Credible elections enhance better economic prospects

THE just ended harmonised elections are a harbinger to greater economic prospects for the country, economic analysts told Business Post.

Major investment projects were awaiting the completion of the electoral process to commence business and now that the elections are over, various projects are set to be implemented.

For the past month or so during the run up to the election day, the country was host to a wide variety of international observer missions coming from different countries which make up the markets brand Zimbabwe should be reaching out to going forward.

There is consensus within the business community that an endorsement of the elections from various economic bodies such as COMESA, SADC and EU which had their representatives observing the electoral processes in the country will be crucial for greater economic corporation.

Experts say legitimate governments have leverage on the negotiating table when negotiating trade deals. Disputed electoral processes in the past have been the major reason for poor country perception ratings over the years which has had a negative bearing on investor confidence.

Foreign direct investment has been dwindling to annual average lows of US$ 500 million for the past four years.

“Country perception is a critical indicator for any serious investor who wants to put their money in any country.

“Once there is a negative perception about a country then there is a problem within that market, and the investors are shy to invest,” economic competitiveness expert, Dr Gift Mugano told Post Business.

Since the new dispensation came into place following the resignation of former President Robert Mugabe, invest missions have been trickling into the country seeking various ways of corporation with investment pledges in excess of 15 billion for the next few years having been agreed upon.

Economic experts who spoke to Post Business believe much of these investments had been stalled by the just ended harmonized elections and will hence commence post election.

Securities and Exchange Commission of Zimbabwe (SECZ) chief executive Tafadzwa Chinhamo speaking at the event of the capital markets education campaign launch highlighted the importance of peace as a precursor to healthy stock markets.

“Stock markets are the easiest indicators to tell you if there is a problem in a market, they are sensitive to events that take place be it socially, economically, politically or religiously.

“When there is a minor problem the stocks will start to fall instantly and when there is a minor progress they quickly jump,” said Chinhamo.

Zimbabwe Retailers Association president Denford Mutashu said the peaceful nature during the election period is commendable for business.