We’re open to new ideas, Chinamasa tells investors

via We’re open to new ideas, Chinamasa tells investors | The Herald 26 November 2014

FINANCE and Economic Development Minister Patrick Chinamasa says foreign investment can prosper in Zimbabwe contrary to reports that say otherwise. Minister Chinamasa said investors should, without delay, grab abundant investment opportunities in the country, as this was the right time to do so as Government now wanted to do a number of things differently.

Addressing over 300 delegates during The Herald Business Zimbabwe Trade and Investment breakfast meeting in Sandton, South Africa, last Friday, Minister Chinamasa said opportunities were enormous.

“Take them, this is the time to do it.”

“Please, we are open to any ideas, which produce wealth and contribute to our economic growth. We want to do things differently. People still think about us as in the past; that we are still mired in the trenches. We are out of the trenches,” Minister Chinamasa said.

Zimbabwe was rocked by a decade long economic meltdown, characterised by rampaging inflation, which decimated half the country’s gross domestic product and precipitated the collapse of several companies.

The meeting was punctuated by repeated calls from the minister, South African firm Get Bucks chief executive Dave van Niekerk, Canadian firm Caledonia director Stefan Hayden and SA hotelier Legacy Group Holdings,chairman Bart Dorrestein, for long-term, not short-term positions in Zimbabwe.

The executives, while citing indigenisation as an issue, generally agreed that Zimbabwe was open for investment and offered attractive opportunities.

“If Qatar can work, then I tell you that Zimbabwe can work a hundred times better,” said Mr Dorrestein, whose firm is hunting for assets in tourism. He hailed Zimbabwe’s human resources as a huge plus for the country.

Minister Chinamasa said Government was keen to improve the doing business environment and relied on investors to point out challenges they faced to help the authorities to assess how they were doing on policy matters.

“We rely on you to be predictable and consistent. Come to us with the challenges because they help us to improve the business environment,” he said.

“We will offer a predictable, clear and consistent policy environment in which you can come to invest and prosper,” Minister Chinamasa told the delegates.

The policy environment, said the minister, will be anchored on the multi-currency regime, predominantly characterised by the United States dollar. Importantly, the minister said Government will respect property rights.

Minister Chinamasa said a number of initiatives, including re-engaging bilateral and multilateral lenders, addressing doing business constraints, capacity issues of the central bank, issues plaguing banks and rigidities in the labour market among others were being pursued to enhance confidence.

Further, the Finance Minister said efforts were underway to establish special economic zones and ensure policy clarity, especially the country’s equity laws, which the majority of investors are have raised over the years.

Speaking at the same event, Reserve Bank Governor Dr John Mangudya said Zimbabwe was an excellent investment destination with good climate, open economy, huge resources, good human capital and is poised for take-off.

The RBZ chief said there was a lot of goodwill for Zimbabwe across the world and said the country needed to ride on the vibe to attract investment.

“The country is not about to collapse, the huge import bill should be seen as an opportunity because it shows the country has capacity to pay its obligations.

“The banking sector is sound; we have nine foreign and 12 indigenous banks. This shows that Zimbabwe is open to investment in the financial sector,” he said, adding foreign investors were free to repatriate 100 percent dividends.

Responding to journalists after the meeting, Minister Chinamasa also indicated that Government was cognisant of the fact that the country had numerous taxes that were affecting viability of most business. He said that Government was working hard to address the tax burden.

But he reckoned that businesses in Zimbabwe carried the hyperinflationary mentality post dollarisation, which raised the cost of doing business.

Minister Chinamasa said opportunities existed in various sectors including agriculture, manufacturing, infrastructure, mining, ICTs and social services while investors could also partner Government, especially in resources.


  • comment-avatar
    Sheila Goreraza 7 years ago

    Lies, lies, lies! Herald lies are beyond belief!

  • comment-avatar

    Chinamasa talks about clarifying the indigenization act and a new desire to respect property rights, but foreign investors will not return in great numbers until the entire act is repealed. And so far as property rights are concerned, actions speak louder then words. Mister Finance Minister, please tell us about all of the violators of BIPPAs that have been sent off to prison for stealing property from its legal foreign owners? You cannot, because there are none. Until Mugabe changes his tune and starts to provide restitution, or the return of stolen property, then foreign investors will continue to shun the country.

    The Minister also has his boss’ annoying habit of blaming others. He says that businesses continued to behave as if the inflationary period continued, but he neglects to assume responsibility for government creating the inflationary environment in the first place by printing worthless money, and even now, condoning the assault on business success by ignoring the 30-40% surcharge on every transaction caused by corruption. Has a single person ever paid restitution or served jail time in Zimbabwe for corruption? No, because the government promises one thing, but does another – sort of like everything else under Mugabe.

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    Petal 7 years ago

    -Sanctions have caused Corruption
    -Demanding That South Africa invest or have a flow of people crossing into South Africa
    -The country is not a basket case
    -Now they are open to ideas
    the next day he will be saying something else againt to cover up their tracks
    Think not they are only open to loot from the investors money for themselves- just thieving scumbags in it all for themselves

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    Tiger Shona 7 years ago

    You can believe this guy at your own peril.
    Just look at their track record.

    A very simple example….the 2002 election result. They stole it.

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    Tiger Shona 7 years ago

    Investors are always looking for a good place to invest;
    The problem is that Zimbabwe is a very bad place to invest.
    The government pass laws that make investors loose their investment.

    Some advice for Chinamassa;

    Go back to Zim, and make the changes that investors wants to see, and the investment will come.

    And repent!!

    We all know what is wrong, but Zanu PF will not change that; so, no investors!

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    Charles Frizell 7 years ago

    These idiots thought they could tear up The Rule of Law and everything would be OK. I have been saying for years that the Rule of Law is essential to progress.

    This “I am not the one” song is plain stupid, and the “Indigenisation” thing is the second most stupid thing ever done in our country

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    Nyoni 7 years ago

    My comment about South Africans wasnot put in. Anyway we all have our opinions but it still sticks. No gain no pain. The South African way.

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    mandevu 7 years ago

    You want some ideas? Just leave – that would be the best Christmas present

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    chimoto chimoto 7 years ago

    How can we expect more investors to come in numbers when those who are already operating here are closing their shop-doors. All we need is a level business playing field with an impartial and consistent referee, where the rules of the game are not just changed to suite one side’s convenience. Otherwise this preaching will convert and/or convince none but rather confuse many.

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    Petal 7 years ago

    Investing where thieving scumbags call the shots and have the likes of Mliswa demanding the foreign business definitely a no no what has happened to the business this Mliwsa took by force from a foreign business person- has it been given back???