Zimbabwean president declares state of disaster due to drought

Emmerson Mnangagwa says country needs $2bn of aid as severe dry spell caused by El Niño afflicts southern Africa

Zimbabwe has declared a national disaster over a drought caused by the climate event known as El Niño and President Emmerson Mnangagwa has said the country needs $2bn in aid to help millions of people who are going hungry.

The severe dry spell is wreaking havoc across southern Africa.

“No Zimbabwean must succumb or die from hunger,” Mnangagwa told a press conference. “To that end, I do hereby declare a nationwide state of disaster, due to the El Niño-induced drought.”

Due to poor rains, more than 2.7 million people will not have enough food to put on the table this year, he warned. This season’s grain harvest was expected to bring in just over half of the cereals needed to feed the nation, he said.

The naturally occurring Niño climate pattern, which emerged in mid-2023, usually increases global temperatures for a year afterwards. It is currently fuelling fires and record heat across the world.

El Niño forecast to drive record heat from the Amazon to Alaska in 2024

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In southern Africa, Zimbabwe is the third country to declare drought a national disaster after Malawi and Zambia. The measure allows the government to access more resources to address the crisis.

The drought has also affected electricity production as Zimbabwe is highly reliant on hydroelectric power.

According to the World Meteorological Organization (WMO), the latest El Niño is one of the five strongest on record and its impact will continue by fuelling heat trapped in the atmosphere by greenhouse gases.

El Niño reached a peak in December, but should still result in above-normal temperatures until May over almost all land areas, the WMO said.

Major food growing areas in Malawi, Mozambique, Namibia, Zambia and Zimbabwe received only 80% of average rainfall during the mid-November-to-February southern hemisphere summer, the Food and Agriculture Organization said, stressing an increased risk of food insecurity.

Rainfall in January and February was the lowest in 40 years, according to the UN.

Zimbabwe’s UN resident coordinator, Edward Kallon, said efforts were under way to mobilise resources and finalise a response plan. “This crisis has far-reaching consequences across various sectors,” Kallon said.

The drought has driven many people to use unsafe water sources, fuelling cholera outbreaks already afflicting several southern African countries, according to the UN Office for the Coordination of Humanitarian Affairs.

El Niño is also forecast to bring heavy rains and flooding in the coming months, heightening the risk of malaria and other diseases.

Meanwhile, unable to source grain from traditional suppliers in Zambia and Malawi, Zimbabwean millers have been importing genetically modified maize from South Africa.

But climate and agriculture expert Tafadzwa Mabhaudhi, of South Africa’s University of KwaZulu-Natal, said the country also had limited surplus to export to its neighbours.

“Importing maize also means food price increases, which will impact the food security of poor people, who were already struggling to afford healthy diets,” he told AFP.

Last month, small-scale Zimbabwean farmers in affected areas told AFP they were already struggling to to feed their families, after their crops failed and food prices skyrocketed.

What’s in a name, Zimbabwe?

Reserve Bank Governor John Mushayavanhu had something to say about it all: ‘If you blame me you’re actually blaming the World Bank.’ Image: Bloomberg

Oh dear, what an embarrassing situation unfolded in Zimbabwe over the past fortnight. Subsequent to an absolutely chaotic 10 days following the announcement by the government of a new currency and the immediate collapse of all banking and other payment systems, we quickly became the laughing stock.

Zimbabwe’s repeated answer to economic chaos is to change the currency, give it a new name, strip a bunch of digits off the end, waste unknown millions printing another lot of bank notes and then pretend it’s just business as usual.

But it’s not business as usual – and the sillier this change-over became, the faster the back-pedalling got.

As we all tried to get our heads around what had happened, and how we were going to pay bills with old money no one wanted and new money that hadn’t even been released yet, out came Reserve Bank Governor John Mushayavanhu to stir the pot a bit more.

