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Strategies & Market Trends : Africa and its Issues- Why Have We Ignored Africa? -- Ignore unavailable to you. Want to Upgrade?

To: Stephen O who wrote (1015)	2/20/2009 11:12:21 AM
From: Stephen O	Respond to of 1267

Zimbabwe Needs Quick Economic Intervention, Tsvangirai Says 2009-02-20 14:27:43.639 GMT By Mike Cohen Feb. 20 (Bloomberg) -- Zimbabwe needs a “short-term intervention” to kick start an economy gripped by recession for the past decade and may require as much as $5 billion in the longer term, Prime Minister Morgan Tsvangirai said. Zimbabwean Finance Minister Tendai Biti will meet next week with his South African counterpart, Trevor Manuel, to work out details of a plan to rebuild Zimbabwe’s economy, South African President Kgalema Motlanthe told reporters today after he met Tsvangirai in Cape Town. Medium to long-term reconstruction costs “will run into billions of dollars, maybe as high as $5 billion,” Tsvangirai said. “Our situation is dire.” Johannesburg’s Business Day newspaper reported today that Tsvangirai would ask South Africa to help facilitate a $1 billion rescue package for Zimbabwe, which has the world’s highest inflation rate, last officially estimated at 231 million percent, and faces shortages of food, fuel and other basic commodities. South Africa’s presidency and Tsvangirai’s Movement for Democratic Change party refused to comment on the report. “We hope that by the end of next week we would be able to have clear, detailed action plans to respond to the requests of our Zimbabwean neighbors,” Motlanthe said. Tsvangirai met Motlanthe on his first trip outside Zimbabwe since being sworn in on Feb. 11 as prime minister in a coalition government between his MDC and President Robert Mugabe’s Zimbabwe African National Union-Patriotic Front. South Africa should lead efforts to help Zimbabwe rebuild its economy, Motlanthe said. South Africa helped broker talks that brought about the formation of the power-sharing government. The agreement extended Mugabe’s 28-year rule and allocated the posts of prime minister and finance minister to the opposition Movement for Democratic Change. South African Aid In his budget unveiled on Feb. 11, Manuel allocated 225 million rand ($22.1 million) toward providing humanitarian assistance to Zimbabwe over the next three fiscal years. South Africa set aside 300 million rand for food aid in October. Motlanthe said Zimbabwe’s economic needs will become clear after Manuel and Biti meet next week. “There are no figures to speak of,” Motlanthe said. “These are going to be crunched by the technical people and there will emerge, by the end of next week, a clearer picture what the needs and requirements are.” The coalition government is re-evaluating the performance of central bank governor Gideon Gono and will take a decision about his future “ at the appropriate time,” Tsvangirai said. He called for changes to Zimbabwean laws that inhibit investment. Food Emergency At least 6.9 million Zimbabweans, or more than half of the population, need emergency food rations, according to the United Nations World Food Program. A quarter of the population has fled the country. Zimbabwe’s cholera epidemic has killed 3,759 people and infected 80,250, the World Health Organization said on its Web Site today. The opposition won a majority in parliamentary elections in March and Tsvangirai garnered the most votes in a presidential poll. The state-appointed electoral commission said he didn’t win the 50 percent needed for victory. Tsvangirai refused to take part in a runoff ballot in June, citing attacks on supporters, enabling Mugabe to win by default. No amnesty would be given to the perpetrators of the violence and “those who break the law will have to face due process,” Tsvangirai said.