Negative impact of illegal sanctions visible on business

EXPERTS have said illegal sanctions continue to impact negatively on business in the country as they fail to acquire the much-need capital funding.

The illegal sanctions imposed on Zimbabwe by some Western countries continue to stifle development.

Economic commentator Mr Morris Mpala said most businesses and companies were failing to access capital funding from abroad due to the illegal sanctions.

“Illegal sanctions have affected a number of Zimbabwean businesses and companies in various ways. When you look at some of the effects it has had on the local market it has really pushed the prices up due to restrictions, while some businesses have been affected when trying to access capital, make or receive payments from abroad,” said Mr Mpala.

He said most industries and businesses in the country have had to contain doing business with other partners in other countries or having to go through third parties such as agencies. Mr Mpala said some of the agencies were ripping off local businesses i n terms of payments, while others were not being paid on time.

“At times the pricing issues would also not be favourable for the local business with it having losses in terms of the value of goods compared to what they would have got due to dealing with agencies or third parties. We need to look at these issues and say what needs to be done, hence from a Government perspective there is need to engage those countries that have imposed the illegal sanctions, engage them and have a roundtable as they find each other for the betterment of business.”

Mr Mpala said most businesses have either been uncompetitive or they are not making much profits dealing with third parties to access other global markets.

Political analyst Mr Tedious Ncube said sanctions generally have a negative effect on any economy and particularly on industry and commerce and this was not only true in Zimbabwe but in any other country that is under sanctions.

“The consequences of sanctions on the economy, industry and commerce have always been negative. Those that impose economic sanctions also know very well that sanctions have an effect. They have affected micro economic institutions that are key in driving industry and commerce such as the rate, financial services sector and investment sector among others.”

Mr Ncube said industry has also been affected in the sense that it has had to be contained and limited in terms of growth and this has taken away capital for industry to grow, upgrade and update itself in such a way that it can be competitive in the international market.

“Industry in the country does not have much access to cross-cutting technology, innovative and let alone investment which is crucial. Even if they are producing, its inefficient and at a lower scale and this has exposed them to unfair competition particularly from external industries.”

A farmer and businessman, Mr Nigel Sibanda said the ordinary people were suffering the most from the illegal sanctions.

“The illegal sanctions imposed on Zimbabwe have succeeded only in impeding the country’s developmental goals, thereby denying its people of the opportunity to enjoy full development just like any other nation.

“We have all been applauding the Government for the developmental projects that are happening in various parts of the country, but just imagine how much more could have been achieved without sanctions stalking the country,” he said.

As Zimbabwe approaches 25 October, the day sat aside by Sadc as the Zimbabwe anti-sanctions day, African leaders have stood in solidarity with the country in its fight against illegal sanctions as they call for their removal.