Denmark sets conditions for Zim

HARARE - Denmark says it will advance Zimbabwe financial assistance on condition that the hard-pressed African country meets specific obligations.

Morgan Jensen, the Danish Trade and Development minister, yesterday told Finance counterpart Patrick Chinamasa that Zimbabwe has to respect the rule of law and honour its promise to compensate displaced white farmers under the land reform programme.

He also demanded that Zimbabwe clarifies its position on the indigenisation law, which compels foreigners to cede majority shareholding to black locals.

“Challenges are still there because a good framework for investors should be created.

“Denmark is prepared to work to find a solution for debt relief… land reform compensation is an important part of the deal,” he said.

“A promise has already been made in regards to the clarification of the indigenisation law, these promises have been to clarify the policy, the Danish government feels these areas are important and need to be clarified for financial assistance,” Jensen added.

Zimbabwe’s empowerment law, enacted in 2008, is widely viewed as major obstacle deterring foreign direct investment into the country.

Jensen said Denmark — intending to give Zimbabwe financial support towards debt relief and development programmes — will look into infrastructure rehabilitation and growth of the agricultural sector.

“These are areas Denmark has expertise in and we are prepared to work with Zimbabwe in these areas, but these issues we have raised today need to be met as a matter of urgency,” said Jensen.

However, Chinamasa promised Jensen that government was going to clarify its position on the indigenisation policy.

“It is our role as a government to clarify the policy. Today, I give you assurance that the position will be clarified and we will speak with one voice as government,” he said.

Chinamasa also said Zimbabwe was committed to compensating displaced white farmers, but it was not financially ready to effect the compensation.

“We are fully aware of the obligation we have to the white farmers as it is enshrined in our Constitution.

“However, the failure is not because we do not want to service the debt but due to a lack of resources to compensate them,” he said.

Jensen’s remarks come in the wake of similar remarks early this week by the new European Union ambassador Phillipe van Damme that Zimbabwe needs to fix its legal framework to attract investors and direct financial aid.

Britain’s new ambassador to Harare, Catriona Laing, is also on record as saying her country wants reassurances about the safety of investments and information about the black economic empowerment law.

 

Comments (3)

hakuna compensation, Cde Chinamasa tautira vanhu ava chokwadi, weather mari iripo or hapana, hapana chekucompensater apa. ko ivo pavakati displacer had they used any legal framework, no compansation, zvakavharana. vakada kutaurisa tinopedzisa vakasara. to hell with Denmark. kana varungu vachida compansation ngavanoona Magie wekwa Thetcher. ngavagare kuDernmark hatinei navo. imbwa dzavanhu.

max man - 7 November 2014

i think essentially there is no story to write home about.The government has only to make it clear and desist from propaganda or populalist ideas for all investors to understand and decide ahead of time.Black empowerment isnt a handicap but the extortion of our resources by a little filthy people under the guiseof indigenisation and land reform has doomed us

carson Macate - 12 November 2014

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