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Analysts predict economic struggles for Zimbabwe in 2023

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BY CHRIS MURONZI

In December inflation in Zimbabwe peaked at 280 percent, one of the highest rates globally. The Zimbabwean dollar also weakened, trading at 930 to the US dollar on the parallel market – a steep decline after two months of relative stability at 700 to $1.

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This led to plummeting living standards in the Southern African country where 7.9 million people, amounting to half of the population, fell into extreme poverty between 2011 to 2022.

Ahead of the crunch 2023 presidential elections, proposed currency reforms by the incumbent Emmerson Mnangagwa’s administration have already been put on hold.Unsurprisingly economists, political scientists and multilateral institutions are sounding the alarm that the trend of declining economic fundamentals could continue till next year.

During a recent visit to the country, the International Monetary Fund (IMF) predicted a further fall in the gross domestic product (GDP) by 3.5 percent in the coming year due to among other things, “renewed domestic and external shocks (inflation surge, erratic rainfall, electricity shortages, and Russia’s war in Ukraine) … adversely affecting economic and social conditions.”

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“These multiple shocks will continue to weigh on Zimbabwe’s growth prospects,” the IMF said in December.Odds stacked against economy

Analysts say years of economic mismanagement under Zimbabwe’s first leader, Robert Mugabe and later under his predecessor Emmerson Mnangagwa, have stymied the economy, further exacerbated by hyperinflation and the currency devaluing rapidly.

For Gift Mugano, a visiting professor of economics at the University of Zimbabwe Business School, the country’s 2023 economic outlook is gloomy.

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“The year 2023 will be very dire, driven by spill-over effects of difficulties we encountered in 2022,” he told Al Jazeera.

ture, the local currency is expected to continuously weaken against leading currencies this festive season and into the next year.

In November, inflation stood at 255 percent, one of the highest in the world. But Mugano predicts that inflation and exchange rate could more than double by the second quarter of 2023.

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Furthermore, there are fears that while the central bank continues to dictate the exchange rate, there is no hope for convertibility determined by free market conditions.

bility through the liberalisation of the foreign exchange market, ensuring the central bank does not print money through quasi-fiscal operations, maintain tight monetary policy stance and wind down the use of gold coins.

But economists doubt authorities will heed the advice.

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“Zimbabwe is entering a very volatile social and economic period which needs level political minded leaders to handle this with care but I don’t see [the authorities] having that capacity to think straight in terms of management of the affairs of Zimbabwe,” Mugano said.

The war in Ukraine and high inflation have also affected the agriculture sector. In Zimbabwe which relies on fertiliser imports from Ukraine, prices shot up from $28 to approximately $55 per 50-kilogramme (11-pound) bag, pushing bread, an everyday staple above the reach of many residents.

There is also the matter of power cuts nationwide occasioned by reduced electricity generation at its hydroelectric power plant, Kariba Power Station, owing to low dam water levels.

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As a result, industries and households have been bearing the brunt of rolling power outages that last for as much as 20 hours on a daily basis.Authorities hope refurbishment work at its Hwange Thermal Power Plant will add 300 megawatts to the national grid by the end of the first quarter of 2023.

Zimbabwe, which has traditionally relied on power imports from South Africa, Mozambique and Zambia, is now in a quandary because the region is also grappling with an enormous power deficit.

Politics and policies

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A lot also hinges on the looming general elections.Mnangagwa, who has been president since November 2017, is expected to put a bid in for a second term but is facing stiff opposition.

Opposition leader Nelson Chamisa rallied the Citizens Coalition for Change (CCC) to win 19 out of the 28 seats in the parliamentary by-elections. Even though the ruling Zimbabwe African National Union-Patriotic Front (ZANU-PF) still holds a parliamentary majority, analysts said CCC’s showing might be a foretaste of how it might perform in the 2023 presidential election.

In February, 37 opposition supporters were arrested at a rally and there have been other incidents of violence against dissidents in recent months.

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Independent political analyst, is almost certain of heightened political instability in the months leading to the polls and after.

Given the high political stakes of the coming election, Mnangagwa seems set to pull all the stops to retain the presidency, he said.

“I think 2023 spells political doom for Zimbabwe as there is a high likelihood of politically motivated violence in by-elections but likely to intensify towards the local council, parliamentary and presidential polls,” he told Al Jazeera.

