Mugabe appeals for international investment in Zimbabwe

Jul 9, 2009, 15:18 GMT

Harare - President Robert Mugabe on Thursday appealed to international investors to come to Zimbabwe, saying laws limiting foreign ownership of businesses had not been understood.

'Foreign direct investment is most welcomed as it brings new technology, capital and new markets,' Mugabe told an investment conference in the capital Harare.

The two-day event is being attended by foreign fund managers, financiers, investors and entrepreneurs from many countries such as South Africa, Ukraine, Kuwait, Britain and the United States.

'Such policies as the indigenisation and economic empowerment act should not be viewed as obstacles to investment promotion. They should be welcomed as promotive of the greater participation of our people in the economy,' Mugabe said.

Zimbabwe, which is experiencing its worst economic turmoil ever, has been shunned by foreign investors who the cite unstable economic policies of Mugabe's government. Investors have been particularly skeptical of Harare's controversial land expropriation policy - that has already stripped white commercial farmers of land - and which the government said might be extended to mines and other businesses.

Mugabe's erstwhile political enemy, now Prime Minister Morgan Tsvangirai since the formation of a unity government in February, also attended the conference.

Mugabe said Zimbabwe's former colonial power Britain had the responsibility to compensate owners of land that has been seized for redistribution.

In reply to a question from Trevor Gifford, chairman the country's predominantly-white Commercial Farmers Union (CFU) Mugabe said: 'The responsibility of compensation rests on the shoulders of the British government and its allies,' he said.

'We pay compensation for developments and improvements. That's our obligation and we have honoured that. Above all Zimbabwe upholds the sanctity of property rights. Sure there must be some compensation. Let's join hands and appeal to the British.'

He added: 'The farmers have let themselves down. They have tended to side with the British.'

Gofford had asked when Harare would compensate farmers who lost their land to government under the controversial land reform programme.

Tsvangirai, meanwhile, said Harare would compensate farmers if the financial position of the troubled government improves.

Mugabe said that since February, conditions in Zimbabwe favoured investment.

'The formation of the inclusive government has strengthened our stable political environment, making us more conducive to investment promotion.