10 Jan 2015
17 Mar 2011
Investing in Zimbabwe
Officially the Republic of Zimbabwe and formerly Southern Rhodesia, Rhodesia, the Republic of Rhodesia, and Zimbabwe Rhodesia) is a landlocked country located in the southern part of the African continent, between the Zambezi and Limpopo rivers. It is bordered by South Africa to the south, Botswana to the southwest, Zambia to the northwest and Mozambique to the east. Zimbabwe has three official languages: English, Shona (the Bantu language with the most native speakers), and Ndebele (also a Bantu language).
Zimbabwe began as the British crown colony of Southern Rhodesia, created from land held by the British South Africa Company. President Robert Mugabe is the head of State and Commander in Chief of the armed forces. Morgan Tsvangirai is the Prime Minister. Mugabe has been in power since the country's internationally-recognised independence in 1980.
The Economy
Mineral exports, agriculture, and tourism are the main foreign currency earners of Zimbabwe. The mining sector remains very lucrative, with some of the world's largest platinum reserves being mined by Anglo-American and Impala Platinum. The Marange diamond fields, discovered in 2006, are considered the biggest diamond find in over a century. They have the potential to improve the fiscal situation of the country considerably, however almost all revenues from the field have disappeared in to the pockets of army officers and ZANU-PF politicians. Zimbabwe is the biggest trading partner of South Africa on the continent.
Zimbabwe maintained positive economic growth throughout the 1980s (5.0% GDP growth per year) and 1990s (4.3% GDP growth per year). However, the economy declined from 2000: 5% decline in 2000, 8% in 2001, 12% in 2002 and 18% in 2003. The government of Zimbabwe faces a variety of economic problems after having abandoned earlier efforts to develop a market-oriented economy. Problems include a shortage of foreign exchange, soaring inflation, and supply shortages. Zimbabwe's involvement from 1998 to 2002 in the war in the Democratic Republic of the Congo drained hundreds of millions of dollars from the economy.
The downward spiral of the economy has been attributed mainly to mismanagement and corruption of the Mugabe regime and the eviction of more than 4,000 white farmers in the controversial land redistribution of 2000. Zimbabwe was and still is an exporter of maize. Tobacco exports and other exports of crops have have increased in recent years following favorable climatic conditions.
Tourism is an important industry for the country,.The Zimbabwe Conservation Task Force released a report in June 2007, estimating 60% of Zimbabwe's wildlife has died since 2000 due to poaching and deforestation. The report warns that the loss of life combined with widespread deforestation is potentially disastrous for the tourist industry.
On November 2010, the IMF described the Zimbabwean economy as "completing its second year of buoyant economic growth".
The economy is in its growth phase and its wise that investors position strategically in the growing market!!
Investment Areas
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