A TRADE crisis is rapidly developing in both Malawi and Zimbabwe - as the countries declare a serious shortage of ready cash.
Malawi's agri-prod export market is reported to have almost failed this year - curtailing its main source of income - and the Zimbabwe dollar is dropping through the floor, as the country dissolves into a state of street riots surrounding as-yet unfulfilled government promises.
There is an economic knock-on effect stemming from these scenarios of despair.
International aid donors - unhappy with political, social and economic affairs in the two states - are reluctant to commit any further aid funding to prop up self-inflicted problem areas. This does not allow the two governments any form of insurance claim from these foreign sources of cash.
With the price of imports rocketing in Zimbabwe because of the deteriorating exchange rate; no available forex in Malawi; and a shortage of cash to pay the freight costs of imports, there is a major impact on SA companies dealing with the two nations.
See pages 18 & 19 for local reaction.
