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Mugabe's exit does not guarantee economic success: Standard Bank 

                                                           By Thulani Khoza 07-08-08

NEITHER President Robert Mugabe’s departure from office nor a globally accepted transition government can guarantee the success of any policy aimed at rebuilding Zimbabwe, a prominent regional bank has said.

In a statement Thursday, Standard Bank said only a collaborative effort from the country’s stakeholders, immersed in sacrifices and compromise can help the economically embattled country out of the woods.

The bank says business, labour, the security establishment and civic organisations are some of the key stakeholders who can ensure the success of any new economic policy.

“The cost of reconstruction will not only weigh heavily on government but also on businesses, ” the bank said.“ There is, therefore, a need for genuine discussion on the distribution of the cost among different stakeholders and assessment of how much each stakeholder can absorb.”

Zimbabwe's economy has been in the doldrums for the past 10 years.

Among others, the economy is marred by a significant shortage of foreign exchange, poor power supply, loss of skills, dilapidated infrastructure, excessive government spending, hyperinflation, extreme exchange controls, restrictive business policies and a free-falling exchange rate.

Many have said the hope for an economic turnaround lies within a possible political settlement between the major political parties, Zanu PF and the two formations of the opposition MDC who are currently engaged in negotiations to end an ongoing political crisis.

There have also been suggestions, especially from the West, that Zanu PF's President Robert Mugabe should pave way for new minds in the form of a transitional government, preferably made up of Morgan Tsvangirai's MDC.

Standard Bank welcomed the political negotiation saying it offers some array of hope for a positive political solution which has a bearing on the economic path.

Standard Bank operates in many African countries and owns Zimbabwe's Stanbic Bank - ZimEye