Zimbabwe is left with only $217 in the bank
Only $217 was left in the coffers of Zimbabwe’s government after it paid the salaries of its public servants. Zimbabwe’s Finance Minister revealed this to explain the difficulty the current government is facing to fund the forthcoming constitutional referendum and polls. The country needs around $104 million to organize the vote.
The economy took the plunge at the turn of the millennium, after President Robert Mugabe began seizing white-owned farms. The move crushed investor confidence, paralyzed production, attracted sanctions and daunted tourists.
The government’s national budget for this year stands at $3.8 billion and the economy is projected to grow 5%. The mineral rich country is now using the U.S. dollar and the South African rand.
Zimbabwe went through a decade hyper-inflation of 231 million% and infrastructure that collapsed as quickly as prices surged. Its condition is now relatively stable. But the problem with finances still prevails and local business battles against unstable electricity supplies, lack of liquidity and high labor costs.
Categories: International Current Affairs 2017