2.1 Improving the Investment Environment
The Special Economic Zones currently under implementation by Government will improve the investment environment in Zimbabwe, with potential to attract substantial FDI flows. However, it is important that a national investment framework be established as an anchor for investment to guide investment across the country. It is also important that such a framework be harmonized with the SEZs thrust of Government. Most important is the need to ensure policy coherence and consistency so, as to entrench macroeconomic stability fundamentals for the economy.
Attracting new investment in the economy for the key productive sectors – agriculture, manufacturing, mining and infrastructure – this is fundamental for sustaining economic growth beyond the near term, with employment and transfusion of incomes across broad segments of society for broad based transformation.
2.2 Promoting FDI and Domestic Investment
As an integral aspect of improving the investment environment, there is need for Government to, specifically target FDI and domestic investment, actively and proactively promoting investment in the economy. This will ensure that the private sector, including SMEs and Micro enterprises are active economic growth determinants.
There is need for Government to prioritize investment, harmonizing investment laws, creating a viable and active One Stop Shop and promptly addressing whatever marginal nuances, as may be identified by investors. Government has given priority to this process.
This has been the case with all countries that have achieved significant economic growth and transformation over the past five decades, among them China, Indonesia, Malaysia, South Korea, Taiwan, Vietnam, Brazil, India and Singapore, among others. These countries succeeded in large measure reflecting their capacity to harness a growing tide of both domestic and foreign direct investment through deliberate policies that were continually refined overtime, but expressly designed to attract foreign direct investment.
The added advantage for FDI is that this is the quickest way to achieve technology diffusion and lowering the cost of business in a rapidly integrating global economy. Technology diffusion is often, intertwined with innovation, which drives enterprise development and new products and services, opening new frontiers of business.
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