Basic commodities shortage looms

A shortage of basic commodities is looming in the country, unless the current cash crisis is effectively addressed before the end of the year, analysts have warned.

Zimbabwe is currently facing a serious cash crunch as a widening trade deficit and a stronger US dollar weigh on the economy.

In a bid to ease cash shortages the central bank has cut charges for electronic payments and also imposed limits on daily bank withdrawals. Analysts said the government needed to take radical measures to address the current economic challenges.

Meanwhile, Vice-President Emmerson Mnangagwa has admitted that the country's economy is navigating in troubled waters, making it difficult to attain the 2016 National Budget targets.

Mnangagwa said the El Nino-induced drought and the resultant costs of importing grain, as well as low commodity prices were taking a toll on the economy. The government is failing to pay civil servants' salaries on time due to poor revenue inflows, amid indications that this year's projected growth rate of 2,7% will not be met.

Mnangagwa said the government was assessing business operations to identify areas needing urgent interventions to improve the investment climate through empowering local entrepreneurs, tapping into Zimbabweans living in the Diaspora and foreigners to invest in the country.