Business / Economy
AfDB says Mixed policy signals hamper the economy
14 Mar 2011 at 11:06hrs | Views
Confusing signals from Zimbabwe's government on its policies are hampering its recovery and keeping investors away, African Development Bank (AfDB) president Donald Kaberuka said in Pretoria on Monday.
Kaberuka, speaking at a press conference at the end of a six-day official visit to South Africa, said Zimbabwe had started to recover from "a very low base" since it had effectively abandoned the Zimbabwean dollar.
However, in order for investors to return the country needed to spell out its policies clearly.
He said that on a recent visit to Zimbabwe he had informed the government there that clarity (and) predictability were needed, especially with regard to property rights.
"I think the signals coming out of Zimbabwe can be quite confusing for investors." Zimbabwe has been governed by a powersharing government since the 2008 disputed elections with the Movement for Democratic Change leader as prime minister, while Robert Mugabe continues to hold the post of president.
Last month Kaberuka was in Zimbabwe to launch the AfDB's Zimbabwe Multi-donor Trust Fund, which according to the AfDB has an initial commitment of $68.8m.
Referring to the recent events in the North African countries of Tunisia, Libya and Egypt, he said he did not expect a "domino effect" from these countries into sub-Saharan countries.
All three countries had been controlled by autocratic governments and had sustained economic growth which had failed to create jobs for their growing populations.
He cited Tunisia - where the AfDB is headquartered - as having had sustained economic growth of close to 6% annually for several years, but less than 60 000 jobs were created.
Unlike the North African countries, most of sub-Saharan Africa had embraced democracy with regular elections and in 2011 there would be 17 national elections.
"I don't buy this domino theory. They will be imperfect elections, but elections nevertheless."
Kaberuka said the AfDB had not revised its growth forecasts for sub-Saharan African countries.
The biggest threat to growth in these countries was the rising oil prices, and he hoped the increase in the price of resources would offset the effects of oil price hikes.
Kaberuka, speaking at a press conference at the end of a six-day official visit to South Africa, said Zimbabwe had started to recover from "a very low base" since it had effectively abandoned the Zimbabwean dollar.
However, in order for investors to return the country needed to spell out its policies clearly.
He said that on a recent visit to Zimbabwe he had informed the government there that clarity (and) predictability were needed, especially with regard to property rights.
"I think the signals coming out of Zimbabwe can be quite confusing for investors." Zimbabwe has been governed by a powersharing government since the 2008 disputed elections with the Movement for Democratic Change leader as prime minister, while Robert Mugabe continues to hold the post of president.
Last month Kaberuka was in Zimbabwe to launch the AfDB's Zimbabwe Multi-donor Trust Fund, which according to the AfDB has an initial commitment of $68.8m.
Referring to the recent events in the North African countries of Tunisia, Libya and Egypt, he said he did not expect a "domino effect" from these countries into sub-Saharan countries.
All three countries had been controlled by autocratic governments and had sustained economic growth which had failed to create jobs for their growing populations.
He cited Tunisia - where the AfDB is headquartered - as having had sustained economic growth of close to 6% annually for several years, but less than 60 000 jobs were created.
Unlike the North African countries, most of sub-Saharan Africa had embraced democracy with regular elections and in 2011 there would be 17 national elections.
"I don't buy this domino theory. They will be imperfect elections, but elections nevertheless."
Kaberuka said the AfDB had not revised its growth forecasts for sub-Saharan African countries.
The biggest threat to growth in these countries was the rising oil prices, and he hoped the increase in the price of resources would offset the effects of oil price hikes.
Source - Byo24News
