CEOs And Senior Executives In Zimbabwe Express Lack Of Confidence In The Eeconomy

CEOs and senior executives in Zimbabwe have expressed a significant lack of confidence in the country’s economy, according to the latest Business Confidence Index (BCI) from the CEO Africa Roundtable. The survey, conducted before the recent budget announcement, paints a pessimistic outlook for business sentiment and prospects.

The CEO Africa Roundtable’s CEO, Kipson Gundani, stated that the majority of executives are concerned about the future. Gundani told NewsDay:

The confidence index was done before the budget, but nevertheless, it paints a pessimistic picture where most of the executives are pessimistic about the future. And, if you are to judge from the comments then given after the budget, I think most executives feel worried about the level and types of taxation within the budget.

They also paint a very bleak picture about the macro-economic framework that is expounded by the budget. Notable items are to do with wealth tax and the IMTT (Intermediated Money Transfer Tax) which in its design was meant to bring the informal sector into the tax bracket.

The government and its partners, like the International Monetary Fund (IMF), have already predicted a difficult year for Zimbabwe in 2024. One of the reasons is the decrease in value of the Zimbabwean dollar compared to other important currencies, especially the US dollar. Another reason is the decreasing prices of minerals which Zimbabwe rely on for foreign currency. Additionally, there are worries about a possible drought and famine. This is especially concerning because the economy is already facing challenges.

Oswell Binha, the CEO Africa Roundtable chairperson, emphasized that Zimbabwe’s economy has long been fragile and unable to capitalize on global economic booms or shield itself from internal and external threats. He criticized the excessive taxes proposed in the 2024 national budget, believing they will further burden businesses and individuals amidst an already volatile economic environment.

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