SA companies on alert in Zimbabwe
Business leaders preparing for worst-case scenarios
IT WAS business as usual at most South African businesses operating in Zimbabwe yesterday as the army took over control and confined President Robert Mugabe to his home in the aftermath of the sacking of former vice-president Emmerson Mnangagwa earlier this month.
Bank branches and stores near the parliament building, which was cordoned off, were closed. Most business leaders in Zimbabwe were holding meetings to prepare for worst-case scenarios including an escalation in the stand-off as it was reported that the army was negotiating with Mugabe although it is not yet known what their demands are.
Across Jason Moyo Street in central Harare, an Old Mutual owned bank, CABS, was open for business although activity was low. Jason Moyo Street is less than 300m from the parliament building which was cordoned off. A branch of Standard Chartered Bank near the parliament was closed.
“We are open as you can see and people are transacting well. We don’t know what will come in the next few hours and days and we will be taking instructions from our head office,” a supervisor at a Pick n Pay outlet said.
David North, group executive strategy and corporate affairs, at food retailer, Pick n Pay, said that like everyone, they were monitoring the situation very carefully.
“Nedbank can confirm that our operations in Zimbabwe remain open and active. We are monitoring the situation and will take appropriate steps if required. Currently, South African staff are returning home. The safety of our staff remains a priority and we will take appropriate measures to ensure their well-being,” it said.
Standard Bank said it was aware of and was closely monitoring recent developments taking place in Zimbabwe.
“We can confirm that there has been minimal negative impact on our operations in Zimbabwe today. The safety and security of our staff remains a key priority. We continue to monitor events in Zimbabwe as they unfold,” said Sola David-Borha, Standard Bank Group Africa regions chief executive.
Edcon, SA’s biggest fashion retailer also confirmed that it was business as normal in Zimbabwe.
Godfrey Mwanza, the head of Pan-African listed equities at Absa Wealth & Investment Management said yesterday that sentiment from commentators and analysts hint towards positive “relief ” that perhaps going forward this was the turning point observers had been waiting for.