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Mugabe: Zimbabwe is ‘open for business’
Zimbabwe’s President Robert Mugabe assured hundreds of businesspeople that his country was “open for business”.
The 91-year-old statesman also encouraged entrepreneurs to establish truly black, African businesses.
If it is going to be black ownership, African ownership, “it must be truly so,” said Mugabe.
He criticised entities that were not truly black and African owned. The day prior, Mugabe disputed reports that he was in South Africa to beg for help.
Mugabe and South Africa’s President Jacob Zuma opened the inaugural South Africa Zimbabwe Business Forum in Pretoria on Thursday, 9 April.
In attendance were hundreds of delegates from both countries, including Zimbabweans who are permanent residents in South Africa.
The address kicked off Mugabe’s third day in South Africa on his first official visit in 21 years. Afterwards, he visited Soweto, where he shook hands with some residents.
Zuma’s ‘urgent and crticial’ call
On Thursday morning, Zuma spoke of South Africa’s black economic empowerment policy, when addressing members of the business community packed into the hotel venue.
“It is urgent and it is critical,” said Zuma of economic transformation, strongly advocating for black ownership and more industrialists.
Zuma listed the demographics of businesses listed on the Johannesburg Stock Exchange (JSE) which he said accounted for only 3 percent of entities listed.
However, when Zuma stated the same figure in his State of the Nation Address at the beginning of the year, several economists quibbled it.
They cited a JSE statement suggesting black ownership of the top 100 companies had increased to 23 percent. In February, presidential spokesperson Mac Maharaj said the 3 percent figure Zuma used was based on “direct ownership” and “direct shareholding”.
“If you live on shares and companies, you are not in control. We want industrialists who own and control the economy,” Zuma said on Thursday.
While he recognised the challenges posed by the global economic crisis and instability in the oil sector, Zuma was optimistic about the economic outlook in Africa.
Elephant in the room
Neither Zuma nor Mugabe acknowledged poor economic growth in Zimbabwe, or noted growth figures predicted for 2015, which the IMF had previously suggested would be poor.
Rather, both president’s speeches hinged on the promise of binational partnership and growth opportunities.
“Our two countries have an opportunity to capitalise on our countries’ abundant natural resources,” said Zuma.
He encouraged business owners to develop goods using raw materials, in a manner that would benefit the people of South Africa and Zimbabwe.
“You are meeting today to cement these trade relations and explore new opportunities in these two countries,” he said.
New importing horizons
Towards the end of his address, which lasted well over an hour though scheduled for only 15 minutes, Mugabe predicted a possible Zimbabwean market for goods produced in South Africa.
Mugabe said, “There is no way we can say we will never import from South Africa, no.”
According to a report in The Economist in February and the International Monetary Fund (IMF) Zimbabwe’s predicted growth for 2015 would be weak.
“Growth has slowed down and we expect it to weaken further in 2015,” said head of an IMF review team Domenico Fanizza in March.
Reuters reported Zimbabwe’s foreign debt was $9-billion (around R109-billion).
Mugabe’s assurance
Zuma’s speech focused on memoranda of understanding signed by ministers from both states the day before.
Both presidents encouraged their audience to broker deals that would mutually benefit both states.
“You have both national tasks and the task of the region: to change economically,” Zuma told the crowd of Southern African entrepreneurs.
Mugabe concluded his address by assuring businesspeople that his country was open for business.
While he said they would not find jobs in Zimbabwe, they could establish their own offices in the country, and broker partnerships.
