beml.jpgIndian’s largest mining and construction firm, Bharat Earth Movers Limited (BEML) is tomorrow expected to conclude a US$ 40 million joint venture deal with a local firm SGI in a move expected to unlock funds and expand production.

The arrangement is being done at a time when several external investors express an interest in the country’s projects through partnering local companies.

Speaking after arriving at the Harare International Airport, BEML Managing Director, Mr Vellalore Rangsway said the transaction between the firm with SGI Group of companies   will help in the creation of jobs and development of the local mining and construction sector.

“This transaction is crucial and we hope it will go a long way in easing some of our challenges,” Mr Rangsway said.

SGI Chairman, Mr Phibion Makoni said the commitment shown by the Indian company is a reflection of investor confidence in the country.

“We hope this transaction will be crucial in our efforts to boost economic development,” said Mr Makoni.

The local industry is in need of fresh capital aimed at increasing productivity and facilitate the revival of the economy through focusing on joint ventures.

Meanwhile, economic stakeholders say Zimbabwe is poised to emerge as one of the leading investment attraction destinations following renewed interests from external investors on the country’s business opportunities.

 

As several foreign investment mission continue to come into the country with a view of assessing prospects  of doing business, stakeholders are optimistic that  in spite of some challenges  affecting productivity there are opportunities for an increase in foreign direct investment in the short to long term.

 

While investors from countries such as Russia, India, Japan, China, Germany, Iran among other countries have expressed interest towards investing into the country the major concern is on whether such investment delegations will fulfill their promise for the benefit of the economy.

 

However, an industrialist, Mr Samuel Mudavanhu believes while the investment missions have come to explore opportunities chances are high that they will establish their projects within the country.

 

“The chances are high that they will come and invest although there is still need to ensure that what they have put forward is implemented,” Mr Mudavanhu said.

 

While information from the Zimbabwe Investment Authority (ZIA) shows that investment approvals increased by 30% last year, the authority’s Chief Executive Officer, Mr Richard  Mubayiwa says foreign investment delegations into the country  are a reflection that Zimbabwe remains  a safe and viable business destination, contrary to a latest World Bank Report that ranked the country as  a non profitable investment zone.

 

“The prospects are high that such missions will translate into increased productivity,” said Mr Mubayiwa.

 

Government has also established a One Stop Shop Investment facility that is expected to reduce the period of investment processing for an investor from 6 months to at least 5 days, in a move expected to increase investment approvals.