Zimbabwe Infrastructure Report Q2 2015

Business Monitor International
February 18, 2015
94 Pages - SKU: BMI5470864
Countries covered: Zimbabwe

Zimbabwe Infrastructure Report Q2 2015

BMI View: The political risk in Zimbabwe is rising as the economy struggles on and the battle ofsuccession is increasingly coming to the forefront. Investments and foreign companies remain deterred fromentering the country through existing legislations, including the indigenisation laws. The country'sconstruction industry remains poor in relation to its regional counterparts, with average growth between2015 and 2024 expected to be a mediocre 2.6%.

Zimbabwe holds vast potential as a frontier growth market in Southern Africa. However, it has beenunderperforming, with many foreign investors put off doing business in the country due to President RobertMugabe and his regime. The mining sector, which is a key growth driver for the country's infrastructure, hasin the past been hit hard by indigenisation drives. With Mugabe expected to execute these as part of hisregime, there is much concern the mining industry will not give its infrastructure counterpart the support ithas previously been able to give. This, coupled with poor legal and regulatory frameworks, has seen onlythe most risk-tolerant enter the country. We expect growth to continue to underperform over the near team,with risks to the downside for the 2% construction growth forecast for 2015, following a meagre 1% in2014.



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