The Zimbabwean economy seems to go from bad to worse, as authorities leave behind a trail of policy missteps.



The government announced late on Friday that monetary transactions on mobile-based money platforms are suspended, potentially impacting up to 80% to 90% of all transactions.



This unprecedented move leaves Zimbabweans stranded with almost no mode of transacting. Residents with money stored in any of these mobile providers need to visit a local bank to liquidate their accounts.



The most prominent players in the industry include EcoCash, One Money, MyCash, and Telecash. EcoCash is the biggest non-banking financial institution and holds no less than ZWL$8bn on its mobile money platform.



In a statement following the announcement, the company urged its 10 million users, most of whom do not have bank accounts, to remain calm.



The government is accusing mobile money providers of economic sabotage and malpractice, which have led to the creation of a parallel central bank.



The government’s animosity towards non-banking financial institutions is nothing new.



Reserve Bank of Zimbabwe (RBZ) Governor John Mangudya voiced his support for the government and issued a monetary policy statement over the weekend specifying revised conditions to the ban.



“The unprecedented measures have been necessitated by the need to protect consumers on mobile money platforms which are being abused by unscrupulous and unpartisan individuals and entities to create instability and inefficiencies in the economy,” the statement read.



Meanwhile, trade on the Zimbabwe Stock Exchange (ZSE) is also suspended and investors are frantic and deeply concerned over what has happened to their money.



This is a blow for Zimbabweans who usually turn to the local bourse to safeguard the value of their money against rising inflation and currency depreciation.



Yet not long ago, officials were still upbeat about the Victoria Falls Stock Exchange (VFEX) and the foreign investment it would unlock.



On Tuesday, June 30, the RBZ proceeded to hold the second weekly foreign exchange (FX) auction.



Last week saw Zimbabwe’s currency peg to the US dollar end after the weighted-average rate was calculated at ZWL$57.4/$, thereby setting the new exchange rate. At the latest auction, this rate was calculated at ZWL$63.7/$.



The Zimbabwean dollar has been in freefall since the start of the year as a lack of confidence erodes its value. We believe this trend is likely to persist while foreign exchange reserves remain at distressingly low levels.



The latest move is simply another desperate attempt to enforce the use of a currency with no credibility.



We have stated before that the economy is in a state of dysfunction, characterised by irrational policy measures.



The banning of mobile money services further exacerbates confusion and turmoil in Zimbabwe’s monetary environment.



Jee-A Van Der Linde, Economist

Zimbabwe tightens coronavirus lockdown in capital Harare as cases hit 203

Hello?  – How Zimbabwe’s got the wrong number when it comes to mobile money

HARARE (Reuters) &#8211; Zimbabwe on Friday suspended trade on the stock exchange and mobile phone-based payments to address what President Emmerson Mnangagwa’s government called “criminality and economic sabotage”.



The decision to suspend mobile payments will hit the economy hard as more than 80% of all transactions are conducted on phones due to a shortage of banknotes, according to central bank data.&nbsp;



In a statement on Friday, government spokesman Nick Mangwana said the move, which takes immediate effect, was part of efforts to arrest the slide of the Zimbabwe dollar, which has sharply devalued since its reintroduction last year after a decade of dollarisation.



“Government is in possession of impeccable intelligence which constitutes a prima facie case whereby the phone-based mobile money systems of Zimbabwe are conspiring, with the help of the Zimbabwe Stock Exchange, either deliberately or inadvertently, in illicit activities that are sabotaging the economy,” the statement said.



The suspension of all mobile payments and the stock market was meant to allow “intrusive investigations”.



The government says mobile payment platforms were major drivers of a roaring foreign currency trade outside formal banking channels, with multiple listed stocks such as Old Mutual providing proxy exchange rates implied by their prices on foreign bourses such as the London Stock Exchange.



On Tuesday, Zimbabwe’s central bank began weekly foreign currency auctions in a bid to draw scarce foreign currency into the formal market.

Emmerson_Mnangagwa_(2019-01-15)

Zimbabwe suspends stock exchange, mobile payments over ‘economic sabotage’

HARARE (Reuters) &#8211; <a href="https://www.cnbcafrica.com/videos/2020/05/27/this-african-fintech-is-helping-zimbabweans-in-sa-send-groceries-home-during-covid-19-lock-down/">Zimbabwean</a> troops and police on Tuesday tightened the <a href="https://www.cnbcafrica.com/videos/2020/05/28/how-to-address-africas-ventilator-shortage/">coronavirus</a> lockdown in the capital Harare, blocking many cars and buses from entering the central business district as cases of infections increased.



But the main opposition Movement for Democratic Change (MDC) said President Emmerson Mnangagwa’s government was trying to suppress protests over a worsening economy and to stop MDC supporters from gathering at the courts where the lawyer for its leader was due to appear after being arrested on Monday.



Coronavirus infections have more than tripled to 203 in the last few days. Mnangagwa had eased the lockdown since it was first imposed at the end of March.



On Tuesday, however, police and soldiers turned away many commuters and cars, including those with work letters, at check points leading into town except critical staff like health workers as well as state employees, witnesses said.



