Industry pins hope on new government

Published: 09 August 2013

The Confederation of Zimbabwe Industries (CZI) is pinning its hope for economic revival on the incoming government's ability to restore confidence in the country's financial markets. In an interview, CZI president Mr Charles Msipa said during the first six months, most companies struggled financially resulting in some closures.

"Industry has very high expectations. If the Government restores confidence in financial markets, industry will not be starved of the much needed capital," he said.

Mr Msipa said negative sentiments and political uncertainty had an adverse impact on the economy, which badly needed fresh capital.

"We cannot under-estimate the impact (of political instability), for instance if we are to look at what happened on the stock market, it is a clear sign that negative sentiments hit hard on the financial markets," he said.

Following the harmonised elections, there was speculation that the incoming Zanu-PF government was going to re-introduce the Zimbabwean dollar immediately.

Mr Msipa said once financial institutions and investors feel confident about the economy, industry would be able to source long term credit facilities for capitalisation.

He said the new government should also manage perceptions of political risk.

"Once government clearly defines parameters between politics and business, it becomes easy for industry to do business without fear," said Mr Msipa.

He said the government also needed to resolve infrastructure constraints in the economy.

Zimbabwe's industry has seen over a decade of economic meltdown as a result of sanctions imposed by the West.

- New Ziana

Tags: CZI,