PHILLIMON MHLANGA
Zimbabwe has turned to its nationals living in the diaspora in its bid to lure investment in the productive sectors of the economy, it has emerged.
The development comes at a time when foreign direct investment inflows remain low.
Business Times can report that the country’s investment agency, the Zimbabwe Investment and Development Agency (ZIDA) and embassies are engaging Zimbabweans in the Diaspora.
However, what rattles Diasporans and investors is policy inconsistencies, repatriation of proceeds and dividends hurdles, corruption, high inflation and concerns on property rights, among many others.
Finance and Economic Development deputy minister Clemence Chiduwa nmnmnmnm(pictured) who spoke at the Institute of Chartered Accountants of Zimbabwe (ICAZ) meeting said the Diasporans have a role to play in the development of the economy and Zimbabwe is getting US$1.5bn from nationals living outside the country by year end.
“It’s a very important exercise for the US government to engage Zimbabweans in the Diaspora. We are guided by Vision 2030. We have seen that the Diaspora is a significant source of finance for us,” he said.
ZIDA chief investments and corporate affairs officer, Tino Kambasha said: “We are engaging the Diaspora. A lot of things are happening in the background. We encourage the Diaspora to seriously consider investment opportunities in Zimbabwe. This is your country, we are going to assist them.
“We are very bullish about the future. We are confident the economy will grow by 7.8% this year. We are also confident, inflation will be between 35% and 45% by year-end. There has been talk of difficulties in repatriation of dividends to investors’ country of origin. I can tell you that we have put in place mechanisms that will help investors repatriate their dividends to their country of origin.”
Zimbabwe’s ambassador to the United States of America, Tadeous Chifamba said: “We have embarked on a serious Diaspora engagement. It’s a key segment, with the potential to help turn around the fortunes of the economy.”
However, Botswana-based ICAZ senior vice president, Davison Charamba, said there were many hurdles that discourage investment into the country and “capital is shy”.
“Zimbabweans in the Diaspora are keen to invest in various sectors in the country including agriculture, mining, manufacturing, tourism and telecoms, among many others. But, we still have threats of land repossession. The elephant in the room is policy inconsistencies,” he said.
“It’s not clear. Once bitten twice shy. They need assurances and guarantees. They are facing difficulties in repatriating proceeds and dividends.”
ICAZ technical manager, Owen Mavengere said Zimbabweans in the Diaspora and investors have highlighted concerns including erosion of their funds, property rights and corruption.
“They say they will want to hear how their investments would be hedged against inflation and how they will get their profits or returns in foreign currency,” Mavengere said.
He added: “Property rights is another elephant in the room that needs to be addressed. They ask what measures are now in place to secure property rights.
“The hurdles of opening a business are another concern. The idea of moving from office to office and regulator to regulator. They ask how efficient is that process of starting a business and the cost thereof.
Long wing processes will breed corruption as people try to quicken the processes.”
