HARARE- In a panel discussion focusing on inclusive and sustainable development which included Rwanda as a model country, panelists took note of Zimbabwe and some of its policies that have derailed development and spooked investors.
The highly powered panel was moderated by Rockefeller Foundation President Rajiv Shah, his foundation manages $4 billion in investment assets across the world. Rwandan President Paul Kagame, whose country was the model for a successful developing economy nurturing sustainable and inclusive development, was also on the panel.
Rwanda was roundly praised for its economic turnaround over the past decade and particularly for the sustainable development through healthcare and infrastructure.
Other panelists included Christine Largade who is the Managing Director of the IMF, the world’s highly regarded multilateral financier, Asfaneh Beschloss, founder and CEO of top US asset management firm Rock Creek. Her firm manages $14 billion in assets invested across different sectors and economies around the world.
U2’s Bono, pop start turned venture capitalist and Rise Fund founder McGlashan completed the set.
While stressing a point on governance and the cost of doing business, and the hindrance that government self imposes on their economies, Asfaneh Beschloss, highlighted that in order for economies to attract capital, capital markets must become more efficient as highways to investments. She charged that only governments with the assistance of IFIs are responsible of this objective.
Mrs Beschloss singled out Zimbabwe as a worst case scenario, noting that the costs of transacting was too high at 4% per share or value of transaction on Zimbabwe’s capital markets which makes it difficult for any investor to generate sufficient return to make a reasonable return on capital.
Rajiv quipped saying Zimbabwe was also an example of other problems, which Mrs Beschloss supported, possibly referring to worsening autocracy experienced under the Mnangagwa government a dampener to international capital soliciting efforts.
These remarks by key global capital market players may be a reflection of what most of the international players perceive Zimbabwe to be, a worsening poorly governed economy that is not worth considering and worth avoiding at this particular moment.
Government may have to reconsider some of its policies or at least try to widen its engagement net before formulation of key policies if it is serious about turning around the economy.
– Equity Axis News