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Zimbabwe Adopts 10-Point Plan to Tackle Ailing Economy, Boost Investment

  • Irwin  Chifera

Mr. Mugabe admitted the economic situation in the country was bad, adding his government will soon overhaul its policies blamed for blocking foreign direct investment.

Mr. Mugabe admitted the economic situation in the country was bad, adding his government will soon overhaul its policies blamed for blocking foreign direct investment.

President Robert Mugabe on Tuesday delivered his state of the nation address revealing that his government has adopted a 10-point plan aimed at making Zimbabwe an attractive destination for foreign investment, among other issues, including boosting the economy and creating jobs.

But the main Movement for Democratic Change (MDC) formation of former Prime Minister Morgan Tsvangirai was quick to dismiss the address saying it fell far short of expectations and did not address challenges facing the nation.

Amid jeers from opposition MDC lawmakers, Mr. Mugabe said the plan will focus on revitalizing the agricultural sector, fighting corruption and modernizing the country’s archaic labor laws.

He said following the closure of large corporations and massive jobs loses, the government will support the small and medium scale enterprises sector as it is now the source of livelihood for many people in the country.

He admitted the economic situation in the country was bad, adding his government will soon overhaul its policies blamed for blocking foreign direct investment.

Foreign investors and business executives have long told the government to repeal or amend legislation such as the indigenization law they say makes Zimbabwe an unattractive place for foreign investors.

WORST FOREIGN INVESTMENT DESTINATION

According to various international finance institutions, Zimbabwe is one of the worst foreign investment destinations in the world owing to stiff indigenization regulations, the high cost of setting up a business and an unpredictable political environment.

On Tuesday Mr. Mugabe said his government is working to change that.

He said re-engagement efforts with the international community will be pursued as the government seeks massive financial support for infrastructural development under its economic blue print, the Zimbabwe Agenda for Sustainable, Socio and Economic Transformation.

Parastatals, Mr. Mugabe said, would be reformed so they can be run professionally while adhering to good corporate governance.

Political analyst, Takura Zhangazha, told Studio 7 that Mr. Mugabe’s address was hollow and did not provide any solutions to the country’s problems.

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