Zimbabwe investment: Germany seeks assurance

via Zim investment: German seeks assurance – DailyNews Live 19 MAY 2014

Zimbabwe must amend its laws to incorporate recent changes in the implementation of its indigenisation policy, Germany says.

The southern African country’s empowerment law compels foreigners to give up 51 percent shareholding to locals.

But recently, President Robert Mugabe ruled out a one-size-fits-all indigenisation approach, saying only companies utilising the country’s natural resources will be required to immediately give up majority stakes to indigenous Zimbabweans.

Ulrich Klockner, German ambassador to Zimbabwe, said investors from his nation are still sceptical of the piece of the empowerment legislation.

“We are very excited about the new clarifications that are coming up, but we feel the government of Zimbabwe should at least put these into writing for reference,” he said.

“German investment is not what it was before and it’s a shame many companies have set shop in Johannesburg as it seems a safer investment destination,” Klockner said, adding that “once government clears this obstacle I am sure investors will flock into the country”.

He said at the moment, Zimbabwe is “not attractive as an investment destination” and “investors feel government will grab assets from them”.

“Once government puts its house in order the situation will definitely improve,” said Klockner.

Eric Bloch, an economist, said government has only made statements and promises, but has not moved to amend the laws.

“The law was an obvious infringement on property rights. If government is serious about these utterances, I say they move quickly to boost investor confidence and just put all this in writing,” he told Business Live.

This comes as Australia has also said investing in Zimbabwe is extremely risky, likening the move to swimming in the dangerous crocodile-infested Zambezi River.

Matthew Neuhaus, the country’s ambassador to Zimbabwe, told a Sapes Trust conference recently that the African nation has a long way to go in attracting foreign direct investment (FDI).

“Investing in Zimbabwe is like swimming in the Zambezi between crocodiles and hippos,” he said, adding that “instead of policies to encourage FDI, you have chosen indigenisation especially in the mining sector”.

He said Australian investors have found it easier to do business in

Zambia and Mozambique, injecting billions of dollars in investment in the economies.

“Because of the uncertain political and economic environment, investors have skirted this country,” said Neuhaus.

“Certainly, indigenisation laws have been confusing, and the implication of the 51 percent ownership does not inspire confidence in investors. They want to know that their investments are safe and that they get what they put in,” he said.

Early this month, Finance minister Patrick Chinamasa reassured investors that Zimbabwe is a safe investment destination, if they comply with the country’s laws.

This comes as foreign investors have been skirting the investment-starved country, labelling its policies hostile, particularly the empowerment law.

Chinamasa said government plans to put in place “a flexible policy framework that attracts investment while at the same time ensuring that the people of Zimbabwe also benefit”.

He said the Zimbabwe Investment Authority will have full authority to determine investment conditions and approve foreign direct investment.

“This is why we have clarified the policy on indigenisation and declared our invitation to FDI. However, government’s efforts and commitments towards re-engagement need to be reciprocated by the same efforts from the global community,” he added.

 

COMMENTS

WORDPRESS: 12
  • comment-avatar
    Jono Austin 7 years ago

    I cannot believe they ‘want things in writing’ Since when has that stopped Zanu doing as they please? Were these people born yesterday? And Bloch of all people wants the laws changed. What difference does that make? What a naive blithering fool. I can remember 15 years ago Bloch going on about ‘having every confidence’ etc etc blanket platitudes etc because he believed the noises zanu was making. Is he a child I wonder?

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

    As I can see it the International community want to move on, willing to forgive and give the Zimbabwe government a second chance. Every one makes mistakes, but even if you say I am sorry not everyone wronged is willing to forgive. In this case many foreign governments, the international community is willing to forgive but they want gaurrantees that this will not be repeated in future and enforceable laws passed protecting the FDI made. It is a win win situation. Having said that Zimbabwe’s benefits are huge in that it can easily reverse its economic ills and become an economic giant.

    • comment-avatar
      Jono Austin 7 years ago

      ‘…can make mistakes’ You’re kidding right? What do you call mass murder? And ‘the mistakes’ continue as I type this…the murders, theft and thuggery. Just last week a young girl murdered north of Harare and I can guarantee you that the murderers will NOT be apprehended. Is this what you so euphemistically call ‘a mistake’? Is the persecution of anyone in opposition ‘a mistake’ Well if it is it’s amazing how these ‘mistakes’ cintinue day by day, month by month even today. MISTAKES!!!!

