Zhuwao's indigenisation stance worrying

HARARE - Indigenisation minister Patrick Zhuwao’s combative stance on foreign firms that are yet to comply with the controversial indigenisation policy is very worrying to say the least.

Yesterday, President Robert Mugabe’s nephew was at it again but this time not only threatening to close all non-complying firms but also to sue all companies that might decide not to comply with the Act — that has over the years seen investors giving Zimbabwe a wide berth.

While we do not condone lawlessness, what Zhuwao — who claims to have a degree in Economics — and his Zanu PF ilk fail to grasp is that Zimbabwe needs foreign investors more than they need us.

The economy is on a downward trajectory and in the absence of balance of payment support and overseas development assistance, only fresh foreign capital might be able to help ease the liquidity crisis in the country and industry to retool.

However, these Zanu PF simpletons in their cuckoo land think that threatening white capital will help extricate Zimbabwe from this economic quagmire precipitated by Mugabe’s populist and injudicious policies in the last 36 years.

The nonagenarian leader was in 2014 forced to extend his begging bowl to China for financial and technical assistance following the decline in government’s revenue streams due to a collapse in industry.

But the so-called “mega deals” from Harare’s preferred investors are yet to materialise as the Chinese are also wary of injecting cash and technical support to a political party that seems to support corruption, greediness and is hell-bent on plundering national resources for personal benefit.

Since winning the 2013 elections — albeit under controversial circumstances — the Zanu PF-led government has done little to attract foreign direct investment into the country.

Recent data supplied by the United Nations Conference on Trade and Development shows that Zimbabwe received a paltry $510 million in foreign direct investment in 2015 compared to a regional average of $5 billion.

What these figures reveal — and what the selfish and egoistical people in Zanu PF don’t want to grasp — is that Zimbabwe is not special and investors can equally get better returns in neighbouring countries such as Botswana, Mozambique and Zambia where they are welcome. A cursory look at the Zimbabwe Stock Exchange confirms that foreign investors are fleeing en masse to other regional bourses to the detriment of the local economy.

The local bourse’s main industrial index has, for the first time in six years — dropped below the psychological 100 basis points and is yet to recover.

As such, it is now imperative that government implements productive and proactive policy reforms to attract the much-needed foreign direct investment and restore the country’s external position as a prerequisite for economic growth.

Comments (7)

This is the final nail in the coffin of the Zimbabwean economy-some people think that they are the best thing that ever happened to Zimbabwe and whatever they say will turn Zimbabwe into a land of milk and honey. We are already amongst the poorest countries , if not the poorest , in the world.Instead of tackling the real problems we are facing , they choose to be idealistic about economic empowerment. Empowerment yes but it is not going to be done overnight.Our ill-advised technocrats assume Zimbabwe is the only legitimate destination for investors in the whole wide world. While Zimbabwe is burning , Glencore from South Africa announced that they are going to invest $1.1 billion in Zambia , news that was well recieved in Zambia which led to the ZM Kwacha appreciating.

Kule - 31 March 2016

This is the final nail in the coffin of the Zimbabwean economy-some people think that they are the best thing that ever happened to Zimbabwe and whatever they say will turn Zimbabwe into a land of milk and honey. We are already amongst the poorest countries , if not the poorest , in the world.Instead of tackling the real problems we are facing , they choose to be idealistic about economic empowerment. Empowerment yes but it is not going to be done overnight.Our ill-advised technocrats assume Zimbabwe is the only legitimate destination for investors in the whole wide world. While Zimbabwe is burning , Glencore from South Africa announced that they are going to invest $1.1 billion in Zambia , news that was well recieved in Zambia which led to the ZM Kwacha appreciating.

Kule - 31 March 2016

This is the final nail in the coffin of the Zimbabwean economy-some people think that they are the best thing that ever happened to Zimbabwe and whatever they say will turn Zimbabwe into a land of milk and honey. We are already amongst the poorest countries , if not the poorest , in the world.Instead of tackling the real problems we are facing , they choose to be idealistic about economic empowerment. Empowerment yes but it is not going to be done overnight.Our ill-advised technocrats assume Zimbabwe is the only legitimate destination for investors in the whole wide world. While Zimbabwe is burning , Glencore from South Africa announced that they are going to invest $1.1 billion in Zambia , news that was well recieved in Zambia which led to the ZM Kwacha appreciating.

Kule - 31 March 2016

We are very unlucky to be led by idiots , fools , who after failing to run parastatals like GMB , NRZ , ZUPCO just to mention a few are now after well managed companies . You are now putting a final nail on Zimbabwean economy and funny enough , your uncle is busy inviting more foreign companies to come and be chased . Mwari pindirai , totungamirwa nemweya yesvina.

Mumbire - 1 April 2016

Indigenization by Zhuwao for him and his uncle and his cronies to have shares in every foreign company without paying a cent.Later on those shares will be sold to Zimbabweans for him and Co. to pocket the money. The same thing they did to farms they expropriated. They are sold to Zimbas after a couple of years after which nobody will be remembering how they had got them in the first place. One wonders when they will say its now enough. We will bury them all at their heroes acre with their stinking riches, but we will be happy that they are gone despite our impoverished country.

Masamba Akareyo - Tanganda - 2 April 2016

Spoke to an acquisitions manger from SASOL South Africa. Told me Black Economic Empowerment SA style was not well received by their international shippers. The Northern hemisphere trade routes are far more lucrative and they are really doing SA a favour. (Zim for that matter too) Bureaucracy is killing trade. Irresponsible Populist policies even more so.

Nooshie - 3 April 2016

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