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The news coming from the Western press about Zimbabwe leaves little to be desired about the contry. President Robert Mugabe, Zimbabwe’s leader since 1980, has been called many things — from enigmatic despot to educated visionary. Both descriptions may be fitting at times, depending on the political perspective one adheres to.
The Zimbabwe economy has seen rough days. Hyperinflation decimated the economy, particularly between 2005 to 2008. At its peak, the Zimbabwean Central Bank issued currency with expiration dates of six months, effectively longer than the actual life of the currency.
During this time, the American dollar replaced the Zimbabwean dollar as the country’s main currency, a status most investors expect Zimbabwe to hold for the next few years.
The economic story should put investors off, but the history of the country is not necessarily its future. GDP contracted by more than 38 percent between 2000 and 2008, and culminated with the post-election violence of 2008.
Here are my recommendations (in no particular order of importance, or of potential internal rate of return (IRR)) for investors looking to play a role in the growing change on the ground: Read full article
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