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U.S. Business Says No Deal to Zimbabwe
Harare, Jun 14, 2009 (Zimbabwe Standard/All Africa Global Media via COMTEX) --
UNITED States companies said no investment would come to Zimbabwe in the absence of rule of law and respect for human rights in another blow for the country's reconstruction programme.
Stephen Hayes, Corporate Council on Africa (CCA) chief executive officer told business leaders in the capital on Thursday that despite the interest by US companies in the country there would be no stampede on investments in the meantime until drastic changes are made to ensure an investor-friendly environment.
"For US businesses to do business with any country we seek a nation that follows the rule of law, so that when we invest in a nation and in a company, we know that we will be justly and fairly dealt with," he said.
"We need to know that the judiciary is independent and that our course of law is clear and fair.
"If we know the laws, and we know the laws will be consistently and evenly enforced then we can do business with you."
Zimbabwe is in a reconstruction phase following the formation of the inclusive government in February between Zanu PF and the two MDC formations.
Under the Short Term Emergency Recovery Programme launched by the unity government in March, the country plans to increase capacity utilisation of industries to 60% by the end of the year with an injection of US$1 billion.
Hayes proposed changes "in the political and economic management of this great country, in particular in the area of rule of law and respect for human rights".
On the same day that Hayes was addressing business executives in the country, CCA was hosting a luncheon for Prime Minister Morgan Tsvangirai in Washington.
Tsvangirai addressed executives of US companies with investments in Africa.
Hayes invited Zimbabwe companies to participate at the 2009 CCA-US-Africa Business Summit, a premier economic private sector meeting held after every two years.
This year's edition will be in Washington from September 28 - October 2.
CCA is a not-for-profit organisation composed of about 180 corporations.
It also has trade organisations representing their interests such as the Africa Coalition for Trade representing more than 150 African companies doing business with the US.
Hayes said some US companies were already doing business in Zimbabwe, while others look on from the sidelines as interested parties.
"In both cases, however, we cannot expect that these companies will either enter Zimbabwe for the first time or expand their operations here until there are substantial changes in the way that business is done in your country," he said.
"Those businesses gathered in Washington also have no expectations of any change in US policy until change comes to Zimbabwe."
Investors are keen on putting their money on Zimbabwe but are waiting for the full implementation of the power-sharing deal signed in February.
Copyright Zimbabwe Standard. Distributed by AllAfrica Global Media (allAfrica.com).
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