World Economy

Graft a Stumbling Block to Zimbabwe FDI

Graft a Stumbling Block to Zimbabwe FDIGraft a Stumbling Block to Zimbabwe FDI

Zimbabwe parliament says corruption is the key stumbling block to the attraction of Foreign Direct Investment (FDI) among many other problems stifling national development.

Presenting a report on FDI, the Foreign Affairs Portfolio Committee Chairperson, Amos Midzi, said corruption should be dealt with if the country is to attract investors, AllAfrica reported.

“Corruption remains a major economic challenge and a major disincentive to local and foreign investment,” Midzi said.

“Transparency and good corporate governance in public and private sector is critical in boosting investors’ confidence,” the report stated.

Zimbabwe is ranked among the most corrupt countries in the world with ministers occasionally accused of demanding kick-backs from potential investors.

“Government must work hard to improve the business environment in Zimbabwe for smooth flow of foreign direct investment,” the report stated.

The committee interviewed officers from the Confederation of Zimbabwe Industries, the Zimbabwe Investment Center, the Ministry of Foreign Affairs and the Ministry of Youth amongst other stakeholders.

Besides corruption, the report also cited “sanctions” by the European Union and the US and inadequate funding of the Zimbabwe Investment Authority (ZIA) as some of the major challenges facing the country.

The committee also recommended vigorous re-engagement with the West.

Mberengwa East legislator, Makhosini Hlongwane, said government must ensure the ‘Look East Policy’ is consolidated as it has offered the country complimentary markets during the hard times.

“We need to ensure this policy is promoted as it has created important alternative markets,” he said.

The Midzi-led committee also said the current investment levels are not sufficient to sustain the aspirations of the government ZIMASSET economic blueprint.