8,000 Zim Workers Left Jobless as 75 Companies Shutdown

8,000 Zim Workers Left Jobless as 75 Companies Shutdown

via 8,000 Zim Workers Left Jobless as 75 Companies Shutdown by Gibbs Dube 08.03.2014 VOAZimbabwe

The Zimbabwe Congress of Trade Unions (ZCTU) says about 75 companies failed to open after the festive season, leaving at least 8,000 workers jobless.

ZCTU president George Nkiwane says preliminary survey findings indicate that the number of shut down companies and employees who lost their jobs is expected to go up.

“Figures submitted by our affiliates are shocking as we initially thought that most companies shutting down are in Bulawayo. Our results so far show that it is nationwide. There are companies closing down in Harare, Gweru and other parts of the country. The situation looks extremely bleak,” says Nkiwane.

He says the situation will worsen as long as there are no tangible policy changes encouraging foreign direct investment. “I don’t see any change in policies in the near future as the current government is spearheading an indigenization program which compels foreign-owned companies to transfer 51 percent equity stakes to local people. This is not workable in any country.”

Zimbabwe introduced a black economic empowerment program in 2011, which has been widely criticized by foreign investors who fear losing their firms to local people who do not have funds to buy the targeted majority shares.

The Zanu PF government insists that the program is designed to ensure that the economy, which it projects will grow by 6.1 percent this year, is controlled by locals.

Independent economists say the economy is likely to grow by almost 2.3 percent. The country’s poverty datum line is currently pegged at $540 per month for an urban family of six.

According to the Zimbabwe National Statistics Agency, the nation’s unemployment rate is 10.7 percent. But independent economic commentators say the unemployment rate is between 71 and 85 percent.

 

COMMENTS

WORDPRESS: 12
  • comment-avatar
    zvichanaka 4 years

    Surprise surprise!!

  • comment-avatar
    Tjingababili 4 years

    WHO CARES! LET THEM EAT CAKE AND CAVIAR!

  • comment-avatar
    John Thomas 4 years

    Lets hear the unions admit their part in what has happened.

  • comment-avatar
    Sekuru Mapenga 4 years

    There is no money in Zimbabwe because the chefs are buying themselves fancy cars and paying themselves enormous salaries and pocketing the diamonds and gold.
    Since there is no money, people can not buy the goods and services that companies offer, and so the companies are forced to close down.
    You can call this Mugabinomics.

    • comment-avatar
      Parangeta 4 years

      Don’t you get it, the word “Chef” is a cook, whereas the word “Chief”, is what you mean.

      Big difference, although the your “Chef’s” ARE cooking the books!

    • comment-avatar
      Kusvikazvanaka 4 years

      You are right. The only people with money are the corrupt politician.

  • comment-avatar
    Nkiwane (M'kiwa) 4 years

    You can’t rig the economy!

  • comment-avatar

    Zimbabweans don’t need companies by the way, but the companies need to maintain their activity in Zimbabwe, so let them leave forever; we have our land full of food to eat.

    • comment-avatar
      Sekuru Mapenga 4 years

      I suppose that Mr UMAARI was not one of the 8000 workers that lost his job?

      • comment-avatar
        Umwrong 4 years

        Mr. Mapenga, I believe that was satire, haha.

    • comment-avatar
      Parangeta 4 years

      You are a fool of the first order, you should be working in ZANU-PF or Assistant Thief to the Mugarbage the Robber!

  • comment-avatar
    Tuwu 4 years

    Umari u are a thief