|Metals and Minerals|
Zimbabwe, officially the Republic of Zimbabwe, is a landlocked sovereign state located in southern Africa, between the Zambezi and Limpopo Rivers. It borders South Africa to the south, Botswana to the west, Zambia to the northwest, and Mozambique to the east and northeast. Although it does not border Namibia, less than 200 meters of the Zambezi River separates it from that country. The capital and largest city are Harare. A country of roughly 13 million people, Zimbabwe has 16 official languages, with English, Shona, and Ndebele the most commonly used.
Zimbabwe’s banking sector consists of the Reserve Bank of Zimbabwe, seven commercial banks, eight merchant banks, six finance houses, five building societies, seven discount houses, and a Post Office Savings Bank. In line with ongoing economic reforms, a new Banking Act, designed to abolish legislative market segmentation and enhance competition in the banking sector, will be introduced in 1999. In addition, an amended Reserve Bank Act, which among other things will strengthen the supervisory role of the Central Bank and enable it to adapt its operations to the new banking environment, is also being finalized. As part and parcel of the liberalization of the financial sector, and in line with initiatives designed to ensure international convergence of supervisory regulations, the Reserve Bank issued guidelines on the measurement of capital adequacy for banks. The capital adequacy measurement provides for a risk-based capital ratio which relates a bank’s capital resources to the credit risk in its portfolio. Under the new guidelines, capital is categorized into the core and supplementary capital. The introduction of these guidelines marked the adoption of the Basle Standards on the measurement of capital adequacy. All banks in Zimbabwe are now expected to be in full compliance with the minimum capital adequacy ratio of 8%.
|Agriculture||Small grains, wheat, milk, maize, fruits, tobacco, cereals, wools.|
|Manufacture||Machinery, Textile, Mining.|
|Services (Including financial)||54.6% (2012 estimate)|
|African Distillers||Consumer goods|
|Agricultural Development Bank of Zimbabwe||Financials|
|Air Zimbabwe||Consumer services|
|RT Holdings||Basic materials|
|Beitbridge Bulawayo Railway||Industrials|
|Bindura Nickel Corporation||Mining|
|National Railways of Zimbabwe||Industrials|
|New Limpopo Bridge Ltd||Construction|
|Metals and Minerals|
The Zimbabwe Stock Exchange, or ZSE, is the official stock exchange of Zimbabwe. It has been open to foreign investment since 1993. The exchange has about a dozen members, and currently lists 64 equities, four of which are, however, suspended. There are two indices, the Zimbabwe Industrial Index and the Zimbabwe Mining Index. The first stock exchange in Zimbabwe opened its doors shortly after the arrival of the Pioneer Column in Bulawayo in 1896. However, it only operated for about six years. Other stock exchanges were established in Gwelo (Gweru) and Umtali (Mutare). The Mutare Exchange, also opened in 1896, thrived on the success of local mining, but with the realization that deposits in the area were not extensive, activity declined and it closed in 1924. After World War II a new exchange was founded in Bulawayo by Alfred Mulock Bentley and dealing started in January 1946. A second floor was opened in Salisbury (Harare) in December 1951 and trading between the two centers took place by telephone. Traders continued working by telephone until it was decided that legislation should be enacted to govern the rights and obligations of the members of the exchange and the general investing public.
The Rhodesia Stock Exchange Act reached the statute book in January 1974. The members of the exchange continued to trade as before and for legal reasons it became necessary to create a new exchange coincidental with the passing of the legislation. The exchange rates from the passing of the actin 1974 and are operated and regulated in accordance with the act and its amendments, including 1996's Zimbabwe Stock Exchange Act: Chapter 24:18. On achieving independence from Britain in 1980, the exchange changed its name from the Rhodesia to the Zimbabwe Stock Exchange. With the decline of the Zimbabwean economy, hyperinflation rendered the Zimbabwean dollar useless and the US-Dollar was adopted as the legal tender for trading on the exchange in February 2009.
As of March 2009, trade has been very thin, with very few foreign investors willing to risk trading on the market. Most stocks trade in the US-cent range, with at least 26 different stocks not trading at all.
