A cocktail of challenges like foreign currency shortages, rising production costs, liquidity constraints, high inflation, the sharp reduction in disposable incomes, fuel shortages and general economic decline has greatly affected Zimbabwean Industries and they are having a hard time driving revenues and has affected their output which puts the industries on a dangerous path which might lead to their total collapse, Business Times reports.
An industrialist that spoke to the publication on condition of anonymity said:
These had material impact on the operating environment, which has remained fragile and uncertain, making it difficult for us to implement our growth plans. Unless deeper roots of the problems are confronted, the present failure is tied to a number of blind spots that make it difficult or impossible.
Another industrialist who also spoke to the publication on condition of anonymity also said:
Currency depreciation, foreign currency shortages, runaway inflation and interest rates have a negative impact on industries. As a result, industries are struggling to put in place strategies to mitigate the impact of the associated risks.
Analysts have accused the Finance Minister Mthuli Ncube and the Reserve Bank Governor John Mangudya of implementing policies that are only meant to ease the pains of economic misery rather than to eradicate the problem permanently through economic development policies according to the publication.
More: Business Times