10 January 2019

Zimbabwe: Business Shutdown Looming, Govt Urged to Quickly Act

The country's current economic situation prevailing will force local businesses to shut down in ten days should government fail to find a solution, economists have said.

Speaking at a panel discussion during the Confederation of Zimbabwe Industries (CZI) breakfast meeting in Harare today, economists urged government to let the markets determine the currency to use or prepare for total shutdown.

"I doubt if we have more than 10 days without business shutting down in the country. More companies are keeping on closing and we have some who did not come back from the December holiday," said Sifelani Jabangwe CZI President.

The N. Richards director Archie Dongo blamed the current situation on government insistence that bond notes are at par with the United States dollars saying this has caused people in the business sector to suffer.

"The law abiding retailers' shelves are slowly empting. If you follow the law yet the supplier is saying he wants US$ we do not have any other choice than to close the business because the government cannot provide us with the money which the supplier is demanding," he said.

Kipson Gundani, Chief Executive Officer of the CEO Roundtable also urged government to do away with the 1:1 exchange rate and allow the market to determine what it wants.

Consumer Council of Zimbabwe representative, Rosemary Siyachitema blamed economists for failing to give government the correct advice on the direction to take leading to the prevailing unfavorable situation.

"Consumers suffer more when the situation is like this and the government is quiet and we have many economists who brag about their certificates but they are not advising the government," she said.

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