Copy China, get FDIs: BCZ

Zimbabwe should emulate China's open-door policy which has spurred Foreign Direct Investment,DrJesimenChipika , a senior researcher with the Business Council of Zimbabwe, has said.

According to a study carried out by BCZ, China is bringing in billions worth of investments by linking the country’s economy with international investors and markets.

She said in 1997, China approved about 21 046 FDI projects and received over $45 billion worth of investments.

“From 1993 to 2001, China was the world's second-largest recipient of FDI after the United States of America (USA),” she said in Bulawayo during a Zimbabwe National Chamber of Commerce Indigenisation Indaba.

She said for Zimbabwe to benefit from FDIs, national confidence building in the areas of political stability, investment climate and the banking sector, was urgently required.

She said China was one of the countries that had embraced the need to empower local and indigenous people by restricting access to some sectors in favour of local investors.

“China sets a limit of 50% foreign ownership for joint venture insurance companies, or 25% if the foreign company is in a domestic insurance company as a strategic investor,” she said.

She said adequate funding for the indigenisationprogramme in Zimbabwe through innovative multiple sources was central to its success.She also highlighted that it was important for the government to design an attractive FDI package for investors intending to partner with locals.

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