From 2000 to 2008 the Zimbabwe government took a number of decisions that resulted in hyperinflation, the near total collapse of the economy, a massive humanitarian crisis with 7 million people on food aid and a third of the population migrating to other countries – especially South Africa. This resulted in the intervention of the South African government and eventually a GNU with the MDC.
Since the 11th century, present-day Zimbabwe has been the site of several organized states and kingdoms as well as a major route for migration and trade. The British South Africa Company of Cecil Rhodes first demarcated the present territory during the 1890s; it became the self-governing British colony of Southern Rhodesia in 1923. In 1965, the conservative white minority government unilaterally declared independence as Rhodesia. The state endured international isolation and a 15-year guerrilla war with nationalist forces; this culminated in a peace agreement that established universal enfranchisement and de jure sovereignty in April 1980. Zimbabwe then rejoined the Commonwealth of Nations—which it withdrew from in 2003. It is a member of the United Nations, the Southern African Development Community (SADC), the African Union (AU), and the Common Market for Eastern and Southern Africa (COMESA).
Robert Mugabe became Prime Minister of Zimbabwe in 1980 when his ZANU-PF party won the elections following the end of white minority rule; he has been the president of Zimbabwe since 1987. Under Mugabe's authoritarian regime, the state security apparatus has dominated the country and been responsible for widespread human rights violations. Mugabe has maintained the revolutionary socialist rhetoric from the Cold War era, blaming Zimbabwe's economic woes on conspiring Western capitalist countries. Burnished by his anti-imperialist credentials, contemporary African political leaders have been reluctant to criticize Mugabe, though Archbishop Desmond Tutu has called him "a cartoon figure of an archetypal African dictator. Zimbabwe has a tropical climate with many local variations. The southern areas are known for their heat and aridity, parts of the central plateau receive frost in winter, the Zambezi valley is also known for its extreme heat and the Eastern Highlands usually experience cool temperatures and the highest rainfall in the country. The country's rainy season generally runs from late October to March and the hot climate is moderated by increasing altitude. Zimbabwe is faced with recurring droughts, the latest one commencing early in 2015 and ongoing into 2016. Severe storms are rare.
Mineral exports, gold, agriculture, and tourism are the main foreign currency earners of Zimbabwe. The mining sector remains very lucrative, with some of the world's largest platinum reserves being mined by Anglo American plc and Impala Platinum. The Marange diamond fields, discovered in 2006, are considered the biggest diamond find in over a century. They have the potential to improve the fiscal situation of the country considerably, but almost all revenues from the field have disappeared into the pockets of army officers and ZANU-PF politicians.
In terms of carats produced, the Marange field is one of the largest diamond producing projects in the world estimated to produce 12 million carats in 2014 worth over $350 million. Zimbabwe is the biggest trading partner of South Africa on the continent.
Taxes and tariffs are high for private enterprises, while state enterprises are strongly subsidized. State regulation is costly to companies; starting or closing a business is slow and costly. Government spending was predicted to reach 67% of GDP in 2007.
Tourism was an important industry for the country but has been failing in recent years. The Zimbabwe Conservation Task Force released a report in June 2007, estimating 60% of Zimbabwe's wildlife has died since 2000 due to poaching and deforestation. The report warns that the loss of life combined with widespread deforestation is potentially disastrous for the tourist industry.
The ICT sector of Zimbabwe has been growing at a fast pace. A report by the mobile internet browser company, Opera, in June/July 2011 has ranked Zimbabwe as Africa's fastest growing market. Since 1 January 2002, the government of Zimbabwe has had its lines of credit at international financial institutions frozen, through US legislation called the Zimbabwe Democracy and Economic Recovery Act of 2001 (ZDERA). Section 4C instructs the Secretary of the Treasury to direct directors at international financial institutions to veto the extension of loans and credit to the Zimbabwean government. According to the United States, these sanctions target only seven specific businesses owned or controlled by government officials and not ordinary citizens.
