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    Service sector struggles with competition, high finance costs

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    Harare, (New Ziana) -Service sector businesses in Zimbabwe are facing significant challenges, including stiff competition and high finance costs, a recent survey has found.

    The service sector refers to a category of the economy that consists of
    intangible goods and services rather than physical products.

    It includes a wide range of industries such as hospitality, finance,
    healthcare, education, transportation, and entertainment.

    The service sector is typically characterized by a high degree of
    customer interaction and customization.

    A business tendency survey (BTS) which the Zimbabwe National Statistics
    Agency (ZIMSTAT) conducted recently found that competition was a major
    limiting factor for business expansion in several sectors.

    The survey focused on various sectors including construction,
    transportation, wholesale and retail trade, and financial and insurance
    activities.

    According to the report, 53 percent of respondents cited competition as
    a major challenge, while those in the construction sector cited high
    material costs.

    Respondents in the financial and insurance sector pointed to high
    finance costs as a major obstacle.

    The survey also found that business confidence indices decreased across
    all sectors during the third quarter compared to the second quarter. The
    Financial and Insurance Sector saw the largest decline, with its index
    dropping from -3.3 to -8.6.

    Despite these challenges, 51.3 percent of respondents anticipated an
    improvement in the business situation during the fourth quarter of 2024.
    However, the majority of respondents expected the number of persons
    employed by their establishments to remain unchanged.

    The survey findings highlight the need for policymakers to address the
    challenges facing the service sector, including high finance costs and
    competition.

    By doing so, authorities can help create a more conducive business
    environment that supports growth and development.

    New Ziana

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