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Minister bemoans strict policies

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Deputy Mines minister Fred Moyo says Zimbabwe’s stringent investment policies are scaring away foreign investment as they make it difficult to do business in the country.

STEVEN CHADENGA
OWN CORRESPONDENT

Moyo, who is also the Zanu PF Zvishavane-Runde MP, said unclear processes involved in allowing investors into the country were making potential foreign financiers shun doing business in Zimbabwe.

“Tight investment laws are a major drawback compared to other countries in the region,” the former Hwange Colliery Company general manager said at a fundraising dinner for the Cephas Msipa Scholarship Scheme in Gweru.

He added: “In Mauritius they conclude investors’ investigation in 48 hours while in Zimbabwe we conclude the same process in six months.

“Investors will certainly want to do business there. We fail in ease of doing business.”

Analysts have in the past pointed out that policy inconsistency and lack of clarity is hampering efforts to attract badly needed foreign investors.

In May, World Bank country economist Nadia Piffaretti said Zimbabwe needed to manage its high country risk by improving policy consistency and closely supervising its financial services sector as well as correcting all fiscal slippages.

President Robert Mugabe has of late been urging foreign investors to tap into Zimbabwe’s vast natural resources.

At the same time the president and his ruling Zanu PF party have been vigorously pushing for the full implementation of the controversial indigenisation laws that restrict foreigners from owning more than 50% of local businesses.

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