US embassy cable - 02HARARE2361

UNCLAS HARARE 002361 
 
SIPDIS 
 
SENSITIVE 
 
STATE FOR AF/S 
NSC FOR SENIOR AFRICA DIRECTOR JFRAZER 
USDOC FOR 2037 DIEMOND 
PASS USTR ROSA WHITAKER 
TREASURY FOR ED BARBER AND CWILKENSON 
USAID FOR MAJORIE COPSON 
 
E.O. 12958: N/A 
TAGS: EFIN, ECON, ETRD, ZI 
SUBJECT: Business Community Tries to Engage Mugabe 
 
Sensitive but unclassified.  Not for Internet posting. 
 
1. (U) Summary:  The heads of 8 large corporations in 
Zimbabwe are banking that their new association can engage 
the Government of Robert Mugabe in a non-threatening manner 
and help the country stave off deeper recession. End 
Summary. 
 
Will Mugabe listen? 
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2. (SBU) In funding Business Initiative Zimbabwe (BIZ), the 
company chiefs have declared that "we in the business 
community cannot stand by while 90 percent of the population 
sinks below the poverty datum line."  This is the business 
community's most organized effort to build a dialogue with 
the Mugabe government.  Founders hope to win the President's 
trust by underwriting numerous projects that he approves of, 
such as a young farmers program.  (Member corporations agree 
to pledge .35 percent of revenue to assist small 
entrepreneurs.)  Ultimately, they seek to leverage any good- 
will into restored influence with the GoZ. 
 
Comment 
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3. (SBU) Given the GoZ's distrust of the private sector and 
entrenched statist mindset, this is a tough sell.  After a 
recent two-day Confederation of Zimbabwe Industries 
symposium where business leaders gently challenged 
government ministers, the GoZ had the CZI head dismissed. 
Furthermore, it does not help that some BIZ members 
represent British multinationals.  However, the CEOs of 
Standard Chartered and Anglo American, both prominent black 
Zimbabweans, have told us they see little to gain through 
confrontation.  BIZ founders, a collection of Zimbabwe's 
most prominent movers-and-shakers, have tried unsuccessfully 
for months to secure a meeting with Mugabe.  Meanwhile, they 
hope to recruit Finance Minister Herbert Murerwa as an 
honorary board member.  BIZ already includes several 
Zimbabwe-owned companies, such as PG, and members want to 
add a couple dozen more.  Standard Chartered CEO Washington 
Masaira, the first BIZ chairman, told us the organization 
will strive to be assertive but unthreatening - a very fine 
line coming from reps of Western corporate interests in 
today's Zimbabwe.  Masaira is not confident he will succeed, 
but believes this may be the business community's last 
chance to help salvage what's left of Zimbabwe's economy. 
 
Sullivan