Zimbabwe’s economic meltdown continued on Wednesday as several shops closed down, while those that remained open want to raise prices in defiance of a threat by the government. This comes as new measures were implemented, including the subtle re-introduction of the local currency and a steep hike in taxes, which will lead to a rise in the cost of living, a loss of savings and shortages of basic commodities. These were all characteristics of the 2008 economic implosion, which left the country with a record high inflation rate of about 89 sextillion percent. The country also received another blow after the EU, which was one of the key observers during the recent polls, said the election “did not meet international standards”. President Emmerson Mnangagwa said in a statement on Wednesday that the country would continue to use the multi-currency system and repeated his earlier position that the reforms were "to get the economy on sound footing”.

He did not mention a statement by h...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, Morningstar financial data, and digital access to the Sunday Times and Times Select.

Already subscribed? Simply sign in below.



Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00.