Alarming disconnect between Zimbabwe banking sector and its customers

Chido Makunike

Zimbabwean banks and their customers might as well be on different planets about their ideas about what is minimally acceptable service. While banks have previously been firmly in the driver's seat in this regard, recent and growing political and public pressure on them is shifting the power dynamics somewhat, with the customers' concerns at least getting more of a public airing than before. However, the banks remain largely tone-deaf to the reasons for so much public disgruntlement with their levels of service.

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What the Affirmative Action Group fails to understand about banks

The Affirmative Action Group is a 'pressure group' for 'economic empowerment.' As such, a big part of their reason for existence is just to be provocative, to make various parts of what can be considered 'the establishment' (government, banks, industry, etc) squirm. At this rabble-rousing role the AAG is very effective. As the claimed representatives of a section of aspiring entrepreneurs, they more broadly seek to make the general operating environment more favorable for up-and-coming businesspeople. That necessarily means a big part of the AAG's focus is on access to finance. Their expressed thoughts on this matter suggest that they may have completely unrealistic expectations about this issue.

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Are Zimbabwe's 'liquidity challenges' real or a mental construct?

'Liquidity crunch' is probably the most fashionable expression in Zimbabwe at the moment. Certainly it is probably true that one hears many people talk about how hard it easy to get hold of (earn) money in the now U.S.dollar-denominated economy. But is the 'liquidity crunch' the problem, or is merely a symptom of deeper, larger problems?

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The missing links in Zimbabwe’s drive for a successful China-like State capitalism

by Chido Makunike

Today’s China is perhaps the most successful example of ‘State capitalism.’ There are those who caution that the model is not all it seems, and that it is not sustainable. Even if that were the case, there is no doubt that China has become a dynamic global economic power under a type of controlled free market economy largely run by the State. Why has China’s model of State capitalism worked, while those of countries like Zimbabwe flounder?

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No loans to actual farmers in Agribank’s ‘very good loan book’

 Agribank seems to have pulled off the neat trick of 'supporting agriculture,' but very carefully avoiding lending to the people who actually work the land; farmers.

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ZANU-PF’ ‘empowerment, MDC’s ‘more investment’ need not be seen as contradictory

ZANU-PF and the MDC will start 2012 with a heightened awareness that a crucial election for them and for the country is not far away, whatever the final dates will be. As the parties sell themselves to the voters, it has become clear that their visions of how to bring about an economically prosperous Zimbabwe are starkly different. But are ‘empowerment’ and ‘attracting investment’ best thought of as opposing philosophies, or as two sides of the same coin?

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Zimbabwe, world: start preparing for a Chinese yuan in your future

With China’s dramatic economic rise and spreading global influence, there are increasing discussions about how its currency, the yuan. will influence world financial markets and trade. In Zimbabwe, where the local currency was abandoned to kill hyperinflation and replaced with a multi-currency regime, proposals by some to add the yuan have been met with surprising heat and emotion.

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Policy lags behind reality as GM foods flood into Zimbabwe and public calls for official acceptance increase

by Chido Makunike

During a severe drought-caused period of maize deficit more than a decade or so ago, Zimbabwe was confronted with the choice to accept or reject donated genetically modified food aid. The government chose to maintain its stance opposing the importation of GM maize as grain, but compromised on allowing it in if it was milled first; as ready-to-use flour. In recent years there have been significantly increased levels of importation of various processed food products known to have a GM component. This is making the official anti-GM policy look increasingly untenable. But as public calls for a revision of the policy increase, a new danger may be an unrealistic expectation of the benefits that GM crops can deliver in a political and economic environment where many of the structural issues that have caused such a steep decline in Zimbabwe’s agriculture remain un-addressed.

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The pluses and minuses of Zimbabwe's special relationship with China

Zimbabwe is just one of many African countries whose economic ties to China are booming. But Zimbabwe is different in being one of the few with particularly poor relations with the West. One benefit of this for China is that it does not have to worry about the threat of serious competition from the West for Zimbabwean resources and opportunities. A drawback for Zimbabwe is that it may lose some leverage to negotiate the best deals, even with the Chinese, by being seen to have no other options.

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Does Kimberly Process certification of Zimbabwe's Marange diamonds end the controversy?

After much controversy and contention, the Kimberly Process diamond certification scheme has lifted its sanctions on the sale of stones from the Marange diamond fields. This will have a significant effect on Zimbabwe’s battered economy, but the overall controversy over Marange is unlikely to end soon.

