This comes as political uncertainty, mainly as a result of ambiguity on the inclusive government’s lifespan and President Robert Mugabe’s persistent calls for early elections, has been cited as the main reason why international investors are in waiting mode on Zimbabwe.

Local business people have been complaining about the way the GNU is being run saying they needed capital but investors were waiting on Zimbabwe’s political fate to release their funds.

“The Government of National Unity (GNU) cannot be extended because it will be undemocratic…extending the GNU, no I don’t think so because that is not possible. 

“This will be undemocratic because we have to do that between political parties that are in the GNU only,” he said responding to business executives’ questions attending KM Financial Solution’s CEO roundtable in Victoria Falls on Saturday.

“At the same time, we will be denying Zimbabweans an opportunity to decide their destiny,” Tsvangirai added.

The business executives, who were discussing imperatives on the country’s targets to achieve a $100 billion economy by 2040, had suggested formal extension of the inclusive government to stabilise the local market.  

The Premier said the three parties in government, Zanu PF and the two MDC formations had agreed on a roadmap to free and fair elections to restore confidence in the economy.

“The GNU cannot promise anything here because of the nature of our politics but we are creating a roadmap that will help us have a definitive roadmap to the next election.”

Tsvangirai said the roadmap requires the country to complete constitutional reforms and other Sadc requirements before elections are held.

Deputy Prime Minister Author Mutambara said lack of a termination clause in Zimbabwe’s GPA is slowing down investment.

The GPA gave birth to the country’s inclusive government in 2009 between Mugabe’s Zanu PF and two MDC formations led by Prime Minister Morgan Tsvangirai and Mutambara after disputed elections in March 2008.

Mugabe has frequently called for early polls, but his counterparts insist on elections only after tangible reforms.

“It creates instability because investors will say I will put my money after elections or when someone else is in power. As politicians, we want to say let’s go for elections today so that we feel good, but this creates uncertainty because elections could be tomorrow or any time,” he said, adding investors were more comfortable in a predictable environment.

Mutambara said the inclusive government should have been given a specific life time to avoid political and economic uncertainty.

“We have been in election mode for the past two years. We should have said we will collapse it in two years, in one year nine months we work and the last three months we fight (but) in the GPA that I was also part of.”

Zimbabwe is failing to secure foreign direct investment as a result of low investor confidence.

Although the Zimbabwean economy has recovered from a decade-long stagnation, investors — who say the country has no rule of law and lacks property rights — are still worried of losing their fortunes.

Currently, foreign- owned companies in Zimbabwe are required to cede at least 51 percent of their shareholding to Zimbabwean locals under the Indigenisation Act.

The move has sparked fears of expropriation among foreign- owned companies.

The inclusive government has also been divided on the empowerment law, resulting in further confusion on the market.

Mutambara said there should be policy consistency to avoid confusion.

“A bad policy is better than policy inconsistency,” he said.

Last week, Tsvangirai also said the discord in government over policies was worrying and deterring progress.

“This confusion is worrying surely, you can’t have discord in the same government,” he told a government works programme conference.

By Daily News