“Please note that it is not everyone who should be in the CBD (central business district),” the police said in a statement.



A Reuters witness saw a group of soldiers and police in downtown Harare ordering people to leave the city centre and shops to close.



By lunchtime <a href="https://www.cnbcafrica.com/east-africa/2020/05/28/how-covid-19-is-impacting-funding-for-african-start-ups/">businesses</a> in downtown had shut, but in another part of town, where government offices are located, some businesses, including supermarkets and banks, were open.



The state-owned Herald newspaper, which reflects government thinking, published pictures on its website of people walking back home on foot.



There were no similar reports from other cities.



The MDC has accused the government of using curbs on movements to persecute its members and sees a political motive behind Monday intensifications of the lockdown.



“So if this is about Covid-19 why is it only happening in Harare? This appears to be more about politics than medicine or health,” MDC senator David Coltart wrote on Twitter.



(Reporting by MacDonald Dzirutwe; Editing by Angus MacSwan)



This article was first published on Reuters Africa <a href="https://af.reuters.com/article/topNews/idAFKBN2391O3-OZATP">https://af.reuters.com/article/topNews/idAFKBN2391O3-OZATP</a> and is republished with its permission.



For more coverage on COVID-19 visit: <a href="https://www.cnbcafrica.com/covid-19/">https://www.cnbcafrica.com/covid-19/</a>

By Louw Nel – Political Analyst



On Tuesday, May 26, authorities in Zimbabwe charged three activists from the opposition Movement for Democratic Change-Alliance (MDC-A) with breaching the country’s lockdown regulations, nearly two weeks after they were allegedly abducted and brutalised after being taken into police custody.



The female activists, including Member of Parliament Joana Mamombe, were arrested at a roadblock in Harare on May 13 as they were returning from a protest in the Warren Park area.



They say that they were then taken to a remote area where state agents beat and sexually assaulted them before leaving them on the side of the road near Bindura, some 90km north of the capital, two days later.



The Zimbabwe Republic Police (ZRP) has confirmed that the activists were taken into custody but denies any knowledge of the alleged abduction.



All three remain hospitalised.



Minister of Justice Ziyambi Ziyambi has accused the activists of inventing the story to deflect from their violation of lockdown regulations.



Prosecutors say that the activists were attending a protest gathering of more than 50 people – in contravention of lockdown regulations – and have accused them of trying to “promote public violence or breaches of peace”.



Two journalists who tried to visit the women in hospital were also arrested and charged with breaking lockdown regulations – among them the MDC-A’s youth leader in Harare, Stanley Manyenga.



The decision to charge the women with breaching lockdown regulations has been condemned, with Zimbabwe Lawyers for Human Rights (ZLHR) and Amnesty International both describing the decision as an effort to intimidate the women, calling instead for an investigation into their abduction.



The accused’s onerous bail conditions have also been questioned, including the requirement that they report to their local police station three times daily.



Diplomatic envoys in Zimbabwe, including the heads of mission from the EU, Norway, Switzerland, UK, and US, co-signed a statement saying they expect “a swift, thorough and credible investigation into the abduction and torture of opposition Member of Parliament Joana Mamombe, along with Cecilia Chimbiri and Netsai Marova… [and that] the perpetrators of heinous acts of this kind and other human rights violations need to be identified and prosecuted”.



Opposition forces in Zimbabwe have questioned the government’s response to Covid-19, suggesting that the widespread deployment of police and military personnel and strict lockdown measures have been used to crack down on and stifle dissent.



The 21-day countrywide lockdown, introduced on March 30, was extended indefinitely on May 16. Heavy-handed enforcement of lockdown restrictions has been widely reported, with the Zimbabwe Human Rights NGO Forum saying on May 22 that 245 violations had been recorded since the start of lockdown.



The coalition of 20 rights groups has petitioned the minister of home affairs and the police commissioner to investigate what they describe as “escalating human rights violations”.



The abduction of the MDC-A activists has raised alarm in a country where the targeted harassment – or worse – of opposition forces was commonplace during the regime of former President Robert Mugabe.



The trend seems to be continuing under his successor, Emmerson Mnangagwa, with state agents still being accused of extrajudicial actions, presumably with the knowledge of their superiors.



The decision to charge the activists suggests that authorities are intent on continuing their harassment of opposition forces.



More protests against food shortages, such as the event attended by the activists, are likely in the coming weeks and we expect these to be met with a heavy-handed security force response.



For more coverage on COVID-19 visit: <a href="https://www.cnbcafrica.com/covid-19/">https://www.cnbcafrica.com/covid-19/</a>

Op-Ed: Zimbabwean opposition activists charged following their own abduction

By Thandi Tobias



In its fight against the spread of COVID-19, our continent faces a massive challenge that requires unprecedented levels of unity and coordinated action. To prevail, we have to grasp without hesitation what the World Health Organization (WHO) has described as a ‘window of opportunity’ while it remains open for us to do so.



