July 30 elections have passed but squabbles just like the 2008 and the 2013 post-election have erupted. The Movement for Democratic Change Alliance (MDC A) leader claims elections have been rigged and has filed a court case against Zimbabwe Electoral Commission’s (ZEC) decision of declaring the current President Emmerson Mnangagwa the winner in this year’s elections. Such post elections developments have resulted in a stagnation to the economic developments of Zimbabwe. Foreign investors’ wait and see approach comes at play when elections are being disputed, diplomats and the business world now take the same approach, policies and bills cannot be debated to become laws and more focus is now turned on politics abandoning the economy. Economically Zimbabwe is now at stagnation.
Foreign investors have been waiting to see how elections and the aftermath of elections will be like before they invest in Zimbabwe. With the country’s political developments becoming more unclear, the investors hesitate to invest in the country hence they again wait and see the next steps in Zimbabwe. Fears of investing in Zimbabwe are also being aroused by the post-election violence that took place on 1 August. Violence brings in the issue of investment safety in the country and hence violence scare away possible investors into the country. The wait and see approach has brought in stagnation to Zimbabwe in terms of investment.
Before elections some of the bills had not been signed into laws and some policies are yet to be implemented. The Companies and Other Entities Bill, which makes the registration of companies become easier had not been signed into law and the Money Laundering and Proceeds of Crime Bill, which is also meant to deal with illegal foreign dealers was passed in the National Assembly is also likely to be adopted into law in the next government yet to be in place. The implication of this is that nothing will change in the registration of companies. The stagnancy in the signing of Money Laundering and Proceeds of Crime Bill into law also implies that the country shall continue to losing money to illegal activities.
No solution is likely to be given currently to the economic hardships Zimbabwe is facing. The country is facing challenges of foreign currency and cash shortages. When elections are being disputed as what is happening at present, politicians normally priorities political decisions abandoning the economy. The current President had promised that the government will announce comprehensive strategies to conclusively alleviate the cash and foreign currency problems. Major decisions to end the financial problems will be determined by the outcome of the election squabbles in the country.
The United States of America (USA) signed in fresh economic sanctions for Zimbabwe. Such a development is likely to haunt the Southern African country’s economic developments. There is need to deal with the issue of sanctions that are targeting Zimbabwe and this urgent need will be done again after an end to the court case against elections.
In a summary, major economic activities are on hold and will likely be done after the election saga is ended. Foreign investors are waiting to see what happens, bills will be signed by the next government to be announced and any attempt to solve the economic problems will be after the end of election squabbles hence a stagnation in the economic progress of Zimbabwe.