Zimbabwe limps back into contention

Despite evidence of a groundswell of re-engagement with Zimbabwe, there’s a long way to go before it returns to the position it should occupy in southern Africa as one of the pre-eminent economies. That's according to Duncan Bonnett of specialist consultancy Whitehouse and Associates who says the economy is picking up and growing at a reasonable pace, but off a very low level. “There are still a lot of structural problems in the country in terms of being able to provide basic foodstuffs and there is also a serious infrastructure deficit that the government is not able to fund. “We see reports of $35bn worth of infrastructure opportunity in Zimbabwe but there’s no-one to pay. The government can’t, donors haven’t moved back in and countries friendly to Zimbabwe have been luke warm.” There are however some positive signs, with PPC planning to build a fairly large cement plant just outside Harare. “This is a real mark of confidence and we’re also seeing some reinvestment in the mining sector and tourism – but not nearly enough.” Future growth will clearly depend largely on indigenisation legislation – whether companies can operate under those conditions and whether those conditions will be maintained. “We need laws that are consistent and consistently applied. Companies would rather deal with an onerous but consistent set of laws than a situation where the goal posts are constantly moved.” INSERT & CAPTION We see reports of $35bn worth of infrastructure opportunity in Zimbabwe but there’s no-one to pay. – Duncan Bonnett