Business environment has stabilized as investments flow in
Currency uncertainty continues to sap investor confidence
Annual inflation in Zimbabwe rose in January to 362.6%, the first increase in six months.
The head of Old Mutual Plc’s Zimbabwean unit says there are green shoots appearing in the southern African nation’s economy after the devastation of a severe drought and the coronavirus pandemic.
“There are good signs emerging in economic sub-sectors such as agriculture, mining, horticulture and energy, where there are actual investments taking place,” Sam Matsekete, the chief executive officer of Old Mutual Zimbabwe Ltd., the country’s biggest insurer, said in an interview in the capital, Harare, on Friday.
A “fairly stable” operating environment for businesses began in the second half of last year and held into the final quarter, a time usually associated with a liquidity squeeze as demand for foreign currency rises, Matsekete said. Projections for agricultural output suggest dollar shortages could ease, helping sustain stability this year, he said.
Annual inflation in Zimbabwe rose in January to 362.6%, the first increase in six months. The country has been hard hit by the coronavirus, with three Cabinet ministers succumbing to the virus. A strict lockdown imposed on Jan. 5 has been extended twice by President Emmerson Mnangagwa and will be maintained until March 1 with curbs on business operating hours and a night-time curfew.
The primary concern for foreign investors has been uncertainty over whether the country had dollarized its economy. While foreign currencies including the U.S. dollar can be used in local transactions, the central bank has ruled out returning to the greenback as its default currency after reinstating the Zimbabwean dollar in 2019 as the sole legal tender.
Meanwhile, a dollar shortage is putting operations of many businesses, including miners who account for half of Zimbabwe’s foreign earnings, at risk.
“People have been looking at policies and at the currency issue very closely,” Matsekete said. “They are asking are we dollarized or de-dollarizing?”
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept All”, you consent to the use of ALL the cookies. However, you may visit "Cookie Settings" to provide a controlled consent.
This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
Cookie
Duration
Description
cookielawinfo-checkbox-analytics
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checkbox-functional
11 months
The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-necessary
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-others
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-performance
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy
11 months
The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
When you consent, your personal data will be used for personalization of ads
COMMENTS