French delegation explores investment in Zimbabwe

A 10-member French delegation is in Zimbabwe to assess trade prospects and team members have already met President Robert Mugabe. The 90-year-old president is reported to have given the team more details on his controversial indigenisation policy, which obliges foreign firms to part with majority shares. Economists say the law is driving potential investors away at a time the country desperately needs them as local companies shut down and a liquidity crisis bites.

Robert Mugabe, August 2014. Reuters/Philimon Bulawayo

Zimbabwe's official media says this is the biggest business delegation from Europe to visit the country in years.

President Robert Mugabe's government has certainly rolled out the red carpet.

Gérard Wolf of the French business confederation, Medef international, is leading the delegation.

He and the other delegates had an audience with the 90-year-old president himself, just before he left for the AU summit in Addis Ababa.

State media is claiming that Mugabe gave the delegation more details of his controversial indigenisation policy and what it's reporting looks very much like a climbdown.

Mugabe is reported to have said that the policy applied only to resource-based operations - presumably like mining companies.

That's certainly not been the case inside Zimbabwe, where foreign-owned telecoms firms, tourism entities and retailers are being forced to hand over majority shares.

Will new French investors be given special treatment? At the moment, that's far from clear.