ZIMBABWE INVESTMENT ROUNDTABLE

Mobilizing Public Private Partnerships for Investments in Zimbabwe’s Infrastructure Sectors

AFRICA INFRUSTRUCTURE DEVELOPMENT ASSOCIATION

Copyright © 2019 AfIDA All rights reserved

In Partnership With

Meikles Hotel - Harare, Zimbabwe - 25th March 2019

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AfIDA ZIMBABWE INVESTMENT ROUND TABLE

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AfIDA ZIMBABWE INVESTMENT ROUND TABLE

Background

TThe Africa Infrastructure Development Association (“AfIDA” or “the Association”) is an association of project developers and development stakeholders in Africa. The objective of

AfIDA is to enhance the vibrancy of project development (PD) activities in infrastructure, with a view to ensuring that more projects achieve bankability and become available for financing and investment.

The AfIDA aims to promote and enable Project Development work in Africa, by creating a platform that will foster continuous dialogue amongst members, benchmark project development documents, develop market norms, conduct independent research and serve as a policy advocacy forum for the industry with a view to ensuring more projects on the continent achieve bankability.

The Zimbabwe Investment Authority (ZIA) is the country’s investment promotion body set up to promote and facilitate both foreign direct investment and local investment. ZIA is an institution born out of the merger of the Export Processing Zones Authority (EPZA) and the Zimbabwe Investment Centre (ZIC). This was done to create a one-stop Investment shop for quicker and easier facilitation of investment. Through the One Stop Shop Investment Centre (OSSIC), the Zimbabwean government has streamlined the source of all information on all procedures to invest in Zimbabwe by liaising with the respective Ministries and Government agencies.

AfIDA Country Engagement Series

Roundtable Objectives

The Government of Zimbabwe has been making efforts to transform the country’s economy and mobilise investments and this roundtable will offer a unique platform for a dialogue on development and investment opportunities across various infrastructure asset classes in Zimbabwe. The Investment roundtable will also address the barriers to entry for investors and discourse the need

for a favourable investment climate. The Roundtable, therefore, represents a unique opportunity to raise awareness on new opportunities for fast-tracking the development of projects in Zimbabwe. The Roundtable will contribute to enhancing Zimbabwe’s attractiveness for Foreign Direct Investment, as well as to foster regional cross-border Investments.

AfIDA Members and Partners

AfIDA Workshop Series- London, 14 November, 2018

Program – 25th March 2019

09:00 – 09:15

09:15 – 09:30

09:30 – 10:00

10:00 – 10:30

10:30 – 11:20

11:20 – 12:10

12:10 –13:10

13:10 –14:10

14:10 – 15:10

15:10 – 16:00

16:00 – 16:30

Welcome Remarks by Hon. Rtd Lt Gen Dr Sibusiso Moyo, Minister of Foreign Affairs and International Trade

Opening remarks by AfIDA Chairman - Mr Oliver Andrews, Executive Director & CIO, Africa Finance Corporation (AFC)

Welcome Keynote Address – Zimbabwe Presidency Delegation

Trends & Opportunities in Zimbabwe’s Energy Sector by Hon. Dr Jorum Gumbo Minister of Energy and Power Development, Government of Zimbabwe

Trends & Opportunities in Zimbabwe’s Transport and Infrastructure Sector by Hon Joe Biggie Matiza, Minister of Transport & Infrastructure Development

Trends & Opportunities in Zimbabwe Information, Communication Technology Sector by Hon Kazembe Kazembe, Minister of Information and Communications Technology and Cyber Security

Private sector-led domestic resource mobilisation for infrastructure -A view from the private sector in Zimbabwe

Networking Lunch

Addressing the Barriers to Entry and Setting the Way Forward Hon. Professor Mthuli Ncube, Minister of Finance and Economic Development Government of ZimbabweHon. Rtd Lt Gen Dr Sibusiso Moyo, Minister of Foreign Affairs and International TradeDr John Mangudya- Governor, Central Bank of ZimbabweDr Washington Mbizvo – Chairman One Stop Investment Services Centre (OSSISC), Zimbabwe

AfIDA led discussion - Project to bankability, developers and financiers’ experiences and challenges in Zimbabwe and the needed interventions

Closing Remarks - Summary of proposed initiatives, and way forward

Mr Oliver Andrews, Executive Director & CIO, Africa Finance Corporation (AFC)Mr Zondo Thomas Sakala, Chief Executive Officer, Infrastructure Development Bank of Zimbabwe (IDBZ)

Program Deliverables

AfIDA Country Engagement Series

How can the Zimbabwean government facilitate the development of private sector projects?

