ICAZ INVESTORS CONFERENCE

“Zimbabwe: Ripe For Investment, poised for Growth”

3-4 OCTOBER 2014

POLOKWANE

SOUTH AFRICA

WHY “NOW” IS THE BEST TIME TO INVEST IN ZIMBABWE

BY

RICHARD MBAIWA

CHIEF EXECUTIVE OFFICER

ZIMBABWE INVESTMENT AUTHORITY

mbaiwa@zia.co.zw

"Your Investment, Our Passion" 2

Presentation Outline

About Zimbabwe Investment Authority

Economic Overview

Why Invest in Zimbabwe Now?

What Zimbabwe Industry Requires

The Opportunities

Investment incentives

Security of investment

Concluding remarks

"Your Investment, Our Passion" 3

ABOUT ZIA

• Statutory Board Established by an Act of Parliament.• Mandate: To promote, facilitate and Coordinate

Investment in Zimbabwe by both domestic and foreign investors.

• To promote joint ventures between domestic and foreign investors and between the state and private investors.

• Advise Government on Investment Policy and Incentives

• Deals with applications for investment Licenses.• One Stop Shop Centre for investment in Zimbabwe.

Macro-Economic

Indicator

2009 2010 2011 2012 2013 2014E

Population (m) 12.6 12.6 12.7 12.7 13.1 13.1

Real GDP Growth (%) 5.4 11.4 11.9 10.6 3.4 3.1

Inflation (Annual average

%)

-7,9 3.0 3.5 3.8 1.7 1

Key Macro-Economic Indicators

Economic Overview

Zimbabwe - Real GDP Growth % :y-o-y

Source: UN, BMI. e/f=BMI estimate/forecast.

Economic Overview Cont’

Zimbabwe – Inflation: % y-o-y

Source: Zimstat.

• Economic blue print ZIMASSET;

• Doing business reforms Under way.

• Introduction of Special Economic Zones;

• Joint Venture Framework (PPPs);

• Ongoing investment into infrastructure development and power generation.

Developments and initiatives

being implemented to see the country on an upward

growth trajectory including

Zimbabwe FDI Flows: 1995-2012 Source: UNCTAD

-

50.0

100.0

150.0

200.0

250.0

300.0

350.0

400.0

450.0

500.0

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

ZIMBABWE-US$ M

So Why Zimbabwe Now?

Highly Skilled And Literate Workers

Central And Strategic Location In

Southern Africa (Land linked)

Regional Gateway (North-south

Corridor)

Regional Logistics Hub Supported By Railways, Roads, Power, Telecoms.

Natural Resources Endowment

(Minerals, Strong Agric Base)

Diversified Economy – Manufacturing,

Services, Agriculture, Mining

And Tourism

Growing Economy and Growing

Domestic Market

Use Of Multiple Currencies Thus

Minimizing Exchange Risks

Access To Major Regional Markets;

SADC/ COMESA

"Your Investment, Our Passion" 10

Recent Financial Sector Reforms

Now all disinvestment proceeds are fully remittable

Increase of loans approved by Authorised Dealers from $1m to $7.5m

Streamlining Exchange Control approvals under a synchronised External Loans and Exchange Control Review Committee (ELECRC)

Allowing full participation of foreign investors on the local bond market and securities market (both primary and secondary markets)

Widening development of innovative financial instruments and broadening capital market activity

"Your Investment, Our Passion" 11

What Does Zimbabwe Industry Require?

Need For Re-industrialization

Modernization Of Capital Equipment

Access To Long-term Low Cost Financing

Facilities

"Your Investment, Our Passion" 12

The Opportunities

Priority Areas

• Infrastructure Development

• Agriculture

• Manufacturing

• Mining and Processing

• Tourism

"Your Investment, Our Passion" 13

Opportunities – Zimbabwe Financial Markets

• Multi-currency regime

• Undervalued stocks

• Advanced financial market

configuration

• Regulatory system for

banks strong

• Automation of securities

trading

• Financial skills available

(local and diasporan)

Prospects

Opportunities-Infrastructure Development

JV/PPP Opportunities

Major opportunities include:• Energy (electricity including mini-hydros,

gas, bio fuels and renewable energy)

• Transport (roads, bridges, railways and airports)

• Communications

• Urban water and sewage reticulation

• Agriculture infrastructure including dams and irrigation schemes.

