[2008-07-03]  Foreign investors pour US$150m into Zim
Foreign investors have poured between US$150 million and US$200 million into Zimbabwe since the beginning of the year despite efforts by the West to portray the country as an investment risk.
International investors said the country had experienced an investment boom so far this year with foreign investors keen to take advantage of vast opportunities in the country.
According to South African Online media reports, some investors were ignoring concerted efforts to isolate Zimbabwe by pouring in their money because they saw a lot of potential in the country.
Investment companies said while the country was facing economic challenges, some investors were looking ahead.
The investors said that they were in Zimbabwe to stay as they were confident that the country would overcome its challenges.
After realising that political pressure through the so-called smart sanctions was failing, Western politicians are now piling pressure on their home companies to divest from Zimbabwe.
Conglomerate Anglo American Corporation, which made the bulk of its money exploiting Africa’s mineral resources, has come under fire from British politicians over its plans to go ahead with a US$400 million investment programme at the Unki platinum mine in Shurugwi.
The company has so far resisted the pressure and indicated that it was going ahead with plans to develop Unki into a fully fledged mine.
However, seeing that their complaints were being ignored because they did not make economic sense, some shareholders with Anglo American are now using bully and scare tactics, by threatening to withdraw their funds from the company.
Another platinum miner, Zimplats, last week said it was going ahead with its projects in Zimbabwe.
In a statement to shareholders, the company said it was committed to developing its assets in Zimbabwe and playing its role in rebuilding the economy for the benefit of the people of Zimbabwe.
The company is undertaking an expansion programme at its Ngezi Mine where it is building two underground mines.
The project would see output at the two underground mines rising to 160 000 ounces of platinum a year by 2010.
The executive chairman of LonZim, one of the foreign companies that have identified potential in Zimbabwe, Mr David Lenigas, said his shareholders were not worried about putting their money in Zimbabwe.
The London listed company, set up to invest in Zimbabwe, intends to raise an additional $100 million to fund new purchases in the country.
"I've had no nervous phone calls from investors," he is quoted as saying.
“Quite the contrary. There is a lot of enthusiasm for what LonZim is doing in Zimbabwe.”
Source: (C)2008 The Chronicle