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By Pretty Chavango.

Harare. (News Of The South) – Once hailed as the bread basket of Africa, Zimbabwe’s economy has been reduced to a basket case, with agriculture once the backbone and mainstay of the economy now plagued with poor rainfall patterns and lack of adequate inputs.


Delivering the country’s Mid-Term Fiscal Policy, Zimbabwe`s Minister of Finance and Economic Development, Hon Patrick Chinamasa cited that the agricultural sector performance for 2014 fell below expectations owing to poor rains and expected to further decline by 8.2 percent.

As if it is not enough, Zimbabwe’s economy continues to deteriorate in all sectors on a daily basis and this is further accelerated by a disgruntled work force that is the few who are left.

With the number of people losing their jobs continuing to grow by the day, now estimated at 18 000 Zimbabwean people has been reduced to vendors , beggars and preachers .

In a move to promote local industries, restrictions where made on the importation of basic commodities and banning the importation of second-hand clothing. A move which has been welcomed by local manufacturers but resisted by informal traders who were surviving from this trade .

Rebate on imported basic goods which can be imported locally, while this move has been welcomed as a boost to the local industries Zimbabwe Coalition on Debt and Development (Zimcodd) an economic justice civil society has issued a review statement arguing that the policy review largely fails to address most Zimbabweans expectations.

Situation, rather it further impoverishes majority in the buying and selling trade and the announcement to ban importation of second-hand clothing and shoes is not going to help the situation, rather it furthering poverty for those majority in the buying and selling ,’’ the ban should be matched with resuscitation of the local Textile industry and control the influx of substandard Chinese products in the country’’ argues ZIMCODD . Local industries are not fully capacitated to service the entire country on their own.

The removal of basic goods travellers’ rebates at a time when there are serious local production capacity limitations or the high prices obtaining will negatively affect Zimbabweans socially and economically.

Finance minister announced a ten percent increase in import duty on second hand vehicles, most people had turned to imports from Japan and Britain increasing the import bill as the manufacturing industry in Zimbabwe is basically nonexistent. Government seeks through the fiscal policy to increase tax on second hand vehicles aged more than five years from the day of manufacture from 25% to 35% with effect from the first of September this year.

As this is not enough, the recently passed Reserve Bank of Zimbabwe (RBZ) Debt Assumption law further worsens the debt burden which currently stands at $8, 4 billion, the $1; 3 billion RBZ Debt assumptions aggravate the country’s debt situation. Analysts have warned that the government does not have capacity to assume the staggering central bank debt, as the country is already overburdened with foreign debt. ZIMCODD reports that Currently Zimbabwe’s external public debt is around US$6-11billion, this debt consists of bilateral and multilateral loans roughly each Zimbabwean has a debt that ranges from $500 to $850.

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