Harare, (New Ziana) – The Confederation of Zimbabwe Industries (CZI) said on Wednesday the upcoming mid-term budget review must primarily focus on saving jobs by supporting local firms and creating a stable environment for business in light of the havoc caused by the Covid-19 pandemic.

Finance and Economic Development Minister, Professor Mthuli Ncube is
due to present the mid-term budget and economic review in Parliament
on Thursday.

Government and other multi-lateral institutions have already predicted
that the economy will contract this year, choked by the Covid-19
pandemic and other vagaries such as drought.

The CZI, a body which represents a diversity of large businesses, said
most businesses in the country were under threat of sinking.

“With the level of economic crisis facing Zimbabwe worsened by
Covid-19 and drought, options for firms to continue as going concerns
are limited,” the CZI warned.

“The situation calls for high level innovation at firm and policy levels.”

The CZI said the mid-term budget must be innovative in addressing
challenges facing the economy and provide solutions to currency
ambiguities, arresting inflation by addressing demand issues,
improving availability of foreign currency to the productive sectors
and giving support to firms to save jobs.

“Inevitable threats include high inflation, low production and
productivity, disruption of source and destination markets, low demand
and reduced revenue,” the business body said.

“The society is also faced with job losses, high insecurity levels and
dependency ratios.”

Following the Covid-19 national lockdown imposed four months, most firms -which were already struggling due to a cocktail of issues – are badly struggling to find their footing.

Some have not only retrenched but also cut salaries for employees due to
reduced revenues.
New Ziana