via Mugabe’s appeal for FDI shows Zanu PF has failed: Analysts – Southern Eye by Mthandazo Nyoni
PRESIDENT Robert Mugabe’s recent appeal for foreign direct investment (FDI) confirms his Zanu PF administration is failing to turn around the economy which is in a depression, analysts said this week.
Officially opening the Zimbabwe International Trade Fair last week Mugabe appealed for more FDI to stimulate Zimbabwe’s underperforming economy, promising to respect property rights for investors.
FDI is a direct investment into production or business by an individual or company in another country.
The country has struggled to attract FDI in recent years or funding for its economic blueprint, ZimAsset due to concerns over the perceived lack of respect for property rights and uncertain business climate.
Economic analysts, business lobby groups and trade unions who spoke to Southern Eye Business on Friday said Mugabe and his party have realised that their economic policies will not bring anything tangible to revive the economy.
They argued that the party’s manifesto was too broad and lacks the finer detail necessary to spell out exactly how the economic agenda would be executed.
Economic analyst Eric Bloch said Mugabe and his party had realised that they could not resuscitate the comatose economy, hence the call for FDI.
“He (Mugabe) has finally realised that there are no prospects for economic recovery as the economy is in the low for so many years. The party has to create policies that will attract FDI. They have to make some changes in the country’s tax system, indigenisation policies and labour legislation should be fair for both employer and workers. This will help for economic recovery,” Bloch said.
Another economic analyst, Collen Mugozva said it was necessary for Zanu PF party to lure for FDI because the Look East policy was not bearing fruits.
“For us to create jobs we must have capital, but in Zimbabwe we do not have it. The people we hoped will come and assist are not forthcoming or have been reluctant to assist. They (Zanu PF government) have realised that they need capital and this is the reason why they call for FDI,” Mugozva said.
Affirmative Action Group Matabeleland Chapter president Roy Sibanda said the president was calling for FDI because the country needs cash for the resuscitation of dying industries.
Lucky Mlilo, the chief executive officer of Association for Business in Zimbabwe said FDI was crucial for developing countries like Zimbabwe for economic recovery and it was impossible for the country to survive without it.
“FDI is needed and we need to come up with policies which are investor friendly to attract foreign investment. We have to deal with the outside world to overcome challenges like liquidity crunch,” Mlilo said.
He said the country has to emulate other countries like Angola who have succeeded through FDI.
The Zimbabwe Congress of Trade Union secretary-general Japhet Moyo said the call for FDI by Mugabe was crucial, but he should first deal with inconsistent policies.
“If we look at the programmes that we have in the country they don’t attract FDI because if you need foreign investment you need to create conducive environment. Policies such as ZimAsset are not clear and they will not attract FDI and we have witnessed it over the years,” Moyo said.
ZimAsset is the government’s economic blueprint adopted from the Zanu PF 2013 election manifesto.
Zanu PF was silent on the country’s tax system, which has caused an outcry in the private sector.
The mining industry, for example, has been reeling from a plethora of challenges, including a tax regime that has stifled growth.
In the run-up to controversial July 31 elections, Mugabe and Zanu PF unveiled an election manifesto in which they promised Zimbabweans heaven on earth.
The party promised creating value of $7,3 billion from the indigenisation of 1 138 companies across 14 key sectors of the economy and over $1,8 million from the idle value of empowerment assets unlocked from parastatals, local authorities, mineral rights and claims and from the State to capacitate Agribank with $2 billion to finance the stimulation of agricultural productivity.
These initiatives were said to be aimed at creating over two million jobs across key sectors of the economy and contributing to export earnings, food security and to the fiscus among many other benefits including urban housing and construction or peri-urban farms acquired during the land reform exercise.
A massive public infrastructure rehabilitation programme was also promised, premised on a $3 billion injection.
The party also said it would pump into small enterprises $300 million and sell off non-performing State firms to unlock up to $7,6 billion.
The party’s trump card — the empowerment drive — was expected to unlock $1,8 trillion into locals’ coffers and drive annual gross domestic product growth close to 10% by 2018, from the current 4,4%.
