MIDLANDS STATE

UNIVERSITY
FACULTY OF ARTS

DEPARTMENT OF DEVELOPMENT STUDIES

NAME MELBAH
SURNAME CHIFAMBA
REG NUMBER R213866M
COURSE CODE MADS 731
COURSE- Development Theories
LECTURER -Dr Sillah
PRESENTATION TOPIC a)Come up with a list of 8 possible industries that Zimbabwe
can establish and leverage on from 2021going forward and justify your selection.
b)Come with an investment attraction policy which will increase the number of capital
stock companies investing in the country’s industrial sector.
c) Come up with an investment attraction policy which will attract investment by
diasporians in the country’s industrial sector .
COMMENT
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MARK
Zimbabwe is a country that has very rich natural potential,it has second largest reserve of
platinum and chrome ,other minerals like diamonds,coal,gold,platinum ,copper,nickel and tin
are available.It also has adequate infrastructure which represent genuine assets to foreign
investors.However ,the unpredictability of the government economic policies and unstable
political and economic climate in recent years has undermined foreign investment. However
under the new dispensation the country is regulating policies that attract investors both foreign
and local , by trying to establish a predictable ,transparent and non-discriminatory business
environment.Possibble industries that can thrive in Zimbabwe are
minning,agriculture,tourism,ict,manufacturing,energy ,agriculture and transport industry.This
essay is going to explore why it is profitable to invest in Zimbabwe from 2021 going forward.

Zimbabwe has a huge and highly diversified mineral resource base dominated by two
prominenent geological featuresnamely the fampous Great Dyke and the ancient Greenstone
belts,also known as Gold belts.The Great Dyke is layered igneous complex extending north
south for about 550km, it plays host to the worlds largest high grade chromite resource base and
has the worlds second largest resource of platinum group of metals as well as significant reserves
of copper and nickel.With rock ages spanning a period of more than 3000 million years
,Zimbabwes’ heterogeneous geological environment is favourable to occurrences of a variety of
minetrals and ore bodies Bradbury& Worby(1985)The following is an overview of some of the
major minerals found in Zimbabwe ,gold ,more than 90% of gold deposits in Zimbabwe are
associated with greenstone belts which are some of the richest in the world.Othergold deposits
occur in the Limpopo Mobile Belt in the south of the country and in Proterozoic Piriwri rocks in
the North Western part of the country.Diamonds ,Zimbabwe craton presents significant placer
diamond deposits at Chiadzwa points to significant potential in ancient basins on the edges of the
craton.Coal,Zimbabwe hosts large reserves of coal in the lower Karoo rocks of the mid Zambezi
Basin and Save-Limpopo basin .Over 29 coal localities are known with an estimated resourceof
more than 12 billion tonnes.Iron ore,Zimbabwe has major iron deposits which are estimated to be
over 30 billion tonnes of reserves.Deposits with high grade ore are found in Buchwa and Ripple
Creek.

From the above description it is undisputable for one to state that there vast are minning
opportunities in Zimbabwe, investors can engage in actual mining,gold , platinum

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,chrome,coal,diamonds and iron and mineral processing like chrome refinery and diamond
processing.This can also be a key source of other sectors of the economy,including
infrastructure,energy and transportation.In the end there will be diverse return benefits for
investors and the country at large as mining is a profitable industrial sector as evidenced by
South Africa where the mining value chain is the historic bedrock of South Africas’economy,it
directly contributes more than 300 billion to Gross Domestic Product ,directly employs more
than 450 000 people ,and is the economic anchor of many communities around the country
Goodman et al (2019).Hence the mining sector will be critical to accelerate growth in
Zimbabwes’ broader economy ,given that the life of a mine can extend to 30 years or more so it
is an important driver of long term investment.

Zimbabwe has diverse energy resources, it .is rich in large deposits of coal resources which are
largely underdeveloped .The countrys economic potential is underpinned by the best solar
raduation,vast biofuels ,significant wind potential,perennial rivers for small hydro prpojects and
cosal bed methane deposits .This has opportunities for hydro power,solar energy,wind
energy,coal bed-methane,bio-fuels development and biomass and waste.It is imperative for
investors to invest in Zimbabwes’ energy industry because the demand for modern energy in
SADC region is growing .The regional average electrification rate is 45% while Zimbabwe
stands at 40%. Zimbabwe and the region therefore present opportunities for greater uptake of
modern energy.The location of Zimbabwe gives it an advantage over other countries because it is
located at the heart of Southern Africa which makes it strategic and able to supply energy needs
within the regipon.Investors should capitalize on the increased energy demand in SADC and
COMESA regions by investing in Zimbabwe.The country has best climate for growth of
renewable energy projects and vast deposits of coal which can be harnessed through clean
technologies.Energy industry can have success stories as evidenced by Kenya which is
considered as one of the most proactive countries in Africa on electricity access and has
increased from 16% of the population in 2000 and 56% in 2016(World Bank 2016).

