Economic forecast gloomy as more companies close down

Willards is one of the brands that will be disappearing from the shelves

By Tichaona Sibanda
SW Radio Africa
20 January 2014

The Zimbabwean economy is still struggling to stabilize almost six months after the elections, forcing many companies to close down.

Simon Muchemwa our correspondent in Harare said company closures have hit all sectors of the economy with scores of big companies that used to employ thousands of people either on the verge of collapse or having closed down completely, leaving workers in dire situations.

Muchemwa said the situation has been made worse by the controversial indigenisation law, which requires foreign companies to cede 51% shareholding in their companies to locals. This law has only helped to scare away much-needed foreign investment in the country.

The ruling ZANU PF government has pledged to reform state enterprises that have bled the economy for years, while major companies continue to retrench staff. These companies are platinum miners Zimplats and Unki, Bindura Nickel, Spar supermarkets, Dairibord, Cairns, Olivine Industries and PG Industries.

The country’s 80 state parastatals owe each other more than $1billion, and much of the country’s $6.1billion public debt is attributed to losses by these badly managed public enterprises, whose chief executive officers earn hefty salaries.

Muchemwa told us that a report released by the National Social Security Authority revealed that the period July 2011 to July 2013 saw a total of 711 companies in Harare close down, leaving over 8,000 people jobless.

Some companies have withdrawn from the Zimbabwean market due to the dire economic climate. Reckitt & Colman, more recently known as Reckitt & Benckiser, the manufacturers of Dettol and Disprin closed shop after decades operating in the country.

Other well known firms disappearing from the shelves include Willards, Cairns Wines, Nugget shoe polish, and Charhons chocolates.



26 Responsesto “Economic forecast gloomy as more companies close down”

  1. Common Sense says:

    ZANU-PF should hang for this

    • Chimbwido Warvet says:

      Your ignorance is legendary. You should not hang the wrong people but the Wall Street bankers and corporations that are milking us dry everyday of our existence. There is no need for us the taxpayers to bail them out when they fail. There is no corporation or bank that is too big to fail. Capitalism dictates that if a business fails, it should not be rescued at all but to let it go under and let the market forces prevail. You need to wake up and smell the coffee buddy and apportion blame where it truly belongs. Politicking for the same of it without making sound arguments is not good enough buddy. That is why your political party, MDC-T always lose election after election. The electorate wants politicians who are articulate, make their views and arguments clear to them and only will they be persuaded them to vote for the MDC-T. That is the way to go if you want your party to win the 2018 elections.

    • Chimbwido Warvet says:

      Your ignorance is legendary. You should not hang the wrong people but the Wall Street bankers and corporations that are milking us dry everyday of our existence. There is no need for us the taxpayers to bail them out when they fail. There is no corporation or bank that is too big to fail. Capitalism dictates that if a business fails, it should not be rescued at all but to let it go under and let the market forces prevail. You need to wake up and smell the coffee buddy and apportion blame where it truly belongs. Politicking for the same of it without making sound arguments is not good enough buddy. That is why your political party, MDC-T always lose election after election. The electorate wants politicians who are articulate, make their views and arguments clear to them and only will they be persuaded them to vote for the MDC-T. That is the way to go if you want your party to win the 2018 elections.

  2. Active SSD says:

    All that will be left are Chiyangwa’s non productive firms with workers going unpaid for months, while he shows off his cars,and several Chinese shops selling fake goods these are Zanupf economic solutions for Zimbabwe.

  3. Chimbwido Warvet says:

    This is not news at all. Those of you who follow the economic trends are fully aware of the world economic crisis we are confronted with at these most difficult economic times. Some economists of repute consider that we are already experiencing an economic recession while some predict the collapse of the world economy may take place this year. Without doubt, we are experiencing the most difficult times. In this part of the world, we are being asked to tighten our belts.

    The global economic meltdown or crisis has affected every country on mother earth. Industries and firms of repute are closing shop in the European Union and the United States, It is now common knowledge that industries and firms are relocating to the Far East where business opportunities are more lucrative, thus leaving their nationals without jobs. There is no incentive for investment in this part of the world as the return on capital is extremely low for meaningful investment. Firms and industries are relocating to the Far East where they find it cheaper to employ labour and enjoy lower taxation.
    The economic problems we are facing at the moment is not peculiar to Zimbabwe alone. It is across the globe and it is a fact.

