Zimbabwe Economic Crisis; Beer One Per Customer – Things Are Very,Very Bad

Image result for zimbabwe economic crisisZimbabwe economic crisis – Photos show how bad it really is

New Hyperinflation Index (HHIZ) Puts Zimbabwe Inflation at 89.7 Sextillion Percent. Zimbabwe is the first country in the 21st century to hyperinflate. In February 2007, Zimbabwe’s inflation rate topped 50% per month, the minimum rate required to qualify as a hyperinflation (50% per month is equal to a 12,875% per year)
Zimbabwe is facing its worst economic crisis in a decade, with prices soaring, limits on bread purchases, and long queues for fuel.

Zimbabwe economic crisis – Photos show how bad it really is

This followed Finance Minister Mthuli Ncube’s decision to introduce a tax increase on money transfers last week to try and stabilise the government’s finances.

The announcement triggered a rise in basic-commodity prices, stoking fears of an inflationary spiral and leading to long queues forming at petrol stations.

Zimbabwe Inflation Rate  2009-2018 

The inflation rate in Zimbabwe rose to 4.83 percent year-on-year in August 2018 from 4.29 percent in the prior month. It was the highest inflation rate since December 2011, mainly as prices advanced faster for food & non-alcoholic beverages (7.5 percent vs 6.3 percent in July). On a monthly basis, consumer prices went up 0.40 percent, following a 0.98 percent increase in the previous month. Inflation Rate in Zimbabwe averaged 1.08 percent from 2009 until 2018, reaching an all time high of 5.30 percent in May of 2010 and a record low of -7.50 percent in December of 2009.Zimbabwe Inflation Rate

Zimbabwe Inflation Rate

In Zimbabwe, the inflation rate measures a broad rise or fall in prices that consumers pay for a standard basket of goods. This page provides the latest reported value for – Zimbabwe Inflation Rate – plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news. Zimbabwe Inflation Rate – actual data, historical chart and calendar of releases – was last updated on October of 2018.

Many shops, under pressure from the government, are restricting customers’ purchases to prevent hoarding.

Others have gone further: Yum! Brands Inc. temporarily shut some of its KFC outlets this week, saying it couldn’t find enough dollars to pay suppliers.

On Thursday, police arrested and beat two leaders of the country’s main trade union at protests over the increasing cost of living, the labor group said in a statement.

The country’s quasi-currency, known as bond notes (introduced two years ago and were meant to represent the value of one dollar), have plunged in value.

It now takes 4.3 of them to buy one U.S. dollar – the weakest exchange rate on record, according to the Zim Dollar Index. In early September, the rate was 1.75.

Some businesses have now stopped accepting bonds notes or electronic payments – which are even less valuable than the notes – altogether, and will only take hard cash.

Zimbabwe, having scrapped its own worthless Zimbabwe dollar to end 500 billion-percent inflation in 2009, accepts them and the US dollar, Euro and rand, among others, as legal tender.Image result for zimbabwe economic crisis

Photos tell the story

Many Zimbabweans have posted photos to social media to show how bad the situation has become in the country.

CRIMSON TAZVINZWA – How Fleeing Zimbabwe Saved My Life And For Those Close To Me … I Don’t Speak To Them Often – I Don’t Want Them To Be Stitched-up. ‘Let It Be’ Jamal Khashoggi. You’re Not Alone Mate!

DR. KELLY, THE BRITISH NUCLEAR WEAPONS EXPERT & PHYSICIST DIED A MYSTERIOUS DEATH; IT MAY NOT HAVE BEEN MYSTERIOUS AT ALL … HE DIED!!!

David Kelly 2000s.jpg
Screenshot of David Kelly, Welsh scientist and authority on biological warfare

|CRIMSON TAZVINZWA, AIWA! NO!|“No time to say Good Bye to your lot in the villages including your venerable grandfather Mr. HLUPO Nyathi MAKONI (The Buffalo) in 2000! There are many of them still lying around … the Nyathis I mean. He is gone now. God bless His Soul. The man who sold one of the ‘best and fattest oxen’ in the village so I went to school; (but for me to become a journalist instead.  Aah!’. Mum: Modesta Makoni Nyathi (Buffalo)Tazvinzwa went to BE with the Lord 7 July 2018 – YOU DIED in some hospital in Botswana for Zimbabwe has NO CREDIBLE left.

