/ 30 March 2003

SA big business could help Zim

Zimbabwe is in a dire economic crisis and South Africa’s government and businesses must help it rebuild, a meeting among President Thabo Mbeki and high powered industry leaders concluded Saturday.

”There was good discussion about Zimbabwe and the South African government’s approach to that country,” said Trade Minister Alec Erwin at the end of the forum in George, in the Western Cape province.

”Business and government exchanged analysis on Zimbabwe and agreed that the economic crisis there was very severe. It is clear that the two will have to work together to help Zimbabwe overcome the crisis.”

Erwin did not give details of how Zimbabwe would be helped.

Mbeki and senior government officials including Erwin and Finance Minister Trevor Manuel met for two days with 20 chief executives and chairmen of some of South Africa’s largest companies as part of the government’s Big Business Working Group (BBWG).

Mbeki has been regularly criticised by the media and business for his policy of ”quiet diplomacy” toward Zimbabwe. Recently, however, he has become more vocal by criticising President Robert Mugabe’s government, notorious for its human rights abuses, for not allowing people to hold peaceful protests.

Erwin said the Iraqi war and its effect on Africa and programmes like the New Partnership for African Development (Nepad) were discussed informally.

Earlier this week Mbeki warned that the war in Iraq could push Africa down the world’s agenda.

”We will have to rely on ourselves, our own resources and our own efforts,” he said.

Mbeki has been a strong proponent of the Nepad, drawn up by African leaders to encourage self-reliance, reduce poverty, boost democracy and encourage sustainable growth in return for increased trade and aid from the developed world.

Erwin said the relationship between government and business had improved significantly, adding there was a need for deeper consultations on the government’s long-term strategies that would affect growth, development and employment creation.

”Representatives of the BBWG have indicated that they are broadly satisfied with government’s macroeconomic policies. But both parties agreed that there was scope for deeper consultations on long-term strategies that could contribute effectively to raising the rate of growth, development and employment creation.” ‒ Sapa-AFP