    The banking crisis has made it difficult for the remaining firms and industries in the European Union and the United States to borrow money to expand and engage labour. Governments, firms and industries are retrenching staff everywhere.

    • wilbert says:

      Which part of the world are you referring to in “In this part of the world, we are being asked to tighten our belts”! If it is UK and you think Zimbabwe is doing better, then what are you doing here. Go to Zimbabwe.

      The wife told you in no uncertain terms to go F**** yourself last time you suggesting going back, did she?

      As for Zimbabwe’s economic melt-down; you aren’t seen nothing yet! Mugabe over reached himself, spending like crazy, to “win” the July 2013 elections. And instead of biting the bullet the tyrant is now pouring billions of dollars to beef up the Police, Army and CIO – even they have to eat and they do not eat guns or drink tea(r) gas!

      • Chimbwido Warvet says:

        Well, what can be said of an Uncle Tom who scoffs or treats with derision the misfortunes of his own people who played no part in the economic meltdown of the global economy but are victims of it. It just explains one thing that you are inhuman and insensitive to the plight of the Zimbabwean people you claim to represent. You are a big joke, man.

        • wilbert says:

          You can witter all you like about the financial sector’s problems behind the West’s 2008 economic down turn being the cause of Zimbabwe’s economic melt-down but people know better. The people of Zimbabwe know the cause of the country’s economic melt-down is years of gross mismanagement, rampant corruption and the
          all-out looting by Mugabe and his cronies.

          Tsvangirai is a blundering idiot; I have said it a thousand times and will say it a thousand times again. Still, there is no doubt that his presence in the GNU did bring some economic stability. The day he was kicked out of office following the rigged vote the country’s economy nose-dived and six months down the line it has gather alarming speed already.

          So Tsvangirai, even the blundering idiot Tsvangirai with very little real power in the GNU, was seen as a significant improvement to Mugabe. That goes to show just how far the economy had sunk and how irredeemably corrupt Mugabe is.

          Mugabe’s reckless spending to finance the vote rigging operation has tipped the economy over the edge. As long as Mugabe stays in office, it is pointless to talk of economic recovery; everyone is standing back fearful of the consequences of the almighty crash!

          Even your wife is staying away from Zimbabwe, hence her refusal to go back with you. If she married you – she cannot be one of the
          cleverest woman on the block that much is clear. She can see the coming economic crash because even a half-wit like her can see it!

          I will bet you than even your half-shilling wife does not believe your nonsense about the West’s 2008 financial crash is the cause of Zimbabwe’s economic melt-down. She is stupid but she cannot be that stupid.

        • wilbert says:

          You can witter all you like about the financial sector’s problems behind the West’s 2008 economic down turn being the cause of Zimbabwe’s economic melt-down but people know better. The people of Zimbabwe know the cause of the country’s economic melt-down is years of gross mismanagement, rampant corruption and the
          all-out looting by Mugabe and his cronies.

          Tsvangirai is a blundering idiot; I have said it a thousand times and will say it a thousand times again. Still, there is no doubt that his presence in the GNU did bring some economic stability. The day he was kicked out of office following the rigged vote the country’s economy nose-dived and six months down the line it has gather alarming speed already.

          So Tsvangirai, even the blundering idiot Tsvangirai with very little real power in the GNU, was seen as a significant improvement to Mugabe. That goes to show just how far the economy had sunk and how irredeemably corrupt Mugabe is.

          Mugabe’s reckless spending to finance the vote rigging operation has tipped the economy over the edge. As long as Mugabe stays in office, it is pointless to talk of economic recovery; everyone is standing back fearful of the consequences of the almighty crash!

          Even your wife is staying away from Zimbabwe, hence her refusal to go back with you. If she married you – she cannot be one of the
          cleverest woman on the block that much is clear. She can see the coming economic crash because even a half-wit like her can see it!

          I will bet you than even your half-shilling wife does not believe your nonsense about the West’s 2008 financial crash is the cause of Zimbabwe’s economic melt-down. She is stupid but she cannot be that stupid.

