'EU summit snub spooks investors'

HARARE - Zimbabwe's refusal to attend the on-going European Union (EU)-Africa summit reveals its “bad boy” attitude and will further dampen investor confidence, economists say.

They say the boycott could scuttle efforts made by the business community for the restoration of full economic and commercial relations between EU and Zimbabwe.

Local business leaders and investors — through the Confederation of Zimbabwe Industries — recently visited the continent to seek bail out packages and lure foreign direct investment.

Zimbabwe is not participating in the conference after President Robert Mugabe decided to boycott because the First Lady, Grace, was denied a visa to enter Europe. “Nobody is going to take us seriously,” said John Robertson, an economist.

“Over the years the country has come out with nothing out of these forums because there is no change of attitude in our leadership,” he said, adding that “unless there is a change of attitude as well as the investment climate, Zimbabwe remains a bad investment option.” Robertson said Zimbabwe desperately needed attention, but questioned if the country had what it took to deserve it.

“Even our own citizens are trying to leave for better countries. We really need to find solutions such as improving conditions for foreign investment, good governance and address economic fundamentals.

“Right now we have already done enough damage to really earn credit from investors,” he said. Independent economist Takunda Mugaga also said Zimbabwe stood to lose out more than the European bloc despite not getting much over the years because of restrictive measures imposed on the country’s regime.

“The country could have done more to re-engage its business community with their European counterparts.

“We really need to find each other in this global village, we cannot survive in isolation,” he said.

Mugaga said the summit could have provided an opportunity for the country’s leadership to explain the position of its economy and also raise the profile of doing business in Zimbabwe.

The business delegation to European countries in January this year was to re-establish links and integrate with regional global value chains as part of restoring its competitiveness

This comes as the level of trade between EU and Zimbabwe underscores the significance of the commercial and economic relations.

The EU is Zimbabwe’s second largest trading partner with a total trade of $942 million in 2012, under which the southern African country exported goods valued at $620 million and had imports of $322 million.

The union and its member countries account for over 55 percent of Zimbabwe’s public external debt.

Comments (5)

Enjoying life at state house &shielding corruption is all that matters in Zimbabwe.To HELL with EU summit&the international business community.This is Zimbabwe in Africa.Let them keep their visas & I will keep my dear wife.

Kakara kununa - 2 April 2014

Mr. Robertson and associates - no one has ever taken Zimbabweans seriously particularly on the side of colonialists, hence there was a needless war of liberation. Imagine if UK and Smith hadaccepted reasoning and settled this politics without going to war. But no one took Zimbabweans seriously. There is a lot under the carpet and Bob"s defiant refusal to meet EU is actually ringing the bell. Zimbabwe has lost its sons and daughters, the country has been burnt to ashes and there is many more to come! But behold Zimbabwe will stand its ground on the side of the Lord.

dungas - 5 April 2014

Post a comment

Readers are kindly requested to refrain from using abusive, vulgar, racist, tribalistic, sexist, discriminatory and hurtful language when posting their comments on the Daily News website.
Those who transgress this civilised etiquette will be barred from contributing to our online discussions.
- Editor

Your email address will not be shared.