    • comment-avatar

      Not a chance!

    • comment-avatar
      furedi 7 years ago

      The only thing that makes Europe carry on hoping is their greed.As for our Zimbabwe it will be,bring your money,when you start making profit then we take it ” All of it”

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

    No I am not kidding when I term them mistakes. Its not easy to forgive , I have earlier said but let’s us forgive if we want to be forgiven our trespasses also. If we can just forgive that will be great! I was saddened with the Guru we murder if that is what you are referring to and said most of the same sentiments that you have said in that it must be properly and transparently be investigated and culprits brought to book,properly tried in a law court and the punishment applied must deter any commitment of such a crime in future making a strong statement that this is not permitted in Zimbabwe.

  • comment-avatar
    Jono Austin 7 years ago

    Funganayi these are not mistakes. It is a deliberate policy to maim and kill and it is ONGOING. How many ongoing murders are you prepared to ‘forgive’? If a member of your family was taken out and clubbed to death once a week would you call those deliberate and ongoing murders ‘mistake’ after ‘mistake’? I cannot believe that you would call the 20-30 000 murdered citizens of Zimbabwe in the infamous Gukurahundi 30 000 ‘mistakes’ Let us assume none of your relatives were murdered then it is easy for you to ‘forgive’ Let us assume that for some God given reason the victims’ relatives are prepared to forgive, could they in all honesty carry on forgiving as the murders CONTINUE even in 2014!! And let us not forget that Mugabe will NEVER be brought to book over Gukurahundi where 30 000 citizens were murdered, nor for the ONGOING zanu murders. Come on Funganayi, no rational Christian can forgive ONGOING MURDERS. In this case it’s an eye for an eye, not turn the other cheek.

  • comment-avatar

    When you can’t fogive Jono, you can not be forgiven your sins, so condition yourself to forgiving and forgetting. Otherwise hell awaits for the unforgiving. So forgiving is for your benefit, Look inside you for a moment, and know you first.

  • comment-avatar

    The International Community are not stupid. This childish talk of forgiving is high school preaching to the immature. The real world is no one will make the necessary investments while Mugabe is in power. He and his cohorts have shown time and time again they are untrustworthy. Wake up Zimbabwe, get off your lazy behinds and rid yourselves of this cancer. Stop being reliant on Aid, produce and feed yourselves, stop being racist and embrace all Zimbabweans as being the same and having the same rights.

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

    I am sorry, I can feel your hurt. The brothers and sisters that lost their lives are also my brothers and sisters- I am also a Christian and the subject of forgiveness is detailed. Its not easy but we must forgive my brother.The lord Jesus urges us to in the lord’s prayer “forgive us as we forgive those that trespass against us.” So forgiveness removes bitterness as well. “He that cannot forgive others breaks the bridge over which he must pass himself; for every man has need to be forgiven.”wise words from Thomas Fuller.” To forgive is to set a prisoner free and discover that the prisoner was you.’ Wise words from Lewis B Smedes. My prayer is that may you find forgiveness .Martin Luther king,Jr said ” Darkness cannot drive out darkness; only light can do tat. Hate can not drive out hate; only love can do that.” “Forgiveness is the fragrance that the violet sheds on the heel that has crushed it.” From Mark Twain. Lastly I leave you with these words from brother Bernard Meltzer” When you forgive, you in no way change the past – but you sure do change the future.” Let’s change the future for all Zimbabweans!

  • comment-avatar
    Madlanduna 7 years ago

    You are right Jono, you can’t forgive somebody who didn’t ask for forgiveness. How do you forgive somebody who kills day and night, you are in hiding but you say I forgive you, look just weeks ago they were saying they inversters to come , and now in front of those inversters they are after Paul’s investment , no forgiveness here, please fellow friends clarify this for me as a 1974 grade 7 I miss something in this animal called indigenisation, do I give 6 out of my 11 cattles to somebody to be my partner or that somebody gives me 6 of his to grow business ? Is god watching coz this people are stilling at daylight.