Justice and Legal Affairs deputy minister Obert Gutu says the government must craft a clear policy strategy in order to trade meaningfully with Asian countries if it is serious about adopting the Look East Policy.
Report by Pride Gonde Own Correspondent Gutu made the remarks in Hunan Province in China last week when he was presenting a paper on prevention and remedies to China-Africa investment risk at a legal seminar between China and Southern African countries on economic, trade and investment co-operation.
“If African countries have seriously adopted a Look East Policy, then it must not just be a slogan but a genuine foreign policy, which is supported by a public document.
“In the case of Zimbabwe, there is a need to craft a clear policy strategy in order to trade meaningfully,” he said.
Gutu said for a country like Zimbabwe that had suffered a decline in the gross domestic product between 2000 and 2008, the Look East Policy was an opportunity to improve the livelihoods of the greater part of the population.
Gutu commended trade and investment co-operation between Africa and China saying it would continue to bring benefits to both countries, as they would exploit their comparative advantage, reap the benefits of economies of scale and ensure competition.
“The expected benefits are generic; employment opportunities, cheap source of goods and positive impact on welfare and increased revenues from taxations, among other expectations,” he said.
The MDC-T minister advised the Chinese business community that a foreign company must secure a set of regulatory approvals before it was awarded an investment licence in Zimbabwe and other African countries.
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Gutu said it was important for an investor to study the business and legal environment of the host country.
“Reliable, comprehensive and tailor-made legal advice that really fits the needs and situations of an investor firm, will go a long way to minimise risk,” he said.
“It is advisable to engage a lawyer as early in the process as possible.”
Over the past 10 years, China has established itself as an influential trading partner in Africa. Zimbabwe is currently increasingly forging ties with China, especially after a freeze in relations with its traditional trade and investment partners.
