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(HERALD) Economists speak on FDIs in Zimbabwe

Economists speak on FDIs in Zimbabwe
Saturday, 11 August 2012 14:17
Sharon Kavhu

Zimbabwe has a lot to do in crafting policies that lure investors, economic analysts have said. The country has a high rate of returns, a key aspect needed by both domestic and foreign investors.

The country's profile is, however, failing to lure For­eign Direct Investments (FDIs).
Zimbabwe National Chamber of Commerce (ZNCC) economist Mr Kipson Gundani said there was a need for the Government to disseminate informa­tion to the respective sectors responsible for advising for­eign investors.

Mr Gundani said one of the major reasons why for­eign investors were shunning the local market was the lack of consistent policies.

“Our economy is uncertain due to political issues. For instance, next year we are having presiden­tial elec­tions and the results will affect some areas of the econ­omy,” he said.

“The country's economic growth is guided by the (2011-2015) Medium Term Plan, but there is no guar­antee that after the presidential elections, the plan will still be in existence.

“Such uncertainty results in foreign investors adopt­ing the “wait and see policy.”

Mr Gundani said investors must be advised on the economic sector so that they can make informed deci­sions.

“It appears as if the Central Statistical Office does not have adequate resources and the Government must improve on matters to do with provision of services,” he said.

Although the Government launched a one-stop investment centre in 2010, the centre needs to be strengthened to facilitate the processing of invest­ments, particularly FDIs.

Mr Gundani said Government must capacitate the one-stop centre so that it becomes competitive, just like in other countries such as Botswana where there are effective investment centres that measure to interna­tional standards.

Government has all the information that the investors need and thus it should disseminate the infor­mation to the respective investment centres to avoid the issue of red tape.

Another economist, Mr Jonathan Kadzura, said that investors are reluctant to invest in the coun­try because of the Government of National Unity.

He said: “The Prime Minister has recently been trav­elling worldwide speaking negatively against the coun­try’s economy and the President.

“Having such situations, FDIs will never invest in the country,” said Mr Kadzura.
He said the Government should craft laws to deal with people who tarnished the image of the country.

“Of course, we have a high external debt and other issues, but these cannot be solved while we have a Gov­ernment that is in conflict,” he added.

“The country has resources that can attract FDIs, but they can never be realised until we have a proper Gov­ernment that imposes straightforward policies that are consistent. Zimbabwe has out­dated policies, particu­larly on labour and insolvency, and these scare away FDIs.”

Economist Mr Musabayana Nyamudzai said the Gov­ernment should craft policies that were abreast with modern developments and more effective.
“Government must get rid of rigid and outdated policies and create new ones, for example, the insolvent policies which make almost an impossible exit strategy.
He added that there was a need for the Government to develop a special economic zone to attract FDIs.

Government should work on a strategic plan on how to rehabilitate the country’s infrastructure to attract FDIs.

Labels: FDI

posted by MrK @ 1:42 PM