INVESTMENT AND TRADE OPPORTUNITIES IN ZIMBABWE

OUTLINE OF PRESENTATION Country Profile Why investing in Zimbabwe? Opportunities: Agriculture Energy Mining Manufacturing Transport Real estate Tourism

Scope Of The Presentation Country Profile Why invest in Zimbabwe? Areas of Investment Current Investment Activities Summary of Challenges and Opportunities ZITF Conclusion

Country Profile (facts and figures) Population: 13 million Capital city: Harare Area: km 2 Climate: Tropical (Summer – November to March) Airports: 3 International Railway infrastructure: Hub to Botswana, Mozambique, Zambia and South Africa Road infrastructure: Hub as rail (97,267 km with 20% paved) Arable land: 10.9% Area under irrigation: 1,500 km 2 Internet users: 5.2 million (40%)

Why invest in Zimbabwe?

Why invest in Zimbabwe? (cont’d) Skills availability Natural resources Infrastructure Communication system Remittance of after-tax profit Mining rebates Agriculture incentives

Areas of investment Agriculture: Joint venture with the government/individuals in tobacco, cotton, citrus, soya and wheat Dairy industry and dairy products Beef industry and processing Hot culture Chemicals Irrigation systems and equipment Agricultural machinery

Energy Open areas of investment ProjectOutputCapital Outlay Batoka Gorge (Hydro)800 MW2.2 billion Coalbed Methane300 MW580 million Hwange Power Station Life Expansion 124 MW500 million Hwange Power Station Thermal600 MW2.148 billion Refurbishment Harare Power Station (Thermal)120 MW85 million Munyati Power Station90 MW90 million

Mining

Mining (cont’d) Summary of investment opportunities by commodity

Manufacturing Clothing and textiles: Investment in management and technical skills Investment in joint venture, manufacturing and marketing Investment in new technology Investment in textile design to attract customers from a wider market Investment in under utilized capacities in existing industries

Transport Road Rail Air

Investment in Rail Transportation Rehabilitation of rail network Rehabilitation of rail track Refurbishment of traction and rolling stock Rehabilitation of the signaling and telecommunications systems

Road Infrastructure Bukwa-Rutenga-Boli-Sango Boarder post (203 km) Mt Darwin-Mukumbura (80 km) Bindura-Shamva (70 km) Wedza-Sadza (22 km) Kwekwe-Lupane (40km) Murambinda-B/Bridge (123 km) Gutu-Kurai (22 km) Headlands-Mayo (40 km) Mvurwi-Kanyemba (150 km)

Air Transport Runways: Prince Charles ($20 million) Hwange National Park ($15 million) Masvingo ($20 million) Kariba [new] ($173 million) Gweru [rehab + new terminal] ($10 million) B/Bridge [new] ($20 million) Buffalo Range [extension] ($15 million) Mutare [new] ($173 million)

Real Estate Low income housing units Water and sewage reticulation

Tourism

Current investment activities in Zimbabwe China Key investment areas: Contract tobacco farming Contract and joint venture in cotton production Multi-million dollar gas exploration Expansion of Kariba South Power Station (300 MW) Diamond extraction and marketing

Current investment activities in Zimbabwe (cont’d) Russian Federation PGM exploration and mining investment worth $4 billion DTZ-OZGEO mining diamonds and gold and in agri-ventures Other projects under discussion Brazil Exporting agricultural machinery worth $93 million

Major Challenges Liquidity – constraining industrial re-tooling and working capital Limited external lines of credit Loss of productivity – erratic supply of key utilities such as energy and water Poor transport infrastructure Inadequate irrigation infrastructure – (Arable land under irrigation: Africa – 7%; SSA – 3.7%; in comparison to Asia – 41% - source: FAO 2014) Influx of cheap and sub-standard imports Depressed domestic market demand Thriving informal sector estimated at 80% - a lot of wealth is not accounted for

Summary of Opportunities Agriculture

Summary of Opportunities (cont’d) Mining

Summary of Opportunities (cont’d) Energy

Summary of Opportunities (cont’d) Tourism

Zimbabwe International Trade Fair