Zimbabwe Business Watch : Week 40
Reports of harassment of Business People continue to filter through at a time when Government appears to be looking for an honorable withdrawal from this chaotic situation.
It is certain that the general population have not swallowed the Government propaganda and as a result, blame for the consequences, such as shortages, has been placed firmly at the feet of the ruling party.
Whilst companies continue to conduct their business in an environment of fear and intimidation, there is some progress in negotiations with Ministry, often on a sector by sector basis.
In the meantime, Reserve Bank has entered the parallel market and this is driving exchange rates rapidly upwards, reaching close to 600 000 to the $US by the end of last week. Companies are suffering enormous cash flow problems as their costs continue to rise at an alarming rate whilst prices have been more or less static and production levels are at an all time low.