An independent study has shown that the sanctions have adversely affected the welfare of ordinary citizens.
Zimbabwe maintained positive economic growth throughout the 1980s (5% GDP growth per year) and 1990s (4.3% GDP growth per year). The economy declined from 2000: 5% decline in 2000, 8% in 2001, 12% in 2002 and 18% in 2003. Zimbabwe's involvement from 1998 to 2002 in the war in the Democratic Republic of the Congo drained hundreds of millions of dollars from the economy. From 1999-2009, Zimbabwe saw the lowest ever economic growth with an annual GDP decrease of 6.1%.
The downward spiral of the economy has been attributed mainly to mismanagement and corruption by the government and the eviction of more than 4,000 white farmers in the controversial land confiscations of 2000. The Zimbabwean government and its supporters attest that it was Western policies to avenge the expulsion of their kin that sabotaged the economy.
By 2005, the purchasing power of the average Zimbabwean had dropped to the same levels in real terms as 1953. In 2005, the government, led by central bank governor Gideon Gono, started making overtures that white farmers could come back. There were 400 to 500 still left in the country, but much of the land that had been confiscated was no longer productive.
In January 2007, the government issued long term leases to some white farmers. At the same time, however, the government also continued to demand that all remaining white farmers, who were given eviction notices earlier, vacate the land or risk being arrested. Mugabe pointed to foreign governments and alleged "sabotage" as the cause of the fall of the Zimbabwean economy, as well as the country's 80% formal unemployment rate.
Inflation rose from an annual rate of 32% in 1998 to an official estimated high of 11,200,000% in August 2008 according to the country's Central Statistical Office. This represented a state of hyperinflation, and the central bank introduced a new 100 billion dollar note.
On 29 January 2009, in an effort to counteract runaway inflation, acting Finance Minister Patrick Chinamasa announced that Zimbabweans will be permitted to use other, more stable currencies to do business, alongside the Zimbabwe dollar. In an effort to combat inflation and foster economic growth the Zimbabwean Dollar was suspended indefinitely on 12 April 2009. Zimbabwe now allows trade in the United States dollar and various other currencies such as the rand (South Africa), the pula (Botswana), the euro, and the Pound Sterling (UK).
Since the formation of the Unity Government in 2009, the Zimbabwean economy has been on the rebound. GDP grew by more than 5% in the years 2009 and 2011. In November 2010, the IMF described the Zimbabwean economy as "completing its second year of buoyant economic growth”.
Zimplats, the nation's largest platinum company, has proceeded with US$500 million in expansions and is also continuing a separate US$2 billion project, despite threats by Mugabe to nationalize the company. The pan-African investment bank IMARA released a favorable report in February 2011 on investment prospects in Zimbabwe, citing an improved revenue base and higher tax receipts.
In late January 2013, the Zimbabwean finance ministry reported that they had only $217 in their treasury and would apply for donations to finance the coming elections that are estimated to cost 107 million USD.
As of October 2014, Metallon Corporation was Zimbabwe's largest gold mine. The group is looking to increase its production to 500,000 ounces per annum by 2019.
|Robert Mugabe (President)||Asante M.K. (Author)|
The Zimbabwean dollar (sign: $, or Z$ to distinguish it from other dollar-denominated currencies) was the official currency of Zimbabwe from 1980 to 12 April 2009. During this time it was subject to periods of above average inflation, followed by a period of hyperinflation.
The Zimbabwe dollar was introduced in 1980 to directly replace the Rhodesian dollar at par (1:1) and at a similar value to the US dollar. Hyperinflation in Zimbabwe reduced it to one of the lowest valued currency units in the world. It was redenominated three times (in 2006, 2008 and 2009), with denominations up to a $100 trillion banknote. The final redenomination produced the "fourth dollar" (ZWL), which was worth 1025 ZWD (first dollars).
Use of the Zimbabwean dollar as an official currency was effectively abandoned on 12 April 2009. The Zimbabwean dollar was demonetized in 2015, with outstanding accounts able to be reimbursed until April 30, 2016.
