Zimbabwe faces imminent economic collapse

via Zimbabwe faces imminent economic collapse | SW Radio Africa by Mthulisi Mathuthu on Tuesday, April 15, 2014

As Zimbabwe turns 34 this week indicators are that the country is facing imminent collapse due to a combination of economic mismanagement and bad governance, experts and opinion leaders have warned.

Reports this week said 176 companies were deregistered while 634 more are expected to be struck off the register in the next three months. According to a notice from the Registrar of Companies, the majority of the affected entities are in the manufacturing and investment sectors.

In another development, a key survey said about 70 percent of Zimbabwe’s export companies have closed in the last decade. Mike Nyamazana, a researcher in the Zim Trade survey, reportedly said the few remaining exporting companies would only be able to increase their levels of exports if the government comes up with export supporting polices.

Earlier this year the ZCTU reported that about 9,500 jobs were lost last year while 75 companies were closed. In 2013 the National Social Security Authority said over 700 companies had closed in Harare since 2011.

It also emerged that the Grain Marketing Board (GMB) recorded a 59 percent decline in maize intake during the 2013/14 marketing season. The parastatal said it received 47,000 tonnes of maize against 131,000 tonnes during the previous season, ZBC reported Sunday. Last month the GMB said it was owed $2 million by government as the parastatal was being forced to finance the state’s social programmes, such as grain provision to poor families.

Economist and MDC-T legislator Eddie Cross said the situation in the country points to imminent economic collapse: ‘I have no doubt that that we are facing imminent crisis in economic terms. In fact, we are in the middle of the crisis now. And it is extremely severe. Exports have declined, we are short of cash, no investment is coming in and nobody is able to borrow and a number of banks are close to liquidation.’

Cross said since the July 31st election last year there has been a ‘collapse of confidence in the private sector. He added: ‘The business community has taken a large amount of capital out of the system. About $1.5 billion left the stock market and about $1 billion more left the banking sector and the capital flight has continued up to now.’

According to Cross this has led to a sharp reduction in economic activity, something which has in turn led to a fall in revenue collection. Cross said ZANU PF should ‘accept that it needs help’ and re-engage with both the MDC-T and the outside world to stop the total collapse of the economy.

MDC-T leader Morgan Tsvangirai recently said: ‘Mugabe cannot provide legitimacy to the country.’ He added: ‘Mugabe will look for me you shall see.’

The party’s national organizing secretary, Nelson Chamisa, reportedly said the performance of the ZANU PF government is so bad that by comparison the colonial regime was ‘better’ in providing basic services.

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42 comments on “Zimbabwe faces imminent economic collapse
  1. colo says:

    Shame mugabe from hero to zero

  2. apolitical says:

    If Eddie Cross was able to count you may have the beginnings of a anti government propaganda story!
    Read slowly and check the years and it will be seen categorically the years are of the inclusive government and basically that was when the downward financial spiral started so it we ignore their suggestion we have a hope of reversing their mistakes and incompetence.

    • Jrr56 says:

      Strange that when there was an inclusive government the spiral down reversed and since the rigged election the economy has collapsed. When there was an inclusive government it was Biti who warned of Zanu excesses!

      • mandy says:

        Zimbabwe is burning and is on a precipice. The cause is clear- confidence in the country and the economy has taken a plunge since the botched elections of 2013. Strange as it may seem the results did not reflect what the electorate anticipated. The nation had deposited their hope in a Tsvangirai victory that is in spite of his many so-called short comings. It was Chematama that the people knew and even up to now it is only Tsvangirai that this country can have confidence in. It is only Tsvangirai who can stabilise the situation again. Stability has many aspects to it, the most important of which is in the political arena. The economics only follow. Zimbabwe needs to stabilise the political situation first and foremost in order to get back to sense of economic sanity.

        There is no doubting that Tendai Biti played a role but if the truth be told his role was marginal. In fact it was the political gamesmanship of Tendai Biti, Elton Mangoma, Patrick Chinamasa, Nicholas Goche, Welshman Ncube and Priscilla Misihairabwi at the political negotiating table that failed to seal a deal that would see a sustainable political solution for Zimbabwe. In short the six connived at the negotiating table to deny Zimbabweans a lasting solution in the hope of positioning themselves in a succession game. Lindiwe Zulu, the South African assistant to Zuma saw this all the time she was facilitating negotiations. There was no desire on the part of the six to eek out that solution or perhaps were they clueless. I want to believe that the nation was fed lies about the influence of the military or indeed any security institutions in these shenanigans. Instead the security organs would be brought in puppet fashion to complicate issues by these sides.

