Zimbabwe firms come up with smaller, low-value packaged products

Low disposable incomes have forced local manufacturing companies to come up with smaller and low-value packaged products amid accelerated economic decline.

Disposable income, also known as disposable personal income (DPI), is the amount of money that households have available for spending and saving after income taxes have been accounted for.

The need for small packages is coming at a time the majority of Zimbabweans are languishing in abject poverty, surviving on an average US$1 a day for food and US$3,23 on both food and non-food items, the national statistical agency, Zimstat, says.

Low DPI has been exacerbated by a lack of mainstream and formal jobs as company closures become the order of the day in Zimbabwe.

Almost 229 companies in the first half of 2016 were shut down, leaving hundreds jobless as the country's economic implosion continues to worsen.

Meanwhile, the Confederation of Zimbabwe Retailers has said Zimbabweans should embrace bond notes, which are due for introduction this month as they will also go a long way in promoting local exports, in addition to easing the liquidity crunch.

Confederation of Zimbabwe Retailers president Denford Mutashu said Zimbabweans should not be disheartened by the coming of bond notes.

Mutashu said there are also bright prospects to our local industry as the 5 percent export incentive will be reinvested in local production thereby improving capacity utilisation and create more jobs for Zimbabweans. He said Zimbabweans should not fear that bond notes would flood the country.