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PR gaffes compound Air Zimbabwe's many problems

Just when you think things can't get any worse for Air Zimbabwe, they do. Unfortunately for the 'national carrier,' their problems can no longer be solved just be an injection of money to pay off dead and invest in new planes. The airline's reputation is in tatters and the shareholding, board and management seem in panic mode, which just makes them commit even more gaffes.

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Are Econet and ZANU-PF two sides of the depressingly same Zimbabwean customer care coin?

It seems that in Zimbabwe the market leaders in virtually any business segment rarely also have the affection of their customers. Think of the uncontested political dominance ZANU-PF enjoyed for many years, which they rewarded by turning large parts of the overwhelming support for them into fear and loathing amongst many. Think of the rage with which many Zimbabweans think of the service of electricity monopoly ZESA. Think of how little real public sympathy and support struggling Air Zimbabwe enjoys. Is leading telecommunications service provider Econet moving in this same direction with regards to public feeling about them?

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Air Zimbabwe's institutional problems, painfully on public display

There may be only a tiny percentage of Zimbabweans who have any chance of being passengers of Air Zimbabwe, but surely all would want it do well. It carries the country's name, which once brought pride to all when it was doing well, and causes every Zimbabwean shame when it is floundering the way it is doing. Its biggest, most obvious problems are well known. Two brief articles in the state media unwittingly bring to light many of the other not so obvious problems that sadly plague Air Zimbabwe.

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Strange goings on at Air Zimbabwe

Air Zimbabwe has been on the deathbed for years now, with occasional periods of what look like resuscitation before the 'national airline' goes back to close to being comatose again. With hundreds of millions of dollars in debt it has no hope of paying and its pilots on the latest of many strikes, it has just been announced that the carrier is acquiring two new Airbus jets. What is going on at Air Zimbabwe?

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The deeper significance of foreign investor interest in TelOne and NetOne

The rhetoric from some of  Zimbabwe's politicians sends very mixed signals about how welcoming the country is to foreign investment. Actual events suggest that there has been a sea-change in government thinking about how to move the country forward economically which many observers have overlooked. 

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Zimbabweans' mixed feelings about growing relation with China

For the Mugabe government, its relations with China have been a lifeline during its toughest times since coming to power. For ordinary Zimbabweans the close and growing ties with China are a much more mixed blessing.

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Internet service improving in Zimbabwe, but still ridiculously expensive

The retarded development of an efficient, affordable internet infrastructure is one of the many ways that Zimbabwe has fallen behind many others during its 'lost decade.' For some years now difficult access, excrutiatingly slow speeds and high costs have been the norm. These have been compounded by indifferent service from ISPs and the country's frequent power cuts.

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Attitudes to foreign investment: South Africa vs. Zimbabwe

U.S. based retail giant Walmart has just won the South African regulatory authority's go-ahead to buy a major stake in one of that country's biggest chains. There are concerns about what effect such a big new global player in the retail industry will have on employment and the ability to stay in business of small players in the retail value chain. The regulatory body says it has taken these issues into account in the conditions it has laid down for the entry of Walmart into South Africa.

The very different approach to foreign investment of neighbours South Africa and Zimbabwe is striking. 

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Zimbabwe finally to emerge from internet dark ages

One of the clearest and most frustrating signs of how Zimbabwe's decade of economic turmoil has held the country back is the shockingly poor, slow and expensive internet service.

It is startling to be in smart and modern internet cafe in downtown Harare and have levels of connectivity that are far below what one would find in some decrepit internet rooms in much poorer and 'less advanced' countries. Cellphone service has improved a lot in recent years but is still below par.

All this may be about to change following news that the landlocked southern African state is on the verge of being wired to the rest of the world through an undersea cable.

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Zimbabwe tourism makes a comeback

During Zimbabwe's past 'lost decade' of political and economic turmoil tourism suffered as much as any other economic sphere. It might have suffered even more than other parts of the economy, being even more sensitive to the massive bad global publicity Zimbabwe has received in recent years. Tourists might have never been in any danger during that time, but the damage in the country's reputation was enough to scare off many people, even when ridiculous levels of local currency hyperinflation for a while made visiting it with hard currency an exceptionally good value for those brave souls who were willing to venture there then. Widely publicized shots of long fuel queues and empty supermarket shelves would not have helped and tourist arrivals plunged.

Political uncertainties remain but Zimbabwe is now on a firm recovery path.

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