The major topic of discussion this past week has been about the elections in Zimbabwe. At the time of writing this, there is still no news on the results of the presidential elections that took place last week Saturday. The whole of Zimbabwe is still waiting for the results, so to the rest of the world together with investors waiting on the sidelines. The question on many investors minds right now is whether or not to go invest in Zimbabwe?

Not a lot of decisions can be made right now as there is no clear sign yet whether there would be a new leader in Zimbabwe together with a new government. Most investors pulled out of Zimbabwe when the Zimbabwe economy started to go on a downward spiral in 2000. But with a new government in place and potential donor funding to help rebuild the country, is it a good investment to go back in Zimbabwe?

My answer to this is: Certainly it is a good idea to invest in Zimbabwe. Zimbabwe still holds vast potential in terms of resources such as gold and platinum. There is ample arable land that can be farmed on. Before the government seized farms in 2000, Zimbabwe was one of the worlds top tobacco growers together with producing large quantities of maize, wheat and cotton. Agriculture was a major earner for the Zimbabwe economy. If a new government can restore that lost productivity on the land in Zimbabwe there is no doubting the high returns that can still be made from farming in Zimbabwe.

Zimbabwe is also a great tourist destination with many great places to see and visit most notably the Victoria Falls. Tourism had gone down in the country due to the harsh economic conditions the country has been facing with many tourists not opting to visit the country. If the tourism industry in the country can be restored, thousands of tourists will start visiting Zimbabwe again. If normality is returned in Zimbabwe by 2010, Zimbabwe could benefit greatly by the soccer world cup being hosted in South Africa.

What would still make Zimbabwe a good investment if the outlook of the country changes is that, major infrastructure and buildings are still intact. There has not been a war in Zimbabwe over the last 8 years that has seen roads and buildings being destroyed. They may have been neglected and sustained minor damages but the core is still there. There are still factories although some have stopped operating but they are still there. There are still roads, the electricity lines are there, together with telephone and water infrastructure. Yes all these infrastructures may not be working 100% but the foundations are there that would only need minor works to be carried out to get them working effectively again. Not to forget that Zimbabwe has a highly skilled and educated workforce. Zimbabweans are generally termed as hard workers and with a hard working workforce available, productivity in terms of what one seeks out the achieve will be attained.

The is great potential in Zimbabwe but for now it is a wise idea to just hold onto your money and wait and see if things start to change in Zimbabwe. Right now it is still very unclear as to where things are ahead in the country but if policies in the country change and the economy is resorted to some level of stability and normality then investors are going to start flocking back to Zimbabwe. A commentator in Zimbabwe recently told me that, “If things get back to normal in Zimbabwe, that little airport we have in Harare would be too small to accommodate the number of investors who will be arriving into the country.”

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