Business in Africa Executive Summary

The report examines the economic relationship between South Africa and Zimbabwe, highlighting that while strong business ties persist, South African firms face significant operational hurdles. These include hyperinflation, foreign currency shortages, erratic government policy, and a shrinking domestic market. The document also notes the impact of 'quiet diplomacy' by the South African government and the resulting exposure of companies due to the lack of a signed trade and investment protection agreement.

• South African companies maintain a presence in Zimbabwe despite economic instability, often 'ringfencing' their operations to isolate financial risks from their parent groups. However, the absence of a signed trade and investment protection agreement between South Africa and Zimbabwe leaves these companies feeling vulnerable to nationalisation of assets and erratic economic policies.
• Hyperinflation and erratic government policy decisions have severely hindered long-term business planning, forcing companies to adjust salaries and costs on a monthly or quarterly basis. Additionally, government price controls have rendered some products unviable because companies must pay market-related input costs but cannot charge market-related prices.
• Critical shortages of foreign currency prevent many companies from repatriating dividends, although some can cover import needs using a portion of their export earnings. The Reserve Bank's role has also become confusing as it has taken on functions that put it in competition with commercial banks.
• Operational capacity is being eroded by a shrinking domestic market, fuel shortages, frequent power cuts, and a declining skills pool caused by massive migration and high HIV/Aids infection rates.
• Business environments are further complicated by increasing pressure for indigenisation, a lack of local equity partners, rising sophisticated crime (including armed robbery and hijacking), and corruption specifically linked to government officials.

APA

South African Institute of International Affairs (n.d.). Business in Africa Executive Summary. https://saiia.org.za/wp-content/uploads/2013/06/biap_rep_08_zim_exec_summary.pdf

Chicago

South African Institute of International Affairs. Business in Africa Executive Summary. n.d. https://saiia.org.za/wp-content/uploads/2013/06/biap_rep_08_zim_exec_summary.pdf.

Wikipedia

{{cite report |author=South African Institute of International Affairs |title=Business in Africa Executive Summary |url=https://saiia.org.za/wp-content/uploads/2013/06/biap_rep_08_zim_exec_summary.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{southafricaninstituteofinternationalaffairsndbusiness, author = {{South African Institute of International Affairs}}, title = {{Business in Africa Executive Summary}}, institution = {South African Institute of International Affairs}, url = {https://saiia.org.za/wp-content/uploads/2013/06/biap_rep_08_zim_exec_summary.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }