Red flags over ED deals

THE Southern and Eastern African Trade Information and Negotiations Institute (Seatini) has raised a red flag over deals the government signed in the past four months, saying they were characterised by opaqueness and lack of public scrutiny.

BY MTHANDAZO NYONI

In its concept paper for the forthcoming provincial wide consultations on foreign direct investment (FDI) and the reform processes in Zimbabwe, Seatini said President Emmerson Mnangagwa had revealed that the country had attracted investment commitments amounting to $11 billion in the past four months, but the deals were not clear.

Some of the major deals that have been reported include the $1,2 billion Tourism and Hospitality Industry one, lithium ($1,4 billion), Agricultural Finance and Commodities Ecosystem ($1,5 billion), National Railways of Zimbabwe ($1,7 billion) and platinum ($4,2 billion), the body said.

“There are, however, discomforts emanating from the opaqueness of the processes leading to these major investment deals, as they are signed in boardrooms, with the public lacking key details to such deals,” Seatini said in a concept note.

“There is no full disclosure of details and information on these deals, including full disclosure of the investors. Currently, there are limited forums for collective interrogation of these investment deals that are inclusive of communities and the civil society.”

It said the current investment drive and reform processes have raised a lot of questions, as they exclude “important stakeholders”.

“Furthermore, there are general concerns that the considerable pressure by the new government to attract investment is an opportunity that can be exploited given the appetite of global capital,” Seatini said, warning that “investments characterised by opaqueness and lack of public scrutiny may fail the desires of most Zimbabweans.”

Seatini said such investments may fail to create decent jobs, empower women and youth, promote economic independence through enhancing domestic fiscal resources, reduce poverty and socio-economic inequalities, promote social well-being, promote social cohesion and contribute to rural economic transformation.

“Such investments are disastrous to the citizens of Zimbabwe, especially given the experiences at Chiadzwa diamond mining fields,” it said.

To discuss these issues, among others, Seatini, in conjunction with other civic society organisations, will hold provincial consultations on FDI and the reform processes in Zimbabwe, starting with Bulawayo on Friday.


The objective of the consultations, according to Seatini concept paper, is to promote citizen participation in the reform processes in Zimbabwe and promote the attraction of FDI that will enhance the agenda for transformative industrialisation in Zimbabwe.

Since coming to power in November through a military-backed transition, Mnangagwa has been preaching the “Zimbabwe is open for business mantra”, promising to create an investor-friendly environment.

12 Comments

  1. machakachaka

    Seatini should not seek supervise Zimbabwe.

  2. Seatini be open with your motive. Zimbabwe cant suspend all the deals because of upcomng elections. Shuwa Daily news the day election results will be announced muchachema. Carry on with your MDC-T factional politics.

    1. mukwerekwere

      Unfortunately for you, ZANU PF’s track record is well known to all. Everyone is judged on their acts and ZANU PF falls well short. Try again.

  3. Matebele Warrior- Chamisa is our leader

    The analysis is spot on , the truth is painful to Zanu pf .My own understanding is that , for a deal to be signed there must be due diligence , was this done , we risk having fraudsters or money launders investing in our country and find ourselves accomodating money launderers

    1. I am sure you would only accept the deals if Nero or the MDC were involved, how childish?

  4. NONSENSE

  5. The deals concern all Zimbabweans, political affiliation aside here cdes. Sam Pal the Chinese crook entered into Diamond deals with the government and only to be convicted of serious fraud cases in China and his investments are now crumbling here ie Sino Zim. All what is being said is lets have transparent deals, well scrutinised and parties subjected to vetting kwete kutiunzira matsotsi muchiti they are investors imi muchiita madhii enyu.

  6. It is of concern that in an eagerness to have something to show before the elections, this government might be suckered into signing deals that give unfair and overriding advantage to the investor (even more so than usually happens on our continent). There is need for oversight by parliament; our president (whoever he/she is) should not have father-knows-best, self-serving, unchecked powers to sink our young generation into future national debt. This is something that should greatly concern all sensible taxpayers and parents, even ZANU PF supporters – instead we seem to be getting the usual knee-jerk responses.

  7. Please leave Chamisa out of this. What has been said has been said well . We need to be carefull as Zimbabwean on these quick quick deales . We need to have a team of expercts who can weigh these deals be fore they are signed , not just the presdent. Otherwise we are going to lose as citizens like what happened at Chiyadzwa. Even the gone president was not sure aboout the missing billions in the Chiyadzwa deals. Otherwise we are going to be short change as a country. Lets open our eyes , this country is not fo sell .Zanu pf or Mdc lets open our eyes this is beyond party politics . Let us not be so desperate.

  8. nyika yamaichemera yangomamvemve

  9. Nyika ichatengeswa tisingazive

  10. Let us be careful as Zimbabweans. If deals are meant to help every Zimbabweans, why are they still a secret to those who they are supposed to benefit. Tiudzeiwo zvamunenge mabvumirana nekuti Zimbabwe ndeyeduwo. Kana muchireva kuti munotida sezvamunoreva vatungamiri vedu tiudzeiwo zvamawana pakupemha. Murikupemha nemazita eduwo muchiti Zimbabwe. #UKAISA ZIMBABWE MUHOMWE INOKUPISA KUSVIKA WAIBUDISA. Zimbabwe our nation, our heritage.

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