The day I missed being a quadrillionaire

30 07 2008

It was even on BBC radio this evening; Zimbabwe has knocked 10 zeros off its currency. As I was due to go and collect fictitious wages from the bank (I’d posted the withdrawl application on Monday) I thought it would be a good idea to find out what they knew as what we are told on local radio and what the bank are told don’t always tie up. Well, the 10 zeros (didn’t anyone tell them that currency works in thousands?) disappearing was true enough but what I didn’t know was that there is a plan afoot to use the old “real” currency until the new (without the 0’s) gets printed (probably by the Chinese as the German company that used to do it has come under pressure to stop). Colin, my bank manager, told me that today someone had come in with a box of the old currency (it pre-dates the current bearer cheques) for disposal. He suggested that he keep it. Nobody is really sure what this all means but it is possible that the old money that I have lying in my drawer is worth more than then 100 billion notes (which are now worth 1$) that I collected from the bank this afternoon. It is possible that there are people out there in the rural areas who kept hold of the old money because they missed the deadline to hand it in who are now very wealthy! I see too possible consequences; fed up with this confusion those who can are going to use a meaningful currency and in solving the problem of the zeros they are going to drive inflation to the point where today’s multimillion percent inflation will soon be a fond memory!

This morning an export company approached me to grow some seedlings urgently. Normally I’d insist on a 50% deposit up front but being something of an emergency I allowed them to bring the seed and we’d settle later. This lot are not the easiest bunch to deal with but I sensed a bit of an advantage. My book keeper knows the financial director so getting his personal number was easy. I gave him a call and mentioned that I’d had to print out the Zim dollar proforma on a laser printer that could accommodate all the zeros (it came to 88 quadrillion – 88,000,000,000,000,000) so he saw the reasoning to go for the US dollar payment of 816. It’s an offshore transfer but that’s a close second to getting it here. So I missed out on being a quadrillionaire – but just give it a few months!





We have no shovels…

29 07 2008

On Sunday I was having lunch with Peter at his sister’s place in Mount Pleasant. I used to work with Peter in my Hortico days and he was en route to Kenya and Liberia from Australia for some consulting work so it was a chance for a visit to see his family still in Harare. Now Peter is something of a story teller so when he mentioned that his sister Gail had gone to a funeral the previous day and was asked to take along a shovel as the grave diggers had none, I was more than a little sceptical. Gail assured me it was true. The Catholic cemetery just outside town where the funeral was held indeed had no grave digging implements so a friend texted her beforehand and asked if she could bring along a shovel. So they had to wait while the gravediggers dug the hole. Ready mixed concrete was then poured in a slab over the grave (when closed) so that the coffin could not be stolen and sold for reuse. I kid you not.





Connectivity

25 07 2008

It’s like – wow! Well sort of, until I consider the snail pace of the page loading. I suppose I do have to get a little bit excited about being able to connect to the internet at home again. After all it has been 6 months so I guess I can put up with pages that take 5 minutes to load and some that don’t load at all. For a while at least the novelty will last.
There can’t be too many places in the world where wages are determined by how much is in the bank account but that’s how I do it. There were mutterings on Wednesday when I paid wages that some were going to refuse to take their wages. I said fine, if you don’t want it, I can definitely find something to spend it on. That settled it; it was all well gone by Thursday and today I got an across the board request for loans to buy maize meal that was apparently on offer in the area. Tricky one that; we have very little in the way of cash coming in and I am only allowed to draw 100 billion a day in cash. I should put that in perspective; 350 billion will buy a Coke. There is a way around it though. I found out that I CAN apply to draw wages on a weekly basis provided I submit the usual list of people with ID numbers (a fair few of which I concocted) and the wages they are to draw first. Yes, you guessed it; I do double the wages to cover “eventualities”. There have to be some advantages to having to put up with a thoroughly unsophisticated labour force! Apparently the Reserve Bank is reviewing the limit on cash withdrawals but until then I just have to fiddle the system a bit.

I had to back-track on my policy of only accepting cash. I prefer to call it “business flexibility” of course but I’d not really appreciated the meaning of “cash flow” until I had none. Even if we are losing money (definitely) it is still necessary to have money in the bank for some purposes. We do charge a 100% premium on cheques, which is VERY cheap by Harare standards, but there has been a veritable deluge of paper money coming in. It’s not worth very much but it is nice to have.





