Zimbabwe Business Watch : Week 14
March 30th, 2009
Generally speaking business has welcomed the new budget from the Minister of Finance as he attempts to halt the rapid economic meltdown whilst bringing about some stability and confidence.
Restrictions are slowly being lifted in an attempt to allow market forces to determine prices and values across the private sector.
The use of the Zim Dollar has been frozen but all recognized foreign currencies will remain legal tender until large scale support for the financial sector is forthcoming. These incentives are balanced against demands for transparency and responsibility in business dealings as government brings all players into a single economy.
At the same time, public utilities are bringing their charges into line with the region. The Stock Exchange is recovering albeit modestly and share prices appear to be within reach of the JSE.
Some large mines have announced plans to re-open as they respond to the stimulus offered by the Minister of Finance.
Cash flow remains critical. The small amount of forex reserves available in banks, is denying those that wish to re-capitalize the opportunity, in order to compete against imports.
