The Sunday Mail
Two major events of very serious significance happened last week. The first was a visit by a delegation of French business people who expressed a desire and interest in investing in Zimbabwe.
The delegation, which met President Robert Mugabe, has a very remarkable track record, running companies with a combined annual GDP of US$10 billion and employing about half-a-million people in their various operations.
The President also used the meeting to clarify the country’s indigenisation law and helped clear some misconceptions.
The clarification of the indigenisation law to reflect the changing policy implementation environment is vital in meeting the country’s economic trajectory which looks bright and positive with the World Bank projecting annual growth of around 3 percent. It, however, needed a strong verbal commitment from none other than the Head of State and Government himself to ensure that there is clarity and confidence building to allow for a new policy implementation environment characterised by consistency and clarity.
The second major event which has sent shock waves through Zimbabwe’s detractors was the election of President Mugabe to be Chair of the African Union.
This came on the backdrop of attempts by the country’s detractors who wanted to scuttle the whole process in fear that President Mugabe’s election would vindicate his position that the country has been a victim of an onslaught by the West because of its principled stance in promotion of the Pan-African agenda.
His election thus sees him not only being President of Zimbabwe but also Chair of Sadc and Chair of the AU.
The net effect of his election creates a quandary for Western countries that have continued to impose illegal sanctions on the country for a purely bilateral disagreement with Britain, which wanted to continue pulling strings in the country forgetting that Zimbabwe is a sovereign republic. What the colonial master seemed not ready to accept was that Independent Zimbabwe has every right to make decisions for the economic empowerment of its citizenry.
The land redistribution programme, which inevitably changed the ownership of the means of production, was done in the national interest and desires to empower the majority of the country’s citizens over the wishes of a few who wanted to control the economy alone and thus influence and direct politics to suit their personal interests.
It should thus be understood that it was wrong for Britain to drag a whole gang of its allies in the European Union and its cousin Uncle Sam across the Atlantic to try and break a sovereign republic for making decisions aimed at empowering its citizens.
The economic losses that the country has suffered from the illegal sanctions – which have no United Nations approval – is around US$42 billion; which just goes to show that if the country was allowed to transact properly it would not be in the economic dire straits that it finds itself in today.
It is a against this backdrop that I view the two events as signalling a new beginning and new opportunities for the country. Zimbabwe is fast getting integrated into the community of nations, which is a very important and significant step towards economic growth.
There is need to grab and utilise the opportunities that come with chairing such an important body as the African Union.
It is also important to begin cementing relations with the rest of the world.
Already, the country’s Look East policy has provided significant signs of success. The mega deals signed during President Mugabe’s state visit to China in 2014 are a clear indicator that there is recognition of the country’s potential and of the huge economic opportunities that exist.
The China mega deals, which were followed immediately by other mega deals with the Russians in mining – including the commitment to establish a value addition and platinum refinery plant in Darwendale – show the success of the Look East policy.
But there is more.
The European Union has also seen that the country is on the march forward and there is unprecedented interest in normalising relations.
They have removed some sanctions and will allow Zimbabwe to benefit from aspects of the Cotonou Partnership Agreement. However, the continued sanctions on President Mugabe and First Lady Amai Grace Mugabe is an indicator that there is still a lot if insincerity because how do you say “I want to do business with you but I will not allow your leader to visit my country”?
This is hypocrisy of the highest order and the sooner the European Union realises this, the better. There should be unconditional removal of sanctions for all Zimbabwean entities, companies and individuals to engage freely with the whole world as we proceed with our recovery processes.
The situation is worse with the United State, which stubbornly clings to Zidera without realising that it neither helps promote American business interests nor helps Zimbabweans. Zidera remains a stumbling block. It is not in doubt that sanctions are hurting ordinary Zimbabweans. They are the ones who bear the brunt of the embargoes.
However, the expression of interest by the French business delegation represents a new thinking in the European Union and is reflective of changing global perceptions about the country. That, together with the election of the President to Chair the AU, reflects these changing political seasons. The confidence that SADC bestowed on the President when they made him the Chair also signals the same thing.
What needs to be done by Zimbabweans is to set aside their differences and grab the opportunities that are on the horizon. Our internal commitment and actions will help investors see that Zimbabwe is an attractive investment destination.
This commitment has to be expressed not just through verbal pronouncements but through actions. This is particularly important at the level of policy pronouncements. Policy coherence is vital for those interested in doing business in Zimbabwe. They need to enter with full knowledge of the opportunities and risks on the ground.
The link between policy implementation and the political environment is key in decision-making by investors.
It is important that the President has made the key pronouncements on indigenisation and what needs to be done is for the implementing ministries to sing from the same hymn book.
The opportunities before us also require a clean-up with regards to corporate governance in both the public and private sectors.
Corruption is becoming endemic and it must be tackled robustly.
Dealing with corruption is a serious and urgent business for the country and the responsible authorities should not hesitate or act out of fear when confronting perpetrators. Over and above these things, it is prudent to align many of our laws that present bottlenecks such as delaying the approval period for investors to start their operations.
Some of these problems are a result of poor policy review, with laws, regulations and procedures remaining rooted in past practices and not updating to the changing environment. Clinging to the same old way of doing business when it is clear that it is not working is a sure way of committing economic suicide. Policy implementation entails consistent policy reviews that in turn inform formulation of new policies to meet changing needs and expectations.
The onus is on the people of Zimbabwe.
SADC, the African Union and Western countries are showing their confidence in Zimbabwe and we have no reason to let ourselves down. The ball is now in the court of Zimbabweans to complement the positive steps that have been taken by the regional and continental bodies. The AU victory and the visit by a French business delegation surely signify the changing political seasons!
◆ Dr Qhubani Moyo is a policy and political analyst from Bulawayo East. He can be contacted at [email protected]
