How can you not have a daily melt down in this time of economic melt down?

This is what life is like trying to run an medium sized business…

One company had an internet bill of Z$600 billion for the month ending mid June.  By mid July the same company’s bill went to Z$58 trillion!  That is fairly shocking for the outsider reading this, but with the rate of inflation, no great surprise to the local living under current conditions.

The bigger problem is the mess in the banking computer systems, which can only handle a maximum payment of Z$999 999 999 999.00 per transaction.  So the poor company book keeper has to divide bills into tranches of the maximum amount.  This month she had to action no less that 59 RTGS (Real Time Gross Settlement) payments just to cover the company internet bill alone.

Then the next headache… the workers are paid directly into savings accounts and in the past the worker would draw his or her money whenever needed.  Well, the cash crisis has escalated to catastrophic levels and the ATM’s have run out of cash.  So the company is experiencing massive absenteeism as the workers are spending their days queing for cash.

And here is yet another headache (we are only half way through Monday morning’s crises, and still have to get through the week): the company relies on imported materials from South Africa to be able to manufacture the end product.  In the past clearing agents would submit all paper work to the customs officials at Beit Bridge to preclear the goods and avoid unnecessary delays at the border. In addition, payments could be made by cheque.  Zimre was not coping with the number of cheques they had to invoice and receipt, as once again cheques cannot exceed Z$999 999 999 999.00 each. Can you imagine the paper work for truck loads of imported goods???

So, Zimre decided it would be easier for them to work on RTGS only. That is fine for them, as it is now the company’s headache to action the total amount broken down into many tranches.  This is how it is being done now, but with the back log of RTGS’s in the system, there is now a 16 day delay from time of initiating payment to Zimre receipt of payment.  By the time Zimre receives the money, the foreign exchange rate has rocketed and the amount due for duty has increased dramatically and the clearing agent has to top up the funds required.

Not only are the goods now endlessly held up at the border, but the clearing agents are unable to bill their clients (for the goods have not been delivered) and these agents have run out of funds!

So Mr Gono, do you really think Zimbabwe is a mecca for external investors?  What are you going to do to fix our bleeding nation???

Share This