The Zimbabwe Independent analysts predict an imminent closure of many companies or retrench employees as a result of the current economic crisis.
They cite, among other issues, the ever rising inflation as a factor that can lead to company closure or at least employee set off. For them, an announcement by Old Mutual Zimbabwe on March 29 2019 that the group intends to trim more than 10% of its workforce in a retrenchment exercise is a ponter of what is to follow in the business sector.
Their article notes that although ZIMSTAT reports are always overtaken by events, they reflect an increase in inflation.
The Confederation of Zimbabwe Retailers (CZR) survey, as cited in the article, indicates that the country’s retail sector is declining this year. The decline is attributed to hyperinflation and a mismatch between commodity prices and consumer incomes. Scarcity of foreign currency in the market, increase in transportation charges and advancements in labour costs are believed to be the major constraints to most retailers who want to import merchandise,
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More: The Zimbabwe Independent