Forex shortages worsen

An implosion is simmering in a number of critical industries on the back of a worsening payments gridlock in the financial services sector with imported raw materials running out at some plants around the country, raising the spectre of more company closures and job losses.

The worst hit is the manufacturing industry and the mining sector, which contributes about 40 percent of the country's export receipts.

Indications are that gold mining companies could mothball operations due to failure to secure foreign currency for raw material imports, with dire consequences on the entire economy.

A drop in volumes in the resource sector could compound an already fragile liquidity situation with jobs getting threatened, and inflows into the fiscus becoming thinner.

Overall, the country's economy had been projected to register a growth of 1,7 percent this year, predicated on growth in mining and agriculture.