Back in 2016, The Reserve Bank of Zimbabwe began using $10 million worth of “bond” notes as a replacement for traditional money, in an attempt to ease the problems, the country currently has with liquidity. Not only where the bond notes met with uncertainty when the country first began to introduce them, but they could pose a serious problem with PR nearly two years later, as they’re harming the area’s ability to attract international investors.
According to financial analysts from South Africa’s Rand Merchant Bank, Neville Mandimika announced that while the local feeling towards the bond notes has softened over the last two years, there’s still a lot of problems for the country to overcome. For instance, many people stare still confused about the bond notes and how they can coordinate with existing financial policies.
Problems for the Zimbabwe Brand
It’s often easy to forget that countries and locations, like businesses, can come with their own brand and reputation. In a time when Zimbabwe is desperate for the attention of the right investors, the country could be facing some serious troubles with this bond note issue. Particularly, investors have no idea what the bond notes are going to mean to the company in the grand scheme of things. Will the bond notes still be in place fifteen years from now, or is it just a part-time policy?
If they want to improve their chances of investment, the PR organizations responsible for boosting Zimbabwe’s identity will need to implement a plan to improve confidence about the future of the country’s currencies. On the international scene, the very concept of bond notes can be enough to conjure up dangerous images with fixed-income investments. One particularly important thing to remember is that the term “bond notes” in Zimbabwe is likely to mean something very different to the phrase used in the US.
For most investors looking to drive their money towards Zimbabwe, the concept of the bond notes is something that’s not easily understood or articulated right now. PR exercises need to be put in place to improve understanding about what the bond notes mean, and how they’ll affect investments in the long-term.
What Zimbabwe Needs to Do Next
During a conversation about Zimbabwe’s reputational standing, Mandimika suggested that the country needs to start taking advantage of the changing international sentiments around the space and look for ways to strengthen their policies. To some extent, prospects for Zimbabwe are looking much better today because many people no longer think that the area is going to be struggling from financial woes for the next four or five years.
As the conversation begins to change, there are opportunities for investment out there, but there are policies to clarify, positions to address, and plans to set in motion before anything significant can happen. Sentiment is on Zimbabwe’s side right now, but the country needs to make sure that the policy proposals going forward are as clear as possible – particularly after the elections take place.
5WPR CEO Ronn Torossian – founder of 5W Public Relations.