Image result for crimson tazvinzwa
Crimson Tazvinzwa

You’re not alone though CRIMSON; … You have not been back to Zimbabwe since then; people say ‘You’re now on British Passport’ – it’s OK – I hope you now see how it’s not OK.

“Just go!, My uncle Joseph Makoni Nyathi whom I had not seen for ages (20- years plus then …then) said. He was trembling so was I. That was it! That was at Harare Road Port! “Africa Unit Square” in Harare – The Freedom Corner. Jan Von Ovangelle, Hilde (vana), Julliet Masama and Chritospher Muchabayiwa – Thomas mapfumo’ bass guitarist);  were all there but no mbiras/xylophones or drums aah boys and girls –  to see me off to oblivion. Except it never had to be!

I have lived in a cycle of bad and good; and where almost to ‘exact calculations‘ bad happens first; and in a very BAD way.

Getting on a connecting coach at Harare Road Port for Johannesburg South Africa and then  connecting flight to Zurich, Switzerland. Where I was met by Nathalie Oestreicher, Kaspar Scheidegger, Claudia Frey and the whole shebang! Kaspar’s mum, I don’t remember the name. Oh dear! She paid 160.000 Swiss franks for my indemnity for when I do some stupid thing as breaking someone’s window by mistake or my lawn overgrew onto someone else’s yard. Yes! You get arrested for that in Switzerland. Scary! But sobering. She did pay that amount but I also I never broke a thing nor did I whack a fly in Switzerland.

For then I couldn’t fly straight from Harare. Imagine! iT WOULD HAVE BEEN OBVIOUS. And easily caught. At that … Poor.

It was illegal for the likes of me.

That would have been fatal.

I packed what I could and burnt what I could at 78 Lomagundi Road, Malborough; Harare. Jan Ovangelle and Julliet Masama my Belgian housemates would bear wetness to this.Map of A1, Harare, Zimbabwe Most importantly my ‘documents’. Nobody asked me to; but I thought it was the most importnat thing to do – IDENTITY. I made it to Suisse unscathed; escaped with a a few bumps on my head and face – historical, of course; that’s another story for another month … ; which even up to now in my naivety would not call for torcher – few ‘bumps on my head’ incurred doing what I love doing –  reading, listening, observing, talking to real people, listening and writing, and commenting – not even writing news as it were and as it happens; imagine how would that have been – news synonymous with event/occurrence or as it happens; more controversial – spend most of the time in court than necessary; than being in the field – documentary is my hiding spot. Forget about my childhood dream of ‘becoming a bus driver or an assistant bus driver. My uncle always addressed me as ‘Teacher’ even before I went to school – his argument: ‘I explained things too much … in graphic details; that was the thing for me … never became a DRIVER anyway which ends well; here I am, a journalist and trainer; whom at that most people struggle to understand; let alone fathom – me neither; don’t understand myself; there were just scraps!

Journalism is DIFFICULT for you’re an enemy of ALL including your FAMILY. Surely it shouldn’t be!

Let me say now and for all. If what happened to Washington Post Journalist Jamal happens to me … that would be the end of the world for such things don’t happen in England. Magna Carta!

I have been in my somnambulism … not at all!

Zimbabwe MDC President Chamisa: “I am ready to lead Zimbabwe out of crisis.”

|AIWA! NO!|As Zimbabwe’s economic crisis deepens – with critical drugs, fuel and wheat in short supply – the opposition MDC Alliance president Nelson Chamisa has called for a crisis meeting with President Emmerson Mnangagwa to try and bring the situation under control.
A new two percent tax on all electronic transactions announced by the Finance Minister on October 1 started a domino ramping-up of prices for goods and services across the entire economy.
A directive by the Reserve Bank to banks to separate foreign currency accounts from the local real-time gross settlement accounts has dramatically devalued the bond note, a surrogate currency in use in the country.
Rights groups are preparing to go to court to contest both policy pronouncements.

ZIMBABWE Businesses and Companies Shut Operations Due to Situation Out of Control

“I am ready to lead Zimbabwe out of crisis”, Chamisa said, “but President Emmerson Mnangagwa must come to the negotiating table and resolve all hanging political issues.”

