Madzingira Success of Homelink tour must be built on
By J. Madzingira

The Homelink promotion in the Diaspora was a success, if interest generated is used as the main yardstick. Zimbabweans in all three countries that were visited readily accepted this new mode of transferring money.

Some went beyond this and proposed a more comprehensive involvement in Zimbabwe’s economy.

The success of this initial stage of the project provides a good foundation to build on. The Homelink project is not a one-off event. It needs to be sustained. To cement the project, money transfer agencies need to be monitored to ensure they deliver satisfactory service in matters of speed, reliability and the disbursing of funds in the currency of the recipient’s or sender’s choice.

The visit to the United States, the United Kingdom and South Africa made it clear that Zimbabweans living there are looking for greener pastures but remain patriotic Zimbabweans ready to contribute to the development of their homeland.

The clamouring for investment opportunities by those in the Diaspora should lead to the creation of foreign currency denominated financial investment units which offer returns above the interest rates offered in the countries in which they are based. The inflows generated should be invested in foreign currency generating projects to facilitate the payment of returns to investors based abroad.

From the very first meeting in Dallas on May 26, the team found enthusiasm for the new money transfer agencies. This initial meeting, which was organised at short notice, was a small one. However, the roughly 30 people who attended it were enthusiastic about the new money transfer arrangements.

Six or so Movement for Democratic Change members and supporters displayed protest posters during the event. However, that did not dampen the enthusiasm of the other people attending the meeting.

In Atlanta the team’s visit coincided with ZimEpo, an annual business showcase for Zimbabweans based in America. The ZimExpo theme, ‘Giving Back To My Community’, merged well with the objectives of Homelink.

Here too the Homelink concept earned ready acceptance and support. There were also enquiries about investment possibilities. There were no protests in Atlanta, contrary to predictions from some quarters.

Harvey Jakachira,. of Savanna Global Capital, proposed the linking of Homelink to investments on the Zimbabwe Stock Exchange. He encouraged listeners to invest in Savanna Global Capital Investment, through which shares could be bought in both Zimbabwean and United States companies.

The interest in the Reserve Bank team’s mission was further highlighted by invitations to the Reserve Bank to become part of the formal structures of ZimExpo.

Various investment projects were mooted in Atlanta that have the potential to generate export revenue and ease commodity shortages. One example of this was a computer assembly project that one Zimbabwean business wants to establish.

After the expo part of the team travelled to the United Kingdom, while other members of the team moved to Philadelphia. One of the highlights of the Philadelphia visit was a meeting with an international group which promised to scout around for financing for projects in Zimbabwe as soon as the Reserve Bank submitted a list of projects that needed such funding.

A was meeting was held with the Global Interdependence Centre (GIC), which promotes trade through investments. Mr Munyaradzi Kereke, Senior Policy Advisor to the Reserve Bank of Zimbabwe Governor, made a presentation to the centre on scenario planning. It quickly emerged that the centre’s main interest was in developments in Zimbabwe. Questions largely touched on issues of property rights and the tax system.

One important outcome of the visit was that the Reserve Bank is now a member of the GIC, joining the likes of Senegal and Ghana. It can now contribute two items in the monthly GIC publication called Global Commentary. This should help clarify any misunderstood developments and project Zimbabwe’s potential as an investment haven.

The team held a meeting with Zimbabweans living or working in Philadelphia. Some of those attending this meeting expressed concern about the possibility of policy changes, which might lead to investors losing out. Others said it would be easier to invest in companies listed on the Zimbabwe Stock Exchange if the stock exchange was computerised. Some suggested Zimbabwe’s embassy could do more to project a better image of Zimbabwe in the United States.

On June 4 the team moved to New York, where it met Zimbabweans based in that city and in Boston, who praised the Homelink concept but expressed concern about the possibility of policy reversals. Members of this group requested that they be affiliated to the Reserve Bank of Zimbabwe Advisory Board.

It was suggested that a pension scheme for Zimbabweans in the Diaspora be among the services offered through Homelink. This is an idea which needs to be pursued.

The team travelled to London on June 11to join the other team, which had been conducting road shows in the United Kingdom. A reception at Zimbabwe House on June 12 June, at which the Reserve Bank Governor, Dr Gideon Gono, spoke, was well attended. A small but noisy group of demonstrators outside the embassy chanted anti-Government slogans.

Visits to Birmingham and Leytonstone on June 13 concluded the Homelink road shows in Britain.

On June 14 Dr Gono went to Oxford University where he addressed the African Society. The address dealt with economic issues and the need to complement devaluation with fiscal policies.

The audience raised issues concerning the independence of the Reserve Bank and confidence in the economy. After the meeting, the BBC interviewed the Governor.

Meetings with Coznove and Standard Chartered Bank were positive as far as putting Zimbabwe back on the investment map is concerned.

The last port of call was South Africa. One of the most important events there was the volunteering of Zimbabwean professionals, business people and academics, during a breakfast meeting, to form a think-tank affiliated to the Reserve Bank of Zimbabwe Advisory Board.

During the breakfast meeting, which was characterised by frankness, those present expressed appreciation of new policy changes and a wish to contribute to Zimbabwe’s economic turnaround. Again the importance of confidence and policy consistency were mentioned.

On June 19 Governor Gono failed to address a meeting of locally-based Zimbabweans, after a mob of noisy Movement for Democratic Change supporters prevented him doing so. Although the people who made up this group were fewer than the hundreds of people who were genuinely interested in listening to the Governor, they managed to stop proceedings.

Their ability to do so can be attributed to poor security arrangements and perhaps the determination of opponents of the tour to stop this final meeting after failing to do so in the United Kingdom and United States.

Among the issues which became clear on this tour was the importance of policy consistency and the negative effect that policy reversals have on investor confidence. Present policies need to be refined and continue to be investor-friendly.

The address at Oxford University was, in my view, an important one, because of the opportunity it presented for Dr Gono to explain his monetary policy and the thinking behind it to intellectuals.