ECONOMIC planning minister Simon Khaya Moyo says government is working on further amendments to the damaging indigenisation policy which has been a major obstacle to foreign direct investment (FDI) into the country.
Addressing a National Defence Course on Friday last week, Moyo said government was working on ratifying indigenisation laws.
“Work is also underway to review the country’s labour and indigenisation laws to be competitive and assist in attracting investors,” Moyo said.
He said there was need to work on policies that will boost the dwindling levels of investment.
The country only managed to attract a paltry US$545 million in foreign direct inflows compared to Mozambique’s US$4,9 billion and South Africa who received US$5,7 billion.
“The attraction of meaningful investment across all sectors of the economy is key. However, the country has not managed to register such meaningful investment,” Moyo said.
“In order for us to maintain and expedite the positive growth trajectory, there is need for a cognitive paradigm realignment of the investment discourse that deliberately and intentionally makes the country a favourable destination.”
He said government was also working on improving investment by establishing a Joint Ventures framework. He said cabinet had already approved the principles of the framework.
Other measures to improve the business environment include reforming the One-Stop Investment Centre that has been on the cards since the era of the inclusive government, as well as establishing the Presidential Investors’ Round Table, which he said would ensure private sector participation in policy formulation.
Moyo said the further decline of economic growth in 2014 was a result of continuing low business and investment confidence, scarce liquidity and subdued international prices for major exports.
He also said government was setting up sector-targeted and competitive incentives and policy interventions that will promote investment into the country, taking a leaf from countries like Zambia and Senegal.
“There are serious concerns on the ever growing informal sector in our economy. Government is working on formalising the informal sector in an endeavour to ensure maximum contribution to the growth of the economy. Our policy is to formalise the informal sector and assist them to pay taxes,” Moyo said.