Monday, October 3, 2011
Wednesday, August 3, 2011
Why Invest in Zimbabwe?
A friend has to make a presentation to potential investors on the opportunities for investment in Zimbabwe today. She asked me to outline what sort of case I would make if I were in her shoes. Tough call, but I said I would have a go at it.
The first reason I would put forward at to why that investment in Zimbabwe makes good sense is that I have chosen to invest my own life and that of my family in the country. That was a choice and we have not regretted for one minute. We are making the kind of investment in Zimbabwe that is essential if it is to eventually become the sort of country it has the potential to be. I am working to restore the rule of law, respect for human rights and the sanctity of private property, freedom of expression, freedom of opportunity and a market driven open society. A society where every child has the opportunity to reach for the skies if she chooses to do so.
Are we going to get there, of course, it is only a matter of time. Those who oppose those principles are on the wrong side of history and will ultimately lose out. I do not share the views of the Afro pessimists and believe that Africa is in fact metamorphosing into the continent with the greatest potential today.
Zimbabwe epitomizes that scenario. It has one of the best climates in the world; it may be affected by global warming but two thirds of the country is predicted to be moister although the rest will be drier. Its people are hard working and entrepreneurial. It is the richest country in natural resources per capita in the world with several minerals in world-class quantities. Its tourist potential is virtually untapped. Commercially and from a logistics perspective it straddles the heart of southern Africa. Industrially it is at the center of the largest concentration of mineral resources in the world and has access to markets that now encompass some 250 million people.
Zimbabwe probably has the most open and free economy in Africa – there is no exchange control, no limits on what you can bring in or take out. We have no price controls and the labour market is regulated but dominated by negotiations between organized labour and management. We have a good banking system that is highly competitive and a stock market that is growing and able to serve the need for raising local capital.
The immediate short-term opportunities are associated with the fact that we are emerging from a lengthy period of conflict – associated with a serious and protracted economic collapse. This means that real assets – land and buildings, strategic enterprise and facilities are available at a fraction of their global value. It is estimated that asset values will have to rise five fold before they reflect their real value in today’s global economy. Assets; will never be as cheap or accessible.
Unlike many other countries in conflict, we have not been shooting at each other and Zimbabwe still presents a sound infrastructure and great living space. This is no Somalia and is surrounded by countries, themselves emerging from conflicts and collapse but now exhibiting rapid growth and considerable stability.
Then there are specific opportunities – we are potentially a world-class gold producer. We have numerous gold properties that all need investment on a significant scale and present opportunities for substantial returns. Our potential is for a number of large mines and gold sales of perhaps 100 tonnes a year or some $4 billion per annum.
Our platinum resources have already attracted many world-class players – Implats, Angloplats and others. Altogether some $20 billion is being invested in what is now recognised as the most accessible and low cost platinum mines in the world. Link that to the other metals that are associated with platinum and you get the potential for PGM sales in a few years time that will exceed $6 billion a year.
ESSAR has invested in the steel industry and claims that it will be exporting over a million tonnes of steel a year in twelve months. Associated with the steel industry, Zimbabwe has billions of tonnes of high quality iron ore and coal and it is only a matter of time before we see the establishment of bulk ore facilities off the Mozambique coast to take exports from this part of the world to the markets of Asia.
Spain receives some 60 million tourists a year. Southern Africa some 15 million tourists this year. Despite its natural resources, the weather and tourist hot spots, Zimbabwe barely scratches the surface. Our potential is to capture at least a 20 per cent share of regional tourism and therefore rapid growth is possible. Plans are afoot to invest some $3,5 billion in the Victoria Falls area. The three Trans Frontier Parks constitute the largest contiguous conservation area in the world with the greatest diversity that is available anywhere.
If you put all of this together, there is huge potential in all spheres, retailing, support services, financial services, industry, mining, tourism, telecommunications, IT and even in areas such as medicine and higher education.
Do we have problems? Sure, who doesn’t? But we are working through them bit by bit and the outcome eventually will be a great place to live, raise a family and make money.
Would I delay to make sure that the future I outline above is secure? Perhaps but in doing so I would be forgoing the very real opportunities that are available to the brave few today.
