After controversial elections, direct aid to Zimbabwe in limbo

14 August 2013 --

We have been relatively bullish on Zimbabwe of late, bidding on a couple of deals there and developing local partnerships for the future.  Our associated from SEAF have also looked hard at Zim investment potential for the SME sector recently.  But all the recent optimism has been premised on continuing evolution towards a normalised and inclusive democratic process.  Last week's disastrous elections make have brought all this to a screeching halt.  One local contact of ours reported that 'this has set us back 4 years or more.'

Given the parlous state of government finances and the shaky recovery in the economy, continued foreign assistance, as well as FDI, is of critical importance.  Whilst Western aid was on an upswing, this too is now very much in danger, as Western donors re-evaluate their positions post-election fiasco.  Devex produced a useful summary of the current position - click on the link below.

-- Jan Cherim

After controversial elections, direct aid to Zimbabwe in limbo - Business Insight: Zimbabwe | Devex