By Fred Muchaiwa| Zimbabwe is dangerously going backwards fast like a car moving in reverse gear. Imagine how dangerous it is driving fast in reverse gear at -20km/hr with your head sticking out of the window for navigation. Yes, the speed is minus 20km/hr because the car is in reverse gear so is Zimbabwe’s economy.
It’s not even rocket science to figure out how Zimbabwe is in this mess. We have a government which goes on a spending spree like there is no tomorrow. If the millions that have been spent since November 2017 were aimed at government projects that would have had a positive impact on economic growth through employment creation, public spending and tax revenue. But that’s not the case, it’s reckless spending on luxury and funfair at the expense of debilitating public service delivery. According to the weekly business publication of The Zimbabwe Independent, the new dispensation spent $225 million during the first quarter of 2018 indicating a serious fiscal indiscipline.
Everything in Zimbabwe is negative and in negative mode including the leadership itself. I remember in primary school that 1-2 was impossible and we said ‘it cant’. But with new algorithms (1-2=-1). After a disputed election as a result of a stolen vote, now the economy is saying no, it can’t. There is no prosperity after stealing an election because no one wants to do business with a thief. Investors are not stupid after all and it’s simple to decide who they want to do business with and where?
It is a simple logic for an investor to make a decision on where he or she wants to invest taking into account political, economical, social and technological factors. Two critical factors that clearly define a business problem or opportunity are politics and economics.
Politically, Zimbabwe is tainted by the fact that the Presidency was awarded in by a constitutional court administered by a judge very close to the incumbent. Prior to this, the election was marred by rampant fraud hence disputed. A disputed election coupled with violence (shootings of August 1) is a cocktail for disaster and wrong formula to attract FDI for a country that depends on donor funding. Is that too complicated to comprehend? Stealing is never a good thing and never support a thief. Stealing must be condemned in strongest terms and by multitudes of voices. Under normal circumstances where the law is respected, if you help a thief you become an accomplice and subsequently charged for collaborating with a thief.
When you steal you cannot go back to the victim and say let’s share the loot that initially and legally belongs to the victim. Why are you no longer enjoying the loot alone? You are now haunted by the spirit of the crying victim, life is getting tougher by the day, the world you pleaded and begged for help seem reluctant disapproving, condemning and further isolating you because of your actions. That scenario alone from 2018 elections depicts Zimbabwe as a no go place for investment which is sensible from an investor’s point of view.
Economically, Zimbabwe’s budget deficit stands at around $5 billion, which is a negative balance showing an economy in reverse gear. Let’s put it this way to allow every Jack, Jill and Dambudzo to understand. You are borrowing $100.00 from a friend who lives in another city and the friend says yes, “please send me your account details for an immediate transfer”. Your account has a debit balance $120.00, -$120.00, in reverse gear. What’s going to happen if you allow your friend to transfer the money into your account? Investors put their money where their mouths are. Zimbabwe is the riskiest place to invest to date in every aspect of business.
The president is travelling all over the world negotiating re-engagement by world financial institutions like World Bank and IMF. What has he done to promote re-engagement? Re-engagement is facilitated by correcting the ills and wrongs that caused isolation in the first place. Now, my question is? Does this so called new dispensation know the ills and wrongs that caused Zimbabwe to be isolated? The answer is an absolute no. Zimbabwe is not yet open for business.
Our house is not yet open for visitors because it is yet to open for its own people. We are a country that has no respect for its citizens of all races, creed and age. Open Zimbabwe for your own people first before inviting visitors. Respect your own people first before you pledge to respect visitors. Never ever steal from your own and expect outsiders to accept your leadership. This is what is making Zimbabwe sick today. Zimbabwe is suffering from “Legitimacy deficiency due to chronic electoral theft” since Mugabe era and again during this new dispensation.
There is a remedy for this ailment. There has to be a radical shift of mindset by ZANU PF politicians in the way they view and conduct politics in the country. There is urgent need to shift from the culture of self serving in politics to politics of serving the people because Zimbabwe belongs to the people regardless of political affiliation, race or colour. The “Chinhu chedu” mentality is selfish, destructive and counter productive.