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Liquidity crisis: Zim needs foreign direct investment

RESERVE Bank of Zimbabwe (RBZ) governor, Gideon Gono said the country requires foreign direct investment (FDI) to solve the liquidity crisis and should not be seen as attacking the owners of capital.

BY MUSA DUBE

“The other way we can solve the liquidity crunch faced in the country is through attracting FDI,” Gono said in Bulawayo last week. “Among ourselves, we don’t have much and we have to bring in capital from somewhere in exchange of something, whatever we get. But we don’t have to attack the owners of capital.”

The country desperately needs FDI to rebuild and revive infrastructure neglected over the years.

Gono’s remarks could be aimed at the indigenisation policy which is set to spread its tentacles into the financial sector.

Gono said there was not going to be “an unstructured, chaotic or forced intervention in the banking sector outside technical agreement and legal way of doing things”.

“If you want to wake up saying I am now the RBZ governor, it’s fine with you, but you will only be believed by the gullible,” Gono said.
“We cannot stop anybody from wishing and thinking, but let me assure you that things are going to be done properly with due regard to the dictates of the country.”

Gono and the outgoing minister of Youth Development, Indigenisation and Empowerment, Saviour Kasukuwere, have fought over the implementation of the empowerment law which requires that at least 51% of businesses with a net asset value of US$500 000 or more should be in the hands of locals.

Kasukuwere insisted that he was merely implementing the law while Gono argued that the one-size-fits-all approach did not work in the banking sector. Gono has said that RBZ would issue new banking licences to those willing to enter the sector.

The governor was in Bulawayo last week with leaders of the banking sector to ease the worries of the banking public on the possible return of the local currency after Zanu PF’s landslide in the just ended polls.

Speculation has been swirling that the new government would retrieve the Zimbabwe dollar from the recycle bin.

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12 Responses to Liquidity crisis: Zim needs foreign direct investment

  1. Prof Nkata August 11, 2013 at 1:31 pm #

    thats makes sense Mr Gono, makutaura manje, how can u insult the americans and expect them to give u investments. it makes logical sense for us to have good relations with the west.

    Gadaffi could say what he said because they had a lot of oil,

    what do we have.

    the amount of minerals we have are insignificant at a world level

  2. Charles Razika August 11, 2013 at 3:44 pm #

    Whilst i agree with you on Gonos statement i dnt agree with you on saying the minerals we have are nothing in the world. Zimwe nde zvimwe we have minerals that can take us out of our problems. Strange that in this 21st century we still have blacks with a slave mentality that everything white is good. Yes we need them they need us. Their investing is good but on our terms. Indeginisation is the way to go but have to tread carefully.

    • asamoh August 11, 2013 at 6:18 pm #

      dont be naive – the last 5 yrs since mines were indegenised wat hv these minerals done for zim. the minerals are not bankable because they require a lot of processing and zim has no cash to do so .why wud Gono bother talkin about fdi if we are as rich as u so ignorantly beleive ????

      we need funding which is laegely owned by the west to unlock the value of our minerals -fact
      no sane country would lend zim with the cirrent politiical rhetoric being spoken because zanu can wake up and “indegenise” their investment.

      • cde chinyanganya August 14, 2013 at 4:56 pm #

        gono is one of the problems to zanu pf policies. we dont need to keep arguing over politburo decisions. if you can not work with us ship out. lets indeginise and start discussing production . if i had my way this should be done within six months and close this chapter.

  3. Asylum August 11, 2013 at 4:45 pm #

    .

  4. Handei Mberi August 11, 2013 at 6:11 pm #

    We said Mr Gono. With all due respect we have overplayed politics and the economy and lives are suffering while the priviledged few live large. Indigenisation, land reform, empowerment yes. We need to be masters of our economy too but we cant do it all tega, mari hamuna munyika and this liquidity crunch is biting worse and worse. We appointed these Gono’s of this world in high offices on merit and he has done this country good, its time we listen to them or the brains we have will just go to waste, time is ticking and our kids are growing up and do we honestly have to keep posting talent outside the country!

  5. Handei Mberi August 11, 2013 at 6:18 pm #

    Zimbabweans we need to engage constructively and realise diversity properly harnessed is a strength. We need to be humble and respectful right from the politicians all the way down. Imwe mudslinging we read, see and hear is disgusting and doesn’t show any example to the young.

  6. Asylum August 11, 2013 at 10:38 pm #

    How can a foreign investor invest when he knows v well that 51% shares will be grabbed by Kasukuwere 4 free. Stop dreaming!

  7. Gmjohn August 12, 2013 at 8:32 am #

    Whats a fair deal we can posibly get? By fair i mean good for and good the investor… Companies pay tax and royalties, so what if the state buys shares with “(some of)” that money? 51% is ideal but lets do justice rationaly…to my opinion 51% cant be done overnight but gradualy

  8. dreamboy August 12, 2013 at 9:44 am #

    more talk less action…this has always been the case, may this be reversed please, we need less talk and more action please

  9. Bill Wang August 15, 2013 at 4:16 pm #

    Nationalization is a sovereign power of an independent state in international law. At the same time, investors also need a promising and stable expected benefits. In my view, FDI should be win-win. I hold that there shoul be a balance between indigenization and FDI.

  10. Moses bonde August 18, 2013 at 3:21 am #

    Economics should not be politicised. We all need to forge ahead

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