The adoption of a power-sharing agreement in September 2008 between the main political parties within Zimbabwe, and the subsequent appointment of an inclusive transitional government led jointly by President Robert Mugabe and Prime Minister Morgan Tsvangirai represented a defining moment in Zimbabwe’s transition to a democratic constitutional order. Most foreign investors feel the country is moving in the right direction despite the hiccups in implementing the coalition agreement.  
 
It is against this background that Omega Investment Research organised a Mining in Zimbabwe Investment Conference in London on 23 June.  Prime minister Morgan Tsvangirai made an excellent impression in his key note address to participants. The Mining in Zimbabwe Investment Conference in Johannesburg that followed in early August was also highly successful.

Research by Omega shows that foreign investment is not limited to mining but applies across all sectors of the fairly diverse economy.  The result is the Zimbabwe Trade & Investment Exchange in Johannesburg on 16-17 November.  Given the fact that this is really a business-to-business event, it provides both Zimbabwe and southern African countries the chance of exploring mutual business opportunities.

Given its highly well-educated and skilled population, and numerous resources, Zimbabwe is a critical country to Mozambique, Angola, Namibia, Malawi, Zambia, South Africa and the DRC.

That there have been improvements in the economic situation and therefore the business climate in Zimbabwe is an acknowledged fact.  Imara Group CEO Mark Tunmer notes of a visit to Harare by forty international fund managers from the USA, UK, Europe and various African jurisdictions that.

“In the ten weeks since that watershed seminar, progress has been phenomenally rapid.  Dollarisation of the economy meant companies started afresh with zero cash on their balance sheets, but now there is real demand in currency that has real value and business has taken off.  Economics is not waiting for politics and investors to see the advantage of early involvement,” said Tunmer.

So while this conference is certainly justified from an economic point of view, the question might be asked - is it justified from a political point of view, given that the country is still beset with major problems particularly relating to the interpretation of the inclusive government agreement?

We believe the change is inevitable and irreversible, and if the Trade and Investment Exchange has any political impact, it will be to advance existing positive trends in Zimbabwe.  It will also add pressure on the South African government to adopt a more active and aggressive approach in respect to change in Zimbabwe – something that Omega has been propagating since September 2008. 

Worrall is the chairman of Omega Investment Research (Pty) Ltd and former South African ambassador to Australia and the Court of St James’s.