Zimbabwe Economy 2014

Economic growth will contract in 2014, given persistent company closures. Real value will be generated in the susbsistence and dollar funded informal sector. Use of the US$ will ensure at most 2% real economic growth, inflation of 5% and GDP per head of US$200.00.

A return of the Zimbabwe dollar will further drive out capital and reintroduce hyperinflationary pressures, as the institutional dynamics of currency stability have not been reinforced in Zimbabwe's economy. A lack of confidence in Zim dollar still persists encouraged by an absent credible macro-economic plan.

Currency and funding shortages will persist, they is no strategy in place to deal with persisting liquidity challenges. Businesses need working capital, which given the scarcity of commercial paper and high interest rates is hard to come by: companies will continue to close, in 2014. Water and electricity shortages will guarantee difficult trading and living conditions for the nation's citizens. The State's Look East policy is not generating the infrastructural investment required to bring about medium term growth.

Competitive Disadvantages

To say business is struggling is  understatement. Firms are shutting down and industry, like the dinosaur, is virtually extinct. It started with disappearing factories, that was late 70's; followed by heavy industry taking a bashing in the 80's, now even retailers are having the fates conspiring against them.

Power cuts, water shortages, exorbitant interest and a lack of funding have been haunting industry since the 1990's. No MBA, and or Msc, in Disaster Recovery can prepare those courageous enough to start formal enterprise in Zimbabwe. The executioner wields the noose of  bureaucracy, legislation and corruption for those with the intelligence to circumvent shortages of resourcing.

Zimbabweans are not moaners, but things aren't right. We still have those working for struggling organizations months on end without pay. We salute and respect all these hard working Zimbabweans. Also, we salute those traders and enterprises, in Zimbabwe, fighting against all odds. Lest I forget, lets salute Gideon Gono, he tried and tried-with dignity he resigned; if only others could let go of power and give  Zimbabwe a chance.