Zimbabwe Business Watch : Week 42
October 27th, 2009
Industry and Commerce faced another week of more of the same as the economy sputtered in the midst of modest recovery.
The same constraints of shortage of foreign capital, high interest rates and excessive service charges continue to plague business’ fight for survival. These pressures have produced a further increase in inflation in just of just under a half of a percent (Month on Month) and there has been an upward trend since June which is showing the extent of the localised rise in costs.
Because most imported goods come from South Africa and are costed in USD, the strengthening Rand has worsened the problem. Some of the larger banks have over 50% of the employees on forced leave and, when the banking sector feels the pinch, it is clear that there is something radically wrong with the economy.
However, the retail sector continues to grow, buildings are being re-painted, and there is a small upsurge in construction activity.
Competition is stimulating creative and more aggressive advertising and the consumer is being offered more and more choices.
On the street, challenges of the lack of change continue in a market where most transactions continue to be transacted in notes.
