Zimbabwe Business Watch : Week 3
Business began the week in a haze of confusion as the surrounding economy has become non-functional.
Salaries paid to staff and workers in December realized a return of as little as two tomatoes as authorised daily cash withdrawal increases did not keep pace with inflation.
The Zimbabwe Dollar barely exists as legal tender as virtually all transactions now take place in Rand and USD. About the only services or goods that can still be obtained in ZD are electricity, rates and land line telephones. However, only cash payments are accepted for these.
Foreign Currency Trading Licenses are being delayed sometimes for months and this simply prevents business operations from functioning at all.
Inflation continues to accelerate even in the “dollarised” parallel economy with prices exceeding those internationally by up to 400%. The OMIR stands at 11,42 qdln and the USD has been trading at over 65 billion to one.
To add to the bizarre circumstances, the recalcitrant authorities have extended last year’s June 18 price controls madness to June 30th 2009!! This is merely seen as a mechanism to harass business and attempt too shift the blame for the national emergency from an inept “government”.
Most factories have extended their Christmas shutdown, some indefinitely, whilst the outcome of the present round of talks on the political impasse becomes clear.
January 20th, 2009 20:44
“To those leaders around the globe who seek to sow conflict, or blame their society’s ills on the West — know that your people will judge you on what you can build, not what you destroy. To those who cling to power through corruption and deceit and the silencing of dissent, know that you are on the wrong side of history; but that we will extend a hand if you are willing to unclench your fist.” – Barack Obama 20 January 2009.
It does not take a rocket scientist to decipher the intended beneficiary of these words.It is time to take heed for the leaders in harare. The world is watching and willing to act; what a relief.