Chinamasa appeals for foreign investment

via Chinamasa appeals for foreign investment NewZimbabwe 05/05/2014

FINANCE Minister Patrick Chinamasa has urged foreign investors to consider doing business with Zimbabwe, assuring them that “no one would take 51% of their money”.

Chinamasa was referring to the country’s empowerment programme under which foreign companies must, by law, localise control and ownership of at least 51 percent of their Zimbabwe operations.

Critics say Zimbabwe is losing out on much-needed foreign investment due to concerns over the policy.

The programme was implemented in the mining sector under the last coalition government but a bid to tackle foreign-owned banks led to clashes between former empowerment minister Saviour Kasukuwere and Gideon Gono who headed the central bank.

Lately, Harare has signalled a change of attitude with officials saying there would be no one-size-fits-all approach to implementation of the policy.

On Monday, Chinamasa said the government would welcome foreign capital in the banking sector.

He was speaking in Harare at the two-day conference organised by SAPES which is running under the topic, Enabling Environment, Consolidating Constitutional Reforms and Strengthening National Institutions.

“Indigenisation Minister Francis Nhema will put a proposal to the country’s cabinet, sector by sector, and government is quite comfortable with the injection of foreign capital in the banking sector because it will increase the volume of credit to the productive sector,” he said.

“We are (also) inviting investment in water, power generation, road, railway network, irrigation infrastructure, information and communication technology and the government will invite operators through built, operator transfer skills.

“The government is committed to assisting in reforming and building the public service capacity not least improvement in service delivery in all sectors effective and quick decision making and the eradication of self defeating red tape and corruption.”

The government is struggling to fire an economy battered by a decade-long recession with opposition groups warning that the ruling Zanu PF party was out of its depth.

Chinamasa has been the target of some of the criticism but officials have dismissed as mischievous claims he could be the target of a possible Cabinet reshuffle.

Vice President Joice Mujuru also backed the treasury chief during party rallies at the weekend.

“There are a lot of people saying our Finance Minister is not good enough,” Mujuru told Zanu PF supporters in Marondera on Saturday.

“Some say, ‘How can a lawyer be the Finance Minister? (President) Mugabe is only taking his cronies’. What I can tell you today is we are fully behind him and we will support him.”

Chinamasa, meanwhile, blamed the country’s continuing economic problems on sanctions imposed by western countries.

He said: “While other economies in Africa and across the globe have experienced record remarkable and rapid economic growth due to their access to international capital, investments and markets, Zimbabwe has remained largely closed due to sanctions and such related consequences that impacted negatively and exacerbate the country’s economic malaise.”

The minister made clear Harare was committed to re-engaging with the West but said there was need for countries which imposed sanctions on the country to “honestly reciprocate” the government’s efforts.


  • comment-avatar
    John Thomas 9 years ago

    Investors must find a big fat liar like Chinamasa to be very reassuring

  • comment-avatar
    Jono Austin 9 years ago

    The trust factor is gone Chinamasa. Your party ignores and flouts the law. Your word means nothing. I’d rather trust a scorpion than you.

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    Roving Ambassador 9 years ago

    He is desperate. As far as I know no one is allowed to go into power generation, railways, water,toll,airline routes like Vic falls, Jo’burg and London. These are all government monopolies and are protected by law. You have to pay big back handers to get into these.
    Correct me if all has changed.

  • comment-avatar
    MikeH 9 years ago

    No one in their right mind would invest in Zimbabwe !!! zanupf simply cannot be believed and/or trusted.

  • comment-avatar
    Tiger Shona 9 years ago

    Zanu PF are not making the right moves, and even if they did, nobody will trust them.
    The arrogance of these fools are truly amazing.

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    Mlimo 9 years ago

    It’s time the zanupf govt of terrorists realises that outside Zimbabwe you are judged not by how close your face is to mugabes @rse but on ones credibility and honesty. If you don’t pay back loans you can’t borrow more money. Secondly the world is finding it tough so investors can pick and choose their investment particularly in countries who have never defaulted on lines of credit and who do not expect 51 percent local gives always. And with Zimbabwe ranked in the bottom 3 in corruption world wide NO one is going to invest there. Zanupf have won a rigged election but have failed and lost a country. The world will only accept a change in govt and replacement of tyranny with impartial rule of law, unbiased judges, impartial police and a curbing of army powers. Nothing less . The govt would also have to repeal all the useless zanupf policies.

