Big Companies Set to Collapse as Zimbabwe Economy Falters

via Big Companies Set to Collapse as Zimbabwe Economy Falters by Blessing  Zulu 31.12.2013 VOAZimbabwe

Economists, industrialists and labour experts are warning of a troubled 2014 for Zimbabwe as many companies are slipping into liquidation or judicial management, throwing thousands of workers out of the job market and invariably pushing the unemployment rate close to 90 percent.

Finance Minister Patrick Chinamasa, who projected an optimistic 6.1 percent growth rate next year, has also admitted that the economy is “saddled with severe socio-economic problems including a fragile treasury, erratic power supplies and lack of clarity over the country’s black empowerment law.”

According to the Master of the High Court’s roll, scores of companies are each month applying for judicial management, liquidation and voluntary closure as provided for by the Companies Act. The act provides that a company may be placed under judicial management if it is unable to clear its debts or when it is likely to collapse.

The Master of the High Court’s roll shows that some of the affected companies from across all economic sectors include Zimbao Mining Ventures, Infinity Asset Management, Rusape Service Station, Central African Shipping Agencies and United Methodist Publications and Stationers Foundations.

Others are ambulance service provider Mars Zimbabwe (Pvt) Ltd, Road Construction company Gulliver Consolidated, multi-industrial concern Phoenix Consolidated Industries, KM Financial Holdings and several holding firms such as Apex holdings and Shaefur investments.

Big companies that have retrenched staff include Zimplats, Unki, Bindura Nickel, Mimosa, Spar Supermarkets, Dairibord, Cairns Foods, Olivine Industries and PG Industries.

Zimbabwe has been hit by a severe liquidity crunch that has forced industries to operate far below capacity.

A partner at Deloitte & Touche, Tapiwa Chizana who is involved in business rescue and judicial management, said many companies are struggling to survive.

COMMENTS

WORDPRESS: 24
  • comment-avatar
    Dayford 8 years ago

    No surprises here at all. This was to be expected given Zanu PFs’ intransigence. We are in trouble Zimbabwe.

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    haranga 8 years ago

    raise duty for the trinkets. the whole country is now full of chinese junk purchased using hard currency. zanu pf “musadye uroyi hwehama nekunyara…literally “

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    What do expect from buffoons

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    Sekuru Mapenga 8 years ago

    2014 may well be worse than 2008. Deflation is a different beast than inflation. Inflation can be mitigated by dealing in external currencies. Deflation — demand just dries up because there is no money being spent. So all these big companies have no income and are forced to close.
    Why is there no money being spent? Because Mudhara and his gang have said that they are going to take everyones’ businesses and give 51% to their shamwaris. There is no trust in Zanu PF to govern properly without corruption and abuse. There is no rule of law to rely on.
    So no-one is spending on assets that might be taken away tomorrow. Rather people cling on to the US dollar and save it for the hard days ahead.

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    Gonzo 8 years ago

    God have mercy on us

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    Daniel 8 years ago

    Anyone surprised?When Bob and his government are all thieves and you ruin agriculture in a agric based economy the dommino effect takes place and we see the result.Lets hope that when this happens the MDC or whoever is the opposition dont make a fool of themselves again by trusting ZANU.Let them implode then we can pick up the pieces and start building again.

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    No repentance! No restoration! What so ever we sow in life we will reap. The God of justice and judgment is long suffering and merciful but the time is coming when He will pull the rug out from the sinner that refuses to repent. ZPF be warned. Your government is built on a lie and God knows this!

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    Jrr56 8 years ago

    When the government is involved in asset stripping (call it indigenisation or whatever) the writing is on the wall.

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    Khaya'bonina 8 years ago

    We are just about to rise up against ZANU PF and thier old man .FIX UP THE ECONOMY OR HAND OVER POWER AND PRESIDENCE TO THE SOLDIERS , THEN FOLLOWED BY THE ELECTIONS FOR A DEMOCRATIC LEADER , iam shaken by this , how can it be in our beloved country .

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      Kevin Watson 8 years ago

      The soldiers are part of their gang of ZANU PF thieves, so that will not happen.

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    Zvakwana 8 years ago

    This can be blamed squarely on the shoulders of the SADC observers who allowed this masquerade to continue for another 5 years the likes of Mbeki,Zuma,Obasanjo,etc etc.

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    Johann 8 years ago

    I agree Zvakana – How true

  • comment-avatar
    dayford 8 years ago

    Funny how there are no Zanu PF sympathisers commenting here, ….we are waiting to hear from you.

  • comment-avatar
    diaspora 8 years ago

    United we stand, divided we fall.maiti ndimi munozvigona pamakamudzinga mwana waMrs?nhasi mouraisa vana vasina mhosva nenzara. Vakomana muchamhanya!

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    Moses 8 years ago

    Be prepared for four more long frustrating years before the next elections in 2018 not before.The decline will continue and probably accelerate. There will be no divine intervention. Old men bereft of ideas , entrenched in dead idealisms , will slide us all into the abyss calmly complaining but doing nothing to save ourselves. And worst of all no viable alternatives in our politics. How sad.

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    Joboringo 8 years ago

    You didnt believe b4 rigged election as we said the country is on wait &see,now full of zanu thiefing policies they see no future,beter step to liquidate officialy b4 indegenised latter collapse leaving all in your hand.chingotorai sezvamakaita mafarm mupedze shungu

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    Mr Mixed Race 8 years ago

    Just wait and see how the economy of the country changes those who were misguided by greed and party partisanship,once their riches start diminishing beyond their control.We are used to suffering therefore its the rich who will start adjusting their standards of living from $1000 per day to $10 per day as indicated in one of the divorce cases.God will not allow the poor to suffer any more but his justice will be done to these selfish looters by diminishing their loots.As the economy gets worse all the ghost workers who benefited will soon join the genuine unemployed people to experience real life because their masters cannot protect them.No easy money for tuck shop beers- you lazy boys.

  • comment-avatar
    Joboringo 8 years ago

    Bhora mugedhi vs bhora musango,who’s the winner,unemplymt &poverty.zimba can do without the world.kkk-kk-kk

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    Forget 2018 erections. Zanupf will have imploded cos of an catastrophic economic collapse by 2015. We need then a new truly competent patriotic leader. Not from mdc either please.

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    Oldsoldier 8 years ago

    The country might collapse sooner than expected. Do the Maths. If there are 12 million Zimbabweans and each one consumes an average US5.00 a day, that is 60 million dollars a day. More than 90 percent of all that is imported. When you throw in the imported machineries, office equipment, vehicles and their spares, building materials, all imported, you might end up with a small country that spends something like 500 million on imported goods daily. What do we export to balance off the colossal sum. We hear that the diamond mines are no longer yielding much. Unless our leaders face the facts and make the necessary U-turn in all the wrong decisions taken, we can be certain that the worst is yet to come.

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    u snooze u lose Zimbabweans…..rise and let your voices be heard

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    Zim is a country that’s already dead.This is nothing new