Zimbabwe: Point of No or Full Return?

Via Public Radio’s excellent Marketplace program, an interesting look at investment interest in Zimbabwe, a country whose economy has been in free fall since 2000 when Mugabe endorsed a violent land seizure program and where, today, four out of five adults are unemployed and the inflation rate tops 165,000 percent.  As the interview notes:

“…During Mugabe’s 28-year tenure, most international investors have left Zimbabwe. One reason: Unstable fiscal policies make for meager profits. Another: Fear of being associated with Mugabe’s regime and its alleged human rights abuses…

…But observers say that’s changing. They say Zimbabwe is in endgame because no government in modern history has debased its currency this much and survived. And that’s getting investors excited about Zimbabwe’s potential.

The country’s bigger than Montana and has everything: Prime agricultural land, 12 million people, which means new markets for banking and telecommunications and, of course, commodities…

…Red-hot commodity prices are fueling growth. Platinum prices alone have climbed 90 percent since the beginning of last year and African stock markets are on fire from Ghana to Botswana….”

This entry was posted on Sunday, June 29th, 2008 at 10:57 am and is filed under Zimbabwe.  You can follow any responses to this entry through the RSS 2.0 feed.  Both comments and pings are currently closed. 

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Wildcats & Black Sheep is a personal interest blog dedicated to the identification and evaluation of maverick investment opportunities arising in frontier - and, what some may consider to be, “rogue” or “black sheep” - markets around the world.

Focusing primarily on The New Seven Sisters - the largely state owned petroleum companies from the emerging world that have become key players in the oil & gas industry as identified by Carola Hoyos, Chief Energy Correspondent for The Financial Times - but spanning other nascent opportunities around the globe that may hold potential in the years ahead, Wildcats & Black Sheep is a place for the adventurous to contemplate & evaluate the emerging markets of tomorrow.