Zimbabwe’s new government, which unnveiled a $5 billion budget for 2018 last Thursday, says it is capable of reviving the country’s moribund economy as long as the nation can rein in corruption, hold a credible election and implement investor-friendly laws.
Presenting the budget, Minister of Finance Patrick Chinamasa said reviving Zimbabwe’s economy would not be easy. The government must take steps to restore confidence in Zimbabwe’s public finances and institutions, he told parliament.
“We need to address the issue of international re-engagement, corruption and indiscipline, we need an investor-friendly business environment, and finally we need to ensure credibility in the conduct of the 2018 elections,” he said.
Chinamasa said revising the “indigenization” law would be one way to bring back foreign investment. The law, which requires Zimbabweans to hold a majority stake in any business, is blamed for driving away potential investors.
Independent economic analyst John Robertson said he thought the law should be repealed.
“We could have had a considerable amount of investment, but for the existence of that act,” he said. “I believe the attempt to impose it was an attempt to legalize the theft of assets of companies, and the warning that anybody trying to start a new company would face the same penalty has been more than enough to stop anybody coming to the country with new investment funds. So the removal of the act is what we are now hoping for.”
The law is still on the books. But in naming his cabinet last week, President Emmerson Mnangagwa dropped the Indigenization Ministry, which was in charge of enforcing the policy.
On Thursday, Chinamasa said the law, which former President Robert Mugabe said was meant to address colonial-era imbalances, would now apply only to diamond and platinum extraction.
more recommended stories
Zimbabwe finds first omicron case after announcing quarantine
Zimbabwe has identified its first case.
SA president Cyril Ramaphosa chides African states for Covid travel bans
South African President Cyril Ramaphosa has.
New Covid Variant From Southern Africa; calls for travel bans
South Africa and a number of.
Citizen initiative to buy Zimbabwe opposition leader Chamisa armoured car raises US$84,000
BULAWAYO – A citizen-led initiative to.
What is it with Prophets and Rape?
The question has always been asked.
Eight killed killed in ZUPCO bus and fuel tanker crash
Eight people died on the spot,.
EFF Leader Malema Denounces Calls for Deportation of Millions of Zimbabweans
Economic Freedom Fighters (EFF) party leader,.
Zimbabwe vice president’s ailing former wife Marry Mubaiwa sent to prison
Zimbabwe’s Vice President Constantino Guveya Dominic.