Zimbabwe ruling party will shrug off smuggling expose

Significance

Such smuggling represents not only an opportunity for personal enrichment, but reflects Zimbabwe’s pressing need for foreign exchange (forex) and inability to access conventional sources due to persistent economic mismanagement.

Impacts

• Blatant abuse of diplomatic privileges will hinder Zimbabwe’s efforts to end its international isolation.
• Evidence of state officials engaged with organised crime may trigger blacklisting by the G7 Financial Action Task Force on money laundering.
• Government spending will increase ahead of the election, potentially aggravating inflation and strains on forex reserves.