Tourism, another important source of foreign exchange, has been hit by the violence. The banks have been considering devaluation of the currency, but the ministers rejected their advice. Tobacco farmers are holding back, they do not want to put their crop on the market at an exchange rate that will not cover their costs. Tobacco and horticulture are the vital export industries. Commercial farmers are looking for chances to emigrate to Mozambique, Zambia or Australia.
Foreign investors are extremely cautious in their dealings with Zimbabwe.
Credit lines and export credit guarantees for trade with Zimbabwe have been withdrawn. Because of debt arrears amounting to tens of millions of dollars, the World Bank cut off funding for Zimbabwe. Zimbabwe owes USD 895m to the World Bank. The IMF has suspended its programmes. Zimbabwe is expected to have one of the world s fastest-shrinking economies this year.