Zimbabwe's foreign currency shortages are set to worsen due to the effects of the Covid-19 pandemic that has reduced exports and slowed down remittances, a leading research firm has warned.
IH Securities, in a research paper titled 'Covid-19 Equity Strategy Presentation: Accelerating existing structural fragilities', released on Friday, said critical foreign currency revenues would be lost due to value chain disruptions impacting commodity exports the mining and agriculture sectors.
IH Securities said Zimbabwe would also suffer from reduced remittances due to Covid-19.
"According to the World Bank, diaspora remittances are expected to decline by more than 20%, impacting a critical source of foreign currency and social support into the country," the research firm said.
Finance minister Mthuli Ncube introduced an $18 billion stimulus package to help businesses weather the storm during the lockdown, but IH Securities said the money was a drop in the ocean considering Zimbabwe's deep economic problems.
