The Zimbabwe Investment Authority (ZIA), the state agency responsible for overseeing and licencing foreign investment into the country, routinely provides information on the value of projects it would have approved. However, ZIA does not provide data on actual investment, within the boundaries of the IMF definition of FDI.
Nevertheless, ZIA’s statistics of projects licenced in the first quarter of 2018 show a wide gap between commitments claimed by Mnangagwa and approved FDI investments.
ZIA chief executive Richard Mbaiwa told journalists at the Zimbabwe International Trade Fair that the agency had licenced projects worth about $950 in the first quarter of 2018.
The Herald quotes Mbaiwa saying: “The enquiries that have come to ZIA have increased very significantly. If I look at the first quarter of 2018, comparing to the first quarter of 2017, you see a very significant increase.
“In terms of projects that we have actually licensed, not those that made commitments such as the $4.2 billion by Karo Resources and others and not licensed by ZIA, I am not including those; I mean the ones ZIA has actually licensed, for the first quarter we are standing at just below a billion dollars.
“The figure (for licensed projects) is about $950 million. In the first quarter of 2017 we were at about $150 million. So, you can see the difference, the jump. Normally, the first quarter is the slowest, especially in the previous years. When we had $150 million in the first quarter, by end of the year the figure would have gone up to between $1.5 billion and $2 billion,” he said.
“So we think that this year, with the first quarter just shy of a billion dollars, we are quite positive that by end of the first quarter maybe we would have already surpassed last year’s total figure ($1.2 billion project approvals for whole of 2017).
Mnangagwa’s presidency has indeed seen a notable increase in foreign investor interest, as shown by several high-profile visits by investors, who include the chief executive of multi-billion dollar British development financier Commonwealth Development Corporation, Nick O’Donohoe, mineral fertilizer mogul Dmtry Mazepin, rated the 61st richest Russian by Forbes in 2015, Sergey Ivanov Jr, the chief executive of the world’s number two diamond miner Alrosa and mining entrepreneur Loucas Pourolis, chairman of the London and Johannesburg-listed Tharisa plc. Pouroulis signed a $4.2 billion deal with the government, to develop a platinum mine and refinery in the country.
In February, a high-level delegation from US multinational conglomerate General Electric visited the country and expressed interest in the 2 400 megawatt Batoka hydropower project, which is estimated to cost $4 billion.
During his April state visit to China, Mnangagwa also met Xiang Guangda, with the president’s aides announcing that Xiang’s Tsingshang Holdings – which lays claim to being China’s second biggest stainless steel manufacturer – was interested in setting up a $4 billion steel plant in Zimbabwe.
Xiang already has interests in Zimbabwe through ferrochrome firm Afrochine Smelting, which was set up in 2012. In 2013, the Chinese firm was reported to be planning to invest in a power plant that would generate as much as 1 000 megawatts to supply its Selous plant, with the surplus power being fed into the national grid. Five years on, it remains unclear if Afrochine is still pursuing the power project.
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