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“I think ZANU-PF will attempt as much as possible to stop any campaigns by the opposition be it in urban and rural areas using the security structures and also party militias,” Mukundu added. “This is a zero-sum political game and election for Mnangagwa that he wants to win at any cost.”

The Crisis Coalition of Zimbabwe, a grouping of more than 80 non-governmental organisations in the country, has gone as far as to warn that the coming election could become the bloodiest in Zimbabwe’s history.

“In fact, as we edge towards 2023, we think it (political violence) is going to [get much worse],” Crisis Coalition of Zimbabwe’s Chairman Peter Mutasa said.

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Analysts say Chamisa and the opposition will be hoping that the electorate can vote to show sufficient disappointment with the levity that the government has treated them.

And there is historical precedent to give them hope.

In the 2008 election, Mugabe lost to the late opposition leader Morgan Tsvangirai when a historic hyperinflation of more than 1,000 percent wrecked the economy.

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As it was then, the economy is again in freefall. If the Mnangagwa administration wins, Mugano warns, it could use economic policies at will to bend the situation to ZANU-PF’s advantage.

“If Zanu wins the poll, for instance, they will continue with their command economics and will continue on that path of runaway inflation,” he said-AL JAZEERA

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Jamaica reigns supreme as South Africa and Botswana athletes fall short in dramatic 100m showdown

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BY TIMES LIVE

Jamaica returned to the top of the 100m podium at the world championships in Tokyo on Sunday, but South Africa — even with two dogs in the fight — missed out yet again.

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Gift Leotlela finished fifth in 9.95 sec and veteran Akani Simbine ended seventh in 10.04 while Oblique Seville clocked a 9.77 personal best to become the first Jamaican to win the global 100m crown in 10 years after Usain Bolt at Beijing 2015.

His countryman, Olympic silver medallist Kishane Thompson, was second in 9.82 and brash American Noah Lyles, the Olympic and defending champion, third in 9.89.

The final featured two Jamaicans, two Americans and two South Africans, but it was the two traditional powerhouses that dominated the podium.

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Looked at another way, the final had four men from the Americas against four Africans, and with Kenny Bednarek ending fourth, it was the men from the Americas who took the first four spots.

Letsile Tebogo of Botswana, the Olympic 200m champion and the 100m silver medallist from Budapest 2023, was disqualified for a false start. Nigerian Kayinsola Ajayi was sixth in 10.00.

Yet, had Leotlela repeated the 9.87 he ran in the heats on Saturday he would have taken third. Still, the 27-year-old, who has struggled with injuries for much of the past four years, can be happy with three consecutive sub-10 runs at the showpiece.

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But Simbine, who took the 60m bronze at the world indoor championships in March, looked as if he had mistimed his season.

He went on the indoor circuit early in the year in a bid to improve his start, which meant sacrificing an important training block that he subsequently switched to June and July.

The 31-year-old was on fire before the break, but since returning he never looked sharp.

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He’s competed in seven major 100m finals — three Olympics and four world championships — and never reached a podium. Having previously finished fourth or fifth, this was also his worst finish in a final.

In the semifinals earlier, just like it happened at the Olympics on the same track four years ago, Simbine had to wait to find out if he had won a spot in the final after finishing third in the first heat in 9.96.

Only the first two of the three heats advanced automatically, with the two fastest losers going through.

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Leotlela ended third in the final semifinal in 9.97.

But still, two South Africans in the final should augur well for the 4x100m relay next weekend.

The only other South African in a medal race on the day, Adriaan Wildschutt, didn’t have the kick at the tail end of a slow 10,000m, crossing the line in 28 min 59.47 sec to finish 10th to match his position at last year’s Paris Olympics.

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Frenchman Jimmy Gressier won a sprint finish in 28:55.77, ahead of Ethiopian Yomif Kejelcha (28:55.83) and Andreas Almgren of Sweden (29:56.02).

Earlier, Zakithi Nene, the fastest man over 400m in the world this year with his 43.76 from May, won his heat in 44.34 to advance to Tuesday’s semifinal.

But American Jacory Patterson, No 2 on the list, threw down the gauntlet by jogging over the final metres of his heat to clock the fastest time of the heats, 43.90.

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Khaleb McRae, the second of three American qualifiers, was second quickest in the heats in 44.25.

Then came Nene, and behind him lurk other dangermen, like Botswana’s Bayapo Ndori (44.36) and Rusheen McDonald of Jamaica (44.38), who limped off the track.

