Opinion / Columnist
Mugabe call encouraging but.....
12 Aug 2015 at 13:05hrs | Views
President Robert Mugabe's encouraging statement on respecting investor rights should not be allowed to stop with the full stop on the paper on which his Heroes Day speech was written on!
It's significant that Mugabe, who is seen as a stumbling block to attracting investment into Zimbabwe, chose a day that he usually attacks the West and United States, to send a good call to investors who remain wary of his policies seen as investor unfriendly.
"We are a country that observes and respects the rights of investors. We are prepared to listen to investor concerns and are in the process of managing the cost of doing business so that investors are comfortable to operate in this country," Mugabe told his supporters on Monday.
Since the enactment of the Indigenisation and Empowerment Law, whose implementation of 51/49 percentage ratio favouring locals at the expense of foreign investors, Zimbabwe has suffered terribly to attract meaningful investment.
We are hoping that Mugabe's call to respect investor-rights would be universal as his government has often displayed worrying tendencies of disregarding such pronouncements. Respecting investor rights includes protecting their properties not what we have seen happening at farms where foreign investors are involved in production.
Cases in point include seizures of land belonging to partners operating under the Bilateral Investment Promotion and Protection Agreements (Bippas) signed between Zimbabwe and other countries.
It is our expectation this time round that Mugabe and indeed his administration which is, slowly but surely beginning to mellow after years of obstinacy and bickering with the West and its key allies in Scandinavian countries and the United States, will go beyond just his statement.
Mugabe and Zanu PF should be seized with refining and amending the indigenisation law to woo investors who remain doubtful of Zimbabwe's attitude towards them.
What is needed is for policy consistency that helps build confidence. The biggest problem that Zimbabwe faces is that of bad perception and the resultant lack of confidence. Capital is timid and those who own it need clear-cut policies that attract and secure their investments.
Mugabe and colleagues must not continue to be synonymous with policies that suffer stillbirths as a result of political control. Zimbabwe remains part of the world and right now needs to make the right economic noises to emerge from the current shackles. It is our expectation that Mugabe will lead by example and honour his promises.
It's significant that Mugabe, who is seen as a stumbling block to attracting investment into Zimbabwe, chose a day that he usually attacks the West and United States, to send a good call to investors who remain wary of his policies seen as investor unfriendly.
"We are a country that observes and respects the rights of investors. We are prepared to listen to investor concerns and are in the process of managing the cost of doing business so that investors are comfortable to operate in this country," Mugabe told his supporters on Monday.
Since the enactment of the Indigenisation and Empowerment Law, whose implementation of 51/49 percentage ratio favouring locals at the expense of foreign investors, Zimbabwe has suffered terribly to attract meaningful investment.
We are hoping that Mugabe's call to respect investor-rights would be universal as his government has often displayed worrying tendencies of disregarding such pronouncements. Respecting investor rights includes protecting their properties not what we have seen happening at farms where foreign investors are involved in production.
It is our expectation this time round that Mugabe and indeed his administration which is, slowly but surely beginning to mellow after years of obstinacy and bickering with the West and its key allies in Scandinavian countries and the United States, will go beyond just his statement.
Mugabe and Zanu PF should be seized with refining and amending the indigenisation law to woo investors who remain doubtful of Zimbabwe's attitude towards them.
What is needed is for policy consistency that helps build confidence. The biggest problem that Zimbabwe faces is that of bad perception and the resultant lack of confidence. Capital is timid and those who own it need clear-cut policies that attract and secure their investments.
Mugabe and colleagues must not continue to be synonymous with policies that suffer stillbirths as a result of political control. Zimbabwe remains part of the world and right now needs to make the right economic noises to emerge from the current shackles. It is our expectation that Mugabe will lead by example and honour his promises.
Source - dailynews
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