Zimbabwe Infrastructure Report Q4 2015
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 any inroads into the country's power and mining sectors. However, even Chinese investmentis lower than expected and Mugabe's rhetoric strongly points to continued restraints on foreign investment.
Zimbabwe holds potential as a frontier growth market in Southern Africa, but it is highly unlikely to meetthat potential under current conditions - namely the policies enacted by President Robert Mugabe and hisregime, which make it risky for foreign investors to gain access to the market. The mining sector, which is akey growth driver for the country's infrastructure, has in the past been hit hard by indigenisation drives.With Mugabe expected to continue to execute these policies, we expect the mining industry will not supportthe infrastructure sector as we have seen previously, and therefore forecast stagnant real growth in theconstruction sector.
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