Poor investment policies hindering efforts to tackle Zim economic challenges

Prime minister Morgan Tsvangirai says efforts to tackle the economic challenges affecting the country are being hampered by poor investment policies, the Daily News reported

"We are aware of the challenges before us that range from huge debt burden, exportation of unprocessed minerals, poor infrastructure such rail and road networks, low capacity utilisation, energy shortages, low employment levels," said Tsvangirai during Zimbabwe International Trade Fair's International Business Forum held in Bulawayo yesterday.

The premier said government's role was to provide a stable environment that facilitates the growth and development of business in line with international standards and accepted norms.

"In creating such an environment, restoring the rule of law is both a moral imperative and a business necessity. If business is the engine of growth, then the rule of law is the fuel that drives that engine," said Tsvangirai.

He said Zimbabwe had a potential for growth but what was needed was to adopt economic policies that promote growth and shunning those that send wrong signal to the investment community.

"The key issue to consider is how we can best reshape our economic destiny, and create a national economy which responds to the expectations of our citizens for jobs, decent earnings, stable prices, a bankable currency …" he said.

The Prime minister said there was urgent need to disburse funds under the $40 million Distressed Industries and Marginalised Areas Fund.

"My tour around the country to asses government work programme revealed a sorry state. There are many closed companies, ghost towns, distressed workers and this has been the story of Zimbabwe," said Tsvangirai.

The International Business Conference was attended by over 200 delegates and was under the theme "Investing Locally, Building Local Capacity and Reaping Dividends Globally: Turning a Rich Resource-Base into an Industrial Hub."