Saturday, July 20, 2013

Zimbabwe

20th July

We are visiting Zimbabwe at a pivotal time in the country's history. The elections scheduled for the end of this month will determine if Zimbabwe has any chance whatsoever to recover from the economic devastation that has wasted this country in the last 10 years.
One can argue the root cause but the wholesale confiscation and reallocation of land was tough but when businesses too were seized and given to government favourites then the course to ruin was set.
The end result has been runaway inflation. Inflation of the kind that makes Argentina's look totally manageable.


There were 9 series of bank notes issued up until 2009 when the Zimbabwean currency was elimianted entirely and the country resorted to using either the US dollar or the SA rand. The later series (above) were issued with expiry dates - as little as two months. The decision to eliminate the currency was made with very short notice. Urban dwellers might have had enough time to exchange their money at a bank but the majority of rural dwellers kept their money under the mattress and were caught completely off guard - most losing their entire savings. This has had a direct effect on the economy and things have ground to a near halt.



There are innumerable evicted former business owners that are now sitting on "the border" poised to resume operation if the opposition party is elected. The main plank in their platform is the stabilization and reissuance of the Zim dollar and the subsequent return of a business friendly environment. Its almost palpable, there is this anticiptory optimism in the air but then this morning president Mugabe's wife annouced the free distribution of 20,000 tons of food. Such benevolence is traditionally the mark of a great leader and will effectively garner the existing government many votes.
The french couple we met at Chobe NP tell the awful story of their rental car trunk being tyre-ironed-open while they were swimming in a lake and then the bad guys robbed them when they reemerged from the water. They were the only folks at Chobe NP without a camera.
Even more unstable times are sure to be here in about 10 days time - how long they last is a good question and highly dependent on who wins the election.


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Location:Victoria Falls, Zimbabwe