Johannesburg — SA's neighbours, particularly Botswana, are gaining substantial market share in Zimbabwe at SA's expense, South African Chamber of Commerce and Industry CEO Neren Rau warned yesterday.
The small and medium-sized enterprises that made up most of the chamber's 17000-strong membership regarded the rest of Africa as risky and dangerous and preferred to focus on developed countries, he told the two-day Zimbabwe Trade and Investment Exchange conference in Sandton. But the chamber emphasised the importance of trade with SA's neighbours, particularly Zimbabwe, where the upside potential was considered to be "huge" and the downside limited.
Rau's remarks came shortly after government spokesmen from Zimbabwe and SA confirmed the two countries would sign a long-awaited protection deal on November 27 which would protect South African investments in Zimbabwe.
Rau said Zimbabwe had 45bn to spend over 10 years on rebuilding its infrastructure, compared with SA's 100bn over three years, but SA's capital was largely committed and Zimbabwe's not. SA's economic growth rate this year was expected to be a negative 2% and Zimbabwe's a positive 4%.
Although SA's exports to Zimbabwe were now mainly basic goods such as industrial supplies and fuel, the chamber expected Zimbabwe's purchases of capital goods would increase over time.
Denis Worrall, chairman of conference organisers Omega Investment Research, said if the Southern African Development Community's 30-day deadline to Zimbabwe to implement a unity government was met, Zimbabwe needed to take certain steps to secure economic recovery.
Zimbabwe's problems were far greater than anyone realised. It had lost the ability to regenerate its economy and its capital base had been ruined, Worrall said.
Sanctions should be lifted as soon as possible and independent auditors should be used to administer international funding. But foreign investment would only work in a reformed environment, he said.
Zimbabwe had to rebuild its commercial farming sector, which had always been its tax base, while extending aid and advice to small- scale farming.
Control of the army and police had to be depoliticised as they had been discredited by their allegiance to one political party.
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This is probably one of the better articles written on Zimbabwes current economic problems. More important it defines what the problems are namely the inability of the Zimbabwean govt to revive its own economy. This pro-business group does not get into the politics of Zimbabwe and why Zimbabwe is where it is, but is more optimistic about opportunities, should things change in Zimbabwe.
I Like the fact that it sees Zimbabwe as South Africas market place. The article also comments on the sanctions placed on Zimbabwe and that they should be removed. This group cannot be accused of plotting to install Rhodes in Zimbabwe! With all that is at stake, will Mugabe and Zanu-pf hide the advice? Or continue the rhetoric as usual? Is there a sense of argency within the political parties to solve their problems? Is Mugabe going to insist 51% indigenous control of companies, which is bad for the economy and business?
Insincere! Hideous! Evil!
Behold! The wondrous ways of the rhodie:
" .. The small and medium-sized enterprises that made up most of the chamber's 17000-strong membership regarded the rest of Africa as risky and dangerous and preferred to focus on developed countries ..."
Let us guess: Most of these small and medium-sized enterprises are owned by foreigners - who, in keeping with the age-old white imperial thrust in Africa, would rather ship Africa's wealth to, and enrich, Europe by 'trading' with their kith and kin - in addition to cheating Africa's tax-man out of billions of dollars a year by way of transfer pricing - than create wealth and sufficiency in Africa by keeping most of Africa's wealth in Africa..
Is it surprising when the native sing the chorus "rhodie go home"?
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" ..Zimbabwe's problems were far greater than anyone realised. It had lost the ability to regenerate its economy and its capital base had been ruined, ..."
Let us hear you say it again: "Your kith and kin, your whites, had nothing to do with the ruin. And the whites had nothing to do with the death of multitudes of Zimbabweans from starvation."
Yet, there is precedence here: We have seen sanctions devaste countries from Cuba to Iraq. It is not as if those who applied the sanctions had no plan or expectation.
By the way, why is it difficult for you to mention over and over, the phrase "economic sanctions applied on poor Zimbabwe by vicious, imperial whites" .
" .. Sanctions should be lifted as soon as possible and independent auditors should be used to administer international funding. But foreign investment would only work in a reformed environment "
If your racist mind informs you that the natives are too dumb to mind their own audits and development, then rhodie -- GO HOME! But we know that an the imperial killer that has exterminated civilizations the world over, would know know better.
So, we know you: You are the hyena that urinates upwird so as to scatter the herd downwind.
The natives did OK before the white man stepped foot in Africa. And Zimbabwe has weathered your act of war, hasn't it? Now that things are brightening up for Zimbabweans, you are keen on stepping right up there and declare yourself as the saviour that leads Zimbabwe out of the morass you created.
Evil as a rhodie comes.
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" ... Zimbabwe had to rebuild its commercial farming sector, which had always been its tax base, while extending aid and advice to small- scale farming. .."
For a guy waxing wise on business/economic matters, you are indeed dim when it comes to economic development. Agriculture and indeed small-scale farming in NOT where Zimbabwe or any other country should search for its future in economic development. [Although the British would rather tie Zimbabwe into farming tobacco for BAT and the lucrative world of lung cancer deaths ..]
Correction:
"Through the decades we have seen economic sanctions kill multitudes through starvation and lack of drugs for curable diseases and devastate the economies of the targeted countries - from Cuba(since the 1960's) to Iraq(1990's and 1980's) to currently Burma, North Korea, ..."
correction:
"Now that things are brightening up for Zimbabweans, and Africans are getting fed up with rhodie's murderous, colonial schemes in Africa, you are keen on stepping right up there in front of the parade and declare yourself as the saviour to lead them out of the death trap you created - so that you can lead them right back into a death trap of dependency again"