EU extends targeted sanctions

Economists have warned that the recent extension of targeted sanctions against Zimbabwe by the European Union (EU) is likely to further isolate an already weak economy. The EU bloc renewed its travel ban on ruling ZANU-PF party officials last week and extended it to senior executives appointed by President Robert Mugabe after his party's disputed victory in the March parliamentary polls. Deputy information minister Bright Matonga told IRIN that the government was unperturbed by the EU decision, as the country had successfully penetrated Asian markets. "In our view, the sanctions are inconsequential: they have never worked. We have established business contacts with Asian countries through our 'Look East' policy, and if they [EU] think they can make us dance to their tune they are certainly mistaken," said Matonga. He accused the opposition Movement for Democratic Change (MDC) of lobbying the EU to impose sanctions on Zimbabwe after losing in the March poll. The MDC denied the charge, but has said it supports targeted sanctions against ZANU-PF officials. MDC economic advisor Eddie Cross said extending the travel ban could mean a protracted economic crisis, and expressed scepticism about the so-called 'Look East' policy as a means of reviving the economy. "For as long as there is no political will by ZANU-PF to correct its political mistakes, the sanctions will always matter, and our economy will plunge further," commented Cross. His sentiments were reiterated by a Zimbabwe National Chamber of Commerce (ZNCC) official, who said: "Government officials are the ones who are supposed to be in the forefront of the struggle to resuscitate the economy, and this they have to achieve through traveling and dialoguing with their counterparts around the globe. Now, if they can no longer travel and strike deals on behalf of the business community, then there is a problem," Zimbabwe now conducts most of its trade with Asian countries such as China. The International Monetary Fund (IMF) and the World Bank cut their balance of payment support to the country a few years ago, alleging bad corporate governance, while the EU imposed targeted sanctions on Zimbabwe in February 2002 after Harare expelled its election observer team.