eBusiness Weekly
Martin Kadzere
Government, labour and business are set to convene a crucial indaba next week to initiate parameters of social dialogue to tackle the country’s economic woes, Business Weekly can reveal.
Zimbabwe is currently facing economic challenges among them a crippling foreign currency shortage and rising inflation, which has eroded household spending power.
The country’s inflation hit 42,09 percent in December 2018 — the highest in 10 years while public transporters have during the past few weeks, increased fares by as much as 500 percent citing high prices of fuel, which they are buying from the black market.
This week, business came to a standstill following a national strike triggered by fuel price increase last Saturday.
The three-day strike, which ended on Wednesday turned violent as properties worth millions of dollars were destroyed. Three people, including a police officer, died during Monday’s violent demonstrations in Harare and Bulawayo, where protesters looted shops and burnt cars.
The Government has since accused some opposition parties and its allies for the violent demonstration, which has seen scores of people arrested for public violence. Some businesses, however, re-opened yesterday while some remained closed.
Social dialogue
In the face of deteriorating economic situation, the Government, business and labour will be meeting next week, under the banner of the Tripartite Negotiation Forum to come up with a framework aimed at “collectively” arresting Zimbabwe’s economic woes.
Initially, the meeting was slated for last Monday, but did not take place due to the strike.
“It is certainly going to be early or mid-next week,” Sekai Nzenza, Minister of Public Service, Labour and Social Welfare told Business Weekly in an interview.
Some economic analysts have been calling for the revival of the TNF, saying it is important to help arrest some of the economic challenges the country is going through and eliminate the mistrust, particularly between the Government and business.
For instance, the Government has on several occasions accused the business for unjustified prices increases while on the other hand, the business has blamed the policy makers for failing to provide sound policies to make their businesses thrive.
Closer collaboration
Sifelani Jabangwe, the president of the Confederation of Zimbabwe Industries said given the prevailing situation in the country, dialogue was critical.
“It is something that needs to be considered quite seriously and I am happy that the first meeting to initiate the TNF should have been held on Monday but did not happen because of the disturbances,” Jabangwe said.
“We are looking forward to it.
“We need to make sure that we are moving together so that we are not caught by surprise of certain decision that the Government might take. There is consensus that the path to economic revival is going to be painful, which require closer collaboration.”
Japhet Moyo, the secretary general for the Zimbabwe Congress of Trade Union, confirmed to local media early this week that the labour movement was preparing its submissions.
He said “unilateralism” was a challenge that could worsen the economic situation, urging the policy makers to see the value of social dialogue among economic actors.
“Like we have said before, we lack serious partnership especially on the part of the government,” he said.
Inflation spiral
Zimbabweans are facing a spike in prices of commodities following the sharp increase in fuel prices, amid fears that this could further erode consumers spending power and will result in inflation spiral. Fuel prices rose to $3,11 a litre of diesel and $3,31 for petrol from an average $1,32 and $1,38 respectively. This followed the persistent shortfall in the fuel market attributable to the increased fuel usage in the economy and compounded by rampant illegal currency and fuel trading activities. Tax rebates will, however, be extended to all registered business entities in key economic sectors to cushion them from increased fuel costs.
“Such measures without a social contract will not help at all given the level of unethical practices by local businesses and that is why a social dialogue is necessary,” said an economic analysts with a Harare-based research and advisory firm.
