Published: 22 June 2018

A $12 million snack-making plant went live a fortnight ago, unlocking 400 job opportunities in Zimbabwe, where unemployment is over 90 percent and growth prospects had until now been scuttled by firm closures.

The snack maker, Davipel Group of Companies sits at the heart of an ambitious special economic zone (SEZ) where it is set to benefit from a range of incentives that Zimbabwe has been putting in place to drive vital foreign direct investment (FDI) inflows, to rebuild an industry that has been shuttered by years of economic mismanagement.

And on Tuesday, government rolled out a women's bank, undertaking to take women investors under its wings, funding their capital needs.

President Emmerson Mnangagwa's administration has been under pressure to act since coming into office in November, with only a few months' window to demonstrate its capacity before a crucial election on July 30.

And reforms that have been rolled out under its Zimbabwe Open for Business crusade appear to have ignited appetite to invest in sectors that had been shunned for decades, with dire implications on economic health.

Last week, Zimbabwe opened a $40 million PepsiCo plant in Harare, which is projected to unlock over 400 jobs.

In March Mnangagwa headlined the launch of a $40 million refinery plant at Willowton in Mutare to produce a wide range of products which include edible oils, margarines and spreads, toiletries, laundry and bathing soaps, candles, chocolates, baking and industrial fats.

Four lithium miners that were granted the greenlight to extract the mineral in Zimbabwe say they have scaled up their impetus, riding on reforms.

These are Prospect Resources, the Australian listed outfit that is exploiting lithium near Harare, as well as Zulu Lithium, Zimbabwe Lithium and Bikita Minerals.

All four are at various stages of developing their mines, which could require about $300 million, according to statistics from the Lithium Producers Association.

Lithium, one of the world's most sought after minerals after its demand in battery manufacturing and other requirements rose sharply, has attracted significant interest.

And in February, Unilever Zimbabwe said it had invested $8 million into its operations in the country and created businesses for over 100 000 local enterprises across value chains.

Economic analysts acknowledge that Zimbabwe has evolved into a destination of greater attraction.

"The new dispensation has brought about new hope for the country as reengagement has been the President's mantra," say researchers at the Harare based advisory, IH Securities Zimbabwe.

"The President has signed MOUs (memoranda of understanding) with several countries, mainly China, for funding for various projects. The United Kingdom recently broke its lending drought for Zimbabwe as it availed a $100 million loan facility to Zimbabwean companies as the country's first direct commercial loan to the country's private sector in more than 20 years. This was the biggest sign of a thaw in the UK-Zim relations and we believe that this will also motivate other countries to avail funds," IH says.

The Zimbabwe Investment Authority (ZIA) says it projects to approve projects worth $2,5 billion in 2018, from $1,52 billion in 2017.

"It is in our view that the country will receive more FDI than in 2017, however, we do believe that elections will act as a bottleneck with most potential funders preferring to wait for their conclusion," says IH.

While opening the $12 million snacks plant last week, Mnangagwa said government was looking at various strategies to drive investment into Zimbabwe.

He said Zimbabwe would embrace an export led investment strategy.

"Let us translate the mantra 'Zimbabwe is Open for Business' and embrace export led industrialisation by positioning ourselves to take advantage of the market access available in Southern African Development Community, Common Market for Eastern and Southern Africa, Tripartite Trading Agreements and the African Continental Free Trade Area," said Mnangagwa.

"Companies are encouraged to produce quality products that are attractive and competitive on both the local and export markets. We will equally support closed and distressed companies who are committed to support and develop appropriate strategies to complement our quest to rebuild and grow our economy in line with a vision to become a middle income country with a per capita of $3 500, increased investment, decent jobs, broad based empowerment, free from poverty and corruption by 2030.

"We are fast tracking the implementation of the Zimbabwe Investment and Development Authority as a One Stop Investment Shop and Trade Facilitation Centre. I am glad to advise that we have recently approved the setting up of an Interim Investment and Trade Facilitation Committee that will offer speedy attention to investment issues," he said.

- fingaz

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