Business Correspondent
The recent closures of retail outlets in Zimbabwe have been attributed to ongoing economic turmoil, particularly driven by currency depreciation.
As businesses struggle to cope with the challenging economic environment, Parliament has pressed Finance Minister Mthuli Ncube for explanations regarding these closures. The situation is exacerbated by the depreciation of the Zimbabwe Gold (ZiG), which is currently trading at a significant premium on the black market, reflecting a 61% premium over the formal market rate.
Currency Fluctuations
On November 4, 2024, the ZiG appreciated slightly to 27.99 from 28.68 on November 1, according to Central Bank data. However, this appreciation contrasts sharply with the rising demand for U.S. dollars, indicating persistent currency pressures within the economy.
Energy Sector Developments
In response to its growing electricity demands, Zimbabwe is exploring the establishment of nuclear power plants in collaboration with the International Atomic Energy Agency (IAEA). Despite having significant coal deposits, the country has struggled to meet its energy needs, primarily relying on the Kariba Hydro Power Plant, which has faced limitations due to recurrent droughts.
Social Issues and Safety Concerns
In other news, the tragic shooting of businessman Eric Tambudze has raised concerns about safety and crime in the region. Tambudze, who was involved in various business ventures, was shot at his home, and reports indicate that nothing was stolen, suggesting a possible targeted attack.
Education and Welfare
Parliament has also highlighted the need to improve teachers’ welfare as part of efforts to revitalize the education system. This call was made during a workshop hosted by the Zimbabwe Teachers Association, emphasizing the importance of supporting educators in the country.
Conclusion
The current economic landscape in Zimbabwe is marked by significant challenges, including retail closures, currency fluctuations, energy shortages, and social safety concerns. These issues are prompting calls for government action and support across various sectors.
Zim GBC News©2024