Macroeconomic instability is characterized by rapid exchange rate depreciation and inflationary pressures and these are the major challenges that adversely impacted on operations of many companies this year. 

The biggest challenge for business this year in 2023 has been macroeconomic instability characterized by the rapid depreciation of the exchange rate during mid-May and June as it was quite massive and of course inflation pressures. Some of the challenges afflicting businesses were power cuts, high taxes, and declining capital. This then makes it very difficult for businesses to manage and defend their capital (net worth) in the presence of a runaway exchange rate, as naturally, businesses will end up losing capital at the same time the company will be shrinking. This will then become a real challenge and it's still a challenge currently, because the black-market rates are now around US$ 1 against ZWL$ 10,000.

Fiscal and monetary authorities have been trying to tame the runaway inflationary pressures as well as stabilize the exchange rate through various interventions including continuing with a tight monetary policy stance, and introducing the gold coins and digital tokens to no avail. Policy transformation in the business sector is a  key enabler to business elevation, considering the challenges such as power growth and infrastructure development that have been hindering progress in the business sector.

Allowing only registered and tax-compliant players to buy from the manufacturers will have serious implications on manufacturing business viability, especially due to the curtailed ability to push volumes the CZI has awarded. To push volumes manufacturers are putting in place various strategies including arrangements with pushcart vendors and selling groceries through tuck-shops.

In 2024 the Government and policymakers should be proactive and pre-occupy themselves with policies that reverse the prevailing situation.