Courting business an insurmountable task

Corrections
Interesting to know that Zimbabwe’s captains of industry have travelled to Europe to engage the European Union on the economy.

Interesting to know that Zimbabwe’s captains of industry have travelled to Europe to engage the European Union on the economy.

From the Editor’s Desk with Nevanji Madanhire

The EU response is ready made; it’s a no-no despite the trip being facilitated by the head of the European Union delegation to Zimbabwe, Aldo Dell’Ariccia.

It was reported in the Zimbabwe Independent on Friday that a nine-member delegation — pretty high powered — has taken it upon itself to engage the European bloc in an attempt to rescue the Zimbabwe economy.

The delegation, according to the report, comprises representatives from banking, mining, agriculture and other important sectors deemed vital to the turnaround of the economy.

Dell’Ariccia, according to the report, will facilitate meetings between the private sector and European investors to lure the latter into investing in Zimbabwe.

This, the report said, seemed to signal a shift in the EU’s response to the Zimbabwean crisis, with the Western bloc choosing to deal directly with business instead of government.

A source is cited in the report saying, “It looks like they will just deal with the private sector now and ignore government despite [Finance and Economic Development minister Patrick] Chinamasa’s pleas for development assistance to be channelled directly through the government.”

But Dell’Ariccia, though confirming the delegation’s visit, denied this was a shift in the EU stance on Zimbabwe. He said: “At the moment there is nothing going on at government level and we still don’t have a date when the process will resume but we welcome the move by the private sector.”

The crux of the matter is that the EU has not had any problems with Zimbabwe’s private sector. The bloc is aware of the investment potential and opportunities Zimbabwe offers. It is aware of this country’s immense mineral wealth. It is aware of how this country can be a development hub for the whole of the southern African region. It is aware of how other trade blocs, such as Southeast Asia and even the Americas are eyeing this country as an investment destination.

The EU’s problem with Zimbabwe has always been with the politics, hence Dell’Ariccia’s cautious optimism about the delegation whose visit he rightly says “does not show any shift with regards to the EU stance on the re-engagement process with the Zimbabwe.”

It can be said, therefore, that the delegation jumped the gun. When the delegates return home after touring Belgium, the Netherlands, France, the United Kingdom, Spain and Switzerland, they would only have beaten the “January Disease”, nothing else.

Dell’Ariccia was candid in describing the trip as “interesting”. He said: “We found it interesting and decided to help.”

The EU’s problem with Zimbabwean politics goes beyond the question of governance. The fact that the bloc is ready to re-engage seems to suggest that their problems with the issue of governance has changed from utter disgust to toleration. It seems the bloc is now willing to accept certain behaviours and beliefs which are different from their own without necessarily agreeing or approving them.

That clearly is a good first sign of rapprochement.

It will certainly be an insurmountable task for the business delegation to convince the Europeans that the investment climate has changed when the politics haven’t. The ruling party still has to bring clarity to certain policies that are guided, not by business sense, but by political expediency.

Even the hawks in the ruling Zanu PF ensemble are aware of, and have spoken out about their party’s muddled policy pronouncements. The indigenisation law is one such policy which has not been spelt out clearly and has become a thorn in the side of Zanu PF itself. By any measure, it is a noble policy, but it is the practicality of it that is problematic.

It is true, the minerals in this, our piece of the earth belong to us and we can say with bravado that they constitute our 51% share in any investment in the country.  But these minerals are valueless until they are dug out. The investors are saying, it is the digging out that’s damn expensive and therefore there ought to be an assurance they will be able to recoup the money they would have sunk into the process of digging out and the 51/49% formula doesn’t guarantee this!

This January-disease-beating sojourn to Europe would only be successful if the businessmen took with them a clear policy statement from government spelling out how it intends to do business with Europe in a way that guarantees investors get a reasonable return on their investment.

The business delegation can’t in any way remove the suspicion that government policies are simply meant to grab investor money and distribute it to indigenous Zimbabweans, likely to be the well-connected.

It is clear the Zimbabwean economy is teetering on the brink and only a huge injection of money will save it. This must be the rationale behind the businessmen’s trip to Europe. But the reality is that unless our government is prepared for some kind of give-and-take, there will be no takers for any overtures from the private sector.

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