Govt tries to lure investment despite mounting violence
By Alex Bell
08 March 2011
The unity government is this week once again trying to lure international
investment into Zimbabwe, despite mounting violence across the country and
fears of worse to come.
The three principals in the coalition government, Robert Mugabe, Morgan
Tsvangirai and Arthur Mutambara, on Tuesday launched a two day investment
conference in Harare. The conference, aimed at reassuring potential
investors that Zimbabwe is a safe investment haven, comes as Mugabe’s ZANU
PF party has in recent weeks intensified their violent campaign against
perceived MDC supporters and increased its threats to seize international
companies.
The ZANU PF onslaught has resulted in scores of mainly MDC supporters being
detained and tortured in prison on trumped up charges. This includes human
rights activist Munyaradzi Gwisai who, along with others, is facing treason
charges after watching footage of recent civil uprisings in North Africa. At
the same time, the police continue to arbitrarily arrest other activists and
MDC supporters, while ignoring abuses and crimes committed by ZANU PF.
There are also warnings that the worst is still to come as ZANU PF’s
election campaign moves into high gear. Already in rural areas there are
reports that the youth militias are being armed and along with war vets have
been marshalled to intimidate villagers ahead of a possible election this
year. Manicaland province has so far been the worst affected area, with
armed war vets and militia groups threatening villagers, looting property
and destroying homes. Hundreds of Nyanga residents have fled the area into
Mozambique to escape the marauding gangs.
Despite all of this, the investment conference got underway on Tuesday with
no mention of the worsening violence and harassment. About 300 business
tycoons gathered for the conference, which was officially opened by Prime
Minister Tsvangirai, who only referred to the violence as making it
“difficult for those of us who were working towards normalisation of
relations (with the West).”
“It is difficult to convince the world that you have turned the corner when
others are perpetuating the same culture of violence in the countryside; the
same culture and behaviour that brought us where we are,” Tsvangirai said.
The investment conference also comes in the wake of comments made by Mugabe,
who has threatened to seize total control of American and European
businesses, in retaliation for the Western imposed targeted ‘sanctions’
against him and his regime. The comments fall in line with his party’s
indiginisation plans, which have become the centre of ZANU PF’s election
campaign strategy.
The controversial plan will see more than 50% of foreign owned firms taken
over, policies which economic analyst John Robertson said must be abandoned.
Speaking to SW Radio Africa on Tuesday Robertson said that such policies are
“driving people away.”
“These policies are basically repugnant to investors who are not willing to
come into Zimbabwe and see half of their investment confiscated from them,”
Robertson said.
Finance Minister Tendai Biti on Tuesday tried to convince conference
delegates that the indiginisation plans were not a threat. He said the
Indiginisation and Empowerment Act won’t lead to companies being
expropriated or to nationalisation.
“There’s nothing wrong with the law on indiginisation,” Biti is quoted as
saying. “It doesn’t say there’ll be nationalisation. It’s not a law which
allows expropriation. We will respect our laws.”
It is widely expected that Mugabe will use the conference to clarify his
stance on indiginisation, possibly to make the plan seem less threatening.
But Robertson said these efforts and other attempts to soften the
indiginisation blow “will make no difference to the inclination of
investors.”
“The policies are not appropriate to the needs of investors. Even if they
got some kind of clarification, the policy in itself is not a policy we need
in Zimbabwe today,” Robertson said.