Zimbabwe must make a good case to attract investment through the respect of human rights and legislating laws that boost investor confidence, new United States ambassador to Zimbabwe Pamela Tremont has said.
The call made yesterday comes as Zimbabwe has been hitting a brickwall in its bid to attract foreign investors to help rebuild the economy, battered by years of isolation and misgovernance.
President Emmerson Mnangagwa’s Zimbabwe is open for business mantra has attracted investors from China, amid claims the investors are violating the country’s labour laws.
Speaking at her first Press conference yesterday since landing in Zimbabwe two weeks ago, Tremont said even if her government was to encourage American businesses to invest in Zimbabwe, nothing would materialise without the effort of the government.
The diplomat said when she met Mnangagwa on Wednesday, she “offered to collaborate on improving the investment climate in Zimbabwe to expand economic opportunities for people and communities, forge stronger business linkages and attract investors to look closely at Zimbabwe’s educated labour force and long-term growth potential”.
“But I can’t do this alone. The government and people of Zimbabwe need to share their story that Zimbabwe is a good business partner that combats corruption, provides certainty in regulatory, monetary and tax policy and enjoys unbiased rule of law,” Tremont said.
Government has accused the US of stagnating the country’s economic growth through punitive economic sanctions.
Tremont, however, said the country was not under sanctions, save for a few individuals, hinting that Zimbabwe only had to improve her business environment to encourage big companies like PayPal to come back into the market.
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The US in March designated 11 individuals and three entities, including Mnangagwa and First Lady Auxillia, under the Global Magnitsky sanctions programmes for their connection to corruption or serious human rights abuses.
“Broad-based economic development is impossible without strong democratic institutions, good public health and regional security. The US supports these things because they are critical elements for Zimbabweans to chart their own future,” Tremont said.
Business has raised concern about currency problems and policy uncertainty, which they say have made it impossible for long-term planning.
Diplomats in the US said there have been attempts by government to get companies that exited the country to come back. However, they have resisted the overture over currency problems.
Tremont said she would pursue democracy and transparency as part of her mission in the country.
“As ambassador, I will work with civil society, government, business and local communities to encourage transparent democratic institutions that respect the will of the people and create broad-based economic growth,” she said.
“We will pressure these mutual interests while respecting the sovereignty of Zimbabwe, so that they can realise a better future for themselves.”
The US will also avail US$62 million to help Zimbabwe fight the El Nino-induced drought, she said.
“Since independence, the US government has provided Zimbabwe with US$5 billion in development assistance to the Zimbabwean people, US$1 billion in the last three years. That is extraordinary. El Niño and drought have made farming harder this year. That is why today, I am pleased to announce to you that in 2024, the people of the US will give US$62 million to the people of Zimbabwe to counter the effects of El Niño.”
Tremont has previously served in Zambia and Mauritius.
