Finance and Economic Development minister Mthuli Ncube on Saturday claimed that Zimbabwe’s economy has lost more than US$42 billion since 2002 because of sanctions.
Speaking at a youth program in Gweru, Ncube also claimed that foreign direct investment (FDI) fell from US$95 million in the 1990s per year to just US$20 million per annum in the 2000s. Said Ncube:
The over US$42 billion which we have lost since 2002 is almost double our economy which stands at US$25 billion. That’s quite a huge margin and people need to realise the effects of such a loss.
Almost US$4.5 billion of that money was intended for donor support and US$18 billion was for financial support. Banks lost over 100 corresponding resources. We experienced a massive loss of jobs and we were unable to create jobs easily. We have lost foreign direct investment.
FDI has been restricted and investors would be fearing to associate with us for fear of these sanctions. If you are to look at the FDI inflows in the 80s, they were about US$8 million per year, they increased to US$95 million in the 90s but then dropped to US$20 million per annum in 2000.
The European Union and the United States recently renewed the sanctions they imposed on Zimbabwe at the turn of the Millenium alleging human rights violations and a breakdown in the rule of law.