ZIMBABWE is targeting a 69% increase in foreign direct investment (FDI) on the back of policy measures introduced in the 2015 budget.
Presenting an overview of the state of the economy at a workshop last week, Finance ministry permanent secretary Willard Manungo said FDI in 2015 is projected to increase to $591 million from $349 million in 2014, on the back of continued implementation of the ease and cost of doing business reforms.
News agency Financial Express quoted Manungo as saying the government had to redouble its efforts in growing the economy and seeking alternative sources to boost economic activity.
The move by the government comes on the back of increasing realisation by all stakeholders that the country desperately needs FDI if the economy is to recover.
Zimbabwe’s economy is currently in doldrums and the Finance ministry revised revenue projections less than two months ago.
In his budget presentation in November 2014, Finance minister Patrick Chinamasa had forecast 2015 revenues of $4 billion, but has since made a downward revision to $3,55 billion as the economy continues to slow down.
The economy’s downward spiral has affected countries that trade with Zimbabwe, with the country’s 2014 import bill dropping to $6,37 billion from $8 billion in 2013.
Aggregate demand in the country has continued to fall amid company closures and non-payment of salaries.
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This has seen big retailers like OK Zimbabwe recording year-on-year internal inflation of -5,6% (half-year 2014) against official December 2014 inflation of -0,80%.
– Fin24
