Harare - President Robert Mugabe has signalled a thawing in the approach to Zimbabwe’s economic policy, mandating Parliament to speedily deal with investor concerns and address land and indigenisation issues.
However, economists and business executives appear less swayed by this, nearly a week after the leader read the wrong speech and exposed himself to public ridicule.
His critics grabbed the opportunity to call for him to resign while his defenders, among them former information minister Jonathan Moyo, dismissed the gaffe as a normal and forgivable sin that was not reflective of Mugabe’s suitability to continue holding office.
Zimbabwe, in urgent need of respite through resurgence in investor interest, continues to be viewed as an uncompetitive destination, with the growth outlook now cut to 1.5 percent.
Easier investment
The uncertainty stemming from the political and policy framework has cowed investors, but Mugabe sought to address this in the correct speech that was tabled before Parliament on Wednesday.
“In order to stimulate both local and foreign direct investment inflows, government is carrying out a raft of measures to improve the business environment in the country,” Mugabe said, adding that “pieces of legislation, which have hitherto hindered the ease of doing business, will be overhauled”.
Zimbabwe is expected to finalise mineral legislation to pave the way to create a minerals exploration company.
A land audit is to be carried out by the Land Commission to ensure accountability, fairness and transparency in the administration of all agricultural land in Zimbabwe following the chaotic land seizures in 2000.
“In order to unlock external investment, it became necessary to simplify and rationalise the implementation of the Indigenisation and Economic Empowerment Act so as to render it more flexible. This was done in order to empower relevant ministries to negotiate investment thresholds, taking into account peculiarities prevailing in their respective sectors,” Mugabe added.
Action demanded
However, economists are not swayed, demanding that the legislature craft amendments to controversial policies and repeal others.
They welcomed signals to deal with the land issue, indigenisation, and corruption in state parastatals and across other sectors.
“It’s the action that should accompany such pronouncements that is important. We have had pledges and promises regarding clarification of indigenisation and other investment laws before and we never had any action; it’s whether they are sincere this time or not that is important,” economist Moses Moyo said.
Business executives said the business environment in Zimbabwe was fast worsening and squeezing companies.
The economy has continued to show signs of stress, remaining in deflation while companies record stagnant or falling revenue and softening demand.
Although public ridicule and a social media onslaught dominated the aftermath of Mugabe reading the wrong speech this week, attention and focus has returned to seeking ways to survive Zimbabwe’s prolonged economic woes.
SUNDAY INDEPENDENT