Indigenisation policy scares away Canadian investors

Published: 14 March 2014

CANADIAN Ambassador to Zimbabwe Lisa Stadelbauer has said investors from his country were a bit jittery over the current state of the investment climate in Zimbabwe.

Addressing legislators attending a two-day Zimbabwe Agenda for Sustainable Socio-Economic Transformation (ZimAsset) seminar in the capital on Wednesday, Stadelbauer said foreign investors were scared of the country's indigenisation policy.

"Canadian companies are concerned with the uncertain business environment in Zimbabwe," Stadelbauer said.

"They do not understand what is expected of them under the Indigenisation Act, and many are not willing to give up their controlling stake in their companies.

"They are concerned of what they see as unequal and inconsistency application of the law and they are concerned about the stability of the banking sector and they are concerned about corruption too."

She said Canadian companies were currently active in 36 sub-Saharan African countries with the largest concentration of assets worth $10 billion in eastern and southern Africa.

"I believe there is a lot Canadian companies can offer to Zimbabwe. Very little investment of the $10 billion is in Zimbabwe, other neighbouring countries to Zimbabwe are seen as more attractive investment destinations for Canadian companies," she said.

Stadelbauer said according to a recent international survey by a Canadian independent think-tank, the Fraser Institute, Zimbabwe was ranked as one of the least 10 desirable jurisdictions for mining companies in the world.

She said Zimbabwe was also ranked 106 out of 112 countries when it comes to policy attractiveness which includes the regulatory framework and number 85 when it comes to mining potential when policy attractiveness was excluded.
- newsday