Business loses confidence in Mnangagwa

THE business community appears to have lost confidence in President Emmerson Mnangagwa’s new political dispensation, with the latest Confederation of Zimbabwe Industries (CZI)’s composite Business Confidence Index (BCI) indicating a negative trajectory, particularly in the first quarter of this year.

BY TATIRA ZWINOIRA

Since he took over levers of power in November last year, Mnangagwa’s administration had been riding on a wave of optimism, but the pessimism later cripped in following the regime’s failure to resolve the cash crisis, with industry battling to source foreign currency to import raw materials.

Announcing the BCI results in Harare yesterday, CZI president Sifelani Jabangwe said the composite Business Confidence Index for the first quarter of 2018 stood at minus 14,4 for quarter-on-quarter basis and 20,9 for a year-on-year.

“This indicates lack of confidence and pessimism of business leaders for quarter-on-quarter business condition, but optimism of business leaders regarding the year-on-year economic situation,” he said.

Jabangwe told NewsDay that all the manufacturers that they surveyed complained mostly about the difficulty in getting foreign currency.

“What motivated this pessimistic result was that most manufacturers have been failing to get foreign currency for their operations to a point where their production has been greatly affected. Almost every manufacturer we surveyed complained that they were receiving little or no foreign currency so I would say it has been mainly due to foreign currency shortages,” he added.

The negative result recorded in the BCI was on a quarter-on-quarter basis against the last quarter of 2017 while the BCI year on year result was 20,9 showing an improvement compared to the first quarter of 2017.

This comes as foreign currency has remained scarce in the first quarter due to a lack of foreign investment and low exports based on low production.

Manufacturers need between $250 million and $500 million in capital to retool and increase production.

Recently, British American Tobacco described their particular situation as “drier” than other first quarters in getting forex.


Under the BCI, the Situation Diffusion Index was minus 12,2 for a quarter-on-quarter comparison and 4,5 for year-on-year comparison showing business leaders felt that the situation was worse off in the first quarter of 2018. This was compared to the previous quarter in 2017.

44 Comments

  1. josphat mugadzaweta

    hapana hapana. only the worst fools believe in the so-called new dispensation led by a man who has been mugabe’s right-hand man for 50 years. now busy dishing out computers and cash exactly the mugabe way.

  2. you have no choice business community you have to believe in this guy as he is going nowhere after elections

  3. Shortage of forex has nothing to do with Mnangagwa. We can only blame him if the situation continues when he has got a full mandate after elections. Currently Murambwi justs holds a transitional mandate and in such cases business reasonably trade cautiously. Honestly I believe his excellency’s name has been unfairly treated in this article.

  4. Comment…Zimbabwe deserves a better leader than ED. He is a liar and very corrupt. He must go into farming fulltime. Pasi nejunta.

  5. It’s so sad to hear such sentiment from our business leaders and industrialists. You’re supposed to come up with winning strategies that should put forex in your coffers and stop playing this victim card. You ain’t different from people in the street who are also pointing to the Government for everything. Your entities are in such sorry states as you portray it here all because of your mentality. It’s high time you become the captains of your ships and ride on the stormy waters, that’s how you become masters. I bet if these industrialists will be able to successfully lead their entities in other countries where forex is in abundance. Cry my beloved Zimbabwe.

    1. Kwana iwe, the government is supposed to create the platform for businesses to come up the solutions that help people. This include peace, exchange controls, currency and ease of doing business. Saka how can businesses be captains of their ships when there is no forex, how can they pay their suppliers, remember bond harishanda kunze, chero raishanda harizikuwanika

  6. Seriously Newsday “pessimism later cripped in” – would have expected it to have “creeped in”

  7. MDC Campaign NONSENSE

  8. Comment…Newsday is a business it needs to make money and you make money by targetting urban areas.Most urban areas are pro-MDC so by writing anti-ED articles there are high chances that the urban people will buy that newspaper.

    1. Basil nyahunzvi

      In you world and experience Fidza if that article is inaccurate tell me do you think forex is abundantly available in society.

  9. Comment… Zvakadhaka izvi hapana kana plan

  10. ED administration is rubbish.Who will have confidence in a gvt from a party with officials who have no respect for property rights.
    ESAU MUPFUMI from Mutare forcibly took a Chikanga Primary School bus to ferry ZANU PF Idiots to a ground breaking ceremony in Bocha.He also demanded fuel from the poor school.He insulted the school Head in front of kinds because she was saying she could not release the bus coz it belongs to the parents through the SDC.
    Given such a scenerio do you think investors will have confidence with the ED administration NEVER.

    Worse still the utterances by idiot Mukupe.Mukuvahotera zanu muchaiona nhamo yacho.

  11. ED administration is rubbish.Who will have confidence in a gvt from a party with officials who have no respect for property rights.
    ESAU MUPFUMI from Mutare forcibly took a Chikanga Primary School bus to ferry ZANU PF Idiots to a ground breaking ceremony in Bocha.He also demanded fuel from the poor school.He insulted the school Head in front of kinds because she was saying she could not release the bus coz it belongs to the parents through the SDC.
    Given such a scenerio do you think investors will have confidence with the ED administration NEVER.

    Worse still the utterances by idiot Mukupe.Mukuvahotera zanu muchaiona nhamo

  12. TSVANGIRAYI MUGABE

    ED administration is rubbish.Who will have confidence in a gvt from a party with officials who have no respect for property rights.
    ESAU MUPFUMI from Mutare forcibly took a Chikanga Primary School bus to ferry ZANU PF Idiots to a ground breaking ceremony in Bocha.He also demanded fuel from the poor school.He insulted the school Head in front of kids because she was saying she could not release the bus coz it belongs to the parents through the SDC.
    Given such a scenerio do you think investors will have confidence with the ED administration NEVER.

