Zimbabwe govt destroying the economy

Zimbabwe government has been accused of accelerating economic collapse by discouraging investments in a "country already hard-hit by a debilitating liquidity squeeze."

This comes as Government is soldiering on with closing all foreign firms in April, which are not complying with indigenisation laws.

BUY Zimbabwe  said the move would trigger continued economic decline and abject poverty.

In a statement on Tuesday, Buy Zimbabwe chairperson Oswell Binha said the latest turnaround on indigenisation laws would likely further discourage investment in a country already hard-hit by a debilitating liquidity squeeze, low capacity utilisation of less than 50%, company closures and massive job losses.

"The proposed Cabinet directive to close companies as a punitive measure is tantamount to condemning Zimbabwe into continued economic decline and adjective poverty.

"This issue of government trying to decimate the private sector is very unfortunate and uninformed. Threatening to close companies shows a lack of understanding of the economy and forces of economic prosperity.

"The government needs to take stock of the impact of what is being done by the Indigenisation ministry. The consequences of the confusion that has emanated from the numerous pronouncements on indigenisation are already being keenly felt," Binha said.

He added "In the midst of this economic malaise, Zimbabwe's contentious indigenisation programme remains a millstone around the neck of the economy amid lack of a settled and progressive policy informed by a realistic economic agenda beyond the current legal framework,".