Maravi

Mutesa urges government to address investor concerns

Mutesa urges government to address investor concerns
By Kabanda Chulu
Tue 20 Mar. 2012, 11:58 CAT

THE government should spell out its plan of action on repossessed companies in order to mitigate the current negative investor concerns on Zambia's economy, says Fred Mutesa.

In an interview yesterday, Dr Mutesa, who is president for the Zambians for Empowerment and Development (ZED), said the lack of clarity and inconsistency on major national issues by most government leaders was creating anxiety among investors.

"Government should come out clearly and state its position on repossessed companies such as Zamtel. Is it nationalisation, or off loading of shares at Lusaka Stock Exchange or seeking another investor?" asked Dr Mutesa.

"On Zanaco, uncertainties are still there and these are some of the negative concerns which investors have on our economy resulting in depreciation of the kwacha, among other issues. So government should spell out its plans and provide leadership by channeling resources especially on some programmes that were started by the previous regime but are of national importance such as the SNDP (Sixth National Development Programme) and other national documents."

And National Movement for Progress president Ng'andu Magande challenged the government to take measures to make a favourable economic environment for both foreign and local investors.

"If locals are not supported, they might get involved in capital flight to safe havens. So government should sit down and work out measures that can give hope to investors that their money is safe," said Magande, who is also a former finance minister.

"Utterances and actions by government leaders should be moderate especially that we are going through a turbulent time globally. It is up to government to address these issues although it can't happen overnight but they outline their plan of action to bring back confidence in the economy."

The Zambian kwacha has depreciated by 15 per cent to trade at K5,300 against the US dollar while international rating agency Fitch has revised the country's economic outlook from stable to negative due to inconsistencies on economic policy pronouncements by government officials.

Labels: FDI, FRED MUTESA, NEOLIBERALISM

posted by MrK @ 4:17 PM