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Strategies & Market Trends : Africa and its Issues- Why Have We Ignored Africa? -- Ignore unavailable to you. Want to Upgrade?

To: TimF who wrote (557)	7/28/2006 6:58:22 PM
From: sea_urchin	Read Replies (1) \| Respond to of 1267

Tim > I wouldn't be surprised if it got worse before it go better I agree with you, in fact, I see a disaster for most Zimbabweans. I presume many will come or attempt to come to South Africa as refugees. That could cause enormous problems in SA. Already we have some millions of Zimbabweans who add to the distress of the locals by burdening the social services, the police, because of crime, and also aggravate the poverty by taking the few jobs which are available. > The currency is on a track to becoming worthless That's if it has any value now?! Of course, while Mugabe is in power the money printing will continue because he uses it as a means of taxation as well as a means of remuneration of his cronies and the army which he employs to keep himself in power. He knows that if the army doesn't get paid they might very well seek employment elsewhere -- namely another boss. But while he is in power there can be no foreign relief because the powers that be (maybe with the exception of China?) and the IMF will not advance him any more loans. > If nothing is done the economy will be reduced to barter. I'm sure for most people it must be close to that already but the problem is that most people have very little with which to barter. And this is in an economy which ten years ago was absolutely flourishing, in fact, was regarded as an example to others.

To: TimF who wrote (557)	7/31/2006 8:13:46 PM
From: sea_urchin	Read Replies (1) \| Respond to of 1267

Tim > The currency is on a track to becoming worthless. voanews.com >>Zimbabwe is headed for a massive currency exchange operation in the wake of an announcement by the Reserve Bank that it is cutting three zeros off the nominal value of bank notes with immediate effect, and replacing all notes in three weeks. The bank meanwhile devalued the Zimbabwean dollar by 60% against the U.S. dollar. Consumers and businesses alike will have to justify their holdings of Zimbabwe dollars over 1 million and 5 billion dollars, respectively, when they turn in old bills. And border posts will tighten inspections to keep offshore black market currency dealers from bringing massive amounts of currency into the country for the trade-in. Reserve Bank Governor Gideon Gono said new bearer cheques will be out on August 1 and old notes would have to be surrendered in 21 days. Lopping off zeros is meant to relieve the problems inflation has caused for businesses and others whose software and machines have boggled at long strings of zeros. Following the devaluation, the Zimbabwe dollar trades at an official rate of 250,000 to the U.S. dollar compared with the previous rate of Z$101,000 per U.S. dollar.<<