Once solid Zimbabwe economy is in free fall

The once formidable economy has been lurching from one crisis to another.

Source: Once solid Zimbabwe economy is in free fall – The East African

A customer strolls past fruit and vegetable shelves while shopping in a groceries store in Zimbabwe’s capital Harare on July 15, 2019. PHOTO | AFP

Another looming drought, worsening foreign currency shortage and 18-hour rolling power cuts are set to push Zimbabwe’s troubled economy closer to the precipice this year, experts warn.

The once formidable economy has been lurching from one crisis to another since the turn of the Millennium when the government started repossessing fertile land from the white minority for redistribution to landless blacks.

A severe drought during the 2018/19 farming season, described as the worst dry spell in a century, saw the economy contract by nearly seven per cent and the country’s sole source of hydropower—Kariba Dam—virtually dry up.

In Summary

  • The once formidable economy has been lurching from one crisis to another since the turn of the Millennium.
  • Zimbabwe remains mired in crisis as investors remain unconvinced that Harare is ready to embrace reform.
  • Aid agencies estimate that 2.2 million Zimbabweans in urban areas are at risk of starvation and 5.5 million others in rural areas do not have adequate food due to drought.

Halfway through this 2019/20 season, the country received very little rainfall, signalling another drought.

Listed companies such as Delta Corporation and Econet Wireless Zimbabwe in their results for the year ending December, said their viability was threatened by the widespread power cuts and foreign currency shortages.

Delta, Zimbabwe’s largest drinks maker, reported a 48 per cent drop in half-year beer sales compared with the same period in 2018, after output and distribution were constrained by shortages of fuel and electricity.

COMMENTS

WORDPRESS: 4
  • comment-avatar
    Ndonga 2 years ago

    How true.
    And all because we have been made fools of by people we welcomed as our liberators.
    They helped us liberate us from one problem to give us problems much, much bigger.
    And in this process, they made themselves rich beyond their wildest dreams.
    How short sighted we were.
    And for how much longer must we keep paying that “debt”.

    • comment-avatar
      Flick 2 years ago

      I totally agree, the problems you have now must make your previous problems seem like a holiday camp. The irony is that had you not chosen the mugabe route in 1980 you most likely would have a fully capable and responsible government, with you guys in the majority, today. As you say, when will it all end.

  • comment-avatar

    What a pity that the ‘Liberators’ could not have accepted what they had archived and then put the county on solid and prosperous path. They could have walked down the street with their heads held high. Unfortunately like other liberating movements the attraction of never handing the wand over is totally against their ethos. Mugabe was an opportunist, he played a minor role in the struggle and then cleaned up for himself, his typist woman and this has continued. There is no debt being paid, it’s now “winner takes all”.

  • comment-avatar
    njalo 2 years ago

    For another twenty-five years.
    Brace yourselves.

    Pasi ne corruption, pasi ne nepotism, pasi ne tribalism, pasi ne ZANU-PF.
    Pamberi ne US dora.