The deterrent effect Every other sector of the economy has been damaged, too. Manufacturing output is at its lowest level for 15 years, according to a report published by Standard Chartered, a British bank. Workers arrive late because their buses have no fuel. Firms employ full-time staff to queue for petrol. Lack of foreign currency makes it hard to import capital goods and spare parts.
Taxes are punitive, and corruption adds to the burden.
If they see you have something, they try to take it. Surgimed, a maker and distributor of medical equipment in Harare, used to supply public hospitals, but Danny Meyer, its managing director, grew frustrated with crooked tendering procedures and late payments. The government took a year and a half to pay us. From then on, we stopped dealing with the government. Zimbabwe has sizeable deposits of gold, coal and base metals.