UNITY . . . President Mugabe and Prime Minister Tsvangirai formed a unity government in February

HARARE – A leading British financial institution said on Thursday it remained committed to investing and expanding its operations in Zimbabwe, which has over the past decade suffered spectacular economic decline blamed on economic mismanagement and wrong policies by President Robert Mugabe.

In a statement issued at the end of a visit to the troubled southern African country by Barclays Global Retail Banking Emerging Markets chief Vinit Chandra and his executive team the bank said the tour “reinforces Barclays' commitment to Zimbabwe”.

“Our presence in this country goes back almost 100 years and our investment over the last three years demonstrates our continued commitment to the country and to the region,” said Chandra in a statement that will be welcomed by Harare authorities desperate for foreign investment to help revive the economy after formation in February of an inclusive government between Mugabe and former political rival Prime Minister Morgan Tsvangirai.

“My visit to Zimbabwe has been an eye opening experience. I have loved the country, the warmth of the people and the vibrant commercial culture that is evident in Harare,” said Chandra.

The nine-month-old coalition has brought a degree of stability to Zimbabwe’s political situation although the future remains uncertain because of incessant squabbling between Mugabe and Tsvangirai.

“I am delighted with the fantastic commitment to customers that I see in this business and the work that Barclays is doing to support the communities in Zimbabwe. This is why we have invested in people and infrastructure and will continue to do so,” he added.

Barclays Bank, which is listed on the Zimbabwe Stock Exchange employs nearly 1 000 people in Zimbabwe throughout its 40 branches and 76 automated teller machines despite the lethal liquidity crunch sweeping across the fragile economy of 12 million people.

A decision by Barclays in 2003 to shut down scores of its branches in small towns across Zimbabwe following a slump in business was seen by Mugabe’s supporters as a direct response to a diplomatic stand off between Harare and London over the veteran leader’s controversial land reforms.

The seizure of private land, which Mugabe says was necessary to ensure blacks also had access to arable land that they were denied by previous white-led governments has continued even after the formation of the unity government raising questions about Zimbabwe’s commitment to uphold property rights as well as agreements entered with other countries. – ZimOnline