Zimbabwe have been experience some rough patch over the years, the main cause of this issues have been because of lack foreign direct investment and shutdown of many industries. This have led to slowing down of the economic growth which was facilitated by our poor policies. The policies were adopted in the late 90s caused a stir to foreign direct investment. Some of these policies are Indigestion policy, land reform policy and the rampant raise of corruption within the country. According to African Development Bank Group cited that the reason why Zimbabwe is in this predicament is because of, " economy continues to face structural challenges from high informality, weak domestic demand, high public debt, weak investor confidence, and a challenging political environment."
The economy have become more of retail economy as the mushrooming of shops selling imported groceries have become the order of the day. There are very few companies that are still manufacturing for export therefore as a result the countries have got a 'Negative GDP' resulting in trade deficit. Oxford Dictionary had this to say about trade deficit, "The amount by which the cost of a country's imports exceeds the value of its exports." Most of this companies that are still manufacturing there have dilapidated machinery that render their produce very noncompetitive in the global village we now live in. Due to weak investor confidence has resulted in most of the companies finding it hard to find external source credit lines as most of the investors afraid to loose their money as there is high risk of unfair policies being enforced on them.
The lack of proper governance and accountability by most of the officers who holds top offices have resulted in the country experiencing high level of corruption. This have led to few individuals getting rich at the expense of the public, a good example of the factor mentioned about can be the disappearance of the $15 billion dollars that was realized from the sale of diamonds. According to the Herald of 28 April 2016, there was an article which talked about the government launching an investigation in the disappearance of the money. The high volume of unemployment have led to high level of vendors in the Central Business District as they seek to make a living.
Zimbabwe need a lot effort to facilitate turnaround strategies that should first start with our culture of conducting business. This can only be effective if we have a shared vision as a country and the desire to pursue the vision as one. For instance the United State of America that unite the states in the pursuit of better livelihood for their citizens which they call "the American dream". Our laws should not have loopholes where you find out that certain individuals above the law. There ems that forces should be system that forces accountability to the highest level and proper corporate governance. In turn this two will bring about the necessary development required in these country to start having a direction. We need to come up with investor friend policies that shows clear where we stand what we want to achieve and also promoting other source of foreign currencies from citizens outside the country.
The economy have become more of retail economy as the mushrooming of shops selling imported groceries have become the order of the day. There are very few companies that are still manufacturing for export therefore as a result the countries have got a 'Negative GDP' resulting in trade deficit. Oxford Dictionary had this to say about trade deficit, "The amount by which the cost of a country's imports exceeds the value of its exports." Most of this companies that are still manufacturing there have dilapidated machinery that render their produce very noncompetitive in the global village we now live in. Due to weak investor confidence has resulted in most of the companies finding it hard to find external source credit lines as most of the investors afraid to loose their money as there is high risk of unfair policies being enforced on them.
Zimbabwe need a lot effort to facilitate turnaround strategies that should first start with our culture of conducting business. This can only be effective if we have a shared vision as a country and the desire to pursue the vision as one. For instance the United State of America that unite the states in the pursuit of better livelihood for their citizens which they call "the American dream". Our laws should not have loopholes where you find out that certain individuals above the law. There ems that forces should be system that forces accountability to the highest level and proper corporate governance. In turn this two will bring about the necessary development required in these country to start having a direction. We need to come up with investor friend policies that shows clear where we stand what we want to achieve and also promoting other source of foreign currencies from citizens outside the country.
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