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Minister Patrick Chinamasa

Charity Ruzvidzo Business Reporter
ZIMBABWE has the potential to increase Foreign Direct Investment (FDI) inflows if the government addresses corruption, offers incentives to investors as well as providing a stable political environment, economic commentators have said.

The first 10 months of the year saw the country’s FDI inflows dropping to $146, 6 million from $311, 3 million recorded during the same period in 2013.

In the 2015 national budget, Finance and Economic Development Minister Patrick Chinamasa said foreign investment capital inflows remained subdued due to the perceived country risk.

However, he projected that FDI would increase by 69 percent in 2015 on the back of continued implementation of reforms and the re-engagement process between the government and the European Union.

Bulawayo-based economic commentator, Ephraim Makara, said the government should review policies surrounding investment in the country.

“The policies surrounding investment must be revised. The policy must be looked at, change certain areas if need be in order to ensure we attract investors,” he said.

Makara urged the government to take a leaf from neighbouring countries on strategies to attract investors.

“As Zimbabweans we’re very patriotic and very proud of who we are.

“However, it’s high time we engage our neighbours like South Africa and Botswana on how best we can attract investors,” he said.

Another economic commentator, Bradwell Mhonderwa, said there was a need to ensure that a politically stable environment prevails in the country to lure investors.

“Our political environment plays a major role in creating an image for the country. A lot of political bickering does not do us any good with regards to attracting investment. Political stability lures investors,” he said.

Mhonderwa said it was high time the country put an end to corruption.

“No investor can be attracted to investing in a country which is soiled with corruption. We need to go beyond the laws when dealing with corruption. It’s about self-regulation, developing ethics in a business place that curb corruption,” he said.

Affirmative Action Group executive director Davison Gomo said the recent move to engage the country’s embassy officials in other countries creates a sound platform to market Zimbabwe as a good investment destination.

“The initiative taken by the government to engage embassies to market Zimbabwe with regards to tourism and investment is very laudable.

“However, embassies can only market Zimbabwe if as a country we create credibility in terms of our operations.

“We should be clear and transparent such that when an investor comes they know what they’re dealing with,” he said.