The metaphor

2 02 2019

Looking back where we’ve been?

This photograph is perhaps a metaphor for the future of Zimbabwe, heading back into the darkness from the light. The future is dark – the light of the sunset is the hope we all felt when Mugabe was ousted in a popular coup in November 2016. That is fading and it will soon be dark, just a memory. The rain on the mirror are the tears of the nation, beaten into submission by the current regime for daring to vent its frustration at the deceit and disappointment and cursing its own gullibility.

Or is it just a pretty scene that I saw this evening in my rear view mirror, driving away from Komani Microlight Club where I go with a friend to fly model aircraft and get away from the stresses of living in a crumbling economy?

You choose.

 





It’s all in the picture

15 01 2019

Sniffing around after the rain – there’s a longer story hiding here though.

This picture is not as boring as it might seem at first. There’s a lot of good intelligence to be gleaned from it.

The swimming pool

It’s overflowing – the result of at least 56mm of rain over lunchtime today and a failure to take the overflow pipes off the gutters that feed the rain from the roof into the pool. We need to collect the water off the roof as the borehole is not fantastically prolific – it has been tested at 900 litres/hr which is OK for domestic purposes but not enough to keep a garden attractive and a pool topped up. So the lawn, such as it is, is seasonal and only really gets growing in the rains.

The pool was most certainly not a priority when we were looking for a house to buy just over two years ago. Harare has a mellow climate; not too hot and never really cold though European friends do find the Zimbabwe winter cold as the houses are not geared for heating. The winter only lasts about two months so what’s the point? Winter is also our dry season and the skies are usually clear so it’s easy and pleasant to sit in the sun. Summers are also not very hot. This November it only got to 33° C on a few occasions and while it can be humid it’s seldom humid and hot. Pools are also expensive to maintain especially as all the chemicals are imported and Zimbabweans are famous for price gouging – but more of that later.

So we got a pool with the house, like it or not. I like it – I used to be a good swimmer until the medical fraternity botched two neck operations and I lost a lot of shoulder strength as a result. I still get in the pool when I can but serious swimming is in the past now. I’ve read that getting old is about giving up the things one likes doing – I guess it comes to us all at some stage. The pool also leaks so needs topping up often and being in the agricultural business I could buy the piping through the company, a perk of the work. Yes, I have tried to find the leak and the entire pool piping system has been dug up on several occasions to little avail. The pool is old, built (or should that be dug?) in the 1960s, when the preferred method was to dig a hole and line it with 20cm of reinforced concrete. No doubt there is a tiny crack somewhere which is nearly impossible to find. It also needs painting but that would require complete draining and a lot of confidence in the weather forecasters getting their predictions right for a good rainy season as the borehole won’t handle that volume of water – about 70m³ which is big for a domestic pool. I know the age of the pool because a friend used to come swimming here as a youngster and he tells me that his father and uncle built the house.

The rains this season (it runs from mid-November to mid-April or so) have been erratic and very patchy. That’s fairly typical for an el Niño year which this is. The first rains in this area were about a week late which is significant if you are planting a rain-dependent maize crop. There have been week-long dry spells since and what rain that has fallen has been very localized so this storm was welcome though the pool filter was not in danger of sucking air. We also collect the waste water from the back-washing of the filter and the domestic washing machine and that is used on the garden.

When we moved into the house I bought a small well pump for the purpose but 10 days ago it just stopped working for no apparent reason. It’s been left at the supplier’s workshop where I was told “It’s not expensive so it might not be worth fixing”. They didn’t have that model in stock so I inquired the price of a slightly smaller one and was told $640 (local currency) or US140 cash. Cleaning up my desk on the weekend I found the original invoice from two years ago when all we were using was US dollars – $96. Thanks for the profiteering DripTech.

The grass

Yes it hasn’t been cut for some time. The lawnmower has been making a LOT of noise recently on being started so rather than deal with a permanently dead (I know it’s a split infinitive) mower it was shipped off to the local repair shop to join the queue. Yes, we queue for everything these days. The message came back this past Friday that yes, it is repairable and would be $200 local. We gulped and then decided that it was a lot cheaper than a new mower (around $1,000 at the local hardware store) so gave the go-ahead. This morning Maianne phoned the workshop to be told that they couldn’t source the spares as it was too risky to venture into town with the current disturbances.

