DELAYS in concluding the presidential election dispute could further dent confidence in the tottering economy, with potential investors maintaining a wait-and-see attitude, analysts said yesterday.
Gamma Mudarikiri Own Correspondent
There are fears in the market that decision-making with regards to investment, will be temporarily halted as investors are wary of yet another disputed outcome after MDC-T leader Morgan Tsvangirai exposed suspected massive rigging in his petition to the Constitutional Court in which he is challenging results of the July 31 polls.
President Robert Mugabe garnered 61% of the total number of votes cast. Tsvangirai accuses the Zimbabwe Electoral Commission of manipulating the votes in favour of Mugabe and Zanu PF.
In his court papers Tsvangirai claimed Mugabe, using the office of the Registrar-General, paid Nikuv more than $10 million to fiddle with the election outcome, charges vehemently refuted by Mugabe and Zanu PF.
Analysts yesterday predicted a bruising and protracted legal battle which they said while good for democracy, would be harmful to business, commerce and industry.
There are fears the dispute could further reverse the economic gains of the past five years. Economic analyst John Robertson said the stalemate would have an impact on decision-making.
“The investment process is being delayed because of the disputed election results,” Robertson said. “Investors will wait until everything is finalised with regards election results.”
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Robertson said the disputed election process was further weighing down investor confidence and this would delay economic recovery. The country’s industry is in doldrums largely due to lack of investments, with financiers adopting a wait-and-see attitude due to the uncertainty surrounding the election outcome and policy misalignments.
A new Zanu PF government is targeting indigenising 1 138 companies valued at $14,3 billion which critics have, however, warned would scare away investment.
The Confederation of Zimbabwe Industries president Charles Msipa, said although the business environment was not ideal for due to the disputed election results, it was appropriate that all processes as provided by the Constitution be followed to end the stalemate.
“Democracy comes with a price, so as industry, that is the price we have to pay,” Msipa said. “What MDC-T is doing is according to the law as provided by the Constitution, so we have to wait until everything is finalised.” Twitter feedback @mudarikirig
