By Olad Hassan

Zimbabwe is entering a new era in relations with the world amid signs of increasing investor interest and the ongoing negotiations between ZANU PF and MDC to lay out a new political direction for the country.

The list of talks and events is long, starting from the meetings between the country’s two main parties on issues such as power sharing, government posts, economy and media reforms to this week’s ZANU PF party congress, where delegates are going to discuss the future of the party and who is going to continue leading ZANU PF.

On the side lines the country’s Finance Minister has recently announced that the Zimbabwean economy (GDP) will grow by 7 percent in 2010. The budget for next year includes a reduction of corporate tax to 25 percent from 30 percent, a move welcomed by companies and investors. The Minister hopes that a substantial part of the money for the Budget will come from the countries vast mining resources.

Investors should look out for Zimbabwe as a potential investment opportunity as mining shares seem to be undervalued given the vast mining potential of the country.

However, analysts say as long as there is no better access to capital for mining companies and no trustworthy unity government in place investors should be cautious to gamble their money.

At the other hand shares of mining companies in Zimbabwe can be obtained at a very low price which might yield high returns in future. Bargains always come with a risk and Zimbabwe certainly appears to be an uncertain destination for investors.

But the fact that mining companies in Zimbabwe are re-opening and some have already managed to find financiers in order to start production is encouraging.

For example the Chinese ahead of time entered the mining market and recently expressed their interest to upgrade the countries transport infrastructure. Western companies such as Anglo American announced to invest millions in order to explore platinum and several locally owned mines have by now started producing and exporting natural resources.

Companies to watch out are:

Mwana Africa PLC. (LON:MWA)

Caledonia Mining Corporation (OTC:CALVF)

Surprise package Eritrea held Cosafa Challenge Cup champions Zimbabwe to a goalless draw in a Group B match in Nairobi at the on-going Cecafa Orange Senior Challenge Cup.

The draw means Rwanda who beat Somalia 1-0 in the opening group game lead the group with three points, while Zimbabwe and Eritrea are at one point apiece. Source: (CAF)

In the sugarcane growing town of Mumias, Tanzania recovered from their 2-0 loss to defending champions Uganda to silence Zanzibar 1-0 in a game that ended with each team one man-less. Mrisho Ngassa scored in the 18th minute, but the Kilimanjaro Stars looked for a second goal but to no avail.

Zanzibar had their goalkeeper Ali Mwadin sent off towards the final whistle, while Tanzania’s Kiggi Makasi received a second caution in the 44th minute.

Tomorrow Ethiopia will be up against Chipolopolo of Zambia, while hosts Kenya line-up against Djibouti and Burundi battle 10-time winners Uganda Cranes.

Eritrea and Zimbabwe drew 0-0 in their first Group “B” standing at the 33rd Council for East Africa and Central Africa Football Association (CECAFA) at the National Stadium in Nairobi, Kenya.

Eritrea is joined by Somalia, Rwanda and Zimbabwe in Group B and will face Rwanda in the next match on Thursday, December 3rd.

The cup is sponsored by Orange, one of the world’s leading telecommunication operators. CECAFA and Orange have agreed on a US$175,000 deal for the event, which takes place in the Kenyan towns of Nairobi and Mumias until Sunday, December 13th.

Further, Orange has agreed to sponsor the African Cups of Nations, the African Champions League, the African Confederations Cup, the Super Cup, the African Nations Championship and the African Youth Championship for the next eight years.