What role could PPP’s play in such projects?

What sort of financing mechanisms would be viable.

Allocation of risk between the private and public sectors.

Identify the current investable projects in the transport, energy and industrial infrastructure sectors.

Identify the challenges faced by Zimbabwe’s public sector when attracting private funding and identifying a collaborative way forward.

Identify and address the barriers to entry for investors in Zimbabwe and forge the way forward.

FOR MORE INFORMATION ABOUT PARTICIPATION & SPONSORSHIP

CONTACT US

precious.nkandu@afida-africa.org

+27 60 758 1187

PRECIOUS NKANDU (Coordinator, AfIDA)

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AfIDA ZIMBABWE INVESTMENT ROUND TABLE

The Participating StakeholdersWHY THE ZIMBABWEAN GOVERNMENT SHOULD PARTICIPATE

Reports show that Zimbabwe will require an estimated US$30billion to rehabilitate, revamp and upgrade its infrastructure. Much of the funding will necessitate

resource mobilised from domestic resources as well as international financiers. Raising the country’s infrastructure endowment to that of the region’s middle-income countries could boost annual growth by about 2.4 percentage points. Zimbabwe made significant progress in infrastructure in its early period in 1980 as an independent state. The country managed to put in place a national electricity network and establish regional interconnection in the power sector; to build an extensive network of roads for countrywide accessibility and integration into the regional transport corridors; to lay the water and sewerage system, and to make progress on building dams and tapping the significant irrigation potential. Investment in all infrastructure sectors has lagged due to economic challenges (in the power and water sectors in particular), and the accumulation of a considerable rehabilitation agenda. Quality of service has declined across the board.

The power system has become unjustifiably costly, inefficient, and unreliable. The condition of roads especially on the North-South transport corridor in Southern Africa node needs new investment. Zimbabwe’s most pressing challenges lie in the power and water sectors. Inefficient and unreliable power supply poses significant risks to the economy, while the maintenance and upgrading of existing power infrastructure no longer look to be affordable. With respect to regional integration, Zimbabwe must improve the condition of the international road corridors that pass through its territory, along with reducing transit costs and transit time, to gain the most from its strategic location in the heart of the southern Africa region and its proximity to the region’s largest economy and trading partner: South Africa. Addressing Zimbabwe’s infrastructure challenges will require the sustained expenditure of almost $2 billion per year over the next decade, with a heavy emphasis on rehabilitation; more than half is needed for the power sector.

This forum presents the Government of Zimbabwe with a much-needed dialogue with the private sector and key development finance institutions on ways to attract and retain investments across key infrastructure sectors in Zimbabwe. It for this reason that AfIDA through its country engagement and advocacy efforts has partnered with the government of Zimbabwe and its key ministerial, local government and private sector institutions to facilitate this imperative discourse.

THE CATALYTIC ROLE OF AFIDA

AfIDA’s members and partners are active development and investment stakeholders actively investing in Africa’s infrastructure. This dialogue will allow AfIDA members to assess investment opportunities in Zimbabwe and dialogue with regulatory authorities on creating an enabling environment to attract more private sector funding to Zimbabwe’s infrastructure opportunities.

AfIDA Country Engagement Series

KEY PARTICIPATING STAKEHOLDERS

• Central government ministries• Local government agencies• Investment banks• Legal and financial advisory firms• Regulators• Utilities • Pension funds• Asset managers• Private Equity • Development finance institutions • Infrastructure project developers

INFRASTRUCTURE FOCUS AREAS

• Airports and supporting facilities• Courthouses and correctional facilities• Educational facilities, including primary and higher learning• Gas transmission and distribution systems• Government buildings and related facilities• Hospitals and healthcare facilities• Border and inland ports terminals• Power and transmission facilities and systems• Public housing• Rail, including passenger rail and mass transit• Roads and bridges• Sports stadia and recreational facilities• Technology, including broadband and telecommunications• Waste and waste-to-energy• Water and wastewater

AfIDA Debate Series, Abuja, February 2017

AfIDA- Nigeria Country Engagement with IPP’s, Abuja, March 2018