FDI inflows dry up, ZIDA now courting domestic i...

FDI inflows dry up, ZIDA now courting domestic investment

Foreign Direct Investment (FDI), Types, Advantages, Disadvantages

The Zimbabwe Investment and Development Agency says there is need to facilitate and promote Foreign Direct Investment and Domestic Direct Investment following a decline in FDI in the country.

Globally, FDI inflows fell by 31% in Q2 2023, to $357 billion. This was down from $509 billion in Q1 2023 and 7% lower than the quarterly average of 2021.

The Agency said the FDI flow remains relatively low due to a number of factors, including the perceived ease of doing business in the country.

“The decline in FDI was driven by a number of factors such as, but not limited to, the on-going war in Ukraine, rising inflation and supply chain disruptions among others.

“The Agency strives to promote and facilitate both local and foreign investment in the country, therefore, increasing Foreign Direct Investment and Domestic Direct Investment.

“Feedback from engagements with potential investors within the quarter highlight the need to continue promoting the simplification of the investor onboarding process, improving the investment climate, and providing incentives for foreign investors as anchors in driving investment into the country.

ZIDA CEO Mr Tafadzwa Chinamo said the Agency has started to initiate DDI activities through engaging local companies, asset management firms, commercial farmer Unions to deliver the ZIDA role, value proposition and present investment opportunities available for them to partake.

“The roll out of a 360-degree campaign to attract and license more local companies will be implemented in the 3rd quarter of 2023.

“Provincial, foreign mission and Embassy engagement initiatives are set to be rolled out at the start of the 3rd quarter of 2023 following the approval of the calendar schedules.

“On behalf of the Agency, I commit that ZIDA will continue to contribute to the improvement of timelines to receive and process investor applications and provide continuous aftercare, which will create an almost seamless platform that allows investors to be onboarded quickly into the country,” Mr Chinamo said.

Meanwhile, the Agency reported Projected Investment worth US$1060.24 for the Q2 2023 compared to US$760.87 in the first quarter while the Actual Investment for the Q2 2023 was USD$445.70 compared to USD$154.49 in the first quarter.