Formal sector

ZISCO: The cost of Zimbabwe's kleptocracy

Metal smelting
Smelting

Day by day, we count the cost of this kleptocracy that rules our nation: we count it in terms of the bodies of those who die silently week by week of Aids, malnutrition and poverty; in terms of the disruption of family life, and the misery of the millions of economic refugees; in terms of the desecration of the environment; and, as here, in terms of the cost to the economy brought about by the plunder of national assets. What will be left once this evil is at an end, and the culprits are finally brought to book?

With no real democratic institutions in existence, and no law enforcement, there is no culture of accountability, which leaves the ruling elite free to loot and plunder as they please. When their heinous crimes do come to light, instead of heads rolling, and the government falling into disgrace - as would happen in a working democracy - the rulers treat those over whom they rule with utter contempt, of which the refusal to answer to parliament is a symptom. Without accountability, those in power simply decide amongst themselves what path to take in the latest and largest incidence of national fraud - some are even using it to further their own political agendas!

ZESA bills and the woes of a Zimbabwean exporter

Zimbabwean companies, many threatened with closure, want a review of the foreign currency amount they can retain from exports, if they are to survive in the face of spiraling production and raw material costs. As if the skewed economic fundamentals were not enough to exasperate even the most resilient of exporters, a new regulation giving the power utility, Zimbabwe Electricity Supply Authority (ZESA) authority to bill exporting customers in foreign currency has added to viability challenges. The move aimed at boosting the empty coffers of the power authority, has meant a huge hike of electricity tariffs in local dollar terms. Some companies are said to have reduced shifts in some production lines pending closure.

The Collapse of Tourism

Zimbabwe: a popular tourist destination
A popular tourist destination

In 1997 the countries tourist industry was just getting underway in a real sense. Tourist arrivals reached 1,2 million with nearly 400 000 tourists visiting the Victoria Falls - a record. It was expected that with tourism growing in South Africa at over 8 per cent per annum and tourist arrivals there expected to reach 10 million a year by 2003, that Zimbabwe could look forward to rapid growth in this vital industry.

The tourist industry is an important future growth sector for many reasons - employment; it is estimated that for every 8 tourists visiting the country, one local job is created. This is a very high job creation ratio. Also it is a powerful generator of foreign earnings, it is an industry that is growing fast all over the world and is expected to continue to grow. Finally it is one of the service driven industries and not wholly dependent on resources or fickle global demand.

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