Vice President Constantino Chiwenga flanked by Cabinet Ministers and Members of SADC Secretariat in Harare
By George Swarei
Harare, July 29, 2024 – In a significant move towards fostering regional economic integration and industrial growth, the Vice President of Zimbabwe, Hon. Gen. (Retd) Dr. Constantino Dominic Guveya Nyikadzino Chiwenga, delivered a keynote address today at the Investment Conference held at the Harare International Conference Centre (HICC). The conference, held in conjunction with the 7th SADC Industrialization Week, drew prominent leaders and investors from across the Southern African Development Community (SADC) and beyond.
Under the theme, “Promoting Innovation to Unlock Opportunities for Sustainable Economic Growth and Development Towards an Industrialized SADC,” the event focused on enhancing policy environments, improving investment efficiency, and developing robust regional value chains. Chiwenga underscored the conference’s role in fast-tracking the SADC Industrialization Strategy and Roadmap, highlighting the region’s immense potential and significant contributions to Africa’s GDP and Foreign Direct Investment (FDI) inflows.
Vice President Chiwenga at the Botswana Exhibition stand
“The objective of this Investment Conference is to expedite the implementation of the SADC Industrialization Strategy and identify industrialization projects for joint implementation by the public and private sectors in SADC member states,” Chiwenga stated. He emphasized the importance of leveraging key resources and strategic initiatives to drive sustainable economic growth and development in the region.
The SADC region holds significant investment potential. According to SADC reports, its 16 Member States contribute to 27.78% of Africa’s GDP and attracted 55.10% of total Foreign Direct Investment inflows to Africa in 2021. The region boasts valuable minerals, offering investment opportunities in extraction, beneficiation, and value addition. Recent discoveries of lithium in the Democratic Republic of Congo and Zimbabwe present opportunities for lithium beneficiation and in the long term the manufacturing of lithium batteries and be a key player in the manufacturing of electrical vehicles. SADC Member States should capitalize on these resources, and invest in value addition and beneficiation to maximize foreign currency earnings.
VP Chiwenga at the Champion Foods Stand
In view of these and other key resources, SADC adopted the Regional Infrastructure Development Master Plan (RIDMP) in 2012, at the 32nd Summit of SADC Heads of State and Government, which was held in Mozambique. This up-scaled the development of priority projects across six clusters, which are: energy; water; transport; meteorology; tourism and Information Communication Technology (ICT). I am delighted to note that the SADC Secretariat has developed a Compendium of SADC Investment Opportunities, which highlights 45 key regional projects in infrastructure development. These should be implemented as they are essential for sustainable regional growth.
The Africa Continental Free Trade Area (AfCFTA) presents an opportunity for the SADC region to position itself as a premier investment destination in Africa. Collaboration to enhance productive capacities, competitiveness, and attract Foreign Direct Investments (FDI) is crucial. Let us leverage our comparative advantages, such as: peace and stability; educated populace; natural resources; favorable climate; and integrated transport infrastructure, to boost productivity and seize trading opportunities under the AfCFTA.
VP Chiwenga Touring some of the exhibition stands at HICC
In 2006, SADC adopted the Protocol on Finance and Investment to promote investment in the region. This Protocol encourages Member States to attract investors through favorable policies and legislation. The SADC Industrialization Strategy and Roadmap emphasize deeper integration to facilitate increased FDI inflows and integrate regional industries into global value chains. Member States are urged to implement these investment-friendly policies to attract FDI; increase production and productive; and facilitate technology and skills transfers. We need competitive policies that attract and protect investments as well as incentivize private sector investment to stimulate economic growth.
Investment promotion was a core focus, with the Vice President urging SADC member states to adopt investment-friendly policies and incentivize private sector involvement to stimulate economic growth. The establishment of the Zimbabwe Development Investment Agency (ZIDA) and the One Stop Investment Services Center (OSISC) were presented as critical measures to streamline investment processes and harmonize investment laws.
Since 2014 when SADC introduced the SADC Industrialisation Week, for the first time, this Industrialisation week comes with a special edition of an Investment Forum whose thrust is focused on investments in industrial infrastructure; spatial development; and industrial upgrading to modernise our equipment and catch up with the 4th industrial revolution. We are proud to have introduced this special element as the industrial agenda cannot be achieved without a corresponding drive to investment promotion. We have therefore invited Investment Promotion Agencies to also showcase how they are promoting and incentivising investment in various sectors to accelerate Industrialisation.
Investment is crucial for economic growth and regional integration in SADC. As you deliberate during this conference, I urge you to come up with innovative ideas and suggestions on how each Member State can improve the investment environment, promoting intra-regional investment, and attracting higher investment levels that improve investment and business environment. It is also imperative to implement investment cooperation activities between the private sector and Member States to achieve SADC’s goals of regional integration, industrialization, and infrastructure development.
Coming back home, let me assure you that Zimbabwe is a safe and attractive investment destination. The government, led by His Excellency, The President Cde. Dr. Emmerson Dambudzo Mnangagwa, is committed to creating a business-friendly environment and attracting global investments. The Zimbabwe Development Investment Agency (ZIDA) and One Stop Investment Services Center (OSISC) streamline investment processes, reducing registration timelines. Harmonizing investment laws, enhancing investment facilitation, and prioritizing commercially viable projects will catalyze investment and economic development in the whole region.
Zimbabwe’s infrastructure upgrades, energy sector opportunities, and rich mineral resources offer diverse investment prospects for the SADC region and the world at large. Zimbabwe is open to new investments in the energy sector and investors can explore opportunities in Solar Power generation; Clean Coal and coal-to-liquid production; Coal Bed Methane Gas and Gas-to-liquid production and Hydropower production particularly along the Zambezi River as well as mini hydro sites across the country among others.
As you may be aware, Zimbabwe is among the countries in the world endowed with 60 tradable minerals such as gold, platinum, diamonds, coal, and nickel and 17 Rare Earth Elements (REE) that are critical in this technologically driven world. Investment opportunities therefore exist in: Greenfield Exploration; value addition and beneficiation. These opportunities can be explored through Joint Ventures with the various companies and also providing financial and technical support to Small-scale miners.
As the conference progressed, delegates were encouraged to engage with exhibitors showcasing regional investment opportunities, fostering an environment of collaboration and innovation aimed at propelling the Southern African region forward.
The event also celebrated the SADC Secretariat’s efforts in securing funding from development partners such as the European Union and the Arab Bank for Economic Development in Africa (BADEA) for regional projects. Chiwenga called upon leaders in both government and the private sector to ensure that the formulated policies and strategies translate into actionable outcomes.
With these remarks, Chiwenga officially declared the Investment Conference open, setting the stage for a more integrated, industrialized, and economically vibrant SADC region.
