Zim’s 15% civil servants’ pay hike a drop in the ocean as prices soar

THE Zimbabwean government awarded civil servants a 15% salary increase this month, but the pomp and fanfare was short-lived when basic commodity prices shot up as businesses sought to cushion themselves against losses.

It is frustrating for Stanley Moyo‚ an economics teacher with five years’ experience.

When he saw a relatively fat balance he thought that he would spend a little before paying his monthly bills, but this was never the case.

“The economy is playing catch-up‚” he says, alluding to the fact that the salary increment did not improve his lifestyle.

Last month, a 2kg packet of rice retailed at around $5 (R63.35) but now it ranges between $7 to $8 (R88.70 to R101.37) at supermarkets. The same packet retails for $5 on the streets but here is the catch: the price is strictly in US dollars – no transfer or ecocash.

“Last month, I spent $150 (R1 900) on basics such as soap and food but the same grocery list costs me about $180 (R2 280) this month.

“It has even eaten into that 15% salary increase. It’s as if nothing was done‚” Moyo said.

Well-to-do banks give clients $300 (R3 800) in local bond notes a week whenever the money is available.

For Finance Minister Patrick Chinamasa the situation has had its advantages.

Responding to questions in parliament, he said Zimbabwe had leapfrogged some African countries in becoming a cashless society.

“We have overtaken Kenya in terms of the number of transactions that are transacted electronically and through RTGS and through mobile‚” he said.

He said of $97-billion (R1.3-trillion) worth of transactions‚ 96% was through electronic means.

“I don’t bother going to spend hours in the bank to withdraw a pittance,” Moyo said.

“Imagine spending production time chasing after money that is not there?

“There are some things that need to be paid in cash, that’s why demand is up and those with money sell it for around 20% for each dollar‚” he said.

For the ordinary man on the street life, has become unbearable and it is set to get worse as foreign currency shortages‚ a shrinking export bill and galloping fuel prices on the global market push up fuel costs. – TimesLIVE