South African businesses operating in Zimbabwe are on high alert as political instability in that country continues.
Nedbank Group has sent some South African employees home from Zimbabwe. It says while its operations in Zimbabwe remain open and active, it will take appropriate steps if required to ensure the safety of its workers. There are fears that the recent developments in Zimbabwe may impact its already fragile economy negatively.
The South African Institute of International Relations says this uncertainty casts doubt on whether businesses can move their goods freely between the borders. The Zimbabwean economy relies heavily on informal trading where most traders import goods from South Africa. The institute says informal cross border trade is also likely to be negatively impacted on.
The weakening rand has made South African products attractive for Zimbabweans who would otherwise not be able to afford imported goods especially in light of their own economic downturn. Nearly 120 South African companies are currently operating in Zimbabwe. The Consumer Goods Council of South Africa says its members who are invested in Zimbabwe are trading normally.
Some of its members include grocery retailers Pick and Pay and Shoprite. Analysts predict that fresh elections may be imminent and this will likely give direction on how trade between South Africa and Zimbabwe will continue. This fresh crisis has injected gains into new virtual currency Bitcoin in Zimbabwe.
The South African Chamber of Commerce and Industry says local businesses trading with Zimbabwe have adopted a cautious approach.
SACCI CEO Allan Mukoki says some local companies have suspended the movements of goods between the two countries until they’re fully aware of the situation in Zimbabwe.
