Zimbabwe: Foreign traders causing cash shortagesJanuary 3, 2014 @ 3:50 am
HARARE, Zimbabwe (AP) - Zimbabwe's black empowerment agency says at least 90 percent of foreign shop owners don't have bank accounts and are hiding away money or smuggling it out of the country, worsening cash shortages in the troubled economy.
The agency's chief, Wilson Gwatiringa, said many of the foreign retailers lack proper identification documents required to open a bank account, leading to hundreds of million dollars staying out of the formal economy, state media reported Friday.
He said that "raises eyebrows" after government recently allowed foreign shop owners _ mostly Chinese and Nigerian nationals _ to continue in retail trade, a sector reserved for local blacks.
An independent financial research group last year reported that 85 percent of small businesses in the "informal economy," with a turnover of at least $7 billion, weren't paying taxes.
(Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)
A state ferry stalled off Bainbridge Island with over 400 people on board
Seismologists are detecting more earthquakes at Mount St. Helens than usual
Please login below with your Facebook, Twitter, Google+ or Disqus account. Existing MyNorthwest account holders will need to create a new Disqus account or use one of the social logins provided below. Thank you.