New figures released by the Zimbabwe National Statistical Agency show that the cost of living in the country has gone up by 8%, and that an average family of five needs a minimum of US$467 per month to survive, with the grocery budget alone pegged at US$150. This is beyond the reach of most people in Zimbabwe, where government workers earn under $200 per month.
As it stands, Zimbabwes economy is fragile and struggling to recover, after being destroyed by the political crisis created by ZANU PFs violent rule. Constant reports of escalating violence and ZANU PFs threats to grab businesses from foreign-owned companies are also damaging the economy further because it puts off investors from pouring badly-needed capital into the economy.
On Tuesday, economic analyst Tony Hawkins said: Zimbabwes economic decline is a political issue, its a governance issue. The economy would not have declined if it had not been for the political situation, and for the economy to recover you have to change the political environment within which it operates.
He said the political crisis and the land seizures had destroyed Zimbabwes agricultural sector and most food now had to be imported, and the costs are passed onto the consumer. Food is imported from South Africa, and the Rand is strong, and thats pushing up the cost of imports from South Africa, he explained, adding that: Twelve to 15 years ago, we used to be self sufficient in terms of food, but these days thats no longer the case. Clearly production is way down in terms of the levels we had.
In addition to foreign investors hesitating to invest in Zimbabwe, many of the countrys factories have shut down or are unable to operate because of power cuts and poor infrastructure.
Until there is an end to the political crisis, Zimbabweans will have to get used to an ever increasing cost of living.
Post published in: News