While our continent is home to many of the world’s fastest developing nations, it is also home to some of the most vulnerable. It is a known fact that the high prevalence of malnutrition, anaemia, malaria, HIV/AIDs, and tuberculosis among our people, puts our continent in an unfortunate position; one in which high death rates happen easily. That is why the country’s leadership had to act swiftly and decisively.



As Africans, it is essential that we focus on coordinated efforts in our shared battle against COVID-19.&nbsp; Africa spans both hemispheres and consists of 55 member states. Our combined efforts and determination can and will see us through this challenging period. The second and follow-up virtual meeting of the ‘AU Bureau of Heads of State and Government’, held in April 2020, ended with solid plans for a more unified African response to the COVID-19 pandemic. In addition to presentations by Dr Tedros Adhanom Ghebreyesus, Director-General of WHO, Dr John Nkengasong, Director of Africa Centres for Disease Control and Prevention (CDC), the Bureau was also addressed by French President Emmanuel Macron.



All the heads of state in attendance expressed a shared apprehension over the unknown impact this virus stands to have on the health of citizens of Africa, as well as the unforeseeable economic impact it will have. The Heads of States and Governments discussed three broad themes and agreed to proceed to pursue several key solutions:



<h2 class="wp-block-heading">1.&nbsp;&nbsp;&nbsp; Stronger inter-continental links for greater African solidarity</h2>



There was unanimous agreement on the urgent need to establish better humanitarian and trade corridors among countries; something they agreed would require cohesive efforts from all participants.&nbsp; All decisions would be in the best interest of the continent and its people.&nbsp; This will also enable Africa to speak with one voice on Africa’s priorities. African leaders also agreed on the need for an immediate lifting of all economic sanctions imposed on Zimbabwe and Sudan, as no African state would be left alone to fight against the spread of COVID-19. It was resolved that without the burden of sanctions, Zimbabwe and Sudan would be better positioned to save lives.



<h2 class="wp-block-heading">2.&nbsp;&nbsp;&nbsp; An aggressive medical response</h2>



Africa requires the production of medical supplies and equipment. The heads of states and governments called for international cooperation, support towards up-scaling local production of needed Personal Protection Equipment (PPEs), medical supplies such as masks, gowns, ventilators, and other support devices, all of which are greatly needed in the continent.



Furthermore, the AU commended rapid action initiatives such as the ones coordinated by Ethiopian Prime Minister Abiy Ahmed and the Jack Ma Foundation. Working with the World Food Programme and Africa CDC, they mobilised and distributed over one million diagnostic tests, six million masks, and 600,000 PPE items to all African Union member states in less than a week.



<h2 class="wp-block-heading">3.&nbsp;&nbsp;&nbsp; Fundraising efforts</h2>



The AU is taking a multi-stakeholder approach towards raising needed financial and other forms of international support to strengthen the fight to flatten COVID-19 growth in Africa. The gathered Heads of States and Governments also noted the progress made in operationalising the African Union’s COVID-19 Response Fund, which was established on in March 2020. Members pledged the sum of US$12.5 million and an additional US$4.5million to the Africa CDC.



<h2 class="wp-block-heading">Africa’s Call</h2>



To win the battle against COVID-19, protect its citizens and, by extension, citizens of the world, the AU calls for the support pledged by the G20, the World Bank and the International Monetary Fund (IMF) to be delivered without further delay. It also calls for these institutions to review their disbursement policies to unlock higher levels of flexibility, speed, and Africa’s access to the IMF’s Special Drawing Rights (SDRs). In addition, the AU also supports the call for a comprehensive stimulus package for Africa and the immediate suspension of interest payments on Africa’s external public and private debt. Such measures would benefit all Africans, as greater fiscal space would be created to resource the battle against COVID-19.



In conclusion, allow me to remind you all, of our South African concept of Ubuntu – I am because you are – which also rings true in the hearts of all Africans and, I hope, inspires people around the world. It is in the spirit of this shared humanity that Africa’s call is made for the global support of our resilient, yet fragile continent.



*Thandi Tobias is the Chairperson of Brand South Africa; the official marketing agency of South Africa with a mandate to build the country&#8217;s brand reputation and to improve its global competitiveness.

International travel for South Africans is now allowed, this is how it will work

Op-Ed: Africa’s people-led approach to combat COVID-19 shows signs of progress and leadership

<div style="max-width: 700px;">
 <video-js
 data-account="1571595826001"
 data-player="c0AOssA7"
 data-video-id="6156571056001"
 data-embed="default"
 controls=""
 data-application-id=""
 class="vjs-fluid"></video-js>
</div>
<script src="//players.brightcove.net/1571595826001/c0AOssA7_default/index.min.js">
</script>
According to the World Bank 40 to 60 million people worldwide will experience extreme poverty in 2020 due to the Covid-19 pandemic. The estimates show that 23 million people that will be hit by poverty will be in Sub-Saharan Africa and 16 million in South Asia. Joining CNBC Africa to unpack Zimbabwe’s Covid-19 response is Batanai Matsika, Head of Research at Morgan &#038; Co.

