The stated readiness to impose secondary sanctions, and criminal and civil penalties against natural and legal persons circumventing unilateral sanctions regimes, and the imposition of high fines on Zimbabwean banks (CBZ, Standard Chartered Bank Zimbabwe, Barclays Bank) have resulted in Zimbabwe being qualified as a high-risk country, the adoption of zero-risk policies and the departure of 87 correspondent banks from Zimbabwe. Over-compliance by third-country banks and private companies has resulted in growing problems to transfer or receive money when natural or legal persons of Zimbabwe are participants in the transactions, including freezes on money in Zimbabweans’ bank accounts, closing long-established bank accounts (reportedly in the U.S., UK, Switzerland); extending the length and costs of bank transfers, and the need to do transactions via third-country nationals.
Unilateral sanctions against natural and legal persons of Zimbabwe, in conjunction with secondary sanctions, zero-risk policies and over-compliance are exacerbating the economic and humanitarian crisis, forcing the Government of Zimbabwe, banks, public institutions, private companies and individuals to look for alternative ways to participate in international trade by involving third parties, using alternative informal non-transparent mechanisms of trade and payments, thus adding to corruption rather than suppressing it, preventing the participation of Zimbabwe and its people in international cooperation, adding to the isolation of the country, impeding Zimbabwe’s achievement of the Sustainable Development Goals, and undermining the right to development of the people of Zimbabwe.
Preventing Zimbabwe from participating in international cooperation by impeding its ability to pay membership fees for international organizations, or to have interparliamentary cooperation, isolates Zimbabwe from international cooperation and prevents the fulfillment of the right to development.
The Special Rapporteur notes with concern that due to the unavailability of new machinery and spare parts, the emigration of competent staff and the unavailability of financial resources for medical expenses, the people of Zimbabwe have limited access to public transportation, electricity, water and health care, affecting besides economic and social rights the rights to health and to life, especially in the course of the pandemic. The same reasons impede access to safe drinking water and sanitation, resulting in increasing risks of cholera, COVID-19 and other diseases.
The negative impact of unilateral sanctions is exacerbated multiple times by the de-risking policies of banks, donors, and trade and cooperation partners, resulting in over-compliance, reportedly impeding the possibility of citizens of Zimbabwe and private businesses to participate in international cooperation and professional or sports training and exchanges – affecting thus the right to education and the possibility of professional growth; by preventing the flow of investments to Zimbabwe because of high reputational risks, the number of working places is negatively affected, resulting in external migration and involvement in the informal economy.
Continued next page
(745 VIEWS)
Pingback: European Union mulling lifting sanctions on Zimbabwe | The Insider
Pingback: Mnangagwa spokesman says there is nothing to celebrate about latest US move on Zimbabwe sanctions | The Insider