Can Zimbabwean crisis disrupt the South African economy?
The fear in most people’s minds is the knock-on effect which the Zimbabwean economic crisis might have on the South African economy? The interesting thing in this regard is comparison of the domination of movements in the Rand in 2001 supposedly on the basis of concerns that the type of land seizures which were being undertaken at that time in Zimbabwe would be replicated in South Africa . There were also concerns about the adverse social and economic impact posed by the threat of thousands of Zimbabweans fleeing illegally across the border into South Africa. Amazingly, even though the Zimbabwean economy has plunged deeper and deeper into crisis since then and even though illegal immigration from Zimbabwe has gathered momentum, it barely enters news nowadays as regards the movements in the Rand and the impact on the South African economy. The simple answer is that the Zimbabwean crisis was a convenient excuse in 2001 for foreign investors to sell the Rand in tandem with the huge increa
