via ‘Policy rethink critical for Zimbabwe’s economic recovery’ June 24, 2014 by Edgar Gweshe
AUSTRALIAN Ambassador to Zimbabwe Mathew Neuhaus yesterday said Zimbabwe needs to urgently review its investment policies to attract the much-needed foreign direct investment.
Neuhaus told NewsDay that the current investment policies had seriously compromised the potential of the country’s major sectors such as mining to spur economic revival.
He said Zimbabwe had failed to provide security of investments due to lack of clarity, adding that policy discord on indigenisation and Bilateral Investment Promotion and Protection Agreements (Bippas) had scared away investors.
“There is no progress on the economic side. In fact, the economy has gone backwards and that is particularly sad,” Neuhaus said.
“You have problems with banks’ liquidity system and you still have major policy debates around issues like indigenisation and land ownership.
“Recently, we heard statements around Bippas and once again effectively, we have been told that they do not provide protection. We have been told that businesses can be seized despite the existence of Bippas. There has to be a change of mindset.”
Early this month, Finance minister, Patrick Chinamasa told Parliament that Bippas do not prevent the government from compulsorily acquiring assets of foreign investors.
He said that the government was only obliged to pay compensation to the foreign investors.
Neuhaus expressed doubts that Zanu PF’s economic blueprint, the Zimbabwe Agenda for Sustainable Socio-Economic Transformation [ZimAsset] would help revive the country’s economy.
Zimbabwe has been experiencing major economic downturn since last year’s disputed elections won by President Robert Mugabe.
Neuhaus said: “The government issued ZimAsset, but that is not an economic plan. It is just an aspirational document. It lists the things that it wants to achieve, but there are no mechanisms to achieve those things.”
He said it was essential for Zimbabwe to build confidence among foreign investors by putting in place policies that guarantee security of investments.
“It is a question of confidence building for this country. The government needs therefore to take away obstacles to setting up businesses and investments here.
I would say Zimbabwe is standing in its own way. In Australia, people would want to come and invest here. There is potential for investment especially in agriculture and mining,” Neuhaus said.
COMMENTS
A policy rethink will do no good with these people that keep on chopping and changing. They do not honour agreements and neither do they keep promises. Even if they rethink they can cannot be trusted not to rethink on the rethink if you know what I mean. The Political set-up connected with the decision making needs to be consistent. The other thing is as long as corruption is not checked by prosecuting those that have committed it there will be no change. As long as you have a President who has a final say on everything and ignores contributions from anyone the can be no change. As long as only his word is law you can pump how much into the economy there won’t be any growth. Finally as long as all provinces and people of all colours and tribes are not given equal opportunities the economy will suffer.
Very gently said
Very well said. Totally agree with ‘Dr Do Little’
There is no point talking Ambassador. These thugs only deal with corrupt people and governments such as China. Your government is to clean for Zanu .
Good words and good to see someone standing up and telling the truth. Need to get ZPF out of here
never again I lost due to the fact that Zimbabweans cant be trusted with money they all act like Mugabe they grab and grab not even the high court can make a ruling. I have advise many business associates to stay clear of zim they simply don’t want direct foreign investment