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Zimbabwe Summary 2020 Pbd 4 Zimbabwe - Threat Assessment - 2020 Page 1 of 10 of 6.67/1000 estimated as living in modern Zimbabwe � slavery. Zimbabwe has a rating of "C" response. 1. Executive Summary Sanctions & Terrorism: No Comprehensive Grey Lists: Zimbabwe is not listed by the US as Sanctions against the country, though some a Country of Primary Concern in respect of ML former senior leaders are still designated. For & FC, but is listed by FATF, and the EU on their Proliferation - Tier 3 PPI (Proliferation) Index, “Grey” lists. reflects the lowest threat level, but a low score of 254/1,300 for controls. Terrorism ratings NRA: Zimbabwe published its first National from GTI 2019 give Zimbabwe a “Low” impact Risk Assessment (NRA) in June 2015. Overall (Score 2.834/10). ML risk was “High” and national vulnerability "Medium”. The 5 highest proceeds generating Response & Resilience, FATF & OC Index: predicate offences are (i) smuggling (ii) illegal Zimbabwe was evaluated against FATF dealings in gold and precious metals (iii) standards and a report published in 2016. A corruption (iv) fraud and (v) tax evasion. follow up report published in 2019 showed a significant improvement. Zimbabwe scored Corruption: TI CPI - 2019 - ranked 158/180 3.33/10 for resilience (response), ranked 32/54 countries, with a score of 24/100 in 2019. Africa, and 9/13 for Southern Africa in the OC Some improvement from 2018, ranked Index. 160/180 with a score of 22/100. The 2019 TRACE Bribery Risk Matrix - "High" risk score of Indices: Freedom House 2019 Freedom in the 72, ranked 180/200. World Report - score of 29/100 - "partly free" and rated “slowing improvement" 44.7/100 in Organised Crime Index: High Criminality - Mo Ibrahim Index of African Governance. Basel Low Resilience. Criminality 5.41/10 (ranked AML Index 2019 - ranked 13th worst of 125 19th out of 54 countries in Africa, 3rd of 13 countries, with a score of 6.87/10 Southern African countries). Main criminal markets are illegal mining (8/10), illegal Overall Ratings: Zimbabwe is rated overall wildlife crimes (7.5/10), human trafficking “High” Risk, 9 out of 10 Southern African (5/10), drugs - synthetics (5/10) and cannabis countries and 25th out of 40 in FCN’s SSA (4.5/10). On criminal groups State-Embedded Threat Assessment with a score of 37/100, but Actors (8.5/10) and Criminal Networks (7.5/10) with an “Improving” trend. are rated the highest. Modern Slavery: US Trafficking in Persons FCN Rating:”High” Risk 37/100 2020 - Tier 2. The GSI Index 2018 reports Trend “Improving” 105,000 modern day slaves, with an incidence Zimbabwe - Threat Assessment - 2020 Page 2 of 10 Zimbabwe - Threat Assessment - 2020 Page 3 of 10 Economy & Trade: Zimbabwe’s economy 2. Country Information relies heavily on its mining and agricultural sectors. Agriculture represents approx 12% of People & Geography: Zimbabwe means GDP, with industry 22% and services 66%. “great houses of stone,” derived from the Exports: US$4.3 billion - platinum, cotton, Shona language. Victoria Falls, one of the tobacco, gold, ferroalloys, textiles/clothing to seven wonders of the world, is in Zimbabwe South Africa 50.3%, Mozambique 22.5%, UAE and lies close to the Zambezi River. 9.8%, Zambia 4.9%. Imports: US$5.4 billion - Zimbabwe's capital is Harare and it is the machinery and transport equipment, other largest city, followed by Bulawayo. Zimbabwe manufactures, chemicals, fuels, food products has a population of approx 14.5 million (by from South Africa 47.8%, Zambia 20.5% (2017). mid 2020), with approx 32% in urban areas. Migration statistics show that 411,000 migrants Environment: The main environmental arrived in 2019, 933,000 emigrated. challenges facing Zimbabwe are: land degradation, deforestation, inadequate Recent History & Leadership: Recent History quantity and quality of water resources, air & Leadership: Zimbabwe, had free elections pollution, habitat destruction and loss of in 1979 and independence (as Zimbabwe, biodiversity, waste (including toxic waste), from Rhodesia) in 1980, after a long guerrilla natural hazards (mainly recurring droughts), uprising and sanctions, with Robert Mugabe as and climate change. Zimbabwe is not included the nation's first prime minister, and then in the Environmental Performance Index 2018. president since 1987, until his resignation in November 2017. His tenure as president was Tourism: Travel and tourism in Zimbabwe initially widely supported, but in time serious generated US$1.2 billion in 2019 employing economic difficulties led to a challenge to his 161 thousand people (6.2%) and representing authority. In general elections held in March 6% of Zimbabwe GDP. Domestic spending on 2008 the opposition, the Movement for tourism and travel stood at 80% while Democratic Change, under leader Morgan international spending was 20%. Main tourists Tsvangirai, won the most votes in the come in from South Africa (20%), Malawi (18%), presidential