Zimbabwe has outlined an ambitious foreign direct investment (FDI) target of 25% of its total gross domestic product (GDP) by 2015, which it seeks to realise through the implementation of intensive policy-driven programmes to boost investor appeal in the country.

Following a decade of economic contraction, the Southern African State registered an average growth rate of 7.1% over the last three years, the Zimbabwe Secretary for Economic Planning and Investment Promotion Dr Desire Sibanda told delegates at the yearly Zimbabwe High Level Investment Conference in Johannesburg on Wednesday.

“We hope this conference is a clear indication of our intention to promote and encourage international and South African investment in the country,” he said.

South Africa remained Zimbabwe’s primary trading partner, accounting for more than 60% of the country’s trade volumes and contributing close to 55% of FDI approvals by December 2012.

According to the Zimbabwe National Statistics Agency, trade volumes between the two nations reached $5.8-billion last year, up from $4.6-billion in 2011.

Zimbabwe incurred a trade deficit of $532-million after importing goods and services worth $3.2-billion from South Africa, compared with exports valued at $2.7-billion.

Moreover, the two countries had signed and ratified a Bilateral Investment Promotion and Protection Agreement, which served to strengthen bilateral trade and investment relationships.

Zimbabwean Ambassador to South Africa Phelekezela Mphoko believed this agreement further solidified the long-standing economic and political ties between the two Southern African States and further demonstrated confidence in Zimbabwe’s growth potential.

“Things are happening in Zimbabwe. We have just voted on and approved a new Constitution, are preparing for elections later this year and are instituting several policies to drive investment. We invite you to take note of what is happening in the country,” he told delegates.

State programmes to promote FDI included a One Stop Investment Centre, which centralised investor services such as permit issuance and company registration, as well as the appointment of a new board for the Zimbabwe Investment Authority to spearhead investment promotion.

In addition, the country’s Medium Term Plan for 2011 to 2015 sets GDP targets aimed at unlocking credit lines to the country and countering the liquidity challenges currently facing the State.