The Tourism industry also presents investment opportunities to investors in Zimbabwe, tourism
in Zimbabwe is the fastest growing sector and is recognized as a low hanging fruit .For the year
2018, the sector contributed 7.2% to the Gross Domestic Product,with tourist arrivals reaching
2,579,974 mark ,which is a 6% increase from 2017.The sector ia an expansion drive and seeks to

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diversify the tourism product base by extending investments across the country.Investors can
benefit from expansion and renovation,by building accommodation and conference facilities that
is hotels,lodges and safari camps,restaurants,theme parks ,water sports and cable cars , this is
good ivestment as it aids in generating the much needed foreign currency.It is important to note
that the Government of Zimbabwe has put in a number of incentives which investors can take
advantage of .These are duty rebate on imporyted capital goods,equipment and safari vehicles for
tourism businesses.The government has gazette Victoria falls as a Tourism Special Economic
Zone,this means investors can enjoy tax exemption and duty rebate .Accordng to World Travel
and Tourism Council (WTTC) report (2014) in Bangaladesh .The total contribution of travel and
tourism was 4.4%of GDP in 2013 and is expected to grow in 2014.Travel and tourism generated
1 328,500 jobs directly in 2013 and this is forecasted to grow by 4% in 2014, there is creation of
employment by hotels ,airlines ,travel agents and other passenger transportation services .This
shows that tourism can have a positive impact on the economy of a country.

In Zimbabwe the information and communications technology (ICT) sector has potential to
create many jobs and investment opportunities as it is one of the fastest growing sectors.While
all other sectors of Zimbabwes’ economy experience a period of extreme difficulties due to
Covid 19,the ICT sector presents a tremendous opportunity for economic growth ,without a
doubt ICT is a critical foundation upon which the Zimbabwean economic recovery will occur
Mutisi (2019).The evolution of the ICTs,the internet and especially electronic commerce affect
the business environment at national ,regional and global levels and generate major opportunities
and new market growth and development of jobs ,iindustries and services Tanburn &Singh
(2001) .In the Zimbabwean context investors can take advantage of the Covid 19 pandemic and
come up with softwares that promote e learning, working at home , also come with
technological advancements that deliver technology to people both in urban and rural areas at
cheaper costs .The adoption of ICT in Zimbabwes economy can result into success stories as
evidenced by the case of India which became successful after the adoption of the use of
advanced ICT in its economy.

Agriculture industry also provide an opportunity for investors in Zimbabwe, this can be achieved
through agro-processing.Agro-processing activities can contribute to sustainable livelihoods
through improved incomes ,employment ,food availability ,nutrition and social cultural well

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being from a limited area of land (Simalenga 1996,Proctor et al 2000).The overall potential of
agro-processing is huge as it can increase the value of crops of poor farmers and thus yielding
high returns ,expand marketing opportunoities ,extend shelf –life of commodities and increase
diverseity of products.For example in Zimbabwe ,the soya bean processing option will realize
higher margins than sunflower seed processing mainly because of the higher value of soya
meal.There are also opportunities for fruit and vegetable drying ,canning ,bottling ,juicing and
freezing (Price Walter House 1994).According to Gondo et al 2010 the comercialisation of
Mopani worms provide export opportunities worth millions of United States dollars to South
Africa,Botswana ,Zambia and the Democratic .This reveal that the agriculture industry provides
many investment opportunities for investors in Zimbabwe.

Manufacturing industry in Zimbabwe offers a diverse opportunities for investors ,.According to

the Zimbabwe Investment Authority (ZIA) the manufacturing industry in Zimbabwe produces
more than 6000 products.These range from food,clothing,fertilizer,pesticides,metal
products,electrical and machinery .In clothing and textile less than 10% of active manufacturers
produce for export despite growth in the regional markets ,capacity utilization is currently very
low for companies like Kadoma textiles and that is an opportunity for invesstors coming into the
industry,heavy reliance on imported second hand clothing (mabhero) is not sustainable for both
the country and local clothing and textile industry players .The chemical industry in Zimbabwe
offers a number of products which include fertilisers,pesticides,soaps,and cleaning
products,perfumes and cosmetics among others.Timber and furniture is also another field that
can be ventured,manufactures produce a variety of products for the home,office and garden, The
Glen view Area 8 market is an example where injection of capital and technology is needed
.There is room for development of specialized manufacturing concerns to produce footwear and
luggage from locally available hides and skins .Hence the manufacturing industry presents
diverse opportunities for investors.

