‘Restore rule of law to attract investors’

By The NewsDay | Apr. 22, 2015 | 2 Min read

European Union Ambassador to Zimbabwe Philippe Van Damme has urged the government to cultivate a good investment climate which attracts both domestic and foreign investors.

BY OBEY MANAYITI

Van Damme said in an interview last week that the country’s laws should be clear on investment as well as protect those who wanted to establish various businesses in the country. The country has suffered a major investor scare since the introduction of the controversial indigenisation law where some foreign investors are coerced to surrender the majority of shares to indigenous Zimbabweans.

The investment atmosphere had already suffered a huge knock during the violent farm invasions where the majority of white-owned farms were seized.

The government says the land reform was a success, but others argue the period marked the beginning of the downfall of the economy.

“Domestic and foreign investors need the rule of law as an essential element for investment,” said Van Damme. “There should be clarification of ownership of investment be it indigenisation law or the land tenure. These are the key issues which must be sorted out by the government.”

The EU and the Zimbabwean government are currently in the process of re-engaging after years of hostilities due to travel restrictions imposed on top Zanu PF and government officials for alleged human rights abuses.

Van Damme said the EU was ready to assist Zimbabwe on economic revival. “We have a programme to assist the government in its economic reform. One of the programmes will be channelled through ZIMREF (Zimbabwe Reconstruction Fund) which is managed by the World Bank,” he said.

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“We are putting ₤10 million in this fund. We are also engaging on policy dialogue and we are encouraging the government to implement essential reforms such as those identified by the International Monetary Fund’s Staff-Monitored Programme and even beyond that programme.”