The government of Zimbabwe has pleaded with its citizens in the diaspora and foreigners to invest in the country as the South African nation battles default in previous loan payments. 

This came as the government organised a three-day (Thursday to Saturday) investment summit in South Africa to present the project on the positive development of the black nation to the world.

The country, with a population of over 16 million, is unable to access offshore credit lines due to its default on previous loans. 

However, its citizens in the diaspora are sceptical that their investments will pay off.

Speaking at the conference, Zimbabwe’s finance minister, Mthuli Ncube, said the country’s economy was one of the fastest-growing in the region and advised investors to invest in it.

Mr Ncube, who listed various tax rebates and incentives for would-be investors, especially those wanting to import equipment, said the country was recovering economically. 

“We have seen it move from strength to strength after a dip in 2019 and 2020,” he said. “In 2021, the economy has been on a positive trajectory, with real GDP growth at 8.5 per cent in terms of growth — that is 6.5 per cent in 2022 and a growth rate of 5.5 per cent in 2023.”

“The growth rate is projected at 3.5 per cent this year, slower than the previous three years due to the climate change shocks,” the minister added.

An economist, Treasure Basopo, who left the country three years ago, said investors would only be interested in the country if inflation is tamed and the country establishes confidence in its currency (The ZiG).

“The introduction of ZiG defeats, by all definitions and intents and purposes, the traditional characteristics of money, which is basically the ability to store valid durability, scarcity, and acceptability,” Mr Basopo added. 

He said investors in the diaspora want the right to vote in the country’s general election in addition to seeking a lower inflation rate.

Mr Basopo said, “This is a government that has lost all its goodwill and international credibility to access credit facilities, and they want to harvest that money from the citizens for you to demonstrate patriotism. 

“What we need right now is for the diaspora to have their political rights enshrined within the constitution of the land—the right to vote. You cannot invest in a country in which you cannot have a say. You can’t put your money without having the security of the vote.”

Mr Ncube had earlier voiced his support for the ZiG, observing that the country needs a domestic currency. 

He said, “It’s a currency that is backed by reserves, gold and other precious minerals, as well as hard currency. The exchange still fluctuates.”

Zimbabwe’s currency is backed by its gold reserves, a method of establishing value that most countries abandoned decades ago.