Zimbabwe Business Watch : Week 6
Here and there a few factories have begun limited production but, by and large, most major manufacturers are adopting a wait and see attitude following last week’s Budget.
Effectively “Dollarisation” has occurred although, in theory, the Zim Dollar remains legal tender.
Most Quasi and State enterprises are now permitted to charge in forex and the revenue collection service is gearing itself to accept Rand and USD, the two main foreign currencies. This is amid massive inflation and the complete breakdown of day to day business functions.
Exporters have lost their competitiveness and local companies cannot match the price of imported product in the Zimbabwe market making a very grim picture.
The recent accord between the MDC and ZPF gives hope for some stabilization of the economy followed by a recovery programme if the Transitional Government is allowed to succeed.
There remain fears that there will be many agents deployed to scupper the deal in order to prolong the political status quo.
