Zimbabwe has been hit by an “artificial” glass shortage, with producers and retailers allegedly stockpiling glass in anticipation of a price increase.
The development threatens to hinder the recovery…
Zimbabwe has been hit by an “artificial” glass shortage, with producers and retailers allegedly stockpiling glass in anticipation of a price increase. The development threatens to hinder the recovery of the construction sector. While industry players blamed the shortage, first noted in early January, on high tariffs on imported raw materials and foreign exchange shortages, other factors were to blame for the scarcity according to a report in Zimbabwean journal The Property Gazette. Project managers told the property weekly that restrictions in glass supply were causing costly delays to construction projects and refurbishments. Manufacturers and retailers traditionally enjoy a price rise early in the year, hence the temptation to stockpile in order to take advantage of anticipated adjustments. The construction and property sectors in Zimbabwe employ over 20,000 workers. At its peak, the construction industry alone employed about 100,000 workers, but has lost 85,000 jobs because of the five-year recession that has destroyed Zimbabwe“s once robust economy. The government of President Robert Mugabe is blamed for economic mismanagment, a charge rejected by the 80-year-old leader, who says the country is a victim of Western machinations to effect a regime change as punishment for the expropriation of white commercial farmland to resettle landless blacks. “Generally, during the festive season period, most companies deliberately remove the products off the shelves so that when they open, they would always increase prices … Most products were increased by more than 100% in January,” said an industry source who wished to remain anonymous.