Zimbabwe Absurdity

Just part of the paperwork necessary to import the coir pith essential to my business

It’s not something I look forward to but the coir pith on which my nursery depends for growing seedlings is essential for a good product. Yes, another substrate – composted pine bark – is available locally but last time I tried it some 20% of my seedlings died from the disease it carried. So about once a year I just have to grit my teeth and jump through the bureaucratic hoops. To be fair it IS becoming a bit easier as more of the government agencies involved get online and organized.

First off is the Agricultural Marketing Authority. I have no idea what they do but membership is essential and nothing else is achievable without it. Fortunately it’s doable online. Then it was on to the National Biotechnology Authority to get a permit that acknowledged the import was free of GMOs. The Indian supplier had given me a certificate stating as much and though it didn’t look very authoritative to me, it was sufficient and upon receipt of the required payment the local certificate was duly issued.

I have done the Ministry of Agriculture for the importation permits before and found it beyond tedious so sent Fabian, one of my senior staff, down there with some smaller US dollar note and instructions to “do whatever it takes” to get the first certificate. It cost him five dollars to put in the application whilst the official concerned was “on lunch break” and then all I could do was wait.

Fortunately the container was being delayed en route from Sri Lanka. I have no idea why it had to go via Colombo but I guess getting a full cargo of containers to warrant a ship going into the port of Beira in Mozambique takes some organizing. That was just as well as the first permit took two weeks, the date stamp indicated it had been sitting on an office desk for one of those weeks, and the second permit took another 10 days. That also required a sweetener of a few dollars.

By this stage I’d already paid the port and transport fees, all US dollars, and the race was on to get the local documentation to the border post near Mutare in the east of Zimbabwe before the truck from Beira got there. If we were late demurrage would be charged and I’d experienced that to my cost before. Fortunately my local shipping agent seems to know a lot of people and he got the money there just in time.

Then it was just a case of waiting for the truck to arrive and organizing a forklift to offload the pallets. It was three weeks late and in the interim I’d had to buy two pallets from another local supplier who’d marked up his prices 100% (he vehemently denied this even when I told him I new what it cost) but at least it’s over for about another year.

Now that the final accounts are in I can see that the costs were close to last year. The total for 24 tonnes of coir was US$19,650 which works out to 81.8c per kg. For some strange reason my bank needed to pay for the coir in Euros, I have no idea why but I do know that payment had to go through a South African bank. The rest was all payable in US dollars, none of the Zimbabwean kind thank you very much.

Yes, Zimbabwe is still trying to get its own currency up and running. It’s called the ZiG which is not the name of a cartoon character’s best buddy but is short for “Zimbabwe Gold”. It’s apparently linked to gold bullion of which the Reserve Bank is holding. Nobody is actually sure if this is the case but the official rate is around 13.8 to the US dollar.

When the ZiG was first introduced the obvious happened; currency traders spotted a good thing and the rate soon began to run. The government got tough and threatened a US$10,000 fine for any company or person not using the official rate – by law you have to accept either the ZiG or the US dollar if that’s how a customer wants to pay, the one exception being fuel traders who are not obliged to accept ZiG. Fortunately for my business most customers are uninterested in using local currency and choose to pay in US dollars, usually using cash. The local currency received has been entirely electronic – I’m not sure if this is by design – and I have yet to see any local notes. It is certainly not difficult to get US dollar notes out of my local bank and even small denominations are often brand new and in their 100 notes wrappers.

The country’s roads are in a disastrous state at the moment, bearing witness to years of neglect, but there’s a regional conference of the SADC (Southern African Development Community) in August so there’s been an orgy of road repair in Harare during the last few months. Construction teams have been called back to Harare from the outlying projects to concentrate on the local roads. Chaos has ensued as roads are closed and heavy traffic routed through the suburbs.

Some actions are unsurprising, others beggar belief. People living along the main route to the new Chinese-built parliament house where it’s all going to happen have been offered free water, delivered by tanker, to help make their gardens look pretty for visiting dignitaries.

The new dual carriageway to the parliament is being lined with kerb stones that make sure that there is nowhere to pull off the road if one has a breakdown. A local farmer, who lives on the route, pointed this out to one of the construction teams and was assured that it was a temporary arrangement and all the kerb stones would be removed after the conference. We’ll see.

A new bridge has gone in over a small river. They haven’t finished casting all the concrete and I’m told it takes a month to cure but the conference is in less than a month. Interesting.

An obvious question is where has the government suddenly found all the money? Are the construction companies actually being paid and what currency are they using? A friend is heavily involved in the landscaping of the new parliament and Marianne tells me she is being paid in US dollars and is doing quite well from it but rumours abound as to whether the others involved have been paid. I have heard that one company was owed some US$200 million which seems a bit much but many years ago I was told that a normal road costs US$ 1 million per kilometer to construct so perhaps it’s possible. Whatever the truth is you can bet the government will do whatever it takes to get the roads done and put up a paper-thin facade for the visiting dignitaries.

The nations hospitals would certainly like a bit of money themselves; currently several of the bigger ones are owed in excess of ZiG11 billion – a lot of money in any currency.