Zimbabwe Infrastructure Report Q1 2016

Zimbabwe Infrastructure Report Q1 2016

BMI View: The country's construction industry remains high risk, poorly financed and subject to theunattractive investment policies of President Robert Mugabe, with average annual real growth between2015-2024 expected to be a mediocre 2.6%. Zimbabwe is keen to encourage foreign investment, with Chinaso far leading inroads into the country's power and mining sectors. However, even Chinese investment islower than expected and Mugabe's rhetoric strongly points to continued restraints on foreign investment.

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We expect continued weak growth in the Zimbabwe construction industry as high risks, little financingavailability and poor growth prospects ward off investors. As such, we forecast 1.4% real growth for2015, and an annual average growth of 2.6% over the next 10 years.

We highlight upside potential for the power sector as Sable Mining Africa signed a memorandum ofunderstanding with Chinese firm CITIC Construction to build a 600MW coal-fired power plant at its192.36sq km Lubu coal mine in Zimbabwe. The mine will supply coal to the commercial power station.

The project is part of the Zimbabwean government and Ministry of Energy and Power Development'splans to promote the development of energy and power generation.


BMI Industry View
Table: Infrastructure - Construction Industry Forecasts (Zimbabwe 2014-2020)
Table: Zimbabwe Infrastructure Risk/Reward
SWOT
Infrastructure SWOT
Industry Forecast
Construction And Infrastructure Forecast Scenario
Table: Construction And Infrastructure Industry Data (Zimbabwe 2014-2024)
Table: Energy & Utilities Projects Involving Chinese Companies
Industry Risk Reward Ratings
Zimbabwe - Risk/Reward Index
Rewards
Risks
Africa - SSA Infrastructure RRI: Capital Constraints Biting
Table: SSA Infrastructure Risk/Rewards Index Table, Q116
Methodology
Industry Forecast Methodology
Sector-Specific Methodology
Risk/Reward Index Methodology
Sector-Specific Methodology
Table: Infrastructure Risk/Reward Index Indicators
Table: Weighting Of Indicators

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