Zimbabwe begs EU countries to invest

via Zimbabwe begs EU countries to invest August 15, 2014 by Edgar Gweshe

The Zanu PF government has made a major climb-down and pleaded with the European Union (EU) to urge its members to bring in the much-needed foreign direct investment (FDI) to save the ailing economy.

Foreign Affairs deputy minister Christopher Mutsvangwa admitted in an interview with NewsDay yesterday that the ruling party had realised that it cannot turn around the economy without a cash injection from its sworn enemies from Europe.

“At the present moment, our focus is on rebuilding the economy and we want FDI. In this regard, the EU is a major source of this FDI. We would want them to play a very active role in reviving the economy and that is why we would like them to bring capital to Zimbabwe and invest here,” Mutsvangwa said.

Zanu PF and the EU have had frosty relations since 2002 when the latter imposed travel and economic sanctions on President Robert Mugabe’s government citing gross human rights violations.

Miffed by the decision, Zanu PF launched its Look East Policy to compensate for the withdrawal of Western investment in the country.

The policy has, however, been criticised for failing to rescue the economy with analysts accusing Zimbabwe’s Asian ally, China, of dumping its sub-standard products in Harare.

Zimbabwe’s economy has been experiencing a downfall since last year’s disputed elections which were won by Mugabe.

The indigenisation policy as well as a lack of respect for Bilateral Investment Promotion and Protection Agreements among other factors such as the recent farm invasions have also been blamed for scaring away potential investors.

Mutsvangwa dispelled fears of seizure of investments among foreign investors saying Mugabe was currently working to ensure that impediments to FDI were cleared.
“They should not fear anything. Not at all. The Head of State is seized with the matter of revising laws which may be an impediment to FDI. Our ambition is to make sure that we are the best destination for FDI,” said Mutsvangwa.

Mugabe is on record saying the country’s indigenisation policy, which compels foreign investors to cede majority shareholding to locals, is not a one-size-fits-all concept.

The EU is, however, of the view that Mugabe needs to turn his assurances into concrete legislative acts as a way of boosting confidence among potential investors.

Mutsvangwa said Zanu PF was keeping its fingers crossed ahead of November when the EU is expected to decide on whether to resume direct co-operation with Harare.

‘We are looking forward to the complete lifting of the sanctions. We want normal relations with the rest of the world. We are a very friendly people and we have been pleased by the gestures that the EU has been showing on the Zimbabwean issue.

“Most importantly, we are pleased that all the outstanding issues about Zimbabwe are now being discussed,” Mutsvangwa said.

Recently the Zimbabwe-EU Business Information Centre was launched to assist small and medium enterprises to access
information on areas of trade with Europe.

COMMENTS

WORDPRESS: 10
  • comment-avatar
    Mupurisa 7 years ago

    ‘Legislative Acts’ mean absolutely NOTHING in Zimbabwe – just take a look at elections since 2000. I dare anyone from the EU to invest asap. You will get a very fast lesson on ‘How to Burn your fingers nicely’!
    My advice is; If you want to lose money quickly, rather flush it down the toilet. Otherwise tipei isu mari yenyu, tigoidya zvedu!

  • comment-avatar
    Petal 7 years ago

    Invest and the money will be looted by the thugs running the show

  • comment-avatar
    Funganayi Mutamiri (UK) 7 years ago

    Foreign Direct Investors from the Eu and throughout the world have been ready and are still ready to do business with Zimbabwe and are waiting for the Zimbabwe government to remove the impediments that is preventing them from doing so. The Zimbabwe government is fully aware of these impediments so the ball is in its court.

  • comment-avatar
    Jono Austin 7 years ago

    They lie. End of. The ‘law’ means nothing.

  • comment-avatar
    Shamhu YeNhanzva 7 years ago

    Really? What happened to the ‘Look East Policy?’

  • comment-avatar
    Mandevu 7 years ago

    You don’t drive an economy through investment by governments. Real economic growth comes from FDI and domestic capital, which is largely private sector in nature. Private capital will not touch this place until there is a new government and all the ridiculous policies have gone

  • comment-avatar
    Tiger Shona 7 years ago

    Let us see if they will pay fairly or return confiscated properties.
    If they do not do that, then it is obvious that thry are lying.
    And we do not want to hear that there is no money.
    If they cannot pay, then return what has been taken without fair compensation!

  • comment-avatar

    “At the present moment, our focus is on rebuilding the economy and we want FDI. In this regard, the EU is a major source of this FDI. We would want them to play a very active role in reviving the economy and that is why we would like them to bring capital to Zimbabwe and invest here,” Mutsvangwa said.

    Look who is talking…. The EAST IS THAT WAY______________>>>>>>>

  • comment-avatar
    John Thomas 7 years ago

    Hold a free and fair election and the investment will come