Home LOCAL NEWS 20+ Companies Failed To Open Doors In 2020 As Economic Turmoil Accelerates

20+ Companies Failed To Open Doors In 2020 As Economic Turmoil Accelerates

20+ Companies Failed To Open Doors In 2020 As Economic Turmoil Accelerates

20+ Companies Failed To Open Doors In 2020 As Economic Turmoil Accelerates

More than 20 companies failed to reopen after the festive season, leaving at least 500 workers in the lurch, businessdigest has learned.

20+ Companies Failed To Open Doors In 2020 As Economic Turmoil Accelerates

This comes at a time the economy is facing serious headwinds which include prolonged power cuts of up to 18 hours, depressing production at less than 40% capacity, fuel and foreign currency shortages and year-on-year inflation which has galloped past the 500% mark.

Zimbabwe Federation of Trade Unions (ZFTU) secretary-general Kenias Shamuyarira told business digest this week that 22 companies have failed to reopen their doors after the Christmas holidays as the deepening economic crisis takes its toll.

“We have quite a number of companies who have failed to reopen after the festive season. There are about 22 companies which have failed to reopen which in total employ more than 500 people. This is due to economic difficulties,” Shamuyarira said.

He said although some of them had closed shop, others are still sitting on the fence as they assess the situation on the ground particularly around power outages which have crippled the operations of most business entities.

Shamuyarira pointed out that most of the companies that have failed to reopen are from the manufacturing sector. Zimbabwe Congress of Trade Unions secretary-general Japhet Moyo said they are still in the process of collecting information on the number of companies that did not reopen their doors after the festive holidays.

However, he pointed out that, in a bid to cut on costs, companies have resorted to telling their employees to go on leave to reduce the number of leave days they have.

In an interview, CEO Africa Roundtable chairperson Oswell Binha revealed that they are also in the process of gathering information on the number of companies that did not reopen after the Christmas holiday.

“The CEO Africa Roundtable is currently undertaking an evaluation of how many companies have failed to open shop by January 2020,” Binha said this week.

“Company operations affected to near-closure by the 18-hour load shedding, absence of key enablers, hyperinflation and low aggregate demand are increasing with some opting to institute care-and-maintenance to reduce operational costs.”

Economist Godfrey Kanyenze warned that more companies could be forced to close shop if there is no change to the turbulent economic environment.

“As long as there is no sign of any change for the better, the situation on the ground will not improve,” Kanyenze said.

“With fuel shortages and power outages getting worse, how do you get a positive vibe? Put yourself in the position of those companies who have to run their businesses with various equipment on generators. What is needed is a holistic approach that deals with politics. The political bickering indicates that nothing has changed.”

Labor market analyst and former Employers’ Confederation of Zimbabwe (Emcoz) executive director John Mufukare said the failure by companies to reopen in the New Year signals worsening economic decline.

“I am not in the least surprised by this development,” he said. “We are going from bad to worse and you do not need to be a rocket scientist to see that.”

Businessdigest

TRENDING TODAY…

The Man caught red-handed with Mai Prince has been identified!

The Man caught red-handed with Mai Prince has been identified – Sheunesu Fundu and from the pictures, we gathered he seems happily married… but is he really?

The Man caught red-handed with Mai Prince has been identified!

According to other witnesses, Sheunesu Fundu once worked as an accountant at the Rainbow Hotel in Bulawayo thought his….more here

THIS WEEK…

Bev Weds: Full Story
Govt revises civil servants pay offer
7 THINGS YOU MIGHT NOT KNOW ABOUT MARRY CHIWENGA
Mai Titi Stigmatized For Dating Zizoe While HIV Positive
Mugabe’s Corpse saga: Grace, Chombo, Chiyangwa To Be Arrested
Khama Billiat in nasty baby mama drama gets stabbed
SA Police arrest Zimbabwean who killed senior cop

If you suspect you have COVID-19 infection or wish to obtain more information on this disease, please call the Ministry of Health and Child Care on toll-free hotline number 2019 for assistance +263714734593 or +263774112531

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.