Zimbabwe Business Watch : Week 27
The end of the first three months of dollarisation has comer to a close. Most companies have moved on from the relief of earlier in the year and the reality of lack of liquidity, competitiveness, imports, costly borrowing and punitive utility bills is the preoccupation. Bank deposits continue to grow but there is still sufficient political risk to ensure that money does not stay long with the banks and then they, in turn, often fail to provide the stipulated credit to borrowers. Those with the money are able to achieve around 12% on the USD and this money is then not available to industry. More and more investors are snooping around. There are suggestions that imports have dropped off again as external lines of credit have been temporarily exhausted.
July 4th, 2009 13:11
In the present low state of the Zim economy, I don’t see how a business can afford the cost of borrowing on top of all its other costs. Better to struggle along with whatever cash the business does have than to get involved in renting money from others.
July 8th, 2009 04:03
At this point in time there is possibily light at the end of the tunnel. A group of Zimbos in Disporia are pulling together to try and Launch a Zimbabwean Disporia bank. All power to them and lets hope that they meet with success. If your interested in seeing what they are proposing read about it on my blog.
July 11th, 2009 12:34
@Don Cox – Somewhere between my latest business idea, finding Bizsetup Group blog and a renewed faith, i’ve discovered hope for the 1st time in a long while. My advice…keep pushing.