Zimbabwe Business Watch : Week 41
There is still no end in sight as far as the political deadlock is concerned as much of business teeters on the brink of collapse.
Costs are beginning to rise marginally and some pundits expect that interest rates may climb through to the end of the year pressured by the high cost of offshore borrowing to make up shortfalls. This is not good news for business which is already living in a very uncompetitive operating environment.
However there are signs that demand for goods is rising and this is exemplified by buildings being painted and also mirrored by the building industry which has seen a pick up in business of late.
The problem of imports of more competitive manufactured goods remains and business groups are lobbying government to seek ways to address the issue.
On the street, cash transactions remain the order of the day and the shortage of change, particularly in the north of the country where the US Dollar is the preferred currency, is yet another challenge. The smallest denomination is one dollar and these are in short supply. Consumers are forced to accept extra goods in lieu of change or simply pay a higher price rounded off upwards to the next dollar unit or even multiples of units.
