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Lovemore Chikova Development Dialogue

The Second Republic has created a conducive environment for the attraction of both local and foreign investments, and the ball is now in the courts of those with capital to consider the country as an appropriate destination.

This was said by President Mnangagwa during a recent interview with television anchor Andy Hodges on Zimpapers Television Network (ZTN).

The wide-ranging interview, prompted by the participation of Zimbabwe at the Expo 2020 Dubai, touched on a number of issues, where the President explained the country’s position.

Of interest was the President Mnangagwa’s assurances to investors that their investments were safe and the country was ready for a win-win engagement with them.

President Mnangagwa said the country’s participation at the on-going Expo 2020 Dubai would help showcase what it offers after being closed to the world for a number of years.

“Well, we have been a closed nation, a nation in the last two decades that has been isolated,” he said. “We are extremely grateful that we have been invited to this great Expo 2020 Dubai.

“We would want to be there as Zimbabwe to showcase ourselves, the opportunities that abound in our country in terms of investments, in terms of tourism and just in terms of coming to enjoy the great climate and sunshine which Zimbabwe enjoys throughout the year.”

President Mnangagwa said the Second Republic had taken various steps towards creating the ease of doing business for investors.

“Attracting investment into a country is not an issue of guessing,” he said. “You must create an environment where the investor feels comfortable to go and invest.

“So, under the Second Republic, we looked at ourselves and said we need to be competitive worldwide in terms of attracting global capital to our country. In doing so, we looked at issues to attend to in order to have the ease of doing business, lower the cost of doing business.

“In that direction within a period of under a year, we were removed from a very a low level and we went up 16 steps just within a year and it shows that we are very focused. We continue to improve areas where we think we remain less competitive compared to regional States as well as on the continent.”

Zimbabwe will continue to improve on the rankings of the ease of doing because of the various actions it is taking towards achieving the desired levels, said President Mnangagwa.

“If you look at the index that is coming soon, you will find that we have gone up again because so many pieces of legislation have been passed and we have also created ZIDA (the Zimbabwe Investment and Development Agency) where an investor comes to a one-stop centre where one gets answers of all the questions they may want to ask about investment in the country — it doesn’t matter what sector.

“That again cuts down the number of days the investor would want to know whether he is going to put his money or make money in Zimbabwe.”

What had critically crippled or constrained investment into Zimbabwe besides the sanctions, were laws relating to indigenisation.

Explaining the indigenisation policy, President Mnangagwa said it was “the bedrock of our socialist principles at the time where we felt that the indigenous people must always have 51 percent of every investment coming into the country.

“That now has been removed. You can invest, have partners, if you wish you can invest and own 100 percent of your company in Zimbabwe.

“All what we want is that you are investing in our country, we are benefiting. You are bringing skills, you are bringing technology, we also get corporate taxes and so on, levies are there.

“So, we just need to be competitive, if an investor looks at Zimbabwe and any other country and makes a choice, obviously he will choose Zimbabwe because we have created that environment for him to make his money on a win-win basis.

“Secondly, we have made sure we are competitive in terms of if an investor wants to register a company. In the past, it would take perhaps three months, now it takes less than three days. So, with a very minimum period he can have all his questions answered immediately at the investment centre, ZIDA.”

President Mnangagwa said the only reserved sector was now in diamonds where the Government was still looking at the diamond industry policy.

“But the rest of the mining sector, the rest of agriculture, infrastructure development, tourism, ICT, etc it’s open.”

The Second Republic, President Mnangagwa said, was totally against corruption and investors should be assured that the vice is being fought and eliminated.

“We have instituted ZACC (the Zimbabwe Anti-Corruption Commission) and we have created other agencies to support the fight against corruption.”

He said anti-corruption committees were being created in public institutions to monitor any acts of corruption.

Fighting corruption needed cooperation of the private sector, the public sector, the judiciary and the justice systems, as well as well-resourced investigating commissions like ZACC.

“There should be no sacred cows when you are fighting corruption,” he said. “The fight against corruption in this country is taking root. It may take time but we are determined that we fight it.”

President Mnangagwa said the judiciary should up its game when it comes to fighting corruption in line with the separation of powers where the other arms of Government are doing their part effectively.

He hailed the Deed of Compensation signed with white former commercial farmers whose combined compensation for farm improvements amounts to US$3,5 billion.

“Fortunately, we have discussed with representatives of those farmers who lost land and amicably we have come to an agreement after various models of assessment as to how we assess the value of improvements on the farms and we have come to a compromise where we have agreed on the US$3,5 billion and we have agreed on the mode of payment over a period and this is on course. So, both sides are happy, us and them.”

On engagement and re-engagement, President Mnangagwa said the efforts were paying off as many countries were warming up to Zimbabwe.

“I am so happy that the approach of the Second Republic for engagement and re-engagement means that with engagement we want to engage with those nations that had not engaged with us before.

“Re-engagement applies to those who had disengaged with us, we are saying let us re-engage. I am happy to say there are positive signs in many areas.

“In some areas the results are already positive where we have engaged with European countries in the EU. Many countries in the EU are now re-engaging with us.

“They have sent delegations up to the level of ministers and the measures that have been imposed on Zimbabwe have been relaxed, except now for only the Americans, the ZIDERA one.

“But again there are positive signs coming out of Washington and we shall continue to engage them and I believe that will also move away. But the rest of the EU I think we are now in good books.”

Property rights were being respected as instituted in the constitution, so investors should be assured on that front.

President Mnangagwa said there were many reasons why investors should consider Zimbabwe.

“There are several factors that come into play,” he said.

“One, it’s a stable peaceful country. “Secondly, an investor who comes here is assured of a well-educated population which can adapt to any skills or technologies that can be introduced.

“Thirdly, each investor who comes here is assured of various incentives that we give and is assured of repatriating their profits at the end of the day.”

President Mnangagwa said broad reforms were carried out straddling the social sector, the economy and politics.

On Vision 2030 of achieving an upper middle income economy, President Mnangagwa said work was already in progress to meet that goal.

“You have to make benchmarks if you are running a country and you want to develop a country, you must have stations of accomplishments.

“So, we have said to ourselves let us peg ourselves towards 2030 and achieve the following level and what should we do to achieve the middle upper income status as a country.

“We must develop our infrastructure in the country, our roads, our agriculture, our mining sector, our education, our health sector. All those sectors we must focus and upgrade them.”