JOHANNESBURG, May 4 (AFP) - South African business leaders just back from a
fact-finding mission to Zimbabwe reported Thursday that trading conditions
were “extremely difficult” and that tourism had plunged, but urged
companies to battle on.
The delegation of the South African Chamber of Business (SACOB) and
National African Federated Chambers of Commerce (NAFCOC) said in a
statement that land was being manipulated for reasons of political
expediency.
Squatters led by independence war veterans have taken over around 1,000
white-owned farms in Zimbabwe, and the death toll in related violence ahead
of parliamentary elections has risen to at least 13.
“The Zimbabwe situation is having a direct impact on South African economic
conditions,” the statement said. “The recent fall in the currency (to a 20-
month low against the dollar) is certainly linked to the Zimbabwe
situation.”
“Our initial views were confirmed by the majority of interactions that
there is a disregard for the rule of law and property rights. Land is an
issue that is being manipulated for political expediency prior to the
election.
“Zimbabwe has been experiencing steady economic decline owing to poor macro
economic policy with specific reference to monetary and fiscal management.
“Trading conditions, whether they be export or import, are becoming
extremely difficult due to the absence of vital business instruments—for
example, credit guarantees, insurance cover and foreign currency shortages.
“Tourism, too, has been heavily affected where activity levels are
currently at 30 percent of normal levels, and is likely to drop further.”
South African business remains committed to trading under “abnormal
circumstances,” the statement said, but it noted that most South African
investment programmes had been suspended.
“SACOB and NAFCOC encourage South African business to sustain economic
activity between South Africa and Zimbabwe, albeit under adverse
conditions,” it said.
hn/ef/vs

sidi sanneh

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