South African firms tough it out in Zimbabwe

JOHANNESBURG (AFP) — South African firms are resisting the urge to pull out of Zimbabwe despite an increasingly hostile business climate in the hope they will be in prime position to benefit from a future upturn.

Once a relatively stable market, Zimbabwe has become a nightmare for foreign businesses in recent years with the annual inflation rate now well into eight figures and the government trying to impose prices for goods and services.

Several Zimbabwe-based South African bosses were hauled before the courts last year for overcharging while they are also having to absorb the impact of a new law forcing them to cede a controlling stake to native Zimbabweans.

But analysts say the dozens of companies -- ranging from mining giants and banks to tourist operators -- which are still clinging on are confident that things are bound to get better at some stage.

"I believe that the decision by ...