At midnight on Sunday fuel prices more than doubled and the president, Emmerson Mnangagwa, flew out to Russia and the far east with begging bowl in hand.  The trade union movement, ZCTU, and opposition politicians immediately called for a shutdown for three days this week to protest the nearly impossible cost of people getting to work and violent protest has ensued. Social media has reported numerous incidents of shops being looted, vehicles burnt and an unconfirmed video of a police station in flames. Mainstream media has reported that people have been shot but numbers have not been confirmed.  My foreman tells me that he’s heard of police and army personnel also threatening shops that were open and forcing them to close. Messages have been doing the rounds of WhatsApp strongly suggesting that all businesses, public transport and schools close for the time being. The language suggests that they are coming from the ZCTU but no-one is claiming ownership at this stage (it’s Tuesday as I write this). Mnangagwa has been seen getting off a privately chartered jet in Moscow which cost some US$60,000 per hour. We are talking real money here.

WhatsApp, Facebook and Twitter have been blocked but are easily circumvented with a VPN (Virtual Private Network). Curiously, while watching YouTube late last night, I received two automated phone calls – one from a private number and the other from a number I didn’t recognise – telling me that my access code to Twitter was a given six digit number. At the time I thought it was a hack and quickly put my phone onto flight mode. Maybe it was a way of bypassing the block. I’m not sure I’ll ever know now but I do know the grass is going to be uncut for a while longer.

Twitter block in place

 





It’s chaos out there – but we have plenty of fuel

9 01 2019

One of the less congested fuel queues around town

I passed W coming out of the gym this lunchtime just as I arrived. We exchanged the usual pleasantries. I know he works for a fuel distribution company so couldn’t resist asking how business was going, given the chaotic fuel queues around town.

“Oh it’s madness” he replied, shaking his head and laughing at the craziness of it all. “I couldn’t even get past the fuel queue at the intersection of The Chase and Golden Stairs road. Some truck had managed to totally block the road”.

I felt relieved that I’d taken a different route and made a mental note to go back the way I’d come, the road was appalling but free of congestion. “But what’s causing the chaos, the usual lack of money?” I asked.

“Of course. The government is utterly broke. They are insisting that the bond, RTGS or whatever you want to call the local money is equal to 1 US dollar when we all know it’s not.”

“So is there really a fuel shortage?” I asked.

“Oh hell no” and he laughed ironically. “You know all those fuel depots around town?” and he mentioned several though I only knew of the one on the Mutare road to the east. “They are all full, right to the brim. The fuel all belongs to private importers and they are ONLY accepting hard currency”.

“So if someone comes to you with real money you can sell them fuel?”

“Oh yes” W replied. “We are doing quite a lot of business with people who have Nostro accounts (foreign currency accounts holding export earnings). I am sure we can help you out. We can bypass all the nonsense. I must dash, see you around” and he was gone.

I wasn’t actually asking to buy any fuel – I don’t at the moment have anywhere to store fuel as I bought a couple of thousand litres in February last year when we had a similar panic. It didn’t last long but I am glad now that I bought it. Anyway, I’d found out what I needed to know – namely that the government was only half telling the truth when they claim that we have plenty of fuel in the country. We do, they just cannot afford to buy it. The solution has to be a return to the US dollar as the official currency but that is not going to happen anytime soon. There are not enough of them to support the economy. The government would have to admit the local currency is not on parity with the US dollar (current street rates are about 3.7:1 which makes our fuel very cheap indeed) and work out how to demonetize the local money. It’s not going to happen soon and like a customer said to me yesterday – “the future looks bleak and there is no rabbit in a hat to pull out this time. It’s going to be a tough year ahead.”

 





Open for business – sometimes

12 10 2018

Well I never, photo ops on stamps

The price spike when it came was as sharp and high as it was short. Last week a surprise announcement by the finance Minister triggered a slump in the exchange rate between local currency and the US dollar.

By Wednesday the value of the local dollar was 4 : 1 with the US dollar. Panic  buying spread to the supermarkets and taxi fares jumped 50%. I had managed to squeeze a pre-payment out of the company for whom we grow a large number of gum trees and dashed off to spend it. I was relieved to find that the fertilizer I bought had only doubled in price and I wondered what to do with the rest of it.

