HARARE, July 13 (The Source) – Foreign Direct Investment (FDI) to Zimbabwe declined by 23 percent in 2015 to $421 million, reflecting weak investor sentiment towards the struggling southern African country, the latest United Nations world investment report has shown.
In 2014, FDI to Zimbabwe peaked at $545 million, driven by interests in mining and energy which seem to have died down because of a poor political and investment climate.
Lack of policy consistency, disregard for property rights and the unwillingness of authorities to deal with corruption have often being identified as factors dissuading investors from a country which boosts of vast mineral deposits.
The UN report shows that FDI into Africa fell seven percent to $54 billion which accounts for a 3,1percent share in global investment for the year.
Zimbabwe still ranks poorly compared to its regional peers Mozambique and Zambia who despite registering significant declines, received $3, 7 billion and $1, 6 billion in investment in 2015.
The report notes that weak commodity prices held back FDI to sub-Saharan Africa while investor confidence returned to North Africa.
Angola registered a record inflow of $8, 7 billion from $1, 9 billion last year. FDI to Egypt grew by 49 percent to $6, 9 billion.
A modest increase in FDI is expected this year.