Zimbabwe switches to rand and US dollar

Has Zimbabwe's battered economy now turned the corner?

Two things have happened; first, there is a coalition government and its ministers, who met over the weekend, emerged to say they wanted normal relations with other countries.

Second, the country has just adopted the US dollar and the South African rand as its currency, instead of the Zimbabwe dollar.

Of course, Mr Mugabe remains president despite his Zanu-PF party failing to win the country's elections.

And that means - as far as many outside countries believe - that sanctions should remain, even as cholera and starvation stalk the land, not to mention 80% unemployment and hyper-inflation.

Lifting sanctions

But there are now strong voices calling for the lifting of sanctions.

Jay Naidoo is chairman of the Development Bank for Southern Africa, which is owned by the South African government, and he told Business Daily what should be done for Zimbabwe and what his bank's role could be.

Currency switch

It has been said many times, that Zimbabwe used to be known as the "bread basket of Africa". It was fertile and a food exporter.

Now, it is the scene of starvation and cholera, partly say Mr Mugabe's critics, because skilled farmers were driven off the land.

On top of all that, with inflation that defies the imagination, the government has now decided to use the South African rand and the US dollar as the country's currency. Ordinary Zimbabweans say that they have noticed a difference.

Investment needed

So is this general impression of some improvement borne out?

Steve Evans turned to one of Zimbabwe's businessmen, the owner of a haulage company, and asked him if he thought it was time for South Africa to put more money into the Zimbabwe economy.

JavaScript must be turned on and the correct version of flash installed to play this media

Get Flash

Play in RealPlayer or Windows Media Player