Building vibrant and tolerant democracies
Jamille Jinnah, Director of Malachite
Despite positive economic developments since the installation of the Inclusive Government (IG) in early 2009, the international investor community remains wary about investing in Zimbabwe. Initial international interest in potential business and investment opportunities has faded as tensions have risen and talk has refocused on political issues, such as indigenization and the next elections. Foreign Direct Investment (FDI) has fallen short of the levels required to cure the illiquidity that defines the postdollarization economy.
However, Zimbabwe does offer very real opportunities for the long-term investor. Indeed, hesitation on the part of many provides the few with the chance to gain a first mover advantage in an economy that is starved of liquidity yet filled with opportunity...
...In an economy starved of liquidity, cash is king. The investor who comes with cash will find assets and opportunities that will be attractively priced and could prove highly lucrative with the right ‘on-the-ground’ skills for implementation. A small number of aggressive international investors are already forging ahead in strategic sectors. They are only too aware that Zimbabwe provides a window of opportunity to gain a competitive advantage and generate major returns in the medium term. They are equally aware that this window will close quickly when everyone else marches in bringing with them mountains of competitive international capital.
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