Investor sentiment dims as Zimbabwe’s economy plummets
The Zimbabwean government has introduced a number of austerity measures in an attempt to resuscitate the ailing economy. Investors, however, remain wary
Investor sentiment is dimming as Zimbabwe’s economy plummets, dragged down by a growing lack of confidence in the administration of President Emmerson Mnangagwa. In an attempt to stem the tide, the government has introduced a raft of austerity measures, including a tax on electronic money transfers and a reduction of the civil service. Mnangagwa was betting on a credible election to unlock investment inflows. Instead, fund holders seem to be unnerved after a contested result. In the absence of meaningful investment, the economy has nose-dived — despite Mnangagwa’s appointment last month of a technocratic administration. Experts say prospective investors are not keen on the country at present, while those already exposed are rethinking their strategies. Mining executive Jack Murehwa says some investors are waiting until the environment improves. "No-one will put [in] any new money under the current scenario, which is frustrating," he says. Zimbabwe’s economy is suffering from foreign...
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