QUESTION #4
What alternatives does Zimbabwe have should the USA fail to take action to support Zimbabwe’s economy?
Overview
It is our view that Zimbabweans are now desperately impatient for real economic advancement. Unless the populace sees progress the pressure on the politicians will be relentless. This can lead to desperate actions on the part of Zimbabwe should the USA and EU fail to respond to Zimbabwe’s request for urgent economic support and removal of sanctions.
4.1 Options available to Zimbabwe
As private sector observers we note that the Government of Zimbabwe is not without options – if it fails to secure USA and EU financial support. We make no comment on the advisedness or otherwise of these options – but simply to state that these options do exist.
- i) Embrace China’s BRI initiative for Africa.
China has placed on the table a potential US$60bn investment package for investment across Africa as part of its Belt and Road Initiative (BRI). Many African countries are scrambling to get a share of these resources. Shunned by the USA and The EU it would be reasonable to assume that Zimbabwe will consider making a strong attempt to access this large pool of investment funds even if this entails mortgaging substantial share of its natural resources to achieve this.
- ii) Develop Closer stronger economic ties with Russia
There have already been a number of Russian delegations to Zimbabwe in the recent past – which is indicative of a desire by Russia to forge economic ties with Zimbabwe.
iii) Closer Economic ties with Eastern European Countries such as Belarus.
Our observation is that should the USA and the EU fail to support Zimbabwe these fledging relations will become stronger.
- iv) Embrace investors of questionable credentials.
When a government is pushed into a corner there is every reason to believe that it will take any action necessary to enable it to respond to the popular demands of its citizens if the traditional or normal avenues fail to yield results.
- V) Revert to ruinous populist policies of the Mugabe era
It is not inconceivable that if the present government fails to secure support from the international financial institutions despite its commitment to reform it may, in frustration, revert to populism catastrophic consequences for a country with so much promise.
Our view as the private sector is that Zimbabwe’s government desires to strengthen its relationship with its traditional business partners which include the USA and EU. Zimbabwe has already applied to re-join the Commonwealth – a strong indicator that it wants to improve relations with the UK-led grouping and with the West in general. Sanctions present a formidable obstacle blocking the way to the resumption of these partnerships.
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