Countryman Lythe Pillay delivered a solid performance to advance to the semifinals with a 44.73 season’s best, finishing second in his heat behind Jereem Richards of Trinidad and Tobago, fourth at last year’s Olympics.

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But with the US getting four men into the next round and Botswana and Britain three, the South African 4x400m team will have their work cut out next weekend to make the relay podium.

Miranda Coetzee and Shirley Nekhubui failed to advance beyond the women’s 400m heats and Brian Raats was unable to clear the bar in the qualifying round of the men’s high jump.

SOURCE| TIMES LIVE

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National

Econet unveils new home and business data packages

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BY NOKUTHABA DLAMINI 

Econet Wireless Zimbabwe has launched new ‘Smart-Suite’ Fixed Wireless Access (FWA) data packages consisting of six plans tailored to address the data needs of different customers – from the ‘SmartLite’ plan, offering 50GB of data (best for light users) and retailing for $30, to ‘SmartPro’, offering 800GB of data (ideal for established SMEs) and retailing at $170.

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In between are ‘SmartPlus’, offering 75GB at $40 (targeting families); ‘SmartMax’, offering 100GB at $50 (ideal for bigger homes and freelancers); ‘SmartFlex’, offering 200GB at $70 (tailored for flexible scaling and small offices) and ‘SmartUltra’, offering 400GB at $99 (suitable for heavy, multi-users and SMEs).

Introducing the SmartSuite packages on multiple media channels, Econet said the new data packages will be easy to upgrade and will offer flexible plans “that grow with your needs”.

To ensure optimized and stable performance within a customer’s premise and network coverage area, the new packages will be geo-locked to a customer’s location, and accessible using a 4G or 5G CPE (customer premises equipment) router.

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Geo-locking – a term used to describe the restriction of access to a product or service to a specific geographical location – ensures customers get the best possible usage experience while enabling service providers like telcos and Internet Service Providers (ISPs) to ringfence critical resources such as bandwidth, making certain they are utilized by the intended users.

Econet said the SmartSuite packages will be available through its Econet Shops across the country where the company enjoys the largest network coverage, adding that CPE routers will also be available for sale in its shops – starting from US$48 per unit. The company noted though that customers will be free to use their existing CPEs, or to purchase CPEs anywhere elsewhere, as long as they were compatible with Econet’s SmartSuite product specifications.

Econet, which is the largest mobile network operator in Zimbabwe, enjoys the widest 4G (LTE) network coverage in the country. With 300 5G base stations deployed in the country’s major cities and towns, it is by far the market leader in 5G technology in Zimbabwe.

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The launch of the new SmartSuite packages follows a notice to customers of the former SmartBiz packages from Econet a month ago, notifying them that it would soon launch new data packages offering more choice and flexibility, and tailored to different customer needs.

Customers registered to the old SmartBiz service and who already have a CPE, can simply dial *143, choose a package of their choice and credit their new SmartSuite package. New subscribers to the SmartSuite packages will however need to buy a new SmartSuite SIM from an Econet Shop, as well as a CPE, for them to be able to connect to the new packages. If they own a CPE that meets Econet’s specifications, they will be able to use it for their SmartSuite package.

Along with the new SmartSuite data packages, Econet continues to offer its all its customers the choice of a wide range of mobile data products, accessible ‘on the go’ throughout the country via the customer’s mobile device or smartphone.

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In the community

Population Services Zimbabwe to offer free family planning services in Nkayi

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 BY WANDILE TSHUMA 

Population Services Zimbabwe (PSZ) is set to provide free family planning services in Nkayi District from next week

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The initiative which will run from 15-18, aims to enhance access to comprehensive reproductive health care and empower individuals and couples to make informed choices regarding family planning.

The outreach will kick off on Monday, September 15, at the Sivalo Rural Health Centre (RHC) and its outreach site. This will be followed by activities at various locations each day:

Tuesday, September 16:
Jabulisa at 9:00 AM
Ngabayide at 2:00 PM
Wednesday, September 17:
Sebhumane at 9:00 AM
Nesigwe RHC at 10:00 AM
Thursday, September 18:
Mateme RHC at 9:00 AM
Sembeule at 10:00 AM

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The services offered during this campaign include:

Loop insertion and removal
Implant insertion and removal
Depo Provera injections
Secure and control pills
Emergency contraceptive pills
Counselling on reproductive health issues

 

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