Urgent action need to rescue economy

President Robert Mugabe’s government should urgently put in place an austerity programme to boost Zimbabwe’s foreign currency reserves, and reverse economic decline, a business leader said on Tuesday. Zed Rusike, head of the Confederation of Zimbabwe Industries (CZI), said in a statement that economic shrinkage was projected at 4.2 percent this year. Rusike said many local companies were faced with collapse due to a crippling foreign currency shortage which has persisted for over a year. “The casualties of foreign currency continue to mount by the day as companies are closing due to lack of essential inputs,” Rusike said.

“The government should move with speed to put in place an austerity programme which will involve putting together an economic recovery programme that will be acceptable to international donors,” Rusike added. In October Finance Minister Simba Makoni said the country was currently undergoing its worst economic crisis since independence from Britain in 1980 and was living from hand to mouth.