Business welcomes Constitutional Court ruling PDF Print E-mail Wednesday, 05 June 2013 00:00 View Comments [Mr Oswell Binha] Mr Oswell Binha Lloyd Gumbo Herald Reporter BUSINESS has hailed the Constitutional Court ruling that elections be held by July 31 this year, saying this was bound to bring stability in the business sector that had been hamstrung by uncertainty overpoll dates. Finance Minister Tendai Biti recently implored President Mugabe to proclaim election dates, saying continued uncertainty over when polls would be held was negatively affecting the economy. Addressing the media on the state of the economy last week, Minister Biti said most businesses had adopted a wait-and-see attitude due to uncertainty over election dates. The Constitutional Court ruled with a huge majority of seven judges assenting to two dissenting that election dates should be proclaimed and harmonised elections held by July 31 this year. In separate interviews yesterday, captains of industry said the ruling by the highest court in the land had brought certainty that was required for business to blossom. “What we can say is that the elections should happen in order to get rid of the wait-and-see overhang that has affected investment,” said Zimbabwe National Chamber of Commerce president Mr Oswell Binha. “We expect this process to proceed to deal with electioneering uncertainty. I am sure all stakeholders want finalisation of this monster. We cannot be a nation of elections and electioneering year in year out.” Read More . . . * Constitutional Court correct - Madhuku * Parties hail judgment * I’ll comply with ruling: President * Poll date judgment today Mr Binha said the environment was conducive for the polls, adding that economic growth had slowed down between 2011 and 2012 as a result of policy inconsistencies and political uncertainty. He said the subdued growth reflected challenges facing the economy due to, among other things, limited credit and high cost of capital, inconsistencies and political competition, among others. “I am sure you will agree with me there is some level of stability and peace. Political protagonists have played a crucial role in preaching peace and we expect that their constituencies will follow through with practising it. As business, peace is a major consideration and any semblance of destabilisation will militate against the ability of the country to attract the much-needed foreign money necessary for growth and development. “Political competition has also been a major downside factor in the country’s economic revival. Uncertainties in the Government have had a negative impact on economic developments. Policy contradictions are making it difficult for the country to attract investment and credit lines which are critical to fund the industry and much-needed infrastructural projects. This has also increased the country risk and the cost of doing business,” said Mr Binha. He said though having elections did not guarantee speedy economic recovery, the manner in which the polls will be held and the environment after the polls coupled with post-election economic policy reforms would determine the future for the country. Confederation of Zimbabwe Industries president Mr Kumbirai Katsande welcomed the ruling, saying business had been affected by uncertainty surrounding elections. “There is no doubt that for business to thrive, it requires an environment that has certainty because obviously people want to know what is happening and what will happen,” he said. “The Constitutional Court’s ruling is part of the story that will bring this certainty. It is, however, not yet time to pop champagne because we are still on the journey to the elections. “It is after the elections that we will be able to make an assessment of what would have transpired before, during and after the elections. “It is good that we now have guidelines of when elections are going to be held but what we are hoping for is that elections should come and be peaceful, before, during and after. “Obviously people want to know when elections are going to be held but we hope we will have credible elections. It is everyone’s duty to ensure that we have peaceful elections,” Mr Katsande said. He said business wanted policies that were investor friendly but founded on manufacturing and value addition. Zimbabwe Economic Empowerment Council secretary general Mr Tendai Mautsi said the wait and see attitude that businesses had adopted was hampering growth. “Now that the guidelines are there people can actually start planning in accordance with the dates ordered by the Constitutional Court which the President has pledged to comply with. “The outlook is going to be different in a positive manner as businesses know the dates,” Mr Mautsi said. Economist, Mr Jonathan Kadzura concurred that elections uncertainty had affected economic growth. “Now that we have the dates, there is going to be a new level of stability in so far as planning is concerned. However, new investments or expansion will until after the general elections be very little. “Investors will only come in significantly after the general elections when they are sure that the Zanu-PF party is forming a new Government that will ensure that there are policy alignments while at the same time the party manifesto when it comes will indicate the direction the country is going. “Once the manifesto is out, investors will study it and find their own space in the new environment that the Zanu-PF Government will establish. Uncertainty of election dates was indeed affecting the economy,” he said. Economist and former Finance Minister Chris Kuruneri said the adoption of a new constitution was expected to create a new perception about the country which would translate more economic activity. “The fact that we now have a new Constitution is a positive development for the economy because countries that have been hesitant to engage us can see that we are committed to democratization. “The new Constitution will allow some inflows of resources from people who have been doubtful about our commitment to democratize,” said Dr Kuruneri. Some of the 28 political parties active in the country and eyeing the harmonised elections have welcomed the Constitutional Court ruling that elections be held by July 31 saying they were raring to go to the polls.
Posted on: Wed, 05 Jun 2013 07:24:32 +0000
Trending Topics
Recently Viewed Topics
© 2015