Zim crisis could stray Moz investors

Thu, 17 Apr 2008

The political turmoil in Zimbabwe could affect the entry of foreign investors into Mozambique, Todd Chapman, the Charge de Affairs at the USA embassy in Maputo told reporters on Wednesday.

"This political situation in Zimbabwe could affect the entry of American companies coming to invest in Mozambique because of the geographical position of the two countries," said Chapman.

Investment by USA companies — valued at millions of dollars — was mainly in agriculture and natural resources projects in the central and northern parts of Mozambique.

Mozambique and Zimbabwe have one of the longest border lines in the southern African region.

"We are content that the Mozambican government has spoken on the issue and said the problems in Zimbabwe are hurting its economy," he said.

Last week, Mozambican deputy Foreign Affairs minister, Eduardo Koloma, was reported as saying the continued deterioration in the Zimbabwean economy caused by political instability was hurting Mozambique's fragile economy.

"The current situation in Zimbabwe is affecting the Mozambican economy as we are now getting reduced business moving to and from our ports through the road and railway lines that link that landlocked country to the sea," he said.

Zimbabwe is directly connected to the ports of Beira and Maputo by road and rail links.

"Our hope was that as the elections were held in a peaceful environment, both participants in the elections should resolve their differences immediately and start rebuilding the country's economy," said Koloma.

Chapman said he was not aware of any American owned companies relocating to Mozambique since the Zimbabwean turmoil started ten years ago.

He, however, said the US embassy had renewed its alert on its website informing Americans wishing to visit Zimbabwe on the continued political instability in that country.