US embassy cable - 03HARARE855

UNCLAS HARARE 000855 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ETRD, ECON, ELTN, ZI 
SUBJECT: Zimbabwe International Trade Fair 2003 -- Low 
Turnout, Low Participation, Low Morale 
 
 
SENSITIVE 
 
1. (U)  Summary:  The Zimbabwe International Trade Fair 
(ZITF) is the country's premier trade event and was once a 
regional and international showcase.  Three years ago, the 
number of both local and international exhibitors started to 
decline due to economic and political problems. This year 
saw the worst attendance since independence in 1980, with 
the ZITF boasting only five African countries and two 
overseas exhibitors from a peak of 52 countries in 1997. 
Even South Africa, Zimbabwe's largest trading partner, did 
not participate for the first time since independence.  No 
head of state officially opened the fair, also a first in 
ZITF history.  End summary. 
 
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Fuel Crisis Affects Local Participation 
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2. (SBU)  The acute shortage of fuel negatively affected 
participation by most local exhibitors and visitors to the 
fair.  A visit to the show by the Embassy's 
economic/commercial section indicated lower exhibitor 
figures than those announced by official media.  For 
example, three exhibition halls, normally a hive of 
activity, were completely closed and another hall for small- 
scale farmers was less than half full.  No livestock was 
exhibited in the agricultural section of the fair, partly 
due to the uncontrolled foot and mouth disease outbreak. 
Many press reports indicated that local exhibitors were 
prevented from taking up their exhibition space when they 
failed to source fuel to make the trip.  Despite attempts by 
the Bulawayo government to minimize bad publicity by trying 
to disperse fuel queues along the main travel routes, 
visitors were greeted by kilometer-long lines of motorists 
at almost every fuel station. 
 
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International Exhibitors Largely Fail to Participate... 
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3. (U) Through 2001, the Embassy regularly maintained a 
stand at the show, including 10 or so U.S. companies and 
several individual states.  At this year's Fair, no U.S. 
company exhibited and most participators were small- to 
medium-sized local companies.  We did not observe a single 
foreign business executive.  Among African countries, only 
Kenya, Botswana, Nigeria, Angola and Ghana attended, while 
global participation was limited to Turkey and the Peoples 
Republic of China.  (Government press reported Austria's 
participation, but we only witnessed a local company that 
markets Austrian solar panels occupying the country's former 
stand.)  Normally high-profile regional and international 
figures -- as well as Angolan president Dos Santos, 
originally scheduled to open the show -- skipped the Fair, 
yet another indication of the serious economic and political 
problems the country is facing.  (Angola's Prime Minister 
represented the country's president after an expected last 
minute cancellation.)  Even the Government of South Africa, 
Zimbabwe's largest trading partner, did not bother to 
attend. 
 
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... While Local Politicians Flock to the Show 
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4. (SBU)  Despite press reports that all accommodation in 
Bulawayo, Zimbabwe's second city, was booked as a result of 
the show, attendance at the Fair was extremely low-key.  In 
fact, Zimbabwean government officials seemed to outnumber 
business people.  The Ministry of Finance Permanent 
Secretary, who shared a ride from the airport to the Fair 
 
SIPDIS 
with us, did not even attempt to offer a positive outlook. 
Instead, he fretted that South Africa was soon likely to 
switch off electricity supplies to Zimbabwe due to lack of 
payment. 
 
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COMMENT 
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5. (SBU)  The dismal attendance and participation at ZITF is 
one more example of an economy in retreat.  Despite the 
GOZ's attempts to spin this as another glorious success, few 
exhibitors, including those from South Africa, saw any 
advantage by making the journey to a moribund event. 
 
Sullivan