Ordinary Zimbabweans are already living through very hard times and that state of the economy will stay the same as that is not what's targeted [by sanctions]

Nkosana Moyo

"When you are sitting outside looking in, there wouldn't be the security that you need to commit capital or resources over any meaningful time frame, and that predictability is required in private sector operations."

Dr Moyo was appointed in July 2000 but resigned in May 2001 after publicly speaking out against attacks on businesses and factories by war veterans.

His assessment came as Australia warned it could impose similar sanctions on Zimbabwe as the US and European Union, if opposition leader Morgan Tsvangirai is barred from taking part in the presidential election on 9-10 March.

On Monday Mr Tsvangirai was charged with treason by plotting to kill President Robert Mugabe.

Sanctions ineffective

Dr Moyo does not think the sanctions will hurt the population or the economy.

Dr Moyo now works for the World Bank

"Ordinary Zimbabweans are already living through very hard times and that state of the economy will stay the same as that is not what's targeted," he said.

Nor does the former cabinet insider believe the sanctions targeting Mr Mugabe and some of his government ministers will change their policies, because they see themselves as victims.

"I'm not in their position, but all I can say is that they probably feel the world has not empathised with their point of view," he said.

The US and the EU imposed the targeted sanctions in a row over observation of the election.

Technocrat involvement

After Dr Moyo resigned in May last year he took up a position at the World Bank's International Finance Corporation.

The former banker with Standard Chartered was not a member of the ruling Zanu-PF party, but was brought into the government as a technocrat to lend its economic policies some credibility with the International Monetary Fund.

Mr Mugabe had urged Dr Moyo not to resign.