Which survival route now for Zim businesses?

THE measures being taken by government to try and stabilise the economy, though in a reactionary manner, has had ripple effects on those businesses that have been caught in the crossfire.

Though it’s not the first time authorities have descended on those suspected to have been involved in economic sabotage, one wonders why the abuse had been allowed to continue.

Why would government place a blanket suspension when authorities could have checked the history of transactions, taking into consideration that we have systems to do so?

Some businesses were using the mobile platforms for payment of wages and salaries and since June 9, 2020, transactions are limited to merchant-to-merchant, like in our case.

We hope the results of the suspension will ensure the continuation of the various packages previously offered.

Consider this, some businesses and service providers were actually affected by the COVID-19 pandemic well before the lockdown measures were announced.

Now that the regulations have been slightly relaxed, they were about to restart operations, then boom, comes the suspension of mobile money transactions.

This in itself has choked the little hope these businesses had of survival. Adding to this misery is the COVID-19-induced rental arrears.

Property owners are demanding payment of rentals. So considering that we eat what we kill, more businesses will definitely fold.

The authorities should be clearer in their policies and as I write, the economy has moved back to dollarisation.

Talk about the country having its own currency is not sincere when the market forces are indicating otherwise.

Enter forex auction system and after two auctions there is no sign of stability.

In the midst of the lockdown, property owners are benchmarking rentals to the prevailing United States dollar auction rate on date of payment.

This is leaving no breathing space for the businesses. Though for now the black market rate may seem not visible, the truth is it’s still very much active and relevant. Businesses need breathing space of some sort to absorb the pressures of the lockdown and stagger along.

The economic fundis are alive to the fact that it is a mammoth task for businesses to build the needed working capital in forex, especially considering the global economic turmoil caused by the COVID-19 pandemic and that the pandemic caught us in our own economic, social and political logjam.

If this crisis cannot be the convergence point for all Zimbabweans to get the right prescription for the ailment that has afflicted our country for such a long time, at which point then should we do so?

In this and other numerous measures our government officials are working on to stabilise and restore value to our currency, we should never forget their predecessors’ efforts, which have largely failed.

Kurauone Mutemaringa