We’ll wait and see

21 07 2008

My foreman looked sceptical. I’d just asked him what he thought of the latest political developments i.e. the agreement to be signed in Joburg agreeing to talk between Mugabe and Tsvangirai (and their political parties). He seemed to think that most people did not really see what it was all about. I explained that according to commentators on the BBC that Bob was probably looking for a secure escape route (what, in AFRICA?) possibly as a figurehead president with Morgan as the power holding prime-minister. One has to bear in mind that Bob has to negotiate from a position of strength. He still looked sceptical.

But there is some encouraging news about if you look hard enough. My landlord’s wife, Gill, told me this morning that they’d been to Imire Game Park near Marondera over the weekend to see their son who is managing the game and lodge. A power that is had been recently to assure them that the negative publicity about Imire (slaughtered rhinos etc.) had to stop and actually saw off some “war vets” (hired thugs) whilst he was there. By all accounts the training camps for the youths who terrorized the rural areas before the last election have also been disbanded.

I must admit that this is the furthest down a negotiated settlement road that we have ever been but we have seen our hopes dashed too many times to get excited just yet. We’ll just have to wait and see.





Supply and Demand

17 07 2008

Those of us who do not trade in essentials often complain that we are getting ripped off by those who do. It is true; not only do we have the world’s highest inflation in local money we also have the highest inflation in a convertible currency, in this case US dollars.

I have just been around to get my weekly milk supply and was about to get on my high horse about how Helen could hike her US dollar price by 50% while her Zimbabwe dollar price was not even related (astronomical to try and force people to use the green backs) only to find that the milk, which is sold on a first come first served basis, was finished. Oh well, she has hiked the prices because she can. So, in keeping with the trend I have had to increase my prices (we use a US dollar baseline) though 16% is hardly “hiking”. But I don’t have a queue of people waiting outside the gate to buy my seedlings!

I was chatting to a customer on Tuesday who turned out to be the re-insurance manager for a local bank. He was saying that he made more money out of his greenhouse tomato crop than he got paid as a salary which does not say much for his salary. Complaining about and discussing the financial situation he was firmly of the belief that we really are now in the “endgame”. He did say that the government was going to go after the bigger companies in the “Indigenization Programme” whereby indigenous Zimbabweans (i.e. not whites) must hold at least 51% of the shares and fully aware that a political deal is in the offing they are not going to hold back. My friend Dave called around this morning and mentioned that Bob has been speaking at various rallies urging people to take now as once he is gone they will not have the opportunity. Dave speaks good Shona so he is likely to be in the know. I said to my customer that I rather hoped someone would come and take my company. He laughed and said that the likes of Unilever Zimbabwe were more likely recipients of the unwanted attention!

Tuesday, July 14th was Jenni’s day. She featured on the Dog-a-Day Calendar published by Workman in the USA. I’d sent her photo in last year and was rather chuffed when it appeared. www.pageaday.com DOGS-8243259772





Tightening the belt

12 07 2008

It’s been going on for some time now but this month I finally had to face up to not being able to afford my gym subscription. Well, I suppose I could afford it but it is no longer essential and what little real money I have must go into survival. I guess other people have different ideas of what essential means but for me alcohol and dinners out fell by the wayside some time ago. The cash flow at work is now a trickle that vanishes as soon as it appears. I guess we are at about 40% capacity which is not great but we have been there before. The difference then was that the cash had at least some value so was around a fair bit longer to allow it to be used a bit more successfully.

I have spent most of this week adapting the software that I wrote to take any currency. Yes, I am being a bit optimistic but not without cause. Real money is starting to trickle in and a few days ago I actually had to trade some to get some Zimbabwe dollars. The second-hand peat moss that we use as a medium for the seedlings is a by-product from a farm that exports African violets bare-rooted around the world and they wanted Zim cash to pay wages. I suppose it is preferable for them to sell a waste product for local money than to charge real money for it then have to find the local. Anyway, it did not hurt too much as I had bought the real money for local cash a while back so it had maintained it’s value and I still had a bit left over. Curiously local dollars are in demand at the moment as they are in short supply and the price has slipped a bit. I don’t know if the government printing presses are running slow these days or they are just not keeping up with inflation (not that they ever have, they just might have slipped a bit further than usual).