          • Chimbwido Warvet says:

            Of course, being an idiot who is not well read can play with the minds of idiots like you. The entire world is full aware of the current economic climate that was caused by the banking crisis. As an Uncle Tom and at best an acclaimed enthusiast of the West, can I be surprised by this attitude you have displayed over the years. You are paid to demonise the Mugabe government, that much has been known over the years. The good thing is that the world is watching and is fully aware of current situation. Gone are the days when the world was fooled by the Wall Street bankers and their associates as people are now highly educated, well informed and are able to find the truth for themselves.

          • Chimbwido Warvet says:

            Of course, being an idiot who is not well read can play with the minds of idiots like you. The entire world is full aware of the current economic climate that was caused by the banking crisis. As an Uncle Tom and at best an acclaimed enthusiast of the West, can I be surprised by this attitude you have displayed over the years. You are paid to demonise the Mugabe government, that much has been known over the years. The good thing is that the world is watching and is fully aware of current situation. Gone are the days when the world was fooled by the Wall Street bankers and their associates as people are now highly educated, well informed and are able to find the truth for themselves.

          • wilbert says:

            In Iraq Chemical Ali continued to deny Saddam had been roundly beaten and was on the run even when the West was outside the gates of Baghdad! Zimbabwe’s economy is in serious trouble and you still pretend not to see it!

          • Chimbwido Warvet says:

            I have not denied that the Zimbabwean people have been sacrificed by the IMF, Wall Street bankers and their so-called multinational corporations that have sqeezed and robbed the entire world. It can no longer be denied that there are evil forces that have contributed to the misfortunes of this great nation, Zimbabwe. Only a united people can pull through these economic problems. I am aware that you have a job you are handsomely paid to do by your handlers and as such the unity of Zimbabweans militates against your terms of reference.

          • wilbert says:

            Mugabe rigged the elections and now even you will soon admit that he cannot rig economic success! Your denying the economic melt-down is not going to stop it!

      • Chimbwido Warvet says:

        Well, what can be said of an Uncle Tom who scoffs or treats with derision the misfortunes of his own people who played no part in the economic meltdown of the global economy but are victims of it. It just explains one thing that you are inhuman and insensitive to the plight of the Zimbabwean people you claim to represent. You are a big joke, man.

    • wilbert says:

      Which part of the world are you referring to in “In this part of the world, we are being asked to tighten our belts”! If it is UK and you think Zimbabwe is doing better, then what are you doing here. Go to Zimbabwe.

      The wife told you in no uncertain terms to go F**** yourself last time you suggesting going back, did she?

      As for Zimbabwe’s economic melt-down; you aren’t seen nothing yet! Mugabe over reached himself, spending like crazy, to “win” the July 2013 elections. And instead of biting the bullet the tyrant is now pouring billions of dollars to beef up the Police, Army and CIO – even they have to eat and they do not eat guns or drink tea(r) gas!

    • The Black Aristocrat says:

      Zimbabwe’s bankrupt economy is due to the fact that Mugabe is the head of a criminal enterprise no different to the Italian Mafia or Latin American drug cartels, that is willing to use any means necessary to retain it’s stranglehold on it’s criminal activities.

      Most Zimbabweans consider,
      Patrick Chinamasa, Obert Mpofu, Emmerson Mnangagwa, Paradzai Zimondi, Perence Shiri, Constantine Chiwenga, Johannes Tomana, Happyton Bonyongwe, AugustineChihuri and Phillip Sibanda, to have committed the worst crimes and to have enriched themselves the most at the expense of the Zimbabwean population.

      This is a criminal mob who has robbed Zimbabweans of their freedom and rights. They have also bankrupted the country, leaving a legacy of debt that will take generations to repay, while amassing large personal fortunes, and living the high life with personal servants, luxurious mansions and private jets.

      Trust them at your peril !

