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UN tells Zimbabwe to make changes to attract FDI
12 Oct 2023 at 06:41hrs | Views
The United Nations (UN) has urged Zimbabwe to implement necessary changes to attract foreign direct investment (FDI) as global foreign assistance diminishes, moving away from quiet diplomacy. This advice follows a plea from George Guvamatanga, the Finance, Economic Development, and Investment Promotion permanent-secretary, for support from development partners to secure additional funding.
Speaking at a Zimbabwe National Chamber of Commerce (ZNCC) breakfast meeting, UN Resident and Humanitarian Coordinator Edward Kallon emphasized that "Zimbabweans could create wealth for Zimbabwe." He stressed the importance of creating trust and confidence in the country's economy, making it an attractive destination for investment. Kallon noted that government efforts, such as the Zimbabwe Economic Development Conference and high-level dialogues, could help reorient policies to stimulate business growth and job creation.
While UN officials have typically urged government reforms behind closed doors, the challenges faced by Zimbabwe, including power cuts, water delivery issues, currency distortions, inconsistent policies, high public debt, corruption, infrastructure problems, healthcare shortcomings, and political disputes, have prompted public alarms.
The decline in foreign development support has left Zimbabwe with limited access to fresh capital due to its debt overhang. Any reduction in such support could have a detrimental impact on the country's economy.
Kallon urged honest engagement and the use of tripartite dialogue platforms for labor, the private sector, and government to collaboratively chart the way forward. He emphasized the importance of prudent debt management, currency stability, and responsible business practices to promote medium-to-long-term growth and sustainability.
Zimbabwe's challenges have led to a decrease in FDI inflows, which dropped from $745 million in 2018 to $342 million in 2022.
Chris Mugaga, the CEO of ZNCC, expressed the need for open engagement and cooperation to address the economic challenges and drive the economy in the right direction, emphasizing that all parties must work together and acknowledge their weaknesses.
Speaking at a Zimbabwe National Chamber of Commerce (ZNCC) breakfast meeting, UN Resident and Humanitarian Coordinator Edward Kallon emphasized that "Zimbabweans could create wealth for Zimbabwe." He stressed the importance of creating trust and confidence in the country's economy, making it an attractive destination for investment. Kallon noted that government efforts, such as the Zimbabwe Economic Development Conference and high-level dialogues, could help reorient policies to stimulate business growth and job creation.
While UN officials have typically urged government reforms behind closed doors, the challenges faced by Zimbabwe, including power cuts, water delivery issues, currency distortions, inconsistent policies, high public debt, corruption, infrastructure problems, healthcare shortcomings, and political disputes, have prompted public alarms.
The decline in foreign development support has left Zimbabwe with limited access to fresh capital due to its debt overhang. Any reduction in such support could have a detrimental impact on the country's economy.
Kallon urged honest engagement and the use of tripartite dialogue platforms for labor, the private sector, and government to collaboratively chart the way forward. He emphasized the importance of prudent debt management, currency stability, and responsible business practices to promote medium-to-long-term growth and sustainability.
Zimbabwe's challenges have led to a decrease in FDI inflows, which dropped from $745 million in 2018 to $342 million in 2022.
Chris Mugaga, the CEO of ZNCC, expressed the need for open engagement and cooperation to address the economic challenges and drive the economy in the right direction, emphasizing that all parties must work together and acknowledge their weaknesses.
Source - newsday