COVID-19 worsens Zim’s economic challenges

By Jee-A Van Der Linde – Economist



The World Bank will grant Zimbabwe $7m to help fight the economic damage caused by the Covid-19 pandemic.



The Washington-based lender said it will mobilise $5m from its Global Financing Facility Trust Fund towards the outbreak and redirect roughly $2m from its ongoing Idai Recovery Project to communities in need.



The aid comes at a crucial time and despite Zimbabwe being in debt arears with numerous multilateral and bilateral lenders, which renders the country ineligible for new loans or debt forgiveness.



At the beginning of April, Finance Minister Mthuli Ncube wrote to the IMF as well as other leading international lenders, pleading for financial assistance. With more than half of the population in need of food aid and the entire world facing a health pandemic, conditions in the country have reached an acutely distressing point.



Zimbabwe can no longer go at it alone.



After having settled $107.9m of debt with the IMF in 2016, the country is still indebted to the World Bank, African Development Bank (AfDB), and European Investment Bank (EIB), while significant amounts are also owed to other creditors, both within the Paris Club and outside.



The debt situation is precarious, with total external debt (largely in the form of government debt) having ballooned to over $8bn, according to the Ministry of Finance (MoF).



The reasons for this come down to years of economic mismanagement and frequent policy errors.



That said, Zimbabwe is eager to restructure and repay its debt obligations in order to become eligible for new loans. Minister Ncube has previously said that settling arrears will help elevate the country’s credit standing, but a series of external shocks and policy missteps have impeded the process.



When considering Zimbabwe’s tremendous financing needs, the $7m – ZWL$125m at the current 25:1 fixed exchange rate with the greenback – is but a drop in the proverbial bucket and falls at the lower end of what the IMF and World Bank have afforded other African nations.



Although any bit of aid will help at this stage, Zimbabwe’s problems are far from over and it will need more assistance going forward.



NKC’s analysis shows that Zimbabwe will be among the continent’s main economic laggards this year, joining the ranks of oil producing nations which have arguably been the hardest hit by the global pandemic.



Simply put, Zimbabwe’s economy will suffer a very deep contraction in 2020, akin to levels last seen over a decade ago.



That said, conditions can only deteriorate so far and serious intervention will need to take place at some point.



For more coverage on COVID-19 visit: <a href="https://www.cnbcafrica.com/covid-19/">https://www.cnbcafrica.com/covid-19/</a>

Op-Ed: World Bank opens its purse to Zimbabwe, but hands out pennies

HARARE (Reuters) &#8211; The World Bank will grant $7 million to Zimbabwe to help it fight the new <a href="https://www.cnbcafrica.com/videos/2020/04/30/morgan-co-on-covid-19-its-impact-on-zimbabwes-economy/">coronavirus outbreak</a> that is expected to worsen an already struggling economy and <a href="https://www.cnbcafrica.com/news/2020/04/02/the-fight-to-keep-4-1-million-zimbabweans-fed-in-covid-19-lockdown/">food crisis</a>, a bank spokesman said on Wednesday.



Zimbabwe is more than $1.2 billion in arrears to the <a href="https://www.cnbcafrica.com/videos/2020/04/09/world-bank-considers-debt-relief-for-africa-to-fight-covid-19/">World Bank</a>, <a href="https://www.cnbcafrica.com/videos/2020/04/09/afdb-announces-10bn-war-chest-to-fight-covid-19/">African Development Bank</a> and European Investment Bank, making it ineligible for funding or debt forgiveness from global lenders.



The World Bank spokesman said that while Zimbabwe and other countries indebted to the lender could not access regular financing, they could get money from its trust funds to fight the coronavirus that has slowed down the <a href="https://www.cnbcafrica.com/videos/2020/05/05/covid-19-what-the-world-can-learn-from-africa-in-dealing-with-a-pandemic/">global economy</a>.



“The bank’s senior management has underlined the need for additional trust fund financing to ensure that Zimbabwe and the small group of other countries in arrears can receive support as part of our global effort to help countries respond to the COVID-19 crisis,” the spokesman said.



Zimbabwe would get $5 million from the World Bank’s global financing facility trust and another $2 million would be diverted from <a href="https://www.cnbcafrica.com/videos/2020/05/04/how-the-covid-19-pandemic-is-taking-its-toll-on-african-livelihoods/">funds meant to help the country recover</a> from a devastating cyclone in 2019.



“We recognise this is a global crisis that impacts every country and we cannot leave anyone behind in our response,” the spokesman said.



Zimbabwe’s finance minister wrote to the International Monetary Fund and other lenders last month warning that the country was being driven towards a <a href="https://www.cnbcafrica.com/videos/2020/05/04/covid-19-lockdowns-when-is-the-right-time-to-reopen-economies/">health and economic catastrophe</a> by the coronavirus pandemic because its debt arrears mean it cannot access foreign financing.



The impoverished southern African nation has only recorded 34 cases and four deaths from the coronavirus but analysts say its fragile health system will not be able to handle any surge in infections.