poll, but not enough to win Zambia (14%) Namibia (9%) & Mozambique outright. A run-off election in June 2008, (8%), with outbound tourists going to South involved considerable violence against Africa (62%), Botswana (17%), Zambia (8%), opposition party members which led to the Mozambique (4%) & Malawi (6%). withdrawal of Tsvangirai from the ballot. A government of national unity in which Mugabe Finance: According to the ESAAMLG report of remained president and Tsvangirai became 2016, the financial sector was dominated by prime minister, lasted 4 years until Mugabe banks, “with a total asset value of USD 7.2 was reelected president in 2013. In November billion, with 52% of the total banking assets in 2017, Vice President Emmerson Mnangagwa the hands of the top 5 banks.” Zimbabwe’s took over following a military intervention that financial profile includes the following (people forced Mugabe to resign. In July 2018, aged over 15); 28% have Bank account’s, 1.3% Mnangagwa won the presidential election, have a credit card, 49% have a mobile money with optimism that a new dawn for Zimbabwe account, 9.5% make online payments, internet was possible. Mugabe died in September penetration is at 33% via 4.8 million internet 2019. users 12 million mobile connections or 83%. Zimbabwe - Threat Assessment - 2020 Page 4 of 10 3. Country Ratings Available information from leading sources produce almost 60 ratings for Zimbabwe, covering both threats and responses in fighting financial crime, sanctions, proliferation finance, terrorism & terrorism finance. Source Zimbabwe � Source Zimbabwe � Source Zimbabwe � World Economic Forum 63.9/100 Transparency International (TI) 24 / 100 Proliferation Index - PPI Tier 3 Organised Crime Index* Corruption Perceptions Index* (158/180) Threat Lowest Threat Level OC Index “High” Criminality TI & Afrobarometer 25% Proliferation Index - PPI 254/ 1300 Criminality* Citizens Views and Experiences of Corruption paid bribes in last 12 months Controls* 5.41/10 Report Low Controls score OC Index 6.13/10 TRACE 72/100 Global Terrorism Index 2.834/10 Criminal Actors Bribery Risk Matrix GTI - Impact* “Low” impact OC Index 8.5/10 Global Slavery Index 6.67/1,000 US Dept of State No State Embedded Actors GSI Incidence* Country Reports on Terrorism* OC Index 7.5/10 Global Slavery Index 105,000 Global Cybersecurity Index O.192/10 Criminal Networks No of estimated Modern Day Slaves 2018 (113/152) OC Index 5/10 Global Slavery Index “C” Rating Mo Ibrahim Governance Index 44.7/100 Foreign Actors Country Response Rating* (Ratings: AAA, AA, A etc) (49.9 - All Africa)* “Slowing Improvement” OC Index 3.5/10 US Dept of Labor No Rating Freedom House 29/100 Mafia Style Gangs Child Labour Freedom Index* “partly free” OC Index Synthetic’s 5/10 US Dept of State Tier 2 Rated Heritage Foundation 43.1/100 Drugs Trafficking Trafficking in Persons* Economic Freedom Index Cannabis 4.5/10, “Repressed” Heroin 4/10 / Cocaine 2.5/10 OC Index 3.5/10 IOM Migration 933,000 E/ 411,000 I Basel AML Index* 6.87/10 Arms Trafficking E - Emigration / I - Immigration 13th worst of 129 OC Index 3/10 Illegal Unreported and Unregulated Not Included FIU Egmont No People Smuggling (IUU) - IUU Fishing Index Member OC Index 5/10 EU Listing of Countries for Illegal No Interpol Yes Human Trafficking Fishing Member OC Index 4/10 US DoS - Wildlife Trafficking Yes Asset Confiscations Estimated below 1% Illegal Timber Focus / Countries of Concern* Focus Country over 1% of Proceeds* OC Index 7.5/10 Environment Performance Index Not Included Country National Risk Assessment* 2015 Published Illegal Wildlife OC Index 8/10 EUIPO & OECD Counterfeit Goods 0 Financial Information Sharing No Illegal Mining Propensity of Exports Partnership OC Index Low Response Tax Justice Network Not Included US Dept of State Not Listed Resilience* 3.33/10 Financial Secrecy Index INCSR Vol I & Vol II* OC Index 5/10 EU List of None Co operative Not Included European Union List* Yes AML Jurisdictions for Tax purposes OC Index FATF Standards 3.5/10 OECD - Global Forum Not Included 78% Law Enforcement on Transparency & Exchange Info for Tax Purposes 40 Recommendations* OC Index 3/10 Global Financial Integrity US$59 million 2017 - FATF Standards 6% International Co- operation Illicit Financial Flows* 11 IO’s on Effectiveness* 17.55% OC Index 3/10 Embassy’s from N Korea, Syria, Iran Embassies of Iran and Cuba FATF Standards 70% Economic Regulatory Environment or Cuba Core 10 Recommendations Illegal Drug Dependency / 105,295/0.77% Embargoes - Country Sanctions Limited Sanctions FATF Standards 0% Disorders Number/Share (Comprehensive - UN, US, EU, UK) Core 4 IO’s on Effectiveness Numbeo Crime Survey 2020 57.47/100 OFAC Listed Parties 67 Entries FATF Counter - Measures Yes SD List (31/129) with Local Addresses Strategic Deficiencies List* * Symbol Indicates the information is included in the FCN Country Index Zimbabwe - Threat Assessment - 2020 Page 5 of 10 4.
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