The local business sector is pessimistic of prospects in the New Year amid fears of a deteriorating macro-economic environment and the challenges brought by new COVID-19 waves, the Zimbabwe National Chamber of Commerce (ZNCC) Inaugural State of Industry and Commerce Survey 2021 shows.
The findings show that businesses found the year 2021 better than 2020 in terms of operating and profitability following the relaxation of COVID-19 restrictions.
However, small businesses are more pessimistic than large-sized businesses.
According to the survey, small firms rated the (Equality, Diversity and Inclusion) EDI at -32.5 percent than medium firms with an EDI of -8.3 percent.
ZNCC found that 27.4% of respondents expect the country’s economic situation to be worse in 2022 whereas 24.7% expect it to be better.
“The pessimism among small and medium sized may be explained by the fact that they may be more vulnerable to the obtaining macro-economic and COVID-19 related challenges compared to large firms,” reads the report.
“Small businesses, businesses in the manufacturing, wholesale and retailing sectors and businesses in Harare, Bulawayo, Matebeleland and Manicaland provinces expect the 2022 economic situation to be worse than 2021.”
Negative business sentiment was also attributed to the election campaign expected to take place in 2022 ahead of the general elections in 2023.
In previous years, government spending increased and to meet these costs authorities would print money which created inflation.
Despite the RBZ governor, Dr John Mangudya recently assuring the nation that the Bank will not go the same route, there is however a great deal of mistrust by Zimbabweans.
To worsen matters is the assumption by the businesses that they ar5e being over taxed.
In a recent 2022 National Budget review, businesses wanted the 2 percent intermediated money transfer tax removed or be made deductible describing it as a double tax.
