Zimbabwe Business Watch : Week 13
The business environment continues to stablise although there is a serious cash flow problem as the new government makes its plea for international assistance to fund the financial sector and to provide support for basic infrastructure.
The stock exchange is trading and the real share values reflect the state of play as Dollarisation allows observers and pundits the chance to invest wisely after the confusion of the ZD values of the recent past. More and more carrot and stick regulations are being brought into effect making it clear that those that respond to a return to relative normality will be rewarded.
Penalties for Forex transgression have been increased in parallel to the incentives necessary to streamline business and lure cash to the revenue service.
Excessively high utility bills are being reduced to regional levels allowing business the chance to compete.
Pressure remains though, as most companies are yet to build up their forex resources and unrealistic wage demands place the chance of viability in jeopardy.
The suspension of duty on basic goods has been extended to June 30th as local industry gears itself to produce once again.
Generally, progressive free trade policies are being implemented whilst at the same time policing is being increased.