        Spurred by ego and hunger for power they planned to return to a hero’s welcome at their respective bases; Chinamasa and Goche to shake shake house while Tendai Biti and Elton Mangoma to Harvest House, not forgetting Welshman and Priscilla to goodness knows where- after having completed nothing on note for the nation but a positioning for themselves in the political succession battle. Later developments in Ncube’s party not only vindicated the presence of these shenanigans but also exposed the six for what they were. But then the country was on fire with the meltdown simply out of control. Let alone the dangers that a failure of institutions was imminently staring in the face. It took Robert Mugabe and Tsvangirai another effort to get some temporal respite for the nation. Goodness knows what could have happened if that respite had not been secured at the moment it did. We could be talking a different story today of a failed state like Somalia or DRC. But all this was because of the dangerous power games of the six people mentioned above.

        If Chinamasa was a real hero then where are his antics today now that he is the finance minister. He is no doubt a zero in place of a hero. Where is that welshman? The same awaits Tendai Biti and his dangerous political games. Let the nation be warned.

        • Ruramai says:

          Mandy, you are fabricating facts. In fact, the negotiating team were against the deal and Tsvangirai said he was prepared to sign it because, in his words, “the people had suffered enough”. Tendai Biti almost resigned from the party but was persuaded by Tsvangirai and his inner circle to cooperate with Tsvangirai. Go and ask Tsvangirai or rather google the issue.

          It is ok to hold Tsvangirai as a hero because it is your right. But to then misrepresent facts in an attempt to cast those you dislike in a negative light is dishounorable. Why did Tsvangirai append his signature to the document? Are you saying, on the one hand, that he is the only one who can bring stability to the country while on the other hand you are saying he is so dumb that he signed an agreement that he didnt agree with? What was his responsibility as party leader? How then would he run a whole country if he could easily be hoodwinked in the manner that you have described? What was his input?

          It was quite nauseating to watch Tsvangirai eulogise Makarau, a known Zanu p.f. loyalist, following her appointment as chair of the electoral commission. I hope you are also not gone to tell us that he was forced to go into an election without having seen the voters roll – something as basic as that. It just seems so unbelievably lame for someone who is aspiring to run a country.

          In fact, Mandy, if we follow your logic, we could say Mugabe is not responsible for the mess the country is in; his ministers are – just as you blame those under Tsvangirai for the faulty GNU agreement. Who then does the buck stop with, Mandy dear? To his credit, Tsvangirai has never blamed the negotiators. Maybe he does realise it would be extremely dumb to do so.

    • NBS says:

      I suppose Apol you have forgotten the price blitz, the diving Zim $, the empty shelves, the derelict hospitals and then the famous 2008: all pre GNU. Where have you been anyway?

    • gava says:

      the downward spiral could have started during the GNU but wat is the present gvt doing to reverse that

    • Zvichanaka says:

      What a fool!

    • mwana wevhu says:

      GNU brought economic and social stability and started recovery from the ZANU authored collapse.GNU out- ZANU in economic & social collapse.Eddie Cross is telling it like it is!

    • Mena Bona says:

      You talk kuk.

    • Parangeta says:

      You’re a complete and utter IDIOT!

      It is a PROVEN fact that ALL indices
      were positive after the ‘Inclusive’ Govt.
      was formed.
      (It was all a lie, because M’Garbage
      hindered EVERY move by the MDC, with
      his Thieving Partner, Mbeki).

      You, ‘most ZPF political’, boot-licker and azz-wiper,
      need to check your fact first!

    • Ruramai says:

      Apolitical, so what if it started during the inclusive government? Mugabe was still the head of state and government and the commander in chief of the Zimbabwe defence forces. Is your memory that short?

  3. John Thomas says:

    The ZANU types were too busy rigging the election to see this coming. Anybody with a brain could. How many times do the same stupid lessons have to be learned?

  4. Jono Austin says:

    Zanu must approach their mates in the East (where the sun rises) and some in the West for help-namely China, North Korea, Iran, Cuba, Venezuela, maybe Malaysia. The West must ‘go hang’ and must ‘keep their filthy imperialist money’ We have been told this for decades-so be it, and we’ll see how beneficial this path is.

  5. Mlimo says:

    It is collapsing not started wait till funds stop to pay police and army

  6. Martin says:

    Once the economy collapses maybe then people will be motivated to rise up against the regime.

  7. Joe says:

    The quicker the better. If MDC did not climb into bed with zanoids ( years ago the economy would have collapsed and zanoids would be history

  8. Zimbabwean says:

    Grace is to blame, that women is pure evil

  9. Rwendo says:

    Its not about validating you tarnished ego Morgan.

    In part, its about finding a way to disconnect the army and  police from the ruling clique, containing the beast. It looks like unpaid salaries might help that process along. So running around offering your personal cup of water to help put out the fire is not really helpful – on several levels.

  10. DW says:

    Apolitical your name is not Gumbo by any chance and didn’t your Mum ever tell you “if you don’t have anything sensible to say then don’t say it?”

