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Elliot Ziwira-Senior Writer

The Zimbabwe Investment and Development Agency (ZIDA) yesterday signed a cooperation agreement with the International Finance Corporation (IFC), which will see the agency receiving technical and advisory support in investment promotion and special economic zones (SEZs) policy framework for the next three years.

This comes as the Second Republic’s thrust towards engagement and re-engagement with the outside world under the “Zimbabwe is open for Business” mantra continues to bear fruit.

To be implemented under the Zimbabwe Investment Policy and Promotion Programme (ZIPPP), the momentous collaboration will boost ZIDA’s operationalisation and capacity development imperatives. 

A member of the World Bank Group, the IFC is a global financial institution that offers investment, advisory and asset management services aimed at spurring on private sector expansion in less developed countries.

Speaking at the signing ceremony in Harare, ZIDA acting chief executive officer, Mrs Duduzile Shinya, said the agreement would go a long way in regulating SEZs and improving investment promotion in many sectors of the economy, among many other positive outcomes.

“Outcomes expected from this milestone collaboration include an improved policy and regulatory framework for SEZs, strengthened investor services, improved policy and retention capacity and a pipeline of investments in determined sectors, including the agribusiness and renewable energy sectors,” she said.

Mrs Shinya underscored that through the engagement, the IFC shall provide technical and advisory support for SEZs’ policy reform to effect smooth operationalisation through drafting and promulgation of crucial components of regulatory frameworks.

Also, institutional development and capacitation of ZIDA staff will be boosted through skills development schemes in areas of investment promotion, generation and retention.

Established in 2020 through the ZIDA Act, ZIDA promotes investment and development by facilitating both local and foreign ventures in the country. It was born out of three investment authorities previously housed in different Government ministries and departments.

IFC Country Manager for Zimbabwe, Eswatini, Lesotho, Namibia and South Africa, Mr Adamou Labara said the Government’s re-engagement call is no fluke as authorities put action to their words; a commitment that should be beamed across the world.

 “A lot of work has been done over the years, not only to support the private sector, but also to show that the country is open; that Zimbabwe is open for business. The authorities mean it; private sector players also mean it too,” said Mr Labara.

He added that as IFC, their role remains “to support the Government in that endeavour”, which begins by providing a single “but very critical step” to ZIDA.

Mr Labara highlighted that his team was not only motivated to do more for the people of Zimbabwe whose demeanour touched them as it made them feel at home, but would use their work with ZIDA to signal to the outside world that they are serious about private sector development. 

 He applauded the Government of Zimbabwe for the reforms done towards economic recovery, and attracting investment, which has seen the country being removed from the grey list of the Financial Action Task Force (FATF) in March this year, while other countries are “still struggling to get out”.

Mr Labara said the establishment of the Commercial Court division of the High Court last week also testifies to seriousness and commitment to reforms on the part of the Government.

Deputy Chief Secretary in the Office of the President and Cabinet, Ambassador Nicholas Kitikiti said: “This event is a culmination of many activities, and what is most pleasing about it is that it represents a continuity of relations which we have between the World Bank and most of our technical departments in this country.”

World Bank Country Manager for Zimbabwe, Ms Marjorie Mpundu, said she was elated to witness the historic occasion, saying her group had been working closely with the Office of the President and Cabinet towards the Government’s development agenda.

 “This work has been driven by the Government itself, and we are here just to support the initiatives you have put forward,” she said. 

Ms Mpundu the World Bank Group remained committed to supporting the development initiatives in Zimbabwe to “the extent possible.”

“We do realise that the work that ZIDA will be doing will be critical in changing the narratives about Zimbabwe as an investment destination, and we are happy to partner with you,” she said.

ZIDA chairman, Mr Busisa Moyo said the signing of the cooperation agreement with IFC was “a small but very significant step in the life of Zimbabwe”, which dovetails with the Government’s push to embrace a private sector-centred and foreign direct investment-led economic development programme as enshrined in National Development Strategy 1 (NDS 1).

He expressed gratitude to the OPC for “following through” on the agreement, and the World Bank for helping in “a real way” the evolution of the NDS 1-driven strategy.

Mr Moyo said as ZIDA, they were equal to the task to make sure that whatever support given delivers the biggest return on investment.

“We are looking forward to what we have signed today becoming a reality and delivering on it; but are also being mindful that we would like to improve on the investor experience – the experience of the investors coming into our country, and to remove as many of the pain points that they may be experiencing right now,” he said.