| |
|
|
| |
Home
>
World
> Africa
> Zimbabwe
|
Business Profile
Economy: Zimbabwe’s economy is now in freefall. Half the workforce is unemployed; hyper-inflation (currently estimated at 140 per cent annually) has taken hold while GDP is expected to contract by ten per cent during 2002. There are four main reasons: a catastrophic decline in the value of the Zimbabwean dollar; the chaos in the vital agricultural and agro-industrial sectors caused by government policies on land redistribution; the drought which is afflicting the entire region; and the growing impact of the very high rates of HIV/AIDS infection on the workforce. The situation is now extremely serious and the immediate prospects of recovery are virtually zero without radical reform.
The agricultural base relies on tobacco and other cash crops, including sugar, coffee, cotton and maize, which are key export earners. Livestock rearing is also important. The mining industry produces gold and nickel, mainly for export, as well as smaller quantities of a host of other minerals including silver, emeralds, lithium, tin, iron ore, manganese, cobalt, coal, diamonds and a number of rare metals. Large coal deposits and hydroelectric plants supply the country’s power stations. The manufacturing industry, which was well developed by regional standards, improved significantly as a result of import substitution projects set up while international trade sanctions were applied against Rhodesia during the Unilateral Declaration of Independence (UDI) period; food processing, metals, chemicals and textiles were the most important of these. In the service sector, tourism grew rapidly in the period after independence but this has almost completely vanished.
Although better developed than many of its neighbours – especially as regards basic infrastructure such as roads, telecommunications, water and electricity – much of this benefit has been squandered or allowed to disintegrate through neglect. Zimbabwe’s economy remains heavily dependent on South Africa. The South Africans have been more sympathetic to the Zimbabwean government than most of the rest of the international community; all the major donors in Europe and North America have now suspended grants and loans to Zimbabwe, further depressing economic prospects. Zimbabwe is a member of the Southern African Development Community and has signed up to the Common Market for Eastern and Southern Africa. After South Africa, Zimbabwe’s main trading partners are Germany, Japan, the UK and the USA.
Business: Normal courtesies should be observed and men should wear a suit and tie. The atmosphere will generally be less formal than in many European countries. Office hours: Mon-Fri 0800-1630.
Commercial Information: The following organisations can offer advice: Ministry of Industry & International Trade, Private Bag 7708, 13th Floor, Mukwati Building, Fourth Street, Causeway, Harare (tel: (4) 702 731; fax: (4) 791 829; or Zimbabwe National Chambers of Commerce (ZNCC), PO Box 1934, Equity House, Rezende Street, Harare (tel: (4) 753 444; fax: (4) 753 450; e-mail: info@zncc.co.zw; website: www.zncc.co.zw).
Conferences/Conventions: Contact the Zimbabwe Tourism Authority (see Contact Addresses section).
Copyright © 2003 Columbus Publishing Ltd.
Terms and Conditions apply.
|
|
|
|
|
