via ‘Zimbabwe’s Indigenisation policy scares away Canadian investors’ March 14, 2014 NewsDay
CANADIAN Ambassador to Zimbabwe Lisa Stadelbauer has said investors from his country were a bit jittery over the current state of the investment climate in Zimbabwe.
Addressing legislators attending a two-day Zimbabwe Agenda for Sustainable Socio-Economic Transformation (ZimAsset) seminar in the capital on Wednesday, Stadelbauer said foreign investors were scared of the country’s indigenisation policy.
“Canadian companies are concerned with the uncertain business environment in Zimbabwe,” Stadelbauer said.
“They do not understand what is expected of them under the Indigenisation Act, and many are not willing to give up their controlling stake in their companies.
“They are concerned of what they see as unequal and inconsistency application of the law and they are concerned about the stability of the banking sector and they are concerned about corruption too.”
She said Canadian companies were currently active in 36 sub-Saharan African countries with the largest concentration of assets worth $10 billion in eastern and southern Africa.
“I believe there is a lot Canadian companies can offer to Zimbabwe. Very little investment of the $10 billion is in Zimbabwe, other neighbouring countries to Zimbabwe are seen as more attractive investment destinations for Canadian companies,” she said.
Stadelbauer said according to a recent international survey by a Canadian independent think-tank, the Fraser Institute, Zimbabwe was ranked as one of the least 10 desirable jurisdictions for mining companies in the world.
She said Zimbabwe was also ranked 106 out of 112 countries when it comes to policy attractiveness which includes the regulatory framework and number 85 when it comes to mining potential when policy attractiveness was excluded.
COMMENTS
The Canadian Ambassador just spoke the understatement of the year….. “a bit jittery” ?????
Canadian investors ( myself included ) are TERRIFIED of investing ANYTHING in Zim., and we are not the only ones…..the ROW is in excatly the same boat……
Mark Twain said ” I am less concerned with the return ON my investment than I am about the return OF my investment ” and that quote fully applies to Zimbabwe !!!!!
Anyone investing funds in Zim today, under the present regime needs their head examined…….I did it years ago ( as have others) and have obviously regretted it……thought matters were going to improve, but how wrong I was !!!!!!
The ambassador was just being diplomatic which is why none of us on this blog could ever be a diplomat. We are sick of diplomacy and just want to say the truth
Zanu itself will not invest in Zimbabwe. It is believed when they cheated us into power,3 billion dollars was extenaliZed by businesses. But under the rudder was $2 billion from the Zanu culprit themselves,they dont trust their own government.
Now we see the Chinese don’t trust them either.
Like I said Who will deal with thieves. Zanu must think people are stupid. We Zimbabweans maybe gullible Zanu but we are not stupid .
Who would invest in a country where the law says your investment can be taken away from you? I doubt this is just investors from Canada that are jittery. ZANU wants Zimbabweans to suffer in poverty and starve because they are easier to control under those conditions.
Why don’t Zimbabweans vote ZANU out? They did vote ZANU out but those crooks make up the election results to suit themselves.
I agree with Mark. Internalized oppression at it’s best.
Zimbabwe seems to have wasted the unique opportunity of being the only Sub Saharan nation that uses the US dollar. This means that we offer no foreign currency risk to American investors and much less forex risk to other investors like Canada and those in the EU. But we need to consolidate and crystallize this opportunity by refining our Indegenisation laws and investment policies as well as reforming our institutions to take out corruption and improve the rule of law. We could quite easily be among the most attractive investment destinations in the region!
No person in his right mind is going to invest $100 today and have $51 stolen the following day! The Canadian Ammb should let it like it is, they are THIEVES AND WILL STEAL YOUR MONEY.
The False Jitters of Bogus Investors/ Suitors Feigning ‘no interest’:
Here is what I see: Investors are suitors trying to impress the resource-ladden nations like Zim. Point by point:
1. Indigenization: A legal requirement which any seriuos investor has to factor into the project appraisal. In business the say high risk high return. This now applies to Africa and its resources. Gone are the colonial days of ‘no risk high return’.
2. Uncertainty: The only uncertainty is when sanctions will be removed by fomer colonial countries. The ambaseda should influence these nations to remove sanctions as we know she can.
3. Clarity/ Understanding: 51%-49% is very clear and unambigouos. Even an elementary school pupil can do the maths and get it. To those who dont like it – that is fine with us zimbos, we’d rather our resources stay unexploited.
4. Surveys and Commentaries: These are not our headache. anyway they are looking east to the African continent, while we are looking east to China. It’s a win-win because we see real investors and not exploiters. ivo vanozosvika dzamira nemhuru!
As I stated- they are the suitors and our terms are clearer than day under the African sun!
Ambaseda?
The word you’re looking for is “ambassador.” It’s not illegal to be economically illiterate, but it’s a terminal mistake to preach to others from the vein of your ignorance.
politics of economics. back to socialism
Ndebvu Mukomichi,sadly it is people like you who are just parrots,something typical of peolpe with intellectual limitations.For goodness sake spare the readers this sanctions garbage-yes there are sanctions of sorts but the impact of selective application of the law means corruption will never be eliminated-this clearly has by far a bigger impact on the economic meltdown than the so called sanctions: and some fools will still be clapping their hands even when they are suffering like the rest of us-just when will the likes of you learn that the rank and file are being used by those in power who are absolutely ruthless in enriching themselves-the riches through theft and corruption of some of the ministers speak volumes.What will it take for you and others who think like you,to wake up and smell the coffee
These thieves in ZANU-Pf seem to frighten investors much more than the thieves in the private sector who externalized billions through transfer pricing through the last three decades of the previous millennium, Horticulture and tobacco. Much more than the thieves in mining that stole diamonds in truckloads from Marange before 2008, De Beers and ACR. Much more than the thieves in the Platinum sector not declaring an ounce of Platinum Group Metals they are extracting from the land, BHP and Zimplasts.
What investors are scared of is the big bad menacing hammer of ZIDERA, they just wouldn’t dare! Damn these ZANU-Pf thieves, they have really spoiled it for everyone by making everyone aware that it was never about what the land grew but its been about what it hid in it’s belly all along!