By Nqobile Tshili
President Mnangagwa has said the economic reforms that his administration is implementing have started bearing fruit, with the country receiving positive credit ratings for the first time in 20 years. Last week, globally recognised South African credit ranking institution NKC African Economics positively rated the country from negative to stable.
Posting on his Facebook wall on Saturday, President Mnangagwa expressed confidence over the positive status saying it was a sign that Government’s efforts to revive the country’s economy were making an impact globally.
“We are beginning to see the fruits of our toil. NKC African Economics, a globally recognised economic research firm, upgraded our country’s sovereign credit rating for the first time in twenty years, sending a clear message to investors that investments in Zimbabwe are safe,” said President Mnangagwa.
In its report, NKC African Economics said the end of ex-president Robert Mugabe’s 37-year rule presents opportunities for investors to take advantage of.
NKC African Economics said based on the country’s new political and economic environment it was shifting the country’s credit ratings from negative to stable.
“Although Zimbabwe’s economic prospects are filled with a sense of interest, confidence has not yet fully returned. There is likely to currently be a appetite for Zimbabwean investments from those with a higher appetite for risk, and we expect foreign investor interest to pick up even before the elections,” reads the report.
“As a result of our economic analysis, as well as incorporating our political assessment, we have decided to change the outlook on Zimbabwe’s sovereign risk rating to stable, from negative previously.”
Since coming to power last November, President Mnangagwa has pushed for re-engagement with western countries, a departure from the isolationist policies of the previous administration led by the ex-president.
President Mnangagwa has declared that the country is open for business, inviting investors from across the globe saying their investment is safe in Zimbabwe.
He said in his Facebook post that he is committed to providing more economic powers to provincial authorities to promote local development.
“We also announced plans to give greater powers to provincial authorities to draw up their own budgets and evaluate their own economic output, an important measure that will enable the provincial leadership to better deliver for local communities,” said President Mnangagwa.