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Thabo Mbeki - on Zimbabwe and Investment (2)

'Mbeki's mediation on Zim may not be the ultimate solution'
By Kingsley Kaswende in Cape Town
Monday June 18, 2007 [04:00]

Zimbabwean intellectual Dr Ibbo Mandaza has said South African President Thabo Mbeki's mediation of political interests in Zimbabwe may not be the ultimate solution to the country's problems. He said the initiative hatched by SADC presidents in Dar-es-Salaam did not have clearly defined objectives and outcomes, and that it may not be dealing with the real issues.

"In any negotiation we need to define what we want. SADC hasn't defined what the outcome of the mandate is, to what end and for what purpose," he said during a BBC World Debate that was on the programmes of the World Economic Forum on Africa.

The debate is scheduled to be broadcast on the BBC this week. Dr Mandaza, a member of Zanu PF, added: "The Mbeki initiative can only facilitate what is already happening in Zimbabwe. There appears to be a misdirection and they are only talking about Zanu PF and MDC (Movement for Democratic Change). I don't think this is the problem. The problem is the succession problem. The problem is not regime change, but that of a democratic change of government by people themselves. The only fear is that we will not deal with real issues."

During the same debate, leader of one of the MDC factions, Prof Arthur Mutambara, said the SADC initiative was just a "bonus and not the ultimate solution" to Zimbabwe's problems.

Prof Mutambara said the ultimate solution would come from Zimbabweans themselves, not from any intervention by foreigners.

To him, the core problem in Zimbabwe was what he termed "political illegitimacy" and that the real issues that needed to be dealt with in the country were free and fair elections, a people-driven constitution, new electoral laws, removal of "oppressive" legislation, and allowing every Zimbabweans, including those in the diaspora, to vote.

"We don't depend on the mediation of Mbeki or the intervention of foreigners. The Mbeki initiative is a bonus but it is not a full solution. Right now the opposition is going ahead with talks to unify ourselves so we can come up with a single candidate and we will achieve that," Prof Mutambara said.

But Francois Grignon of the International Coalition on Zimbabwe was opposed to the politicians' views. Grignon said the initiative was the best chance there was in many years to find a solution for Zimbabwe.

"The region is actually aware of the crisis and its consequences. It is still too early to judge whether the mediation is making headway. The major issue should be to set conditions for free and fair elections. The momentum has to come from the region and the international community," he said.

Businessmen Shingi Munyeza and Patterson Timba spoke of the problems businesses were facing in hyperinflationary conditions.

The said they remained engaged with the government to avoid any further damage to capital. "We are in an environment where we can plan on a daily basis," said Timba.

Both the World bank and African Development Bank (ADB) feel the economy in Zimbabwe is still redeemable but the precondition is to solve the political problems. ADB director of the development research department Tamitope Oshikoya said according to the recently released Africa Competitiveness Report, Zimbabwe ranked 121 of 128 countries.

He said if the turnaround that happened in countries such as Angola, Rwanda and Congo DR was anything to go by, Zimbabwe had a better chance.

"But it is first the peace process that is a precondition for an economic solution. The first set of reforms that must be taken is macroeconomic stabilisation and financial stability. Then we have to move to institutional reforms and structural reforms," he said. Oshikoya said Zimbabwe was of particular interest to ADB because it owed the bank US $350 million.

He also called for the independence of the Reserve Bank of Zimbabwe from what he said was political interference.

The World Bank's John Page said until there was a political solution in Zimbabwe, an economic solution was a non-starter.



http://www.postzambia.com/post-read_article.php?articleId=28004

Mbeki advises investors to engage govts in discussions
By Kingsley Kaswende in Cape Town
Monday June 18, 2007 [04:00]

South African Presi-dent Thabo Mbeki has called on investors to tell government leaders about specific problems they encounter in doing business in Africa.

Speaking at the closing session of the World Economic Forum on Africa, President Mbeki invited the business sector to engage governments in a frank discussion about the issues and challenges they face. "It is important to know what you as investors are concerned about," President Mbeki said. "We may not know what the problems are."

At one point, after meeting co-chair Malvinder M. Singh, chief executive officer and managing director of Indian firm Ranbaxy Laboratories, who described the difficulties his company has had in dealing with the differing regulatory regimes across the continent, President Mbeki responded: "Write a letter. It would help us. I am quite sure we can solve this problem and remove this particular obstacle."

More than 800 participants from 42 countries participated in the 17th annual World Economic Forum on Africa. Under the theme "Raising the Bar", the meeting focused on how Africa can build the capacity to sustain growth.

During the session, President Mbeki said that in addressing the challenges facing Africa, it is important to "disaggregate the continent" by taking a regional approach through existing institutions such as the Economic Community of West African States (ECOWAS) and the Southern African Development Community (SADC) or by focusing on finding solutions to specific problems rather than large, complex ones.

"If you deal with one big lump, it is something you can't chew," Mbeki said.
He reckoned that Africa needs many blueprints for action that will have to vary from region to region.

Labels: FDI, MDC, SADC, THABO MBEKI, ZIMBABWE

posted by MrK @ 3:29 PM