Cash-strapped Zimbabwe is risky
Zimbabwe is cash-strapped and the government is feeling the slowdown of foreign money coming into the country. According to Dutch research and financial advisory company, Amstel, The Zimbabwe stock market index registered an all-time high of 167 points in mid-January before plunging to 129 points in March following the publication of indigenization regulations by the government. The bourse’s poorly rated mining and consumer stocks fared worse - down by almost 5%. The March losing streak made the Zimbabwe exchange the worst-performing sub-Saharan African bourse monitored by Amstel.
"We caution exporters on the risk of exporting to the Zimbabwean market,” says Theo Reddi, General Manager Trade Credit, at Credit Guarantee Insurance Corporation. "In today’s volatile trading environment, country risk should be prominent on the radar of all exporters, and we believe that payment protection for goods delivered to Zimbabwe is vital,” concludes Reddi.
