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More Zimbabwe Workers Set to Lose Jobs as Economy Declines

Zimbabwe pines its hopes on the mining sector to revive the economy.

The Zimbabwe Congress of Trade Unions (ZCTU) says many companies are unlikely to open after the festive holiday as the World Bank predicts a depressed economic outlook for the country.

ZCTU president George Nkiwane told VOA Studio 7 the situation is bad in the country as the ruling Zanu PF party is concentrating on settling internal scores while the economy is declining at a fast pace.

Nkiwane said the labor body is currently conducting consultations at district level in order to map the way forward as it fears that some companies will not open after the festive season, which ended Thursday.

Over 1,000 workers lost their jobs in the banking sector alone last year. Thousands of people also lost their jobs in other sectors.

In its latest Global Economic Outlook Report, the World Bank predicts that the Zimbabwe economy will grow by 3.2 percent in 2015.

For perspective, reporter Tatenda Gumbo turned to Prosper Chitambara of the Labor and Economic Development Research Institute of Zimbabwe and Peter Mutasa of the Zimbabwe Banks and Allied Workers’ Union. Mutasa says when the financial system suffers it affects all sectors of the economy.