Connect with us

Slider

Analysts predict economic struggles for Zimbabwe in 2023

Published

on

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.

Advertisement

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.”

Advertisement

“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.

Advertisement

“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.

Advertisement

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.

Advertisement

“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.

Advertisement

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

Advertisement

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.

Advertisement

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.

Advertisement

“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.

Advertisement

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.

Advertisement

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

Advertisement
Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

National

RemitHope launches “100 for 10” campaign to raise $100K for grassroots organisations across Africa

Published

on

BY STAFF REPORTER 

RemitHope, a pioneering fintech social enterprise – founded by global philanthropist and social entrepreneur Tsitsi Masiyiwa – has launched a bold campaign to raise US$100 000 in just 60 days for 10 grassroots organisations serving some of Africa’s most vulnerable communities.

Advertisement

The campaign – themed “100 for 10” – seeks to channel life-changing support to organisations on the frontlines of health, education, gender equity and community resilience.

The 10 beneficiaries span nine African countries, including Cancerserve (Zimbabwe), Cáritas Regional De Chokwe (Mozambique), Empowered Girls (Tanzania), Ewang’an Nadede Advocacy Initiative (Kenya), Child Restoration Outreach (Uganda), Hands of Hope (Zimbabwe), Bana Ba Metsi (Botswana), Njira Impact (Malawi), Phelisanong Children’s Centre (Lesotho) and Refugee Children’s Project (South Africa).

“The 100 for 10 campaign is intended to harness the transforming power of small acts of generosity into life-changing opportunities for communities too often overlooked. And every dollar given delivers hope, dignity, and the promise of progress,” Mrs Masiyiwa said.

Advertisement

Running from September 15 to November 15, 2025, the campaign pivots RemitHope’s unique model of transparency, real-time storytelling and direct funding to vetted local partners, ensuring every contribution makes a measurable difference.

In a powerful show of commitment, and leveraging its network of donors and partners, RemitHope has pledged to match every donation given, dollar-for-dollar – effectively doubling the impact.

“If you give $5 it becomes $10, give US$50 and it becomes US$100. This is multiplying hope, opportunities, and futures with every dollar donated,” she said.

Advertisement

The campaign builds on RemitHope’s recent success, where the platform raised over US$81 000 in funding to rebuild Mt Selinda Orphanage in Zimbabwe after a devastating fire swept through the institution.

That effort demonstrated RemitHope’s unique ability to mobilise rapidly, scale generosity and deliver urgent impact.

“We’ve witnessed how extraordinary things happen when people unite in moments of crisis. And now, with 100 for 10, we are channelling that same spirit beyond emergencies, for the long journey of community-led development,” Mrs Masiyiwa said.

Advertisement

RemitHope seeks to unlock the transformative potential of diaspora remittances – redirecting a portion of the more than US$90 billion sent to Africa annually, into structured, high-impact community giving.

By blending trust, technology and targeted generosity, RemitHope aims to mobilise US$50 million for grassroots organisations over the next five years.

Advertisement
Continue Reading

In the community

Avoid nightime movement and stoning elephants, communities told

Published

on

BY NOKUTHABA DLAMINI 

Following a recent spate of human-wildlife conflict incidents, Zimbabwe Parks and Wildlife Management Authority spokesperson Tinashe Farawo has urged communities to exercise caution when encountering wild animals.

Advertisement

Farawo emphasized the importance of avoiding confrontations with elephants, particularly when they encroach into community areas. “We would like to urge members of the communities to avoid throwing stones at elephants,” he said. “This action agitates them, leading to attacks on people.”

In addition to avoiding confrontations, Farawo advised community members to minimize movement at night, as this is when wild animals are most active. “We would like to urge communities to avoid moving at night to minimize casualties,” he said.

Farawo’s comments come after a 79-year-old man from Hwange was killed by an elephant yesterday. The incident is still under investigation by rangers. This is the second fatal incident in the area, following the death of another man who was attacked by an elephant while on his way to work in Hwange town several weeks ago.

Advertisement

 

Advertisement
Continue Reading

In the community

Elephant attack claims life of 79-year-old man in Mbizha

Published

on

BY STAFF REPORTER 

A 79-year-old man from Mbizha village met a tragic end yesterday when he was killed by a stray elephant, according to the Zimbabwe Parks and Wildlife Management Authority.

Advertisement

Zimbabwe Parks spokesperson, Tinashe Farawo, confirmed the incident, saying, “We confirm the sad and unfortunate incident that happened today where a 79-year-old man lost his life.”

The attack occurred four kilometers away from the community, although the exact time of the incident was not disclosed.

This latest incident brings the total number of human deaths caused by wild animals to 40 this year, with over 55 people injured, according to statistics from the Zimbabwe Parks and Wildlife Management Authority as of last month.

Advertisement

Since 2019, over 370 people have been killed and 453 injured in similar incidents, highlighting the ongoing concern of human-wildlife conflict in the country.

 

Advertisement
Continue Reading

Trending

Copyright © 2022 VicFallsLive. All rights reserved, powered by Advantage