Thursday, January 15, 2009

RURAL ZIMBABWE HAS ALREADY DOLLARIZED

I got a shock of my life last weekend when I made a round trip around central Zimbabwe. After a long time of absence I decide to go to my roots in Chivu around Sadza Growth point at Warikandwa school in Magaisa village. My 160km journey via Marondera and Wedza took me more than three hours because of the state of the roads. This trip was very revealing. At each and evey place where vendors stood by the road selling their wares they were asking for either USA dollars or Rands. When I offered my Zim Dollar the usual reply was "Go with your money back to Harare." At Sadza Growth point I bought a packet of sugar for four USD 4 (four USD dollar). The shop owner did not have to go around the township looking for change. I learnt that every type of change is available in each and every shop around the shopping centre.

The second day I finished doing the rounds of consoling relatives who had lost loved ones. My return journey back to Norton was through Chivhu town and via surrounding resettlement areas seeing again and consoling other relatives who are resettled farmers. On this other leg of my journey I saw again many vendors selling mangoes, litres of fresh milk, bundles of fire wood, wilde mushrooms and other items I did not realize all going for one dollar USD or ZAR IO (ten Rands) per item. Upon offering my Zim Dollars for transacton I was told the same story "Go back to Harare with your Zim Dollar. We do not need it here." When I had puncture in Chivhu I paid USD I (one USD dollar). On discovering that the other tyre needed more air I was again asked for another USD dollar. Rural Zimbabwe has already dollarized in a big way. I was accompanied by my brother Lovemre who was at pains to explain to me what all this meant from an economist point of view. I came back to my town home disillusioned. God bless!

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