Zimbabwe which has been shunned by most investors because of the poisoned political environment and uncertainty has turned to South Africa for investment.
A delegation of South African business people is in Harare for the fourth edition of the South Africa-Zimbabwe Investment Forum.
Thirty-five firms from South Africa, led by the country’s Deputy Trade Minister Elizabeth Thabethe graced the event to look for investment opportunities in various sectors of the economy.
Zimbabwe has been shunned by the West for its political instability and controversial indigenization policy that compels companies to surrender a 51% stake of their shares to locals.
Thabethe acknowledged the relevance of Zimbabwe’s indigenization policy saying South African firms operating in Zimbabwe are willing to comply with the black economic empowermetn law.
The policy has been blamed for driving away potential investors. Industry and Commerce Deputy Minister Mike Bimha said besides direct benefits, indications show deepening economic ties between South Africa and Zimbabwe.
But critics of the latest drive said it will only benefit South Africans as they are bringing in finished goods and thus destroying local industries which have no capacity to compete.
Zimbabwe National Chamber of Commerce president Oswel Binha told VOA the investment drive is a step in the right direction for Zimbabwe.