As you know, the current financial crisis in Zimbabwe is devastating its economy. Between the misguided US sanctions on private individuals in Zimbabwe and the poor management and policies of the Zimbabwean government, the people of Zimbabwe find themselves in dire straits.
My friends in Zimbabwe are highly educated professionals. However, they rely on friends and supporters to send them money so they can eat. Companies and professionals that have been in business for years are closing at rates never seen before. The domino effect is in full force and hardly anyone has cash. People have no idea what to do. No one I’ve talked to has much hope of any relief anytime soon.
Foreign investors will not open new companies when they are required to name a black Zimbabwean as the owner of 51% of the company. The sanctions imposed by the United States and others to punish the Zimbabwean government do little or nothing to the government, but they have drained the wealth of the common person. Anti-American sentiment is not hard to find and this American is perplexed that our representatives (from both parties) have so little understanding of how things really work in Africa.
There is some good news. The Zimbabwean government became aware of the corruption within the diamond industry and mining sector and did a complete sweep and clean house. Almost everyone who had a chance to get corrupted was replaced. The two gentlemen who now head the MMCZ are men of stellar reputations and I am told that they are incorruptible. My contacts at MMCZ were delighted with their appointments and I believe that the future of MMCZ and the Zimbabwean diamond sector are in good hands.
For those who were turned down by the previous managers at the MMCZ, I recommend you give these new guys a chance. Zimbabwean tenders will be conducted fairly and those who are accepted as MMCZ customers will have every opportunity to purchase Zim products. One word of warning, although the MMCZ is keeping a very close eye on the mines, there is likely to be some diversion of some of the best goods. However, with the new procedures, this will be very difficult and will probably be on a very small scale. The MMCZ will deny that anyone can do this, but my experience in this tired old world is that there will always be someone who can game the system.