Zimbabwe Business Watch : Week 12

There are signs that the business environment is changing slightly as the easing of restrictions allows free market forces to once again catalyse transactions. Some areas of the retail industry are seeing an upturn albeit that this is from a totally depressed position.

Whilst construction and heavy industry are yet to show signs of any real revival, smaller business is beginning to trade comfortably within the limits of the cash market.

FCA for both individuals and companies has meant that a mechanism for legitimate dealing is there and this in itself has resulted in a small upturn.

The remaining constraint is cash flow as donors are still to be found to dollarize the financial sector, so necessary if the broader economy is to begin a significant revival.

Through the workings of the new government, service charges and other cost factors are being reduced to regional levels reducing these charges by up to 60% in some cases. On the other hand companies are being challenged by restless unions who are demanding excessive pay increase which threaten both the recovery and viability.

This entry was posted by Sokwanele2 on Thursday, March 19th, 2009 at 1:03 am. You can follow any comments on this entry through the RSS 2.0 feed. Both comments and pings are currently closed.