A banknote paper supplier withdraws from Zimbabwe.

On 1st July 2008, a German company Giesecke & Devrient(http://www.gi-de.com) which supplies banknote paper to different central banks was forced to withdraw from supplying the paper to the Reserve Bank of Zimbabwe. This followed international pressure. Zimbabwe’s hyperinflation forced the country’s central bank to print more Zim dollars creating demand for the German company’s banknote paper.

In a press statement the company said;
“Our decision is a reaction to the political tension in Zimbabwe, which is mounting significantly rather than easing as expected, and takes account of the critical evaluation by the international community, German government and general public,” explains Dr. Karsten Ottenberg, Chairman of the Management Board and CEO of Giesecke & Devrient GmbH.

In delivering banknotes and banknote paper, Giesecke & Devrient is subject to strict rules defined by the World Bank. The company continues to rely on the political and moral assessment provided by international trade regulators.”

Will this situation slow down the hyperinflation in Zimbabwe? What will the German company do with the profit it made whilst helping to accelerate the downward spiral of the Zimbabwe economy? What will the German goverment do with corporation tax received or receivable on profits from this transaction?

When a ship containing arms from China that were meant to be chanelled to Zimbabwe for use by the ZANU PF government, I felt that China was being insensitive to the whole saga that ensued just after the disputed March 27,2008 elections. However, today I ask you as I ask myself, was the world blind to see that this German company was constructively perpetrating the worst abuse on the people of Zimbabwe by supplying these papers for so long without condemnation?