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Zimbabwe Election Results Scare Investors

Zimbabweans at a polling station Wednesday
Economists warn of investor flight in Zimbabwe as Zanu PF nears a two thirds parliamentary majority giving it the power to change the new constitution and possibly re-introduce the dumped Zimbabwe dollar.

They say indications are that large numbers of investors are skeptical about the outcome of the election as they fear that the Zanu PF government will also implement its indigenization programme compelling foreign-owned companies operating in the country to transfer majority stakes to local people.

But some economists doubt that the Zanu PF government will fully implement the much-feared indigenization programme.

Some political activists are now calling for a tax and bills payment boycott saying the elections were rigged.

Economist Godfrey Kanyenze, founding Director of the Labour and Economic Development Institute of Zimbabwe, says he thinks the proposed tax-and-bills boycott is a terrible idea.

The party is leading in all regions in the presidential, parliamentary, senatorial and council elections. Final results are expected by Monday.

Zimbabwe recorded historic hyperinflationary rates between 2000 and 2008. Some economists said it was fueled by the invasion of white-owned commercial farms by Zanu PF activists, mismanagement of national resources by President Mugabe's government and related issues.

But Mr. Mugabe has over the years blamed the country’s economic problems on targeted sanctions imposed by the West and European Union following disputed elections in 2000.