“We didn’t know much about the structured currency,” he said of the ZiG. “We got a consultant from the World Bank … maybe they didn’t advise us properly … if you blame me you’re actually blaming the World Bank.”

Oh no! As one, we put our hands over our faces! Blame it on the World Bank!

What a thing to say.

Arrests

Then the big stick emerged and threats came thick and fast.

A week before the new bank notes were even released over 100 currency dealers were arrested in Harare.

The state media bragged about it, but we all know that 100 dealers is a drop in the vast ocean of street currency traders who literally line the pavements outside every supermarket offering to change your US dollars at a rate significantly higher than you can get in the bank.

One press report quoted a currency dealer as saying: “We are all in this mess together. The police can come to assault us … but after work they will come to us asking for the US dollars.”

One economist put his finger on it when he said: “Do you think the government has enough police to arrest seven million people? Everyone has been changing money on the parallel market.”

He’s right of course because for the past 15 years we have all been buying or selling US dollars on the side of the road where we can get at least a third, half or more for our US dollars than the banks will give us.

How do our leaders think we have all survived these years of mayhem? And how do they think so many people got so rich so quickly?

Last week the conversion rate for ZiG to US dollars went from the bank-stated rate of

Zimbabwe’s ZiG is the world’s newest currency and its latest attempt to resolve a money crisis

Out with the Zimbabwe dollar, in with the ZiG. Zimbabwe on Tuesday started circulating a new currency to replace one that has been battered by depreciation and often outright rejection by the people. The ZiG was introduced electronically in early April, but people are now able to use banknotes and coins.

A new “bond note” became legal tender, the Zimbabwe dollar was reintroduced before the gold coins and digital currency were tried.

However, nothing brought any currency stability and the U.S. dollar remains the most trusted for ordinary Zimbabweans.

As the shiny new ZiG banknotes hit the streets, the mistrust was evident.

Kudzanayi Mande, a vegetable trader at the crowded Mbare market in the capital of Harare, said she would rather forgo a sale than accept the ZiG. She was confused, the 56-year-old said.

“Already there is an official exchange rate and a depreciated black market rate, so I will wait a bit to see what its real value is,” she said. “The U.S. dollar is still a safer bet.”

Zimbabwe launches new gold-backed currency - ZiG

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The new banknotes come in denominations from 1 to 200

Zimbabwe has introduced a new gold-backed currency called ZiG - the name stands for "Zimbabwe Gold".

It is the latest attempt to stabilise an economy that has lurched from crisis to crisis for the past 25 years.

Unveiling the new notes, central bank governor John Mushayavanhu said the ZiG would be structured, and set at a market-determined exchange rate.

The ZiG replaces a Zimbabwean dollar, the RTGS, that had lost three-quarters of its value so far this year.

Annual inflation in March reached 55% - a seven-month high.

Zimbabweans have 21 days to exchange old, inflation-hit notes for the new currency.

However, the US dollar, which accounts for 85% of transactions, will remain legal tender and most people are likely to continue to prefer this.

The new ZiG banknotes come in denominations of between 1 and 200.

Coins will also be introduced to overcome the shortage of US coins, which has seen people receive change in sweets, small chocolates and pens.

Mr Mushayavanhu said the new currency was being rolled out with immediate effect and banks must convert current Zimbabwe dollar balances to the ZiG.

He committed to ensuring that the amount of local currency in circulation was backed by equivalent value in precious minerals - mainly gold - or foreign exchange, in order to prevent the currency losing value like its predecessors.

Zimbabweans have a historic mistrust of the central bank, dating back to 2008, when it was printing Z$10tn notes while inflation had run out of control.

It then abolished its own currency and for many years only used foreign banknotes such as the US dollar and the South African rand.

In late 2016, the body introduced a new currency called the bond note that was backed by the US dollar loan facility. The then-central bank governor John Mangudya vowed it would remain on a par with the US dollar. But the bond note crashed when the government began printing excess money.

Promises have now been made by the central bank's new governor that overprinting will not be allowed to happen again.

