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ZIDA to prioritise domestic investment  - Zimbabwe Situation

ZIDA to prioritise domestic investment  Senior Business Reporter  Notwithstanding its key mandate to drive direct foreign investment into Zimbabwe, the nascent Zimbabwe Investment Development Agency (ZIDA), will also focus on clearing the path for domestic investment.   This is particularly vital given the inward-looking economic trends that have emerged across the globe as a result of the Covid-19 pandemic.   Said chief investments and corporate affairs officer Tino Kambasha: “We are quite excited about the new baby (ZIDA) and one of its key elements is the One Stop Investment Service Centre (OSISC). We think our biggest stakeholders are Zimbabweans themselves. We need to find out what is hindering us to do business among ourselves. Domestic direct investment is also our priority.  

Foreign direct investment dries up

DUMISANI NYONI According to a Monetary Policy Statement released by Reserve Bank of Zimbabwe (RBZ) governor John Mangudya last week, foreign investment declined from US$53.47 million to US$40.06 million in 2020 while international and diaspora remittances increased by 57.6% to US$1.002 billion. Loan proceeds registered 42.5% growth to US$845.21 million whereas income receipts and non-governmental organisations contributed US$56.85 million and US$647.75 million, respectively. In total, foreign currency receipts for 2020 increased by 14.9% to US$6.288 billion. Economic analysts attributed the decline in foreign investment to the outbreak of the Covid-19 pandemic which heightened the risks. “The decline in foreign investment is because of the risks associated with the Covid-19. No one was actually going to be investing. But already the crisis before was associated with declining foreign direct investment (FDI),” economic analyst Godfrey Kanyenze said.

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