Zim must harmonise investment laws

HARARE - Zimbabwe must work on harmonising the indigenisation and investment laws to improve the ease of doing business in the country.

For the past few years, the country’s global ranking on the ease of doing business has been dropping consistently due to the controversial investment policies and harsh economic environment.

Although government has promised to look into the matter by making amendments and amalgamations to investment and indigenisation laws, the situation on the ground proves otherwise.

It’s a public secret that investors are reacting differently to the indigenisation policy as noted in investment conferences held in and outside the country.

As a result, the number of registered investors is far below the approved numbers.
With the economy slowly receding into recession, there is an urgent need for the Zanu PF-led government to pull all the stops to ensure that foreign direct investment flows unhindered into the country.

The history of all successful nations such as Singapore, Malaysia, Brazil, China, India and Russia among others are punctuated with increased foreign investment.

The World Bank recently predicted that by 2016, the country would not record any gross domestic product growth and judging by the massive company closures, low aggregate demand and declining tax base, it would be a miracle if Zimbabwe registers any growth this year. 

Unless and until we see clarity and amendments on Zimbabwe’s indigenisation policy, it would be hard, if not impossible, for this nation to move out of recession.

President Robert Mugabe recently made a passionate plea for investors to come, but we are convinced that no sane investor will come here if the changes to the Indigenisation policy remain all talk with no action.

Investors prefer to pour their money in a secure environment with clear-cut policies and most countries are doing just that. It’s no longer enough to say we have the best climate, educated human resources base and abundant minerals because most countries in Africa and elsewhere also boast of the same.

For Zimbabwe to be competitive, the game changer for us would be to implement investor friendly policies and offer tax havens and special economic zones to foreign investors.

Richard Mbaiwa, the Zimbabwe Investment Authority (ZIA) chief executive succinctly put it this week when he said there was “need to relook at various pieces of legislation and come up with a comprehensive framework in order for the investment promotion body to fulfil its mandate”.

We strongly believe that it is imperative that the ZIA Act be amended in order to accommodate the recommendations of an inclusive framework and that the investment promotion body be well capitalised in order to fulfil its role.

Comments (1)

Are you having problems with your borehole or dreaming to have one. try us for your installations, repairs, faulty diagnosis, maintenance and pump sales. email. boreholepumps@yahoo.com

water.. - 3 July 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.