This comes after the United States of America partially lifted its sanctions on Zimbabwe this week, while also imposing fresh curbs on 14 individuals and entities under its Department of the Treasury’s Global Magnitsky programme.
At the same time, the US also continues to uphold the Zimbabwe Democracy and Economic Recovery Act (Zidera), which constitutes a distinct set of sanctions that were put in place in 2001 following the country’s chaotic fast-track land reforms.
To compound the business community’s concerns, America’s recent withdrawal from Zimbabwe’s debt relief discussions facilitated by the African Development Bank and involving the European Union and other creditors, does not send complete positive signals that all is now well between Harare and Washington.
In this regard, the president of the Confederation of Zimbabwe Industries (CZI), Kurai Matsheza, said yesterday that while the partial removal of USA sanctions on Zimbabwe was welcome, the imposition of injunctions on the country’s Head of State and other key government officials meant that “there may be little or no change at all in Zimbabwe’s economic, trade and investment climate”. “As Zimbabwe, we still want to see the complete and unconditional removal of all measures.
“As long as there are these sanctions on the Head of State of the country, it means that the business community and financial institutions of the US will be guided by that position in their review of the Zimbabwe investment climate, and how they do business in Zimbabwe.
“However, we welcome all efforts that have been taken in the fight for the removal of sanctions this far,” Matsheza told The Financial Gazette — the country’s number one business publication.
The president of the Zimbabwe National Chamber of Commerce (ZNCC), Mike Kamungeremu, also said the local business’s position “remains that all forms of sanctions should be lifted unconditionally”.
“We are not sure what the impact (of the partial lifting of sanctions) will be … but all sanctions must go and that hasn’t happened yet”.
However, Finance minister Mthuli Ncube said the reconfiguration of Washington’s sanctions signalled hope for better relations between Zimbabwe and the USA.
“It was welcome. It opens a window for Zimbabwe to engage further with the international community in the way that Zimbabwe can be able to access more resources for its economic agenda. It is a step in the right direction,” he said at the 56th session of the conference of African ministers of finance, planning and economic development, in Victoria Falls on Tuesday.
Many economic analysts also echoed the Treasury boss’s sentiments, with Prosper Chitambara saying the move could boost the country’s economic prospects.
“It will likely result in an improvement in investment inflows from the West.
“For that to be fully realised, we need also to work on the local doing business environment itself, because ultimately what determines whether an investor invests here is their ability to maximise returns on investment.
“If we can adjust, enhance infrastructure and ensure greater stability in terms of our macro economy, that will be a good incentive for western investors to want to invest in Zimbabwe,” Chitambara added.
Another analyst, Victor Bhoroma, was similarly bullish about the partial removal of Washington’s sanctions.
“What we hope for from an economic point of view is that this helps to improve trade between Zimbabwe and the USA.
“At the moment, this is very limited and this can lead to a situation where it grows even to reach billions of dollars, which would be beneficial to both countries.
“We really hope that from a political point of view, we can now move in a positive direction that opens up trade between the two countries,” Bhoroma said.
Industrialist Busisa Moyo also thought that the move was “a positive overture” overall.
“It is a form of de-escalation from a heavy sanctions programme that deterred investors, and which kept the Zimbabwe private sector out of partnerships and alliances with American firms on meaningful investment and cooperation.
“Zimbabwean firms should look at forging partnerships, seeking investment and alliances with Americans for mutual benefit,” he said.
All this comes as sanctions have long been a thorn in the side of the nation’s economy, with local industry and commerce arguing that they have tarnished the country’s investment allure and exacerbated its debt profile.
This has resulted in businesses struggling to secure affordable credit lines.
Recent calculations also suggested that the banking sector alone was shouldering an annual cost exceeding US$1 billion due to the American sanctions.
This figure takes into account the challenges and inflated costs of money transfers, compounded by the country’s restricted access to the crucial Swift system — the world’s most efficient platform for international payments and settlements.
The US’s new sanctions regime targets President Emmerson Mnangagwa, 10 other individuals, and three companies.
With the previous regime, enforced under Executive Orders, now discontinued, this means that previously listed individuals and companies are no longer under sanctions.
Furthermore, all property and interests in property blocked under the initial Zimbabwe Sanctions Programme will be unblocked.
Notable figures removed from the sanctions list include VP Kembo Mohadi and former Reserve Bank of Zimbabwe (RBZ) governor Gideon Gono.
Key State companies that are also no longer under sanctions include the state mining firm ZMDC, the Minerals Marketing Corporation of Zimbabwe, Zimbabwe Defence Industries and Ziscosteel.
Meanwhile, a Bill seeking to review Washington’s relations with South Africa has been introduced in the US House of Representatives.
The Bill, put forward by Congressmen John James and Jared Moskowitz, criticises South Africa’s military ties with Russia and China, its involvement in an International Court of Justice case against Israel, and its alleged support for Hamas.
Analysts have warned of significant implications following the introduction of the Bill.
They emphasise that the United States remains a crucial trade and investment partner for South Africa, and any potential damage to these ties through sanctions or other restrictions could have far-reaching effects throughout the Southern African Development Community.
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