Appearing before the Parliamentary Portfolio Committee on Foreign Affairs, Dr Hutter said German companies are keen to invest in Zimbabwe but policy inconsistencies were a hindrance.
“Zimbabwe is in a competitive situation with its neighbors; there are things which you have which are to your advantage but there are things which are seen as not good like a simple issue of police roadblocks and the ease of doing business.
“We believe that business and investment is possible but we need to address the challenges that exist for German companies to come here,” he said.
He added: “We need to focus on how to bring more companies so that employment is created. We need to increase trade by looking at possible trade areas which means Zimbabwe products can enter Germany without any hindrances.”
Dr Hutter debunked the notion that Germany was not releasing lines of credit to Harare because of its dislike of the current Government.
“… Government has to pay its arrears to (the) World Bank and Paris Club; once that is addressed, KfW (Germany owned development bank) will be able to come to Zimbabwe to give you money.
“It is not true that we are not lending money to Zimbabwe because of the political situation; it is not true. It is because of the arrears and those are areas which investors also look at,” he said.
Germany, a member of the European Union, froze economic relations with Zimbabwe over a decade ago when the bloc imposed sanctions on Harare.
Government is in the process of improving the ease of doing business