But public reaction on Friday to the latest currency reveal has been subdued.

"We now end up in the same place where we started - where assurances are being given to the market that the government will live within its means," economist Godfrey Kanyenze told the BBC.

"The political culture has not changed - the critical point is discipline on the part of the authorities."

The announcement of the new currency comes as the country is grappling with the effects of a serious drought, which has destroyed half of the country's crop of the staple food, maize.

Why Mutapa Investment Fund must prioritise agri-food sector.

This is the first of two blogs focusing on why the Mutapa Investment Fund must leverage its assets for profitable impact investment that is aligned with national objectives, primarily in the agri-food sector.

In September of last year, the Government of Zimbabwe renamed and restructured the original 2014 Sovereign Wealth Fund, now the Mutapa Investment Fund, with former Reserve Bank Governor, Dr. John Mangudya at its helm, vesting it with government shareholdings in a number of state-owned entities and former parastatals along with other government investments.

The Mutapa State, which gives its name to the freshly renamed fund, was a kingdom (c. 1450-1902) which stretched from the Zambezi valley into the Mozambique lowlands and towards the fringes of the Kalahari Desert. The state developed an economic system whose three pillars were agriculture, trade, and mining. This economic system was responsible in the rise, expansion and growth of a vast trading empire.

In the past few years, sovereign wealth funds (SWFs) have become more active in Africa than ever before. Governments have opened up to the idea of establishing their own investment arms to fill critical gaps in financing projects and trigger increased investment in priority sectors. With the right combination of innovation and risk management, Africa’s government investment arms can have a powerful impact in key economic sectors, according to a study by the global consulting firm, the Boston Consulting Group.

Among the vested state-owned entities are major agricultural and allied sector concerns, including AFC Holdings (which this year celebrates a century of agricultural financing), Allied Timbers Zimbabwe , Silo Food Industries, Cotton Company of Zimbabwe, Cold Storage Commission, and ARDA Seeds. Now with a controlling stake in ZimRe, following approval to acquire businessman Hamish Rudland’s controlling stake in one of the country’s biggest insurance and property investors, Mutapa now also controls CFI Holdings, another major player in the agriculture sector.

The placing of these agricultural giants under Mutapa creates one single entity that has potential to move the dial significantly for agricultural and agro-industry transformation in the country, accelerating growth and innovation that will bolster the agri-food sector and support the country’s efforts in addressing challenges in achieving food security. It now has a unique role to play in the development of the economy.

The consolidation of these companies under Mutapa can facilitate collaboration and integration prospects, and Mutapa can prioritise investments in ventures and technologies that will enhance food production, processing, and distribution, driving growth and innovation across both the food and agribusiness sectors.

This will not only help address food security priorities for present and future generations in accordance with the Government’s national food security objectives, but underscore a commitment to impact and sustainability. President E.D. Mnangagwa, from his inauguration, has repeatedly emphasized prioritised focus on agricultural transformation to drive industrialisation and wider economic reconfiguration and growth.

The fund’s investment strategy, as it rationalises its portfolio, must be aligned to priority areas of development, primarily agriculture, with Mutapa at the centre of that development.

Start Where You Are, Invest Like a Zimbabwean: Building a Global Legacy (3 Years Wiser)

One of my all-time favourite quotes is by Arthur Ashe. He said, "Start where you are, use what you have, do what you can!" I wrote an article titled Invest Like A Zimbabwean three years ago. The world has been through a lot since then. It has become ever clearer to me, especially today on Zimbabwe's 44th birthday, that everyone can and should learn something from Global Zimbabwean investors.

Three years ago, I explored the unique strategies Zimbabwean investors have developed in a constantly evolving economic landscape. Now, as Zimbabwe celebrates its 44th year of independence, reaching a similar milestone to someone who can hear retirement knocking, it's a fitting time to revisit these strategies and see how they translate for global investors today.

