Ousted reformers a red rag to jittery investors
Bets are off on course Zimbabwe's failing economy will take
Zimbabwe's economic pain is set to continue as President Robert Mugabe's government remains fixated on a power struggle that has claimed the scalp of Emmerson Mnangagwa, his former deputy, who he expelled from both government and the ruling Zanu-PF party this week. The impact of Mnangagwa's exit is most likely to be felt in the further erosion of the little remaining business and foreign investor confidence in the country. Mnangagwa had endeared himself to the business community at home and abroad and had become the poster boy of economic reform. Given that there are few economic markers available to gauge market sentiment in Zimbabwe, Mnangagwa's presence in government was seen to have provided some assurance to foreign investors. The country does not have an official currency of its own to track reactions to political events. The local bourse, the Zimbabwe Stock Exchange, is also not an accurate reflection of any confidence in the economy. In fact, much of the bull run that has hi...
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