Zimbabwe's central bank leader says bad business choices, not the economy, hurt big stores.
The bank's head, Dr. John Mushayavanhu, made these points when he shared new money rules. He said stores can use a special bank loan meant to help them buy more goods.
Many big stores in Zimbabwe face hard times. OK Zimbabwe, the nation's biggest store chain, plans to shut some shops. Other large sellers like N. Richards and Mahomed Mussa cut back their work. Choppies Zimbabwe left the country.
People who know the business say these stores have problems inside their companies. They say store leaders spend a lot of money on nice cars and high pay. Some leaders buy land they do not need and give away money that should have stayed in the business.
Some store owners say they cannot match prices with street sellers. These small traders use U.S. dollars and do not pay taxes, which makes their goods cost less. Many goods makers are like these small traders because they pay right away in U.S. dollars.
But Dr. Mushayavanhu thinks the real trouble comes from poor business choices. "We see stores need help to buy goods. They can use our special loan. But if they keep making poor choices, they might close," he said.
The bank started these special loans last year. Banks can borrow at 20 percent interest and then lend to stores at 30 percent. This plan aims to help businesses that banks might not want to help.
The bank also changed rules about foreign money. Business people must give up more of their U.S. dollars—30 percent instead of 25 percent before. This helps ensure that the new Zimbabwe money, called ZiG, stays strong.
If business people do not need to use their ZiG right away, they can put the money in a special U.S. dollar bank account and withdraw it in ZiG when they need it.
The bank's head, Dr. John Mushayavanhu, made these points when he shared new money rules. He said stores can use a special bank loan meant to help them buy more goods.
Many big stores in Zimbabwe face hard times. OK Zimbabwe, the nation's biggest store chain, plans to shut some shops. Other large sellers like N. Richards and Mahomed Mussa cut back their work. Choppies Zimbabwe left the country.
People who know the business say these stores have problems inside their companies. They say store leaders spend a lot of money on nice cars and high pay. Some leaders buy land they do not need and give away money that should have stayed in the business.
Some store owners say they cannot match prices with street sellers. These small traders use U.S. dollars and do not pay taxes, which makes their goods cost less. Many goods makers are like these small traders because they pay right away in U.S. dollars.
But Dr. Mushayavanhu thinks the real trouble comes from poor business choices. "We see stores need help to buy goods. They can use our special loan. But if they keep making poor choices, they might close," he said.
The bank started these special loans last year. Banks can borrow at 20 percent interest and then lend to stores at 30 percent. This plan aims to help businesses that banks might not want to help.
The bank also changed rules about foreign money. Business people must give up more of their U.S. dollars—30 percent instead of 25 percent before. This helps ensure that the new Zimbabwe money, called ZiG, stays strong.
If business people do not need to use their ZiG right away, they can put the money in a special U.S. dollar bank account and withdraw it in ZiG when they need it.