• Industrial parks and factory shells.

"Your Investment, Our Passion" 15

Opportunities-Mining

The sector requires US$5-6bn in next 5 years for capitalization to increase capacity to an average of 80%

Opportunities Include

• Coal bed methane exploration & exploitation

• Resuscitation of existing mines especially gold and other base metals

• Prospecting, exploration, exploitation and beneficiation of different minerals.

• Value addition and beneficiation of the various minerals such as diamonds, silver, gold, platinum, chrome and others

• Platinum refining, ferrochrome production, steel making

"Your Investment, Our Passion" 16

Agriculture and Agro-Industry

Opportunities Include:

• Private equity in agricultural institutions, mechanization and farm technology

• Primary Production of food and cash crops

• Horticulture-export of horticulture and floriculture

• Livestock; Poultry farming, fishing and fish farming.

• Contract farming

• Value addition: e.g. meat processing, fruit juice manufacturing, processing of cotton lint, timber processing

"Your Investment, Our Passion" 17

Opportunities-Tourism

Unrivalled touristic assets

Fast Growing Sector

Zimbabwe ranked second in SADC region in terms of tourist arrivals.

• Opportunities Include

• Trans-frontier Conservation Areas/Parks)

• Tourism Development Zones

• Hunting safaris and tour operations

• Eco-tourism

• Hotels and conference Facilities"Your Investment, Our Passion" 18

Opportunities in Manufacturing

Textiles:

• Cotton ginning, spinning, weaving, finishing textiles and knitting products

Clothing & Footwear:

• Wearing apparels and footwear

Chemicals:

• Fertilizers, insecticides, pests, paints, varnishes, soaps, detergents, pharmaceuticals, industrial chemicals, petroleum products, rubber & plastic products

Wood & Furniture

• Saw milling, wooden products, furniture and fixtures

Metals & Metal products:

Machinery and equipment, radio and communication equipment

"Your Investment, Our Passion" 19

Manufacturing - The key thrust is on value addition of local raw materials

Investment Incentives

Industrial Park Developers

• 1st Five Years 0%

• Thereafter 25%

BOOT and BOT Arrangements

• First Five Years 0%

• Thereafter 15%

Tourism Development Zones

• 1ST Five Years 0%

• Thereafter 25%

• Rebate of duty on approved capital goods for use in the TDZs

• 15% tax for holders of special mining lease

Mining

• Reduced taxation for Companies exporting at least 50% of output.

• Reduced taxation for projects establishing in designated growth points.

Manufacturing:

National project status

Duty exemption on imported capital goods

Special Economic Zones Establishment.

Attractive incentives available

Security of Investment

United Nations Convention on international Trade law (UNCITRAL)

New York Convention on the enforcement of arbitral awards

International convention on settlement of Disputes (ICSID)

Overseas Private Investments Corporation (OPIC) and Multilateral Investment Guarantee Agency (MIGA

In addition to Various BIPPAs, Zimbabwe is Signatory to:

"Your Investment, Our Passion" 21

Concluding Remarks

As ZIA we are there to facilitate your investment in Zimbabwe

Partner with us for Zimbabwe's growth take off.

Zimbabwe one of the richest countries in the world in natural resources per

capita.

Zimbabwe is the place to invest in today. The only way is up.

"Your Investment, Our Passion" 22

It’s time to catch the wind and sail!

Contact Us

The Chief Executive Officer

Zimbabwe Investment Authority

109 Rotten Row

P.O. Box 5950

Harare

Website: www.investzim.com

Email: info@zia.co.zw

mbaiwa@zia.co.zw

Phone: +263-4-780141

+263-772-207156

Thank You For Your Attention

"Your Investment, Our Passion" 24