The transportation sector is an important industry sector in the economy that deals with the
movement of peopleand products .The location of Zimbabwe in the SADC region offers the
country as a hub for infrastructure to service the region .Growth of a sector requires adequate
transport networks to support it ,hence investors can implement development in the railway
industry in Zimbabwe .According to the National Railway in Zimbabwe ,there are opportunities

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to construct the Lions Den to Kafue Rail link project , this will result in a new link between
Zimbabwe and Zambia .Alao there is Shamva to Moatize rail link project ,which will result in a
new rail link between Zimbabwe and Mozambique .As a result new trade links for exports and
imports will be created ,resulting in a positive impact to the economy .

From the above discussion it is undeniable to state that there are many promising and lucrative
business opportunities in Zimbabwe for investors, however the unpredictability of the
government economic policies and the unstable political and economic environment make it
unfavourable for investors to invest in the country.Therefore it is imperative to enact a Special
Economic Policy that protect investments from political influences,this policy will aim to protect
investors whether locals or foreigners, the investors will have a say when it comes to policies
that govern the economy , so that businesses will have political immunity in case of a swift
change of power in politics .Often policy makers change policies with the coming in of new
governments thereby disadvantaging the business owners .For example in Zimbabwe during the
former president regime there was the Indeginisation policy ,which was drastically changed by
the now president to Zimbabwe is open for business mantra.Thus policies that advocates for
sustainability in investments should be implemented.

Most Zimbabweans have left the country due to socio,economic and political reasons , therefore
there is a great need to engage the diaspora in the economy building of Zimbabwe.Members of
the diaspora can make contributions to the economy in the form of social remittances ,that is
remittances,skills , knowledge,establishing networks and connections and investing in business
ventures or technology transfer.This can be possible if the government adopt the aid strategy ,this
will go a long way in that it will make philanthropic work possible ,for example the shippind and
distribution of donations of equipment and supplies for health facielities ,books for schools,and
clothes and other consumables for opharns,it will develop programs to build public and private
sector capacity through virtual training and develop an IT –based sills locator to facilitate self
reporting by diaspora-based professionals and build a database of expertise within the
diaspora ,which both the public and private sector will tap into.

To conclude the above proposed investment opportunities can make a dual positive impact to
both the investor and Zimbabwe as a country ,hence Zimbabwe offers great opportunities for
investment .Most of them are in the National Development Strategy thus one can state that there

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go hand in hand with the policy that is driving the countries economy from 2021 going
forward,however it is important to state that key issues like corruption and policy making have
to be addressed for the successful implementation of the investments.

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Engineer Jacob Kudzayi Mutisi-Chairmain of the ICT Dvision of Zimbabwe Institution
Engineers(ZIE).Spiked .co.zw/ Best Zimbabweans News online

Gondo .T,Frost. P,Kozonayi.W,Stack.J,Mushongahande.M (2010).Linking knowledge and

Practice .Assesing options for Sustainaible use of mopane worms (umbrasia Belina in Southern
Zimbabwe .J.Sustain .Dev.Afr,12(4):127-143.

John Bradbury and Eric Worby Africa Development/

Africa Development
Africa et
Development
Vol.10.No.4(oct- dec.1985)pp143-169
Published By :
Codesria
http://www.jstor.org/stable/24496165.
Proctors .S,Henson.S,Loader.R.Masakure.O,Brouder.A,Bhila.L,Sigauke.N(2000),Facilitating the
effective production and Marketing of processed food products by small-scale producers in
Zimbabwe .Output I:Literature in Zimbabwe.Output 1:Literature review .Project R7485:Crop
Post Harvest Programme,
Simalenga T.E.(1996).Small scale decentralized agro-processing paper presented at “Small-scale
Decentaralised Agro-IndustrySeminar’Harare.
Tanburn.J,and Didar Singh .A(2001).”ICT and Enterprises in Developing countries Hype or
Opportunity ?’Seres on Innovation and Sustainability in Bussiness Support Services(FIT)

Zimbabwe Investment Authority Act Act 4/2006,6/2015(s.17)

Distributed byVeritas Website:wwww.veritaszim.net

World Travel and Tourism Council(WTTC):Annual Report-2014:The Economic Impact Of

Travel and Tourism 2014

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