Zimbabwe: Young Entrepreneurs in the Middle of Sanctions
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It has been twenty years since economic sanctions were imposed on Zimbabwe by the European Union, United States, and Britain. International organizations have argued that the sanctions are "intended to pressure and isolate those most responsible for political violence and the collapse of Zimbabwe's economy."
Twenty years on, opinions are divided over the actual impacts of sanctions in Zimbabwe. In September 2022, for instance, Michelle Gavin, a Ralph Bunche Senior Fellow for Africa Policy Studies at the Council on Foreign Relations, said Zimbabwe’s sanctions have become a "smokescreen" that obscures "the real crisis in Zimbabwe."
"Sanctions serve as a handy scapegoat for those elites, who often mischaracterize them as a blanket ban on trade and investment in Zimbabwe and assert that these restrictions, rather than their own mismanagement, are to blame for the country’s troubles," Gavin stated.
An International Monetary Fund (IMF) team led by Wojciech Maliszewski that visited Harare in late October 2023 to discuss economic developments in the country also noted that enhancing the country's longer-term growth potential would require "strong reform efforts."
The IMF requests that Zimbabwe must agree on a comprehensive restructuring of its external debt, including clearance of debt arrears.
"A reform plan that is consistent with durably restoring macroeconomic stability, enhancing inclusive growth, lowering poverty, and strengthening economic governance is required," it stated, noting that the "IMF is precluded from providing financial support to Zimbabwe due to unsustainable debt and official external arrears."
How have these sanctions and lack of access to external borrowing affected indigenous businesses in Zimbabwe? What are the challenges facing young entrepreneurs operating in Zimbabwe?
In this episode, Africanist Press interviews business strategist and economist, Takavada Makuve on the challenges of doing business in today's Zimbabwe.
Makuve is founder and managing director of Weavers Connect, a business consultancy that assists young entrepreneurs and emerging businesses in South Africa and Zimbabwe to craft business models and growth strategies to address daily operational challenges.
In this episode, Makuve shares his views on Zimbabwe's economic climate, highlighting challenges young entrepreneurs face as they build sustainable business in the country. He also talks about sanctions and their impacts on Zimbabwe's investment prospects.
This interview was conducted by Tipei Lorata Dube in Gweru, Zimbabwe.
This episode is part of a new Africanist Press Series on Zimbabwe that examines the impact of economic sanctions on various sectors of the population, and how communities and individuals in the country have developed independent initiatives in response to everyday challenges.
