Zimbabwe is soon to witness double investments worth $500 million from Moti Group, following its new government’s outlook towards foreign investments where the country’s economy is concerned.
Moti in partnership with a Zimbabwean company, Sakunda Holdings plans to spend $250 million in the next four year on projects that cover chrome-ore mining to fertilizer, diamond polishing and pharmaceuticals, asides an already invested $250 million in Zimbabwe’s mining industry, report says.
The company is looking to make investments before investors influx into the country would hike the prices of assets once election is schedule, Zunaid Moti, the company’s chairman told Bloomberg in an interview. Having investment plans in sight, Moti would be one of the biggest investors in the landlocked country’s economy.
Moti Group had previously run into trouble with Mugabe’s administration over the ownership of a chrome project, after it had already spent $200 million on the operation. Moti now intends to increase production at its African Chrome Fields Ltd. unit through the use of small-scale artisanal miners, as there has been a recent change in the country’s government.
Ousting of Robert Mugabe as president in November 2017 saw the coming to power of a new administration headed by Emmerson Mnangagwa –75, who took Mugabe’s place after the military briefly took control.
Faced the responsibility of reviving the long sleeping economy, Mnangagwa made it clear that Zimbabwe is open to business negotiations from interested investors, adding that he plans to lighten local ownership policies in the country and also reconsider lenders including the International Monetary Fund.
Zimbabwe’s economy was halved in size in 2000 by a cash crisis that limits withdrawals from banks and government’s inability to pay workers as at when due, resulting to an unfriendly situation for the country such as widespread of poverty and 95% unemployment rate.
Low levels of production and the attendant trade gap, insignificant foreign direct investment and lack of access to international finance due to huge arrears are said to be significant causes for the poor performance of the Southern African country’s economy.
Investing in Zimbabwe’s economy looks promising at the moment, considering the more comfort measures surrounding the safety of assets in Zimbabwe, with insurance companies reducing their fees as fears over expropriation ease.