He told The Zimbabwean that events since last year’s elections were sending the wrong signals to foreign investors, who have adopted a wait-and-see attitude. The succession war in Zanu (PF) has become all-consuming, with analysts saying the economy is suffering because ruling party officials are pre-occupied with individual rather than government business.
Neuhaus warned politicians not to represent the country as an unsafe investment destination. “We thought things might settle after the elections but this year has been a confusing one. Definitely the politics has confused issues and people (investors) will wait and see. But it’s important that politics be carried out in a peaceful manner. People with differences should be able to come together and find consensus for the good of the country,” said Neuhaus.
He said the many allegations of corruption leveled against some senior Zanu (PF) officials were a cause for concern to potential investors.
In her “Meet the People” rallies, First Lady, Grace Mugabe took a swipe at Vice President Joice Mujuru, accusing her of amassing wealth using corrupt means that included extortion.
Neuhaus said Zimbabwe needed to have clear and consistent policies on foreign investment and bemoaned the fact that the current legislative framework was sending confusing signals to investors. He singled out the Indigenisation policy, which compels foreign-owned firms to cede 51 percent of their shareholding to locals.
President Robert Mugabe has gone on record saying it was not government’s policy to seize foreign owned businesses – but the European Union (EU) has said this declaration should be supported by legislative provisions.
“It’s very unhelpful to foreign investors because the signals have been quite confusing. The policies have to be consistent and not constantly changing. I will give an example of Zambia where there has been change of governments but the policies there have been much clearer and we have had more investments into Zambia,” said the Ambassador.
He expressed satisfaction with the re-engagement process between Zimbabwe and Australia and was optimistic that through continuous engagement, Zimbabwe would be able to implement investor-friendly policies that would see the economy begin to grow again.
Post published in: News