Eddie Cross
Bulawayo, 30th July 2011
(ZimEye)
The first reason I would put forward at to why that investment in Zimbabwe makes good sense is that I have chosen to invest my own life and that of my family in the country. That was a choice and we have not regretted for one minute. We are making the kind of investment in Zimbabwe that is essential if it is to eventually become the sort of country it has the potential to be. I am working to restore the rule of law, respect for human rights and the sanctity of private property, freedom of expression, freedom of opportunity and a market driven open society. A society where every child has the opportunity to reach for the skies if she chooses to do so.
Are we going to get there, of course, it is only a matter of time. Those who oppose those principles are on the wrong side of history and will ultimately lose out. I do not share the views of the Afro pessimists and believe that Africa is in fact metamorphosing into the continent with the greatest potential today.
Zimbabwe epitomizes that scenario. It has one of the best climates in the world; it may be affected by global warming but two thirds of the country is predicted to be moister although the rest will be drier. Its people are hard working and entrepreneurial. It is the richest country in natural resources per capita in the world with several minerals in world-class quantities. Its tourist potential is virtually untapped. Commercially and from a logistics perspective it straddles the heart of southern Africa. Industrially it is at the center of the largest concentration of mineral resources in the world and has access to markets that now encompass some 250 million people.
Zimbabwe probably has the most open and free economy in Africa – there is no exchange control, no limits on what you can bring in or take out. We have no price controls and the labour market is regulated but dominated by negotiations between organized labour and management. We have a good banking system that is highly competitive and a stock market that is growing and able to serve the need for raising local capital.
The immediate short-term opportunities are associated with the fact that we are emerging from a lengthy period of conflict – associated with a serious and protracted economic collapse. This means that real assets – land and buildings, strategic enterprise and facilities are available at a fraction of their global value. It is estimated that asset values will have to rise five fold before they reflect their real value in today’s global economy. Assets; will never be as cheap or accessible.
Unlike many other countries in conflict, we have not been shooting at each other and Zimbabwe still presents a sound infrastructure and great living space. This is no Somalia and is surrounded by countries, themselves emerging from conflicts and collapse but now exhibiting rapid growth and considerable stability.
Then there are specific opportunities – we are potentially a world-class gold producer. We have numerous gold properties that all need investment on a significant scale and present opportunities for substantial returns. Our potential is for a number of large mines and gold sales of perhaps 100 tonnes a year or some $4 billion per annum.
Our platinum resources have already attracted many world-class players – Implats, Angloplats and others. Altogether some $20 billion is being invested in what is now recognised as the most accessible and low cost platinum mines in the world. Link that to the other metals that are associated with platinum and you get the potential for PGM sales in a few years time that will exceed $6 billion a year.
ESSAR has invested in the steel industry and claims that it will be exporting over a million tonnes of steel a year in twelve months. Associated with the steel industry, Zimbabwe has billions of tonnes of high quality iron ore and coal and it is only a matter of time before we see the establishment of bulk ore facilities off the Mozambique coast to take exports from this part of the world to the markets of Asia.
Spain receives some 60 million tourists a year. Southern Africa some 15 million tourists this year. Despite its natural resources, the weather and tourist hot spots, Zimbabwe barely scratches the surface. Our potential is to capture at least a 20 per cent share of regional tourism and therefore rapid growth is possible. Plans are afoot to invest some $3,5 billion in the Victoria Falls area. The three Trans Frontier Parks constitute the largest contiguous conservation area in the world with the greatest diversity that is available anywhere.
If you put all of this together, there is huge potential in all spheres, retailing, support services, financial services, industry, mining, tourism, telecommunications, IT and even in areas such as medicine and higher education.
Do we have problems? Sure, who doesn’t? But we are working through them bit by bit and the outcome eventually will be a great place to live, raise a family and make money.
Would I delay to make sure that the future I outline above is secure? Perhaps but in doing so I would be forgoing the very real opportunities that are available to the brave few today.
