Zimbabwe Is Losing Billions of Dollars Says Biti

Zimbabwe Is Losing Billions of Dollars Says Biti
Published: 16 April 2012 (17919 Views)
ZIMBABWE is losing billions of dollars through investment agreements with foreign investors because it does not have a pool of competent people to assist in negotiations, Finance Minister Tendai Biti has said.

Presenting a lecture to students at the University of Zimbabwe last Friday, Minister Biti said Government lacked a vibrant legal team that should negotiate and draft contracts with foreign investors.

He was presenting a lecture on "International Debt Management: The Case of Zimbabwe".

"Most Governments have a desk of lawyers that do the drafting and negotiating of investment deals.

"In Zimbabwe we do not have that desk. Theoretically, we have the Attorney-General's Office," he said.

Minister Biti said the AG's Office had officers who left school about three years ago, hence their inability to handle such important issues of national interest.

He said Zimbabwe lost a substantial amount of money when Government gave away a piece of land in Selous stretching over 110km for US$200 million.

Minister Biti said the land in question had 26 million ounces of platinum valued at US$56 billion.

He said Government should have negotiated for an investment contract based on the value of that land.

In that case, Minister Biti said, the investor should have released at least US$20 billion as part of fulfilling their part of the investment deal.

The Government, he said, denied itself an opportunity of making money through contracts signed with diamond companies in Chiadzwa.

He described some of the contracts as "disastrous".

Minister Biti said the Government agreed to part away with vast tracts of diamond land for US$5 million.

He said the backbone of Zimbabwe's economy was its land, but it was not bankable.

"I don't often agree with Zanu-PF, but one issue that I agree with them is when they say land is the economy and the economy is land,"

"It is unfortunate that the 15 million hectares of land that were acquired during the land reform programme had no exchange component, otherwise it is dead capital."

On Zimbabwe's international debt, he said the Government had come up with various mechanisms to deal with it.

He said efforts were underway to re-engage with multi lateral institutions such as the International Monetary Fund and the World Bank.

On illegal sanctions imposed on Zimbabwe, Minister Biti said it was a political issue that was also being addressed at political level. He said Zimbabwe has great potential if it manages to deal with its debt question.

"People know the damage of Zimbabwe dealing with the debt question. This country has great potential and we can have an electric rail linking Harare and Bulawayo," he said.

On the debt question, Acting UZ vice chancellor Dr Takaruza Munyanyiwa said in 1996, the United Nations through the IMF and World Bank introduced the Highly Indebted Poor Countries initiative to ensure that no poor country faced a debt burden beyond its capacity.

He said the initiative was premised on certain conditions that were too strict for the developing nations.

In that regard, Dr Munyanyiwa called for an all-inclusive strategy to deal with the debt question.

"Honourable Minister, allow me to suggest that an all-inclusive strategy, which includes creating a fair and democratic international trading system and strengthening South-South co-operation, should be promoted in order to deal with debt problems for developing countries," he said.

- TH

Tags: Biti,
 0

You May Like These Videos

Comments

There are no comments.

Latest stories

Knox Mutizwa wins August Goal of the Month award

by kickoff | 05 November 2018 | 839 Views

BREAKING: Gandawa on the run

by Staff reporter | 05 November 2018 | 1615 Views

Econet cannot distribute Kwese TV content to Zimbabwean viewers

by Staff reporter | 05 November 2018 | 1231 Views

Shoot-out robbers arrested

by Staff reporter | 05 November 2018 | 1272 Views

Mnangagwa ally warns economic saboteurs

by Staff reporter | 05 November 2018 | 1227 Views

Chamisa mobilises supporters for mass protests

by Staff reporter | 05 November 2018 | 1015 Views

LISTEN: Acie Lumumba speaks on how he got paid

by Staff Reporter | 05 November 2018 | 837 Views

Dzamara speak on Zanu-PF fights

by Mandla Ndlovu | 05 November 2018 | 807 Views

Minister Raj Modi Modi donates salary

by Mandla Ndlovu | 05 November 2018 | 682 Views

'I am a Trillionaire' Magaya says

by Mandla Ndlovu | 05 November 2018 | 1083 Views

Supermarkets to be blacklisted over cooking oil

by Mandla Ndlovu | 05 November 2018 | 694 Views

UK army to recruit from Commonwealth

by BBC | 05 November 2018 | 741 Views

Magaya opens up on arrest

by Mandla Ndlovu | 05 November 2018 | 737 Views

Kambarami is still 'Deputy Mayor'

by Mandla Ndlovu | 05 November 2018 | 597 Views

'Import ban must not go beyond December 21'

by Staff reporter | 05 November 2018 | 688 Views

Prophet Magaya puts fresh spin to arrest

by Staff reporter | 05 November 2018 | 692 Views

Chamisa's sign language interpreters get thumps up

by Staff reporter | 05 November 2018 | 681 Views

Mnangagwa to review Mthuli Ncube's 2% tax again

by Staff reporter | 05 November 2018 | 652 Views

Lumumba to be probed by ZAAC?

by Staff reporter | 05 November 2018 | 482 Views

Dzamara speak on ZANU PF fights

by Mandla Ndlovu | 05 November 2018 | 443 Views

Zimbabwe as a new gateway into Africa

by Minister of Finance Prof Mthuli Ncube | 05 November 2018 | 660 Views

Chiwenga's ex-wife looted millions

by Mandla Ndlovu | 05 November 2018 | 1039 Views

We are our own worst enemies

by Mapozho Saruchera | 05 November 2018 | 716 Views

Mnangagwa to deal with unexplained wealth and bank deposits

by Staff reporter | 05 November 2018 | 671 Views

WATCH: Chiwenga talks about Prophet Walter Magaya's lipstick

by Staff reporter | 05 November 2018 | 661 Views

Lumumba Saga takes new twist....War vets bay for Mutsvangwa's blood

by Mandla Ndlovu | 05 November 2018 | 733 Views

Chamisa demands Presidency

by Mandla Ndlovu | 05 November 2018 | 623 Views

Zimbabwean teachers miss out on New Zealand opportunity

by Staff Writer | 05 November 2018 | 564 Views

Zimbabwe to introduce e-provisional driver's exams

by Staff reporter | 05 November 2018 | 611 Views

Zimbabwe to supply water to South Africa

by Staff reporter | 05 November 2018 | 608 Views

Mnangagwa claims that 'good times will soon roll'

by Staff reporter | 05 November 2018 | 578 Views

Zimbabwe as a new gateway into Africa

by Hon. Prof Mthuli Ncube | 05 November 2018 | 661 Views

Chiyangwa appoint Karikoga Kaseke

by Staff reporter | 05 November 2018 | 578 Views

ZCTU demo: Ruling today

by Staff reporter | 05 November 2018 | 530 Views

Missing cop found dead

by Staff reporter | 05 November 2018 | 657 Views

Tagwirei marries long-time girlfriend

by Staff reporter | 05 November 2018 | 1014 Views

Zimbabwe relaxes maternity leave entitlement

by Staff reporter | 05 November 2018 | 620 Views

Zimbabwe to receive drugs, ambulances from India

by Staff reporter | 05 November 2018 | 542 Views