×
NewsDay

AMH is an independent media house free from political ties or outside influence. We have four newspapers: The Zimbabwe Independent, a business weekly published every Friday, The Standard, a weekly published every Sunday, and Southern and NewsDay, our daily newspapers. Each has an online edition.

Investor limbo: A post-election conundrum

Opinion & Analysis
It’s almost a month and half after what many hoped would be an electoral process pregnant with prospects and promises has passed. Perhaps for some, the result is a stepping stone to their “promised land”, but for others the future looks bleaker than it was before elections.

It’s almost a month and half after what many hoped would be an electoral process pregnant with prospects and promises has passed. Perhaps for some, the result is a stepping stone to their “promised land”, but for others the future looks bleaker than it was before elections.

DEVELOP ME WITH TAPIWA GOMO

Even in that dearth of hope, some have cast their meagre hopes on the new Cabinet and how that is likely to significantly influence government policy directives. Are we going to see a serious policy shift?

Listening to the recent Heroes’ Acre speeches, it does not look like much will change, but only time will tell. We still view those who are doing their best to look after their citizens as enemies.

We are still in the battle mode even when we are supposed to be running a country. The language of war dominates our narratives. A war mentality breeds a defensive mentality and not a productive one.

Last week, I travelled with a Zimbabwean investor based in South Africa who shuttles between the two countries as he juggles his business ventures.

He is one of those who were hoping elections would bring change, not that he had confidence in the MDC-T government, but believed a new government would usher in a fresh lease of life into the economy while the right leadership is being sought.

He mentioned to me that there is a huge group of investors who are so keen on crossing the Limpopo River to invest in Zimbabwe, but the current set-up does not offer confidence to security of property rights and investment ventures. For most of these investors, the situation obtaining in South Africa is becoming hostile to investment and stability.

He added that industrial strikes have become a thriving industry on its own and it is affecting production and economic stability.

The mining industry is dealing with a huge industrial strike with no fewer than 80 000 mine workers threatening to down tools. A gold industry shut down can cost more than R350 million a day.

The motor car industry has also joined and a complete shutdown would also cost the industry up to R60 million day. These will also have trickle down effects to other industries and subsequently to the ordinary citizen. It is a trying time for South Africa.

While negotiations are underway in the mining sector, there is a chance that their outcome will have a domino effect on other industries resulting in more strikes and price hikes.

Leaders of some of the labour organisations have made it clear that they will strike until Christmas if their demands are not met. The construction industry too has issued warnings. While investors are not against wage negotiations, they feel that the country must be given time to work, not to be exposed to strike after strike. It affects planning and production.

Most of these investors were waiting for the Zimbabwean elections with a lot of interest. Some of them had one leg already in Zimbabwe only to retreat after results were announced.

Minus the political craziness, the chaotic economic and indigenisation policies, some investors still see Zimbabwe as an ideal investment place compared to what is obtaining in South Africa today. But still those factors cannot be ignored especially after they caused so much economic distress in the last decade. Zimbabwe’s proximity to South Africa makes it easier to transfer equipment across the border while they continue to access ports in Durban for imported materials. It is a choice between a hard rock and rough surface.

However, my flightmate thinks this is an opportunity that the new government must tap into if they want to re-launch the economy.

In addition to the already existing skilled labour market, the government needs to assure investors that their investments will be protected from the vagaries of political madness.

There must be a shift in approach if the new government must fulfil its obligations to create jobs for the youth and rekindle the dreams of a better Zimbabwe. They are not demanding a custom designed conducive environment as is usually the case, but are simply asking for security of investment and respect for business practice.

In the meantime, my flight mate’s only hope is the new Cabinet and policies that come out of that. If all look favourable, he will start transferring part of his South Africa business venture into Zimbabwe.

Perhaps this assessment of things confirms the long-held assumption that a stable Zimbabwe does not favour South Africa’s economic growth agenda.