Zimbabwe was once considered to be the breadbasket of Africa. With its abundant natural resources, highly skilled and educated population, and fertile soils, Zimbabwe was considered to be the jewel of Africa. Post Independence in 1980, Zimbabwe grew by 4% per annum, more than twice the rate of growth for the rest of Africa. Following the fast track implementation of the land reform program and subsequent sanctions, Zimbabwe’s GDP declined by over 50% between 1997-2008. During the “lost decade” inflation reached over 280bn% or 98% per day and life became very difficult for many Zimbabweans. In February 2009, Zimbabwe adopted a multi-currency regime with the US dollar becoming the primary currency. Since then growth has recovered with and between 2009-2014 Zimbabwe achieved over 6% GDP growth per annum. Inflation has remained low and investment has started to flow back to Zimbabwe. Zimbabwe is on an irreversible path of economic progress and has the potential to be one of the fastest growing countries in the world.
Where is Zimbabwe?
Zimbabwe is strategically located at the heart of the southern African region. It borders South Africa, Botswana, Zambia and Mozambique and will play an increasingly important role as a gateway for South African products into the rest of Africa. Zimbabwe has amongst the highest literacy rates in Africa and, despite the lost decade, education standards remain high. Zimbabweans are gradually returning from the diaspora equipped with international knowledge and skills. Zimbabwe is rich in natural resources including platinum (second largest deposit in the world), diamonds (largest discovery in recent history), chrome, gold, and thermal and coking coal.
Zimbabwe presents significant opportunities as businesses seek to recapitalise their operations and realign their business models in line with best practice. The lack of domestic liquidity combined with the uncertain political environment presents attractive opportunities for long-term foreign investors to purchase assets/businesses in Zimbabwe at attractive valuations. Stable macro economic conditions combined with increasing signs of a political resolution sets the stage for a dramatic turnaround of the economy. This dynamic situation poses numerous challenges and opportunities for potential investors and businesses in Zimbabwe. Invictus Capital is well positioned to take advantage of the unfolding opportunities through the provision of investment management and advisory services and it will also seek to act as a catalyst for matching foreign capital with attractive local businesses.
|Total Area||399757 sq.km|
|Land Area||386670 sq.km|
|Population||12.2m (circa 3m in the diaspora)|
|Other Languages||Shona, Ndebele|
|Time||GMT + 2 HOURS|
|Currency||Multicurrency (US$ and ZAR)|
|GDP (Current Prices)||US$13.7bn (2014E)|
|Real GDP growth rate||3.2% (2014E)|
|Principal Exports||Tobacco, Gold, Ferro Alloys, Cotton|
|Principal Imports||Machinery and Transport equipment, Chemicals, Petroleum products|
|Main export destination||China, South Africa (‘SA’), Germany, United Kingdom (‘UK’), Japan, Netherlands, Italy|
|Main Imports Origins||SA, Democratic Republic of Congo, Mozambique, Germany, UK, United States of America (‘USA’), Botswana|
|Natural Resources||Asbestos, gold, copper, nickel, tobacco, platinum, chrome|
|Main Towns||Bulawayo, Gweru, Mutare|
|Climate Subtropical:||Summer 25-30 degrees celsius; Winter 13-20 degrees celsius|