(Reporting by MacDonald Dzirutwe; Editing by Mark Heinrich)



This article was first published on Reuters Africa <a href="https://af.reuters.com/article/investingNews/idAFKBN22I1QX-OZABS">https://af.reuters.com/article/investingNews/idAFKBN22I1QX-OZABS</a> and is republished with its permission.



For more coverage on COVID-19 visit: <a href="https://www.cnbcafrica.com/covid-19/">https://www.cnbcafrica.com/covid-19/</a>

Zimbabwe gets $7m COVID-19 lifeline from World Bank

<div style="max-width: 700px;">
 <video-js
 data-account="1571595826001"
 data-player="c0AOssA7"
 data-video-id="6153130657001"
 data-embed="default"
 controls=""
 data-application-id=""
 class="vjs-fluid"></video-js>
</div>
<script src="//players.brightcove.net/1571595826001/c0AOssA7_default/index.min.js">
</script>
African countries have been praised for their response to the COVID-19 pandemic but there are still concerns for the more fragile economies and development markets such as the commodity based economy of Zimbabwe. Joining CNBC Africa to unpack more on the economic and social impact of the COVID-19 pandemic on Zimbabwe is Batanai Matsika, Head of Research at Morgan &#038; Co.

Morgan & Co on COVID-19 & its impact on Zimbabwe’s economy

How COVID-19 is impacting diaspora remittances to Africa

By Chris Bishop



“A hungry man is an angry man,” says the former guerrilla fighter with a steely glare followed by a shake of the head as he gleaned the thin pickings of a dry maize field on communal land just outside the capital Harare. As Zimbabwe turned 40 this weekend, I harked back to his soulful, disappointed, eyes on independence day, April 18,back in 1994, a few weeks after I had landed in Africa as a television journalist.



I will never forget Israel Mandere, who must be in his sixties now, yet clearly the internet – if ever it knew his name – has. I can still see him sweating in that field under the bright autumn sunshine as part of a struggling cooperative of war veterans scratching a living in the dust.



“No money, little food, tattered clothes,” says Mandere shaking his head in anger and stuttering with emotion.



“Ï am very embarrassed about that one.”



Two decades earlier, Mandere strapped an AK47 on his back to fight operations in eastern Zimbabwe from guerrilla camps, in the bush, across on the other side of the border in Mozambique as part of the ZANLA guerrilla forces that helped put President Mugabe in power. He joined, as a teenager and trained with thousands of comrades in Ethiopia to fight a small, yet tough, Rhodesian army bristling with modern weapons and vast firepower. The promise from his leaders – many of whom ended up in the cabinet – was a brighter tomorrow for the black majority.



In the early, euphoric, days this seemed so for many black Zimbabweans who found rights in a country where they had grown up feeling like foreigners. Black Zimbabweans took up top jobs in the land the commanding heights of the economy on a &nbsp;secure bedrock of robust infrastructure. Investment and flowed in the wake of the first elections in and land with universal suffrage.. Politically Zimbabwe campaigned for change in Africa as part of the Non Aligned Movement in the former frontline states.



Yet the economy was mismanaged and struggled to increase the standard of living for the growing population. In the early 80s the government turned on its own people in Matabeleland and more than 20,000 people died – as a journalist, I saw some of the shallow graves with my own eyes. More than a decade on, it choked me that relatives knew where their loved ones were buried but were merely too afraid of authority to go and visit them.



I was so angry that the crew and I went to a church in Bulawayo to question one of the politicians who oversaw the killings, the late Enos Nkala, who has become a pastor. &nbsp;Seriously, his people said the man himself was praying and couldn’t talk to us right now. We waited and Nkala slipped from the building and his accountability. &nbsp;One of many examples I saw of how the people of &nbsp;power in &nbsp;Zimbabwe often had that air of impunity. &nbsp;



Then there was the ham fisted way productive farm land was taken over and often left in ruins. It is a shame that Mandere’s grandchildren can only hear stories about Zimbabwe being the bread basket of southern Africa. It is a bitter irony also that many children &nbsp;and grandchildren of those who risked their lives fighting to free Zimbabwe were on the streets to howl President Mugabe out of power in November 2017.



I called one of my old friends and colleagues in Harare on independence day to see how it went. He admitted it hadn’t been a very celebratory 40th birthday party with the economy down after 20 days of COVID-19 lockdown.



“Zimbabwe at 40?” says he,” It is like you have gone to school, grown up, got married, had children and then you wake up at 40 to find you are undernourished.” &nbsp;



Now, I worked in Zimbabwe, as a journalist, and for years I travelled to almost every corner, small town &nbsp;and village to report stories and talk to people. I drank masese, danced in shebeens and met tens of thousands of Zimbabweans of all creeds and colours – good and bad, &nbsp;For every bad person there were a hundred good.



“This one is free,” people used to say in the dance halls late at night when they were asked why I was there.



&nbsp;All I want is the best for Zimbabwe, but I fear how the country will be when it turns 50.

Comment :Zimbabwe at 40 subdued and disappointed

Zimbabwe turned 40 on April 18. Amid the economic struggles of this week there was talk of the country phasing out the US dollar – a move denied by the Reserve Bank of Zimbabwe on its website.



