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Price Controls and Shortages - Index of articles
Mugabe
puts out the barbecues
Institute for War and Peace Reporting (IWPR)
Meshack Ndodana (AR No. 125, 09-Aug-07)
July 26, 2007
http://www.iwpr.net/?p=acr&s=f&o=337750&apc_state=henh
Weekend life
for the capital's rich is drearier these days, as they're forced
to give up on their marathon barbecues.
Prior to a June
government directive to businesses to slash prices, which effectively
closed butcheries, barbecue sites such as KwaMereki and KwaZiko
would be roaring with life, almost round the clock at weekends.
But meat and
beer shortages have left Harare a much quieter place, with the rowdy
barbecues now a thing of the recent past.
The people who
flocked to these weekend binges were the newly-rich urbanites, who've
emerged in spite of the country's ten-year economic decline.
They included
young business people who have benefited from the black economic
empowerment programme that saw the launch of more than a dozen black-owned
financial institutions such as banks and bureaux de change.
Some were young
politicians in the ruling ZANU-PF party, and their hangers-on, who
do not have to queue for government largesse. They have launched
shelf companies through which they get government tenders as part
of President Robert Mugabe's politics of patronage.
But the majority
were what are referred to as "dealers", who trade in anything
from fuel to foreign currency. They live well from their black market
activities, as the swish cars they drive and the designer clothes
they wear testify.
Close to the
barbecue locations on the outskirts of the city centre are bottle
stores that usually sell ice-cold beer and butcheries, retailing
all cuts of beef, pork and chicken. But now the shelves in these
stores are empty.
Albert Musara,
who runs a small butchery and a bottle store at a popular barbeque
spot, says he is devastated, "I was forced to sell all my meat
at a loss. Now I can't restock. My butchery and bottle store complemented
each other. The more meat I sold for the braais, the more beer was
bought too. Now I have shut my shop and my family has no source
of livelihood."
Barbecues would
begin on Friday after work and continue into the early hours of
Saturday morning. Later in the morning, the men would play or watch
"boozers' football" to "shake them beer-bellies".
Around mid-morning,
the mobiles would begin to ring, signalling that girlfriends, popularly
referred to as "small-houses" or "spices", had
finished their morning chores and were ready to join their menfolk.
The cars would
begin roaring to life to pick up the dates and the barbecuing would
continue until the wee hours of Sunday.
But well-off
Hararians' good times are no more. On June 26, the government launched
Operation Reduce Prices whereby wholesalers and retailers were ordered
to slash the prices of goods by as much as half. The directive turned
out to be tsunami-like in the scale of its devastation. The business
sector is being destroyed. Most firms are only operating because
owners fear Mugabe might nationalise their companies as he has threatened
to do. Many people have lost their jobs.
The blunder
that the Mugabe government made in carrying out the price blitz
was to begin at the top. The authorities forced retailers at the
apex of the food supply pyramid to slash their prices, literally
driving them out of business. Butchers were among those worst hit.
The government
then went downwards to the private abattoirs, who responded by refusing
to slaughter cattle and supply meat at a loss. As a result, they
had their licenses withdrawn and the moribund state-owned Cold Storage
Company, which owns no cattle, was vested with the sole responsibility
of meat provision.
The government
then descended on cattle producers, commercial and subsistence,
and tried to force them to sell their beasts a knock-down prices.
They refused and now the shops are empty.
Operation Reduce
Prices has dramatically changed the lifestyles of almost everyone
but the change has been most painful for the ordinary people.
"There
is nothing in the shops," said Anita Moyo, a housewife in Harare's
medium-income suburb of Parktown. "There is nothing on the
black market either. There is nothing more painful than for a housewife
to fail to prepare meals for the family. My family does not remember
when there was last meat on the table."
Zimbabweans
are now increasingly depending on commodities imported by cross-border
traders who buy the basic foodstuffs - meat is not among them -
from neighbouring countries, particularly South Africa, Mozambique
and Botswana.
Cross-border
trading is a big industry, providing income for thousands of jobless
people. Unemployment in Zimbabwe is estimated at over 80 per cent.
That figure
is partly due to Operation
Murambatsvina (Drive Out the Rubbish), launched by the government
in May 2005 to destroy, military-style, the homes of the urban poor.
UN Habitat estimates Operation Murambtsvina left 700,000 people
without homes and two million without the source of their livelihoods.
Since then, the jobless ranks have been swollen by former civil
servants, especially teachers, who have quit their jobs because
of low wages to become cross-border traders.
But this industry
is also in danger as the government tries to suppress it. Last month,
it announced and then withdrew a directive which would have given
the minister of industry and international trade powers to control
the importation and export of certain goods, including essential
groceries.
Although the
measure was withdrawn, there is no guarantee it will not be re-introduced.
There is widespread suspicion that government wants to control the
supply and distribution of foodstuffs as a political tool to whip
opposition supporters into line.
Trader Maureen
Chihota castigated the government over the directive, "I know
the withdrawal is temporary. This government will stop at nothing
to make people, especially urbanites, suffer. This is my livelihood.
How do they expect us to survive?
"It is
not only our livelihood but also a lot of people have been depending
on us to close the gap left by the price blitz. When was the last
time shops received sugar and cooking oil? Where do they think people
are getting those products? Government has been squeezing us and
squeezing us until there will be nothing to squeeze anymore."
Meshack Ndodana
is the pseudonym of an IWPR contributor in Zimbabwe.
Please credit www.kubatana.net if you make use of material from this website.
This work is licensed under a Creative Commons License unless stated otherwise.
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