Zimbabwe economy could hamper Mnangagwa's Brics ambition

President Emmerson Mnangagwa has announced Zimbabwe's readiness to join the BRICS grouping, claiming the country now has a stable currency and solid economic fundamentals. BRICS, comprising Brazil, Russia, India, China, and South Africa, recently expanded to include Iran, Egypt, Ethiopia, and the United Arab Emirates. Zimbabwe, isolated due to its poor human rights record, seeks to re-engage globally and is aiming for BRICS membership.

Mnangagwa's optimism hinges on the introduction of the Zimbabwe Gold currency (ZiG) by the Reserve Bank of Zimbabwe (RBZ) in April, intended to replace the devalued Zimbabwe dollar. He expressed confidence in discussions with Russian President Vladimir Putin and highlighted the ZiG as a solid currency backed by gold reserves.

However, economic analysts, including Professor Gift Mugano and Dr. Prosper Chitambara, argue that Zimbabwe has not yet met the fundamental requirements of a stable economy. Mugano pointed out that the ZiG is still new and fragile, with banks struggling to access foreign currency. He also emphasized Zimbabwe's production issues, with the country importing most of its needs and lacking competitive capacity in exports.

Chitambara noted that while inflation has decreased recently, sustained low and stable inflation rates are necessary to restore economic confidence. He suggested that achieving a stable inflation rate below 10% for six to twelve months is crucial for Zimbabwe to consider BRICS membership seriously.

Overall, while Mnangagwa is pushing for BRICS membership, economic experts highlight significant challenges that Zimbabwe must address to meet the necessary economic stability and production capacity requirements.