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Zimbabwe

Zimbabwe

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The Republic of Zimbabwe, population 12.5 million, is a landlocked country in central southern Africa.  Its land area (150,700 sq. mi.) is approximately the size of Montana.  It is bordered by Zambia, Botswana, South Africa and Mozambique.  Harare, the capital and largest city, has a population of 1.5 million and is located in the northeastern area of the country.

U.S. relations with Zimbabwe are by far the least cordial of any in southern Africa.  Since 2000, the United States has taken a leading role in condemning the Zimbabwean Government’s increasing assault on human rights and the rule of law, and has joined much of the world community in calling for the Government of Zimbabwe to embrace a peaceful democratic evolution. In 2002 and 2003, the United States imposed targeted measures on the Government of Zimbabwe, including financial and visa sanctions against selected individuals, a ban on transfers of defense items and services, and a suspension of non-humanitarian government-to-government assistance. Despite strained political relations, the United States continues as a leading provider of humanitarian assistance to the people of Zimbabwe, providing about $300 million in humanitarian assistance from 2002-2004, most of which was food aid.

Properly managed, Zimbabwe's wide range of resources should enable it to support sustained economic growth. The country has an important percentage of the world's known reserves of metallurgical-grade chromite. Other commercial mineral deposits include coal, platinum, asbestos, copper, nickel, gold, and iron ore.

Since the mid-1990s, Zimbabwe’s infrastructure has been deteriorating rapidly, but remains better than that of most African countries. Poor management of the economy and political turmoil have led to considerable economic hardship. The Government of Zimbabwe's chaotic land reform program, recurrent interference with the judiciary, and maintenance of unrealistic price controls and exchange rates have led to a sharp drop in investor confidence. Since 2000, the national economy has contracted by as much as 35%; inflation vaulted over 1200% (YOY) in August 2006; and there have been persistent shortages of foreign exchange, local currency, fuel, and food. Direct foreign investment has all but evaporated.

Agriculture is no longer the backbone of the Zimbabwean economy. Large scale commercial farming has been effectively destroyed over the course of the last five years under the government's controversial land reform efforts starting in 2000. The largest industries are metal products, food processing, chemicals, textiles, clothing, furniture and plastic goods. Most manufacturers have sharply scaled back operations. Zimbabwe is not a member of the African Growth and Opportunity Act and a number of textile businesses have migrated to other African countries.

With international attractions such as Victoria Falls, the Great Zimbabwe stone ruins, Lake Kariba, and extensive wildlife, tourism historically has been a significant segment of the economy and contributor of foreign exchange. The sector has contracted sharply since 1999, however, due to the country’s declining international image. The U.S. Government has a travel warning in effect.

For more information on this or other trade and investment matters please contact us at:

Frances Chisholm, Economic Officer email: ChisholmFM@N0SPAM.state.gov ,

Joseph Muzulu, Commercial Specialist, E-mail:JosephM@N0SPAM.state.gov , Tel: +(263) 4 250 593/4, Fax: +(263) 4 250 000, 172 Herbert Chitepo Avenue, Harare, Zimbabwe, http://harare.usembassy.gov

Support can also be provided by the U.S. Commercial Service South Africa. Please contact Senior Commercial Officer (SCO) Craig Allen via e-mail at Craig.Allen@N0SPAM.mail.doc.gov or telephone at +27 11 778 4813 for additional information or other opportunities in Southern Africa