Economic Transformation Bears Fruit
Zimbabwe’s economy is showing promising signs of recovery, with a significant 49% increase in foreign direct investment (FDI) reported in the 2024 World Investment Report by the United Nations Trade and Development (UNCTAD). This surge in FDI is a testament to President Mnangagwa’s economic policies, which aim to create a tertiary-based economy and attract investment through Ease of Doing Business reforms.
FDI Growth Outpaces Regional Average
Zimbabwe received US$588 million worth of FDI, the highest in five years, surpassing neighboring countries Zambia, Malawi, and Botswana. This growth in FDI is expected to lead to the creation of new jobs, both directly and indirectly, in various sectors such as mining, manufacturing, tourism, and energy.
Diversification and Job Creation
The increased economic activity is expected to lead to improved economic growth, resulting in improved living standards and reduced poverty. The giant Manhize Steel Plant, for example, is earmarked to create 25,000 direct jobs. Rural industrialization, a key aspect of President Mnangagwa’s development plan, is also slowing down urban migration and creating employment opportunities for people from rural communities.
Empowering Local Farmers and Stimulating Rural Growth
The $US1 million fruit and vegetable processing plant at Tabudirira Vocational Centre in Mutoko is empowering local farmers by adding value to their produce and saving them transport and accommodation costs in Harare. Similarly, the Marula/Mapfura Processing and Value Addition Plant at Rutenga Growth Point in Mwenezi, Masvingo Province, is stimulating socio-economic growth in rural areas.
Increased Tax Revenues and Improved Public Services
The growth in FDI is expected to lead to higher tax revenues for the Government, enabling improved public services and infrastructure development. The continued improvement of roads under the Emergency Road Rehabilitation Programme will also facilitate business and improve living conditions in rural areas.
A Promising Future for Zimbabwe’s Economy
In summary, the increase in FDI is a positive indicator that Zimbabwe is on the path to economic prosperity. President Mnangagwa’s economic policies are bearing fruit, and the country is expected to see significant economic growth and job creation in the coming years.
