The Zimbabwe economy and this beetle have more in common than one might think.
They are both lying flat on their back. Fuel queues have returned with a vengeance just 2 weeks after the last episode faded away and we breathe a sigh of relief. It turned out to be a temporary respite. Talking to a customer this morning he said that he’d pulled into a local filling station to be told that they were only accepting real US dollars (our local version is now known as “bond”) and that would be as international credit cards not cash, thank you.
The government insists that the local bond and the US dollar are still equal value but anyone, or should I say everyone, knows that it is around 3:1. In a curious twist the local tax/revenue authority has announced that all taxes on revenue earned in US dollars must be paid in the same – even thought they are both officially valued the same. The accounting sector is flummoxed.
Neither has any idea how to get back on their feet. President ED Mnangagwa’s international charm offensive prior to the recent general election was “Zimbabwe is open for business”. It drew a lot of interest as Zimbabwe is resource rich and potentially attractive to investors – an obvious way to get the economy going again. That all crashed in a bloody mess this past August when soldiers opened fire on protestors at a rally called by the opposition MDC Alliance to give vent at the blatantly fiddled results.
Both are hoping someone will be kind enough to help. The beetle is pathetically waving its legs in the air, trying to get some purchase on the cement – it has little chance of success. I don’t see any solution for the Zimbabwe economy either. The finance minister, Mthuli Ncube, has the dubious distinction of being in charge of the local Barbican Bank which collapsed a few years ago. He is also being advised by local economist Eddie Cross. Cross was a vocal supporter of the opposition MDC but now is a ruling party apologist. I have yet to hear him speak any sense. Back in 2016 when the local bond currency (so called because it was said by the government to be backed by a bond from the Afrexim Bank in Egypt) was introduced he predicted that the supermarket shelves would be empty within 2 weeks. They are not.
Everything is very expensive but Marianne (my wife) found Belgian butter on Tuesday at less the the price of local butter and half the price of a South African brand. At the time the Afrexim Bank would not provide details on the purported bond which was later discovered to be non-existent. The currency is based on an illusion. No-one can fathom why it still has any value at all. Perhaps the government is hoping it will collapse and then they won’t have to bother with it. Those people lucky enough to have an essential business with little or no competition are managing to successfully demand payment in US dollars and will likely survive. They are also taking the opportunity for a bit of price gouging.
My business is not one of these. I have a lot of competitors who are charging less in bond currency than I was charging in real US dollars 8 years ago. Given that fertilizer and chemical costs have more than doubled in the last 2 months I have no idea how they are going to replace them. I have had to slash my prices to compete and hopefully out-last them. I have enough raw materials and inputs for another 6 months or so – it’s going to be a nerve wracking process.
I picked up the beetle and put it on a patch of lawn where it quickly scuttled off. The Zimbabwe economy will not be so lucky.
The curse of good health
13 08 2015My uncle turns 93 or maybe it’s 92 this year. Mentally he’s very sharp but physically he’s frail. Last year he decided he’d had enough of life and decided to end it on his terms. He failed and now he’s condemned to a old age home in rural England, waiting to serve his time amongst the old, frail and demented.
I went to visit him the week before last whilst on an infrequent trip to a family gathering and the wedding of a young friend. We don’t get together much; my brother lives in the UK, my sister in north-western USA and I’m in Zimbabwe. It was my brother’s 60th birthday last weekend and I’d said to my sister-in-law that I’d come over for it if he promised to have a party.
Lucy and Will’s big day
It was pure luck that Lucy was getting married the weekend before and well, I probably won’t see Ant again.
The UK is unlike Zimbabwe in many ways;
Clean
Organised
Good roads
Horrendously heavy traffic but a noticeable absence of bad drivers (ok so it wasn’t a dangerous breach but it’s still a red light!)
Crowded
Green (Zim is very dry right now
In short – First World!
So whilst in London we did the tourist thing, the Science Museum to get my dose of science.
Tower Bridge on the Thames
Dining hall at the old Naval Academy.
The Cutty Sark
A Thames river cruise to the Cutty Sark and checked out the amazing dining hall at the old Naval Academy. Zimbabwe does not have recorded history going back that far and we don’t have a navy either. We do however have better weather than the UK though on this trip it wasn’t bad, choosing to rain just when I chose to do some serious photography.
Getting back to Harare we encountered some decidedly Third World air service with all the luggage being left in Johannesburg because there was no Jet A1 fuel in Harare. Well, that was the official story. It is certainly symptomatic of the state of the economy here and meant that we had to go back to the airport the next day to collect our luggage (don’t they deliver it elsewhere?). So my Saturday visit to the Gallery Delta had to wait a week.
The current exhibition there is From Line to Form where Wallen Mapondera’s string picture Everyone is a Vendor neatly caught the dire state of the economy; we just don’t produce much anymore.
Everyone is a vendor
Not at all like the market we visited in the curiously named Bury St Edmond where it was very hip to buy local produce. Not sure if these tomatoes were local but they are certainly better quality than the ones we get here!
Good quality produce
When I left Ant I shook his hand. His grip was firm by any standard. He just laughed when I mentioned it. Handshake strength is one of the criteria used to asses old people’s health. I winced inwardly at the irony of it.
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Tags: Bury St Edmund, Cutty Sark, London, Naval Academy, River Thames, Tower Bridge, Zimbabwe economy
Categories : Social commentary, Travel