Reactions to Zimbabwe's loan request


By Tererai Karimakwenda
20 July 2005

Reactions to Zimbabwe's request for a loan from South Africa are beginning to appear in the local and international press and if the initial comments are any sign of what is to come, Mugabe may as well put away his begging bowl. It seems most people, from ordinary black South Africans to financial experts and politicians, are not in favour of bailing out ZANU-PF and its oppressive policies.

Geoff Hill, author and correspondent for The Washington Times in South Africa, said Mbeki is likely to face resistance from his tripartite alliance partners who have always taken a hard line against Harare, and even from some of his own ANC officials who see no progress in the Zimbabwe situation. Furthermore, Hill said a recent poll showed that only 14% of Black South Africans approved of the way Mugabe was running the country. Hill believes Mbeki can no longer excuse his own inaction by saying he has no leverage on Zimbabwe, because the loan request has now definitely given him just that.

The biggest problem for Mugabe is the issue of repayment. Just how does a government that is broke and without an economic plan intend to repay such large sums of money? Economist John Robertson, who has been quoted in the South African press, said the Zimbabwean economic crisis was not likely to abate soon. Robertson said South Africa is in a good position right now to use its economic muscle to intervene politically.

Professor Brian Raftopoulos, a development studies lecturer at the University of Zimbabwe, said South Africa had to work out a long-term project to help Zimbabwe to reform its economy. "The government has a limited amount of foreign exchange to run the economy. The black market is very strong, so you can see that there is a need for economic reform and not just a bailout."