WOR­RIES IN­VESTORS

Finweek English Edition - - IN THE NEWS -

In­vestors are wor­ried about the po­lit­i­cal un­cer­tainty oc­ca­sioned by the in­ternecine fights to suc­ceed Pres­i­dent Robert Mu­gabe, which are rock­ing his Zanu-PF party.

Mu­gabe has main­tained a stran­gle­hold at the helm of the party, which is dom­i­nated by two ri­val camps: one al­legedly headed by Vice Pres­i­dent Joice Mu­juru and the other by Emmerson Mnan­gagwa, the pow­er­ful jus­tice min­is­ter.

How­ever, the gloves have come off ahead of an elec­tive congress sched­uled for next month, with Mu­gabe’s wife, Grace, emerg­ing as a new force in the Mnan­gagwa fac­tion’s bid to el­bow out Mu­juru.

An­a­lysts in Zim­babwe say that in­vestors are watch­ing the po­lit­i­cal fights rock­ing Mu­gabe’s party keenly.

Mnan­gagwa is be­lieved to be a hard­liner keen to carry on with Mu­gabe’s stance on poli­cies, while Mu­juru, whose late hus­band was a re­tired gen­eral who com­manded re­spect within army and po­lit­i­cal ranks i n Zanu- PF, is con­sid­ered soft.

“I nvestors will keenly watch po­lit­i­cal de­vel­op­ments be­cause this has a bear­ing on fu­ture pol­icy po­si­tions. Mu­juru and Mnan­gagwa have dif f er­ent i de­olo­gies and ap­proaches to i ssues and who takes over will prob­a­bly de­ter­mine how i nvestors will be treated i n Zim­babwe,” said eco­nomic an­a­lyst Jo­hannes Kwangwari.

Mu­gabe’s wife has pub­licly at­tacked Mu­juru, ac­cus­ing her of cor­rup­tion and call­ing for her to step down. Mnan­gagwa, on the other hand, has re­mained silent although the state- con­trolled me­dia i s car­ry­ing dirty sto­ries about Mu­juru’s fac­tion, a sit­u­a­tion t hat an­a­lysts say i s meant to pres­sure Mu­juru to drop out of the race to take over from Mu­gabe.

The op­po­si­tion in Zim­babwe, led by Mor­gan Ts­van­gi­rai’s Move­ment for Demo­cratic Change (MDC), has failed to cap­i­talise on the po­lit­i­cal in­sta­bil­ity rock­ing Mu­gabe’s party. The MDC held its elec­tive congress at the week­end, where Ts­van­gi­rai, who ini­tially faced a re­volt from party in­sid­ers call­ing on him to step down, en­trenched his grip on power.

Takunda Mu­gaga, an economist at Econome­ter Global Cap­i­tal, said that in­vestors had now ac­cepted the hard re­al­ity of Zim­babwe’s i ndi­geni­sa­tion pol­icy and that their wor­ries had moved on from un­cer­tainty over the reg­u­la­tory a nd business cl i mate t o t h e po­lit­i­cal front.

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