The Sunday Mail
Sunday Mail Reporter
LOCAL businesses believe that the launch of the Motlanthe Commission of Inquiry and the subsequent release of the findings to the public has sent a message to the world that the new administration is committed to the rule of law and restorative justice.
Government, which is pushing to integrate the country into the global family of nations, is currently undertaking sweeping political and economic reforms.
There are also interventions designed to promote domestic and foreign investment.
The new trajectory being pursued by the Second Republic has attracted marked investor interest.
Authorities are presently processing more than $16 billion as some businesses seek to leverage on the first-mover advantage.
A submission made by the Ministry of Industry and Commerce’s legal affairs, Mr Never Katiyo — contained in annexure nine of the recently released report — indicates that the August 1 demonstrations resulted in the destruction of property worth more than $1,8 million.
The disturbances did not spare Chicken Inn, a unit of ZSE-listed Simbisa.
Regional grocer Choppies, which has a primary listing on Botswana Stock Exchange, was also affected, including a popular international franchise KFC store in the capital.
Edgars was also part of the casualties.
The Motlanthe report however recommends compensation for victims of violence.
CZI commends ED for inquiry
Zimbabwe’s largest manufacturing industry representative body, Confederation of Zimbabwe Industries (CZI)’s president Sifelani Jabangwe said while events of August 1, 2018 were unfortunate and should have been avoided, the inquiry will enable investors to have a full picture of what transpired.
Zimbabwe, he said, had done well in cultivating a peaceful environment in the period preceding the elections.
He said while the loss of life and violent protests should have been avoided, there was no doubt that the July 31 harmonised elections were different from all others.
“We believe this (inquiry and its public release) will now give an opportunity for investors to actually read and understand what happened on that day because the indication of instability had really scuttled a lot of things.
“So, now people have something to look at then review what they feel about the actions of Government and what they feel about the actions of all the other parties,” Mr Jabangwe said.
With most infrastructure and industry machinery and equipment in sorry state after years of economic volatility and little to no domestic savings due to effects of hyperinflation, Zimbabwe desperately needs foreign investment.
The Southern African country has averaged just $400 million foreign direct investment over the last half decade until November last year, amid concerns by foreign investors that investments were not safe in Zimbabwe.
The amount of FDI into Zimbabwe during that period does not compare well with the amount of foreign investments into other regional countries.
For instance, South Africa did much better than Zimbabwe in 2017, attracting $1,7 billion in FDI, even though this represented a 41 percent contraction.
ZNCC weighs in
Zimbabwe National Chamber of Commerce (ZNCC) chief executive Takunda Christopher Mugaga, commended the President for ordering and independent enquiry into events of August 1, saying this demonstrated Government’s appetite for openness.
“Obviously, the fact that the report was made public after some innuendos, which pointing to a report which was just for private consumption (of the President), shows we are certainly in the right direction. That alone should send messages (to investors), that this Government has appetite for openness as well.
“The contents of the report are different from the process of publishing the report; these are two different things. Why, because the contents where always going to be disputed by either part.
“The fact that the report was published is quite commendable because there was also an option (choice) of him (President) not to release the report,” Mr Mugaga said.
