Vesta says it saddens her to see husband Teddie sitting in the same place \u201cfrom morning to night\u201d
\nRetired couple Teddie and Vesta always imagined they would live out their golden years with dignity.<\/p>\n
He is 85, and served one company for 46 years as a cleaner, eventually rising to become a receptionist. Vesta says that increasing inflation has robbed them both of a comfortable retirement.<\/p>\n
A year ago Teddie\u2019s monthly pension was worth $80 (\u00a366), it\u2019s now worth $10.<\/p>\n
\u201cI am saddened when I see my beloved sitting in that corner from morning to night,\u201d Vesta tells the BBC.<\/p>\n
\u201cI would love to give him a banana, an orange or a cool drink. But we can\u2019t afford it. A banana costs $0.40.\u201d<\/p>\n
The signs of a failing economy are everywhere. Supermarket trolleys are hardly ever full these days and shoppers linger, contemplating their purchases.<\/p>\n
The prices of basics like sugar and cooking oil jumped by 200% in the 12 months to June, according to official statistics. So did the price of healthcare.<\/p>\n
Meanwhile the cost of bread has gone up fivefold since April.<\/p>\n
As of June 2019, inflation had already hit 98%. In July, the local currency, the Zimbabwe dollar, was reintroduced after a decade of using the US dollar and other international currencies. Annual inflation then soared to 176%.<\/p>\n
The local currency\u2019s value has continued to drop but the government has now suspended the publication of inflation statistics, citing the change of currency.<\/p>\n
The latest economic crisis comes as Zimbabwe\u2019s President Emmerson Mnangagwa marks his first anniversary as an elected leader.<\/p>\n
Robert Mugabe was ousted when his long-time ally-turned-rival swept to power with the military\u2019s help in November 2017. Elections were held on 30 July the following year.<\/p>\n
President Mnangagwa has dubbed this era the \u201csecond republic\u201d \u2013 one based on recovery, entrenching democracy and reversing decades of ruinous policies under his predecessor.<\/p>\n
Initially many Zimbabweans believed him.<\/p>\n
Zimbabweans were initially hopeful that the ousting of Robert Mugabe would persuade investors to return, bringing much-needed cash injections to local businesses.<\/p>\n
But hope has faded and old ghosts have returned.<\/p>\n
Fuel is in short supply. The government says it doesn\u2019t have enough foreign currency to buy it. Rolling power blackouts are also back.<\/p>\n
Authorities blame ageing power plants, low electricity tariffs as well as the worst drought in 40 years which threatens to shut down the main hydro-electric plant at Kariba.<\/p>\n
A constant hum has returned to the city \u2013 the sound of generators \u2013 as boutiques, restaurants, supermarkets try to stay in business. With a sevenfold increase in fuel costs since January, this too will force prices of goods up and further fuel inflation.<\/p>\n
\u2018No quick fix\u2019
\nBusiness representatives say power cuts, sometimes lasting up to 18 hours a day, have cost the country $200m (\u00a3165m) in lost revenue.<\/p>\n
A child doing his homework by candlelight in Harare, Zimbabwe – June 2019AFP
\nNewly appointed Energy Minister Fortune Chasi believes there is no quick fix.<\/p>\n
Despite a recent 300% tariff hike, electricity is still heavily subsidised by the state. Zesa, the state power firm, is virtually broke.<\/p>\n
\u201cThe anger and frustration is understandable and should translate into creating a viable entity,\u201d Mr Chasi tells the BBC.<\/p>\n
\u201cOur tariff is still below cost-effectiveness and we have a delicate commodity. That is why I keep saying people should pay their bills: Zesa is owed $1.2bn.<\/p>\n
\u201cEveryone from every sector owes money.\u201d<\/p>\n
Economists say inflation is likely to continue to surge. Local production remains low, causing an over-reliance on imports and a shortage of foreign currency.<\/p>\n
Government spending, meanwhile, remains excessive and investor confidence low.<\/p>\n
Zimbabwe’s President Emmerson Mnangagwa lights the Eternal Flame of Freedom during Zimbabwe Independence Day celebrations at the National Sports Stadium on April 18, 2018 in Harare.President Mnangagwa, seen here lighting a torch on independence day, says he wants to deepen democracy in Zimbabwe
\nThe authorities have introduced austerity measures \u2013 these lowered subsidies on fuel, power and healthcare and drove up prices for Zimbabweans. President Mnangagwa believes this is essential to boost production.<\/p>\n
\u201cIt hasn\u2019t been easy. Good ground worth celebrating has been covered with your help,\u201d the president said in a televised address to the nation, marking a year since his election victory.<\/p>\n
\u201cA solid foundation has been laid for more and greater gains in the future,\u201d he continued, \u201cand while the beginning may be painful, the middle- to long-run will deliver more jobs, economic stability, growth and development.\u201d<\/p>\n
Austerity bites
\nCritics of President Mnangagwa say he is flying blind, and rashly implementing ill-considered policies without consultation. They believe he is leading Zimbabwe back to 2008.<\/p>\n
That was the year Zimbabwe hit the record books. Inflation peaked at 500bn%. Bank notes from that time, including one for 100 trillion, are now collectors\u2019 items.<\/p>\n
Economist Godfrey Kanyenze says the country could be on the brink of hyperinflation.<\/p>\n
\u201cHyperinflation is when month-on-month inflation rises above 50%,\u201d he explains. \u201cIn June it was at 39%. We are currently 11% short of hyperinflation, so this is chronic high inflation.\u201d<\/p>\n
He doesn\u2019t believe Zimbabwe\u2019s government has a workable, long-term plan for recovery.<\/p>\n
\u201cBut there wasn\u2019t that preparation, especially in the area of salaries.\u201d<\/p>\n
One new measure however has succeeded in cushioning Zimbabweans against rising costs. Public transport subsidies now mean commuters pay about a quarter of what private sector operators charge for the same journeys.<\/p>\n
Mr Mnangagwa\u2019s supporters argue that it was always unrealistic to expect a quick fix to dampen a crisis that has been decades in the making.<\/p>\n
There is some light, though. Zimbabwe says it has paid some its debt to South Africa\u2019s state-owned power utility, Eskom, paving the way for some imported power.<\/p>\n
Meanwhile the government has warned that the economy will contract this year. This is hardly good news for pensioners like Teddie and Vesta.<\/p>\n
They don\u2019t want to hear that before things get better for Zimbabweans, they are likely to get worse.<\/p>\n","protected":false},"excerpt":{"rendered":"
Vesta says it saddens her to see husband Teddie sitting in the same place \u201cfrom morning to night\u201d Retired couple Teddie and Vesta always imagined they would live out their golden years with dignity. He is 85, and served one company for 46 years as a cleaner, eventually rising to become a receptionist. Vesta says […]<\/p>\n","protected":false},"author":84,"featured_media":8644,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3,7],"tags":[350,83,538,28],"class_list":{"0":"post-12327","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-all-news","8":"category-files","9":"tag-article","10":"tag-economy","11":"tag-files","12":"tag-mugabe"},"yoast_head":"\n