Zimbabwe Business Watch : Week 34

The situation in Zimbabwe has shifted from a crisis to an emergency as the economy is collapsing around businesses which are being forced to accept that if the rescue package does not come to our aid within the next few weeks, they too will be destroyed.

The cash crisis, alleviated for just a few days with the introduction of the new currency, has returned with a vengeance and a number of banks have run out.

Disparities in pricing, services and charges and the cost of goods versus ordinary incomes abounds causing great confusion.

Electricity supply has been reduced due to power station breakdowns and last week saw much of industry and commerce without power.

Government imposed restrictions on exports has had an adverse effect on already embattled industry and sugar refineries have stopped production as their profit generating exports have been stopped.

Government moves one crisis to the next wielding an even bigger stick desperate to prop up political popularity almost at any cost. This runs directly in the face of common sense and general business opinion.

The Zimbabwe dollar plunged over the last week and is trading as high as 1,3 trillion (Quadrillion) to 1 and inflation is being privately quoted at figures even exceeding 40 million percent. Business is pinning its hopes on a prompt resolution to the transitional government talks hoping that the opposition will have its way which will ensure that the international rescue package is secured.

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