Allow investors to repatriate funds : Business

GOVERNMENT should first assure investors on how they would be able to repatriate their investment before running around preaching the mantra of the country being open for business, Alpha Media Holdings managing director, Kenias Mafukidze, has said.

BY MTHANDAZO NYONI

Contributing at the Urban Infrastructure Investment Summit held in Bulawayo on Monday, Mafukidze said preaching that the country was open for business would not be helpful without first addressing the issue of funds repatriation.

“. . . the elephant that we have (in the room) is the ability to remit money outside the country, because, where we stand now, if anyone of us wants to go outside the country, the bank in its formal structure, cannot give me $50 to go to South Africa,” he said.

“Now, how do you envisage bringing in $3 billion, $4 billion, $5 billion, $6 billion or $7 billion into this country for someone like him in South Africa, if we cannot guarantee that he would be able to get it back?

“So, I think it will not make any sense for us to keep running hard selling this country, talking about what we can do and what opportunities, until we answer the question that the first thing any investor would want to understand, is how do I get paid?”

Mafukidze said he felt the government was not addressing the real problem.

“. . . we will sell and sell, but we will not be able to attract any meaningful investment, because, as it is now, I would estimate we have probably $2 billion or $3 billion that is sitting outside the banking sector and in people’s pillows and all.

“Why? Because the moment we put that money in the bank we won’t get it,” he said.

“Until we go to the basics and answer that . . . that is the single fact that we have and must deal with.”

Deloitte Advisory Services consultant, Tatenda Chimusoro said the issue of repatriating investments was critical.


“If I walk into a lender, the first question they will ask me is [whether they will] be able to take money outside Zimbabwe,” Chimusoro said.

“So the question is; how can we give confidence to the lending community that if you bring in your money you will be able to take it out?”

In response, Local Government, Public Works and National Housing permanent secretary, George Mlilo said President Emmerson Mnangagwa had assured investors that they would be able to take out their investments without any hassles.

“There is no one at the present moment failing to move out his or her investment,” he said. “The people, who are trying to move out funds from the country are those that have got the appetite to externalise.
“Then there is collusion.”

9 Comments

  1. As long as those investors pay taxes on capital gains.

  2. Willbert Kanengoni

    The investors will only invest in a country where they are able to access their money without difficulties. You cant expect an investor to bring in US$2000 000 when he cannot be able to get US$100 from the banking system when he need it.The biggest mistake was the introduction of bond notes and putting them at par with the US$. The bond notes led to the disappearance of the US$ in the market and in the banking system. It seems the government is clueless on how to deal with this crisis it created in the first.

  3. Thank you Mr Mafukidze . you are the kind of people Zimbabwe needs ,you are a real business person with a clear mindset , you asked a simple question which all the so call business gurus cant asked this coup government and it shows that you are on the ground and seeing the reality . The moment they craft a law which allows and guaranty investors to move their money and the removal of bond notes , I am telling you Zimbabwe will be open for business . Mnangagwa is not law so his word of mouth is not enough guarantee on business , there is a saying in English which says , DON’T TRUST ANYONE ON MONEY . I advise ED as a senior politician and lawyer to lead by example by putting these clauses in black and white , his way of saying the word by mouth doesn’t work , that is why he is finding it hard to lure in the investors , and also if we are selling business why would we go out of Zimbabwe , let the buyer come to Zimbabwe .

  4. and we will not get anywhere with people like the named permanent secretary who are always singing praises and bootlicking even when its not neccessary. we all know about difficculties in pa paying foreign creditors and paying dividends to owners outside the country …exactly to the point of allowing owners to repatriate funds- but with threse praise singers such important discussions will not go anywhere.

  5. Charity begins at home, ngatimbowanei ma bond isu muno tozotaura zvevekunze avo….

  6. problem is this govt ndeye mbavha. They always looks for magap ekubira vanhu. Thats all they care about.

  7. Kuwiriranakwakanakakugarakunzwanana Garanewakomurudohamandishe

    Comment…Adione vachiuya nekuti mari
    yeZimbabwe irikugara mumigwagwa, kwete kumabhanga. Ndiyani angada kuchengetera mari yake mumugwagwa, abva SA, Botswana, Zambia, Mozambique? UK, USA, France, Brazil? Hurumende ngayibvise mabhanga mumigwagwa, kutanga. Pasinazvo??????

  8. Let the investors take everything since Africans invest – not in factories- but mansions to sleep in.

    How so primitive!

Leave a Reply

Your email address will not be published.