Zimbabwe’s economy is currently in a state of suspense as investors are not guaranteed of working economic policies from President Mugabe’s coming cabinet, given previous indigenisation policies which had scared away investors.
With talk that the incoming Mugabe administration was for total indigenisation of the economy, remaining investors are bound to take move away, say the economists, further sliding back Zimbabwe into the prior GNU meltdown economic state.
Economist Eric Bloch said investors were in a wait and see situation, until Mugabe appoints his cabinet and drawn economic policies.
Bloch said, for now nothing was guaranteed, until such time when the new government’s economic policies are made public.
“I remain positive that Mugabe realises that there is need for a change in policies in order to attract both local and outside investment,” said Bloch.
He noted that any change of policy should not be implemented at once, but gradually.
Commercial Farmers Union President, Charles Taffs, said the economic future of Zimbabwe was dependent on policies emanating from the new cabinet.
He said Zimbabwe needed strong economic policies which attract foreign direct investment and instill confidence in farmers.
Taffs described the farming sector and other commercials sectors as still in limbo.
“Zimbabwe badly needs strong and investor luring policies at this juncture,” Taffs told The Zimbabwean.
President Mugabe has called for strong indigenisation economic policies.
At his election campaign rallies, Mugabe said his government would press ahead with the indigenisation policy until there is 100 percent black ownership of business in Zimbabwe.
“We are moving towards a 100 percent ownership of foreign firms by blacks instead of the previous 51 percent. This would facilitate takeover of strategic enterprises across the economy by blacks,” vowed Mugabe, citing the mining, tourism and agricultural sectors as examples.
Zanu (PF) says the indigenisation policy would create dignified employment especially for the youth, and would bring about sustainable national development.
Post published in: Business