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Enacy Mapakame Business Reporter
KENYA clinched over 20 deals or 27 percent of the 73 deals that will be funded by Japan as part of enhancing co-operation with Africa hardly two weeks ago at the Tokyo International Conference on Africa Development.

What this means is that 53 African countries will be jostling for the remaining 53 deals. At the same Ticad, Japan pledged $30 billion in public and private support for infrastructure development, education and healthcare for Africa for the next three years.

Now, economists say there are some important lessons to be learnt from Kenya’s efficiency in attracting foreign direct investment particularly at a time emerging economies from Asia are penning a new script for the scramble for Africa.

The past decade has seen a shift of FDI funding to Africa from traditional western developed nations to Brics countries made up of Brazil, Russia, India, China and South Africa.

Asian giants, China and India have become significant players seeking partnerships in the resource-rich Africa to develop their economies.

India, China and Japan have been pouring financial resources into Africa for various projects ranging from mining to food processing, something that Zimbabwean industries should be alert and quick to tap into.

Buy Zimbabwe chief executive Munyaradzi Hwengwere said in light of this, Zimbabwean companies need to learn from Kenya and be a leading recipient of such funding.

In addition to that, this could be a time for introspection by Zimbabwe and “put its house in order”.

“The Kenyans are smarter and have accessed a great deal of the investments, it is time for Zimbabwe to learn from that,” said Mr Hwengwere.

“What is it that Kenyans have that we do not have? It is time also for an introspection and put our house in order.

“We do need these investments to fund various projects,” he said.

He added that for Zimbabwe to be an equal partner, there is need to ensure efforts are made towards building a strong industrial base out of such investments, beneficiate the available resources and create employment.

“There has always been a scramble for Africa, what is important is to ensure that as Zimbabweans we benefit greatly from it by building a strong economy,” said Mr Hwengwere.

Between 2000 and 2014, China’s cumulative FDI into Africa has amounted to $30 billion. As of 2012, the second largest economy has poured over $2 billion annually into the continent in FDI flows.

Economist Dr Gift Mugano said if Zimbabwe managed to access such kind of funding for infrastructure projects like road and rail rehabilitation as well as power generation, this could cut on infrastructure deficit and enhance local industry.

Infrastructure deficit is one of the factors cited as impeding industry growth in the country, according to the Confederation of Zimbabwe Industries manufacturing sector survey reports.

However, Dr Mugano said caution must be thrown to the wind to ensure all parties benefit.

“Now we need to think which infrastructure projects we need, for instance if it goes towards power generation, this will enhance power supply and improve industry competitiveness.

“We have a lot of dam construction projects that need funding, if these are looked at, then agriculture sector will improve and other downstream industries.

“But we need to be careful not to lose the local content aspect in the process.

“We do not have everything but there are some raw materials we can provide as a country, thus promoting local procurement,” said Dr Mugano.

According to the fDI Intelligence, an in-depth cross border FDI monitor, Africa is the fastest growing region for FDI flows.

In 2014, the continent enjoyed a 24 percent increase in capital investments over prior year to an estimated $87 billion.

The number of FDI projects also increased by 6 percent compared to prior year and further growth is expected in the next decade on the back of its vast natural resources.

With such anticipated growth, economists have argued Zimbabwe stands to benefit more than it could lose.

Zimbabwe National Chamber of Commerce chief executive Mr Takunda Mugaga said the private sector ought to take a leading role in attracting such investments into the country and not leave the responsibility politicians alone.

“Business drives the economy of any country and should be key in negotiations and make up part of delegations seeking investment partnerships. As a country, we have nothing to lose but benefit, we are stagnant right now and therefore we need something to be able to move forward.

“What is important how is the kind of projects we present for financing,” he said.