Sanctions detrimental to economic progress

SANCTIONS have been detrimental to Zimbabwe’s economy as they have dragged economic progression backward and worsened socio-economic conditions of the general populace ever since they were imposed in the early 2000s.

To have a clear insight into them, there is need to unpack their origins.

The Fast Track Land Reform Programme, which was initiated by the Zimbabwean Government under the late former President and national hero Robert Mugabe, was received with grief and anger by the Western world.

This resulted in the imposition of sanctions under the Zimbabwe Democracy and Economic Recovery Act (ZIDERA) of 2001 and amended in 2018 by the United States government.

Meant to choke Zimbabwe’s economy, these sanctions are two dimensional; the first being ZIDERA and the second, which is referred to as a “Targeted Sanctions Programme” began on March 7, 2003 when the George W Bush administration issued Executive Order 13288.

On March 8, 2001, US senators Bill Frist and Russ Feingold introduced the original ZIDERA Bill.

Among the Bill’s sponsors were Hillary Clinton, Jesse Helms and Joe Biden, who were senators at the time.

It was a bipartisan effort.

Their long history of opposition to Zanu-PF, in particular, and African nationalism in general was hardly surprising.

There is impeachable contradiction behind the major proponents, who spearheaded the imposition of sanctions, particularly Senator Jesse Helms, who had been one of the biggest supporters of Rhodesia and UDI.

Ironically, he campaigned for the lifting of sanctions against Ian Smith’s administration, but suddenly in independent Zimbabwe, the same individual loudly echoed the US’ imposition of sanctions.

Skewed distribution of economic resources and the draconian laws which governed land in colonial Rhodesia were the leading factors that led to the initiation of the Fast Track Land Reform Programme.

It is imperative to note that sanctions have negatively affected the economic prosperity of Zimbabwe.

Several Government officials and companies in which Zimbabwe had interests were placed on a sanctions list.

Among them was the Industrial Development Corporation (IDC), a wholly Stateowned enterprise, which was under sanctions until 2016.

At the time, IDC had interests in a broad range of Zimbabwean companies such as Olivine, Sable Chemicals, Chemplex and Zimbabwe Fertiliser Company, which have been under-performing as a result of sanctions.

These companies were not eligible to fully access credit lines.

Furthermore, as a result of economic sanctions imposed on Zimbabwe, Standard Chartered ordered IDC to close its accounts with the bank. Standard Chartered’s fears were not unfounded.

Economists have estimated that State enterprises account for 14 percent of Zimbabwe’s GDP, making them a key component of the economy.

At peak, they made up 40 percent of the economy.

Typically, State utilities are key to any economy’s growth, and largely depend on foreign loans for their capital expenditure. Such loans have mostly dried up due to restrictions which are encompassed in ZIDERA.

As a result, Zimbabwe has not been receiving enough foreign direct investment due to the fact that most firms and companies are handicapped.

The Southern African sub regional bloc, SADC’s clarion call to set aside October 25 as the Anti-sanctions Day is much appreciated.

It is also a strong assurance that Zimbabwe is receiving from its fellow brothers.

It is a pertinent regional matter, which needs global attention.

It goes without saying that the sanctions issue on Zimbabwe received wide condemnations from other regional African countries.

The move is a wake-up call to member states within SADC to unite and strengthen economic ties by facilitating intra-trade within the region.

However, intra-trade is complex as it is difficult to attain while other member states are tied up by economic sanctions.

The lifting of sanctions will also further SADC’s objectives and ensure that economic prosperity and job creation are realised within member states.

The imposition of sanctions on Zimbabwe by the US is perturbing since the ZIDERA Bill was passed outside the ambit of international law.

From a legal point of view, for sanctions to be legally binding, they must be passed and come through the United Nations Security Council (UNSC).

This was not the case with Zimbabwe, hence, the sanctions are illegal.

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