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Zim Businesses Feel The Pinch Of Cash Shortages - Poll

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Harare - Cash challenges have had a significant impact on Zimbabwean businesses, a KPMG poll found. This comes as cash circulation in the formal sector has reduced to 1.4% of total deposits in the banking sector, according Reserve Bank of Zimbabwe deputy governor Dr Kupukile Mlambo.  

During KPMG’s Audit Committee Forum held on Thursday, a quick poll of more than 100 business executives was conducted. Seventy-six percent of the participants said their businesses have experienced a significant negative impact as a result of cash shortages.

Of these, 17% said the impact has been moderate, 2% felt no impact, and 6% experienced a positive impact. 

Mlambo said the fact that Old Mutual's share price on the Zimbabwe Stock Exchange is trading at a 55% premium to its price on the JSE is indicative of the overvalued US dollar in the country.

Zimbabwe is experiencing one of its worst cash and liquidity crises since dollarisation in 2009. 

Nostro accounts for most local banks have been depleted, and the waiting list of foreign suppliers still to be paid is growing by the day.

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