Zimbabwe records 75 company closures, over 9 000 job losses

via Zimbabwe records 75 company closures, over 9 000 job losses February 21, 2014  By Victoria Mtomba NewsDay

A RECORD 9 617 job losses and 75 company closures were recorded last year amid fears that the trend could escalate this year as the economy continues to shrink, the Zimbabwe Congress of Trade Unions (ZCTU) has said.

ZCTU secretary-general Japhet Moyo said a recent survey by the labour body had shown that the most affected workers were in the clothing, engineering, furniture, metal, industry, tobacco, textile, chemicals, food, agriculture, catering, pulp and paper industries.

“A survey by the ZCTU among its affiliates noted that from reports of 15 out of 30 unions affiliated to the ZCTU, 75 companies closed shop throwing 9 617 workers out of employment,” Moyo said in a statement.

He said this year had already recorded 890 job losses in the General Agriculture and Plantation Workers Union of Zimbabwe following loss of activity at eight large commercial farms.

In an interview, ZCTU president George Nkiwane said the figures could increase as the labour body had not yet received statistics from its other affiliate members.

Nkiwane attributed the matter to pursuit of policy that scared away potential investors.

“We urge the government to have the interest of the people at heart other than the interest of individuals. As a country, we do not have policy consistency and some of the policies scare away investors. The list does not reflect the real situation as we are yet to receive some figures from some of our affiliates in the country,” he said.

Economist Godfrey Kanyenze described the figures as a true reflection of what was obtaining on the ground.

Last year, capacity utilisation levels in the manufacturing sector dropped to 39,6% while growth projections slumped to 3,4% due to slowdown in business activity.

Zimbabwe’s unemployment level has been heavily contested with industrialists placing it at above 80%, while the government has maintained a conservative figure of 10%.

The country’s universities were churning out over 10 000 graduates each year with most of them ending up absorbed in the informal sector.

 

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7 comments on “Zimbabwe records 75 company closures, over 9 000 job losses
  1. Sekuru Mapenga says:

    There is a crisis of confidence in Zimbabwe. There has been a crisis of confidence for a long time, but the recent re-election of Zanu PF, total lack of policy direction and exposure of high end looting of the economy have really spooked us all.

  2. Roving Ambassador says:

    These people should all be charge with high treason. Destroying a nation like this is inhuman.

    How can we expect a person owning 10 farms(conservative) and a dairy(conservative again) to run a country effectively.
    The same applies to all ministers.
    The concept of chefism must be spat on.

  3. John Thomas says:

    The man said a country cannot go bankrupt. Does even he still believe that rubbish? If there is a wrong move our government will make it. If there is a cheap crass short cut our government will take it. If there is a way to be stupid our government will use it.

    A lot of theories have been aired about our country and its president. The one I like, but do not hear much is that the president is thick. If you go over his record he has done so many stupid things it cannot be a coincidence.

    Business people are now so alienated that most of them would rather do almost anything to avoid creating jobs. It will take a lot to change this.

  4. Jogo Bonita says:

    And where are the 2 million jobs promised by these people?

  5. Jan says:

    9,000 job losses and mugabe is spending over i million dollars on a lavish birthday party. That old man is insane.who cares that he is having a birthday, certainly not me. all mugabe’s birthadys tell me is that he is getting older, and older evry year, loke the rest of the human race.mugabe is pathetic.

  6. Only Fools says:

    Oh I get it! The Government will blame the state of the country on “Economic Sabotage” from all these company shutdowns.

  7. Expat says:

    If it is as the Government say’s so that there is only 10% unemployment they must be doing very well from P.A.Y.E. tax collections therefore why are the civil servants not being paid!!!!! These people who somehow managed to get themselves into power again think that the general populace of Zimbabwe are stupid enough not to be able to follow the money trail and to see at this moment there is very little P.A.Y.E. tax being collected simply because the numbers contributing are rapidly disappearing. A lot ending up in the informal sector, if they count these as employed, well then they more foolish than we thought!!!

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