The Sunday Mail
Last week, a 19-member Invest Africa delegation visited Zimbabwe to explore investment opportunities. The international business grouping — which has its headquarters in the United Kingdom — largely seeks business partnerships in African countries. Our Senior Reporter Kuda Bwititi (KB) spoke to Invest Africa founder and chair Mr Robert Horsev (RH) who led the delegation. The following are excerpts of that conversation.
***
KB: What is Invest Africa all about and what is your interest here?
RH: Invest Africa is the largest Africa-focused investment community. We represent hundreds of the finest Western individuals, investors, entrepreneurs, hedge funds and private equity funds who are actively investing in Africa or looking to invest in Africa.
KB: Who are the members of your delegation?
RH: I have 18 of my Invest Africa members all of whom are investors in different sectors: agriculture, natural resources, telecommunications, information technology, food, affordable housing and energy. All of them have different interests but one goal: to invest and make a good return. Zimbabwe is a country that many of us love for personal reasons. It has the nicest people and is one of the most beautiful countries. We think with the right investment environment, this country will experience a boom.
KB: From what you have said, Invest Africa is a private body. What are your links with the British government in light of the fact that they facilitated your trip to Zimbabwe?
RH: We have offices in London, as well as in Dubai, Geneva and Johannesburg. We have members and investors all over the world.
KB: So what is your specific relationship with the British government?
RH: We do not have a specific relationship with the British government, but what the British government has been doing is to encourage us to come to Zimbabwe. The British government has been supportive for us to be here. They have been friendly to us and they said you should go and have a look at Zimbabwe.
Actually, there is a very good friend of ours, Lord St John of Bletso. He is actually part of the delegation that has come here. He is a great believer that Zimbabwe can be a huge success . . . He has encouraged us to come here.
When we committed to come in February, he kindly offered to introduce us to the British Ambassador to Zimbabwe who then came with the offer to host us.
KB: What investment opportunities have you seen in Zimbabwe?
RH: We met the Vice-President (Cde Emmerson Mnangagwa) and came out of that meeting interested and excited that we can be able to invest in Zimbabwe.
KB: What exactly did you gather from your meeting with Vice-President Mnangagwa?
RH: He was very frank and honest. He said that on the Indigenisation Act, we have got it wrong in some of the ways but we are going to get it right now.
He said that we need indigenisation and we are going to implement it, but we are low down in terms of investor rankings in the world. So, we have to become more attractive to foreign investors.
He was clear that indigenisation had to be done industry by industry and on a case-by-case basis. We also said to him as investors, we don’t want to invest our money then the rules change after a few years.
KB: So, are you in support of Zimbabwe’s indigenisation policy?
RH: We are not against indigenisation. We just want clarity on the policy. We want a policy which has clarity. And given the interaction that we have had so far, especially with Mr Mnangagwa, we appreciate that your indigenisation policy is here to stay and we will embrace it as we do business with you.
KB: What has been your perception of this policy?
RH: For many years, you have been working on an indigenisation programme — which frankly for international investment — is confusing but also punitive.
Under the original indigenisation scheme, it would be very difficult for any professional investor from overseas to justify investing or expecting a return from investment. Therefore, no one would invest.
But under this new direction, which the Zimbabwe Government is taking, it seems to have acknowledged that it is low down on the investment ranking and they have realised that the indigenisation programme needs to be changed and the investment environment needs to be made more attractive for foreign direct investors and I believe that is now happening.
What we have been told is that there is no one-size-fits-all. So, the original rule that 51 percent has to be owned by an indigenous person makes no sense whatsoever.
It may make sense in the natural resources industry. But in telecommunications, food, financial services makes no sense at all. So, what the Government is saying is that each industry sector will be dealt with on a case-by-case basis is an intelligent response. That is what we want to hear.
KB: So can you say that the indigenisation law is ideal and can attract investors? Would you also recommend other investors to come to Zimbabwe?
RH: True. For the first time, I am going to recommend to my investors that they should come here and look at Zimbabwe seriously. For the past few years, I have been saying don’t bother. There are far more interesting places in Africa to invest in. But now that the indigenisation policy has been amended, there is a more sensible regulatory environment.
I am going to say to my investors that they can come here focused and look for opportunities.
We love your country. We love your people. You are educated and you are peaceful and intelligent. This country has extraordinary human
