Business / Economy
South Africa makes billions from Zimbabwe
21 Apr 2015 at 21:46hrs | Views
South Africa could be the region's dominant economy but the untold story is that the country makes billions of dollars from the Zimbabwean market.
Implats, Tongaat-Hulett, Multi-Choice, Old Mutual and Pick'n'Pay, among others have emerged as key brands on the local market.
The peaceful environment in Zimbabwe has seen Zimplats leveraging against losses induced by months of job action in South African platinum mines.
Few days after South African firm, Sasol announced plans to evacuate workers from Mozambique in response to increased retaliation threats, another firm, Kenmare Resources on Monday revealed it had temporarily repatriated South African workers from its Mozambican business unit.
As the horrifying images of the developments in South Africa continue to steal headlines globally, it is a serene environment in Zimbabwe where South African companies are running businesses.
For five months, platinum mining in South Africa came to a standstill following a labour dispute that turned bloody with 34 miners being shot dead while 78 were injured in Marikana.
During the period, Implats was leveraged by business from their Zimbabwean subsidiary, Zimplats which was operating viably.
It is not only Zimplats that has performed well but other South African companies continue to dominate tourism, agriculture, banking and retail sectors in Zimbabwe.
Figures from the Zimbabwe Investment Authority (ZIA) indicate that South Africa was the second major source of capital with US$24 million worth of investment projects having been approved during the first quarter.
Statistics from South Africa's trade department show that between 2005 and 2014, South Africa's exports to Zimbabwe grew by 247 percent from US$710 million to 2.48 billion.
In 2014, Zimbabwe exported goods worth US$2 billion to South Africa, representing 67 percent of the total exports.
On the other hand, South Africa exported to Zimbabwe products worth US$2.7 billion.
47 percent of Zimbabwe's imports come from South Africa.
South Africa, however enjoys the bigger cake with a positive balance of trade that stands at over US$700 million.
Zimbabwe's untold story is however that the exports to South Africa that amount to US$2 billion include unprocessed platinum.
It is not known how much money South Africa makes out of processing platinum but estimates have run into billions of dollars.
South African firms which include Pretoria Cement Company (PPC) and Aquarius Platinum have in the past hinted their Zimbabwean units were the major contributors to the respective companies' annual revenues.
Implats, Tongaat-Hulett, Multi-Choice, Old Mutual and Pick'n'Pay, among others have emerged as key brands on the local market.
The peaceful environment in Zimbabwe has seen Zimplats leveraging against losses induced by months of job action in South African platinum mines.
Few days after South African firm, Sasol announced plans to evacuate workers from Mozambique in response to increased retaliation threats, another firm, Kenmare Resources on Monday revealed it had temporarily repatriated South African workers from its Mozambican business unit.
As the horrifying images of the developments in South Africa continue to steal headlines globally, it is a serene environment in Zimbabwe where South African companies are running businesses.
For five months, platinum mining in South Africa came to a standstill following a labour dispute that turned bloody with 34 miners being shot dead while 78 were injured in Marikana.
During the period, Implats was leveraged by business from their Zimbabwean subsidiary, Zimplats which was operating viably.
It is not only Zimplats that has performed well but other South African companies continue to dominate tourism, agriculture, banking and retail sectors in Zimbabwe.
Figures from the Zimbabwe Investment Authority (ZIA) indicate that South Africa was the second major source of capital with US$24 million worth of investment projects having been approved during the first quarter.
Statistics from South Africa's trade department show that between 2005 and 2014, South Africa's exports to Zimbabwe grew by 247 percent from US$710 million to 2.48 billion.
In 2014, Zimbabwe exported goods worth US$2 billion to South Africa, representing 67 percent of the total exports.
On the other hand, South Africa exported to Zimbabwe products worth US$2.7 billion.
47 percent of Zimbabwe's imports come from South Africa.
South Africa, however enjoys the bigger cake with a positive balance of trade that stands at over US$700 million.
Zimbabwe's untold story is however that the exports to South Africa that amount to US$2 billion include unprocessed platinum.
It is not known how much money South Africa makes out of processing platinum but estimates have run into billions of dollars.
South African firms which include Pretoria Cement Company (PPC) and Aquarius Platinum have in the past hinted their Zimbabwean units were the major contributors to the respective companies' annual revenues.
Source - zbc
