via UK says Zimbabwe easing black empowerment drive could boost investment | Top News | Reuters Jul 8, 2015by MacDonald Dzirutwe
HARARE (Reuters) – Signs that Zimbabwe is relaxing its black economic empowerment drive could see a rise in British investments in the southern African nation, according to an embassy report, following an exodus of investors in recent years.
Known as “indigenisation” in Zimbabwe, the empowerment policy aims to redress colonial-era imbalances by forcing foreign companies to sell majority domestic stakes to local black investors.
“Despite continued mixed signals, there are encouraging signs that the government is softening its stance on indigenisation and developing more investor friendly policies,” the British embassy report said on Tuesday.
“The policy shift offers UK companies an opportunity to increase trade and investment.”
Big British companies left Zimbabwe during the 2000-2008 period at the height of an economic crisis, also discouraged by Britain’s frosty ties with its former colony after President Robert Mugabe’s seizure of commercial farms belonging to white farmers.
Relations also soured over charges that Mugabe’s ruling ZANU-PF party has rigged votes and used violence to cling to power.
Mugabe, Africa’s oldest leader who has held power since independence in 1980, says London treats Zimbabwe as its colony and seeks to maintain influence in the mineral-rich country.
London has led Western countries in withholding financial aid to Harare in protest over Mugabe’s policies. This has hit an economy that analysts say will stagnate or fall into recession this year.
COMMENTS
‘Soften the stance’, hope to draw in more new investment, then ‘harden’ the stance – and the zanu mafia draw away more funds. Until regime change no positive development cab take place in this beautiful but sad country.
What passes for government policy in Zimbabwe are Mugabe’s convenient posturings adopted prior to Election Day; rhetoric meant only to whip up emotions and garner votes. Each time it becomes apparent soon enough that there is no thought-out implementation mechanism. This happened with land reform, war victims compensation fund, murambatsvina,
Indigenisation, Zimasset and other fanciful hare-brained schemes over the years. This explains what appears to be policy inconsistency and volatility. There was no policy to start with! Mugabe is a lizard brain whose limbic system dwells only on fear, threats and domination.