The Reserve Bank of Zimbabwe Governor Dr John Mangudya has warned of an emerging competition between local and foreign investors as the country opens up for investment. Mangudya, who was among the President’s envoy to Davos for the World Economic Forum said that companies should invest in modern equipment for mass production rather than using the old 1900s machinery.
“A number of investors are coming to Zimbabwe. We need to be prepared for competition and I know it’s going to reduce the appetite for people to internationalise money,” said Mangudya.
“We are opening up business for both domestic and foreign investors. Therefore, the challenge for domestic investors is that you need to improve on your inefficiencies and competitiveness”.
Mangudya had accompanied the Zimbabwean leader to Switzerland where President Emerson Dambudzo Mnangagwa used the platform to announce to investors that the country was open for investment. The President said that Zimbabwe, which has been isolated for more than a decade was ready to engage the world in rebuilding the economy.
“Zimbabwe has lagged behind in many areas as a result of isolation for past 16, 18 years. Now we are saying to the world: Zimbabwe is now open for business.” said the Zimbabwean President in Davos.
Zimbabwe, which has been under sanctions for many years, witnessed economic downfall and hyper-inflation accompanied with high unemployment.
Mangudya is optimistic that the Davos trip is going to pull investors in the country. The RBZ Governor also believes that the economy is to grow due the President’s economic policies.