Zimbabwe Business Watch : Week 47
November 23rd, 2009
Tourism, once one of the cash cows of the economy, is on the mend. Recent figures show a dramatic turnaround. In the last 3 months hotel occupancy has risen from about 30% to around 70%. However, the effect is being mainly felt in key tourist destinations such as the Victoria Falls and other centres are yet to benefit significantly.
The shortage of cash is affecting day to day business dealings and this is constraining the expansion that is evident in various sectors of the economy.
Banks are nervous amid reports of a large shipment of new Zim Dollar bank notes that have arrived flown in on an Air Mauritius flight, add to the concern. Part of the consignment arrived in Bulawayo for disbursement two days ago.
There is a steady transition to US Dollars in the South where the Rand once dominated. It seems that the South African currency is being consumed in cross border trade as cash. More and more US Dollars are circulating and these notes are deteriorating in quality and literally falling to pieces in some cases. Traders are often refusing old notes and this is causing conflict at stores and vendor stalls despite the US Embassy issuing a directive on the validity of soiled cash.
Investor excitement continues to circulate in the business community as bargain hunters abound hoping to pick up attractive deals before there is a secure political settlement.
