With the country’s new leadership, opportunities to upgrade infrastructure in the energy, mining and road transport sector have made Zimbabwe an attractive destination for investors.
Decades-long political instability, sanctions and a failing economy have seen a massive decline in Zimbabwe’s international appeal. Even as global investors turned their attention to Africa in 2015 and 2016, Zimbabwe managed to exclude itself from billions of dollars of investment over its tumultuous economic trajectory.
But, the tide has turned and Zimbabwe appears to be in the Spring of life once again.
Sternford Moyo, LEX Africa’s member in Zimbabwe gave valuable insight into the private equity market in the southern African country, at a seminar held in Johannesburg, entitled An Outlook on Africa 2018.
Johannesburg - Moti Group is preparing to double its investments in Zimbabwe to $500m after the removal of Robert Mugabe as president in November saw the government adopt a more open approach to foreign companies.
Emmerson Mnangagwa, 75, who replaced Mugabe after the military briefly took control, has declared that “Zimbabwe is open for business” and has said he will ease the country’s local ownership rules and re-engage lenders such as the International Monetary Fund.
MARK Cutifani, CEO of Anglo American, described Chris Griffith, his counterpart at the 80%-owned listed subsidiary, Anglo American Platinum, as “keen as mustard” to explore fresh prospects in Zimbabwe which has recently thrown its doors open to investment.
Well, kind of …
Cutifani, as with Impala Platinum (Implats) CEO, Nico Muller, is cautious about how a change in president in Zimbabwe might actually alter policy towards foreign investment. Following the initial euphoria following the toppling of former Zimbabwe dictator, Robert Mugabe, a sense of watchfulness has now befallen the markets in respect of Zimbabwe, especially among the miners who have seen it all before.