Financial Fears vs. Investment Risks: A Behavioral Battlefield

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Financial fears and investment risks are two sides of the same coin but are not created equal. Investment risks are the inherent uncertainties of the market – fluctuations, inflation, political risks, and economic downturns. Financial fears, however, are fueled by our behavioural biases – the mental shortcuts and emotional responses that can cloud our judgment.

Zimbabwe's economic journey provides a powerful case study in overcoming these biases. Let's explore how:

• Loss Aversion: Loss aversion describes our tendency to feel the pain of losing twice as intensely as the pleasure of gaining the same amount. Imagine allocating your savings towards a specific goal, only to have hyperinflation erode its value. Zimbabweans have had to become adept at managing this bias, but not by simply accepting losses. Here's the key: One way of overcoming loss aversion is to follow a strategic asset allocation strategy. This doesn't involve trying to time the market, a near-impossible feat perfectly. Instead, strategic asset allocation focuses on the long term. You can automatically "buy low" and "sell high" over time by rebalancing your portfolio periodically across different asset classes and geographic regions. Think of it like planting a diverse vegetable garden – sure, some crops might underperform in a particular season. Still, others will thrive, ensuring a bountiful harvest overall. This diversification helps mitigate the sting of loss aversion by ensuring that gains in another balance losses in one area.
• Herd Behavior: The allure of following the crowd can be strong, especially during periods of panic selling. Zimbabweans have learned to be wary of this herd mentality, understanding the importance of independent research and long-term perspective.
• Emotional Gap: Fear can be a powerful motivator, often leading to impulsive decisions. Zimbabwe's economic volatility has forced investors to confront these emotions head-on, developing a sense of discipline and emotional resilience. (Ask a Zimbabwean how many currencies they have used in their lifetime!)
• Anchoring: Clinging to past experiences or outdated information can be a recipe for disaster. Zimbabweans have had to constantly adjust their anchors, re-evaluating strategies and adapting to a new economic reality.
• Self-Attribution: Overconfidence can be a dangerous pitfall. The Zimbabwean experience highlights the importance of humility and a willingness to learn from past mistakes, both personal and national.

By understanding these behavioural biases and how Zimbabweans have navigated them, we can invest more strategically in a world of uncertainty.

The 5 Ever-Present Investment Risks: A Zimbabwean Perspective

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Remember the five core investment risks we discussed previously? (If not please look up "Investing Like A Zimbabwean" on my profile) Market risk, inflation, shortfall risk, liquidity risk, and political risk? These don't disappear – they're the constant companions of every investor, regardless of location or experience. The key is understanding them and developing strategies to mitigate their impact on your portfolio ( And use them to your advantage)

Learning from Zimbabwean Resilience: Mastering the Art of Investment

Zimbabwe's economic journey has been a test of resilience. Through hyperinflation, political turmoil, and periods of growth, Zimbabwean investors have honed their ability to adapt and navigate uncertainty. Their story offers valuable lessons for all of us.

Consider agriculture, a significant component of Zimbabwe's GDP. As investment author Clifford Sosin states, "No reasonable person would expect a farmer to sell his farm to buy a different farm every decade, let alone every year or several times a year." This quote emphasizes a crucial concept - long-term perspective. Just as farmers wouldn't impulsively sell their land, investors should not react to market fluctuations with panic-driven decisions. Zimbabweans, forced to navigate a challenging economic landscape, understand the importance of a long-term view.

History provides a crucial insight regarding market crises: they are inevitable, painful and ultimately surmountable, as Shelby M.C. Davis reminds us. Zimbabwe's economic history is a testament to this truth. We can be better prepared for future challenges by learning from past crises.

Becoming a More Global Investor

Today's wealth management clients worldwide need a team of global investment experts. A global suite of customized services for wealth creation, growth, and preservation, with leading experience from trusted advisors and worldwide reach and reputation. Zimbabwe's economic story highlights the interconnectedness of the global market. (Zimbabwe was the UK's 103rd largest trading partner in the four quarters to the end of Q3 2023, accounting for less than 0.1% of total UK trade.)

