Page 65 - Msingi Afrika Magazine Issue 27 Final
P. 65
Economy
the billions externalized to Instead, the excess value is time that happens, our local
non-tax havens like South used to buy US dollars or currency suffers yet another
Africa, Canada, Australia, gold from the black market blow and no amount of gold
EU and the UK. and as illustrated above, backed currency will change
Even more interesting is those are taken out of the this trend.
according to CEPII, from economy and kept outside;
where we got the export creating a perpetual shortage The cycle will never stop
data for the graph below, and demand for capital and until we address the mindset
Zimbabwe’s exports over dollars in the economy, which of the Zimbabwean which is
the past 20 years have been fuels inflation, depreciates the root cause of our problem.
under-declared by a factor local currency and forces We are a selfish people and
of between 15% and 25%. people not to want to save in this selfishness doesn’t start
According to the RBZ, a falling local currency. now because it was the root
Zimbabwean exports in cause of the decline of the
2022 were $7.2 billion but As a result, as a nation, we Mutapa Empire, which in its
according CEPII’s tally of could sell $100 billion in dying days saw Hamuziviishe
Zimbabwean imports from resources and still have a the right-hand man of Chief
receiving nations, it was falling currency because forex Chipfunhu Mugabe, sell our
$8.4 billion and Zimbabwe’s will continue to be scarce as gold, Zimbabwe birds and
biggest trading partner was the unending hoarding and other sacred relics to Posselts
not South Africa but Dubai externalization will continue, for pieces of cloth. Not too
which bought $4.48 billion unless Zimbabweans start long after that, Zimbabwe
of Zimbabwean gold. enhancing Zim dollar and was colonized by the British
This means that Zimbabwean U.S. dollar bank savings, South Africa Company.
exports are under declared pension savings, equity
and the country is a money holding, gold reserves, This same problem is what
spinner that is being harvested property investments, or causes Zimbabweans to
by foreigners and locals, as reinvestment in capital exchange gold, diamonds,
most excess value created accumulation. our profits, future and labor
in the country is not being for pieces of cotton paper
reinvested in the country Currently, when local known as the US dollar.
to build capacity; employ companies import GMO There is something about
more people; import new grain, wheat, SIM cards, Zimbabweans and cloth
machines, new cellular base inputs, lubricants, chemicals, (machira) that would see us
stations, or new technology fertilizers etc, they simply externalize our future for
to enhance production of overprice the imports to machira.
more local products that enable a large percentage of
would give more value to our the foreign currency taken As illustrated in my inflation
Zimbabwe dollar. out, to stay overseas. Each graphs over the past few
ISSUE 27 | MAY 2024 65