CNBC Africa asked John Robertson, an independent economist based in Harare who has spent more than half a century studying the economy, for some background on currency issues in Zimbabwe. We also asked him was the old Zimbabwe dollar really stronger than the US dollar at independence in 1980? These were his thoughts:



“The value of every currency in the world is supported by, and dependent on, the productive capacity of the country in relation to the productive capacity of its trading partners. The capacity measurement has to properly take into account the volume and quality of the goods and services produced as well as their cost competitiveness. In Zimbabwe, in those first years after 1980, we used to produce commodities efficiently enough to make profits from their sale abroad, even though the revenue we could get for them was set by international market price mechanisms. For our consumer goods exports, such as clothing, footwear, a wide range of processed foods, transistor radios, school textbooks and dozens of other things, we successfully competed for sales on foreign markets. We also exported processed raw materials, such as steel sections, cotton yarn, shredded and blended tobacco, roasted coffee beans, sawn timber, dimension stone, irrigation pipes and couplings, plus lots of other components, all in competition with other suppliers.



However, government interference caused lots of cost increases. Minimum wages were doubled and frequently adjusted, devaluations were necessary to permit the Zimbabwe dollar earnings to continue covering rising costs, license fees were charged and project approvals were needed for any company wanting to make a change to its mix of products. Import licenses were confiscated and given to emergent business people, who re-sold them to the companies from which they had been taken, adding to costs. The whole investment climate became difficult. The IMF tried to intervene with its Structural Adjustment Programme, but that supported retailers much more than manufacturers as, after ESAP, whatever anyone wanted could be imported?



Then we had Land Reform. The collateral value of farmland was reduced from billions of dollars to zero. Skilled farmers were dispossessed, small-scale farmers were given the land free, but land with no market value, over which the farmers had no security of tenure, was of no value as collateral for bank loans. The small-scale farmers were occasionally lucky enough to feed their families and have small surpluses for sale, but they never grew enough the feed the country. We have had to meet a big bill for imported food every year since Land Reform.



&nbsp;Even now, nothing has been proposed that offers the slightest improvement to our shocking investment climate. Government vigorously protests that it is making major policy changes, but they absolutely refuse to accept that it has brought productive capacity to its knees and has destroyed the country’s relationships with the rest of the world. We cannot pay our debts, cannot attract investment and can now meet very few of our own needs.



&nbsp;Government wants to be completely in charge of all investment decisions and seems to believe that it can direct business sectors to simply produce more. As a result, we now have an economy that cannot support a currency, the value of which is stable and worthy of respect. The black-market rate for the US dollar is now Z$49 to one, the inter-bank market rate is Z$25:US$1. It seems that the currency deals carried out are to externalise US$, not place orders for imports that might be impossible to sell. March inflation has just been published &#8211; the annual rate is 676,4% and prices went up 26,6% in one month. We need dramatic changes to restore confidence, but ZanuPF has no intention of changing anything.



&nbsp;On your last question, the value of a Zimbabwe dollar in 1980, it is true that you needed US$1,60 to buy one Zimbabwe dollar. That exchange rate is often misinterpreted as evidence that the Zimbabwe dollar was stronger than the US dollar. That is not true. The size of a unit of measurement does not indicate strength or weakness. An inch is not stronger than a centimetre, a metre is not stronger than a yard. When Rhodesia was in the Sterling Area, the Rhodesian pound was worth the same as a British pound. The pound weakened during some difficult years for the UK in the 1970s, and Rhodesia was overcoming sanctions so well that the Rhodesian dollar, which started off as equal to ten shillings, appeared to be strengthening against a weakening pound. So relative values come into it. The pound soon recovered under Margaret Thatcher and at that time, you needed US$2,40 to buy one pound. Today you can buy a pound for US$1.24.



&nbsp;The question of how practical it is to put our faith in our own currency calls for recognition of all these points. What we have done, and the policies are still being vigorously defended, has destroyed any chance of getting the confidence and investment inflows needed to rebuild productive capacity, so a currency based on such a weakened economy will remain weak as well. And a weak currency will simply keep falling in value. Now that the whole world is in trouble and many other poor countries deserve help much more than we do, Zimbabwe is going to have to wake up to the need for self-help and self-sufficiency very quickly. If we don’t, we will soon be in much more trouble than ever before!” &nbsp;&nbsp;

The birth of Zimbabwe 40 years ago-the days when the Zimbabwe dollar cost $1.60 US Dollars

By Chris Bishop.







