Zimbabwe Business Watch : Week 15
Following the lift of duty on basic commodities, Zimbabwe has passed the 11th week of sustained decrease in the general price level. This is the first time in its history. The lift of duty on basic commodities and authorization to sell in foreign currency has positively impacted. This, in turn, generates increased competition further driving down prices.
Bread, for example, has fallen from as high as R15 for a standard loaf earlier in the year, to as low as R5. Free market conditions simply replace price control.
However, revenue generation remains a problem for central government and funding for the financial sector is still not forthcoming… at least until minimum political conditions are met. This places great strain on major industry and perpetuates the dire cash flow crisis afflicting business in general.
There are more and more signs of foreign investors cautiously assessing the situation.
April 7th, 2009 12:05
I can tell you now , that NO-ONE is really excited about the thought of lending money to such a bunch of spendthrifts in their new ‘E’ class Mercedes’s. If the second in charge of the UK can drive his own personal 4 Year OLd Vauxhall , then why can’t the Zimbabwe ministers ?
April 7th, 2009 18:31
Update on UK Ministerial Cars in 2009
According to a report in the UK Independent newspaper, on March 20th, UK Government’s car and dispatch agency (GCDA), which is responsible for ministerial cars and also dispatch of government documents, the GCDA mostly runs Toyata Prius cars. They run 84 Toyota Priuses, 33 Ford Mondeos and 19 Jaguar XJ saloons.
I looked up the GCDA annual report, which gives the average engine size as 1770 cc. They are now buying Honda civics.
I guess the UK-image Jaguars are for the PM and ministers on occasions when for political reasons they must travel in ‘British’ looking cars.
In Zimbabwe, road safety is vital. Ministers are at risk. However, many smaller cars are very safe.