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Zimbabwe Political Situation Worries American Investors

The President and Chief Executive Officer of the Initiative for Global Development, Dr. Mima Nedelcovych, says there is great potential in Zimbabwe’s agri-business sector, which American investors would like to explore but are being hampered by the uncertain political situation in the country.

Nedelcovych says investors are currently observing the situation in Zimbabwe with an interest to invest but most of them are shying away due to some of the repressive economic policies in Zimbabwe that are not conducive for international investors.

"From a company stand point we have members in Zimbabwe through Seed Co-op and from the American company stand point there is a lot of potential in agri-business but businesses are taking a wait and see attitude as they are not confident in the operating environment currently prevailing in the country," said Nedelcovych.

"The question now is for American business people to feel confident about what the rules of the game are and what I have seen on the American side is because of the great potential in Zimbabwe the interest is there but business people want to be assured that their investments are secure once they decide to invest there," added Nedelcovych.

He says most of international business people fear the black economic empowerment program, which compels foreign-owned companies to transfer a 51 percent stake to local people.

Addressing a business forum held at the Voice Of America Thursday, Nedelcovych said despite the political challenges in Zimbabwe, his organisation is working with seed co-op and is hoping to get more insight into how other American companies can navigate the current situation and invest in Zimbabwe.

The Initiative for Global Development is a nonprofit organisation that engages corporate leaders to reduce poverty through business growth and investment in Africa.