Elvis Dzvene, an economic analyst

Is FDI alone the solution to Zimbabwe’s economic woes?

By Elvis Dzvene

Yes it’s true that for Zimbabwean economy to rise up again it needs Foreign Direct Investment (FDI). But is this the only solution? No. The major experience with our Zimbabwean economy is we have a hunter’s mentality that is ‘ kill and eat’, now we have to grow a shepherd mindset ‘watch them grow until many’. With the hunter’s mindset we beg today and squander to the last cent knowing that tomorrow we can beg again.

FDI is the fastest and simple way of revamping our economy provided that foreign investors are willing to chip in. The economy should embark on mutual benefits that will underpin favourable economic conditions for generations to come. The prevailing situation seems as if we are focusing on narrow view of economic image hence subscribing debt to generations to come.

We are dragging by actually concentrating on calling foreign investors yet doing nothing in our country. How do they know that the environment is conducive for a bumper harvest if the owner of the land never plants a single potato? It’s like testing poisoned milk.

FDI like many sources of inflows is not the problem. The problem is confidence with the rule of law. The pre-conditions to be set first are the ones to set the tone. There are other close alternative solutions that can be used whilst waiting for foreign direct investment. The economic regulators must at least firstly;

Resolve the issue of cash crisis through the adoption of other strong currencies (for instance use of US dollar) to promote lower cost of production from our imported raw materials.

Boost existing industries, open and reopening industries. This will make Zimbabwe a conducive environment for business rather than calling on foreigners to invest yet domestic people are busy externalizing their funds with induced fear to lose their money.

It’s so sad to realize that as Zimbabwe we don’t have a viable textile industry but we have so many cotton farmers and tailors, so my question is where are we getting textiles and when are we going to stop that bad habit of importing ?

 

However, it is of great importance that for all the economic solutions to be implemented to revamp Zimbabwean economy with a vivid impression under the Open for business mantra, the government has to practically deal with corruption and transparency issues. Both the domestic and Foreigners are still assessing if it is to the letter and spirit of business community etiquette that Zimbabwe is open for business mantra.




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