Heed CEOs’ dire warning before it’s too late

When the nation’s top business leaders collectively sound the alarm, it is not mere boardroom rhetoric—it is a crisis unfolding in real time.

The CEOs of Zimbabwe’s companies have issued a stark warning, the economy is on the brink, and without urgent government intervention, businesses will collapse under the weight of unsustainable policies.

Their concerns are not new, but what is striking is the level of urgency and the breadth of the issues they highlight. Excessive taxation, exchange rate distortions, inflation, power shortages, and a flawed de-dollarization policy are suffocating businesses. These are not abstract economic challenges, they are existential threats that determine whether companies survive or fold.

The government must act—now.

One of the most contentious issues raised by CEOs is the government’s insistence on phasing out the multi-currency system by 2030 in favor of the Zimbabwe Gold (ZIG).

Business leaders have rightly dismissed this as a gamble.

They understand that a stable currency cannot be forced into existence through government decree.

Stability is earned through sound economic fundamentals, fiscal discipline, and public confidence—none of which currently exist.

The reality is that ZIG remains too weak, too volatile, and too distrusted to serve as the backbone of Zimbabwe’s economy. Forcing businesses to rely on an unstable currency will not strengthen it, it will drive them to alternative means of survival—offshore accounts, informal trading, and capital flight. If the government does not rethink its approach, the economy will suffer irreparable damage.

Zimbabwe’s tax burden is another self-inflicted wound. With an effective tax rate exceeding 40% and over 51 different levies, businesses are drowning in regulatory costs. Instead of incentivizing growth, the tax system is punishing compliance and driving more enterprises into the informal economy.

The result? A shrinking formal sector, stagnant investment, and a government unable to collect the very revenue it desperately needs.

CEOs have made a compelling case for tax reform—simplify the system, eliminate redundant levies, and encourage compliance. The government’s refusal to address this issue will not generate more revenue, it will accelerate the exodus of businesses that can no longer afford to operate within an increasingly punitive framework.

The widening gap between the official and parallel market exchange rates is yet another sign of deep economic dysfunction. A controlled exchange rate might look good on paper, but in practice, it fuels arbitrage, distorts pricing, and erodes confidence in the financial system. Business leaders are right to demand full liberalization of the exchange rate—until Zimbabwe allows market forces to determine its currency value, distortions will persist, and the economy will remain in turmoil.

Furthermore, the call for greater autonomy for the Reserve Bank of Zimbabwe (RBZ) should not be ignored. As long as the central bank operates under political influence, monetary policy decisions will be driven by short-term political considerations rather than long-term economic stability.

The government’s failure to regulate the informal sector is another ticking time bomb. With an estimated 70% of economic activity occurring outside formal channels, Zimbabwe’s policies are effectively designed for a shrinking minority of compliant businesses. Meanwhile, smuggling and illicit financial flows continue to drain the economy of up to $1 billion annually—money that should be funding public services, infrastructure, and development.

If authorities are serious about economic recovery, they must crack down on illegal trade, strengthen border controls, and eliminate the regulatory loopholes that push businesses into the shadows. Simply increasing enforcement without addressing the root causes—high taxes, excessive bureaucracy, and economic instability—will not solve the problem.

The warning from business leaders is not an abstract policy debate—it is a final plea for action before it is too late. Zimbabwe’s economy is in freefall, and the consequences of inaction will be devastating. The government must listen, engage with the private sector, and implement urgent reforms to stabilize the economy.

If policymakers ignore these warnings, they will not just be responsible for economic mismanagement—they will be complicit in the destruction of Zimbabwe’s business sector. And when the pillars of the economy crumble, so too does the nation’s future.