#ZimbabweShutdown - CNBC Africa

#ZimbabweShutdown

Financial

by Yafika Chitanda 0

Photo: Wikimedia

The ticking time bomb in Zimbabwe has gone off. Youth say enough is enough; civil servants take to the streets, over unpaid wages, and fight riot police.

The stay-away comes days after cross border traders and taxi drivers displayed their anger by burning warehouses and blocking roads.

“There are a lot of problems going on in this country and people in the different parts are now standing up to get these sorted. Almost everything is shut down, we are just sitting at home,” says Grace Mariwo-Matambo an eyewitness in Harare.

John Robertson an Independent Economist in Harare says Zimbabwe’s current situation is due to the neglect of property rights.

“Government evicted good farmers, which halted the industry and production and led to factories shutting down,” he surmises.

This has led to Zimbabwe abolishing its currency and turning to the South African rand, the US dollar and the United Kingdom’s pound, now the problem is that there is a shortage of dollars, he adds.

“Zimbabwe has a serious shortage of money” - the longer the bank queues the less likely you will get any money, Robertson postulates.

The economic unrest in the country has been long coming because due to the Zimbabwean dollar losing power; the taxes were lowered leading to a lack of money to pay civil servants, Robertson says.

He believes that the government now does not have as much power as it had in the previous years, as the forces, that they use to curb these strikes are affected by the lack of wage payments.

 

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