The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.
Capital Markets

Zimbabwe opens for business

Now Mugabe is gone, one of the poorest nations in southern Africa can see the first signs of interest from international investors, but a chaotic currency regime, heavily indebted economy and looming elections are turning initial euphoria into cautious optimism.

Emmerson-Mnangagwa-R-780

Energizing: President Emmerson Mnangagwa tours a hydro electric power plant in Kariba



 

IN ADDITION        


Flashback to Washington DC, October 2017.

Delegates from all points of the planet begin filling the hotels and eateries of the US capital for the annual World Bank and IMF gabfests. Patrick Chinamasa, well into his fifth year as Zimbabwe’s finance minister, is among them.

These meetings have tended to be tricky for Zimbabwe since it defaulted on billions owed to the World Bank and IMF in 1999. Now officially in hock to its lenders to the tune of nearly $12 billion – a level of indebtedness approaching the country’s GDP – Zimbabwe has generally been confined to the multilaterals’ naughty corner, a pariah for most mainstream lenders.

Harare’s delegations go through the motions of showing up in DC, getting ticked off for missing repayments and pledging that they’ll try harder. It is a grim cycle on constant repeat.

Zimbabwe has met some of its multilateral obligations, but is still reeling from the ravages of hyperinflation and with only 11% of the workforce in formal employment, it is ever more deeply mired in dysfunction and economic mismanagement.




You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree