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Zim slips in FDI rankings

Eric Chiriga

THE Zimbabwean economy has been ranked 138th out of 140 countries, with an inward Foreign Direct Investment (FDI) Potential Index of 0,064 for the period 2000-2002, the World Investment Report 2

004 has revealed.

Zimbabwe had an inward FDI Peformance Index of 0,069 for the period 2001-2003 as compared to Bangladesh and Haiti, which had 0,083 and 0,080 respectively in the same period, the report said.

The inward FDI Potential Index is based on 12 economic policy variables and the inward FDI Performance Index is the ratio of a country’s share in global FDI flows to its share in global Gross Domestic Product (GDP).

According to the report Zimbabwe experienced a Foreign Direct Investment (FDI) inflow of 2,5% of gross fixed capital formation in 2003.

The report, which was themed “The shift towards services”, said that Zimbabwe’s FDI inflow had declined to 2,5% from 3,5% in 2002.

It also said that the country’s inward FDI stocks were 15,5% of GDP in 2003 as compared to 18,5% in South Africa and 55,2% in Zambia.

Africa as a whole experienced inward FDI stocks of 25,3% compared to 27,0% in the previous year.

The Zimbabwean FDI inflow has been dwindling with the exception of the mining sector which remains lucrative and major foreign investment projects are underway.

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