Govt tries to lure investment despite mounting violence

The three principals in the coalition government, Robert Mugabe, Morgan Tsvangirai and Arthur Mutambara, on Tuesday launched a two day investment conference in Harare. The conference, aimed at reassuring potential investors that Zimbabwe is a safe investment haven, comes as Mugabes ZANU PF party has in recent weeks intensified their violent campaign against perceived MDC supporters and increased its threats to seize international companies.

The ZANU PF onslaught has resulted in scores of mainly MDC supporters being detained and tortured in prison on trumped up charges. This includes human rights activist Munyaradzi Gwisai who, along with others, is facing treason charges after watching footage of recent civil uprisings in North Africa. At the same time, the police continue to arbitrarily arrest other activists and MDC supporters, while ignoring abuses and crimes committed by ZANU PF.

There are also warnings that the worst is still to come as ZANU PFs election campaign moves into high gear. Already in rural areas there are reports that the youth militias are being armed and along with war vets have been marshalled to intimidate villagers ahead of a possible election this year. Manicaland province has so far been the worst affected area, with armed war vets and militia groups threatening villagers, looting property and destroying homes. Hundreds of Nyanga residents have fled the area into Mozambique to escape the marauding gangs.

Despite all of this, the investment conference got underway on Tuesday with no mention of the worsening violence and harassment. About 300 business tycoons gathered for the conference, which was officially opened by Prime Minister Tsvangirai, who only referred to the violence as making it difficult for those of us who were working towards normalisation of relations (with the West).

It is difficult to convince the world that you have turned the corner when others are perpetuating the same culture of violence in the countryside; the same culture and behaviour that brought us where we are, Tsvangirai said.

The investment conference also comes in the wake of comments made by Mugabe, who has threatened to seize total control of American and European businesses, in retaliation for the Western imposed targeted sanctions against him and his regime. The comments fall in line with his partys indiginisation plans, which have become the centre of ZANU PFs election campaign strategy.

The controversial plan will see more than 50% of foreign owned firms taken over, policies which economic analyst John Robertson said must be abandoned. Speaking to SW Radio Africa on Tuesday Robertson said that such policies are driving people away.

These policies are basically repugnant to investors who are not willing to come into Zimbabwe and see half of their investment confiscated from them, Robertson said.

Finance Minister Tendai Biti on Tuesday tried to convince conference delegates that the indiginisation plans were not a threat. He said the Indiginisation and Empowerment Act wont lead to companies being expropriated or to nationalisation.

Theres nothing wrong with the law on indiginisation, Biti is quoted as saying. It doesnt say therell be nationalisation. Its not a law which allows expropriation. We will respect our laws.

It is widely expected that Mugabe will use the conference to clarify his stance on indiginisation, possibly to make the plan seem less threatening. But Robertson said these efforts and other attempts to soften the indiginisation blow will make no difference to the inclination of investors.

The policies are not appropriate to the needs of investors. Even if they got some kind of clarification, the policy in itself is not a policy we need in Zimbabwe today, Robertson said.