Asia investors shun 'risky business destination Zim'

2013-11-12 13:25

China deal 'to boost Zimbabwe electicity'

Zimbabwe has secured a $319m loan from China to fund the expansion of a hydropower station in Kariba, a move that would help ease the electricity crunch that has hit the country for years.

Cape Town – Asian investors are reportedly shunning Zimbabwe amid concerns the southern African nation is a "risky business destination", as the country continues to reel under a "sagging economy".

Speaking during a public lecture in Harare, Industry and Commerce Minister Mike Bimha said investors were withholding their money from the country, according to a News Day report.

With Zimbabwe failing to mend relations with the West, the country had resorted to the "Look East policy" under which it hopped Asian communities would help revive its battered economy.

Relations between Zimbabwe and the West turned sour in 2000 when the country launched its controversial land reform programme.

Asian investors were concerned that Zimbabwe's insurance companies covered only the trade risk and did not have the capacity to cover political risk.

Japan, China and India insist on cover against political risk, the report said.

- News24