In a report titled Zimbabwe Business Forecast: Third Quarter, Business Monitor International described the succession battle in the former ruling party as fierce.
“The political situation in Zimbabwe is very fluid and difficult to predict. If there are positive developments politically, our forecasts for economic growth would be rendered too low. On the other hand, if things unravel due to a vicious battle to succeed President Mugabe at the helm of Zanu (PF), the economy could easily slide back into recession,” the company said.
Two camps, one headed by Vice President Joice Mujuru and another by Defence Minister Emmerson Mnangagwa, are involved in a struggle to wrest power from Mugabe, who has led the country for the past 31 years and is largely blamed for Zimbabwe’s economic and political problems.
BMI blamed the Zimbabwean government of scarring away potential investors. The tense political atmosphere ahead of the next general election was also impacting negatively on attracting investors, it said.
“The rate of economic expansion is constrained by a lack of capital as foreigners are being deterred from investing in the country due to concerns over the political environment,” added BMI.Post published in: News