There are fears that the scourge COVID-19 virus could leave hunger as well as death and sickness in its wake. The World Food Programme fears that the lockdowns across Africa could paralyse farms and threaten the production of food for hungry millions. It feeds 4.1 million Zimbabweans alone in a massive project that helps an estimated 45 million hungry people across sub-Saharan Africa – that is more than the populations of Zambia, Zimbabwe and Malawi combined. As the lockdowns affect ports and movement, the future holds fears for those delivering the food. “Most of the food in Africa is produced by small farmers, most of them women. For that to happen we need to make sure seeds are delivered to farms and planted, transport needs to stay on the move across the country and markets where farmer can buy supplies s can stay open,” says Lola Castro WFP’s Regional Director for Southern Africa. “We really need to maintain our normal distribution maybe in the future especially on the small holder farmers who must have access to markets. We may see more people needing food if the disease gets worse.” Castro warned in a webcast, arranged by the World Health Organisation, that undernourished people and those with HIV-Aids were prone to COVID-19. She said that the WFP was asking for $450 million to buy up the crop currently being harvested to keep supply up and the region’s hungry fed. “Food security in rural and urban populations needed to be looked at differently …We have to make sure your most vulnerable are supported like people with HIV-Aids .Governments are putting measures for that.” says Castro. Another problem for food security is the fact that lockdown has closed down tens of thousands of schools from Lilongwe to Lagos. For many hungry school children in Africa, school is only place they can be sure of a hot meal. “Many countries have closed schools and hundreds of millions of children are not going to school,” says Matshidiso Moete, the regional director for Africa for the World Health Organisation. Governments across Africa are going to have to make some very tough decisions when considering how long to keep the lockdown in place.

Mozambique records first COVID-19 death

The fight to keep 4.1 million Zimbabweans fed in COVID-19 lockdown.

HARARE (Reuters) &#8211; Zimbabwe began a 21-day nationwide lockdown on Monday, following neighbour South Africa in implementing some of the world’s toughest anti-coronavirus measures likely to hurt an economy already suffering hyperinflation and food shortages.



But unlike in South Africa, where many citizens defied calls to stay indoors with some clashing with security forces at the weekend, Zimbabweans mostly stayed home. The country has recorded just seven cases and one death. 



Central Harare’s streets were deserted. Banks, government offices and businesses were shut. Zimbabwean police, who have a reputation for brutality, manned checkpoints on highways into Harare and questioned the few motorists, a Reuters reporter saw. 



In the poor township of Mbare in Harare, vegetable markets and the inter-city bus rank were closed and rows of wooden stalls used by vegetable vendors abandoned. 



At Nenyere Flats in Mbare, six men sat outside their flat drinking gin. Fox Dhalu, a 36-year-old father of three, complained that some shops had hiked prices over the weekend. 



“Seriously, does this pandemic also stop people from moving around? The government gave us short notice to prepare for this coronavirus lockdown. We are very angry about this,” he said. 



Shops have been exempted from closing but most had not opened by mid morning on Monday. 



A few blocks from the police station in the middle class suburb of Mabelreign, 73-year-old grandmother Angela Nerwande sat on an improvised stool selling vegetables on her stall. 



“What will my grandchildren eat if I stay at home? I have to continue working,” she said. “At my age I am not afraid of dying. If they want to arrest me let them come.” 



<h3 class="wp-block-heading">WATER CANNONS </h3>



In a statement, Police Spokesman Assistant Commissioner Paul Nyathi said: “The law is very clear, those who don’t comply will be arrested and prosecuted.” 



Many of South Africa’s most vulnerable have struggled to maintain the lockdown, and people in poor, overcrowded townships have continued to go out and mingle, in some cases prompting security forces to use water cannons to force them inside. 



State broadcaster SABC aired videos of soldiers humiliating people, making them do squats and pulling one along the ground with a wire. Defence Minister Nosiviwe Mapisa-Nqakula told the channel they should not use excessive force. 



“We want our security services to partner with our communities to stop the spread of coronavirus,” she said. 



In a bid to ease the impact on some of its poorest, South Africa relaxed restrictions on some public taxis during rush hour and made early social security payments to the elderly. 



South Africa has 1,280 cases, and two deaths, as of Monday compared with an African total of 4,894. 



In West Africa, in Nigeria’s two main cities &#8211; Lagos and the capital, Abuja &#8211; those who could afford to stock up queued at shops ahead of a 14-day lockdown starting at 11 p.m. (2200 GMT). 



(Additional reporting by Alexis Akwagyiram in Lagos; Writing by Tim Cocks, Editing by William Maclean)



This article was first published on Reuters Africa <a href="https://af.reuters.com/article/topNews/idAFKBN21H1W0-OZATP">https://af.reuters.com/article/topNews/idAFKBN21H1W0-OZATP</a> and is republished with its permission.



For more coverage on COVID-19 visit: <a href="https://www.cnbcafrica.com/covid-19/">https://www.cnbcafrica.com/covid-19/</a>

Zimbabweans enter coronavirus lockdown amid severe economic crisis

<div style="max-width: 700px;">
 <video-js
 data-account="1571595826001"
 data-player="c0AOssA7"
 data-video-id="6143445241001"
 data-embed="default"
 controls=""
 data-application-id=""
 class="vjs-fluid"></video-js>
</div>
<script src="//players.brightcove.net/1571595826001/c0AOssA7_default/index.min.js">
</script>
This week Zimbabwe suspended the transfer of local shares in dual-listed companies to foreign bourses for the next 12 months. Joining CNBC Africa to unpack more on this and the developments of the declaration of COVID-19 being a national disaster in Zimbabwe is Batanai Matsika, Head of Research at Morgan &#038; Co.

