Inflation in Zimbabwe has touched the record annual rate of 1,593.6 percent than 1200 percent month before as daily needs items like electricity, gas and food’s prices increasing day by day. Country economy is showing adverse effect as its all major sector includes primary, secondary and service sectors failed to generate its foreign reserve. Despite sufficient rainfall the agricultural land remain parched, while unfortunate farmers sell its quotas oil, which government allocated to the farmers, in the black market to make two ends meet. The country has been facing the problem of unemployment, which have been increases more than 80 percent and chronic shortages of food and fuel makes the life of fellow countryman bitter. Political tensions are rising as urban workers have been hit by the soaring costs of consumer goods, public transport fares and medical fees. Medical services has hinder as Doctors and nurses have been on strike since last month, crippling state hospitals and they have now been joined by some teachers and university lecturers. Government increased the remunerations of its civil servant month before but the top union representing government employees demanded a review of all civil servant salaries, and said if the demand was not met the "agitated" workers would consider protests. Doctors and nurses have already demanded for 9000 percent increases in the salaries. Political tensions have mounted on President Robert Mugabe’s who is ruling country since 1982, after rival nationalist leader, Joshua Nkomo. To secure its positions President alleged to assassinate several leaders and puts thousands behinds the bar. Critics blame president for the problem and quoting that president own ride, a new luxurious $2.5million custom-built Mercedes Benz with high speed internet connectivity, critics suggest that Cyberspace may be less thrilling than the actual world he inhabits.
As the day passes, Zimbabwe’s inflation rates became sorer. In the previous month, Zimbabwe’s rate of inflation has touched new heights as it surged to 3,714 percent and The International Monetary Fund (IMF) warn that Zimbabwe’s annual rate of inflation will reach more than 6,400 per cent next year. Country’s economy has totally dilapidated, as Mugabe government has failed in all fronts. Country’s debts has increased drastically, its foreign reserve has reduced, which leaves its national bank penurious. Nation’s financial condition has shattered as its prices rose about 36-fold between the end of April last year and the same day this year. The Central Statistics Office said that prices of all needed articles are soaring incessantly. Employment has fallen and Zimbabweans find it difficult to pay its increasing power bills, even life has become as difficult as most of compatriots find it difficult to make two ends meet. Prices of food like meat, vegetables, cooking gas has risen to its all time high and transportation forgets it. The annual inflation rate has been on a roller-coaster ride since December 2004 when it shot up to 622.8 percent. In March this year, it breached the 2,000 percent mark to reach 2,200 percent. International Monetary Fund had projected that Zimbabwe’s inflation would not surge more than 3,000 marks to the end of the present financial year, but it has crossed the all projected limits. Labor unions are demanding the government and employers raise the minimum wage to the poverty level, currently pegged at $6,800 on the official market but $50 on the black market. Due to a increasing economic distress, black marketeers are thriving and even farmers, who receive gas as government subsidy to pump water for irrigation purposes are selling it into black market for they make a kill by selling the gas itself. Despite good rains, the primary sector, which is the backbone of the country’s economy it has taken a back seat. Zimbabwe’s only ruler since its independence, Mugabe, blames Western sanctions for the Zimbabwe’s economy, but the bitter truth is that Mugabe is the solely responsible for the country’s present conditions. Mugabe’s controversial policies such as his seizure of white-owned farms and redistributing it among the blacks is at the root cause for decline in agriculture productivity. Keeping a close eye on the hyperinflation, Mugabe government has signed a law establishing an incomes and prices commission, which would set prices and wages. But all such efforts appear non-starters, until and unless the country’s productivity, foreign currency and its foreign policies do not markedly improve. Image: sfgate Via: presstv
Zimbabwe government is giving another jolt to its shattered economy as President Robert Mugabe announced to seize majority shares in all of Zimbabwe’s foreign-owned businesses and mines, which could jeopardize the inflation smacked economy. Zimbabwe government alleges that initially it will target the “imperialist companies,” as the president asserts that these companies are not empowering the country’s indigenous inhabitant. The top-listed companies on president’s radar are London-listed mining group, Rio Tinto, financial sectors and banks like, Standard Chartered and Barclays on its top list. These apprehensions materialize as Mr Mugabe’s cabinet approved legislation to force all foreign-owned companies to concede 51 percent shares to black Zimbabweans. The empowerment bill is going through a final drafting process before it is presented to the Parliament. The government has already enacted the new mining Act, which forced all foreign-owned mines to distribute 51 percent shares to black Zimbabweans. Both bills aim to empower compatriot, and if companies cannot find acceptable indigenous Zimbabweans then the government can make suggestions. Economists warn the government that such a move can hurt a severely inflation-hit economy, as prices for essential commodities are soaring to an all time high. The nation’s inflation has crossed the 3,700 mark whereas its economy has shrunk by 50 percent since 1999. Economists fear that by allotting majority stakes of the country’s only profit generating businesses would increase inefficiency, mismanagement and corruption, as the country is battling for law and proper administrations. Mugabe-led government has seized a land from white farmers and allotted it to the indigenous compatriot and after that the country’s economy is battling from inflation and bad administration. Despite a good rain throughout the season, the country’s backbone primary sector is struggling, once a food exporter, Zimbabwe is depending on international food aid for six consecutive years. Exports have totally devastated and industries are looming for its presence. Image: bittenus Via: guardian