Zimbabwe should consider incentives to attract Diaspora Investment

Zimbabwe should consider incentives to attract Non Resident Zimbabweans (NRZ) Diaspora Investment as efforts to rebuild the Zimbabwe Economy are intensified. Non Resident Zimbabweans (NRZ) played a critical role during the acute foreign currency shortage days through remitting millions of dollars to Zimbabwe at a time when there was no source of foreign currency.

In addition the NRZ has continued to invest through various means including real estate investments and investment in small to medium size businesses. However these efforts and contributions have largely gone unnoticed due to the lack of proper classification and categorization of the investments by the NRZ.

It has been widely reported that Zimbabwe Investment Authority (ZIA) has rejected pleas and representations by Non Resident Zimbabweans (NRZ) in the diaspora to implement NRZ -specific special concessions and tax-break to attract NRZ to unlock fresh investments into the recovering Zimbabwe economy.

Whilst the ZIA should be seen to be implementing and enforcing the rules and regulations it must also be seen to be pro-active in encouraging one source of investment for Zimbabwe that has been reliable and loyal through-out the Zimbabwe socio-political and economic crisis over the last decade. There is need for a partnership between ZIA and the NRZ.

The NRZ has been contributing in various ways including coming as tourists ,investors ,and bread winners which show deep commitment to Zimbabwe and their general interest in assisting the country remain afloat. This effort must be recognized through various ways including specific incentives meant to encourage further investment in the country.

The general trend should be that of co-operation between ZIA and the NRZ. The two need each other in terms of mobilizing investment for Zimbabwe’s economic recovery. The NRZ consists of some of Zimbabwe’s lost human capital during the socio-political crisis of the last decade and this must not be lost permanently to foreign lands.

It is ZIA’s role and responsibility to mobilize this human capital through incentives and information sessions which high light the areas of opportunities and how the NRZ should assist in mobilizing resources required in re-building the Economy.

The NRZ holds the key to Zimbabwe’s economic recovery in various ways. Besides direct investment the NRZ can also act as investment ambassadors who can encourage foreigners to invest in Zimbabwe once various Governance issues are addressed and various steps are taken to show the world that there isn’t selective application of the law and the rule of law is respected.

These are steps that take time as Zimbabwe’s decline happened over many years and it cant be fixed over night but bodies such as ZIA ,Zimbabwe Stock Exchange, Securities Exchange Commission must conduct road shows and meet the NRZ to show case the improving investment atmosphere.

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This article was prepared exclusively for The Zimbabwean Newspaper by GMRI Capital www.gmricapital.com , Division of ENG Capital Group.
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