Mutumwa Mawere and SMM Case a perfect opportunity to encourage Zimbabwe Investment

Mutumwa Mawere and SMM Case a perfect opportunity to encourage Zimbabwe Investment

Whilst the media continues to feast on the SMM and Mr Mutumwa Mawere saga it appears the whole nation is now too heavily invested in blame apportioning whilst missing a clear and perfect opportunity to show the whole world that Zimbabwe welcomes investors and the environment is changing for the better.

The way forward really is for Mr Mutumwa Mawere to be given back his business empire or whatever remains of it since its widely reported that the empire is now in ruins. This case presents an opportunity to send a clear message to investors and the international community that Zimbabwe has rule of law and investors are secure.

The economic empowerment and indigenization message will seem like a mere political slogan and empty ploy if the Mutumwa Mawere and SMM case is left to keep dragging on and on without any end in sight .Mr Mawere is an experienced business person whose skills ,contacts ,network and experience are desperately needed as Zimbabwe embarks on the economic empowerment and indigenization revolution.

When such sagas unfold normally the key participants feel the need to accuse and counter accuse but no-one really benefits from counter accusations flying all over the Media. This matter has been well documented and its never short of new twists and new revelations.

However there has been a dramatic loss of jobs reportedly around 19,000 jobs were lost in the whole Mawere specification, SMM reconstruction and Mutumwa Mawere de-specification drama. Is it not time that a new leaf be turned in the Saga and let Mr Mawere focus on rebuilding his business and create jobs?

It is imperative to note that job creation must be central to poverty alleviation in Zimbabwe. Jobs are created under a certain secure investment environment. Zimbabwe’s decline over the last decade has been blamed on politicians and politics. There hasn’t been a clear effort to seek to properly avoid the blame game which is counter production and only serves to increase tension whilst leading to a deteriorating investment climate.

As Zimbabwean we have to commit ourselves to economic freedom in our lifetime. This economic freedom can only be brought by a broad based economic empowerment revolution led by such experienced individuals like Mr Mutumwa Mawere.

In 1995, he founded Africa Resources Limited (ARL), an investment holding company incorporated under the laws of the British Virgin Island, before moving to South Africa. In August 1995, he approached T & N Plc the UK domiciled parent company of Shabanie & Mashaba Mines Private Limited (SMM) with a proposal to acquire the company's Zimbabwean subsidiaries i.e. the asbestos mines, two Zimbabwean industrial companies and a Zambian manufacturing company. Negotiations began in September 1995.
In November 1995, he formed a partnership with Investec Bank Limited, a South African investment bank, to structure and mobilize financing for a mining private equity fund.

While working on the private equity fund, he continued his negotiations with T & N that culminated in an agreement in March 1996 pursuant to which ARL, a company in which he is the sole shareholder, acquired the remaining mining and industrial assets of T & N in Zimbabwe and Zambia.

Since the acquisition of T & N's two UK based companies that were the sole beneficial owners of the Zimbabwean and Zambian companies, the ARL group of companies grew organically and through acquisitions to become one of the largest and diversified black controlled conglomerates with operations in South Africa, UK, Zambia, Namibia, and Malawi employing about 20,000 people and generating a turnover of about US$400 million.

The current calls by the Government of Zimbabwe to encourage investment ,broad based economic empowerment and indigenization must be complimented by visible positive steps such as resolving the Mawere and SMM for the benefit of the country and hopefully the 19,000 jobs can be re-created in the medium to long term.

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This article was prepared exclusively for 3MG MEDIA by GMRI Capital a Division of the ENG Capital Group.
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