INVESTMENT AND TRADE OPPORTUNITIES IN ZIMBABWE

OUTLINE OF PRESENTATION• Country Profile• Why investing in Zimbabwe?• Opportunities:

• Agriculture• Energy• Mining• Manufacturing• Transport• Real estate• Tourism

Scope Of The Presentation

• Country Profile• Why invest in Zimbabwe?• Areas of Investment• Current Investment Activities• Summary of Challenges and Opportunities• ZITF• Conclusion

Country Profile (facts and figures)

• Population: 13 million• Capital city: Harare• Area: 390757 km2

• Climate: Tropical (Summer – November to March)• Airports: 3 International• Railway infrastructure: Hub to Botswana, Mozambique, Zambia and South

Africa• Road infrastructure: Hub as rail (97,267 km with 20% paved)• Arable land: 10.9%• Area under irrigation: 1,500 km2

• Internet users: 5.2 million (40%)

Why invest in Zimbabwe?

Why invest in Zimbabwe? (cont’d)

• Skills availability• Natural resources• Infrastructure• Communication system• Remittance of after-tax profit• Mining rebates• Agriculture incentives

Areas of investment

Agriculture: • Joint venture with the government/individuals in tobacco, cotton, citrus, soya

and wheat• Dairy industry and dairy products• Beef industry and processing• Hot culture• Chemicals• Irrigation systems and equipment• Agricultural machinery

EnergyOpen areas of investmentProject Output Capital Outlay

Batoka Gorge (Hydro) 800 MW 2.2 billion

Coalbed Methane 300 MW 580 million

Hwange Power Station Life Expansion

124 MW 500 million

Hwange Power Station Thermal 600 MW 2.148 billion

Refurbishment

Harare Power Station (Thermal) 120 MW 85 million

Munyati Power Station 90 MW 90 million

Mining

Mining (cont’d)Summary of investment opportunities by commodity

Manufacturing

Clothing and textiles:• Investment in management and technical skills• Investment in joint venture, manufacturing and marketing• Investment in new technology• Investment in textile design to attract customers from a wider market• Investment in under utilized capacities in existing industries

Transport

• Road

• Rail

• Air

Investment in Rail Transportation

• Rehabilitation of rail network• Rehabilitation of rail track• Refurbishment of traction and rolling stock• Rehabilitation of the signaling and telecommunications systems

Road Infrastructure

• Bukwa-Rutenga-Boli-Sango Boarder post (203 km)• Mt Darwin-Mukumbura (80 km)• Bindura-Shamva (70 km)• Wedza-Sadza (22 km)• Kwekwe-Lupane (40km)• Murambinda-B/Bridge (123 km)• Gutu-Kurai (22 km)• Headlands-Mayo (40 km)• Mvurwi-Kanyemba (150 km)

Air Transport

Runways:• Prince Charles ($20 million)• Hwange National Park ($15 million)• Masvingo ($20 million)• Kariba [new] ($173 million)• Gweru [rehab + new terminal] ($10 million)• B/Bridge [new] ($20 million)• Buffalo Range [extension] ($15 million)• Mutare [new] ($173 million)

Real Estate

• Low income housing units• Water and sewage reticulation

Tourism

Current investment activities in ZimbabweChinaKey investment areas:• Contract tobacco farming• Contract and joint venture in cotton production• Multi-million dollar gas exploration• Expansion of Kariba South Power Station (300 MW)• Diamond extraction and marketing

Current investment activities in Zimbabwe (cont’d)Russian Federation• PGM exploration and mining investment worth $4 billion• DTZ-OZGEO mining diamonds and gold and in agri-ventures• Other projects under discussion

Brazil• Exporting agricultural machinery worth $93 million

Major Challenges

• Liquidity – constraining industrial re-tooling and working capital• Limited external lines of credit• Loss of productivity – erratic supply of key utilities such as energy and water• Poor transport infrastructure• Inadequate irrigation infrastructure – (Arable land under irrigation: Africa – 7%;

SSA – 3.7%; in comparison to Asia – 41% - source: FAO 2014)• Influx of cheap and sub-standard imports• Depressed domestic market demand• Thriving informal sector estimated at 80% - a lot of wealth is not accounted for

Summary of OpportunitiesAgriculture

Summary of Opportunities (cont’d)Mining

Summary of Opportunities (cont’d)Energy

Summary of Opportunities (cont’d)Tourism

Zimbabwe International Trade Fair