South African companies are cashing in on Zimbabwe’s economic turmoil, boosting investments and expanding their operations despite deepening hardships, a human rights group said on Tuesday.
The South Africa-registered Solidarity Peace Trust (SPT) said that South African companies are riding out the economic crisis in the hope of making big profits if stability returns to Zimbabwe, once one of Africa’s most prosperous countries.
”Clearly South African companies have in a sense cashed in on the crisis … and therefore one would need to ask what South African companies have been doing in terms of trying to resolve the crisis,” Brian Raftopolous, SPT director of research and advocacy, told a news conference.
Speaking at the launch of an SPT report, he suggested South African companies have the economic muscle to influence regional mediation efforts aimed at easing Zimbabwe’s suffering.
South African President Thabo Mbeki has been spearheading regional mediation efforts between Zimbabwean leader Robert Mugabe and the opposition ahead of March 2008 presidential and parliamentary elections. Regional countries report progress, but Western diplomats say little headway has been made.
The SPT is an NGO chaired by Pius Ncube, a former Zimbabwean archbishop and fierce Mugabe critic. Ncube resigned from his church post last month after allegations of adultery that he said were orchestrated by the state to prevent him speaking out on human rights.
”As the economic and political crisis in Zimbabwe has deepened, there are clear indications that the crisis has offered new opportunities for South African business to extend its influence in the country,” said the SPT.
”It is clear that the growing evidence of South African business concerns exploiting the conditions of the Zimbabwean crisis has to be looked at more carefully in terms of its ongoing effects on South Africa’s strategy on Zimbabwe.”
South African company officials have said they are struggling to operate in Zimbabwe, with government price controls making the country an even harder place to do business.
Mugabe’s ruling party has also pushed a Bill through Parliament that will give locals a controlling stake in foreign companies, which analysts say could further hurt the economy.
Economic turmoil has forced millions of Zimbabweans to flee to neighbouring countries, mostly South Africa. But many find it hard to find jobs in the country, Africa’s biggest economy. — Reuters