Zimbabwe 

Zimbabwe country policy

Policy established 22 May 2000

• Off cover

Country class: 7

Zimbabwe country facts

Atradius DSB Economic Research
Country Report last updated :  17 April 2007 
Country :  ZIMBABWE 

Political Situation
Mugabe Remains In Power

Head of state
President Robert Mugabe (ZANU-PF, re-elected in 1996 for a six year term).

Form of government
Still a de facto one party state ruled by ZANU-PF party.

Internal Economic Situation
Catastrophic: Economi Contraction And HYPERINFLATION
General situation
Catastrophic. Since 1999 the real GDP has contracted with 35%. The formerly efficient and productive agricultural sector has come to a standstill since Mugabe started expropriation of white farmers’ land in 2000. The decline of the economy has led to mass unemployment, mass migration to SA (an estimated 3 million Zimbabweans live there) and food-shortages. Due to the deteriorating security situation the tourism sector is also in decline.

External Economic Situation
Likelihood Of Moratorium Becomes High

Main sources of foreign exchange
Tobacco (12% of exports), gold (24%), ferro-alloys (11%), platinum (11%).

Main foreign markets
South Africa (41%), China (9%), Switzerland (9%), Japan (7%).

Main expenses of foreign exchange
Capital goods (21% of imports), manufactures (14%), chemicals (10%), fuel and energy (18%). 
  
Balance of payments 
Some international banks still provide credit to the government. China is supposed to provide commodity-backed loans. Equatorial Guinea is said to deliver oil credits. Eskom (South Africa) supplies electricity on credit despite large payment arrears.