Harare – Nearly every sector of the Zimbabwean economy continues to slump – and here we look at the ten main reasons why the economy is con...
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Harare – Nearly every sector of the Zimbabwean economy continues to slump – and here we look at the ten main reasons why the economy is continually receding.
Here is why:1. Foreign investment has shrunk since President Robert Mugabe's Zanu-PF party won elections in 2013 partly on a mandate of 'indigenisation', which required all firms to cede economic control to black Zimbabweans
2. This had echoes of the country's land reform programme, which saw the seizure of land from some 4 000 white farmers. The agricultural sector, once the backbone of the economy, is still in disarray.
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| The Zimbabwean Economy Continues to Take a Dip |
3. Since a Supreme Court ruling last year making it easier for companies to get rid of employees, it is estimated that up to 30 000 have lost their jobs.
4. Formal employment stands at about 10% - many make their living doing cross-border trading
5. But the government is trying to stop this as it has physically run out of cash because the country imports more than it exports
6. Zimbabwe abandoned its own currency in 2009 in order to stem runaway inflation - and now mainly uses the US dollar or South African rand
7. Plans to introduce local "bond notes", pegged to the dollar, have sparked protests
8. Civil servants being paid late as the government cannot pay its bills
9. High levels of corruption
10. The government has not been able to agree new loans with the IMF and World Bank as it has not undertaken the economic reforms they demand. - BBC
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