However, ten months down the line Zimbabweans continue to sing the blues.
COMMENTS
Mugabe can appeal as much as he likes. Even get down on his knees and beg. So what, who cares? The guy is burned out, yesterday’s news. Everybody is waiting for him to drop so that life can carry on.
Who really was at the tradefair of importance who would listen to him? A tired old man who cannot recall what he said a moment ago.
Its well known his own cabinet does not follow his instructions anymore. There is no policy and the ZANU lot don’t respect the constitution anyway. The only investors he is going to get is the Russian and Chinese mafia. Birds of a feather fly together. bringing more corruption and misery to the country.
Mugabe’s legacy, poverty and poverty plus more poverty.
Maybe the Pope who Mugabe recently visited may invest some of his church money into Zimbabwe ?
Desperate mutterings from a clueless old president who has completely lost the plot and all credibility.
‘MR BIG SHOT MUGABE WHO DO YOU THINK YOU ARE.’ An old time song for. GET THE PICTURE MDARA.
Looking east has created all this. If u stop looking east things will change. East is prospering on our minerals while we r left with fake products.
34 years it took to break the unbreakable. That is Mugabe’s legacy. Zimbabweans wake up and realise till this cancer is gone there will never never be any FDI or improvement in the countries welfare.
Why call for FDI? What happened with the 51% money you wanted the buy shares with? You just wanted to grab businesses when you are penniless.
We need an immediate change in economic policies. Like AIPPA and POSA indeginization is a crocodile in the water. Change policies and align laws to the constitution…..and enforce that law. Overhaul the police force and the courts…and….
“We need an immediate change in economic policies. ”
I think the thing that is most needed is the repeal of POSA. Economics will folow freedom.
Let’s see how it works-invest $100million in a factory. Zanu partner immediately takes $51 million. You provide the skills and the work and assume the risk. They provide nothing but because they ‘own’ the factory pay themselves enormous salaries and pay you minimally. There will be nothing left for your dividend. When you leave they strip and sell what’s left. Great business model for FDI. I want in!
Mugabe and ZANU, in attempting to lie to the electorate and the world ended up lying to themselves that they had friends, that they were a great government so important everyone else in the world was focused on them and wanted to boot them out. They then barricaded themselves from seeing what they ought to have seen long ago. That Zimbabwe was going down.
A promise to respect property rights is not enough, even legislating new laws pronouncing the same will not work, not until the prospective investors can see how you have dealt with former property holders whom you have kicked out without compensation. You are seen as people who cannot even respect their own laws and that’s not difficult to prove as you have broken your own laws and have been proud to announce it to the world.
So the Chinese have now come out and confirmed to you that where as you have been, they have not been your all-weather friends as you have often sang to us. They have a limit in support they give foreign governments.
You campaigned hard and deceived many to be in the position you are in now. You said you would bring us improvement to our lives and have killed our brothers and sisters over the years to be where you are now, today. Can you tell us why? Why Bob? You have bragged about you capabilities in violence, your inexhaustible reserves of natural resources while parceling them out for free to the Libyans, the Chinese, the Indians and recently to Dubai, what has Zimbabwe benefited from all that? How long will it take you to do right? Go Bob, go. Leave. You are of no use here, go!
Now we hear they were cheated in Dubai and have vowed they will not go back there with their diamonds. Me thinks they got the money, and in Zanu style, they squandered it in Dubai. Came back home with no change. Who is fooling who.
Pamberi Ne Jongwe cuckoorookoo!!
When investors come you call them Mdc sellouts now u cry foul.let’s wait and see who is to come this time around
Even the chinese dont take that 90 year old baboon seriously!
The empty ZimAsset begging bowl with not even one single dollar in it is mocking Mugabe.
Mugabe has aged in the last nine months faster than anyone can explain. Until July 2013 he still looked “as fit as a fiddle” as he himself claimed and most 70 year old would have been please to look the same.
Nine months of being mocked by that $27 billion ZimAsset begging bowl has taken its toll on the tyrant. Instead of age catching up with him and left him looking his 90 years, the tyrant is looking more like 100 years old! That mocking begging bowl will be the death of Mugabe!