News / National
EU attacks unfriendly Zimbabwe indigenisation law
12 Nov 2014 at 12:32hrs | Views
The head of the European Union (EU) to Zimbabwe, Ambassador Philippe Van Damme says the realignment of the country's constitution with its laws could be useful in ensuring that the Indigenisation Act does not deter investors because of its ambiguity and unpredictability.
Van Damme told a press conference at a club in Bulawayo yesterday, that the EU was working to create an enabling environment to improve the investment climate in Zimbabwe.
He said after the lifting of Article 96 of the Cotonou Agreement, which prohibited trade with Zimbabwe, the bloch was now mandated to work with government on formulating strategies to make the various sectors that drive the economy competitive.
Van Dame however criticised the Indigenisation law which he said was a major hindrance to the extension of aid from investors to the country.
"Investors need a level playing field. They need legal predictability, a predictable judiciary that will interpret the law in an unambiguous and predictable way that is similar for everyone.
"The problem with the Indigenisation law is not the options taken by government because that is the political decision of the government. The problem is that the Indigenisation law contains loopholes and ambiguities which put investors in an uncertain footing and government needs to clarify this," he said.
"Investors cannot make investment decisions on the basis of negotiated exceptions to law for which there is no legal basis. A responsible investor has to be sure about the legal basis of the investment," he added.
He said the law must be clarified, adding that nobody contested it because it is the sovereign right of Zimbabwe but its policies must be translated into clear, unambiguous laws.
The EU has lifted part of the sanctions effected on Zimbabwe in 2002, a move that will see the bloch engaging with government in development finance co-operation.
Van Damme said the removal of "sanctions" meant that aid would now be channelled to government instead of being sent directly to nongovernmental organisations.
"Through the process of restoration of essential elements, we renewed our decisions and the position is that the development cooperation will now be channelled through government rather than the non-governmental organisation as was the situation in the period when we felt the government was in breach of the Cotonou Agreement and we took appropriate measures which you called sanctions," he said.
Van Damme said the renewal of the restrictive measures on the President Robert Mugabe and the First Lady Grace Mugabe would be reviewed in February 2015 with a view to fully normalise relations.
Van Damme told a press conference at a club in Bulawayo yesterday, that the EU was working to create an enabling environment to improve the investment climate in Zimbabwe.
He said after the lifting of Article 96 of the Cotonou Agreement, which prohibited trade with Zimbabwe, the bloch was now mandated to work with government on formulating strategies to make the various sectors that drive the economy competitive.
Van Dame however criticised the Indigenisation law which he said was a major hindrance to the extension of aid from investors to the country.
"Investors need a level playing field. They need legal predictability, a predictable judiciary that will interpret the law in an unambiguous and predictable way that is similar for everyone.
"The problem with the Indigenisation law is not the options taken by government because that is the political decision of the government. The problem is that the Indigenisation law contains loopholes and ambiguities which put investors in an uncertain footing and government needs to clarify this," he said.
"Investors cannot make investment decisions on the basis of negotiated exceptions to law for which there is no legal basis. A responsible investor has to be sure about the legal basis of the investment," he added.
He said the law must be clarified, adding that nobody contested it because it is the sovereign right of Zimbabwe but its policies must be translated into clear, unambiguous laws.
The EU has lifted part of the sanctions effected on Zimbabwe in 2002, a move that will see the bloch engaging with government in development finance co-operation.
Van Damme said the removal of "sanctions" meant that aid would now be channelled to government instead of being sent directly to nongovernmental organisations.
"Through the process of restoration of essential elements, we renewed our decisions and the position is that the development cooperation will now be channelled through government rather than the non-governmental organisation as was the situation in the period when we felt the government was in breach of the Cotonou Agreement and we took appropriate measures which you called sanctions," he said.
Van Damme said the renewal of the restrictive measures on the President Robert Mugabe and the First Lady Grace Mugabe would be reviewed in February 2015 with a view to fully normalise relations.
Source - Zim Mail
