ANALYSTS and opposition political parties have expressed concern over a spike in job losses as companies downsize or close shop citing a tough economic environment.
The formal retail sector has been the hardest hit, with some outlets struggling to restock as they edge towards closure a development reminiscent of the 2008-2009 economic crisis.
While the government talks of prospects of an economic turnaround, indications on the ground suggest otherwise as seen in company closures.
CCC spokesperson, Willias Madzimure, attributed the economic downturn to government's misaligned and inconsistent fiscal and monetary policies.
Madzimure said the policies had created an unsustainable business environment, exacerbated by measures outlined in Finance minister Mthuli Ncube’s budget.
"The CCC attributes the unfolding economic catastrophe to the misalignment and inconsistency in the Fiscal and Monetary policies being pursued by the government," Madzimure said in a statement.
The CCC urged government to take immediate action to address the economic crisis by calling an urgent stakeholder engagement to seek ways to mitigate the rate of company closures.
"We believe that a collaborative approach is essential in addressing the current crisis and creating a sustainable economic future for all Zimbabweans," he said.
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CCC Mbizo legislator, Corban Madzivanyika, said the exchange rate instability was fuelling the closure of businesses.
"The difference between the formal exchange rate and the informal exchange rate is creating a premium that is too big for businesses to handle," Madzivanyika said.
He said government's insistence on using the formal exchange rate is unsustainable and called for the adoption of a floating exchange rate.
Economist Vince Musewe said the implosion was a result of the country's bad policies.
"This creates a self-reinforcing vicious cycle where companies close and confidence is eroded leading to more companies closing and more job losses and so on.
"We are on a slippery slope and the bad news is that economic policymakers are in denial," said Musewe.
Government introduced the Zimbabwe Gold (ZIG) currency last year in a desperate bid to save the economy from total collapse after the local unit went on a free-fall.
The ZiG has failed to stabilise the economy and is being shunned in transactions by business and government agencies which prefer the United States dollar.
