Zimbabwe loses out export competitiveness

Zimbabwe is failing to generate reasonable export earnings due to competitive issues arising from the use of a multicurrency regime, a leading research firm has said.

In a note to investors, MMC Capital said while the introduction of the multi-currency regime in 2009 was lauded as positive, the system has brought with it some challenges of its own.

The basket of currencies used in Zimbabwe has the US dollar, South African rand, Botswana pula and British pound.

MMC said the rand has been under pressure since 2012, "giving a compelling case for a Zimbabwean consumer to increase imports given that the products have become more affordable".