Zimbabwe Economic News: Investment Prospects Escalate, Commodity Bourse to Open, Mining sector poised for growth, Hlanganani expo Kicks Off
Prospects for investment in Zimbabwe
First, we note that Zimbabwe’s trade and investment could receive a major boost once the country becomes a member of the African Trade Insurance, Trade and Commerce Deputy Minister Mike Bimha has said. But the Government needs to raise an estimated US$25 million to become a member of the group which provides security to foreign investments against political risks and enhance access to lines of credit.
Mr Bimha was speaking at the inaugural Credit Insurance conference in Harare yesterday. “The insurance scheme would cover credit and political risks on investments and trade transactions into, within and out of Africa that is hindering growth of productive activity in the continent,” he said. Friday 19 October 2012. Herald
Commodity exchange to begin operations
Furthermore, Cabinet has moved in to deal with delays in operationalising the country’s commodity exchange following a standoff between key government ministries spearheading the process, a government official has said.
Industry and Commerce deputy minister Mike Bimha yesterday told delegates attending the inaugural credit insurance conference in Harare that discussions were on to revive the exchange which was launched last year.
The Commodity Exchange of Zimbabwe was launched in January last year, but was yet to start trading after a row between the Industry and Commerce and Agriculture ministries over its modus operandi. Banks, farmers’ unions and the government were expected to hold stakes in the exchange.
“It went through the right process. It was something being initiated by my ministry. We conducted the necessary consultations and we went through the normal Cabinet process for approval, which we got and obviously that was followed by the launch,” Bimha said.
“However, what then happened was that the Ministry of Agriculture later on brought certain issues that they felt were pertinent and it was like we had to listen to them, to engage them. This resulted in shelving of the entire process.
“But I am happy to report that Cabinet has resuscitated that process and there are meetings taking place within the Ministry of Industry and Commerce, the Ministry of Agriculture and other relevant ministries to ensure that some of those issues are addressed. I’m sure we should be able to announce something positive very soon.”
The Exchange, was initially expected to start exclusive trading of grains, cereals and oil seeds. Friday 19 October 2012. Newsday
Mining sector poised for growth
In a forecast that will fortify the country’s economy, the mining sector is poised to grow to $561 million by 2016 buoyed largely by positive performance of gold and platinum, an international report has shown.
Regarded as one of the fastest growing sectors in the economy, mining grew by 47 percent in 2009, 44 percent in 2010, 25,8 percent last year and could grow by 16 percent this year on the back of several investments in gold and platinum mines.
According to a fourth quarter mining report released yesterday by the Business Monitor International (BMI) Zimbabwe’s mining sector is set for rapid development as the country dramatically recovers from two decades of declining output.
Zimbabwe is richly endowed with deposits of chrome, gold, nickel and platinum, among other minerals.
Its gold reserves are among the largest in Africa, while it hosts the second-largest platinum reserves in the world. Thursday 18 October 2012. DailyNews
Hlanganani travel fair kicks off today
THE Zimbabwe Tourism Authority-organised Sanganai/Hlanganani World Travel and Tourism Africa Fair kicks off at the Harare International Conference Centre today.
The four-day premier international travel and tourism exposition is running under the theme “Celebrating Africa’s Tourism Diversity” and will close on Sunday. The travel fair will, however, be opened to the public on Saturday.
At least 1 200 exhibitors – up from 746 last year – will take part at this year’s expo. International exhibitors will come from across Africa, the Middle East and Europe. Others will be from the United States, Asia and the Pacific Islands.
Addressing the Sanganai/Hlanganani travel fair cocktail on Tuesday, Tourism minister Walter Mzembi speaking on behalf of Vice-President Joice Mujuru said the increase of foreign exhibitors had placed the exposition on a higher level in the tourism industry.
“I am reliably informed that this year’s exhibition has witnessed a 26% increase in size and that the total number of exhibition stands rose from 206 in 2011 to 257 in 2012. The number of foreign exhibitors also increased from 24 in 2011 to 85 this year. This is very encouraging indeed and places Sanganai firmly on its position as one of the top-three travel shows on the continent,” Mujuru said. She added that the government supported tourism development in Zimbabwe. Thursday 18 October 2012. Newsday