via Jobs crisis: University graduates turn to vending – DailyNews Live by John Kachembere 5 NOVEMBER 2013
Zimbabwe’s unemployment levels are escalating at astronomical rates despite promises from the Zanu PF-led government that at least 2,2 million jobs would be created.
At least 30 000 graduates churned out from universities and tertiary colleges every year are resorting to desperate measures, with some forced into menial jobs including vending.
President Robert Mugabe caps thousands of university students every year but most of them cannot get employment as the economic situation worsens every day.
Although in its manifesto, Zanu PF promised to create 2,265 million jobs in the next five years, the situation on the ground paints a gloomy picture, with government at the forefront of retrenchments.
For instance, the State-run National Railways of Zimbabwe has sought permission to retrench 6 000 workers, or 86 percent of its workforce to slash running costs.
“NRZ used to employ more than 25 000 people in Bulawayo and that employment sustained the activities of Bulawayo, but that number has gone down to 7000,” Obert Mpofu, the Transport and Communication minister told a business seminar last week.
“I received a request from the board to retrench another 6000 to leave 1000 and I said that was not sustainable.”
This comes as cash-strapped State coal miner Hwange Colliery has put 1 000 workers on unpaid leave. The company is saddled with a $14 million six-month salary backlog and a debt of $160 million.
The country’s unemployment rate tops 85 percent and additional people are becoming jobless every day as more firms shut down citing harsh economic conditions.
A recent survey by the National Social Security Authority (Nssa) said 711 companies in Harare went bust in the period July 2011 to July 2013, rendering 8 336 individuals jobless.
This is an addition to more than 90 companies that have closed shop in Bulawayo since 2010, with more than 20 000 workers thrown into the streets.
The Zimbabwe Stock Exchange recently warned that only about 10 of the 74 companies listed on the local bourse were operating at full capacity, giving credence to the fact that nine companies went into liquidation between September and October this year while 12 were placed under judicial management in the same period.
Leading Harare-based economist John Robertson said life would continue to be hard for the ordinary men who have been thrown in at the deep-end due to intensifying economic hardships with no end in sight to unemployment.
“Jobs are created though investments in the economy and people invest in a country because they have confidence in the future of that particular area,” Robertson told the Daily News.
“However, recent policy decisions are forcing foreign investors to take their monies elsewhere.”
Robertson said when government forcibly takes away land from huge conglomerates such as Zimplats – which employs over 5 000 people – no serious investor would be willing to come into Zimbabwe.
Government’s indigenisation policy – demanding 51 percent shareholding in all foreign-owned firms worth at least $500 000 – has dampened foreign investor confidence in the country.
“How can we expect to create more jobs when we are pushing companies that have the capacity to create employment away? The situation is getting worse and soon government will not have taxes to talk about as most people now no longer have any incomes,” he said.
Major companies that have retrenched staff include platinum miners Zimplats and Unki, Bindura Nickel Mine, Spar supermarkets, Dairibord, Cairns, Olivine Industries and PG Industries while in Bulawayo Hunyani Holdings, National Blankets and Merlin are stuttering.
All this coming at a time when Zimbabwe’s cost of living for an urban family of six increased by 0,8 percent to $567,03 last month pushed up mainly by the rising cost of food.
Latest figures from the Consumer Council of Zimbabwe (CCZ) have shown that the cost of living has risen significantly from around $330 in March 2009 – when the country adopted a multi-currency system – highlighting that a majority of Zimbabweans could barely sustain themselves due to high unemployment levels.
Zechariah Mushawatu, Zimbabwe National Student Union (Zinasu) national spokesperson, said unless the new government takes austerity measures to resolve the economic crisis, the country’s unemployment rate will continue to escalate.
“More university graduates will continue to pervade the streets in desperate pursuit for better living conditions,” said Mushawatu.
He noted that students have already lost hope as the number of unemployed youths continues to rise unabated, adding there was no hope that things will change for the better in the next five years.
Zimbabwe’s once-dynamic economy shrunk by more than 50 percent between 2004 and 2009, leaving more than half of its employable urban population relying on remittances from friends and family overseas.
An estimated three million Zimbabweans fled the country’s economic and political instability to support their families from overseas and neighbouring countries.
More than half of Zimbabweans remain in the Diaspora as job prospects remain limited in the country.
COMMENTS
This makes for very sad reading indeed!and not a single comment from anyone in government.Obviously no one has a clue what to do or even where to start.
