Zimbabwe Seeks Investment Bank to Unlock Economic Potential, Says Minister Ncube

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LONDON – Finance, Economic Development, and Investment Promotion Minister, Professor Mthuli Ncube, has called on investors to establish an investment bank in Zimbabwe to harness vast opportunities across the economy.

Speaking at the ongoing Zimbabwe Capital Markets and Investment Promotion Conference according to The Herald, Minister Ncube emphasized the critical role such a bank could play in empowering local businesses and driving economic growth.

“Turning to the banking sector,” Minister Ncube remarked, “we currently lack investment banks capable of driving a multitude of investment possibilities.”

He highlighted that an investment bank would provide essential financial tools and expertise tailored for small and medium enterprises (SMEs) and individuals, thereby fuelling Zimbabwe’s economic engine.

Minister Ncube also underscored the necessity of introducing new financial instruments, including catastrophic bonds, green bonds, infrastructure bonds, diaspora bonds, and SME infrastructure bonds. These instruments are part of the Government’s broader strategy to stimulate private-sector investment and support economic development.

The Minister outlined several initiatives aimed at attracting investors, such as Public-Private Partnerships (PPPs) and Independent Power Producers (IPPs). He noted that the Government is keen on collaborating with the private sector across various industries to foster economic growth through joint ventures.

“The Government actively supports IPPs in the renewable energy sector, offering Government Implementation Agreements (GIAs) to facilitate project development,” Minister Ncube added.

Additionally, he mentioned a variety of incentives available to investors in Special Economic Zones (SEZs), including tax holidays, import duty exemptions, VAT deferrals, and reduced withholding tax. In the extractive sector, mining companies can access similar incentives by focusing on beneficiation and adding value to raw materials before export.

Minister Ncube’s invitation to investors highlights the Zimbabwean Government’s commitment to creating a conducive environment for investment, aiming to unlock the full potential of the nation’s economy.