Mining Continues to Drive Investment in Zimbabwe

Diamond polishing workers in the Southern African state of Zimbabwe. The country is a large repository of gems., a photo by Pan-African News Wire File Photos on Flickr.

Mining continues to drive investment

December 25, 2013

THE MINING sector continues to drive investments in the country, attracting investments worth US$207 million off 59 projects in the period to November this year. According to the latest statistics from Zimbabwe Investment Authority, projects worth US$668,3 million were approved during the period mainly driven by investments in the mining and manufacturing sectors.

Of the 152 projects approved, 145 are joint ventures and seven are foreign while no local investment was recorded during the period.
The mining sector received the bulk of the investments worth US$207 million for 59 projects, followed by manufacturing with the same number of projects but valued at US$155,8 million, services sector was US$164,8 million for 21 projects and the construction sector received US$129,5 million for six projects.

Only two projects were approved in the tourism sector with a value of US$3,4 million, while the transport sector had one project with a value of US$5,3 million and agriculture had one project valued at US$2,5 million.

During the period under review, the country received foreign investment worth US$87,2 million from seven projects, creating 402 jobs.

Joint investments brought into the country US$600 million from 145 projects and 7 883 jobs were created whilst export earnings totalled US$315,1 million.

Some of the deals which ZIA recently approved include the acquisition of a majority stake in United Refineries by South African company Grindrod.

Grindrod is said to have bought 84 percent shareholding in URL and injected US$2,5 million as working capital.

Grindrod is also on the verge of concluding a transaction for a 49 percent stake in Victoria Foods for US$3,2 million.

ZIA is also still considering the details on the acquisition of a major stake in hardware group UBM by foreign investors.
Experts say Zimbabwe’s Foreign Direct Investment inflows should double within the next five years in order to achieve the 7, 3 percent annual economic growth rates projected in the new economic blue print, Zim Asset.

– FinX.