Currencies such as the South African rand, Botswana pula, pound sterling, Indian rupee, euro, Japanese yen, Australian dollar, and the United States dollar are now used for all transactions in Zimbabwe. In December 2015, Zimbabwe added the Chinese yuan to its basket of currencies.
The Zimbabwean dollar's predecessor, the Rhodesian dollar, was essentially equal to half of a pound sterling when it was adopted during the decimalization of 1970, the same practice which was used in other Commonwealth countries such as South Africa, Australia, and New Zealand. The selection of the name was motivated by the fact that the reduced value of the new unit correlated more closely to the value of the US dollar than it did to the pound sterling. The first Zimbabwean dollar was introduced in 1980 and replaced the Rhodesian dollar at par. The initial ISO 4217 code was ZWD. At the time of its introduction, the Zimbabwean dollar was worth more than the U.S. dollar in the official exchange market, with 1 ZWD = 1.47 USD.
However, this value did not reflect reality. As a result, the currency's value, both in the official and parallel markets eroded rapidly over the years. On 26 July 2006, the parallel market value of the Zimbabwean dollar fell to Z$100=GB£1 Reserve bank governor Gideon Gono announced on 30 July 2008 that the Zimbabwean dollar would be redenominated. Effective 1 August 2008, ZW$10 billion would be worth ZW$1; the new currency code was ZWR. The planned denominations to be issued are coins valued Z$5, Z$10 and Z$25 and banknotes worth Z$5, Z$10, Z$20, Z$100 and Z$500. While the German firm of Giesecke & Devrient was no longer printing Zimbabwean currency, The Daily Telegraph reported that the new currency was printed before the relationship was severed and had been kept in storage since then. Due to frequent cash shortages and the worthless Zimbabwean dollar, foreign currency was effectively legalized as a de facto currency on 13 September 2008 via a special program to officially license a number of retailers to accept foreign money. This reflected the reality of the dollarization of the economy, with many shop keepers refusing to accept Zimbabwe dollars and requesting U.S. dollars or South African rand instead. Despite redenomination, the RBZ was forced to print banknotes of ever-higher values to keep up with surging inflation, with ten zeros reappearing by the end of 2008 On 2 February 2009, the RBZ announced that a further 12 zeros were to be taken off the currency, with 1,000,000,000,000 (third) Zimbabwe dollars being exchanged for 1 new (fourth) dollar. New banknotes were introduced with a face value of Z$1, Z$5, Z$10, Z$20, Z$50, Z$100 and Z$500. The banknotes of the fourth dollar circulated alongside the third dollar, which had to remain legal tender until 30 June 2009. The new currency code was ZWL.
By the end of 2009, the Zimbabwean dollar was reported to have become largely irrelevant, with the economy by then being almost completely dollarized. Even the national postal service, Zimpost, was said to be charging customer’s postage in US Dollars, even though some of the stamps were in Zimbabwean Dollar denomination. Zimbabwe finance minister, Tendai Biti, said in his first budget report, "The death of the Zimbabwe dollar is a reality we have to live with. Since October 2008 our national currency has become moribund.
In late January 2009, acting Finance Minister Patrick Chinamasa announced that all Zimbabweans would be allowed to conduct business in any currency as a response to the hyperinflation crisis. On 12 April 2009, media outlets reported that economic planning minister Elton Mangoma had announced the suspension of the local currency "for at least a year", effectively terminating the fourth dollar.
|National Song||"Simudzai Mureza WeZimbabwe"|
|Currency||United States dollar (USD)|
|GDP / GDP Rank||28.571 Billion USD|
|GDP Growth Rate||1.5 Percent|
|GDP Per Captial||$1970.258 (PPP)|
< 1.0% Muslims
< 1.0% Hindus
< 1.0% Buddhists
< 1.0% Jews
< 1.0% Other Religions
African 98% (Shona 82%
Mixed And Asian 1%
President – Emmerson Mnangagwa
|Website||Go to the web|
|Public Debt||75.318 Percent|
|Unemployment Rate||5.09 Percent|
|Labor Force (Occupation)||-|