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World Bank optimistic about new cabinet – The Zimbabwe Mail



Bretton Woods, the World Bank, says that the work outlined by the new cabinet should determine the flow of foreign direct investment (FD) to the country, as investors increasingly warm up for the Second Republic.

Two weeks ago, President Mnangagwa appointed a new cabinet and Professor Mthuli Ncube landed the crucial item Finance and Economic Development.

World Bank Manager for Zimbabwe Mukami Kariuki, said that while the region experienced a decline in FDI in 2017, there were opportunities to increase it for the country. Last year, the influx of FDI to Sub-Saharan Africa fell by 28 percent to $ 28.5 billion.

Ms. Kariuki said that the new Treasury boss had cut out his work and expected to come forward with measures that would help the economy move forward and attract much-needed BDI.

"New work that will be outlined by the new Minister of Finance and the new government should help determine the course of the country and attract foreign direct investment", she said last week at the standardization organization conference of Zimbabwe (SAZ) in Victoria Falls

She emphasized political stability and the macroeconomic environment as some of the main determinants of foreign investment.

Infrastructure, rule of law, tax regime and policy consistency are some of the factors that are considered before investors place their money in a country. Some investors also look at indicators such as the World Bank Doing Business Report, Global Competitiveness Report, International Monetary Fund (IMF), World Economic Outlook reports and the African Investment Index.

For example, the World Bank's Doing Business Report looks at the 11 areas of a business from starting a business to regulatory procedures, dealing with building permits, obtaining electricity, registering ownership and access to credit, among others.

Ms Kariuki said that efforts are also needed to improve the country's competitiveness, in line with regional levels, so that Zimbabwe also attracts foreign entry into the region and is also in line with the Zimbabwean 2030 vision. Zimbabwe strives for a middle-income economy by 2030.

"International standards must be complied with to increase investor confidence and attract foreign direct investment, and also align your standards with your plans for the future, in particular Vision 2030," she said.

In an interview on the sidelines of the conference, SAZ Director-General Dr Eve Gadzikwa, it was positive that the Second Republic would offer a favorable climate for business growth, increased foreign direct investment and a flourishing economy.

She said that the impetus was there for a rapid economic recovery.

"We are optimistic that the new government will take this nation to another level where the economy is flourishing, we have been in isolation for a long time, but there is hope, I think the new dispensation is our chance to show what we can do and that it is possible to grow, "she said.

Since last November, when President Mnangagwa took over the leadership of the country, the investment obligations went up.

The President has also emphasized that Zimbabwe is "open to business" and has shown that it is committed to working with the international community to raise frozen relations in the past two decades.


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