Yesterday I went shopping for roofing nails that we needed to finish off a carport for the new tenant in the cottage. The first hardware store I visited was shut. There were notices stuck to the doors but I did not bother getting out of the car to read them. The second store in the same shopping centre as the local Spar supermarket was also “Closed for Stocktaking” but they opened up when they saw me. The didn’t have the nails and were only accepting US dollars cash. The supermarket was closed

Closed for business

Only in Zimbabwe can one get a 90% discount

and Marianne told me that the previous day they were limiting items to one per customer – including toilet rolls. Panic buying was rife at other supermarkets that were said to be struggling with the influx of shoppers – nothing proliferates panic buying like panic buying.

On the way to work I visited another hardware store. They didn’t have quite what I wanted but we made a plan and I was given a 90% discount for using US cash. This is of course not comparable to the comparison between the local currency and US dollars in November 2008 but that had been years in development, not days.

On the way to the Central Sorting Office this morning to collect a parcel I attempted to get past a queue for fuel on Glenara South Avenue. Just as I thought I was making progress cars started to pass on my right and soon there was 4 lanes of traffic going one direction on a road designed for 2. Fortunately there was a road to a field on my right and I managed to get turned around and take the longer, but quieter, route.

The ladies at the sorting office asked me how I was. Resisting a facetious reply I answered in one of the few Zulu words I still know which translates to “I am here”. We agreed it was appropriate.

Getting back to the nursery I contacted Tony who has the keys to the fuel tank where I store the diesel I bought earlier in the year when there was another fuel shortage scare that didn’t develop into much. He told me his son, who follows these things, had told him the rate had dropped to 2 local dollars  to 1 US dollar and the whole spike had been driven by the government buying US dollars to pay off a debt the country owes. By 5 p.m. this afternoon my staff told me that the rate was 1.9 local to 1 US, down from 4.8 yesterday. Perhaps a sense of normality has returned but I suspect rates as reflected in the shops will not be this low – people will be very jittery and will want to maintain a buffer. I strongly suspect that some outlets will continue to demand US dollars.

Zimbabwe’s president, E D Mnangagwa campaigned with the slogan that “Zimbabwe is open for business”. I was unaware that he’d gone so far as to get the slogan put onto stamps with him schmoozing at Davos earlier this year with the likes of Christine Lagarde and the Chinese premier, among others. Investment has been slow in coming, not least because of the violent repression of protestors after the recent general election that was heavily slanted towards the ruling party, ZANU-PF. The past 10 days of chaos are unlikely to convince anyone that now is the time to invest.

On Wednesday there was a small horticultural expo at a local hotel. I went along hoping to pass out business cards and make a few useful contacts. It was a very small affair geared mainly towards the export flower market but I did have an interesting conversation with a French representative of the rose breeding company, Meilland. He recounted a meeting with the local French ambassador the previous day where he was told that there was considerable interest in Zimbabwe but potential investors were not ready to commit just yet. We may be open for business but investors are not convinced.

 





Waiting to see – as we usually do

26 07 2018

Heading towards the worst month in the nursery since 2009. Will it change after the election?

We’ve done a  lot of waiting and seeing in Zimbabwe but this is arguable the most crucial one. There’s a general and presidential election on the 30th of this month and the outcome really will define the foreseeable future of the country.

After a slow start the campaign for all concerned has got into high gear. Trees, lampposts and walls everywhere are festooned with posters for the hopefuls – and there are many of them. Not surprisingly politics is seen as the path to easy wealth and everyone wants a share. By far the most expensive campaign has been by the incumbent party (ZANU-PF) and the current president E.D. Mnangagwa who is usually just known as ED. His visage is on billboards throughout Harare often with the slogan “Zimbabwe is open for business”. Indeed, he has been saying all the right things that might interest investors including scrapping the 51% indigenous ownership of foreign based companies, compensation for commercial farmers (mainly white) who were kicked off their farms by the Mugabe regime and a free and fair election. Anyone is welcome to come and observe the elections and indeed on Wednesday I saw an EU observer team vehicle parked in town. ED has come across so far as supremely confident that he and his party will win the election without any obvious subterfuge. The key word of course is obvious because, as always in Zimbabwe, all is not as it seems.

The Zimbabwe Electoral Commission (ZEC) which is responsible for organizing all aspects of the election is most certainly partisan to the ruling ZANU-PF. Among their transgressions have been not releasing an electronic voters’ roll to the opposition parties, not listing presidential candidates in alphabetical order (ED’s name and photo is top thus biasing his chances), making the voting form a double sheet of paper (it should be single) and saying they are not answerable to anyone. The head of the ZEC has also been photographed wearing ED’s trademark Zimbabwe colours scarf and wouldn’t say when the photo was taken. Ghost voters abound on the roll some of whom are evidently the oldest people in the world. Whilst the bio-metric voters roll was put together in a rush and errors were bound to crop up people are wondering if they will be corrected in time for the poll.

