Some Companies Registered Their Weakest Sales Since GNU In 2019, Businesses Pessimistic About 2020

Businesses have predicted an equally bleak if not worse 2020 as the economy continues to deteriorate Daily News reports. Some companies reportedly registered their weakest sales since GNU in 2019 according to the publication.

Different people spoke to the publication and this is what they had to say about business in 2019:

The environment has been characterised by increasing regulation, fast deteriorating infrastructure, acute shortages of power, water, fuel, foreign and local currencies; increased taxation, harsher borrowing conditions, escalating costs, reduced disposable incomes and hyperinflation. – Powespeed Chair Simba Makoni 

The fact that any economic activity or business depends on con- stant and uninterrupted power each moment to run its operations is no secret. Thus in the event that power goes out unplanned downtime can occur and that can cost businesses thousands or even millions of dollars – ZNCC’s Christopher Mugaga 

The country experienced significant power shortages during the third quarter and the power utility introduced load-shedding for up to 18 hours a day. This affected produce on output and produce on costs as the group switched to expensive alternative power sources – Turnal Holdings’s Rita Likukuma 

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Currently the property sector in Zimbabwe is depressed with little or no sales activity across the different types of property classes. Whereas some transactions have been recorded in the residential sector this cannot be said for commercial and industrial property sectors where activity has come to a standstill – Real Institute Of Zimbabwe’s Alexander Millin 

In the majority of cases prices are firming northward. Companies require foreign currency injection to sustain operations and make goods available at affordable prices. The hyperinflationary pressures keep mounting on business and the ordi- nary consumers by day – CRZ’s Denford Mutashu 

This (foreign currency distor- tions) will continue to feed through to inflation, therefore, there has to be one price for foreign currency a uniform exchange rate that applies for all foreign currency transactions in Zimbabwe –  CEO Roundtable ‘s Oswell Bimha

Some businesses like mining giant Mimosa Mine have reportedly shelved their plans due to the prevailing economic situation.

More: Daily News