Investors today need to understand and navigate this complexity. A team with a global perspective can help you diversify your portfolio across asset classes and geographic regions, building resilience against localized risks.

Investing for Your Legacy: Beyond Making Money

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At 44, many will start thinking about legacy and how to create value from their wealth. Making money, as many Zimbabweans have known over the last 44 years, is the easy part, but keeping it safe and growing it is the very difficult part. A comprehensive wealth management strategy goes beyond just accumulating assets. It considers your long-term goals, risk tolerance, and tax implications. By working with a team of financial professionals, you can develop a plan that ensures your wealth survives and thrives for future generations.

The Zimbabwean Investor's Toolkit: Mastering the Elements

Cash as a Strategic Weapon: Zimbabwean investors understand the importance of having a readily available cash reserve. This provides a buffer against emergencies and allows them to seize fleeting opportunities from market fluctuations. Knowing how much cash to hold is crucial, striking a balance between liquidity and potential returns.

Opportunity Funds: Be Ready to Pounce: Market downturns create "buying opportunities." A dedicated "opportunity fund" allows you to capitalize on these moments. The key is determining the optimal size for this fund based on your overall investment strategy and risk tolerance.

Active vs. Passive: A Balanced Approach: Allocating your wealth between actively managed funds and passive index funds offers a balance between the potential for higher returns and lower fees. Understanding your risk tolerance will guide this allocation.

Hedging Against Inflation: Gold and real estate have historically served as hedges against inflation. Using these strategically within your portfolio can help preserve your purchasing power over time.

International Property: Income Streams Beyond Borders: International property investment can generate rental income and potential capital appreciation. Researching different markets and understanding currency fluctuations is crucial for success.

Plan B Passports: Global Mobility for the Discerning Investor

In an increasingly interconnected world, global mobility is no longer a luxury but a strategic advantage. Plan B passports, also known as second citizenship, offer a path to residency or citizenship in another country. This can provide benefits such as:

• Enhanced travel freedom: Visa-free travel to a wider range of countries.
• Diversification of risk: A hedge against political or economic instability in your home country.
• Business opportunities: Easier access to new markets and investment opportunities.
• Improved quality of life: The chance to live, work, or retire in a country with a more favourable climate or healthcare system.

Zimbabwe's economic history underscores the importance of adaptability. Plan B passports are another tool in your investor's toolkit, allowing you to adapt to changing circumstances and pursue global opportunities.

Building a Resilient Portfolio: A Zimbabwean Inspiration

By incorporating these strategies – maintaining a cash reserve, having an opportunity fund, diversifying your asset allocation, using hedges against inflation, considering international property, and exploring plan B passports – you can build a resilient portfolio inspired by the Zimbabwean spirit. (Assuming you have a Retirement Fund & Education fund in place already; if not, start there)

Remember, the best time to invest is now. Don't wait for a crisis to prompt action. Start building your investment foundation today, and take control of your financial future. By learning from Zimbabwe's experience and adopting these strategies, you can invest with confidence in a complex and ever-changing world.

Title: Zimbabwe's Economy Experiences Robust Growth in 2024

Introduction:

In recent years, Zimbabwe has been striving to revitalize its economy, overcoming numerous challenges to foster sustainable growth and development. The year 2024 stands as a testament to the nation's resilience and determination as it witnesses a remarkable upturn in economic fortunes.

1. Economic Expansion and Stability:

Zimbabwe's economy in 2024 has seen a significant expansion, driven by a combination of factors including prudent fiscal policies, targeted reforms, and a conducive business environment. The government's commitment to stability and growth has instilled confidence among investors, both domestic and foreign, leading to increased capital inflows and investment projects across various sectors.

