Turn words into action: EU challenges #mugabe

via Turn words into action: EU challenges Mugabe – NewsDay Zimbabwe May 19, 2014 by Edgar Gweshe

THE European Union (EU) has challenged President Robert Mugabe’s government to implement constitutional provisions to assure international investors that its one-size fits-all indigenisation policy would not affect future investments into the country.

In an interview with NewsDay over the weekend, EU head of delegation to Zimbabwe, Aldo Dell‘Ariccia said as much as Mugabe’s remarks on the indigenisation policy were commendable, investors would need to see legislation being put in place to assure them of the security of their investments.

The indigenisation policy, which compels foreign-owned companies with a minimum shareholding of $500 000 to sell 51% of their shareholding to locals has largely been blamed for scaring away foreign direct investments.

The Zanu PF government initially defended the policy claiming it was crafted to empower the previously marginalised black majority.

However, Mugabe and Finance minister Patrick Chinamasa have lately been assuring potential investors that that the policy had been relaxed.

Dell‘Ariccia said: “The EU has noted with great interest the declarations by President Mugabe and minister Chinamasa about the flexibility of the indigenisation policy and the fact that it will not be applied with a one-size-fits-all approach. I think that is good news for any investor, not just European ones.

“The declarations of intentions of the government of Zimbabwe are most welcome. Now we are waiting to see how these declarations are translated into concrete legislative acts (approved by Cabinet and gazetted) and implementing policies with rules and regulations which are accessible, transparent, verifiable and applied equally to all.”

One of the concerns among analysts with regards the indigenisation policy was that it lacked clarity and transparency.

Dell‘Ariccia said that Zimbabwe needed to ensure the indigenisation policy does not stand in the way of a predictable economic environment adding that “non-discrimination” was equally essential if the country’s efforts at attracting foreign investors were to bear the desired fruits.

“The predictability of the economic and financial environment, based on a legal framework that grants the respect of the principles of accountability, transparency and non-discrimination is an essential condition to attract foreign investors,” Dell‘Ariccia said.

“The circulation of capitals and gains should be regulated by clear policies and reliable mechanisms should be in place to solve any dispute.”

Tourism and Hospitality Industry minister Walter Mzembi is on record saying that Zimbabwe needed a “sober” approach towards the indigenisation policy.

Dell‘Ariccia said it was essential for Zimbabwe to strike a balance between national interests and laws on international finance.

“Sobriety is an interesting concept. However, it seems to refer to the fact of avoiding too much greed from the side of the indigenising partner. I think that rather than a sober approach, Zimbabwe needs a clear approach, based on a sound compromise between national interests and the laws on international finance,” Dell‘Ariccia said.

He said that Zimbabwe’s economic revival was hinged on huge capital injection from foreign investors hence it was critical for the country to put in place investor friendly policies.

Dell‘Ariccia said Zimbabwe needed to restore its relations with international finance institutions as well.

“Zimbabwe has a great potential of becoming once again, the economic hub of the Southern African region. The human capital is there, the natural conditions are favourable and the resources are vast.

“What is needed is to re-launch the economy and reactivate the productive sector, infrastructure and the modernisation of the industrial plants. A proper influx of capital is crucial in this framework hence investor friendly policies and a proper relation with the international finance institutions are essential,” Dell ‘Ariccia said.

 

COMMENTS

WORDPRESS: 16
  • comment-avatar
    Jono Austin 7 years ago

    …and once the economy by a miracle gets back to a reasonable footing as a consequence of massive capital injections by naive fools, then Zanu, emboldened, will grab all the investment and say Goodbye!-notwithstanding any law or agreement on paper. And the victim will go to the courts in Zimbabwe to get redress and find himself appealing to a Judge who in all likelihood is the grabber. This is not far fetched-this is the reality and has happened in the past.

