IN a bid to overcome its financial woes, the Zimbabwean government is reaching out to its diaspora community and foreign investors to inject capital into the country, as accessing offshore credit remains a challenge due to previous loan defaults.
However, some members of the diaspora are expressing skepticism about the potential returns on their investments, highlighting concerns about the stability of the country’s economic landscape.
The government’s efforts to attract investments were underscored during the Zimbabwe Investment Summit held from Thursday to Saturday in South Africa, aimed at showcasing the nation’s potential to the global community.
Addressing participants at the conference, Finance Minister Mthuli Ncube painted an optimistic picture of Zimbabwe’s economic trajectory, emphasizing its resilience and growth despite past setbacks.
“Zimbabwe’s economic recovery, post-Covid, is strong,” Ncube asserted. “We’ve seen it move from strength to strength after a dip in 2019 and 2020.”
He further outlined various incentives and tax rebates available to investors, particularly those importing equipment such as buses for tourism ventures.
However, Treasure Basopo, an economist now residing in Norway, cautioned that before attracting investors, Zimbabwe must address fundamental issues such as inflation control and instilling confidence in its new currency, the Zimbabwe Gold (ZiG).
Basopo expressed skepticism about the ZiG, citing concerns about its unconventional backing by gold reserves and its susceptibility to fluctuations.
“Inflation, meanwhile, is running at an annual rate of 55 percent — lower than the hyperinflation which plagued Zimbabwe in the past, but still high enough to make the cost of living difficult for most ordinary Zimbabweans,” Basopo remarked.
Despite the skepticism, Minister Ncube reiterated the government’s support for the ZiG, emphasizing its backing by reserves and the forthcoming transparency in revealing reserve levels to the public.
However, Basopo stressed that alongside economic stability, diaspora investors also seek political rights, particularly the right to vote in Zimbabwean elections.
“This is a government which has lost all its goodwill, and it has lost all of its international credibility to access credit facilities,” Basopo argued.
Government officials have not provided details on the outcomes of the investment summit, and inquiries from VOA remained unanswered.
The conference, reportedly attended by several hundred participants, serves as a critical juncture for Zimbabwe as it seeks to rejuvenate its economy and regain investor confidence amid ongoing challenges.
