Question

Examine the perceived benefits to be accrued from the new path that has been taken by Zimbabwe in international relations

Answer 1

Zimbabwean exporters have been to some degree frustrated because of imperatives in outside trade accessibility with the potential accomplices. The memorable difference in government in South Africa has empowered venture and exchange between the 2 nations, however, the general outcome has been that South Africa has taken a significantly bigger offer of Zimbabwe's local market following the current increase in trade liberalization.

Exports of products and enterprises developed by around 6.3 percent a year in the vicinity of 1965 and 1997 and made exports represented more than 32 percent of aggregate merchandise exports in 1997.

Answer 2

After the change in government in November 1917, Zimbabwe embarked on a new path to re-engage with international institutions, start fresh with foreign businesses and rebuild the economy. 

Revitalizing Zimbabwe's economy may not be an easy task. The most important challenge is to resolve the lack of cash in the economy due to which it is difficult for businesses to import goods and  for consumers to transact. In order to resolve this problem arrangements have been made with the African Export and Import Bank to provide support for importers and US$ 300 million in new guarantees to permit the central bank to increase printing of "bond notes".

These measures may provide some temporary relief. But to accelerate growth it may be necessary to convince the African Development Bank and the World Bank that the government is a reliable borrower now. Only then it will be possible for Zimbabwe to access the credit required to re-inflate the economy. Progress in resolving these issues may be slow and incremental.

As the reforms begin to stabilize the economy foreign companies may invest in markets offering lifestyle and consumer goods products. The formal retail sector may be revived within the next few years as a result of an influx of capital.