Zimbabwe Business Watch : Week 37
September 8th, 2009
More of the same greeted business this week: tightening credit, excessive utility bills, and masses of imported finished goods. The fundamentals remain the same and industry cannot compete with those in the region, particularly South Africa. Unreasonable wage demands, coupled with other costs that far exceed the Southern African average, place viability and employment in serious jeopardy.
There is some fresh optimism with the SADC conference continuing and the insistence on the part of the MDC that Gono goes!
Also there is hope that Zuma’s visit will begin to result in compliance with the GPA which will in turn release the desperately needed finance to fund the economic revival.
The state media reports that the IMF has released USD 400 million but commerce and industry remain sceptical. The latest bank results indicate a number making losses over the six month period.
Property is depressed due to the absence of mortgage finance.
Industrial Rent is still below the regional average and yet residential prices are up to double those of South Africa.
In general, business morale is slipping.
