AFRICA/ZIMBABWE - Southern African countries' plan to save Zimbabwe's economy conditioned to acceptance of talks with Opposition

Harare (Agenzia Fides) - The Southern Africa Development Community SADC has launched a plan to save the economy of Zimbabwe by extending the area of the South African Rand to Zimbabwe, stabilise the exchange rate of the local dollar and stop the galloping inflation rate which has destroyed the country.
The plan established that the central banks of South Africa and Botswana will transfer millions of Rand to the Zimbabwe Reserve Bank. However the plan is conditioned to the acceptance by President Robert Mugabe to undertake the political reforms requested by the main opposition party the Movement for Democratic Change MDC. Representatives of the Harare government and the MDC are meeting today in Pretoria, South Africa to discuss the reforms.
The Rand area includes Namibia, Lesotho and Swaziland, whose national currencies are linked with the South Africa currency. The SADC plan foresees the stabilisation of the exchange rate of the Zimbabwe dollar which will then be put under control of the South Africa monetary authority.
To try to control inflation (4.500% officially but double for independent analysts) President Mugabe enforced a 50% cut in retail prices (see Fides 4 July 2007). A decision which threw the country's economy into chaos. While shop keepers who refuse to cut prices are being arrested, Mugabe threatens to nationalise companies which supply prime necessities to the exhausted people. The enforced price cut was harshly criticised by the chairman of the Zimbabwe central bank. (L.M.) (Agenzia Fides 10/7/2007 righe 26 parole 294)