Eddie Cross
Bulawayo, 30th July 2011
(ZimEye)
Saturday, January 1, 2011
Ask not what your country can do for you but what you can do for your country- J.F.K. Kennedy
The post-transitional political dispensation requires selfless politicians who answer the call for public service not out of the pursuit of personal glory and wealth but the desire to contribute towards the advancement of our people. Equally so, it demands an active electorate whose mandate will be to hold these public leaders accountable.
The duty to move the country forward rests on man and women whose moral character is molded by recognition of our fiduciary responsibilities as ward councilors, mayors, legislators, and public servants. The principles of transparency and accountability should hitherto be utilized to maintain trust amongst the citizenry.
Not only does this duty rest on the elected but on those who elect. It is a right of those who elect to reserve the right to express confidence or lack thereof of the individuals whom they elect through any legal mechanisms at their disposal. According to section 23 of the amended constitution number 19, “every citizen will have the right to free, fair, and regular elections for any legislative body, including a local authority.”
Since this writer is a human services professional, it is only proper to tackle this issue from that perspective. Prior to independence, Zimbabwe has had its own form of local governance system headed by the chief ably assisted by the “Dare” and the advent of colonialism ushered in a new era of local and national administrative structures comprising of rural and urban councils as well as the parliament and the cabinet. The office of the chief which has existed until this day has somewhat continued with the role of providing a safety net for the deserving poor through the “Zunde ramambo” concept and solving civil matters. On the other hand, urban and rural councils as well as the legislature and the executive brought in a western dimension of governance whose prerogative is to administer the affairs of the council, parliament, and government. Simply put, rural and urban councils have to manage public works, provide water to residents, and acquire and alienate land for council and state purposes (Urban Councils Act: 29). The Zimbabwean parliament and executive have the responsibilities of making laws and administering them respectively. The judiciary interprets, applies the laws, and ensures their constitutionality.
Supreme to all the matters discussed above, through the constitution of Zimbabwe every citizen enjoys the rights and protections to the following: protection of right to life; protection of right to personal liberty, protection from slavery and forced labor, protection from inhuman treatment, protection from deprivation of property, agricultural land acquired for resettlement, agricultural land acquired for resettlement and other purposes, protection from arbitrary search or entry, provisions to secure protection of law, protection of freedom of conscience, protection of freedom of expression, protection of freedom of assembly and association, protection of freedom of movement, protection from discrimination on the grounds of race, etc.
The foregoing leads us to the issue of upholding those rights. While activities of parliament have been in the public domain one cannot say the same about the workings of the executive. Understandably, the dominance of ZANU PF in both local and national politics from 1980 to 1999 was the reason for this politiburo veil of secrecy in running the affairs of councils, parliament, and the executive. During this period, local and national public leaders became indispensable regardless of their failures in providing and managing resources. However, the advent of the Movement for Democratic Change (MDC) in 1999 somewhat lifted that veil leading to horrendous expositions of corruption, incompetence, and misgovernance. A cursory look at our laws indicates that there are guarantees for the protection of human rights and the advancement of the people of Zimbabwe in all spheres of life, however, this writer will argue that there is a dearth of selfless individuals who will implement the laws and work for the positive development of our nation. In other words, the culture of corruption is thriving contributing to Zimbabwe’s underdevelopment.
I contend that transparency and accountability needs to start from ward level up to the executive branch of government. The management of human and material resources by these public bodies has to indicate that there is transparency and accountability through the utilization of the committee system as enshrined by the urban council’s act and the Zimbabwean constitution. In the same vein, citizens need to actively engage these public servants through a robust community organizing strategy which utilizes these committees and regular hearings. Management of community and national resources is not only a prerogative of those elected but also of those who elect.
Currently, Zimbabwe is being governed by the GPA document which recognizes and accepts and acknowledges that the values of justice, fairness, openness, tolerance, equality, non-discrimination and respect of all persons without regard to race, class, gender, ethnicity, language, religion, political opinion, place of origin or birth are the bedrock of our democracy and good governance. It is a transitional mechanism which has to elapse after a new constitution is in place and substantive parliamentary and presidential elections are held and is not a guarantee for the attainment of economic and political stability. While many pundits focus on our legal framework, I argue and emphasize that mechanisms are not enough without selfless, dedicated, and committed public servants and a proactive electorate which holds these public leaders accountable.
