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HARARE (Reuters) – Zimbabwe launched fresh moves to seek foreign investment on Thursday to help the economy recover from its protracted crisis, saying any foreign buyers must be given a guarantee their money will not be seized.
The nation, the second poorest in sub-Saharan Africa, last year sought a $700 million (570 million pounds) loan from China to help bolster its banking system and build an external debt base as it struggled to recover from the effects of a financial crisis.
“Let’s consider a guarantee from China,” Economy Minister Patrick Chinamasa said in a speech in Harare. “We are not going to get an agreement just because the government doesn’t like it.”
In the speech to a rally of supporters, which followed two failed efforts by the government of Robert Mugabe to persuade banks to lend to it, Chuwa said those who want to buy homes from the country will have to put something at stake.
He was referring to the refusal of Western investors, who are seen as potentially helping build an economy in which the population is increasingly urbanizing, to commit billions of dollars in loans and loans to help the country’s struggling banking sector.
Any foreign buyer must now go through a foreign bank for approval before purchasing any property, Chuwa said.
“Some of the foreign investors will be given a guarantee. We will do what must be done to guarantee this … because our government will never do for us what it did, which was seize our assets.
Chinese banks were “open to foreign investors to help us meet the domestic debt needs of Zimbabwe,” Chuwa added.
China’s Commerce Ministry said its bank had already been in touch with authorities to discuss the issue of foreign investment in Zimbabwe.
China was among the world’s fastest growing economies in 2015, buoyed by a revival in demand for its raw materials. But it has been reluctant to invest in the developing world because of fears it could disrupt its own trade with the United States and other emerging markets.
It has also not ruled out buying African properties, or investments, if needed.
Chinese state media on Thursday urged Zimbabwe to give the Chinese government the go-ahead to purchase more assets, noting that it invested $1 billion, almost all in foreign properties, in the nation between the years 2000 and 2008.
Mugabe has blamed the country’s woes on the “thieves of the world”
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