Zimbabwean university graduates need to be serious ,l am very very disappointment with this appearance of unconcerned of creativity by this graduates . Reaching a university level means you are free from poverty and you now have a role to ply in the national community .their must go back and revise , l thing so ,to waken up their minds
Students worldwide who face such tragic humiliation from uneducated criminals in zanu govt resolve their plight by manning barricades in street protests. Zrp zna are really cowards with no stomach to defend their rich masters. Believe me
Mugabe, you rigged the election. Can you rigg the economy and create employment, bring medicine to our hospitals, infrastructure development to enable economic growth and improve the quality of life of Zimbabweans. Is your daughter Bona the virgin, going to join the jobless graduates
Its sad that after such precious time of education one would be seen begging for braed and vending is polite way of begging. My advise to the fellow brothers is that you need to be brave, bring up yourselves into small partnerships, approach international sponsors and try bulk purchases and selling to big corporates, with your minds you will do better. Secondly take it politically, make the places and communities know the current state of affairs and even the councillors so that next election even for smaller officer people know that ZANU PF is useless, vote for another. Regime change is the only option forward
i think its time to go back to the bush comrades…..
Welcome to the bigger campus! Our situation is because of the political status quo. From what you learnt in Varsities don’ t you think change is vital.
Why not try SA? At least you can work in restuarants, drive trucks, operate tills, open spaza shops etc.
Interesting. Who are the Chinese companies employing.?
Zvakaoma, This is the Zimbabwe that we know sinse 1980. We are a hopless nation.
Unless our country has a unique resource that no one else has, the truth of the matter is we have to compete for investment, even with our neighbours, because everyone wants it, from America, to China, to Zambia.Even the British were forced to allow the sale of marquee companies like Land Rover, and British Steel, to foreign investors, from India, who pumped in money, and created jobs.In other African countries, for foreign investors, there are no special considerations given for the fact that they are foreigners and multinational. The world has changed; foreign investors are no longer just companies from western countries. Most fierce competitors come from countries like China, India, Mexico, the Middle East, Nigeria, as well as South Africa.Africa needed “quality” investors as well as expertise and capital injections to extract the resources that it boosts of having.And if we make unreasonable demands, the quality investors do not quarrel with you, they just leave quietly, and you will be left to the mercy of chancers, or bottom feeders, who promise you the moon, and deliver nothing, and also rip you off.
With half of Africa’s population below 25 years of age the continent needed to create 500 million jobs in the next decade.In opening the door to foreign investment,I do not care what colour the cat is, as long as it catches mice.Blood is red, the sky is blue and U.S dollars are green for everyone.The ‘mice’ are ‘decent jobs’ for the youth. I shudder to think what China, would have been like, if he had not opened up the country to massive investment, and creation of jobs.Gardens are not made by sitting in the shade.Years of political and economic crisis have thrown many people in Zimbabwe into abject poverty. Today eight out of ten people in the country are unemployed. With this number only set to rise, people have few options.First and foremost Zimbabweans are the friendliest people you can ever find anywhere.Zimbabwe has the largest educated population in Africa.Anyone who wants to do business in Zimbabwe no matter how sophisticated, is assured of getting the requisite manpower.With all the above riches, it surprises me why Zimbabweans are not walking tall and working hard to safeguard their country’s riches.All the talk about ‘Third World’ ‘developing’ ‘poor’ and so on are what in South Africa they call ‘Tsotsi Taal’ – the language of the tsotsi – the criminal.All what is required is for us to join hands with the right investors and not ZANU-PF looters and together exploit the riches of our country and in the process uplift the living standards of our people.No more xenophobia, hostility, racism, isolation and selfishness.God helps thοse that help themselves.
If Africa is to overcome the problem of poverty and joblessness the continent needed to move at 10 times the speed with which it is moving at the moment.Rwandan leader Paul Kagame and Nigeria’s Goodluck Jonathan as a new crop of African leaders who understand what it meant to create decent jobs and economic transformation to eradicate the poverty which is stalking Africa.
No Hwese we are a blessed nation. Our humbleness is being duly exploited by thugs but the time is coming when all and not the few will benefit. Our struggle to free our people from a new bondage is continuing and our people are protected by Gods Armies.
The world has changed; foreign investors are no longer just companies from western countries. Most fierce competitors come from countries like China, India, Mexico, the Middle East, Nigeria, as well as South Africa.Africa needed “quality” investors as well as expertise and capital injections to extract the resources that it boosts of having.And if we make unreasonable demands, the quality investors do not quarrel with you, they just leave quietly, and you will be left to the mercy of chancers, or bottom feeders, who promise you the moon, and deliver nothing, and also rip you off.THIS IS EXACTLY OUR CURRENT SITUATION OF OUR BLESSED NATION. ONLY THE ZANU-PF PEOPLE ENJOY THEIR LIVES. WHAT ABOUT US ?
I do not care what colour the cat is, as long as it catches mice.Blood is red, the sky is blue and U.S dollars are green for everyone.The ‘mice’ are ‘decent jobs’ and some food on our tables.
We definitely need a new leader with vision , who is there for our people. We are lagging behind all other African Nations because of ignorance and selfishness from Mugabe . One would expect those with multiple educational degrees to perform better morally and socially . What we have seen in the past few years is the opposite.Are we to blame for creating a monster in our back yards?