Retired couple Teddie and Vesta always imagined they would
live out their golden years with dignity.
He is 85, and served one company for 46 years as a cleaner,
eventually rising to become a receptionist. Vesta says that rising inflation
has robbed them both of a comfortable retirement.
A year ago Teddie's monthly pension was worth $80 (£66),
it's now worth $10. "I am saddened when I see my beloved sitting in that
corner from morning to night," Vesta tells the BBC.
"I would love to give him a banana, an orange or a
cool drink. But we can't afford it. A banana costs $0.40."
The signs of a failing economy are everywhere. Supermarket
trolleys are hardly ever full these days and shoppers linger, contemplating
their purchases.
The prices of basics like sugar and cooking oil have jumped
by 200% in June, according to official statistics. So has healthcare.
Meanwhile the cost of bread has gone up fivefold in four
months. As of June 2019, inflation had already hit 98%. In July, local currency
the Zimbabwe dollar was reintroduced after a decade of using international
currency. Inflation then soared to 176%.
The local currency's value has continued to drop but the
government has now suspended the publication of inflation statistics, citing
the change of currency.
The latest economic crisis comes as Zimbabwe's President
Emmerson Mnangagwa marks his first anniversary as an elected leader.
Robert Mugabe was ousted when his long-time
ally-turned-rival swept to power with the military's help in November 2017.
Elections were held on 30 July the following year.
President Mnangagwa has dubbed this era the "second
republic" - one based on recovery, entrenching democracy and reversing
decades of ruinous policies under his predecessor.
Initially many Zimbabweans believed him. Zimbabweans were initially hopeful that the ousting of
Robert Mugabe would persuade investors to return, bringing much-needed cash
injections to local businesses.
But hope has faded and old ghosts have returned. Fuel is in short supply. The government says it doesn't
have enough foreign currency to buy it. Rolling power blackouts are also back.
Authorities blame ageing power plants, low electricity
tariffs as well as the worst drought in 40 years which threatens to shut down
the main hydro-electric plant at Kariba.
A constant hum has returned to the city - the sound of
generators - as boutiques, restaurants, supermarkets try to stay in business.
With a sevenfold increase in fuel costs since January, this too will force
prices of goods up and further fuel inflation.
'No quick fix'
Business representatives say power cuts, sometimes lasting
up to 18 hours a day, have cost the country $200m (£165m) in lost revenue.
Newly appointed Energy Minister Fortune Chasi believes
there is no quick fix.
Despite a recent 300% tariff hike, electricity is still
heavily subsidised by the state. Zesa, the state power firm, is virtually
broke.
"The anger and frustration is understandable and
should translate into creating a viable entity," Mr Chasi tells the BBC.
"Our tariff is still below cost-effectiveness and we
have a delicate commodity. That is why I keep saying people should pay their
bills: Zesa is owed $1.2bn.
"Everyone from every sector owes money."
Economists say inflation is likely to continue to surge.
Local production remains low, causing an over-reliance on imports and a
shortage of foreign currency.
Government spending, meanwhile, remains excessive and
investor confidence low.
The authorities have introduced austerity measures - these
lowered subsidies on fuel, power and healthcare and drove up prices for
Zimbabweans. President Mnangagwa believes this is essential to boost
production.
"It hasn't been easy. Good ground worth celebrating
has been covered with your help," the president said in a televised
address to the nation, marking a year since his election victory.
"A solid foundation has been laid for more and greater
gains in the future," he continued, "and while the beginning may be
painful, the middle- to long-run will deliver more jobs, economic stability,
growth and development."
Austerity bites
Critics of President Mnangagwa say he is flying blind, and
rashly implementing ill-considered policies without consultation. They believe
he is leading Zimbabwe back to 2008.
That was the year Zimbabwe hit the record books. Inflation
peaked at 500bn%. Bank notes from that time, including one for 100 trillion,
are now collectors' items.
Economist Godfrey Kanyenze says the country could be on the
brink of hyperinflation.
"Hyperinflation is when month-on-month inflation rises
above 50%," he explains. "In June it was at 39%. We are currently 11%
short of hyperinflation, so this is chronic high inflation."
He doesn't believe Zimbabwe's government has a workable,
long-term plan for recovery. BBC
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