Retired 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
They were hopeful that the ousting of Mr 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 and the government says it does not have enough foreign currency to buy it. Rolling power blackouts are also back.<\/p>\n
Authorities blame ageing power plants and low electricity tariffs as well as the worst drought in 40 years that 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 has forced the price of goods up and added to inflation.<\/p>\n
\u2018No quick fix\u2019<\/p>\n
Business representatives say power cuts, sometimes lasting up to 18 hours a day, have cost the country $200m (\u00a3165m) in lost revenue.<\/p>\n
Newly 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
The authorities have introduced austerity measures \u2013 including reduced subsidies on fuel, power and healthcare that drove up prices for Zimbabweans. President Mnangagwa believes these are 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<\/p>\n
Critics 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 does not believe Zimbabwe\u2019s government has a workable, long-term plan for recovery.<\/p>\n
\u201cMost developed countries undertake social impact analyses. Before you implement a policy, you project its likely social impact, then you prepare for it,\u201d Kanyenze says.<\/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
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 do not want to hear that before things get better for Zimbabweans, they are likely to get worse.<\/p>\n","protected":false},"excerpt":{"rendered":"
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 that increasing inflation has robbed them both of a comfortable retirement. A year ago Teddie\u2019s monthly pension was […]<\/p>\n","protected":false},"author":84,"featured_media":12367,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3,7],"tags":[83,538,31,149],"class_list":{"0":"post-12365","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-all-news","8":"category-files","9":"tag-economy","10":"tag-files","11":"tag-mnangagwa","12":"tag-president"},"yoast_head":"\n