Zimbabwe is Currently Experiencing a De-Industrialization Trend. Discussing the Causes of De-Industrialization in Zimbabwe and Offering Suggestion on How the Country Can Reverse the Trend

Abstract

This paper seeks to highlight deindustrialization trend in Zimbabwe, discussion on the causes of deindustrialization in Zimbabwe and offering suggestion on how the country can reverse the trend. Companies in Zimbabwe have been closing down due to poor economic policies set by the government of Zimbabwe, political instability, unbalanced productivity growth, growing affluence among consumers, natural attrition, liquidity crunch, low domestic demand, lack or unavailability of adequate funding, excessively high and unsustainable wages, a fall in demand as indicated by the fall in output, an unfavorable highly taxing and inconsiderate tax regime, globalization, hyperinflation, obsolete machinery, massive power outages decline in capacity utilization partly to erratic power supply, influx of cheap imported goods, antiquated machinery and high labour costs.