, Interview with Anthony M. Hawkins
Dept. of Business
University of Zimbabwe
Moutt Pleasant, Harare ZIMBABWE
To date there have been three large meetings of business concerns to
discuss foreign investment in Zimbabwe. Business International met in
Zimbabwe in Marhh; African Economic Development held a conference in
Axa London; and a conference was held in New York in April. he major
problem with all of the pbulicity surrounding the potential of Zimbabwe
as a magnet for foreign investment is that the place has been oversold.
There is a crisis of expectations such that when foreign investment does
not simply food the country people see a crisis. To date, two majoa Djl
foreign investments have taken place: the fi:s'st by SQCNIA which ma4- Scua
ulactures trucks and the second by Heinz which will grow and process m
The major constrain on foreign investment is not the potential
of the country, but the uncertainty which business men see in the use
of the term socialism by the Prime MiniStbr. No one knows just what
Mugabe means when he says he is a soCialt.t.
In The potential of the country remains strongL
n 1980, the country grew at an average 11.35%; in 1981 at 8-9%; and
in 1982 at a rate of between 1 and 2%. The dramatic drop in 1982 was
due to a massive drought and a severe international recession.
FEARS' the major fear is the expectation the whites have about the future.
Those employed in the public sector see no future for their advancement
and are quite willing to take their skills elsewhere. The second major
fear is about the education of children.
Civil Service: appointments are made on academic qualifications which ha,
,* been gathered in stead of experience.
RPA Free trade agreement- crucial to Zimbabwe. It covers about 80%
of all goods that Zimbabwe exports to its largest trading partner.
while covering only about %5% of RSA exports to Zimbabwe. The importance
of the agreement to the %ea is purely political.
TRANSBORT: Fantastic improvement in transport in the last few months.
RSA did not renew agreemtn for locomotives with NRZ, but did with Zambia,
Botswana and Mozambique, all three of which uses these locs to carry
goods through Zimbabwe. This was a great help.
Mineral Marketing Board: All minerals except those specifically
exempted will be marketed through this hoard. The director will be the
same chap who ran the mineral marketing sanctions busting firm under
Smith, so it shejL be efficient.
GOVT POLICY PROBLEMS: first is the anti-RSA rhetoric and second is the
rhetoric about wicked western capitalism and bad multinationals and
foreign investment. This does little to attractKthose who are being
Refinery: big capacity for oil from Iran, which is no longer the supplier.