Irreversible change’ needed if any hope of foreign investment

 

Hopes have been high that a deal signed between Mugabe and the leaders of the MDC factions, Morgan Tsvangirai and Arthur Mutambara, would signal the influx of crucial investment from donor governments. But with the deal apparently existing merely on paper, with no change on the ground and a stalemate on the allocation of cabinet posts, the influx’ has yet to appear.

 

Instead crucial donors and investors have adopted a wait and see approach’ with the European Union saying it will review its sanctions next month, while the US has said it will strengthen its sanctions if Mugabe reneges from the deal.

 

Africa Bureau-chief for The Washington Times, Geoff Hill, told Newsreel on Wednesday that investors want to see irreversible change’ before pledging and channeling in money. He explained that capital is not tied to emotion, but is tied to return’ and money will not be wasted on short term changes.

 

Hill said there are steps that Mugabe and his party will need to take to convince investors of their commitment to rebuilding the country. He said investors will look for signs of this commitment, including the MDC taking control of key ministries, the urgent retirements of Reserve Bank Governor Gideon Gono and Police Commissioner Augustine Chihuri, and unproductive farms to be handed over to experts to start boosting the economy. Hill explained that without these clear signs of change, money will not flow in’ and added that investors will not consider Zimbabwe favourably’. He said: Mugabe has to deliver change that will, step by step, maneuver him and his party out of power. – SW Radio Africa News Stories