Everything pointing to another catastrophe

THIS week, I took time to review piles of newspapers containing my coverage of the first phase of waves of Zimbabwe’s protracted crises from

2003.

What I found was terrifying – this country has gone through a lot in 20 years — but it has been unfortunate to be captained by people who either don’t care, or take a deliberate back seat in order to create avenues for looting.

Following events of the past few weeks, where the defenceless domestic currency has literally surrendered its ability to withstand shocks, it is sad to see that Zimbabwe is headed towards another brutal crisis.

But the Finance minister Mthuli Ncube’s brutal response to price hikes — opening the floodgates for inputs to swamp the markets and force firms to cut prices — could even complicate an already difficult situation.

He had left the country by 2008 when industrial capacity plummeted to between zero and 10%. So, he didn’t feel the pain.

But those who were in Zimbabwe at the time know how difficult it is to be surrounded by rolling yards of corporate graveyards. The man has weirded ideas. Only two months ago, he massaged inflation figures by giving the public what he wants them to know, not the truth.

He is already giving the impression that inflation has been tamed to double digit rates.

Instead, the rate is rioting at triple digit ranges.

The Confederation of Zimbabwe Industries estimates the figure at not less than 130%.

It is not in the numbers that Zimbabweans feel the pain of mismanagement, which has reduced them to beggars in a country that only 24 years ago, was an African pride.

The pain, which can spiral into severe discontentment, is felt on the breakfast or lunch tables.Suddenly, food is short for Zimbabweans.

An overflow of money supply and barrelling inflation witnessed in the past two years has pushed authorities to the corner. Ad hoc policies are pushing us to the swamps again.

Politicians can deny this.But by the time they realise it, it may be late to mend the faultiness.They must spring into action now.

We have not talked about it yet, but at this rate, zeroes could be creeping back into the currency.

Soon, computer systems will crush, and banking sector will return to its yesteryear complications.

The possibility of losing, or decommissioning, our first currency since 2008 will be high.

From 2007 until 2008, 25 zeros were loped off several ranges of Zimbabwean notes, which were introduced at breakneck speed by the central bank, as we watched and reported.

When dollarisation came, many people, including respected analysts and bankers, thought that Zimbabwe had learnt from its troubled past, and such deliberate mistakes would never be repeated again.

The central bank then introduced ‘bearer cheques’, which were approved by the late president Robert Mugabe.

Signs of another dance with weird a currency have already returned.

This time, we are working with Gold Coins and other forms of tokens, recently introduced to pacify rioting money supply growth, inflation and prices.

Until the end of July 2007, the highest notes were the ZW$1 000, ZW$10 000, and ZW$100 000.

On August 1, 2007, the central bank surprised us with a ZW$200 000 note.

It marked the start of a series of banknotes that were issued in succession rapidly including ZW$250 000, ZW$500 000 and ZW$750 000, which hit the markets on December 20 2007.

The ZW$1,5 million and ZW$10 million notes were unveiled on January 16 2008.

On April 4 2008 the central bank issued the ZW$25 million and ZW$50 million notes.

The ZW$100 million and ZW$250 million notes came on board on May 5 2008 and the ZW$500 million and ZW$5 billion, ZW$25 billion and ZW$50 billion notes were added on May 20 2008.The ZW$100 billion note was issued on July 21 2008.

From late 2007 to early 2009 each and every one of Zimbabwe’s estimated 10 million people became trillionaires.Prices were also running into trillions of Zimbabwe dollars.

I am not seeing any reason why we cannot be billionaires in a few months, and later, trillionaires.

The truth is, we cannot take anymore of this.

It is too much!