He was not clear on why he would describe the current cabinet and government policies, notably the indigenisation policy and the economic blueprint Zim Asset, as successful. It would have been useful if he had given some evidence that the cabinet and its policies were winning in any way.
From where we sit, there is absolutely nothing successful about both the cabinet and the policies that the government has adopted. We would love to be proven wrong about this – but sadly we have solid reasons for saying so. Moyo says there is no need for a review of the indigenisation policy, arguing that it forms the basis for economic recovery. This is patently wrong, if not plainly dishonest.
All right thinking people know that the indigenisation law that the Zanu (PF) government adopted several years ago, which forces foreigners to surrender 51 percent of their shares to local blacks, has done much harm to the economy. It has scared away investors who see it as a lazy way of grabbing their money.
Who in his or her right senses would invest in a country where they know that they will be 51 percent poorer once they start an enterprise? We are yet to come across a seriously business-minded person who would proceed to invest $10 million, for example, in a country knowing full well that once the deal is consummated, he or she would be worth $4.9 million.
Diplomats, economists, the IMF and the World Bank as well as notable international investors have repeatedly complained about the policy. Investors have not so far, and are unlikely to bring in their money in future, for as long as the law exists in its current form.
Furthermore, we are of the opinion that it is a bad joke to say the cabinet President Robert Mugabe swore in last year is winning. Winning what? It is now about half a year since the cabinet was announced, yet nothing is moving on the ground. The Finance and Economic Development Minister Patrick Chinamasa is still fumbling in the dark, and so is almost every other minister.
Companies continue to close down, there is no money to fund public programmes, the economy is reeling under deflation and shortages loom once again. How can this possibly be described as a success?
Moyo made a vain attempt to glorify Zim Asset as a winning economic paradigm. How can that be when it is failing to solve even rudimentary economic problems like unemployment and liquidity crisis? What basis is there to claim that it is helping to resuscitate the economy?Post published in: Editor: Wilf Mbanga