Zim veers closer to brink

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lsuacner

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http://www.news24.com/News24/Africa/Zimbabwe/0,,2-11-1662_2144452,00.html
Harare - Zimbabwe's economy veered closer to the brink on Monday with no end in sight to chronic shortages of staple foods and gasoline, and predictions of a standstill in routine business within days.

Police and government inspectors continued cracking down on shopkeepers and sales managers accused of defying orders to slash prices by half in a desperate attempt to halt rampant inflation.

Shelves were bare of cornmeal, bread, meat and other staples, and witnesses said many shops and suppliers were cleaned out by convoys of ruling party supporters coming in after police and inspectors began enforcing the price cuts on June 26.

Economist John Robertson said: "The crunch can't be far off."

Fuel stocks run out

Factories, stores and gas stations had been unable to replace goods sold at below the original cost. The sudden drop in prices had sparked panic buying, stampedes and near-riots by impoverished Zimbabweans.

Fuel stocks had run out, putting an end to the long lines of cars at gas stations.

On Monday, the government ordered private commuter buses to cut fares by three-fourths, promising bus owners they would be able to buy subsidized fuel from the state oil procurement agency.

But, many ignored the directive and simply abandoned their routes. Businesses reported higher absenteeism, with workers failing to arrive at their jobs.

One industrialist said: "We are incurring huge losses. We can't go on like this for much longer. We won't be able to pay our VAT (value added tax), which runs into the billions each month."

He said: "We'll have to lay off quite a number of our people very soon. We've shot ourselves in the foot this time."

1 300 businesses fined

He asked not to be identified. President Robert Mugabe warned on Friday that the government would target unco-operative managers and seize factories that scaled down their operations.

Police said that more than 1 300 businesses had been charged and fined for the past two weeks for defying orders to slash prices in half or hoarding goods.

Court officials said several of 33 top company executives arrested in recent days were fined up to Z$100m ($6 600).

Robertson, the economist, predicted that shortages would worsen dramatically across the board.

He said: "Retailers who can't recover the money they spent on their goods are not going to carry them anymore, and manufacturers who are not allowed to charge more than their production costs are going to stop making them."

According to Robertson, by the end of next week, "we won't have much mobility anywhere and we will have run out of options" as gasoline tanks run dry and gas stations and stores go out of business.

Last week, the government announced it was reviving the long-defunct State Trading Corporation to run businesses that had collapsed or were commandeered.
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lol.
 
Better get ready for the other half of Zim population that is not already here to come flooding across the border.
 
chiskop said:
lol? :confused:

Glad you find it funny.
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I find it funny, because Mugabe had it coming, he was told by many people he was screwing his country up and now its over. The Zimbabweans have not done anything to change their plight and now their only way out is a revolution.

I find the whole thing funny, especially because so many people supported Mugabe and called any people who opposed him racist.

The same thing will happen in RSA, by that time I will not be living in RSA and it won't affect me or my close family. I would laugh then to.
 
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And a revolution will fix things in what way?
No immediate cure for all zim's problems. Going to take years to get it back up and running
 
Removing Mugabe is the first step. The man sabotages the economy, if RSA bails Zim out but keeps Mugabe we would need to bail Zim out for the next 20 years till Bob dies.
 
lsuacner said:
I find the whole thing funny, especially because so many people supported Mugabe and called any people who opposed him racist.
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So true and sad :o

I bet we even have a few on this forum. ;)
 
I wish it would fall in the brink already. Sometimes only from complete ruins can the rebuilding begin and the mistakes be seen...
 
So much for the last couple of year's silent diplomacy. Hope our comrades in parliament learns from this...
 
I will join the ranks of those who find this funny.
Yes it is sad for those who live there and want change, but all in all its the biggest "FU" of all time.
 
South Africa is concerned about the economic meltdown in neighbouring Zimbabwe, Foreign Affairs Minister Nkosazana Dlamini-Zuma said on Tuesday.

"We are concerned in general about the economic situation which is deteriorating overtime," she said.
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Now they're concerned? :D
 
milano said:
Now they're concerned? :D
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But not too concerned though.

A little concern goes a long way in SA these days. And if the ANC is unconcerned about AIDS, Murder, Rape, Illegal Immigrants etc in South Africa, then imagine how little concern they have for Mugabe ruining Zimbabwe.
 
Yeah maybe the sooner they collapse the better... Its not like they have any proper infrastructure 2 build on at the mo... they can wipe the slate clean.... build up a good foundation and work they way up.... Will be hard times though
 
milano said:
Now they're concerned? :D
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They should be more than just concerned. Their f'n president was tasked with mediating in Zim in an attempt to resolve the crisis. Fat lot of good that's doing. Not exactly the best reflection on T-Bone being fit to govern is it?
 
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