Hardier Africa investors undeterred by Zimbabwe

By Peter Apps

LONDON (Reuters) - Zimbabwe's much-criticised election may put some cautious investors off Africa in general, but those already in the region are unlikely to be deterred.

The handful who piled into Zimbabwe itself ahead of and immediately after the first round of elections in March betting on an eventual end to President Robert Mugabe's rule and economic recovery are still hanging on, saying they are in it for the long haul.

Mugabe himself was in Egypt on Monday to being pressured by an African Union summit into negotiate with opposition leader Morgan Tsvangarai, who withdrew from Friday's ballot because of attacks on his supporters.

Having long remained quiet over economic collapse in what was once a prosperous country, African leaders and states including South Africa are now keen to express distance from Zimbabwe, some -- particularly in the region -- expressing worries trouble there might harm them.

"It has effects, particularly in terms of (foreign direct investment), because people are now classifying the region as unstable," Swaziland central bank governor Martin Dlamini told Reuters at a separate meeting in Switzerland.

"We actually lose out on any sort of possible investment... I want to emphasise that what is happening in Zimbabwe is nothing to do with the rest of southern Africa." he said.

Investors and analysts worry any further meltdown in the country could send even more refugees pouring into neighbours South Africa, Mozambique, Zambia and Botswana, raising already worrying social tensions and potentially draining coffers.

South Africa saw widespread xenophobic violence against migrants including Zimbabweans earlier in the year, and analysts say they could expect more of the same.