Zimbabwe less a security risk for business than South Africa

Zimbabwe is less a security risk for business than South Africa but it has a higher political risk factor according to the 2014 riskmap compiled by British firm, Control Risks. Zimbabwe is in the low security risk category together with Botswana, Malawi, Mozambique, Namibia and Zambia while South Africa is in the medium security risk. Zimbabwe, however, has a higher political risk while Malawi, Mozambique South Africa and Zambia are in medium risk. Botswana and Namibia have low political risk. The firm says: “The security risk rating evaluates the likelihood of state or non-state actors engaging in actions that harm the financial, physical and human assets of a company. It assesses the extent to which the state is willing and able to protect those assets and the extent to which state or non-state actors are capable of harming those assets. The impact of security risk on companies can include theft, injury, kidnap, damage to installations, information theft, extortion, fraud, expropriation and loss of control over business. Security risk may vary for companies and investment projects because of factors such as industry sector, investor nationality and geographic location.” “The political risk rating evaluates the likelihood of state or non-state political actors negatively affecting business operations in a country. It assesses the extent to which the state is willing and able to guarantee contracts and the extent to which non-state actors may threaten the viability of business operations. The impact of political risk on companies can include negative government policy, judicial insecurity, exposure to corruption, reputational damage, expropriation and nationalisation, and international sanctions.  It assesses the extent to which political, economic and institutional stability may enhance or diminish the likelihood of these risks taking place. Political risk may vary for companies and investment projects because of factors such as industry sector and investor nationality.”

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