AS THE ECONOMY CONTINUES TO SINK DEEP... It demands a lot for any economy to be fully functional and gloomy. I see that, we are just unfortunate as a nation because those who are in power craft policies and documents each and every year but there is no single improvement in the ugly situations our beautiful country is experiencing year by year. My observations from simple economics tell me that, the situation will continue to worsen because so far it is now very cheap to do business in South Africa because we now need less US dollars than we used to do in previous years. I remember paying US105 to get R1000 late last year but now i need only US85 to get the same amount of Rand. What is needed for a sharp turn around is actually a simple decision from the Governments side. Firstly, the government just need to be accountable and transparent. Secondly, the tax rates in the country need to be increased so as to cut down excess income people use to go and do luxury importing and all other unnecessary importations people do in different countries around the world. This will help to reduce the trade deficit the economy face every year. Then the government has to negotiate for business and make the country a safe and a free environment for business. The depreciation of the South African Rand is so detrimental to our economy because more companies locally find it cheap to buy the finished products in S.A and sell them here at a mark up pricing strategy. Those companies are now acting as agents to the companies they use to be competitors to and the negative results of these moves are the termination of employment of our family members and close friends. Shame to the Zimbabwean Government. The situation was going to be better if we had our own currency as a nation. The situation in the country so far is that, we have a weaker economy but using the strongest currency in the world. Our weaker economy is failing to sustain the hard currency at all.
Posted on: Tue, 28 Jan 2014 14:42:55 +0000
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