ZIA approves $305m projects

15 Jul, 2016 - 00:07 0 Views
ZIA approves $305m projects

The Herald

Business Reporter

THE Zimbabwe Investment Authority approved a total of 84 projects valued at $305,5 million during the first six months of this year. In terms of number of projects, approvals this year compare favourably well with the same period last year when 67 projects were licensed. By value, 2015 performed much better at about $1 billion, but this out-turn was largely driven by a single high value project worth $653 million.ZIA public relations executive Nixon Kanyemba said the high value project is under implementation. Projects are allowed two years to take off.

Projects approved by ZIA do not necessarily mean actual investment, but reflect interest and plans by investors to start business.

Statistics from ZIA show that projects approved in the first half have potential to create 3 756 new jobs, generating $14,3 million in exports.

Projects approved by ZIA in the first half of 2015 were expected to result in 7 144 new jobs and were expected to generate $17,4 million in exports.

In terms of the total number of projects approved in the first six months of last year, a total of 8 projects were by foreigners and 59 were joint ventures.

The energy sector registered the highest value at $108 million worth of projects despite having only two proposals approved.

Agriculture had the least in value after recording only 4 projects valued at about $250 000 approved by ZIA in the first half of this year.

Other significant values were recorded in services where 15 projects worth $69 million, mining 25 projects valued at $51 million, manufacturing 29 projects worth $49 million and construction, which had only projects valued at $19,2 million approved.

Statistics provided by the national investment authority indicate that foreign partners are expected to contribute $267 million and locals $38 million.

A total of $157 million worth of equipment will come from abroad. Last year, the manufacturing sector registered the biggest number of project approvals, 26, valued at about $722 million.

Latest available statistics show that foreign direct investment inflows to Zimbabwe amounted to $421 million in 2015 from $545 million realised in 2014.

The investment in 2015 constituted a smaller amount when compared to the $17,9 billion that found its ways into other southern African countries.

Government is pursuing a number of economic and business reforms in order to attract foreign investment to drive economic recovery and growth.

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