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    Funganayi Mutamiri (UK) 7 years ago

    Well said head of delegation for the EU, Mr Dell’Ariccia in all respects that you mentioned and if the words of the Zimbabwean government are implemented into law Zimbabwe will benefit immensely. I have seen these guys in action , they are miles ahead in technology and they do not play. Listen to them and act and Zimbabwe will not be the same again as you can see many nations recognise the potential that Zimbabwe has and they want to invest

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      roving ambassador. 7 years ago

      Mutamiri, seems you are now making the right noises. There is a lot that has to be done first to gain investors’ confidence and that includes Zimbabweans.
      Zanu forgets that these foreigners have embassies in Zimbabwe and will get first hand information on all the mis governance going on.

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    Msizeni silwelani 7 years ago

    The Zimbabwe investment situation will never be trustworthy again. Not in the foreseable years to come. For we have shown on numerous occassions that a constitution is nothing but a volume of pages filed somewhere we bother not to recall.

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      Jono Austin 7 years ago

      Couldn’t have said it better myself. Zanu are not plausible-they are morally and ethically bankrupt.

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    Johann 7 years ago

    Mr Dell‘Ariccia first and foremost Mr Mugabe needs to go back to the BIPA agreements that he flouted in the fast track land reform and in accord with those agreements immediately compensate the affected individuals or return their property including moveable assets in the condition they were in when they were illegally confiscated. Secondly Mr Mugabe needs to re-establish a politically independent judicial and police system that applies the law equally for all Zimbabweans white coloured or black and not just foreigners.
    That is impossible for Mr Mugabe to do as that would mean, he being treated as an equal citizen, would have to go into exile immediately so as to avoid prosecution.

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      John Thomas 7 years ago

      First Mugabe must go. Then we can start thinking about other things. While he is in power he will undermine any efforts at rebuilding

      • comment-avatar
        Petal 7 years ago

        you are right John Thomas – one cannot deal with the devil
        they have to go go

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      zvichanaka 7 years ago

      Trouble is…we have got economic and social terrorism in Zimbabwe and the terrorists are the leaders in government. When they talk of change in policy..i am reminded of William Shakespear. “It is a tale told by an idiot, full of sound and fury, signifying nothing.” Hot air in other words.

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    Tjingababili 7 years ago

    THE SPIRIT IS WILLING BUT THE FLESH IS WEAK!

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    Chaka 7 years ago

    Eu must stand by its principles in particular when dealing w zim gvt who can break its own laws, promises n policices (as chinamasa puts it) We zimbos dont get any benefits frm the fruits of all funding. Its for the army n top zpf officials. We plead. So far so good eu

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    munzwa 7 years ago

    All NGO’s have been zanufied, they playing the game, west think they helping the people but really they just part of the patronage system….zanu will not change to benefit the nation in its quest for freedom of speech and association, they will always have legislation in place that can be selectively used to their own profit…

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    Straight Shooter 7 years ago

    Calling for legislation to assure investors is a waste of time Mr Ambassadors.

    Dont forget these are Gukurahundis and Gukurahundis by their very nature dont recognise legislation/the law. When they decide on something, they will just do it, with or without legislation!!

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    Wilbert Mukori 7 years ago

    What investors want to see the rule of law and legitimacy fully restored in Zimbabwe and that has to start with removing this illegitimate regime and replacing it with a legitimate one. An illegitimate regime cannot confer legitimacy on anything it does no more than a baboon, declaring himself king of the mountain, would expect the world to pay him homage.

    Zimbabwe’s economic melt-down is serious and millions of Zimbabweans are suffering already and many are dying. Mugabe needs to be told in no uncertain terms that he rigged the elections but cannot rig economic recovery and therefore he must now resign so the nation can get a legitimate government, a prerequisite for economic recovery.

    The EU should stop playing cat-and-mouse games with Mugabe by giving the tyrant false hopes that they can somehow help him rig economic recovery. It is the millions of Zimbabweans who are playing dearly for these games with their daily suffering and their very lives!

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    Madlanduna 7 years ago

    The only law that is there is to arrest the opposition activities who go and report a case committed buy this looters , so even with so called written down laws they can thrown any for you to be robbed brought back after dealing with you.

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    Petal 7 years ago

    AT 90 one cannot change. people in this age group are very set in their ways .some people in this age group tend to suffer from dementia etc.