RioZim, a Zimbabwean gold producer, suspended production at three major mines. This left the jobs of more than two-thousand Zimbabweans hanging in balance. This is a big blow to the Zimbabwean economy as RioZim was the third largest largest gold producer in Zimbabwe and in turn a major employer of Zimbabwean people.
RioZim has cited that foreign currency shortages have caused them to temporarily halt gold production. They are seeking legal action against the Reserve Bank of Zimbabwe (RBZ).
In a region where poverty is the major issue, this is a major blow. Although two-thousand employees may not seem like a lot, it is. This is because the employees of RioZim, just like any other company, spend their wages to buy goods and services and in turn this helps to fuel the economy.
In an economy that is characterized by instability, this is a prime example of what an unstable economy can do to the job market of an economy. This article focuses solely on one company but I am sure that there are many other companies in Zimbabwe currently going through the same thing.
The root of all this is Zimbabwe inability to access foreign currency. This has led to major prices increases and has caused a lower demand for the gold that they are producing. The article state that RioZim prices have risen to be more than three-hundred percent greater than their international competitors.
Part of the reason countries tend to struggle economically is because of their lack of ability of getting goods to foreign market and sustaining prices so that countries in the international community will buy from them. This is article is just one example of many and is a reason why some many countries, especially in historically poverty-stricken areas of around the globe, continually struggle economically