ZIMBABWE’S economy is in turmoil, and the consequences are evident. Companies are struggling to stay afloat, while others have closed shop due to escalating operational costs.
These include high power tariffs, electricity shortages, currency volatility, and high taxation among other ills.
This week, Triangle Limited announced plans to retrench workers, citing the challenging local economic environment.
“The current economic environment in Zimbabwe has presented unprecedented challenges for Triangle Limited over the past three years,” the company stated.
“Escalating operational costs, particularly in areas such as fertiliser, fuel, maintenance costs, and imported goods/services, combined with inflationary pressures, currency losses, the inability to claim value-added tax (VAT) on inputs after sugar was exempted from VAT, and competition from low cost duty free imported sugar, have severely impacted our ability to sustain current levels of operation.”
The sugar maker has reported a 55% decline in profit margins since 2022, a 133% increase in manpower costs as a proportion of revenue, and rising debts.
Furthermore, formal retailers are struggling to restock, pointing to a challenging operational environment and a bleak outlook for 2025.
Economists warned last year that 2025 would be a challenging year unless authorities took decisive action, but their advice fell on deaf ears. And these are the consequences.
Instead, the ruling Zanu PF party appears to be more focused on its Agenda 2030, which aims to extend President Emmerson Mnangagwa's term in office, while neglecting pressing economic issues.
On the other hand, opposition parties have lost direction, with some joining the gravy train and effectively enabling Zanu PF extremists to undermine the constitution.
This highlights the self-serving nature of politicians, who prioritise their interests over the welfare of the nation.
It is imperative that, Zimbabweans, as stakeholders, take action to dictate the country's direction, rather than rely on politicians who have demonstrated a lack of concern for their well-being.
If Zimbabweans fail to act, the economy will continue to deteriorate, and numerous companies will fold, leaving thousands without jobs.
The situation demands urgent attention from citizens, the private sector, and civil society. All hands should be on the deck.
We must come together to push for policies that promote economic growth, job creation, and social welfare.
We would also like to urge the government to prioritise the nation's interests over personal agendas and take concrete steps to address the economic crisis.
Moreover, Zimbabwe needs to diversify its economy, invest in infrastructure, and promote foreign investment.
We must also address the issue of corruption, which has become a significant obstacle to economic progress.
By working together and holding our leaders accountable, we can create a brighter future for Zimbabwe.
The time for action is now, lest our children inherit a shell of a country.
