 |
|
Mugabe has barred the UK, the US and the rest of the EU from monitoring the elections
|
March 25, 2008, 06:30
The United Kingdom government says even though they are not invited as observers to monitor the forthcoming Zimbabwean elections, they expect them to be free of rigging and its outcomes to reflect the will of the Zimbabwean people. Britain says the elections will be a test of whether the political engagements of the SADC leadership with President Robert Mugabe have been meaningful.
President Mugabe has barred the UK, the US and the rest of the European Union from coming into Zimbabwe to monitor the elections taking place in his country on Saturday. Mugabe has had an intensely cold relationship with the United Kingdom, accusing the former colonial power and the West of neo-colonialism and of pursuing regime change in his country.
The UK says it is engaged in dialogue with the political leadership of Southern Africa to ensure that the outcomes of the Zimbabwean elections represent the will of its people. Although not invited as observers for allegedly believing that free and fair elections can only be won by the opposition, the British government is upfront with its expectations. The super powers in the security council have long accused Zimbabwe of human rights violations and have been pushing the council to take action. But countries like South Africa have been resisting such attempts arguing that the issue should be handled by the UN's human rights council.
Some foreign investors gamble on Zimbabwe
Foreign investors prepared to brave Zimbabwe's political and economic volatility could win big if Saturday's election brings policy changes in the crisis-hit but resource-rich country. Despite an economic meltdown, surreal inflation and political uncertainty, some investors have cautiously positioned themselves for changes after a March 29 vote that is shaping up to be President Robert Mugabe's most serious test in 28 years.
Mugabe's two challengers - ex-ally Simba Makoni and long-time rival Morgan Tsvangirai - have placed the crippled economy at the centre of their campaigns. Zimbabwe's 13 million people are grappling with chronic food, fuel and foreign currency shortages. Some foreign investors have fled, but a few are seeing opportunities and signing preliminary deals in sectors like telecommunications, power and construction.
"Zimbabwean assets are cheap, which is why some investors who believe we are at the end of a cycle are taking a closer look," an equities researcher, who declined to be named, said. He said chances of a Mugabe loss were as high as they had ever been, but that even if the 84-year-old former guerrilla leader won, he might be forced into economic reforms. Chinese companies are among those exploring opportunities in Zimbabwe, once the breadbasket of southern Africa, which boasts rich deposits of gold, uranium, platinum and diamonds.
Chinese deputy Commerce Minister Gao Hucheng, who was in Harare last month on a trade mission, said Beijing had invested $1.6 billion in Zimbabwe in 2007, although analysts say Chinese investment has yet to really take off.
Nail in the coffin
In power since 1980, Mugabe says the economy has been sabotaged by Western states as punishment for his land reforms, which included confiscating farms from white farmers. Critics say these policies drove many foreign investors away. Mugabe has shrugged off criticism - especially from Western governments, donors and multilateral agencies that have withheld aid - and focused on attracting investment from China and Far Eastern countries.
The equities researcher said the Zimbabwe stock exchange's market capitalisation had fallen from $9.79 billion in 1997 to about $3 billion, showing its 80 stocks were heavily discounted in real terms. Some analysts say the bargains come with risks.
Investor sentiment was dealt another blow this month when Mugabe approved a law seeking to transfer control of all foreign-owned firms, including mines and banks, to black Zimbabweans. The foreign-dominated mining sector makes up more than a third of Zimbabwe's foreign currency inflows. Indigenisation and Empowerment Minister Paul Mangwana said afterwards that not all foreign firms would be localised under the new law, and that the government would not impose black partners on firms.
No one is packing up to leave just yet, with firms such as Rio Tinto, the world's largest platinum miner Anglo Platinum, and South Africa's Impala Platinum showing readiness to ride the latest storm. But some commentators say the damage has been done. - Reuters
|
