Zimbabwe’s economic collapse almost complete

By Lance Guma
07 January 2008

Zimbabwe’s drift towards total economic collapse is edging closer to reality as just about all sectors of the economy go into meltdown. Doctors, nurses, magistrates, prosecutors and other court staff are on strike while the entire population battles a crippling cash shortage that has denied people access to their own money in the banks. This week began with reports that banks were dealing with an additional problem. They are now unable to dispense money because their machines rely on electricity.

The queues for cash have also cost the lives of many, including former journalist Kevin Johnson. He was seriously ill with a chronic illness but his family was unable to access money to pay a private clinic that was demanding Z$600 million upfront. The electricity cuts also meant he was unable to get a blood transfusion as the blood supplies had gone bad, because of the lack of power for refrigeration. His wife called her brother in-law to arrange for a bed without a deposit at St Annes Hospital in Harare, but by this was time Mr. Johnson had bled to death.

Tourist destinations have not been spared. Those staying in hotels in the lower Bvumba area have been without electricity since the 9th December. Local papers say the theft of cables has made things worse and there is a real likelihood the entire mountain range and surrounding areas could be without electricity very soon. Hotels battled to honour bookings made by their customers for the Christmas and New Year holidays.

Millions of urban residents in the country are also faced with chronic water shortages as the Zimbabwe National Water Authority (ZINWA) battle to maintain or even repair pumping equipment for water supplies. Even the heavy rains wreaking havoc across the country have not helped reduce the water problems. Foreign currency shortages have meant ZINWA is unable to import much needed chemicals to treat water and as a result there is not enough clean drinking water to service the major towns. There are reports of dysentery and diarrhoea outbreaks in areas like Mabvuku and Tafara and these are spreading to other parts of Harare.

Meanwhile magistrates who went on strike demanding better pay and working conditions are reported to have rejected a 600 percent pay rise offer from government. The state owned Sunday Mail reported that magistrates and prosecutors were set to earn between Z$316 million and Z$1 billion a month, following their 3 month strike which began in October. The Secretary in the Justice Ministry David Mangota said they would pay the staff half their salaries mid-month and the remainder at the end of the month. But our correspondent Simon Muchemwa says the state media reports are misleading. The strikers say only regional magistrates have been given awards in that region, while the junior magistrates have been offered Z$150 million a month. They say this offer is not enough.

As if to highlight the depth of the crisis the pay increases awarded to civil servants by government have coincided with a hike in the cost of utility bills. Zimbabwe’s hyper-inflation means any pay rises are meaningless, within days.