- Businesses continue to face challenges ranging from currency shortages and lack of access to capital
- The Zimbabwean economy has been struggling for years, with high inflation rates, unemployment, and currency instability
- Many Zimbabweans struggle to meet basic needs, such as food, healthcare, and education, as a result of economic difficulties
Harare-Zimbabwe’s economy is facing multiple challenges, with monetary authorities fighting for currency survival and the population fighting for a meal. The local industry is struggling with cheap imports and a tough operating environment, but few know who to blame.
There are two parallel industries in Zimbabwe - local manufacturers supplying formal retailers and informal retailers stocking cheap imports without paying their dues. Prices for local goods are high, and consumers are buying from street vendors, leading to the question of whether the local industry is in control.
Formally employed individuals in Zimbabwe are struggling to afford basic goods from formal retailers due to low wages. This is not necessarily the industry's fault as wages are being wiped out by parallel market rates before they can be adjusted. Many Zimbabweans are living in extreme poverty, which is a cause for concern.
Zimbabwe has gone full circle on dollarisation, with transactions in USDs as high as 80%, but this has its drawbacks and has made locally-produced goods more expensive. There is a need for industry to recapitalise and for the government to provide some sort of protection to be competitive with imports.
The Ministry of Finance has provided USD22.5 million to modernise production systems, which is a step in the right direction. Zimbabwean producers are using old plant and machinery, raising running costs for utilities like water, power and generators, while also requiring constant intervention.
In conclusion, Zimbabwe's industry faces several challenges, resulting in a drop in demand. It would be unfair to blame the industry entirely, but there are problems that must be addressed. Zimbabwean producers should consider reinvesting in their operations and protecting their industry to be sustainable and competitive in the global market.
Equity Axis News