2. Agricultural Revival:

Agriculture, a backbone of Zimbabwe's economy, has experienced a revival in 2024. Strategic initiatives to support smallholder farmers, improve productivity, and enhance value chains have resulted in a bumper harvest, contributing to food security and rural livelihoods. Additionally, the successful implementation of irrigation schemes and modern farming techniques has further boosted agricultural output, laying a solid foundation for sustained growth in the sector.

3. Industrial Resurgence:

The industrial sector has witnessed a resurgence, fueled by government incentives, technological advancements, and increased demand for locally manufactured goods. Efforts to promote industrialization, streamline regulatory processes, and facilitate access to finance have spurred the establishment of new industries and the expansion of existing ones. This has not only created employment opportunities but also diversified the economy and reduced dependency on imports.

4. Infrastructure Development:

Infrastructure development has been prioritized as a key driver of economic growth in Zimbabwe. Significant investments in transportation, energy, and telecommunications infrastructure have enhanced connectivity, reduced logistical bottlenecks, and improved the overall business environment. Mega-projects such as road construction, power generation, and digital connectivity initiatives have not only stimulated economic activity but also laid the groundwork for future growth and development.

5. Sustainable Development and Inclusive Growth:

Zimbabwe's economic resurgence in 2024 is not only focused on growth but also on ensuring sustainability and inclusivity. The government has implemented policies and programs aimed at addressing poverty, reducing inequality, and promoting social welfare. Initiatives such as targeted social assistance programs, skills development initiatives, and support for small and medium enterprises (SMEs) are empowering marginalized communities and fostering broad-based economic participation.

Conclusion:

As Zimbabwe's economy continues to gain momentum in 2024, fueled by a combination of prudent policies, targeted reforms, and strategic investments, the nation is poised for a new era of prosperity and development. The challenges of the past have been met with resilience and determination, laying a solid foundation for sustained growth, job creation, and improved living standards for all Zimbabweans. With a renewed sense of optimism and confidence, Zimbabwe marches forward towards a brighter future.

The Importance of Corporate Governance in Zimbabwe: Building Trust and Driving Sustainable Growth

Corporate governance plays a crucial role in shaping the business landscape of any country, and Zimbabwe is no exception. With a focus on transparency, accountability, and ethical practices, corporate governance serves as the foundation for sustainable growth and investor confidence. In this article, we will explore the significance of corporate governance in Zimbabwe, highlighting its benefits for businesses, investors, and the overall economy. We will also draw insights from academic research and industry reports to provide a comprehensive understanding of the subject.

Enhancing Investor Confidence:

One of the key reasons why corporate governance is vital in Zimbabwe is its ability to enhance investor confidence. A robust corporate governance framework ensures that businesses operate with integrity, adhere to ethical standards, and maintain transparency in their operations. This, in turn, attracts both local and foreign investors who seek stable and trustworthy investment opportunities. According to a study by the Institute of Directors Zimbabwe, strong corporate governance practices positively impact investor perceptions, leading to increased capital inflows and economic growth.

Driving Sustainable Growth:

Corporate governance acts as a catalyst for sustainable growth by promoting responsible decision-making and long-term value creation. By implementing effective governance structures, businesses in Zimbabwe can align their strategies with the interests of stakeholders, including shareholders, employees, customers, and the wider community. This alignment fosters a culture of accountability, risk management, and innovation, enabling businesses to adapt to changing market dynamics and seize growth opportunities.

Mitigating Risks and Ensuring Compliance:

In a rapidly evolving business environment, corporate governance serves as a shield against risks and non-compliance. By establishing robust internal controls, risk management frameworks, and ethical guidelines, businesses can identify and mitigate potential risks before they escalate. Compliance with legal and regulatory requirements is also a critical aspect of corporate governance, ensuring that businesses operate within the boundaries of the law and maintain their social license to operate.

