Where are the mega deals?

via Where are the mega deals? – DailyNews Live 23 April 2015

HARARE – Zimbabweans are yet to benefit from the so-called mega deals signed between the Zanu PF-led government and various countries that include China, Russia, Algeria and South Africa among others.

Since Zanu PF won another mandate in the July 31, 2013 election — albeit under controversial circumstances — crisis-weary Zimbabweans have been bombarded with promises of a brighter future.

However, almost two years down the line, the economy is now worse off and the country’s external position is described by the International Monetary Fund as being “in a precarious position”.

Not even a single job has been created under the ZimAsset economic blueprint that pledged over 2,2 million jobs. Companies continue to close down daily and many people are increasingly finding themselves on the job market despite empty assurances of economic revival under the “mega deals”.

Last year, Zimbabwe “clinched” mega deals in mining, construction and infrastructure development reportedly worth billions of dollars signed with China but these are yet to see the light of day amid reports Chinese experts must first come into the country and conduct feasibility studies.

Another much-touted $3 billion platinum mining deal signed by Zimbabwe and Russia in September last year amid a blaze of publicity, which the authorities said would significantly boost production and create thousands of jobs, is also yet to come to fruition.

While we patiently wait for these deals to revive the country’s ailing economy, most Zimbabweans have literally been reduced to vendors — as a way of eking out a living. Around the streets of Zimbabwe, scores of young men and women are selling airtime cards, vegetables, clothes, traditional herbs or skin lightening creams.

The streets have become littered with card board boxes, making them impassable during peak hours.

Most of the vendors, though educated, cannot find formal employment. With the country’s unemployment rate estimated to be above 80 percent at a time when Zimbabwe is struggling to deal with the liquidity crunch — future prospects are indeed hazy.

It is no surprise that Zimbabwe’s economic refugees in South Africa are vowing to remain there despite threats of violent xenophobic attacks.

Who can blame them, when their own country is struggling to stay afloat? The solution at the moment is for government to implement investor-friendly policies that may attract foreign direct investment.

Research has shown that foreign direct investment can create employment, increase technological development in the host country and improve the economic condition of the country in general.

However, the current scenario of serious government policy inconsistencies and discord will only push investors away.