Light at the end of Zim tunnel - 14 Sep 2009

Politics in Zimbabwe is still highly volatile with the new Unity Government not quite on amicable terms and accusations being thrown back and forth as a low-key power struggle continues. Business in Zimbabwe, however, is picking up and potential investors are seeing great prospects for the country. There is suddenly light at the end of the tunnel with Mutare Board and Paper Mills back in business; three daily newspapers set to launch in the near future provided government plays ball and mobile penetration has risen with Telecel Zimbabwe adding 350,000 more lines to the network. The big one, however, announced late last week, is the acquisition of both Shell Zimbabwe and BP Zimbabwe by South Africa's Engen Petroleum and African petroleum marketing company, Kenolkobil. While the agreement still remains subject to approval, both entities have confidence in the Zimbabwean market. Is this the right time to invest in a country that's been only associated with doom and gloom for the past decade? One can't be entirely sure, but if it is, then late-starters will definitely find themselves facing stiff competition.