The planned retrenchment of between 400 and 450 workers by major sugarcane producer
The economy is facing major headwinds characterised by a debilitating liquidity crunch, foreign currency and fuel shortages, prolonged power outages which last up to 18 hours and runaway inflation that has surpassed the 500% mark, decimating incomes.
"It is not only the 450 at
He prescribed that government needs to urgently address the currency volatility crisis, fueled by the banning of the multi-currency regime through Statutory Instrument 142 last year.
"We have failed completely to de-dollarise and as labour we recommend that we adopt the (South African) rand." The looming retrenchment of
Hopes of reversing the unemployment rate and stimulating economic growth have been dashed by dwindling investment into the country, with foreign direct investment plummeting from
"At 27% capacity utilisation levels, some companies would have closed with follow on effects," CZI chief economist
She added that the slowdown will result in higher unemployment, rising poverty levels, shortage of goods and services, low export volumes and increased shortage of foreign currency.
"As labour, do you hope that your employer will still employ you in 2020 if capacity utilisation will be at 27%?" Bandama queried at the survey launch. "All the other factors like inflation, power shortages, raw material shortages, those are all just branches and leaves, but the root cause is foreign currency."
The depreciation of the local unit has had a devastating impact on the economy. Company balance sheets, value, stocks, pensions and savings have also been badly eroded.
The poor have been the hardest hit by price spikes, rising inflation and eroding incomes. The situation has been exacerbated by exchange rate movements amid signs of worsening poverty levels.
The depreciation of the local quasi-currency is making imports even more expensive, undermining prospects of achieving a period of sustained economic growth and rendering the Vision 2030 target of attaining upper middle-income status a pipedream.
ZFTU secretary-general Kenias Shamuyarira said the retrenchments make it impossible for government to meet its ambitious target of attaining upper middle income status by 2030.
"This is as a result of policy inconsistency," Shamuyarira said. "When you make 450 people redundant in one swoop, by the time we get to 2030, there will be no economy to talk about."
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