  11. Lindy Lou says:

    I hope that Apolitical is JM.Clever Guy the Professor.I like him.Met him and he is one shrewd dude.Jonathan I want you to save our beautiful country.Zimbabwe is collapsing Moyo,Jonathan that is.I love my country but the thieving ,pillaging and corruption is unbelievable.Please ,please DO something.Rise and be counted.Ashamed of you my brothers and sisters accepting the evil getting so rich and you live in abject poverty.

  12. Jenandebvu says:

    Apo…………the GNU saved Zimbabwe boy. The only mistake is that it propelled mugabe. Otherwise the collapse should hv occured n by now we should have started anew. What a mugabe legacy to leave “Mugabe, juta and failed statesmen”

  13. Senzachena says:

    Apolitical, I have not seen any comments since the deafening silence when none of of the rest of Africa listened to your bosses whining because his lovely wife could not go and spend tax payers money in Europe. Welcome back. I see that once again you are talking rubbish and every man in the country knows it. Why dont you shut up and go back to your stolen farm, if you try hard you might be able to grow some vegetables, you are going to need them when the country collapses thanks to your precious Mugabe and his bunch of thieves. Zanu Trash

    • Parangeta says:

      Well said, this idiot ZPF-Political, was gob-slapped
      until he got over dis-Grace’s embarrassment and
      M’Garbage’s snub by the Powers that Be, in Europe!

      M’Garbage is done for!

  14. RR says:

    That the economy is in free fall is clear. The question is, how bad will it get and how much will it hurt. The inclusive govt or GNU simply served to provide a thin veneer of economic support around the dreadful political and economic situation that prevailed at end of 2008. The MDC failed to make substantive changes and address ZANU excesses whilst they had the chance. The MDC failed at the last election because they had gotten fat whilst in the GNU and took their eye right off the ball. Zimbabwe is paying the price for their failure and for sitting back and watching ZANU steal the 2013 election.

  15. I actually feel embarrassed for the fellow. Every time he opens his mouth a whole lot of nonsensical drivel is expelled. Hates reporters. Blabs on about the failures of the inclusive Government. If you were to ask me to guess his identity I would think he is Joseph Chinotimba being helped by some other moron.

  16. munzwa says:

    All is not lost, Morgan and Nelson to the rescue….a few more carriages on the gravy train…Let the people do something!!!!!

  17. Joe Black says:

    Well said Dr Doolittle!

  18. Mukanya says:

    Yakadonha ikafa kare

  19. Buchman-Turner-Overdrive says:

    Put your gukurahundi tails between your legs and stop this Chinese look east nonsense. Open up the economy to western investments. Get rid of the indeginisation bull. The country will be back on its feet in less than 12 months – mark my word!!

  20. Senzachena says:

    Well said Doc, my only comment “is Joseph CHINOTIMBA capable of writing”? No doubt that is why he will have to be assisted by another moron! We really live in Disneyworld and are surrounded by plenty of clowns!

  21. Ngoto Zimbwa says:

    When people like this Political fellah open their mouths, the enormity of the task before us in Zim becomes apparent.

    Doesn’t help to have some know-it-alls shoving their ghukurahundist bug-bear in, though.

    We got to dig deep and find some resolve somewhere and throw out these people in zanu who have brought shame and humiliation on our beautiful country.

  22. UMAARI says:

    Unbelievable statement, how can a country blessed with everything be economic collapse unless the article prepared by some African oppositions and EU followers, no way!!

  23. As I said UMAARI you are a very sick man. Smell what is coming out of your mouth..utoovee lomsuzo.

    • Ruramai says:

      Jack,Umaari is not a Zimbabwean. Just some idiot spewing rubbish from who knows where trying to make a contribution over issues he knows nothing about.

  24. DawnofNewAge says:

    Remember that overflowing ‘basket’??? It is now empty and the bottom has been ‘corrupted’ away!!!

  25. Brian says:

    African leaders have always been known for their abuse of power and corruption. In this they are no different to their Western counterparts. They have learned well! The pity is the wealth gap. It is so extreme between a man like Mugarbarge and a woman with a roadside stall. In the EU and US that gap is ever widening. “The working poor” is the term to describe it. Zanu-PF freed then plundered Zim. Why are people surprised? ANC are doing the same thing in SA. Ethics? What are they, ask our African leaders. How much do they cost? Can I make money? SADC and AU are universally laughed at because they both lack credibility and ethics.

  26. UMAARI says:

    I don’t mind whatever you comment over Umaari, but you will remember me, ever after!

  27. shadrack tshililo Mulungufhala says:

    The fact still remains. Zanu failed the Zimbabwean people. We can not blame MDC for their failure.MDC came into the picture becouse of problems that were already exsisting.MDC like any other party was trying to implement its persived politacal models, whether it was going to work or not,that was yet to be seen. for Zanu PF nothing had worked for them and now its even worse.Honesly if we all working the citizen, why are we not allowing for change.

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