CONTENTS NEWSFLASH 7 News Highlights 9 Psst 10 South Africa Watchdog

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________________ FEATURE________________ 11 AIDS and your workforce: What employers should know

COUNTRY BRIEFINGS 15 Madagascar: Asians flee as disaffection mounts

16 Mozambique: Drought is a secondary factor 17 Sudan: Debt agreements bring some breathing space 18 Malawi: Budget speech confirms negative GDP growth;

18 Incentives boost small-scale Malawian exporters 19 Tanzania: Tourism policy-makers must take a major decision

20 Kenya: Employers unveil a six-point economic plan;

61 Action must accompany the call for Kenyanisation

62 Nigeria: The pitfalls of privatisation 62 Guinea: Making the most out of bauxite 63 Mauritius: Donors give backing as positive economic indicators are announced

64 Sierra Leone: Diamond and iron firms may be on the brink of closure

ZIMBABWE SURVEY

21 Cover

23 Overview: The economy is headed into leaner times

25 Economic indicators: Table

27 Agriculture: The challenge of matching grain output with grain demand 30 Construction: Thanks to a workable credit scheme, the housing sector is flourishing

33 Industry & Trade: The challenge of operating with lower foreign-exchange allocations 39 Transport: Local company operates turbobus 41 Pharmaceuticals: Adding more value locally 43 Mining: Lack of foreign-exchange is the biggest worry

47 Finance: New arrangements 47 Agricultural Machinery: Local tractor 48 Beef: Who will take the bull by the horns? 53 Film Industry: Promoting Zimbabwe as a site for location filming

55 Tourism: Zimbabwe takes centre stage

______________SECTOR BY SECTOR______________

65 Agriculture: Private firms market smallholder crops in Malawi;

65 Sao Tomb e Principe wins funding for palm-oil mill;

65 Ugandan workers desert tea plantation 66 Banking & Finance: Zambia resumes forex auctions;

67 Mauritius may end bank secrecy 68 Energy & Mining: Fuel is flooding out of Uganda;

68 Uganda begins prospecting for oil; 69 Zaire will market cobalt in London; 69 Guinea diamond fetches record price;

69 Soviets study Ghana alumina plant

70 Infrastructure: Message to Central & Southern Africa - Dares Salaam is ready for more cargo (See also Newsflash, page 7);

71 Cameroon electrification funding

71 Manufacturing & Technology: Tanzania turns down local firm's bid to manufacture locally designed tractor; 72 Tanzania joint venture assembles thousandth chassis;

72 Kenya’s mega-brewery opens its own glass factory 73 Market Network: Kenya wrestles with decontrolled beef prices; 74 New newsletter for Eastern & Southern Africa, plus business guides for

Ghana and Malawi

74 Transport & Communications: Cote d’Ivoire and Burkina Faso part company on RAN railway; 74 Benin port wins funding; 76 Nigeria raises telephone charges;

76 Nigeria opts for fewer flights;

____________ 76 Ghana embarks on road-building scheme

1 H AIDS is hitting the age group that forms the I very backbone o f Africa’s economies, both urban and rural. Employers must formulate a clear-cut, effective policy to help their workforce deal with AIDS. If they don’t, their employees will suffer, and so will the company.

Zimbabwe

Survey

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0 4 AB presents its annual ZIMBABWE « I SURVEY. This year’s 40-page centre pull-out features economists’ projections for 1987 and beyond, as well as coverage o f key sectors, from agriculture to tourism.

A A company in i I Western Tanzania recently mounted a bid to design, build and produce a tractor for the Tanzanian farmer. The protype got good marks from the experts during testing. Now, though, the government has given the local tractor the thumbs down, in favour o f vehicles assembled from imported kits. Our Tanzanian investigators report

African Business May 1987 5