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Price Controls and Shortages - Index of articles
Beer
shortage highlights decline
Institute for War and Peace Reporting (IWPR)
Nonthando Bhebhe (AR No. 129, 30-Aug-07)
August 30, 2007
http://iwpr.net/index.php?apc_state=hen&s=o&o=l=EN&p=acr&s=f&o=338237
A long queue starts forming
next to a truck, which has just driven into a shopping centre in
Kambuzuma, a poor suburb eight kilometres west of Harare. For a
few minutes, there is pandemonium, as people rush to join the queue.
The shoppers soon find
out that instead of sugar, cooking oil, bread, beef, margarine,
the truck was carrying 15 cases of beer, which like the other sought
after commodities, is now only available on the black market for
exorbitant prices.
"I regard the shortage
of beer as the most obvious sign of a very serious malaise,"
said a local teacher. "Especially, as it comes during the
important Heroes' Day holiday (held on August 11 to commemorate
those who died during the liberation struggle from Britain from
which it gained independence 27 years ago) when President Robert
Mugabe traditionally tells the nation the success his government
would have scored in the previous 12 months."
The teacher said he did
not remember there ever being a shortage of beer in Zimbabwe and
that this was a sign that things had gone desperately wrong in the
country.
"Beer is the about
the biggest source of revenue for government and Zimbabwe is generally
a nation of drinkers, so there is bound to be a great deal of anger.
Through the ongoing blitz on prices, the government has not only
shot itself in the foot in terms of revenue generation, but the
blitz has also begun to hit where it hurts most - employment."
At the end of June, President
Mugabe's government orderered prices of basic commodities
to be slashed by 50 per cent to counter soaring inflation, which
has been running at 7,500 per cent.
Several senior company
executives - many from companies based outside Zimbabwe - have been
arrested since the cuts and have spent nights in filthy police cells
for failing to comply with the government directive to reduce their
prices.
The resulting shortages
of goods have meant many companies have been forced to close or
have had to let up to half of their workers go, citing lack of business.
One employee who was
recently been laid off at TM Supermarket, one of the biggest supermarket
chains, said he felt helpless and did not know how he was going
to fend for his family after his company was forced to retrench
following the shortages and price cuts.
"I was told two
weeks ago that I should no longer report for work. It is not really
the company's fault. We have been spending days doing absolutely
nothing. The butcher is not operational, the take-away section is
barely functioning and the shelves are empty of beverages, such
as beer and soft drinks," said the man.
He has three school-aged
children and, together with his brother, also looks after their
elderly parents and four orphaned nieces and nephews.
"How am I going
to feed my kids and my parents? To me, this whole price slash was
a curse," he said.
With food in such short
supply, most people are turning to street-side vendors, but they
are now the victims of a police blitz. Those caught selling their
wares are forced to spend the night in police cells and pay a heavy
fine before being released.
June Benza, who sells
vegetables in the central business district, was arrested with other
vendors. She was detained by municipal police for six to seven hours
before being taken to Harare Central police station.
"We thought it
was a simple procedure where we would just pay our fines. We were
shocked when we were hurled into filthy and crowded police cells.
We were put into the same cells as hard-core criminals [and] released
the next morning."
Mugabe reiterated during
his address on Heroes' Day that there would be no going back
on the price war, which has worsened the plight of so many, and
has poorer people flocking in their thousands into neighbouring
countries each day to seek food.
With most bottle stores
closed down, and supermarket shelves empty, beer, like many basics,
has found its way onto the black market at exorbitant prices.
A quart, or 750ml, of
lager beer costs 60,000 Zimbabwe dollars, ZWD, (4 US dollars) at
retail outlets, but is now going for a minimum 200,000 ZWD on the
parallel market.
Delta Corporation, the
country's biggest beverage producer, says the shortage of
beer and other beverages is a result of overwhelming customer demand,
as well as diminished production as a result of water shortages.
Delta spokesman George
Mutendadzamera told the official Herald newspaper that the demand
for beer had increased dramatically since the manufacturer resorted
to the June 18 prices ordered by the government.
"Average sales
are rising fast and approaching 300,000 litres per day. This level
of lager beer consumption in the month of July is approximately
50 per cent up on the similar period last year," he said.
Mutendadzamera said Delta
was only able to service 60 per cent of its orders due to a variety
of factors, "Our plants are experiencing erratic water supplies,
thus adversely affecting production. We're a big user of water,
hence any shortage of this ingredient impacts our ability to produce
consistently."
While some Kambuzuma
residents were disappointed at finding the truck was not delivering
foodstuffs, others were ecstatic to get their hands the beer, which
has virtually disappeared in the last few weeks.
For an hour, the Kambuzuma
residents who managed to grab a few quarts were happy that at least
their Heroes' Day holiday was a bit livelier.
Remsy Kadungure, a resident
of Kambuzuma who was queuing to buy beer, told IWPR, "Such
things only happen in Zimbabwe. We can't even relax on a holiday
and enjoy our favourite beer. I never thought it would come to this
in Zimbabwe, where we now have to rely on the black market for beer."
"Everything has
become abnormal in this country but the funny thing is that we have
accepted . . . the.. situation. People are burning millions of dollars
worth of scarce fuel driving around looking for beers. We are drinking
anything that is available. You tell me, what is normal about that?
To me, this shortage of beers is just a sign that everything around
us is crumbling.
"Everything is
in short supply. In most suburbs people have to wake up at 2am to
fill up buckets with water before they are cut off at 3am. Some
people have to wake up in the middle of the night to iron their
clothes because of power cuts. If this is not a collapsing country
- I just don't know what is."
Nonthando Bhebhe is the
pseudonym of an IWPR journalist in Zimbabwe
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