At least I don’t have to pay for the satellite radio station that is playing in the background as I write this. I don’t get all the stations of course but I do get the ones that interest me; BBC and Maestro (which is classical music). There have been two announcements of interest this morning; the veto by the Russians and Chinese of the Security Council resolution on Zimbabwe and Nelson Mandela’s 90th birthday. The resolution was probably not of great influence either way but the gloating of the Zimbabwe government will be nauseating.

I have never really understood why so many people get dewy-eyed whenever Nelson Mandela is mentioned. What did the man actually DO except go around and be Nelson Mandela?  He has been disappointingly quiet on the Zimbabwe situation and I have just heard something about him being photographed with a whole lot of children. Yawn. Desmond Tutu – now there’s a man who has got guts and drive! He’s sounding a bit old these days which I guess is not surprising as he must be getting on a bit. I heard him talk way back when I was at university and the man was gifted and driven.

Essential – my internet connection which I can still pay in local currency even though I have had to deposit cash into my bank account to do so (horrors, you NEVER do that!) and dog food. The latter is still a problem.





Wasting time (and money)

3 07 2008

I have just, come from the bank where I deposited 660 billion (about USD20) of the local dollars in mostly 50 million dollar notes. It took about 3/4 hour and the biggest challenge for me was staying awake. OK, so the teller was not the fastest around but I can not even guess how much it cost the bank to count the money; certainly less than its face value. Feeling in need of a cup of coffee and some sustenance I wandered around the corner to my local WiFi cafe that actually does good coffee and muffins too and anyway, I needed to check on the email. Walking past a notice board advertising air fares to London (and other places) I noticed that a business class fare to the UK was all of 15 trillion. I will save you the bother; it’s less than USD500! The catch of course is that the airline is Air Zimbabwe and is not overly reliable but my aunt recently flew to the UK and she said business class was fine but definitely don’t fly economy! I commented on the price to the proprietor of the cafe and he said just wait until Monday when it will be the equivalent of 200 US dollars as they are always slow to update their prices. A plan is forming here…





Threats and nonsense

1 07 2008

A lot of places closed this last weekend over the “voting” period. So I am catching up now with all the e things.

Last week I was cycling to work with Jenni to do some repairs on my truck when a police Landrover came the other way. He pulled onto the other side of the road as Jenni has no traffice sense at all. Nice person I thought. Then as he went past the driver shouted: “I will arrest you tomorrow”. Not so nice. I had never seen him before and he did not use my name so I took it as just being harassment. I was not arrested the next day.

The ruling party went to extraordinary lengths in the campaign run up. I guess a lot of it was on TV but I used the plug off mine for better things some years back. They also had published a very glossy brochure on 100 reasons to vote for Bob. I won’t bother reproducing it here but it was so incredibly childish and loaded with contradictions that even the most ill informed would have picked up. The really curious thing about it was that it was entirely in English, a language that is well understood in Zim but is certainly not the mother tongue of the targeted voters!

I was at friends for supper last night. Being a bachelor it is always great to be invited out for food. The best part of the evening was seeing Bob getting rattled at the AU summit in Egypt. Not his usual cocky self at all. It was also interesting that the South Africans who are usually very pro him are calling for a “transitional government”. Would it be premature to start hoping?





Tense Times

1 07 2008

OK, I admit it, I have made a list of what to take if I have to make an emergency get-away. It does depend on me making the decision of when to go (rather than it being made for me) and assumes that I will be driving. Most friends with children are getting out of the country until things cool down a bit. Everyone is feeling rather insecure, but as I remarked to a friend it’s very difficult to know when you are being silly by staying and when you are being unnecessarily panicky. It is not as though I have nothing to lose by going; on the contrary, my business is actually surviving which by Zimbabwe standards is good though we can no longer say that we are here for the lifestyle which really was good.

There is also the issue of where to go and what you are prepared to leave behind. Obviously I want Jenni to come with me so that more or less precludes flying anywhere unless I send her on ahead. So if I want to take her I will have to drive and there is no guarantee that the roads will be safe if I wait until the last moment. On top of that there is still an air of “normality”; no burning tyres or chanting crowds, just the endless ZANU-PF “meetings” but quite why they need those now I don’t know. Apparently they are now saying that they will take people to vote farm by farm so that they can check on how they vote! I wonder what it’s like to live in a normal country where all you have to worry about is mortgage repayments and where to spend the summer holidays?

