For the past year, Zimbabwe has been hit with its highest inflation
rate yet. The inflation rates surged past its 1,000% mark in April of
this year and has continued soaring to its present state of 1,200%,
thus the country is suffering severe shortage of food, fuel and foreign
currency. This means that goods are now 13 times more expensive now
than they were twelve months earlier.
This situation came about because of some poor decisions the ruling
government and the President; Robert Mugabe took that has backfired
drastically. Some of the decisions taken were to seize control of farm
lands owned by white farmers which triggered a drop in production and
export of agricultural goods. The infrastructure of the country is
coming to a crumbling halt as there is never a regular supply of water
and electricity.
The cost of food is always increasing; a loaf of bread goes for about
Z$ 80,000 (Zimbabwean dollars) which is about 79US cents. A carton of
juice goes for about Z$500,000 and a kilo of beef up to about Z$ 1
million. The daily Herald, the national newsprint costs Z$ 80,000. The
rate of unemployment is at its highest whereby two out of three
Zimbabweans are unemployed.
Business quotations don’t last for more than two days which means that
prices of goods and services can double overnight. The government
struggles to pay its civil workers, and over four million people are
faced with food shortages.
The
International Monetary Fund (IMF) and other international bodies
have called for major reforms but the president, Mr. Mugabe is
unwilling to accept outside help or interference claiming domestic and
foreign enemies is responsibility for the country’s difficulties.