Zim declares COVID-19 a national disaster

JOHANNESBURG, March 19 (Reuters) &#8211; South African authorities announced on Thursday they would erect a fence along its border with Zimbabwe to prevent illegal immigrants from entering and spreading the coronavirus. 



President Ramaphosa has already ordered 35 out of 53 land entry points closed. 



“This measure will &#8230; not be effective if the fences at the border are not secure, which in many places, they are not,” Public Works Minister Patricia de Lille said in a statement. 



The planned fence is to be erected on either side of the Beitbridge Land Port of Entry, in order to “ensure that no undocumented or infected persons cross into the country.” 



“All 40 kilometres (25 miles) of fence will be finished within one month. Local labour will be sourced by the contractor,” she added.



South Africa has long sought to reduce illegal immigration from Zimbabwe, which it sees as a threat to local jobs in a country with unemployment of around 30 percent. 



Countries around the world have been cancelling flights, banning travel from certain countries and tightening controls at borders in order to prevent the virus’s spread. 



Ministers announced other measures aimed at containing the spread of the coronavirus while limiting the impact of its side effects such as panic buying in supermarkets.



(Reporting by Tim Cocks; editing by David Evans)



This article was first published on Reuters Africa <a href="https://www.reuters.com/article/health-coronavirus-safrica-zimbabwe-idUSL8N2BC6PD">https://www.reuters.com/article/health-coronavirus-safrica-zimbabwe-idUSL8N2BC6PD</a> and is republished with its permission.

S.Africa to erect 40km fence on Zimbabwe border as coronavirus measure

HARARE (Reuters) &#8211; Zimbabwe’s year-on-year inflation was 540.16% in February, statistical agency Zimstat said, as the southern African nation resumed publishing annual consumer price data it suspended last year. 



On a month-on-month basis, prices were up 13.52% during the same period compared to 2.23% during the previous month. 



The central bank forecasts the annual inflation rate to fall to 50% by the end of the year but analysts say price pressures will remain elevated due to a weak exchange rate and shortages of food following a drought. 



(Reporting by MacDonald Dzirutwe; Editing by Kim Coghill)



This article was first published on Reuters Africa <a href="https://af.reuters.com/article/investingNews/idAFKBN2130X7-OZABS">https://af.reuters.com/article/investingNews/idAFKBN2130X7-OZABS</a> and is republished with its permission.

Zimbabwe

Hello? – How Zimbabwe’s got the wrong number when it comes to mobile money

Zimbabwe suspends stock exchange, mobile payments over ‘economic sabotage’

Zimbabwe tightens coronavirus lockdown in capital Harare as cases hit 203

Op-Ed: Zimbabwean opposition activists charged following their own abduction

Op-Ed: Africa’s people-led approach to combat COVID-19 shows signs of progress and leadership

COVID-19 worsens Zim’s economic challenges

Op-Ed: World Bank opens its purse to Zimbabwe, but hands out pennies

Zimbabwe gets $7m COVID-19 lifeline from World Bank

Morgan & Co on COVID-19 & its impact on Zimbabwe’s economy

How COVID-19 is impacting diaspora remittances to Africa

Comment :Zimbabwe at 40 subdued and disappointed

The birth of Zimbabwe 40 years ago-the days when the Zimbabwe dollar cost $1.60 US Dollars

The fight to keep 4.1 million Zimbabweans fed in COVID-19 lockdown.

Zimbabweans enter coronavirus lockdown amid severe economic crisis

Zim declares COVID-19 a national disaster

S.Africa to erect 40km fence on Zimbabwe border as coronavirus measure

Zimbabwe inflation 540.16% year-on-year in February – Zimstats

News Tips

Advertise With Us

Zimbabwe

Hello? – How Zimbabwe’s got the wrong number when it comes to mobile money

Zimbabwe suspends stock exchange, mobile payments over ‘economic sabotage’

Zimbabwe tightens coronavirus lockdown in capital Harare as cases hit 203

Op-Ed: Zimbabwean opposition activists charged following their own abduction

Op-Ed: Africa’s people-led approach to combat COVID-19 shows signs of progress and leadership

COVID-19 worsens Zim’s economic challenges

Op-Ed: World Bank opens its purse to Zimbabwe, but hands out pennies

Zimbabwe gets $7m COVID-19 lifeline from World Bank

Morgan & Co on COVID-19 & its impact on Zimbabwe’s economy

How COVID-19 is impacting diaspora remittances to Africa

Comment :Zimbabwe at 40 subdued and disappointed

The birth of Zimbabwe 40 years ago-the days when the Zimbabwe dollar cost $1.60 US Dollars

The fight to keep 4.1 million Zimbabweans fed in COVID-19 lockdown.

Zimbabweans enter coronavirus lockdown amid severe economic crisis

Zim declares COVID-19 a national disaster

S.Africa to erect 40km fence on Zimbabwe border as coronavirus measure

Zimbabwe inflation 540.16% year-on-year in February – Zimstats

News Tips

Advertise With Us

Newsletters