The most credible opposition is the MDC Alliance. Once the MDC (Movement for Democratic Change) was a single party but I have lost count of how many factions there now are. For the moment they seem to have patched over their differences and their presidential candidate is one Nelson Chamisa who has impressed me not at all so far. He seems prone to making silly campaign promises such as a high speed train that will link the capital Harare and Bulawayo the second city in the south of the country. Given that is 450km that will make it the fastest train in the world. That aside he has been touring the country and if the pictures are to be believed the stadiums have been packed. The colour of choice for the MDC Alliance is red which does rather remind me of the EFF (Economic Freedom Fighters) party in South Africa which is known for it’s extreme views on taking land without compensation. It’s headed by the firebrand Julius Malema who has a very thin grasp of economics and models himself on the late Hugo Chavez. I hope that the colour is the only thing in common between the MDC and the EFF.

What I have not heard from any political party is any coherent policy to alleviate the critical cash shortage. The head of the central bank has stated that after the election he will flood the country with US dollars to put the black market traders out of business. Quite where the money will come from has not been stated.

The currency black market is flourishing at a level reminiscent of the Zimbabwe dollar days. My friend Shelton, who is also my French teacher, tells me that the currency traders are openly trading in the centre of Harare (he also tells me that the marijuana dealers are also trading openly but that’s another story). There are several rates depending on what is being traded. Bank transfers for US cash commands about 1.8 or more to US$1 cash. Bond notes, the Zimbabwe equivalent to a US dollar but only valid in the country, trade at about 1.6 or 1.7 to US$1 cash. Mobile banking on a cell phone is about the same as a bank transfer. Apparently there is no shortage of of either type of cash which is curious given that it is vanishingly rare in the shops and banks.

About 2 weeks ago a rumour did the rounds suggesting that the central bank was going to start issuing Zimbabwe dollars again. This started panic buying of US dollars cash and the rate, which had been stable for about 8 months, started to run. I wouldn’t be surprised if the rumour was started by those with the cash (both types), who are known to be the political fat cats, to force a run on the rates before the election.

All my accounts, both company and personal, are in US dollars – it says so very clearly at the top. We all know that they are not US dollars as we cannot go to the banks and get any and the “street rate” is fast closing on 1:2. This is going to pose a major problem for whoever wins the election. Zimbabwe imports a lot of goods, mostly from South Africa, and prices have gone up because those who are doing the importing are doing so at inflated rates. I bought a sheet of plywood this week to put in some extra cupboards at the office and it had more than doubled in a year. I paid by debit card so that would go into the seller’s bank account and immediately be registered as US dollars. Assuming that we do revert to “real” US dollars after the election those who have been charging at the street rates stand to have made a lot of money. I deal in seedlings and when the rates started to run towards the end of last year tried to put up my prices. My customers raised merry hell and I had to bring them down again or risk losing customers. That they put up with increasing prices elsewhere for chemicals, hardware and general cost of living didn’t seem to bother them as odd.

The public’s mistrust of the banks and the banking system is profound so that any cash released into the banking system will soon be mopped up by withdrawals that most certainly will not be redeposited and we’ll end up with a cash shortage of the type we’re experiencing now. I don’t see how this can be solved in the short term. The nation has made significant progress towards becoming “cashless” – payments are made using debit cards and a number of mobile phone platforms. As a result I have little need for cash but I would like to have the choice of using it if I want to.

As I write this the election campaigns are running furiously. The incumbent president, ED Mnangagwa, has gone so far as to woo the white electorate with a purpose-designed rally at Borrowdale racecourse in Harare. He must be feeling a bit nervous to go to that effort; there are very few whites left in the country and their vote is all but inconsequential. I predict a close result. Quite what the military, who were instrumental in removing Mugabe from power and installing ED will do if the opposition wins remains to be seen. Will they throw their lot in with the MDC and Nelson Chamisa? They must be only too aware that should the MDC win they and others in ZANU-PF may well be held accountable for their sins in violent election fixing in past elections. As usual, we will wait and see.





Hopeful signs?