Building Trust and Reputation:

Trust is the cornerstone of successful business relationships, and corporate governance plays a pivotal role in building and maintaining trust among stakeholders. By prioritizing transparency, accountability, and ethical behavior, businesses in Zimbabwe can foster trust with their customers, employees, suppliers, and the wider community. A strong reputation for good corporate governance not only attracts customers and talent but also enhances the organization's brand value and resilience in times of crisis.

Conclusion:

Corporate governance is of paramount importance in Zimbabwe's business landscape, providing a solid foundation for sustainable growth, investor confidence, risk mitigation, and reputation building. By embracing strong governance practices, businesses can navigate challenges, seize opportunities, and contribute to the overall economic development of the country. As Zimbabwe continues to attract investment and foster a thriving business environment, a commitment to sound corporate governance principles will be instrumental in shaping a prosperous future.

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#masipeafrica

Ancient Afrikan Civilization ( Great Zimbabwe)

The Great Zimbabwe has the largest of stone-built ruins. It consists of 12 clusters of buildings, that spread over 3 square miles. Its outer walls were built from 100,000 tons of granite bricks. By 14th century, the city housed over 18,000 people, compared to London at then.

It is One of the most impressive ancient monuments in Afrika an imposing collection of stacked boulders, stone towers and defensive walls assembled from cut granite blocks.

In the 14th century, the city housed over 18,000 people, comparable in size to that of London at then.

The rock citadel has long been the subject of myths and legends—it was once thought to be the residence of the Biblical Queen of Sheba—but historians now know it as the capital city of an indigenous empire that thrived in the region between the 13th and 15th centuries.

This kingdom ruled over a large chunk of modern day Botswana, Zimbabwe and Mozambique. It was particularly rich in cattle and precious metals, and stood astride a trade route that connected the region’s gold fields with ports on the Indian Ocean coast.

The remains of artifacts such as Chinese pottery, Arabian glass and European textiles indicate that it was once a well-connected mercantile center. The fortress city at the Great Zimbabwe was mysteriously abandoned sometime in the 15th century after the kingdom went into decline, but in its heyday it was home to an estimated 20,000. #AfrikaSeries

Dream Big - Start Small. Change is in the Air: U.S.-Zimbabwe Relations Set for Growth and Prosperity

American Chamber of Commerce in Zimbabwe, I couldn’t be more excited to be a part of this pivotal moment in U.S.-Zimbabwe relations. President Biden's recent Executive Order signaling the end of long-standing sanctions marks the beginning of a highly promising chapter for both nations. While there remain 14 designations on the Global Magnitsky Program, the Board and I are encouraged by this first step, and we firmly believe it will open up a plethora of new opportunities for economic growth and collaboration.

For over two decades, the sanctions program undoubtedly presented challenges for Zimbabwe's economic development. However, the termination of these restrictions now clears the path for increased investment and relations between the two countries. A lot of American companies, who have long been interested in the vibrant potential of Zimbabwe's market, can now explore new avenues for partnership and investment. Consequently, the careful nurturing of these relationships could lead to much-needed capital injections into Zimbabwe's economy, thereby creating jobs, fostering innovation, and propelling the nation towards a more prosperous future.

The benefits extend beyond just financial gain. It opens up the doors to sharing the vast wealth of experience, expertise, and innovative ideas available from both sides of the pond. This exchange of ideas will undoubtedly have a profound impact on Zimbabwean enterprises. Through partnerships and joint ventures, local businesses can gain valuable access to international markets, modern technologies, and efficient management practices. This collaborative spirit will lead to the creation of synergies, where both U.S. and Zimbabwean businesses can thrive together.

The termination of sanctions also signifies a renewed desire to foster trust and cooperation between our two countries. The improved diplomatic climate fosters a more stable and predictable environment for doing business. This newfound stability will attract not only American companies but also investors from the rest of the world, further accelerating Zimbabwe's goal of becoming a middle-income economy.

