GROSS government inefficiencies are reportedly blocking foreign direct investment which is critical in resuscitating the ailing economy.
BY OUR CORRESPONDENT
Zimbabwe Youth Development Trust president Aaron Mupandawana said foreign direct investment (FDI) was key in most African economies yet Zimbabwe attracted little because of the prevailing environment.
“Although Zimbabwe attracted less than 1% of FDI flows to Africa as of last year, other countries are doing very well with South Africa topping the list while Mozambique exceeded US$8 billion or 10% of FDI flows to Africa,” said Mupandawana.
“A keen investor in the mining sector for example, goes through a number of channels from the parent ministry, trade ministry along others where he pays huge fees only to be told by the Environmental Management Agency that he or she stands in breach of environmental policies,” said Mupandawana.
He said one potential investor was about “to return back out of frustration due to the cumbersome processes involved”.
Mupandawana castigated the manner in which the government’s youth empowerment model — through the US$10 million youth fund — was executed, saying it was doomed from the onset.
“Given the current hard times honestly if one is given US$2 000 or US$3 000, that person will be forced to attend to his or her immediate needs.”