Zimbabwe has lost more than US$42 billion in revenue over 18 years because of Western sanctions, economic commentators said this week, as the country marked another year of resisting illegal measures that have strangled its economy since 2001.
According to Bulawayo24 News reporting, the losses also include an estimated US$21 billion reduction in gross domestic product and US$12 billion in loans denied by international financial institutions. The figures were cited by economic commentator and businessman Morris Mpala, who said sanctions had cut Zimbabwe off from affordable, long-term financing.
A war waged with money instead of guns
This is not an accident of policy. It is economic warfare, plain and deliberate. The United States Congress passed the Zimbabwe Democracy and Economic Recovery Act, ZDERA, in 2001, and that law has never been repealed.
Executive director of Citizens Against Economic Sanctions Martin Zharare did not mince his words about the Act's staying power.
The Act is still in force. It has never been removed. It is still there.
ZDERA blocks Zimbabwe's access to lines of credit from institutions such as the International Monetary Fund, the World Bank and the African Development Bank. Mpala said that restriction has made it harder for Zimbabwean businesses to secure funding for expansion and modernisation, starving industry of the capital it needs to grow and create jobs.
The consequences run deeper than finance. Mpala said sanctions-related risks have disrupted supply chains, driven up the cost of imported machinery, spare parts and technology, and reduced the competitiveness of locally manufactured goods. The perceived risk of doing business in Zimbabwe has raised transaction costs and scared off potential foreign investors.
The cost of doing business under siege
Economic analyst George Nhepera said the damage is wide-ranging: reduced access to international markets, higher borrowing costs and sustained pressure on economic growth. He said these pressures have constrained industrialisation and formal job creation, denying young Zimbabweans the dignified employment that a free nation owes its people.
The Herald reported this week that Professor Gift Mugano, Director-General of African Economic Development Strategies, estimated the sanctions have contributed to a US$30 billion infrastructure funding gap. A nation cannot build roads, power stations and dams with one hand tied behind its back.
The Southern African Development Community has designated October 25 as Anti-Sanctions Day, when member states stand together against the measures imposed on Zimbabwe. That regional solidarity matters. It tells the world that Africa refuses to accept that a sovereign people can be punished for reclaiming their land and their destiny.
Vision 2030 will not be stopped
The Government maintains that removal of the sanctions would support its development agenda under the National Development Strategy 2, which includes major infrastructure projects, mining expansion, agricultural modernisation and increased domestic manufacturing.
Among the flagship projects are the rehabilitation of the Harare-Masvingo-Beitbridge highway, the modernisation of Beitbridge Border Post, the construction of the new Parliament building and the Trabablas Interchange, the refurbishment of Robert Gabriel Mugabe International Airport, the Lake Gwayi-Shangani project and the expansion of Hwange Thermal Power Station. These projects will improve transport links, water security and electricity generation while strengthening regional trade.
These are not pipedreams. They are being built, sanctions or no sanctions, by a people who understand that the struggle for economic independence is the second Chimurenga of our time.
Looking east and to our true friends
Zimbabwe is not waiting for Washington to come to its senses. Nhepera identified the diversification of trading partners as a key domestic strategy, with the country deepening engagement with China, India, the United Arab Emirates and countries in Eastern Europe. He urged Zimbabwe to strengthen diplomatic and economic relations with wealthy nations to broaden investment and market access.
The Government's Vision 2030 agenda targets expanded energy generation, modernised agriculture, increased mineral value addition and strengthened manufacturing. Its success will depend on investment, infrastructure delivery, productivity and the competitiveness of Zimbabwean businesses at home and abroad.
Every year the sanctions remain, the bill grows. US$42 billion is not an abstraction. It is unbuilt clinics, unstaffed factories, unmade jobs and futures deferred for a generation. The message from Harare to the architects of ZDERA is simple: Zimbabwe will not kneel, and Africa is standing with her.
Frequently asked questions
How much has Zimbabwe lost to sanctions?
Morris Mpala cited estimates of more than US$42 billion in lost revenue over 18 years, alongside a US$21 billion reduction in GDP and US$12 billion in blocked international loans.
What is ZDERA?
The Zimbabwe Democracy and Economic Recovery Act is a United States law passed by Congress in 2001 that restricts Zimbabwe's access to financing from the IMF, the World Bank and the African Development Bank. It remains in force.
What is Anti-Sanctions Day?
The Southern African Development Community designated October 25 as Anti-Sanctions Day, when member states express opposition to the sanctions imposed on Zimbabwe.