GROWING BUSINESS - Column

Trepidation, but then some joy
Twenty years ago my wife and I decided that Zimbabwe was on a downward spiral, and that we should emigrate to New Zealand.
My mother, sisters, and their families remained and we visit them every five years or so, and have wonderful family reunions.
For me our trips to Zimbabwe are tinged with sadness because of the endless decline very evident in nearly aspect of life.
It's very hard to see a country you loved slipping into the abyss, and the most recent news last year seemed to be worse.
So, it was with some trepidation that we set off on our five-yearly pilgrimage back to the old country in mid-December, and found to our cautious delight that it seemed in a slightly better position than our last visit. Zimbabwe's citizens are the third poorest in the world - their Gross Domestic Product (GDP) per person is US$400 ($523) a year, compared with ours in New Zealand at US$28,000 ($36,600) a year. Their minimum wage is a pitiful US$150 ($196) per month.
Zimbabwe's population of 12 million has been decimated by a massive exodus of about 3 million people, and deaths from HIV/AIDS. Official figures vary, but the prevalence of infection is between 12-25 per cent, with the military having particularly high vulnerability. Circumcision reduces transmission of the virus, and a government minister stated recently that it may be necessary to "circumcise the army" - surely a world first.
The unemployment rate is 95 per cent, and although traditional subsistence agriculture helps put some food on the table, 68 per cent of the population still exists below the poverty line. They have the highest public debt in the world at 241 per cent of GDP, compared to our 25 per cent, and life expectancy is less than 45 years.
The real tragedy is that Zimbabwe was once one of the jewels of Africa, with immense economic assets and potential - a thriving tourism industry, an agricultural sector the envy of the world, and huge mineral wealth.
For political reasons the government ran about 4000 white commercial farmers off their land in the early 2000s, and destroyed a thriving industry.
Tobacco alone was worth US$400 million ($523 million) a year, and maize exports fed the southern African region.
The tourism sector also imploded with all the bad PR the country was getting globally. Neighbouring Zambia has boomed as a direct result of all the commercial farmers and tourism operators who transferred their skills to a more amenable environment.
Our holiday included driving 3500km through Zimbabwe and Mozambique and I came to fully appreciate the consequences when a government fails to maintain infrastructure for decades.
There are literally millions of potholes in the roads, and if Fulton Hogan could score a contract to fix them it would be bigger than Microsoft.
There are toll booths between every town, without an alternative route, collecting US$1 ($1.30) per vehicle.
There are no coins for change, and the one dollar notes are unquestionably the filthiest notes on the face of the planet.
Most road signs are rusted and indecipherable. Bridges are battered, and farm fences keeping stock from busy roads non-existent. Telephone poles are rusty and lopsided, and one gives thanks for the reasonably efficient cellphone service. The availability of municipal water is inconsistent, as is electricity. Private suppliers of boreholes and generators have made a great deal of money.
Paradoxically, as long as you have a decent job, life can be very pleasant in Zimbabwe.
The supermarkets stock as many brands as New World, and every international consumer item is available. Excellent private medical care is available, private schools provide international quality qualifications, and the climate and landscape allow for every outdoor pursuit imaginable.
Although many people in the black middle class have emigrated, there is still a very visible nouveau riche class flaunting obscene wealth. It is evident that there is money in some sectors, and the tide that hopefully lifts all boats is slowly rising. The economy has grown for the first time in a decade largely boosted by the introduction of the US dollar as the official currency. This move halted the recent crippling hyper-inflation, and now most imports have no tariff.
Interestingly, there is reportedly a fast-growing international money laundering industry, as there are slack currency controls on the US dollar. The recent discovery of the biggest diamond field in the world will help a few politicians get even wealthier, but hopefully there will be some trickle down effect.
Many Zimbabweans seem more optimistic about the future, and we met several tourist and other business operators who were investing in new assets and staff. There is, however, a feeling of dread about the pending elections, as these affairs tend to resemble low level civil wars rather than the polite events Kiwis experience.
As for me, when we arrived back in Auckland I experienced a real sense of gratitude for everything we have - a free press, a parliamentary democracy, an independent judiciary and Reserve Bank, and a solid economy with everything going for it.
Max Mason is chief executive of Tauranga Chamber of Commerce, which provides networking and support for businesses. He can be contacted on email: max@tauranga.org.nz or phone: (07) 577 9823.