Zimbabwe Investment and Development Agency

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Zimbabwe Investment and Development Agency (ZIDA) is a Zimbabwean investment vehicle meant to transform Zimbabwe into a dynamic national hub for local and global business, investment and innovation. The overall goal is attracting Foreign Direct Investment (FDI) which is critical to reviving industry, generating new jobs and boosting economic performance.

Zimbabwe Investment and Development Agency
ZIDA Logo.jpg
AbbreviationZIDA
PredecessorZimbabwe Investment Authority
FormationFebruary 2020
FounderGovernment of Zimbabwe
PurposeInvestment Management
HeadquartersHarare, Zimbabwe
Location
  • 1st Floor, ZB Life Towers, Cnr Jason Moyo &, Sam Nujoma St, Harare
ServicesOne Stop Investment Services Centre for Zimbabwe
Chief Executive Officer
Douglas Munatsi
Websitehttp://www.zidainvest.com/

Background

The enactment of the ZIDA was meant to officially establish the one-stop investment services centre which is a major milestone in realising the mantra Zimbabwe is Open for Business and in creating the developmental framework for Vision 2030 aimed at turning Zimbabwe into an upper middle income economy. The new law repealed the Zimbabwe Investment Authority Act, the Joint Venture Act and the Special Economic Zones Act, resulting in the dissolution of the Zimbabwe Investment Authority, the Joint Venture Unit and the Zimbabwe Special Economic Zones Authority.[1]

ZIDA houses several agencies that play a role in the licensing, establishment and implementation of investment projects including the Zimbabwe Revenue Authority, Environmental Management Agency (EMA), Reserve Bank of Zimbabwe, National Social Security Authority, Zimbabwe Energy Regulatory Authority, Zimbabwe Tourism Authority, the State Enterprises Restructuring Agency, and specialised investment units within relevant line ministries.

Idea Origin

It all started when President Emmerson Mnangagwa visited Rwanda for the African Union Extraordinary Session of the Assembly of Heads of State and Government in early 2018. While there, he took the opportunity to visit the Rwanda Development Board, where he was impressed by how the board managed to help that country turn into a darling for investors.

The President asked his Rwandan counterpart, President Paul Kagame, to allow the board’s chief executive officer, Ms Clare Akamanzi, to come to Zimbabwe to interact with his officials. Soon after the visit by Ms Akamanzi, attention shifted to the Zimbabwe Investment and Development Bill, which was passed by Parliament at the end of 2019.

The passing of the Bill and its eventual signing into law by President Mnangagwa clearly indicated how the New Dispensation emphasised on investment as playing a big part in its developmental trajectory. After he signed the ZIDA law, President Mnangagwa then appointed United Refineries chief executive Mr Busisa Moyo as the board chair, while top private sector investment executive Mr Douglas Munatsi came in as the chief executive officer.[2]

Management

ZIDA will be overseen by the Office of the President and Cabinet (OPC) headed by President Emmerson Mnangagwa.

The Advisory Board

President Emmerson Mnangagwa appointed nine individuals as Zimbabwe Investment and Development Agency (ZIDA) Advisory Board Members. The Board will be Chaired by Mr Busisa Moyo who is already a member of the Presidential Advisory Council (PAC).[3]

The following are the appointees:

  1. Mr Busisa Moyo (Chairman)
  2. Mr Douglas Munatsi (CEO)
  3. Dr Tobias Takavarasha
  4. Mr Kenneth Richard Rupert Schofield
  5. Dr Sylvia Janet Utete-Masango
  6. Mrs Sithandile Ngwenya
  7. Ms Tariro Ndebele
  8. Dr Engineer Michael James Tumbare
  9. Mrs Nancy Samuriwo
  10. Mr Moosa Hanif Allana

ZIDA's devolution perspectives

Looking at the numbers, for Zimbabwe to become an upper middle-income economy, there is need to get to US$4 000 (Gross National Income (GNI) per capita). That means the economy need to grow at a rate of 11 percent per annum. Economists will know that no one has grown at that level except China and to a less extent Botswana in the past 20 years. The task ahead is really heavy lifting. The country cannot achieve that level of growth at the rate it had been doing things and with the energy that was being used.

When done with the National Development Strategy (2021-2025), it should be able to prove to Finance and Economic Development Minister Professor Mthuli Ncube and the chief executive of the country (President Mnangagwa) that this growth rate is achievable and credible and it meets the vision of building an economy that is going to be upper middle-income.

It also means that they have to disaggregate that growth target to every province, meaning that each province needs to build its own balance scorecard, for example, in the United States, California is bigger than some countries, and in South Africa, the economy of Gauteng is bigger than other countries.

All provinces should grow by an average of 11 percent, that is compound growth which means that the task ahead for all is huge. Other provinces that are more endowed with resources can grow better than this. Provincial economies will be key in the achievement of the country’s vision of being an upper middle-income economy by 2030.[4]

References

  1. Farirai Machivenyika, [1], The Herald, Published: 08 February, 2020 , Accessed: 26 March, 2020
  2. Lovemore Chikova, [2], Herald, Published: 6 January, 2021, Accessed: 28 February, 2021
  3. [3], Pindula, Published: 25 March, 2020 , Accessed: 26 March, 2020
  4. Douglas Munatsi, [4], The Sunday Mail, Published: 28 September, 2020, Accessed: 28 February, 2021