Zimbabwe: ZANU-PF Begs EU Member States To Invest

By Staff Writer

President Robert Mugabe’s government has made a major climb down; pleading with the European Union (EU) to encourage its member states to inject the much needed foreign direct investment (FDI) in order to save Zimbabwe’s the ailing economy.

Deputy Minister for Foreign Affairs, Christopher Mutsvangwa said on Thursday August 14 that the ruling party indeed had realized that it cannot turn around the economy without a cash injection from its sworn enemies from Europe.

“At the present moment, our focus is on rebuilding the economy and we want FDI. In this regard, the EU is a major source of this FDI. We would want them to play a very active role in reviving the economy and that is why we would like them to bring capital to Zimbabwe and invest here,” he said.

Zanu PF and the EU have had frosty relationship since 2002 when the latter imposed travel and economic sanctions on President Robert Mugabe’s government point out gross human rights violations.

In protest, Mugabe’s government launched its ‘Look East Policy’ to compensate for the exit of Western investment in the country.

However, the policy has been criticized for failing to improve the economy by the opposition and analysts, accusing Zimbabwe’s Asian ally, China, for making Harare a dumping site for its sub-standard products.

The countries economy has been spiraling downwards at an alarming rate since 2013 disputed elections which Mugabe won.

The indigenization policy as well as a lack of respect for Bilateral Investment Promotion and Protection Agreements among other factors such as the infamous farm invasions has also been blamed for scaring away potential investors.

Mutsvangwa dispelled fears of seizure of investments among foreign investors saying the president was currently working to ensure that impediments to FDI were cleared.

“They should not fear anything, not at all. The Head of State is seized with the matter of revising laws which may be an impediment to FDI. Our ambition is to make sure that we are the best destination for FDI,” he said.

However, EU is of the view that Mugabe needs to turn his assurances into concrete legislative acts as a way of boosting confidence among potential investors.

Mutsvangwa said Zanu PF was keeping its fingers crossed ahead of November 2014 when the EU is expected to decide on whether to resume direct co-operation with Zimbabwe.

“We are looking forward to the complete lifting of the sanctions. We want normal relations with the rest of the world. We are a very friendly people and we have been pleased by the gestures that the EU has been showing on the Zimbabwean issue,” he said.

“Most importantly, we are pleased that all the outstanding issues about Zimbabwe are now being discussed,” Mutsvangwa added.

Recently the Zimbabwe-EU Business Information Centre was launched to assist small and medium enterprises to access
information on areas of trade with Europe.

Harare has of late intensified its efforts to attract more investors in order to salvage its dwindling economy which has been reduced to a shell of its former self, with the government pleading desperately with Peoples Republic of China for a US$4 billion loan amidst calls to increase inter-continental trade activities among regional trading blocs by Common Market of East and South Africa (COMESA).