      • Chimbwido Warvet says:

        These guys you talk about did not cause the banking crisis but your cousins at Wall Street. You can not apportion blame where it truly lies simply because you are a fool and idiot who does not know his/her surroundings. Remove that foolish block in your eyes that is blinding you to see what is a glaring reality. You can not continue to defend the crooks and thieves at Wall Street that have contributed to the global economic crisis while the poor working class is being coerced to bailout these sharks by politicians in your country. The world is watching and is fully aware of the daylight robbery by the Wall Street bankers who incidentally own and control the multinational corporations that consider the working class as their cash cow. A revolution to the scale of the French Revolution of 1789 is not far fetched but a reality. It is just a matter of time because both the middle class whose incomes have fallen in real terms than they were thirty years ago and the down trodden working class are bitter at the prospect of bailing out the parasites at Wall Street.

      • Chimbwido Warvet says:

        These guys you talk about did not cause the banking crisis but your cousins at Wall Street. You can not apportion blame where it truly lies simply because you are a fool and idiot who does not know his/her surroundings. Remove that foolish block in your eyes that is blinding you to see what is a glaring reality. You can not continue to defend the crooks and thieves at Wall Street that have contributed to the global economic crisis while the poor working class is being coerced to bailout these sharks by politicians in your country. The world is watching and is fully aware of the daylight robbery by the Wall Street bankers who incidentally own and control the multinational corporations that consider the working class as their cash cow. A revolution to the scale of the French Revolution of 1789 is not far fetched but a reality. It is just a matter of time because both the middle class whose incomes have fallen in real terms than they were thirty years ago and the down trodden working class are bitter at the prospect of bailing out the parasites at Wall Street.

        • The BLACK ARISTOCRAT says:

          As you know very well, companies are shutting down or leaving the Zimbabwe in droves because they are not prepared to have their businesses destroyed by the shameless thieves masquerading as Zanu PF politicians, who have bankrupted the country, while stealing most of the Nations natural resource wealth !

          Your amateur attempts to suggest otherwise are futile, and a complete waste of your time writing them!

          • Chimbwido Warvet says:

            You are not just talking to a well informed person but a Warvet full of wisdom, educated and experienced too. What the Warvet says is factual, well researched and therefore truthful. The Warvet reads a lot and does not just write any piece without carrying out his own research. He is therefore very different from people like you who just argue for the sake of it.

            And all that has been said by the Warvet is in the public domain. It is no longer a secret but information that is known across the globe. My young daughter in school knows it because the effects of the economic recession is being felt by the old and young people everywhere.

          • Chimbwido Warvet says:

            You are not just talking to a well informed person but a Warvet full of wisdom, educated and experienced too. What the Warvet says is factual, well researched and therefore truthful. The Warvet reads a lot and does not just write any piece without carrying out his own research. He is therefore very different from people like you who just argue for the sake of it.

            And all that has been said by the Warvet is in the public domain. It is no longer a secret but information that is known across the globe. My young daughter in school knows it because the effects of the economic recession is being felt by the old and young people everywhere.

        • The BLACK ARISTOCRAT says:

          As you know very well, companies are shutting down or leaving the Zimbabwe in droves because they are not prepared to have their businesses destroyed by the shameless thieves masquerading as Zanu PF politicians, who have bankrupted the country, while stealing most of the Nations natural resource wealth !

          Your amateur attempts to suggest otherwise are futile, and a complete waste of your time writing them!

  4. Chimbwido Warvet says:

    This is not news at all. Those of you who follow the economic trends are fully aware of the world economic crisis we are confronted with at these most difficult economic times. Some economists of repute consider that we are already experiencing an economic recession while some predict the collapse of the world economy may take place this year. Without doubt, we are experiencing the most difficult times. In this part of the world, we are being asked to tighten our belts.

    The global economic meltdown or crisis has affected every country on mother earth. Industries and firms of repute are closing shop in the European Union and the United States, It is now common knowledge that industries and firms are relocating to the Far East where business opportunities are more lucrative, thus leaving their nationals without jobs. There is no incentive for investment in this part of the world as the return on capital is extremely low for meaningful investment. Firms and industries are relocating to the Far East where they find it cheaper to employ labour and enjoy lower taxation.
    The economic problems we are facing at the moment is not peculiar to Zimbabwe alone. It is across the globe and it is a fact.

    The banking crisis has made it difficult for the remaining firms and industries in the European Union and the United States to borrow money to expand and engage labour. Governments, firms and industries are retrenching staff everywhere.

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