Zim Looks Into SA For Financial Rescue

bromance

Zimbabwe is looking into SA to help fund it through investments.

The Department of International Relations and Co-operation said President Robert Mugabe’s state visit would be to pursue mutual “bilateral and economic” interests. Reports Business Day.

Mugabe who is in South Africa is expected to sign a memorandum of understanding with President Jacob Zuma in union buildings today. Mugabe who is accompanied by his cabinets delegates and country’s business executives is expected to meet with SA- Zim business forum in hope of coming up with solutions to aid Zimbabwe’s struggling economy, that caused job loss, company closure and curtailed productivity.

“A significant number of companies are also failing to pay their staff on a regular basis, accumulating salary arrears. Foreign direct investment, which has a positive impact on market liquidity, remains subdued due to the perceived country risk,” the RBZ said in its report.

Economists and other sources in Zimbabwe told Business Report that during his visit, Mugabe and his delegation would seek to re-assure the South African government and business community that Harare was “open for business” and investment.

Apart from high-level talks with Zuma, Deputy President Cyril Ramaphosa will also pay a courtesy call on Mugabe.

Knowledgeable officials said Mugabe would be banking on Ramaphosa’s business links to send the message home that Zimbabwe was a safe investment destination.

However, the International Monetary Fund, fund managers and other experts say Zimbabwe should fix its regulatory and operating framework to attract fresh foreign capital.

“It’s a multi-purpose visit that we are hoping will set the ball rolling for various funding and investment decisions.

“Apart from the bilateral talks on regional co-operation and the signing of a memorandum of understanding, there is growing realisation that South Africa and its business community can aid Zimbabwe’s economic revival bid and that’s why the delegation includes business leaders and other government officials,” an official said yesterday.

Economist Jefferey Kasirori said investors wanted reassurance that their investments were safe in Zimbabwe.

Source: www.iol.co.za

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