There is no more controversial sanctions in Africa than Zimbabwe's. The US alleges the sanctions are targeted and do not hurt Zimbabwe's economy. Zimbabwe alleges the US has got sanctions on the country.
We are going to discuss if the USA's sanctions are targeted why is Zimbabwe's economy struggling.
Zimbabwe sanctions
Sanctions are targeted to certain people including Zimbabwe's president. They foreign assets are frozen. Not sure why politicians have foreign assets,
Certain companies are targeted because sanctioned individuals are owners of major shareholders of the company or have significant influence on the company.
Targeted sanctions hurt everyone
But targeted sanctions have real impacts an economy. Investors don't like risk. The hint of sanctions even targeted ones can turn-off investors. There are other African countries without sanctions so a risk averse investor would choose those countries. Those who want to invest may fear the penalties of the OFAC if a sanctioned person is associated with their business indirectly. All these limit the number of investors willing to do business in Zimbabwe.
Whether or not the sanctions are targeted the effects are on everyday Zimbabweans which begs the questions.
Some of studies show targeted sanctions have less impact, but the research is still in its
days.