Zimbabwe’s worsening cash crunch
Optimism about the dispensation introduced under Emmerson Mnangagwa is fading amid a cash crunch that has hit the pockets of consumers
Zimbabwean president Emmerson Mnangagwa’s assumption of office last November after the military intervention that led to long-serving dictator Robert Mugabe’s resignation sparked the dawn of a new era of hope in Zimbabwe. Mugabe, who had run the nation’s economy into the ground through a series of disastrous economic policies, had also isolated the country internationally. With Mnangagwa’s rise to the most influential office in both the ruling Zanu-PF and government, and the discernible policy shift evident in his "open for business" mantra, optimism abounded. That hope was not without reason. More than 90% of the country’s population was unemployed and industry was operating at half its installed capacity. Perhaps to underscore the optimism, the stock market, which had risen to record highs as investors piled into stocks to preserve value, pulled down. Last year’s high was not supported by rising company fundamentals but by hedging that arose from currency weaknesses. Inflation fea...
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