Zim needs to rethink empowerment – German Ambassador
http://www.thezimbabwean.co.uk
Written by Fungi Kwaramba
Saturday, 26 February 2011 14:07
… political risk too high, threats deter investment
HARARE – Zimbabwe risks being further isolated and left behind the rest of
Africa if it continues with policies such as the indigenisation drive, says
the German Ambassador to Zimbabwe, Albrecht Conze.
While he was relieved at the end of the rapid contraction of the economy
caused by runaway inflation, itself a ripple effect of the Zanu (PF) regime’s
disastrous economic policies and the incessant printing of money by Reserve
Bank Governor Gideon Gono, this could be reversed if the country proceeded
with its anti-west rhetoric and corrupt nationalisation of industries, said
Conze.
“The recent rattling of sabres against the ghost of “white supremacy” does
carry the risk of isolating the country once again from Africa’s dynamic
mainstream. The rhetoric used by certain ministers in this respect are not
only ill-founded, irritating and unconstitutional, but totally out of tune
with the rest of the continent, where race issues have long been set aside,
with no more impact on policy decisions,” said the ambassador.
Government ministers such as the Minister of Youth and Economic Empowerment, Saviour Kasukuwere continue to make inflammatory public statements that encourage Zanu (PF) thugs to take over businesses owned by foreigners. Ironically, the Chinese, President Robert Mugabe’s bosom buddies, are not being subjected to the same treatment as people from European countries, despite being foreigners in Zimbabwe..
Over the past few weeks Zanu (PF) heavies have been whipping up emotions in the party’s youths with their anti-“sanctions” propaganda. In reality the
targeted measures against certain Zanu (PF) individuals and companies for
their gross human rights abuses have nothing to do with the collapse of the
national economy whatsoever. Conze questioned the Zanu (PF) concept of
economic empowerment at a time when the country had yet to recover
economically from years of abuse.
“Why not seek venture capital from all over the world instead of giving
concessions away cheaply to some – rather than offering them at a market
price to all? Why are Chinese companies being granted waivers of the 51
percent rule while nobody heard of a European company receiving such
favour?” asked Conze.
He proposed that in order for the country to achieve economic empowerment it had to acquire new credit lines, including support from traditional friends
such as Germany and financing through a sovereign fund.
“Credit lines do not come without confidence. I keep encouraging German
investors to take a close look at opportunities in Zimbabwe. But the current
indigenisation drive and the threatening tone used by some of its high
profile advocates then deters them from investing. They mostly come to the
conclusion that the political risk is too high,” said Conze.