ANALYSIS| Harnessing Economics for Zimbabwe’s Foreign Policy

By Newton Mambande

HARARE – THE interplay between economics and foreign policy is undeniable. Fundamental principles of economics – like trade, investment, and resource allocation – shape nations’ international relations. For Zimbabwe, leveraging economics in foreign policy can drive positive change.

Economic Drivers of Foreign Policy
Economics influences foreign policy in several positive ways. Boosting exports of key commodities like tobacco, minerals, and agricultural products can strengthen ties with partners such as China and South Africa. Attracting investment by easing business hurdles can draw in diaspora funds, boost infrastructure development, and facilitate technology transfer. Managing strategic resources like platinum and lithium wisely can build essential alliances. For instance, Norway’s sovereign wealth fund, backed by oil revenues, has bolstered its global diplomatic clout. Similarly, Rwanda’s investments in ICT infrastructure have made it a hub for tech innovation in Africa, enhancing its regional influence.

Impact of ZDERA Repeal on Zimbabwe
The potential repeal of the Zimbabwe Democracy and Economic Recovery Act (ZDERA) by the US could spur socioeconomic transformation. Lifting sanctions would ease access to international finance, technology, and markets. This could lead to increased foreign direct investment, expanded trade opportunities, and greater economic stability with the potential for growth and job creation.

Diaspora Engagement for Growth
Zimbabwe must enable diaspora participation in elections. Granting voting rights to the approximately 3 million citizens abroad would foster a more inclusive democracy. An engaged diaspora can drive growth and innovation while strengthening Zimbabwe’s international standing. Countries like Israel and Mozambique demonstrate the benefits of diaspora engagement – Israel’s diaspora Jews drive innovation and investment, while Mozambique’s economy receives a significant boost from remittances. India’s software industry, propelled by its tech-savvy diaspora, is another prime example of leveraging global talent for national growth.

Tapping Diaspora Finance
To tap into diaspora finance, Zimbabwe could incentivize insurers and pension funds to access markets in the UK, US, and South Africa where its diaspora lives, boosting forex reserves through remittances and investments. Economists and economic historians suggest learning from UDI Rhodesia’s strategy of exporting insurance to neighbors to bypass sanctions.

Going Global with ZimTrade and Economic Institutions
Zimbabwe must learn from nations like the United States and the United Kingdom by internationalizing ZimTrade and establishing economic institutions similar to the British Council, USAID, and UKAID. Opening branches strategically across Western Europe, North America (especially the US and Canada), China, Japan, and Australia can bolster international economic relations and diplomacy. This can yield benefits like increased trade, tourism, and investments in host countries, generating cash remittances back home.

Heeding Advice from International Financial Institutions
Zimbabwe should heed advice from international financial institutions (IFIs) like the IMF and World Bank to improve transparency and accountability in state-owned enterprises (SOEs) under the Mutapa Investment Fund and other parastatals. Paying off external debts to creditors like the IMF, World Bank, and Paris Club, as advised by the African Development Bank, can also enhance Zimbabwe’s global financial standing.

Neutrality in Geopolitics
Zimbabwe should consider maintaining neutrality in global geopolitics, akin to Switzerland, to boost economic ties, peace, and investment. Avoiding alignment in conflicts (e.g., in South Africa vs. US dynamics) reduces risks. Merging the State Security and Foreign Affairs ministries could streamline diplomacy, security, and trade efforts, enhancing competency in safeguarding national interests.

Zimbabwe’s economic future hinges on smart foreign policy choices – engaging the diaspora, tapping global finance, internationalizing economic institutions, heeding IFI advice, and maintaining neutrality. By strategically leveraging economics in diplomacy, Zimbabwe can drive growth, peace, and development.

About the author: Newton Mambande is an entrepreneur and researcher who has published scholarly work in scientific journals. He is reachable at newtonmunod@gmail.com and +263773411103.