Zim job losses mount as economy falters

Harare - A total of 7 000 employees in Zimbabwe lost their jobs through retrenchments in 2014 as the country’s economy continues to weaken.

According to figures from the National Social Security Authority (NSSA), Zimbabwe’s statutory corporate body responsible for all formal employees, at least 52 companies carried out retrenchments in 2014, resulting in 7 000 employees losing their jobs.

The NSSA said the continued company closures impact negatively on its performance, as it is tasked to collect contributions from all employees in the country.

The authority noted that many employers have reduced employment - to the extent that 52% of the 27 000 registered employers on its database employ between 1 to 5 people.

Pensions likely to be affected

The NSSA said the developments will likely affect pension benefits of employees. It indirectly admitted that the Indigenisation Act is not helping in attracting investors.

READ: Zim needs clarity on indigenisation laws

“Review of certain economic policies, especially the Indigenisation and Empowerment Policy, will improve the manner in which business is done and attract investors,” said the NSSA.