{"id":99689,"date":"2024-10-18T11:45:18","date_gmt":"2024-10-18T09:45:18","guid":{"rendered":"https:\/\/www.africa-press.net\/zimbabwe\/all-news\/business-bemoans-challenges-stiffling-growth"},"modified":"2024-10-18T13:48:01","modified_gmt":"2024-10-18T11:48:01","slug":"business-bemoans-challenges-stiffling-growth","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/zimbabwe\/all-news\/business-bemoans-challenges-stiffling-growth","title":{"rendered":"Business bemoans challenges stiffling growth"},"content":{"rendered":"

Africa-Press – Zimbabwe. <\/strong><\/span>BUSINESSES in Zimbabwe have bemoaned a myriad challenges that the sector is facing perennially saying the internal and external factors have continued to undermine its efforts for recovery and growth, NewsDay can report.<\/p>\n

Chief among these challenges include the severe shortage of foreign currency for businesses whose supply chains are regional and international as well as a volatile exchange rate and depreciation of the ZiG against US dollar.<\/p>\n

Giving his remarks at the 42nd Employers\u2019 Confederation of Zimbabwe (EMCOZ) annual congress in Victoria Falls yesterday, the host organisation’s president Demos Mbauya said the erosion of disposable income and consequent negative impact on aggregate demand remained problematic.<\/p>\n

The congress is running under the theme Adaptability and Resilience.<\/p>\n

\u201cThere is severe shortage of foreign currency for business, whose supply chains are both regional and international. Companies are failing to secure foreign currency for critical raw materials and space,\u201d he said.<\/p>\n

\u201cThe emerging buyer-seller market is more buyers than sellers. Talking to some of my colleagues in the industry, when they submit their bids for acquisitions to buy foreign currency on the emerging buyer-seller market, their strike rate is around 10%.<\/p>\n

\u201cIf you go to the willing buyer-seller market, it has been US$400 000, but they are hedging about US$10 000 or US$15 000. This is creating a serious logjam in our supply chain and, therefore, our ability to fulfill our customers\u2019 demands.\u201d<\/p>\n

He said the volatile exchange rate and continued depreciation of the ZiG currency against the US dollar has diminished confidence, leading to a more polarised informal economy, marked by low wages and limited social protection.<\/p>\n

Mbauya said depreciation of the local currency was pushing businesses to the brink.<\/p>\n

\u201cThe erosion of disposable income and investment-needed impact is also subduing the aggregate demand. There is an over-regulation of the informal economy in Zimbabwe, and this has precipitated an upward informalisation of the economy, with a high risk of industrialisation,\u201d he said.<\/p>\n

\u201cAlso to mention the issue of power and energy is severely affecting business operations. No business or no country can operate at optimum capacity if there is no energy.<\/p>\n

\u201cIn addition to all these things, there are some issues in our global economy that we need to deal with. There is a trust deficit and low confidence levels among social and economic actors.\u201d<\/p>\n

He said this was also compounded by climate change and wind-waste-induced droughts and the negative impact on businesses that are linked to the agricultural value chain.<\/p>\n

\u201cThe situation that we have right now is reminiscent of what we experienced in 2006 to 2008. I\u2019m sure you all recall the economic meltdown that we experienced. Companies are now looking at downsizing and retrenchment,\u201d Mbauya said.<\/p>\n

He said there was an urgent need for action to prevent this serious economic meltdown.<\/p>\n

Considering the unstable exchange rate issues experienced last month, Mbauya said, management of the exchange rate was of paramount importance adding that a stable exchange rate and inflation rate would contribute towards economic growth.<\/p>\n

He said once the macro-economic environment is stable, the country needed to focus on locally produced goods and services to accelerate domestic production in the spirit of import substitution and self-sufficiency.<\/p>\n

\u201cThe draft social contract is to be discussed and adopted by the main TNF [tripartite negotiation forum] so that the pillars in the document are approved and implemented,\u201d Mbauya said.<\/p>\n

\u201cThe current power crisis is affecting business viability. While water levels have not improved in Lake Kariba, full impact on electricity generation is being felt soon.<\/p>\n

\u201cWe need to put in place some financial assistance to benefit companies in distress for them to be in a position to source alternative sources of power such as solar and heavy-duty generators.\u201d<\/p>\n

For More News And Analysis About Zimbabwe Follow Africa-Press<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Africa-Press – Zimbabwe. BUSINESSES in Zimbabwe have bemoaned a myriad challenges that the sector is facing perennially saying the internal and external factors have continued to undermine its efforts for recovery and growth, NewsDay can report. Chief among these challenges include the severe shortage of foreign currency for businesses whose supply chains are regional and […]<\/p>\n","protected":false},"author":84,"featured_media":99688,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3,6],"tags":[19],"class_list":["post-99689","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-economy","tag-zimbabwe"],"yoast_head":"\nBusiness bemoans challenges stiffling growth - zimbabwe<\/title>\n<meta name=\"description\" content=\"BUSINESSES in Zimbabwe have bemoaned a myriad challenges that the sector is facing perennially saying the internal and e ...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.africa-press.net\/zimbabwe\/all-news\/business-bemoans-challenges-stiffling-growth\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Business bemoans challenges stiffling growth\" \/>\n<meta property=\"og:description\" content=\"BUSINESSES in Zimbabwe have bemoaned a myriad challenges that the sector is facing perennially saying the internal and e ...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.africa-press.net\/zimbabwe\/all-news\/business-bemoans-challenges-stiffling-growth\" \/>\n<meta property=\"og:site_name\" content=\"zimbabwe\" \/>\n<meta property=\"article:published_time\" content=\"2024-10-18T09:45:18+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-10-18T11:48:01+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/static.africa-press.net\/zimbabwe\/sites\/14\/2024\/10\/sm_1729239439.856469.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"720\" \/>\n\t<meta property=\"og:image:height\" content=\"720\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"cfeditoren\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"cfeditoren\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.africa-press.net\/zimbabwe\/all-news\/business-bemoans-challenges-stiffling-growth#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/zimbabwe\/all-news\/business-bemoans-challenges-stiffling-growth\"},\"author\":{\"name\":\"cfeditoren\",\"@id\":\"https:\/\/www.africa-press.net\/zimbabwe\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"headline\":\"Business bemoans challenges stiffling growth\",\"datePublished\":\"2024-10-18T09:45:18+00:00\",\"dateModified\":\"2024-10-18T11:48:01+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/zimbabwe\/all-news\/business-bemoans-challenges-stiffling-growth\"},\"wordCount\":629,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/zimbabwe\/all-news\/business-bemoans-challenges-stiffling-growth#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/zimbabwe\/sites\/14\/2024\/10\/sm_1729239439.856469.jpg\",\"keywords\":[\"Zimbabwe\"],\"articleSection\":[\"all news\",\"Economy\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.africa-press.net\/zimbabwe\/all-news\/business-bemoans-challenges-stiffling-growth#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.africa-press.net\/zimbabwe\/all-news\/business-bemoans-challenges-stiffling-growth\",\"url\":\"https:\/\/www.africa-press.net\/zimbabwe\/all-news\/business-bemoans-challenges-stiffling-growth\",\"name\":\"Business bemoans challenges stiffling growth - 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