    Worse still the utterances by idiot Mukupe.Mukuvahotera zanu muchaiona nhamo

  13. Gentlemen call a spade a spade not a spoon. If things are not right , they are not right. Good governance is key to sustainable development in any country under the sun. Investors needs confidence in how the country is being run. Corrupt leaders must be flashed out in the system.

  14. Business never had confidence with ED’s regime, the writer was just being generous with words. ED’s coming in brought some optimism that never matured into confidence simply because all the rhetoric about Zim being open for business was never matched with action.

  15. Comment…chamisa has all votes, timbonzwa nhema new1, tahwa ne junta

  16. Mnangagwa is surrounded by idiots like esau mufumi, mukupe and josiah hungwe. But ED is a good man with good policies. Lets give him a chance. He is a better devil when compared to irresponsible and immature chamisa

  17. Mnangagwa is surrounded by idiots like esau mufumi, mukupe and josiah hungwe. But ED is a good man with good policies. Lets give him a chance. He is a better devil when compared to irresponsible and immature chamisa

  18. OK Zim posts 174,6% profit after tax
    By Newsday – May 25, 2018.

    Does this not show a different picture, Newsday?

    1. Comment…Due to price hikes my friend. It was not because the economy was performing well & what is sad is that all that profit is in bond notes(fake money)

  19. Comment…hw can bsn ppl trust ed when he failed to solve cash crisis ,he must fire mangudya and chinamasa and employ better ppl with new ideas ,if he failed to address cash problem he must know that he will lose election bcz ppl need cash to easy their bsn ,why can’t he support cryptocurrences and adopt the rand or even print more bond notes rather than to continue suffering

  20. Comment…let the will of god prevail

  21. If i may know ,how will Chamisa solve the so called cash crisis?

    1. you don’t need to be told, just vote for him then you shall see???

  22. Ten fold increase in vendors , how can bus. Industry recover zimbo,s wake up

  23. Zimbabwe is so full of useless idiots who does not want change to come in zimbabwe because the small monies they get from being a zanu pf partisan is equally enough to feed their already suffering families and they don’t care about those that do not have food on the table. They are keeping on championing for zanu pf’s cause of keeping on destroying zimbabwe and they think zanu pf is from untouchable. The founder member,Ndabaningi Sithole and others as well as Joshua Nkomo have since all come and go because everything on earth is not permanent you mindless and heartless ZANUS.

  24. Business confidence and cash shortages has EVERYTHING to do with ED/ZANU PF and NOTHING to do with Chamisa or Newsday reporting! The situation is what it is and only one party is to blame.
    Meanwhile the have paid MILLIONS for new planes that are sitting on the tarmac – money would have been better spent for businesses to access forex funds.
    My bet is that many ZANU PF crooks are busy syphoning off as much cash as they can before elections !

  25. Definitely Macmargs, i also this as true because most money changers are backed by these murderous.

  26. Who said cash shortages have something to do with Government when the very people who saying that are hoarding cash in their homes hoping that one day people may stop voting for ED.Nonsense!Neither you can change the situation.

  27. Only people of little minds thot that Mnangagwa was going to bring change,the man has no plan.Just do him a favour and vote him out.POLITICS DETERMINE WHERE YOU ARE TODAY SO MAKESURE YOU CHOOSE PEOPLE WHO PUT IDEAS IN MOTION NOT JUST SHOUT…….

  28. Change is all that we need.

  29. What sort of putting ideas in motion when a prospective national leader sugests he be allowed to enjoy unprotected sex with each and everyone of tens of thousands of other peoples wives and have children with each one to prove that he is a capable head of state.

  30. Tuma news paper twe MDC tunongo vukura… Business community ipi yamukutaura

  31. Comment…ed hapana chinozikanwa

  32. ED vanogwara.Miromo kutsvuka kudai kunge munhu azora lip-stick.Kuvhotera mugwere akadai kutambisa nguva.

  33. Luck man champs

    I wonder why people say ED is going to change this economy to good when for the past six months, he has shown us that he is a failure. What ZANU people think is that we are fools and we do not have eyes to see. The drunk MUKUPE and his corrupt chinamasa has no capacity and capability to run the financial sector. You can’t continue to give us unfulfilled promises for the sake of our vote when you know that you have nothing to offer

  34. Luck man champs

    I wonder why people say ED is going to change this economy to good when for the past six months, he has shown us that he is a failure. What ZANU people think is that we are fools and we do not have eyes to see. The drunk MUKUPE and his corrupt chinamasa has no capacity and capability to run the financial sector. You can’t continue to give us unfulfilled promises for the sake of our vote when you know that you have nothing to offer.

  35. Luck man champs

    After all that you ZANU people are saying, can you tell us. Has our economy improved?

    1. an economy that was closed for business for the past 18yrs cant be resuscitated within 6month afterall what brings foreign currency

  36. What a badly written article full of bad grammer and bad spelling! REALLY!!!

  37. The headline is misleading, it says ‘business loses confidence in Mnangagwa’. Nowhere else in that article can they quote anyone saying they have lost confidence in Mnangangwa. The article is very clear that the source of lack of confidence in forex.

  38. What can one expect when there is a parallel economy where money that should be in the banks for ready access by the public is in the hands of speculators on the streets? ED’s economic miracle is actually a huge fake. Brace for more of the same misery that transpired under the regime of deposed tyrant RG Mugabe.

  39. It’s “grammar.”

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