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