SC 2015-06 - Report of The Portfolio Committee on Foreign Affairs on Attracting Foreign Direct Investment

The international investor community. remains wary about investing in Zimbabwe, despite positive economic developments since 2009. International interest in potential business and investment opportunities from traditional source markets has faded as tensions have risen and talk has refocused on socio-economic issues such as the indigenization. Foreign Direct Investment (FDI) has fallen short of the levels required to cure the illiquidity that defines the dollarization economy. Backdrop to this, are the sanctions imposed by the United States of America in 2001 and the European Union in 2002 which, in practice have profound and damaging collateral impact on the economy and society of Zimbabwe. Zimbabwe, however, offers very real opportunities for the long-term investor. Indeed, hesitation on the part of many provides few with the chance to gain a first mover advantage in an economy that is starved of liquidity yet filled with opportunities. ZIMASSET, the government's economic blue print acknowledges the importance of foreign direct investment to achieve economic growth and create employment. In light of the above the Portfolio Committee on Foreign Affairs instituted an inquiry on attracting foreign direct investment.

In its inquiry the Committee was guided by the following objectives;
a) To appreciate the envisaged role of foreign direct investment for economic transformation of Zimbabwe withln the context of ZIMASSET.
b) To identify legislative gaps that pitches Zimbabwe to prospective investors as the most preferred investment destination.
c) To assess the level of progress made by the government in implementation of investment promotion strategies.
d) To recommend action for increased Foreign Direct investment.

In order to fully appreciate the subject under consideration, the Committee invited the following stakeholders to provide bot..~ written and oral submissions:
• The Ministry of Foreign Affairs
• The Ministry of Youth, Indigenisatlon and Economic Empowerment
• The Confederation of Zimbabwe Industries
• The Zimbabwe Investment Authority

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