Recently Zimbabwean business leaders met President Robert Mugabe in an attempt to persuade him to halt a crackdown that is ruining the country’s economy.
This is the first meeting between business and Mugabe since he ordered a 50% cut in prices in June, causing a massive shortage of goods and deepening the country’s economic crisis.
Mugabe rarely meets business leaders, whom he frequently accuses of funding his opponents and being part of a Western plot to overthrow his government. Business leaders, therefore, interpret this rare meeting, held late on Monday, as a major breakthrough.
After meeting with Mugabe for five hours at his official residence, business leaders emerged with promises that government would “consider” their proposals, but with little in the way of concrete pledges for reform, sources who attended the meeting said.
The business delegation included the heads of some of the largest commercial groups, including the Confederation of Zimbabwe Industries, the Zimbabwe National Chamber of Commerce and the Chamber of Mines. There was no official comment from any of the business people who attended.
However, one source who attended the meeting said Mugabe had been presented with a document detailing measures that private business believes must be taken immediately if the economy is to be pulled back from the brink. Key among the recommendations is an end to all controls — including on prices and currency exchange rates.
There were also suggestions that business, labour and government return to the negotiating table to reach a new agreement to replace a June 1 “social contract”. The June deal was seen as dead the moment it was signed, after the country’s main labour federation refused to back key proposals and government accused businesses of deliberately stoking inflation.
Industry and Trade Minister Obert Mpofu, who has been leading the onslaught on business, and a senior team of his price control unit also attended the meeting. Also at the meeting was Mugabe’s deputy, Joyce Mujuru, who has her own vast commercial interests, and has in the past appeared sympathetic to business.
At the end of the meeting Mugabe is said to have told his officials to “take note” of the proposals presented to him. There was no sign, however, that he was ready to relent entirely on his clampdown.
“The president sat quietly and listened attentively for much of the meeting. His officials did most of the talking,” one official who attended said. “He was very smart about it. He gave hints he was ready to compromise, but he’s not giving away too much either. So we will wait and see how they respond over the next few days.”
This week, government appeared unsure about the direction it wanted its campaign to take next.
Mpofu backed down from an earlier order scrapping a private fuel supply system that has kept many large businesses and NGOs operational. There was also hesitation about carrying out a threat to drive the crusade into rural areas.
And there was fresh criticism of the crackdown by Reserve Bank Governor Gideon Gono, who warned against suggestions that banks should be forced to cut bank charges and lending rates.