Getting Fed-Up With An Unruly Neighbour
Finweek English|24 September 2020
The economic hardships in Zimbabwe are stoking domestic problems. Zanu-PF might have crossed a line with Pretoria.
Peter Fabricius
Getting Fed-Up With An Unruly Neighbour

Zimbabwe is deeply dependent on South Africa, perhaps more so than is commonly realized. About 41% of Zimbabwe’s imports come from SA, 60% of its exports are to SA and 80% of its exports go through SA, as Bulawayo business executive Busia Moyo, who also chairs the Zimbabwe Investment and Development Agency (Zida), told a Chatham House webinar on 8 September. And he said SA had also recently overtaken the UK as the largest investor in Zimbabwe.

So, there was a lot SA could do to help fix the Zimbabwean economy, Moyo thought. The high trade and investment interdependence – coupled with the large amounts of remittances from the many Zimbabweans in SA – meant that the Zimbabwean economy was already deeply integrated into SA’s. It would thus make sense for Zimbabwe to make much greater use of the rand, and less of the US dollar or the succession of local currencies it has recently been experimenting with – now back to the Zimbabwe dollar – all of them prone to precipitous depreciation.

But when SA proposed to Zimbabwe a few years ago that it would make sense to join the rand system, the ruling Zanu-PF flatly rejected the idea, largely out of jealous pride in its own worthless money.

Yet, the same sort of statistics which Moyo quoted also give the ANC government in Pretoria tremendous economic leverage over the Zanu-PF government in Harare on this and other issues – if it chose to use it.

Denne historien er fra 24 September 2020-utgaven av Finweek English.

Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.

Denne historien er fra 24 September 2020-utgaven av Finweek English.

Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.

FLERE HISTORIER FRA FINWEEK ENGLISHSe alt
THE HEALTH OF SA'S MEDICAL SCHEMES
Finweek English

THE HEALTH OF SA'S MEDICAL SCHEMES

As the Covid-19 pandemic abates, finweek takes a look at the financial performance of some of the largest players.

time-read
7 mins  |
5 November 2021
The effect of Gilbertson's departure
Finweek English

The effect of Gilbertson's departure

With Ntsimbintle Holdings now the major shareholder of Jupiter Mines, it could change SA’s manganese industry.

time-read
3 mins  |
5 November 2021
Making money from music
Finweek English

Making money from music

Why investors are increasingly drawn to the music industry.

time-read
3 mins  |
5 November 2021
Conviction is key
Finweek English

Conviction is key

Sandy Rheeder plays a critical role in Mukuru’s mission to open up financial services to the emerging consumer market in Africa through tailor-made technology solutions and platforms.

time-read
5 mins  |
5 November 2021
The post-pandemic toolkit
Finweek English

The post-pandemic toolkit

How CFOs can use technology to support growth.

time-read
4 mins  |
5 November 2021
Big city living exodus
Finweek English

Big city living exodus

Mini cities like Waterfall City and Steyn City are redefining city-style apartment living.

time-read
3 mins  |
5 November 2021
Big compact, big value
Finweek English

Big compact, big value

Handsome, with a hefty level of standard specification, the roomy Haval Jolion compact crossover is a great value proposition.

time-read
3 mins  |
5 November 2021
On barriers to entry
Finweek English

On barriers to entry

There are various ways in which a company or sector can achieve competitive dominance. They usually make for good investments.

time-read
2 mins  |
5 November 2021
Fear and greed in one index
Finweek English

Fear and greed in one index

To buck the trend, when markets are hot or cold, is a tough thing to do. However, it can deliver solid returns.

time-read
3 mins  |
5 November 2021
Africa's largest data centre facility coming soon
Finweek English

Africa's largest data centre facility coming soon

Vantage Data Centers plans to invest over R15bn for its first African data centre facility in Attacq’s Waterfall City.

time-read
3 mins  |
5 November 2021