Zimbabwe News and Internet Radio

MDC savages Mugabe over Indigenisation

By Blessings Mashaya

Morgan Tsvangirai’s MDC says President Robert Mugabe should do the right thing and overhaul the controversial indigenisation laws so as to attract the much needed foreign direct investment and not offer piecemeal but desperate concessions.

President Robert Mugabe
President Robert Mugabe

In a statement yesterday, MDC spokesperson Obert Gutu said the indigenisation policy needs a thorough and complete overhaul and not piecemeal concessions as that would only add to the confusion.

On Tuesday, Mugabe stepped in to clarify the country’s position on indigenisation following a public fallout between his ministers Patrick Chinamasa (Finance) and Patrick Zhuwao (Indigenisation) on the implementation of the law that forces foreign-owned companies to cede 51 percent of their investments to locals.

“Instead of clarifying the overwhelming confusion that has been brought about by the populist and often, misguided remarks by Patrick Zhuwao, Mugabe’s statement actually adds to the confusion and policy inconsistencies.

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“Mugabe’s statement is actually very dodgy and sly. It shouldn’t be trusted and believed at all. He is simply trying to hoodwink and mislead the international community; particularly the Bretton Woods institutions because right now…Chinamasa and the RBZ governor John Mangudya, are in Washington DC for the IMF and World Bank annual spring meetings.

Experts say the controversial law has thus far repealed investors and the public fights between Mugabe’s ministers have also brought a cloud of uncertainty to those who may have wanted to bring their money to the country.

“Both domestic and foreign investors need to see and experience clarity and precision in our investment policies. Mugabe’s statement actually adds to the confusion and policy inconsistencies.

“The long and short of it is that a leopard never changes its spots. Both President Mugabe and his nephew, Patrick Zhuwao, are die-hard populists. The good thing is that both the local and international business communities will not be hoodwinked by Mugabe’s desperate attempt to put lipstick on a frog,” he added.

Diverting from Zhuwao’s hard-liner stance Mugabe sought to allay fears of those in the banking sector as he announced that the critical financial sector will be administered under the auspices of the Banking Act, which is regulated by the central bank and the insurance sector under the Provident and Insurance Act. Daily News