The shortage of foreign currency and the accumulation of arrears is discouraging foreign investment as investors are unable to repatriate their dividends.
The Merchant Bank of Central Africa (MBCA) says after two years of negative growth charactised by critical shortages of foreign currency, fuel and basic foodstuffs, high inflation and unemployment, it is hoped 2003 might usher a recognition for the need for a coherent and dynamic macro-economic policy framework.
Metropolitan Bank, which has been a strong advocate for land reform, says thousands of previously disadvantaged Zimbabweans who have been empowered by the land reform programme have the capacity to utilise the land productively and contribute to the government’s efforts to improve national economic performance.
Interfin Holdings, a financial services group which incorporates merchant banking, insurance, consumer finance, stockbroking and asset management, had a net profit of $3.6 billion, a 1 663 percent increase from the $207 million it recorded in 2001.
Century Holdings, another financial services company which is expanding into the region, saw its International Transfer company in Botswana make a loss of $55 million but it says this was largely because the operation was a start up, but overall it made a net profit of $352.4 million.