Zimbabwe

The Republic of Zimbabwe is a country located in the southern part of the continent of Africa, between the Zambezi and Limpopo rivers. It is bordered by South Africa to the south, Botswana to the west, Zambia to the north and Mozambique to the east

Economy

Main article: Economy of Zimbabwe

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The government of Zimbabwe faces a wide variety of difficult economic problems as it struggles to consolidate earlier progress in developing a market-oriented economy. Its involvement in the war in the Democratic Republic of the Congo, for example, drained hundreds of millions of dollars from the economy. Badly needed support from the IMF suffers delays in part because of the country's failure to meet budgetary goals. Inflation rose from an annual rate of 32% in 1998 to 59% in 1999 and to 600% in 2003. The economy is being steadily weakened by AIDS; Zimbabwe has the highest rate of infection in the world which is a major problem for the country.

Related Topics:
Zimbabwe - Market-oriented economy - Democratic Republic of the Congo - IMF - Inflation - 1998 - 1999 - 2003 - AIDS

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The destruction of much of Zimbabwe's agricultural base through the seizing of mainly white-owned farms throughout 1999 and 2000 has ruined the Zimbabwean economy. Many of the dispossessed Zimbabwean farmers moved to neighbouring southern African countries. The political situation makes it unlikely that the West will be inclined to do much more than provide humanitarian assistance.

Related Topics:
1999 - 2000

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The lack of foreign exchange, as well as the difference between the official exchange rate have resulted in fuel, electric power and water shortages and a lack of other basic supplies. In 2003 Libya supplied fuel, partially in exchange for land, but Zimbabwe could not meet the basic payments, and supplies have since stopped. In 2004 a system of auctioning scarce foreign currency for importers was introduced, which temporarily lead to a slight reduction in the foreign currency crisis, but by mid 2005 foreign currency shortages were once again chronic. The currency was devalued by the central bank twice, first to 9,000 to the US$, and then to 17,500 to the US$ on 20 July, but at that date it was reported that that was only half the rate available on the black market.

Related Topics:
Foreign exchange - Exchange rate - 2003 - Libya - 2004 - Black market

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In July 2005 Zimbabwe was reported to be appealing to the South African government for US$ 1 billion of emergency loans. On 26 July 2005 it was also reported that Zimbabwe had agreed a trade deal with China, providing mineral and other concessions in exchange for economic aid; details of the agreement were not made public.

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