Fruitful Zimbabwe still distance apart

  1. Posted on Thursday 18 September 2008 - 13:33
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    Peter Griffiths, AfricaNews reporter in Johannesburg, South Africa Photo: Elles van Gelder
    Zimbabweans should not expect quick economic relief now in spite of a power-sharing deal reached this week, according to Harare-based economist, John Robertson. He forecasts that the South African country's economy would continue to struggle for years to come.
    immigrant from Zimbabwe in South Africa_Elles van Gelder
    The historic deal has been seen by many as an opportunity for Zimbabwe to rebuild itself and reclaim the wealth it once had. The once bread-basket of southern Africa is little short of a basket case after more than a decade of poor rule by Mugabe’s ZANU-PF party saw the country’s economy shrink by at least 65 percent. Inflation reached 11.2 million percent in June.

    “Despite the deal, this year’s economic shrinkage will be worse. Confidence in the country is low. There has been a lot of skills flight. The change is going to be very, very slow,” Robertson said.

    The new government would inherit $4-billion in external debt and domestic debt of $79.9-million, as well as a currency that has already had 13 zeroes removed from it in a vain attempt to prop up the free-falling Zimbabwean dollar.

    The deal, signed between President Mugabe and political rival Tsvangirai would see the latter becoming a prime minister. Mugabe remained as president and a new deputy prime minister position would be filled by Arthur Mutambara, a leader of a splinter group of the MDC. The three leaders have agreed that “the government will lead the process of developing and implementing an economic recovery strategy and plan.”

    “It looks like Morgan has been cheated in this deal, they (MDC) don't have anything other than to shuffle papers and that’s it,” said Robertson.

    University of Harare Professor, Anthony Hawkins, added that although foreign assistance could mean a growing economy by the first half of 2009, lost productivity would take years to redevelop. “Getting back to where we were in the 1990s, it would take us another 10 years and getting back to the 1980s, it would take us another 15 years,” said Hawkins.

    The International Monetary Fund has already agreed to hold talks with the new government after ending their relationship with Zimbabwe over un-paid debt in 2006, while the European Union has decided against immediately lifting sanctions, saying they would monitor the situation.

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