The epic misrule of Robert Mugabe wiped around two-thirds off Zimbabwe's GDP. But earlier this year the opposition MDC, led by Morgan Tsvangirai, entered into a power-sharing deal with Mugabe. So now "the economy is coming back from the dead", says Ambrose Evans-Pritchard in The Daily Telegraph. For investors this could be "the ultimate turnaround story".
Hyperinflation ended when everyone stopped accepting the worthless Zimbabwe dollar and it was replaced by the US dollar. Civil servants could be paid again, which meant schools and hospitals could re-open.
The MDC has also started to lift exchange controls and "plans to privatise chunks of the economy", says Evans-Pritchard. The IMF has pencilled in GDP growth of 3% this year.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Still, the recovery is built on "shaky foundations", says AllAfrica.com. "Delinquent behaviour" by Mugabe's Zanu PF continues. Investors with a risk appetite can punt on Zimbabwe with Aim-listed LonZim (LZM), an investment firm that also deals in hotels, pharmaceutical distribution and electronic payment services.
-
Four AI ETFs to buyIs now a good time to buy AI ETFs? We examine four AI ETFs that investors might want to add to their portfolio
-
Chase boosts easy-access interest rate - savers could earn 4.75%Chase is offering a boosted interest rate which is fixed for six months, on top of the standard variable rate