Churches under the banner of the Zimbabwe Council of Churches (ZCC) are also leading efforts to bring Mnangagwa and Chamisa to the negotiating table to break the post-election conundrum characterised by a worsening cash crisis and escalating shortages of most basic products.

Chamisa calls for a  negotiating table with President Mnangagwa as the economy makes for a ‘run-away-horse’

Mnangagwa and Chamisa were the main contenders in the July 30 presidential poll, seen as key to pulling the southern African nation out of international isolation and launching economic recovery.

Chamisa said the economic crisis was the symptom of a crisis of legitimacy, adding it would only end when all Zimbabweans were speaking to the international community with one voice.

“This requires Mnangagwa to come to the negotiating table,” Chamisa said.

ZCC vice-president Bishop Solomon Zwana said: “Let us try to find ways to move our nation forward. Yes, there is a period of problems and there must be another period of strategising and yet another phase of moving forward and not continue to mourn without trying to look for practical ways of moving forward.”

The ZCC officials met with Chamisa at the Anglican Cathedral in Harare on Wednesday evening.

ZCC secretary-general Kenneth Mtata declined to say what the churches discussed with the MDC Alliance leader, but said they were waiting for Chamisa to sign a “document” before going on to the next stage, adding that their focus was to bring the parties to the negotiating table urgently.

Mtata said Zanu-PF party officials were aware of their meeting with Chamisa.

Amnesty International Campaign: ZIMBABWE Where is Itai Dzamara?

CRIMSON TAZVINZWA|AMNESTY INTERNATIONAL|AIWA!NO!|ITAI DZAMARA; Zimbabwean journalist, human rights and peaceful pro-democracy activist and leader of the protest group Occupy Africa Unity Square, disappeared on 9 March 2015 in Harare – to date no one knows his whereabouts and/or what happened to him.

FILE – Sheffra Dzamara, wife of activist Itai Dzamara, holds her 2-year-old daughter and speaks to The Associated Press in Harare, March 8, 2016.

Itai Dzamara had previously been targeted by state security agents, beaten, abducted and unlawfully detained. Following his disappearance, Itai Dzamara’s family made a report to the Glen Norah Police Station in Harare. Since then no meaningful investigation has taken place, as evidenced by the absence of any comprehensive reports submitted by the authorities to the courts. His whereabouts remain unknown. Dzamara is not the only one; others are unknown and many more unaccounted for.

Itai Dzamara's children take part in the commemoration march for their missing father
Itai Dzamara’s children have always taken part in his commemorations – Patson – Nehanda Radio

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His family deserves answers.  For that to happen; if you care email, call or text your local member of parliament, senate or congress or councillor requesting that the Zimbabwean government launch an investigation into Itai Dzamara’s disappearance.
EVERY LITTLE HELPS!
His Excellency, President of the Republic of Zimbabwe; Mr. Emmerson Mnangagwa: We call on you as President; Head of State and Government of Zimbabwe to direct your administration to take all measures necessary to establish the fate and whereabouts of Itai Dzamara, almost four years on no word of him.
We call on you to promptly establish a commission of inquiry into the enforced disappearance of Itai Dzamara and ensure that those suspected of criminal responsibility are held accountable in court of law; in fair trials.

The pro-democracy activist has not been accounted for since his disappearance on 9 March 2015.

  • We urge you to take all measures necessary to establish the fate and whereabouts of Itai Dzamara
  • We urge your High Office to intervene and set up an independent judge led Commission of Inquiry into the disappearance of Itai Dzamara with powers to subpoena witnesses.
  • The findings of the Commission of Inquiry must be made public and those suspected of being implicated brought to justice in fair trials. 
  • We also urge your government to establish a trust to secure the welfare and well-being of Itai’s young family; and any other victim of similar criminal acts committed  today and in the future

Zanu PF’s Molly Ndlovu Mocks Mnangagwa’s Opponents, Calls for More Women in Houses of Parliament

Honorable Molly Ndlovu, a Zanu – PF Parliamentarian  derides and challenges Mnangagwa’s opponents; appeals to the President for the  extension of parliament quota for women to bring gender parity in Parliament.


