Foreign investors with investments in Zimbabwe have braced up for the worst case scenario when the nation goes for its harmonized Presidential, Parliamentary and Local government polls next Saturday. They however stand to cash in on their investments in the country should Zimbabweans bring to an end through the ballot President Robert Mugabe's eight year octopus grip on power, a situation investment and business analysts says will also bring about a speedy recovery to the country's ailing economy, now in its eighth year of stagnation.

"Zimbabwean assets are cheap, which is why some investors who believe we are at the end of a cycle are taking a closer look," an equities researcher said.

Chinese companies are among those exploring opportunities in Zimbabwe, a country that boasts of rich mineral deposits ranging from gold, uranium, platinum to diamonds.

Chinese deputy Commerce Minister Gao Hucheng, who was in Harare last month on a trade mission, said Beijing had invested $1.6 billion (805 million pounds) in Zimbabwe in 2007, although analysts say Chinese investment has yet to really take off.

"Apart from the fanfare, we have not seen much ... there are no real cash flows into the economy," Rashid Mudala, an analyst at Africa First Renaissance, said. "Maybe the Chinese, like everybody else, are waiting for things to clear up a bit."

"They do, however, appear to have strategically positioned themselves here, however the wind blows after the elections," Mudala said.

ZIMASCO produces 210,000 tonnes of high-carbon ferrochrome -- used to make stainless steel -- annually, about 4 percent of global production.

Chinese firms have also set their sights on Zimbabwe's gold, platinum and coal mines, as well as the telecommunications, power and construction sectors, by signing deals and opening negotiations for future investment.

Apart from the Chinese investments in Zimbabwe soaring, Russian investment group Renaissance Capital, LonZim's placement agency for the Zimbabwe investment, bought into CBZ Holdings - Zimbabwe's second-largest bank by assets - by snapping up a shareholding sold by South Africa's ABSA last year.

"A foreign investor looks at a number of things and asset valuation is only one factor," Mudala said.

"Political risk is also important and in terms of general competitiveness and property rights we don't rank well, although there are some investors who will put their money regardless, because assets are cheap," he added.

Investor sentiment was dealt another blow this month when Mugabe approved a law seeking to transfer control of all foreign-owned firms, including mines and banks, to black Zimbabweans.

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