HARARE - Zimbabwe will lag behind its African peers in development if its government does not enforce investor-friendly policies, deputy British Ambassador to the country Chris Brown said.
This comes as the investment-starved country is desperately trying to attract foreign direct investment (FDI) and access international lines of credit.
But investors and financiers are wary of its policies, particularly the indigenisation law — compelling foreigners to cede majority shareholding to black locals.
“Zimbabwe should look directly at the elephant in the room, the continued uncertainty over the implementation of the Indigenisation and Economic Empowerment,” Brown told a Zimbabwe National Chamber of Commerce (ZNCC) conference.
He added: “If government does not soon articulate a clear approach, one that achieves empowerment yet respects property rights, Africa will continue to rise without Zimbabwe.”
“Zimbabwe should therefore follow an investor-friendly path and this alone would give a seven percent GDP growth per year. This is ignoring her abundant agricultural resources and exceptionally-educated labour force,” Brown said.
The British diplomat said investors will continue shunning the country if their concerns about the business climate are not addressed.
“We see it in surveys, hear it from experts and those in this room
accountable to global boards hear it loud and clear. Most investors who visit decide not to put their money here because there is global competition for their money,” Brown said, hinting that he would be meeting a British firm considering investing in a Zimbabwean bank in the coming week.
Mike Bimha, Industry minister in President Robert Mugabe’s Cabinet, also castigated Zimbabwe’s current policies and called upon the private sector to help government in policy implementation.