2018-09-22
Zanu PF’s Molly Ndlovu

Zanu PF’s Molly Ndlovu says President Emmerson Mnangagwa is the president of Zimbabwe and therefore anyone who does not believe in this is daydreaming. Ms. Ndlovu also urged Mnangagwa to ensure that the parliamentary quota system for women is extended.

Zimbabwe Is Staring Down The Barrel, Needs Currency Reforms Urgently

This is the catch-22 position in which Zimbabwe finds itself.  Can it wait 2 years or more to meet President Mnangagwa’s economic fundamentals before abandoning the unsustainable dollar parity, or are the fundamentals unreachable without a competitive exchange rate?

money

CRIMSON TAZVINZWA//Ten days ago, Zimbabwe’s new Finance Minister Mthuli Ncube was talking of abolishing bond notes and launching currency reforms before the end of the year. But on Tuesday, President Emmerson Mnangagwa ruled out any such reforms.

In his address at the opening of Parliament, President Mnangagwa reaffirmed the government’s commitment to the so-called multi-currency system or dollarization “until the current negative economic fundamentals have been addressed to give credence to the introduction of the local currency”.

The economic fundamentals he listed are the familiar ones set out repeatedly in recent years by government ministers and the central bank – a” sustainable” fiscal position, foreign currency reserves equivalent to 3 to 6 months import cover ($1.4 to $2.7 billion) and “sustainable consumer and business confidence”.

As the President spoke the premium on US dollars relative to RTGS balances or electronic money stuck in the banks, hovered close to 100% while that between Zimbabwe’s ersatz currency (bond notes) and the US dollar was 88%.

The President announced that Zimbabwe has taken on another $500 million in foreign loans to bolster the balance-of-payments, seemingly confident that a country, already in what the IMF calls “debt distress” with a debt-to-GDP ratio exceeding 100%, can weather the storm.

But the track record of emerging market governments who take on the foreign currency markets is littered with failures and it is not easy to see why Zimbabwe should be any different.

The record of macroeconomic mismanagement, including under the New Dispensation since the military coup last November, is stark. Domestic debt has escalated alarmingly; the balance-of-payments gap is widening; more and more is being borrowed offshore by private as well as official entities

In the 2018 budget presented nine months ago, the former finance minister, Patrick Chinamasa, promised to cut the budget deficit from $2.5 billion, which was hugely understated at the time to $671 million this year.

Zimbabwe President Emmerson_Mnangagwa_and_Professor Mthuli Ncube
Zimbabwe President Emmerson Mnangagwa (L) shakes hands with Finance and Economic Development Minister, Professor Mthuli Ncube, during the swearing in ceremony for Zimbabwe’s new cabinet ministers at State House, Harare, on September 10, 2018.

But just before he left office after losing his seat in the July 31 election, Chinamasa’s ministry revealed that government spending, far from being cut, had jumped 57% in the first half of the year. The deficit for the 6 months was $1.4 billion and forecasters expect it to top 3 billion – more than 16% of GDP – in 2018, especially when the extra $300 million for the 17.5% pay rise for civil servants and the 20% hike for the military and police, is taken into account.

Such profligacy hardly inspires confidence in the fiscal consolidation promised by the president and his new cabinet.

Policymakers believe that they can maintain the fiction that the local currency – electronic balances and bond notes – really does trade at par with the US dollar. In the parallel market however, the over-valued local unit is worth less than 40 cents.

The official position, set out by Mr Mnangagwa, is that this situation can be maintained until the budget deficit has been cut and foreign reserves accumulated. But given that the country is staring down the barrel at a trade deficit of well over $2.5 billion this year – it was $1.7 billion in the first 7 months of 2018 – it is going to take a long time to build up reserves of $2 billion or more.

This is the catch-22 position in which Zimbabwe finds itself.  Can it wait 2 years or more to meet President Mnangagwa’s economic fundamentals before abandoning the unsustainable dollar parity, or are the fundamentals unreachable without a competitive exchange rate?

Zimbabwe President Emmerson Mnangagwa Swears In Cabinet

  4h4 hours ago

This morning at State House, I swore in a new cabinet for the new Zimbabwe.

Though the task before us is a great one, I am confident that we have the team in place to turn our economy around and build a more prosperous & secure future for all.

Blessed be the Land of Zimbabwe!

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