Charles M. Mutama is studying a PhD in Human Services at Capella University, USA.
The duty to move the country forward rests on man and women whose moral character is molded by recognition of our fiduciary responsibilities as ward councilors, mayors, legislators, and public servants. The principles of transparency and accountability should hitherto be utilized to maintain trust amongst the citizenry.
Not only does this duty rest on the elected but on those who elect. It is a right of those who elect to reserve the right to express confidence or lack thereof of the individuals whom they elect through any legal mechanisms at their disposal. According to section 23 of the amended constitution number 19, “every citizen will have the right to free, fair, and regular elections for any legislative body, including a local authority.”
Since this writer is a human services professional, it is only proper to tackle this issue from that perspective. Prior to independence, Zimbabwe has had its own form of local governance system headed by the chief ably assisted by the “Dare” and the advent of colonialism ushered in a new era of local and national administrative structures comprising of rural and urban councils as well as the parliament and the cabinet. The office of the chief which has existed until this day has somewhat continued with the role of providing a safety net for the deserving poor through the “Zunde ramambo” concept and solving civil matters. On the other hand, urban and rural councils as well as the legislature and the executive brought in a western dimension of governance whose prerogative is to administer the affairs of the council, parliament, and government. Simply put, rural and urban councils have to manage public works, provide water to residents, and acquire and alienate land for council and state purposes (Urban Councils Act: 29). The Zimbabwean parliament and executive have the responsibilities of making laws and administering them respectively. The judiciary interprets, applies the laws, and ensures their constitutionality.
Supreme to all the matters discussed above, through the constitution of Zimbabwe every citizen enjoys the rights and protections to the following: protection of right to life; protection of right to personal liberty, protection from slavery and forced labor, protection from inhuman treatment, protection from deprivation of property, agricultural land acquired for resettlement, agricultural land acquired for resettlement and other purposes, protection from arbitrary search or entry, provisions to secure protection of law, protection of freedom of conscience, protection of freedom of expression, protection of freedom of assembly and association, protection of freedom of movement, protection from discrimination on the grounds of race, etc.
The foregoing leads us to the issue of upholding those rights. While activities of parliament have been in the public domain one cannot say the same about the workings of the executive. Understandably, the dominance of ZANU PF in both local and national politics from 1980 to 1999 was the reason for this politiburo veil of secrecy in running the affairs of councils, parliament, and the executive. During this period, local and national public leaders became indispensable regardless of their failures in providing and managing resources. However, the advent of the Movement for Democratic Change (MDC) in 1999 somewhat lifted that veil leading to horrendous expositions of corruption, incompetence, and misgovernance. A cursory look at our laws indicates that there are guarantees for the protection of human rights and the advancement of the people of Zimbabwe in all spheres of life, however, this writer will argue that there is a dearth of selfless individuals who will implement the laws and work for the positive development of our nation. In other words, the culture of corruption is thriving contributing to Zimbabwe’s underdevelopment.
I contend that transparency and accountability needs to start from ward level up to the executive branch of government. The management of human and material resources by these public bodies has to indicate that there is transparency and accountability through the utilization of the committee system as enshrined by the urban council’s act and the Zimbabwean constitution. In the same vein, citizens need to actively engage these public servants through a robust community organizing strategy which utilizes these committees and regular hearings. Management of community and national resources is not only a prerogative of those elected but also of those who elect.
Currently, Zimbabwe is being governed by the GPA document which recognizes and accepts and acknowledges that the values of justice, fairness, openness, tolerance, equality, non-discrimination and respect of all persons without regard to race, class, gender, ethnicity, language, religion, political opinion, place of origin or birth are the bedrock of our democracy and good governance. It is a transitional mechanism which has to elapse after a new constitution is in place and substantive parliamentary and presidential elections are held and is not a guarantee for the attainment of economic and political stability. While many pundits focus on our legal framework, I argue and emphasize that mechanisms are not enough without selfless, dedicated, and committed public servants and a proactive electorate which holds these public leaders accountable.
Charles M. Mutama is studying a PhD in Human Services at Capella University, USA.
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