Breaking News

Zimbabwe approaching point of no return

by Staff reporter
12 January 2019 | 1646 Views
Long-suffering Zimbabweans should brace themselves for more price hikes and shortages of basic goods, after stressed companies said yesterday that they were left with an average of about 10 days' worth of supplies of raw materials used in the manufacturing of key products.

This comes as many companies have already closed shop in the past year due to the country's worsening economic meltdown, which has raised fears of a repeat of the ‘Armageddon' of 2008.

Addressing a meeting of business leaders in Harare yesterday, Confederation of Zimbabwe Industries (CZI) president, Sifelani Jabangwe, warned that more companies were on the brink of shutting down unless government acted on the deepening economic crisis.

It was also revealed yesterday that one of the country's leading refrigeration companies, Capri - which was represented at the CZI meeting by its boss Garry Watson - has been closed since November last year.

"Most of our members have less than a month of raw materials because there is no foreign currency to buy raw materials.

"Other companies have notified us that they are jammed with RTGS balances and to avoid making more losses, they have shut down.

"We communicated to government that we don't have more than 10 days because this is beyond us. Companies are shutting down and we have a list of many that have already shut down," Jabangwe said.

Confederation of Zimbabwe Retailers (CZR) president, Denford Mutashu, said there was chaos in government systems which was contributing to the rot.

On his part, Watson said the local market had shrunk significantly because of the economic crunch being experienced, which had forced his company to shut down.

"We have been open since those years of hyper-inflation but now we have closed down since November and we are not producing … 400 people are not at work," he said.

Wholesaling giant N Richards said industry was not producing enough to supply retailers with enough products, as this required the right operating environment.

"Tax evading stock buyers are willing to pay in US dollars while law abiding suppliers do not have the dollars and our shops are slowly emptying while tax evaders are thriving," company director Archie Dongo told the meeting.

Yesterday's meeting of business leaders came as the country's economic situation has worsened since the end of the festive season.

Zimbabwe is currently in the grip of a huge economic crisis which has resulted in shortages of basic consumer goods and medicines.

Apart from experiencing these, President Emmerson Mnangagwa's government is also battling to avoid strikes by civil servants who yesterday rejected a 10 percent salary
increase that they were offered.

The country is also reeling from biting fuel shortages which have disrupted the economy.

On Wednesday, distressed companies also pleaded with authorities to allocate them special supplies of fuel to stop the country's burning economy from imploding altogether.

Zimbabwe Point Return

Source: dailynews


Latest News

Rocks from mountain crush huts in Zimbabwe

by City Press | 24 March 2019 | 1574 Views

'Tax reforms to rescue debt-distressed Zimbabwe'

by Staff reporter | 24 March 2019 | 510 Views

Afreximbank grants Zimbabwe interbank forex trade loan

by Staff reporter | 24 March 2019 | 601 Views

Zimbabwe volcano fears - The Civil Protection Department (CPD) in Masv...

by Staff reporter | 24 March 2019 | 2238 Views

Mnangagwa goes Biblical: 'Zimbabwe accepts will of God'

by Staff reporter | 24 March 2019 | 911 Views

Open letter to President Mnangagwa

by Viniel Deredza | 24 March 2019 | 732 Views

Warriors ease into Afcon finals

by SuperSport | 24 March 2019 | 498 Views

Rights Commission finalising probe into Zimbabwe army crackdown - THE ...

by Staff reporter | 24 March 2019 | 135 Views

3 lawyers banned from practising - THREE lawyers have been banned from...

by Staff reporter | 24 March 2019 | 498 Views

Jabulani Sibanda to bounce back?

by Staff reporter | 24 March 2019 | 684 Views

Questions over Mnangagwa's choice of advisors - ON three occasions, Pr...

by Staff reporter | 24 March 2019 | 198 Views

Potraz board okays tariff increases

by Staff reporter | 24 March 2019 | 172 Views

Horror Cyclone destruction trail unravels - THE human toll of Cyclone ...

by Staff reporter | 24 March 2019 | 111 Views

LIVE: Zimbabwe vs Congo Brazzaville

by Staff reporter | 24 March 2019 | 3414 Views

Zimbabwe debt should be audited - ZIMBABWE should not rush to pay its ...

by John Kachembere | 24 March 2019 | 788 Views

Zimbabwean couple hijacked in Durban, wife missing since Monday - A Zi...

by Staff reporter | 24 March 2019 | 3645 Views

Mnangagwa's days numbered

by Staff repo | 24 March 2019 | 7694 Views

Zimbabwean man dies during sex with SA mistress - A  67- year-old...

by Staff reporter | 24 March 2019 | 3477 Views

Zimbabwean company donates laptops to needy SA varsity students - Zoro...

by African News Agency (ANA) | 24 March 2019 | 1006 Views

Gweru prophet sets up school of spiritual gifts - Gweru-born Prophet G...

by Staff reporter | 24 March 2019 | 467 Views

Potraz brings toll free platforms to rural folk

by Staff reporter | 24 March 2019 | 160 Views

Mnangagwa pledges support for Gukurahundi victims

by Staff reporter | 24 March 2019 | 384 Views

Zimbabwe banks must support the interbank trading - THE interbank mark...

by Andrew Lampard | 24 March 2019 | 259 Views

Robbing the poor in the name of patriotism - The post-Robert Mugabe ad...

by Tawanda Majoni | 24 March 2019 | 213 Views

'Using Air Zimbabwe will pose logistical problems for Mnangagwa' - Dep...

by Staff reporter | 24 March 2019 | 397 Views


Andy Muridzo promises new album

by Simbarashe Sithole | 18 March 2019 | 308 Views

Kwejani band is back! - AFTER an eight-year hiatus, Victoria Falls' su...

by Staff reporter | 13 March 2019 | 1189 Views

Moyo revives Pantsula genre

by Staff reporter | 10 March 2019 | 430 Views

Majaivana's sad farewell

by Bruce Ndlovu | 10 March 2019 | 6756 Views

Nceku shifts base to SA

by Staff reporter | 09 March 2019 | 826 Views

Baba Harare abandoned by band members - Jit musician, Baba Harare has ...

by Staff reporter | 04 March 2019 | 2050 Views

Winky D pays the price

by Staff reporter | 03 March 2019 | 5482 Views