    • comment-avatar

      You are right my friend. I for one, will never ever invest my money and or talent in Zimbabwe.I will lose 51% of my hard earned money. I used my money and my God given talents and had work to acrrue my welth and in turn created employment, by the way, I was born in Zimbabwe, and now I am contributing to the economy of my adopted country… big time. I donate to charity, as long as my money does not go to Zimbabwe. I don’t want zanupf to benefit from my earnings.

      continue to rig the elections mugabe, you may consider yourself the “winner” of these rigged elections, but you have lost the economy. That’s your downfall. Once you and zanupf are gone, i may reconsider my decision and bring my money and my talents back to zimbabwe and create jobs for my fellow zimbabweans. Until then forget it .I will never give 51% of my company to you or anyone else.

      the economy is one thing that can never be riggged. That’s a hard fact.I just love it. In reality mugab you have lost.

      • comment-avatar
        Don Cox 9 years ago

        Governments can make the economy worse, but not better.

        Only small businesses can generate real growth, and the best a government can do is to remove laws that inhibit business.

        For example, think how much money could be made from a truly free press in Zimbabwe.

  • comment-avatar
    Chivi 9 years ago

    I’m sure any normal investor will be scared of a government that allows war veterans to murder white farmers and grab the land, and no one is arrested. Land which could have been repossessed through a simple legislation without spilling any blood. Now without any apology, you are inviting more whites to bring their money!

  • comment-avatar
    Roving Ambassador 9 years ago

    The treasonous acts will continue. ZANU is not capable of negotiating any deals unless violence is used. They have s broad list of failures, and here is a few.
    They went into the Congo war with a promise of big payoff, they got nothing. They sold arms to the Tamil,no payment was done. They bought properties and factory equipment from Asia and South Africa, never received the goods, .They have just sold diamonds in Dubai and no one knows where the money is.
    And my friends this is all state money.
    Now they want to sell the Zimbabwe, guess what? They will get zilch.

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    JOHNSON 9 years ago

    This is a desperate call from our good minister. He is not only a finance minister, but also a ‘lawyer’. Mr Chinamasser must understand that the other countries which have FDI do not have nationalization policies…whatever you call it in Zimbabwe. Second this policy is the first of its kind and therefore grossly untested.Third the policy was driven by cynicism, arrogance and a ‘what can you do to us mentality’. What makes the investors afraid is the arrogance and impunity part and the govt’s capacity to change laws to their benefit in a flash, meaning that they can shift like quick sand. Investors can hear, but they are likely not to understand unless concrete action is taken to undress this bad policy and the rule of law. LAW is important in a nation purporting to be civilized. Words are not enough to people who cannot accept the ‘transfer of power by the stroke of a pen’. The way they brag and the way they beg are inconsistent. other ministers say they want to remove bad laws and at the same some are determined to enforce them. Which is which here. SO NO MORE WORDS FOR NOW…..MORE ACTION ON TERRA FIRMA!!! RIGHT!! Sir Chinamasser I bet if you throw away (not modify) certain policies next month Zimbabwe will be the most powerful economy in Africa. Believe me

  • comment-avatar

    For foreign investment confidence, start by correcting the failed land reform. Kick out all those peasant farmers in commercial farms and give them to productive farmers black or white. Government officials must ONLY have one farm! If you are married you own the farm jointly.

  • comment-avatar
    wenyoro 9 years ago

    I guess teachers won’t be reaped off there salaries this tym around

  • comment-avatar

    Lawyer? Did he get his degree from a lucky packet??

  • comment-avatar
    Daniel 9 years ago

    Correct the land issue for starters.Jan,Chivi and Mahlaba you are spot on!!

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    munzwa 9 years ago

    Why these articles keep coming up i just don’t know. Nothing has changed with zanu, perhaps a realization that they cocked up but still thick skinned enough to keep asking.Ask those guys who have all our diamond money stashed away elsewhere to come in and invest…

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    just saying 9 years ago

    As others have said ZPF’s word is just not good enough. It is clear from their recent ‘bleatings’ that these clowns have at last realised that their indigenisation policy is a non starter. But a lot more needs to be done & frankly I don’t believe they are capable of reversing their hugely damaging ‘land grab’ policy so we will continue going nowhere slowly.

  • comment-avatar

    I believe the west should send scientists to zims to analyse zanupf and mugabe.This form of reasoning is unique to this world , it might just reveal some undiscovered matter in their brain tissue.

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    Kabunga 9 years ago

    ZanuPF can say what they like but no one will invest until the indigenisation laws are changed.