29 03 2018

Last week I attended the ART (Agricultural Research Trust) annual open day with the senior foreman at the nursery to keep our name recognisable (it’s Emerald Seedlings if you need to know). We’ve been feeling the pinch a bit this year – it’s  been the slowest start to a year since Zimbabwe adopted the US dollar as its main currency back in February 2009.

ART is the last agricultural research centre in the country where any significant research actually happens (the other government farms are broke and little if any research is done on them) and they too have fallen on hard times now that the commercial farmers on whom they depended for tariffs are largely gone.

It was evident that there were quite a few more exhibitors than last year (we pay for space) and there were more than 250 visitors. That’s not a lot by agricultural show standards but most likely had some sort of connection to agriculture. There is a bigger agricultural equipment show later in the year but it’s open to anyone.

So was this good turnout symptomatic of a renewed enthusiasm for agriculture and the future of the country in general? It’s difficult to say. The new president, E D Mnangagwa has certainly been making all the right noises, including asking evicted white commercial farmer to return to help feed the nation. Few are likely to take up the plea. Most are now too old to start over or are established elsewhere – Zambia profited handsomely from the influx of farmers displaced by former president Mugabe’s disastrous land redistribution policy. The economy remains moribund but at least the government has resisted the temptation to print more of the infamous bond notes that curiously command a premium of 20% over cashless transactions in many parts of the economy.

Last week there was much anticipation over the name and shame list, published by the government, of people and organizations that had externalized money over the years. Names and quantities of money (to the dollar) were listed making me think that it was simply a lack of paperwork by the central Reserve Bank, after all who would export money through official channels if they knew it was illegal? Tellingly is was only a name and “shame” list, not a name and prosecute list and there were no current members of the ruling ZANU-PF party listed. Anticipation quickly became cynicism.

Last week my staff workers’ committee asked for a meeting. Cash was hard to come by; would I consider paying them more if there was no cash available for their wages because they could get a 20% discount for cash (which I do pass on as and when I get it). I don’t think they honestly expected me to say yes so I did not surprise them. Zimbabwe remains expensive and prices of imported goods (one has to wonder how grapes from Holland get a green light to be imported) continue to escalate. I did tell them that nothing was going to change before the elections scheduled later this year and even then it was only going to be incremental. I’m not sure they understood or even cared.

Yours for a cool $175,000. Comes with GPS enabled steering, air conditioning and enough lights to keep going all night. Requires an operator (drivers need not apply)

Zimbabwe ingenuity – a battery powered knapsack sprayer mounted on wheels with a spray boom adjustable in height for various crops

A storm on the way from Harare city. Trial plots line the road down the centre of the farm

ART field day looking north-east

 





Loadsa funny money

1 02 2017
Funny money and the real stuff

Funny money and the real stuff

 

Ok,  I wasn’t quite truthful, there’s not LOTS of funny money – there’s just more than we’ve had in the past.

Once upon a time there was just Zimbabwe dollars and we got by. Then they crashed, and people were sad, so we got US dollars because that’s how economics works and everyone was happy again. Now there are not so many US dollars (as notes but there’s plenty in accounts which we can’t use to import anything) because lots, really lots, have been stolen.

So when things started to change again the Zimbabwe Reserve Bank in its unfathomable wisdom saw fit to introduce Bond Notes and everyone panicked and withdrew their cash and mobile (phone) cash became king, dominated by one Ecocash who saw fit to charge extortionate fees so banks saw fit to introduce their version of mobile cash. These are debit cards that can be managed on phones and we got a swipe card machine and people were happy again (but only sort of).

Not many bond notes came across my desk and I was happy too (again only sort of). I did get lots of text messages on my cellphone confirming that people had used their cards to pay direct to my bank so I don’t check messages that much and miss the important ones. Now the funny money (top of the pile in the photo) is coming across my desk in much larger quantities as people try to get rid of it, pass the hot potato if you like. The government has decided to tax potatoes, before they can even get hot, and other basic foodstuffs too so everyone is unhappy again. But nobody is going to do anything about it.

Banks have said that if we deposit cash (the real thing in the photo – not the funny money) then we can import stuff to keep going but I haven’t found out if my cash, assuming I have it, is going to be flown to India to buy more raw materials or it’s just a ruse by the Reserve Bank, that in it’s wisdom (again), wants to mop up all the real money for the government to spend on paying employees or, more likely, on itself (which some people might be suspicious of).

It’s not looking good. Not at all.