Zim industry capacity utilisation down by 6.2 percent: study

Zim industry capacity utilisation down by 6.2 percent: study 1

By Alois Vinga THE Confederation of Zimbabwe Industries (CZI) says local industry capacity utilisation has dropped by 6.2 percent with signs it could further slip if protective measures were not put in place to reverse the downward spiral. This was revealed in a recent survey conducted by the business oriented organisation. The survey, entitled, “The 2018 CZI Manufacturing Sector Survey” says that from August 2018, capacity utilisation in November 2018 declined by 6.2 percentage points to 42 percent. “The decline in capacity utilisation was mainly a result of policy Inconsistency…

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IMF warns of no-deal Brexit risks with time running out for UK

IMF warns of no-deal Brexit risks with time running out for UK 3

22nd January 2019 Business, Economy By Bloomberg The International Monetary Fund renewed its warning about the risks to the UK’s economic outlook if Britain leaves the European Union without a deal. The Washington-based lender held its 2019 growth forecast at 1.5%, saying the fiscal stimulus announced in the October 29 budget would likely help offset the dampening effect which Brexit fears are having on the world’s fifth-biggest economy. However, “substantial uncertainty” surrounds the estimate. “This baseline projection assumes that a Brexit deal is reached in 2019 and that the UK…

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South Africa refused Zimbabwe emergency loan request

South Africa refused Zimbabwe emergency loan request 4

BBC South Africa has said it rejected a request from Zimbabwe for an emergency loan of $1.2bn (£932m) in December. Zimbabwe’s government had hoped the cash would help stabilise the economy and resolve fuel shortages in the country. South Africa did not have “that kind of money”, a Treasury spokesman said. A fuel price hike imposed shortly after the request was rejected has led to violent clashes. The opposition says four of its MPs have been detained. The government has blamed the opposition Movement for Democratic Change (MDC) for stoking…

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SA finance minister confirms short-term Zimbabwe bail out plan

SA finance minister confirms short-term Zimbabwe bail out plan 6

By The Daily Maverick SOUTH Africa is planning to extend short-term credit to Zimbabwe and also to help it write off its US$7.4-billion external debt, to prevent its neighbour spiralling out of control. Critics say this will be a waste of money unless it can pressure Zanu PF to make political reforms. Finance Minister Tito Mboweni disclosed the plan in an interview with Daily Maverick as Zimbabwe slipped closer to the brink after a massive fuel price hike on January 12 sparked a general strike and then widespread street protests, many of…

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No respite for Zimbabwe’s battered economy; protests cost industry $300m

No respite for Zimbabwe’s battered economy; protests cost industry $300m 8

Business Report THERE has been no quick respite for Zimbabwe’s battered economy following four days of a massive protest action against steep increases in the price of fuel, with the Confederation of Zimbabwe Industries (CZI) saying as much as $300 million in production had been lost out and the Zimbabwe Stock Exchange (ZSE) halting trade for two days this week. Despite the three day protest action and continued tensions sparked by the massive fuel price hike announced by the government, fuel supplies had still not improved and commuter fares were still exorbitant,…

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Experts: Government rebate incentive will not keep prices down

Experts: Government rebate incentive will not keep prices down 10

By Alois Vinga ECONOMIC experts say government’s rebate incentive offered to firms to entice them not to hike their prices will not bring any price stability in a volatile economy dominated by mistrust between government and busness. Announcing a fuel hike a week ago, President Emmerson Mnangagwa said the rebate system offered to manufacturers, mines, transport and the agricultural sector was aimed at averting a resultant hike on goods. Finance Ministry’s secretary George Guvamatanga also said the arrangement will see players being refunded all the extra costs they would have…

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Consumer Council boss blasts govt economic advisors for leading country astray

Consumer Council boss blasts govt economic advisors for leading country astray 12

19th January 2019 Business, Economy By Business Reporter CONSUMER Council of Zimbabwe (CCZ) deputy director, Rose Mpofu has scorned government’s highly qualified economic advisors for allegedly leading the country astray and failing to proffer correct advice to avert the current economic mess. She was speaking during last week’s retailer’s breakfast meeting in Harare. “It is disturbing to note that most government departments have a lot of economists coming in all shapes and some even being called chief economists. But why after such efforts of investing in education do we continue…

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Zimbabwe inflation data hugely understated – economists

Zimbabwe inflation data hugely understated – economists 13

18th January 2019 Business, Economy By Business Report HARARE: A steep rise in Zimbabwe’s inflation has worsened the country’s economic plight, with Zimstats data showing yesterday that inflation now stands at 42 percent, but economists say the figures are hugely understated. The country is battling to tame price increases exacerbated by a foreign currency crunch that has been pushing up prices of goods and commodities. Zimstats said Zimbabwe’s year-on-year inflation rate for the month of December 2018 as measured by the all items Consumer Price Index (CPI) stood at 42.09 percent.  This…

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STEVE Hanke: Zimbabwe’s Monetary Death Spiral

STEVE Hanke: Zimbabwe’s Monetary Death Spiral 14

This flagrant abuse of property rights and the rule of law sent the economy into a deep dive. From 2000 to 2008, real G.D.P. per capita contracted on average by 8.29%  per year. During this period, Zimbabwe ran large fiscal deficits financed by printing money and experienced the second most severe case of hyperinflation in history. On November 14, 2008, the annual inflation rate peaked at 89.7 sextillion percent every day, making Zimbabwe’s 100 trillion dollar notes worthless. In the end, the government was forced to scrap the Zimbabwean dollar, because Zimbabweans simply refused to…

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Inflation Shock at 42.1%; Adds to Harare’s Woes

Inflation Shock at 42.1%; Adds to Harare’s Woes 17

18th January 2019 Business, Economy By Agencies Zimbabwean consumer prices rose at a new post-hyperinflation record pace in December, adding to the economic woes of a country that’s reeling from foreign-exchange and fuel shortages. Inflation accelerated to 42.1 percent, from 31 percent in the previous month, the Zimbabwe National Statistics Agency said in a statement emailed Thursday. While that’s well below the 500 billion percent the International Monetary Fund estimated it reached in 2008, there are big price discrepancies depending on whether goods are paid for electronically or with banknotes,…

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