Government must reform to attract investment and revive economy

via Government must reform to attract investment and revive economy | SW Radio Africa by Tichaona Sibanda on Thursday, November 21, 2013  

The ZANU PF government must urgently implement reforms to revive the economy which is sliding backwards since the ‘disputed’ elections in July, according to an economist.

Luke Zunga, a Johannesburg based economist said it is imperative for the government to rethink its policies and introduce necessary changes to attract investors and donor funding.

“The government of Zimbabwe must be encouraged to advance policies that promote a secure investment climate and good governance,” Zunga told SW Radio Africa on Thursday.

After so many years of animosity between Zimbabwe and the United States, Zunga believes it is high time the ZANU PF led government swallowed their pride and begins to set the relationship on a more constructive path.

Political observers point out that the people of Zimbabwe have suffered greatly as a result of ZANU PF’s strained relations with the West, and there was need for the international community to help Zimbabweans by way of massive economic assistance, energy and infrastructure development.

“ZANU PF should acknowledge that there will be no economic growth without political reforms. Donors who funded the inclusive government have stopped pumping in money because they need to see reforms first before committing themselves,” Zunga said.

He added: “There has never been ready cash in Zimbabwe. The country survived on donor funding during the tenure of the unity government and the liquidity crisis has come about because the same donors will not fund a government that is not democratic.”

The economist said there is a possibility Finance Minister Patrick Chinamasa may be forced to apply to the International Monetary Fund for assistance, an option that will inevitably come with a series of conditions.

“If it is a government for the people, they should be willing to implement some of the politically-sensitive reforms demanded by the Western countries in order to secure billions of dollars to keep the economy afloat,” Zunga said.

Zimbabwe is facing a major financial squeeze as it seeks to raise funds to pay civil servants in an economy where revenues are thinning, while the unemployment rate hovers close to 90 percent.

The government is desperately seeking an infusion of millions of dollars to shore up the country’s finances, four months after ZANU PF ‘won’ by a landslide victory.

The relatively ‘stable’ economic situation under the previous unity government has been made worse after donors slashed funding pledges, due to concerns about electoral rigging and the slow pace of reforms. It’s feared the development partners could freeze more funds in the upcoming year if ZANU PF fails to speed up reforms.

 

COMMENTS

WORDPRESS: 12
  • comment-avatar
    Nyoni 8 years ago

    Pride is one thing . Creating hardship to the prove a point is another. What has Zanu got to lose if our begins to prosper? The mind boggles!

  • comment-avatar
    Sekuru Mapenga 8 years ago

    Mugabe is so proud; he would rather that the people starve before he has to say sorry, I was wrong.

    • comment-avatar
      Diego Zhaba 8 years ago

      With level of arrogance and the untouchable ego, Mugabe will never apologise. He would rather give an excuse than apologise. That’s typical Hitler style. That is the reason he always find fault in others for his own failures. He blames America and her allies for non performing economy and diverts people’s attention so that they think he is right.

      He never takes responsibility for his actions, he is never accountable and if you question then you find yourself in the gallows.

  • comment-avatar
    Kalusha 8 years ago

    President is right,people voted why cry foul

    • comment-avatar
      nesbert majoni 8 years ago

      No one voted. That is an insult to the suffering people.

    • comment-avatar
      Boss MyAss 8 years ago

      DO YOU TAKE YOUR PILLS AS INSTRUCTED BY THE DOCTOR ?

  • comment-avatar

    And pigs might fly.

  • comment-avatar
    Boss MyAss 8 years ago

    WE ARE THE CHAMPIONS IN STUPIDITY: ALL foreigners operating in reserved sectors of the economy are left with one month to comply with the Indigenisation and Economic Empowerment Act by vacating reserved sectors, a senior Government official told Parliamentarians this morning.Permanent secretary in the Ministry of Youth, Indigenisation and Economic Empowerment Mr George Magosvongwe told a joint meeting of the Parliamentary Portfolio Committee on Youth, Indigenisation and Economic Empowerment and the Thematic Committee on Indigenisation and Empowerment co-chaired by Gokwe-Nembudziya MP Cde Justice Mayor Wadyajena and Harare Metropolitan Senator Cde Cleveria Chizema respectively.

    “I confirm that some non indigenous entities are still operating in the reserved sectors and there is deadline for 01 January for them to

    comply with the requirement to relinquish their holdings in that sector,” said Mr Magosvongwe while responding to a question from Cde

    Wadyajena on what Government was doing to ensure compliance.

    “You will realise Mr Chairman that 01 January is a month to come and we are putting in place measures for enforcement in the event that they do not comply.”

  • comment-avatar
    Kuakwa Katiyo 8 years ago

    How are non-public companies/individuals going to comply with the indigenisation act? Is the Act forcing companies to change their type by force. So if I am a foreigner and I want to invest in Zimbabwe as a sole proprietor my investment is not welcome?

    • comment-avatar
      MikeH 8 years ago

      O! yes, your investment would be very welcome but ….. don’t expect to gain the rewards of your effort.

  • comment-avatar
    MikeH 8 years ago

    Not so much REFORM, more a simple case of JUST GO, EAST !!!

  • comment-avatar
    Boss MyAss 8 years ago

    ALL foreigners operating in reserved sectors of the economy are left with one month to comply with the Indigenisation and Economic Empowerment Act by vacating reserved sectors, a senior Government official told Parliamentarians this morning.Permanent secretary in the Ministry of Youth, Indigenisation and Economic Empowerment Mr George Magosvongwe told a joint meeting of the Parliamentary Portfolio Committee on Youth, Indigenisation and Economic Empowerment and the Thematic Committee on Indigenisation and Empowerment co-chaired by Gokwe-Nembudziya MP Cde Justice Mayor Wadyajena and Harare Metropolitan Senator Cde Cleveria Chizema respectively.

    “I confirm that some non indigenous entities are still operating in the reserved sectors and there is deadline for 01 January for them to

    comply with the requirement to relinquish their holdings in that sector,” said Mr Magosvongwe while responding to a question from Cde

    Wadyajena on what Government was doing to ensure compliance.

    “You will realise Mr Chairman that 01 January is a month to come and we are putting in place measures for enforcement in the event that they do not comply.”

    Mr Magosvongwe said mechanisms have been put in place to ensure compliance even if foreigners were reluctant.