The Financial Gazette

Own Correspondent

MASTERCARD Worldwide has named Zimbabwe as one of nine sub-Saharan African countries critical to its future growth on the continent, indicating the country was poised for robust growth after a decade-long economic crisis.

MasterCard said in a statement: “Globalisation appears to have reached sub-Sahara Africa; and both African governments and the people are, in sharp contrast with the past, eager to engage the global economy actively; and increasingly on their own terms.”
MasterCard said it was keenly aware of this new dynamism in sub-Saharan Africa and had selected 10 markets in the sub-region for in-depth analyses and monitoring as they represented almost half of the sub-Saharan population and two-thirds of its Gross Domestic Product (GDP).
The 10 African countries are an “extremely diverse group in terms of population size, resource endowment, levels of development and income and the state of their political and corporate governance,” said MasterCard.
The countries consist of Angola, Ghana, Kenya, Mauritius, Mozambique, Nigeria, South Africa, Tanzania, Zimbabwe, and Zambia.
The role of these 10 countries, which are critical for the future of sub-Saharan Africa is encapsulated in the expression “Africa 10/21”.
According to MasterCard, there was great variance in the average real GDP growth rates over the 2005 to 2008 period among 10 countries. 
At two ends of the spectrum, Angola had the highest growth rate at an impressive 18,2 percent per annum; while Zimbabwe suffered an average annual contraction of its economy of 7,8 percent.
For sub-Saharan Africa as a whole, the average real GDP growth per year is estimated at 6,3 percent over the same period. Overall, and with the exception of Zimbabwe, the economic performance of these countries has been outstanding against the record of previous decades. There are reasons to expect growth rates to rise further in the coming years.
The survey also said that, for the next six months, consumers were planning to spend less on non-essential discretionary goods.
Many people have had to move funds they would have normally used on luxury goods to finance their debt payments.
The results of the survey could, however, dampen the post-recession recovery in consumer spending, the biggest sector of the economy.
The survey had followed positive news for the sector, which said that retail sales in the economy had increased beyond expectations.
MasterCard returned to Zimbabwe last year after ditching the country over an economic crisis that disrupted all economic activities, bringing the domestic currency under heavy attack from speculation as well as hyperinflation.
The debit and credit payment systems in the country had also collapsed following the acceleration in the country’s economic decline, as well as price distortions and a skewed exchange rate that made it all unviable for international visitors to use credit and debit cards in the country.

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