Mugabe worries scare off SA’s investors

A visiting delegation from the European Parliament said on Thursday that it was particularly concerned about developments in Zimbabwe and the effect these had had on investor confidence in South Africa, SAPA has reported. Speaking in Cape Town after talks with Finance Minister Trevor Manuel and with parliament’s presiding officers, delegation leader Miet Smet said South Africa had a very important part to play in the region.

“The European Parliament is particularly concerned about developments in Zimbabwe. It supports South Africa’s efforts, together with Zimbabwe itself, to find a solution to the conflicts, which could influence the economic attractiveness of the whole region. Any further deterioration in the situation in Zimbabwe will lead to more and more illegal immigration into South Africa and aggravate the unemployment problem,” Smet was quoted as saying.

The instability in Zimbabwe was also a factor “in the will to invest in South Africa”, Smet said, adding that European perceptions about Zimbabwe were “not very positive”. “This, of course, is not good if you (South Africa) want to attract people from Europe,” she said.

On how the European Parliament would help South Africa avoid Zimbabwe-style land grabs, European Commission (EC) official Dominique Dellicour said the European Union had provided US $10 million for land reform in South Africa. “We are trying to support the government in its overall reform strategy, including land restitution to victims of forced removals, land tenure reform and improving the security of labour tenants on commercial farms,” she said, adding that the EU was also assisting a land reform credit scheme, which tried to support joint ventures between previously disadvantaged farmers and their commercial counterparts. “Compared to Zimbabwe there is a much more proactive approach here in South Africa,” she was quoted as saying.