James Charnaud

Landing at Harare Airport is a bit like coming home for me - I feel really comfortable here and it has been good to catch up with old friends and business associates. It seems that whatever happens to Zimbabwe everyone just "makes a plan" and works around it.

The lifestyle here has significantly improved from a couple of years ago when the shelves were empty and the economy was being wrecked by hyper-inflation. In 2009 this was halted when the government finally gave up on the Zimbabwe Dollar and allowed foreign currencies to be used. Everyone now uses the US Dollar to transact business. An interesting result of this is that you are given the most disgusting bills, as the central bank cannot replace them, and there is no change. Shops now give "credit notes" which you are supposed to keep for the next time you shop with them.

The real estate market has stabilised - I was expecting more of a rise with the adoption of the US dollar but there are still question marks over the future and the banks are reluctant to lend (or have no money to lend depending on who you believe). The result is that there are a number of partially built properties on the market where funds have just dried up.

Leasing prices in Harare are still very low - warehouses typically lease for US$2 - 3 per sq m per month and offices for $5 - 10 per sq m per month. You can tell the recent inflationary economy has left its mark on leases. The rents are typically reviewed on a 6 monthly basis. This is an improvement on the weekly or monthly reviews during the days of hyper-inflation.

The two big issues clouding the future are - the elections (when are the next elections going to be held, will Mugabe stand again, who might take over from him?) and the proposed Indigenisation Law. The ruling Zanu PF party is trying to bring in this law which states that any business worth more than $500K will have to be at least 51% owned by black Zimbabweans. There is no official deadline for this to be enacted and the original minister responsible for drawing it up said it would take place between 2013 and 2018.

                                                            Half-finished building in Harare