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Price Controls and Shortages - Index of articles
Popping
out to the shops - 870 miles away
Jan Raath, The Times (UK)
October 01, 2007
http://www.timesonline.co.uk/tol/news/world/africa/article2563344.ece
The heat was
withering in the run-down wooden shack without a door handle that
serves as the Mphoengs border post.
"There
used to be a store here, but it closed long ago," the Zimbabwean
immigration officer said. "You can get nothing this side. But
it is OK for us," he added brightly.
Barely 200 yards
away, across the dry, thorn-fringed river bed that forms the border
between Zimbabwe and Botswana, is a tiny, tin-roofed building called
Basilele's Butchery. Its stock of fresh bread, milk, maizemeal,
eggs, beer, and even fuel, is more than any of the hangar-sized
supermarkets in Harare, the Zimbabwean capital, can manage now.
President Mugabe's price controls, unleashed three months ago to
control inflation by forcing businesses to sell at less than they
produce goods for, have strangled the supply of nearly all goods.
Shopping in
Zimbabwean supermarkets has become a matter of hunting and gathering.
You walk quickly past the mostly empty shelves in the hope of finding
perhaps a tin of shoe polish, a sack of potatoes or a bottle of
mosquito repellent. There is almost no hope of getting essentials
like bread or milk. Mostly you leave empty-handed.
The shortages
have created new meaning to the expression, "I'm just nipping
out to the supermarket". This week I drove 870 miles (1,400km)
to and from Botswana to do my shopping.
Mphoengs is
the more inaccessible entry point to the Botswana town of Francistown.
Once a flyblown frontier railway junction, it is now a sprawling
consumer city with gleaming shopping malls and vast South African-owned
hypermarkets and chain stores, stocked with mountains of goods and
surrounded by lawns and fountains rising out of the semi-desert
scrub.
The city is
efficiently run, a magnet for investment, with a low crime rate
and a sense of civic pride. It is a product of Botswana's long tradition
of democracy, tolerance and astute economic management. It stands
in absolute contrast to Mr Mugabe's rule of brutality, cruelty,
famine and failure.
The road to
Mphoengs is avoided by the smoking, battered buses that are Zimbabwe's
public transport, because of a long stretch of bad gravel. Instead,
they pour into Plumtree border post, 60 miles north, bursting with
shoppers whose numbers overwhelm the customs and immigration officers.
A five-hour wait is normal at weekends.
At dawn the
buses disgorge their passengers in their hundreds in the terminus
off the city's main street. The Zimbabweans are instantly recognisable,
often poorly dressed and struggling under the weight of enormous
plastic zip-up bags stuffed with bottles of cheap cooking oil, bars
of coarse soap, boxes of milk powder or loaves of bread to take
back over the border.
"It is
for selling on the black market," Patson Hunduza, with a load
of plastic buckets, said. "I have no job but cross-border trading
is profitable. I can feed my kids and pay their school fees doing
this." It is worth the risk, he said, of being assaulted by
and losing his goods to Zimbabwean police.
The presence
of thousands of Zimbabweans shopping in Botswana - and in neighbouring
South Africa, Zambia and Mozambique - is evidence of how the country's
once prodigious distribution sector has fallen apart. It is the
only way many Zimbabweans survive Mr Mugabe's state-induced famine.
The trip back
through Plumtree is made even more excruciating by customs officers
who order shoppers to pull out their bags from the holds of the
buses and unpack them for inspection. "Usually the driver makes
a deal with the customs officer," Everista Kasambuwa, who makes
the trip each month from Harare, said. "He comes round and
collects 100,000 Zimbabwe dollars [about 10p] from each passenger
and gives it to the customs guy, who just waves us through, and
it only takes a couple of hours."
A Francistown
businessman, Krish Naidoo, estimates that Zimbabweans account for
30 per cent of his clothing trade. "I would be hurting if it
wasn't for them," he said. "Mugabe's slashing of prices
has been great for my business. When their shops ran out of goods,
my sales volumes soared."
With no exports
coming from Zimbabwe, the South African supermarkets, too, have
no competition and have put up prices.
Back at Mphoengs
with my pickup truck loaded with wheat, cooking oil, soap powder,
long-life milk, rice, sugar, oats, soap, toothpaste, beer and wine,
I waited an hour for the sole customs officer to come back from
lunch, and contemplated the ten-hour drive back to Harare, most
of it in the dark. I didn't mind - it was a small price to pay for
a well-stocked larder.
Soaring
costs
| Monthly
cost of living for a family of five |
Z$14 million
(£15.50) |
| Food |
Z$6.5 million
(£7.20) |
| Other household
goods |
Z$7.5 million
(£8.30) |
| Official
price for a loaf of bread |
Z$30,000
(3p) |
| Blackmarket
price for a loaf |
Z$250,000
(27p) |
80 per cent of population is living below the poverty line
Sources: Times
archives, Zimbabwe Central Statistical Office, www.fas.usda.gov
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