/ 10 July 2007

SA expresses concern over Zim meltdown

The Southern African Development Community (SADC) should step in to save the deteriorating economy of Zimbabwe, South Africa’s minister of foreign affairs said on Tuesday.

”We are concerned about the situation in Zimbabwe and its economic situation, which has been deteriorating,” Nkosazana Dlamini-Zuma said in Pretoria.

”The problematic economy in Zimbabwe means that SADC as a region and South Africa in particular will, or already, feel the consequences.

”That is why we must do our best to revitalise and restart the economy for the benefit of Zimbabwe and the region.”

Dlamini-Zuma was speaking to reporters shortly after holding talks with Massimo D’Alema, Italy’s Deputy Prime Minister.

She said it was the economic and political meltdown that led SADC to facilitate talks between President Robert Mugabe’s Zanu-PF party and the opposition, which would help resuscitate the impoverished country’s economy.

”It is difficult to rebuild an economy where there is severe division and polarisation. It is important that on all fronts the economy is regenerated,” she added without specifying the actions needed to be taken.

D’Alema added that the solution to the Zimbabwe issue was important to bridge divisions over the invitation of Zimbabwe to the European-African summit planned for Portugal in December

”We must overcome the Zimbabwe issue, which is holding hostage the convening of the summit, and has been holding it hostage for many years [since the last one was held in 2000],” he said.

”But we remain confident in the initiatives of [South African] President Thabo Mbeki in resolving the issue. We must come to the summit without any obstacles.”

Zimbabwe’s economic crisis is characterised by shortages of basic foodstuffs like cooking oil and sugar, and massive unemployment.

Job losses

Meanwhile, Zimbabwe’s main trade union body warned on Tuesday that huge job losses were likely to be caused by Mugabe’s blitz on prices.

Wellington Chibebe, secretary general of the Zimbabwe Congress of Trade Unions, said the last few days’ clampdown on shops and businesses hiking prices was only bringing false hope to ordinary Zimbabweans.

Since last Thursday, jubilant shoppers have cleared shop shelves of goods like orange juice, flour and sugar after price inspectors ordered price slashes.

Mugabe (83) had accused the businesses of colluding with the West and the opposition Movement for Democratic Change (MDC) in a bid to bring about regime change.

But now shop shelves are all but empty and workers are going to waste precious time and scarce money looking for goods, Chibebe warned in a statement.

The trade unions leader accused the government of creating chaos and called on workers to prepare for action.

The Zimbabwe Congress of Trade Unions is becoming increasingly concerned by imminent job losses caused by the unprecedented move by the government to cut prices indiscriminately of all commodities, including clothing, Chibebe said.

Already industry had been performing at only 20% of capacity, and the chaos would further worsen the situation. — AFP, Sapa-dpa