Chatting to my foreman this afternoon he was of the opinion that just about anything to stop the violence was a good idea. This of course carries the risk that the perpetrators are now of the opinion that intimidation works (which it has done) and can be resorted to at any time. He, the foreman, went to a rally on the weekend where they were instructed to write down the serial number of their voting slip and then would have to report to the local ZANU-PF Youth League (hired thugs) where it would be recorded so that they could check up on whom had voted and how.

On my list of things to take under “photo albums” is “stamp albums”. I have not collected stamps since I was a child so this actually refers mostly to my father’s collection made when he was a child. Some of the stamps are in excess of 120 years old though not, unfortunately, particularly valuable. I have just been sorting through my collection of First Day Covers, bought largely by my mother when I was at university. The earliest though is dated 2nd July 1953 in commemoration of the Royal Tour of Southern Rhodesia (as Zimbabwe was then) and stamped on the Royal Train the single stamp is valued at 6d. When we metricated in the early 1970’s (I forget when but I think it may have been 1971) 6d became 5c and must have been quite a sum because I DO remember being allowed to spend 10c a week at the tuck shop (I was a border all my school life) and LOTS of sweets could be bought for that! In 1980 there was still a 1c stamp on the First Definitive Issue which was basically the Rhodesian stamps re-issued with Zimbabwe printed on them. Thereafter First Day Covers did not have less than 9c. The Second Definitive Issue in 1985 also had a 1c stamp though I cannot think it could have been used very much. My mother died in 1992 and the last First Day cover I have is dated 1994 on which the smallest denomination is 35c. I lost interest after that even though I occasionally spot the posters for new issues in the post office. They are inevitably for issue dates that have past because who goes into a post office these days? I don’t have much interest either in themes such as “Heroes of the Zimbabwe Liberation”. I used to use stamps to send out customer’s statements but we are cash only now and anyway, by the time I would be able to get the money back it would be less than the value of the stamp. Oh, and they don’t even bother putting the value on the stamp; there is just a “Z” and they charge whatever the current rate happens to be.

On the lighter side; a customer came in this morning to collect an order but could not pay cash as we require (cheques take too long to clear and devalue some 50% before we can use them). I said that I would take any asset as payment. He said what about a pig? I did not really want a live one. Ok, he would slaughter it then. So we struck a deal; 30kg of pork hind quarter for his order!

Chatting to a friend’s wife last night she mentioned that she’d been to a supermarket for some basic shopping and had to wait 2 hours to pay. The hold up was that no-one had cash so were using their debit cards. But the machine could only deduct 100 million dollars at a time so multiple swipes per purchase were necessary. The debit card print out of her purchase for six items ended up 7.5m long!





The art of intimidation

17 06 2008

The ZANU-PF “meeting” I mentioned in the last post was real enough – it was still going on when I went home at 5 in the evening. I was not tempted to stop off and catch up but I did quiz my maid in the morning. It was all the usual fare; we will kill anyone who votes for the opposition and a weapon was brandished for good effect. Why it took five and a half hours to get the message across also speaks volumes. They are lying of course as they cannot know who votes for whom or where they will poll but the effect was there as now most people will not vote at all.

When the farm invasions were on numerous friends and acquaintances got death threats. They were probably bogus but can one afford not to take them seriously? The intimidators last week were dealing with a less sophisticated audience but the principle was the same; keep them guessing and they will err on the side of caution.  The art lies in just taking it to the line of credibility. I actually don’t think the outcome will be much influenced anyway. There is only one result that I can see – the ruling party has not come this far just to give in quietly and accept a result that they don’t want.

I see it this way:

  1. Mugabe wins outright.
  2. They rig the results to win.
  3. They lose and ignore the results.

1,681,835,527,909.52 – that’s the closing balance on my corporate account yesterday. I have never I think been so wealthy or poor at the same time. As to why they have kept the cents is beyond me; I am now rounding all my invoices UP eight digits LEFT of the decimal and busy modifying my software to cope with real money. Hey, I mean, I actually took in USD25.00 in sales last week!

I hear more and more that people are just offering to pay in real money as the hassle of getting anything with Zimbabwe dollars escalates almost as fast as the inflation. I make a point not to solicit, though if I am stung it probably won’t make a lot of difference (it is still illegal to accept foreign currency as payment). I wait for the customer to offer.