PROJECT CONCEPT SHEET

PROJECT TITLE: The Promotion of Investment and Technology Cooperation between Zimbabwe and the Republic of South Africa

PROPOSED SOURCE OF FUNDING: TF - The Government of Japan

1. PROJECT OBJECTIVE:

2. EXPECTED COUNTERPART & BENEFICIARY
   
   Zimbabwe: Zimbabwe Investment Centre
   The Republic of South Africa: Chamber of Commerce (Afrikaans Handels Institute)
3. BRIEF DESCRIPTION:
   
   Although Zimbabwe has a fairly large industrial base in comparison with its neighbours other than the Republic of South Africa, it has not managed successfully to attract inward investment due to its inadequate infrastructure and inappropriate investment climate. Trained/skilled indigenous entrepreneurs/manpower on the investment and technology development have not been sufficient either.
   
   This project aims at supporting the Government of Zimbabwe to modernise and expand its industrial capacity in priority sectors by attracting investment resources (technology, licensing, equipment supply etc.) particularly from the Republic of South Africa within the framework of South-South Cooperation. For this purpose, an Investment Promotion Unit will be established at the Zimbabwe Investment Centre (ZIC) specifically to promote business related cooperation between the Republic of South Africa and Zimbabwe. The project will also assist in strengthening the linkages between ZIC and other related institutions such as Small Enterprise Development Corporation (SEDCO), Zimbabwe Development Bank (ZDB), the Venture Capital Company of Zimbabwe (VCCA), the Indigenous Business Development Centre (IBDC), the Zimbabwe National Chamber of Commerce (ZNCC), Women in Business Association (WIBA) and Export Processing Zone Authorities (EPZA). An associated feature is building the professional capacity of ZIC to render investment advisory services, training, investment promotion and information services to Zimbabwean entrepreneurs.
4. EXPECTED OUTPUTS:

5. PROPOSED CROSS-ORGANIZATIONAL LINKAGE & INVOLVEMENT OF OTHER AGENCIES/ORGANIZATIONS

Cooperation, African Project Development Facility (the latter three have offices in Harare)

6. ESTIMATED BUDGET: US$349,999 (including support costs)

COMMENTS FOR SUBMISSION:

1. Relevance in the context of Regional/Country Situation and Priorities:
   
   Zimbabwe's economy has so far not been able to generate employment opportunities sufficient to absorb the increasing number of unemployed persons in the country. To address the unsatisfactory economic performance, the Government adopted a home-grown Economic Structural Adjustment Programme aimed at facilitating the attainment of sustainable long-term economic growth, expansion of employment and attraction of investments.
   
   The Zimbabwe Investment Centre (ZIC) is currently receiving UNDP/UNIDO services to determine ways in which the centre's capacity to pursue private investments including foreign direct investment into the country, could be enhanced.
   The attached project concept is intended to culminate in the establishment of an Investment Promotion Unit within ZIC and, through it, work towards turning Zimbabwe into an attractive investment location particularly for South African investors. It is envisaged to achieve this objective through collaboration with South Africa, within the spirit of South-South Cooperation.
   With this focus, the project is expected to contribute substantially towards the above-stated objectives of the Economic Structural Adjustment Programme.
2. Conformity to IDDA/AAI objectives (if applicable):
   
   The project conforms to the IDDA objectives, as it addresses investment promotion which is also one of the core tenets of the Alliance for Africa's Industrialization.