Browsing: COMESA

Zimbabwe: Best sectors to invest in into the next decade

Investing

A report published by Lexology on January 18, 2022, Zimbabwe’s economy is largely driven by the mining, agriculture, and tourism sectors. However, because of Zimbabwe’s foreign currency shortages, there is a significant focus on export-oriented and foreign currency-generating activities.

This allows investors, businesses, and the government to retain value and meet the country’s forex needs. Zimbabwe’s main exports are minerals, agricultural produce, and soft commodities. She also has large reserves of chromite, coal, gold, and iron ore, among others. The country is also one of the world’s largest growers of tobacco.

According to research by Mordor Intelligence, Zimbabwe is a signatory of several bilateral and international agreements (MIGA, OPIC, ICSID, and UNCITRAL) that protect the investments of the companies in Zimbabwe. Zimbabwe has cheap educated, and competitive labour, well-developed infrastructure, and easy access to regional and global markets through its membership in AU, COMESA, SADC, COPAC, and CISSA. Zimbabwe offers free movement of investment capital and attractive investment incentives.  Zimbabwe allows for 100% Foreign Direct Investment in almost all sectors barring a few.

Cold Storage Company renamed CSC-Boustead Beef Zimbabwe, opens after two decades

Investing

The company was struggling following a significant decline in the late 90s. In a related article published by ZBC News at its utmost, the giant used to employ over 4,500 people thereby making it one of the country’s biggest employers.

Further, in addition to beef production, the company also produced a large variety of by-products such as hides, neat’s foot oil, ox gall, edible offal’s, tallow and dripping, canned meats, ham, blood meal, meat and bone meal and pork sausages among others. The institution is the lifeblood of livestock farmers and the leather value chain.

The government is targeting the revitalization of the institution under the National Development Strategy One (NDS1). The government in May 2019, signed a US$400 million joint venture farming Concession Agreement with Boustead Beef Zimbabwe, a United Kingdom-based investor. The venture was reportedly based on a Concession Agreement under Rehabilitation, Operate and Transfer (ROT) Terms.

The fund was allocated for capital expenditures and as working capital for the business. Apart from that, it will be used to pay in full CSC’s financial debts of US$43 million. Rentals of US$100,000 per year will also be paid during the first five years of the concession agreement.

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Agriculture could drive COMESA economy to prosperity: Experts

Industry and Trade

Data by the bloc reveals that the sector provides livelihoods for about 80 per cent of the region’s workers, and accounts for about 65 per cent of foreign exchange earnings.

The continent, which COMESA Secretary General Chileshe Kapwepwe said last month has the potential to feed its self and export to the rest of the world, has remained a net food importer for the last 15 years.