However, it is important to acknowledge that building a thriving economy will need more than just the lifting of these sanctions. We must seize this opportunity to address key areas that will solidify Zimbabwe's position as an attractive investment destination. Streamlining regulations, fighting corruption, and investing in infrastructure development are all crucial steps towards creating a business-friendly environment. The Zimbabwean government, in collaboration with the private sector, needs to prioritize these reforms to maximize the impact of this policy shift.

The American Chamber of Commerce stands ready to play a pivotal role in this new era of U.S.-Zimbabwe cooperation. We will actively facilitate connections between American and Zimbabwean businesses, fostering partnerships that drive economic growth for both nations. Additionally, we will work closely with the Zimbabwean government and all other stakeholders to advocate for policies that promote transparency, accountability, and a level playing field for all businesses.

The termination of the U.S. sanctions on Zimbabwe presents a golden opportunity. It is a chance to rewrite the narrative, to move beyond past challenges, and to forge forward to a future built on mutual respect, economic prosperity, and shared success. With focused efforts on crucial reforms and a commitment to collaboration, this policy shift can unlock the immense potential that exists in this beautiful country. We are confident that a brighter future awaits U.S.-Zimbabwe relations, and we are eager to be a driving force in its realization.

We're honoured to have hosted Dr Thomas Utete Wushe, Permanent Secretary of the Ministry of Industry and Trade, Zimbabwe and his esteemed delegation at the SADC Business Council offices.

Our dialogue emphasised the critical need for enhancing road and rail corridor development and management, particularly between South Africa and Zimbabwe as efficient transport infrastructure is the lifeblood of economic activities, facilitating trade and investment.

Improvements in transport infrastructure can lead to significant economic gains - studies show that every dollar invested in infrastructure yields a return of up to three dollars in GDP growth.

This visit couldn't have come at a more opportune time as Zimbabwe prepares to assume the Chairmanship of SADC. The Zimbabwean government is also set to host the annual SADC Industrialisation Week (SIW) in August 2024. The conference and exhibition will be hosted in partnership with the SADC Business Council, the SADC Secretariat and the Chamber of Confederation of Zimbabwe Industries.

#SADC #Zimbabwe #RegionalIntegration #EconomicDevelopment #Infrastructure #Partnerships #SIW2024 Ruvimbo Sandauke Dr Tonderai Sibanda (PhD) Tapiwa Samanga

Zimbabwe Introduces Gold-Backed Currency to Stabilize Economy

In a bold move aimed at arresting its fast devaluing currency, Zimbabwe has announced the launch of a new currency backed by the nation's gold reserves. Dubbed "Zim Gold (ZiG)", the currency will also be supported by foreign currencies and other precious minerals, according to statements from the country's new central bank governor, John Mushayavanhu.

Scheduled for introduction on April 8, the ZiG currency will debut at a rate of 13.56 per dollar, accompanied by a significant reduction in the interest rate to 20%, down from a staggering 130%. This initiative marks a departure from the government's previous strategies and aims to address fundamental issues such as excessive money printing to finance expenditures.

Analysts anticipate broader implications for trade, particularly with China, with expectations that Zimbabwean exports to China could increasingly be paid for in Chinese Yuan, which can be converted into gold through the Shanghai Gold Exchange. This shift aligns with China's broader efforts to elevate the international influence of the Yuan.

President Emmerson Mnangagwa's administration's decision to implement a "structured currency" follows the introduction of a gold-backed digital currency for peer-to-peer and peer-to-business transactions nearly a year ago. These efforts signify a proactive approach to stabilize the Zimbabwean economy, which has struggled with currency depreciation since the reintroduction of the Zimbabwean dollar in 2018.

Despite criticisms from the International Monetary Fund(IMF) regarding unconventional methods, Zimbabwe remains steadfast in its pursuit of stability. The current Zimbabwean dollar has witnessed a significant decline, losing four-fifths of its value since the beginning of the year, making it one of the world's worst-performing currencies.

This groundbreaking move underscores Zimbabwe's determination to navigate economic challenges and foster sustainable growth. Stay tuned for further updates on this developing story.