Zimbabwe Business Watch

Zimbabwe Business Watch

The daily cash withdrawal limit remains at $500 ($5 trillion) when a pint of milk now costs $2 500. Simple mathematics will tell us that in order to buy a pint it will take 5 days drawings of cash to achieve this figure, by which time the price is likely to have doubled.

The scenario of the dog chasing its tail is very real in just about every transaction that business attempts.

More and more factories cease the production of consumer goods only for them to be replaced by South African imports funded by the parallel black market sector. This results in the cost of goods in Zimbabwe being priced at up to

4 times the cost in South Africa and this fact alone is placing most of the pressure on employers to pay their staff and workers.

The US Dollar reached 9 000 (90 trillion to 1 or 1 quadrillion to 1 – August 2006). Needless to say, when business does earn money, it needs to be spent immediately and many operations find themselves unable to find the goods or raw materials to purchase and this prospect, in itself, only exacerbates the situation.

A grade 1 factory worker only earns enough money to pay for his transport to and from work for 10 days of the month. In general, there is silence from the Reserve Bank and the Ministry of Finance, suggesting that there is little that can arrest the rapid deterioration of the economy other than dramatic political change.


Post published in: Economy

Leave a Reply

Your email address will not be published. Required fields are marked *