Zimbabwe is holding an important foreign investment conference this week. Unfortunately President Robert Mugabe was expected to address it which, frankly, negates the whole thing. Given his open hostility to European and American investors and the recent disruption to businesses by hordes of drunken Zanu (PF) militia, we dont see how Mugabes presence at such a conference could possibly enhance the proceedings, benefit the outcome, or persuade any investor to put his money into Zimbabwe at this point in time. He might promise potential investors whatever they want. He might charm them. But investors beware! What he says is not what you get!
The current session of Parliament is expected to pass an amendment to the Indigenisation and Economic Empowerment Act which would frighten the hell out of any businessman. Although the wording looks innocuous, it has far-reaching consequences. It allows the responsible minister to carry out assessment ratings of businesses rather than just companies, with a view to grabbing them.
We all know Zimbabwe desperately needs foreign direct investment. It is the only way to create jobs, revive our ailing economy and put an end to our pathetic and demoralising dependence on western humanitarian aid.
Our country offers immense opportunities for investors. But any serious businessman must exercise due diligence and consider the security of his investment. Listening to the message coming out of Zanu (PF) one would be utterly foolish, reckless and negligent to even consider investing at this stage.
Zanu (PF) has made no secret of the fact that it is determined to take over foreign-owned companies. The party fatcats are already lining up to grab lucrative businesses as they did with the commercial farms in 2000. Mugabe is encouraging it because it is the only way he can keep the thugs onside and stay in power.
The invasion this week of South African-owned company Easipark by Mugabes thugs is a clear sign that nobodys business is safe as long as Zanu (PF) is in power. Not a week goes by without some official rant against the business community. Nestle was the target of Mugabes ire during the so-called anti-sanctions petition launch. He instructed his Indigenisation Minister to grab the company, because it had refused to buy milk from his dairy farm. Tell them you were sent by Gushungo, ranted Mugabe.
The company owned by black South African business mogul Patrice Motsepe, was given a tongue lashing recently for taking its profits out of the country. Excuse me, but that is what foreign investment means. Every businessman wants a return on his investment. In return, he creates employment, pays locally for goods and services, contributes to the fiscus by paying taxes and generally supports the economy. Do we really need to give these basic lessons in economics to our head of state?
Zimbabwe this year signed an investment protection agreement with South Africa. Before the ink is even dry, they are already tearing it up. And we have not forgotten that Didymus Mutasa once said: These agreements are not worth the paper they are written on.
Post published in: Editor: Wilf Mbanga