

In the period under review, export earnings grew to US$284 million, up from US$64 million last year.
A comparative analysis of this year’s investment approvals statistics with those of last year indicates a significant upturn in new investment flows.

This is perhaps attributable to the extensive number of foreign direct investment improvement strategies implemented by both Government and the private sector, including the hosting of investment conferences and a number of visiting foreign business delegations.

Increased investment inflows are also expected in the outlook period following the establishment of the investment one-stop shop, aimed at reducing the bureaucracy that has dogged new business processing in the past.

Under the current set-up the processing of all the requisite paperwork for new investors should take five working days from the previous 96 days.
Earlier in the year, Cabinet approved the draft Zimbabwe Investment Amendment Bill which activates the OSS, compels all investors to register with ZIA, and re-introduces industrial parks and export processing zones.

These are considered to be catalysts for improved FDI inflows.
The Bill will also provide a legal instrument to restrict investors from employing foreigners in areas where local skills meet requirements.

Notwithstanding the strategies on the ground being implemented by the Government to improve FDI inflows, there is need for active strategies to improve the ease of doing business global rankings which potential investors employ in their decision-making processes, analysts said.

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