Economics

Zimbabweans Are Left Reeling as Cash-Starved Economy Implodes

  • Nation faces chronic shortages of fuel, foreign exchange
  • Unions call national strike after government hiked fuel prices

Protesters block the main route to Zimbabwe's capital Harare from Epworth township on Jan. 14.

Photographer: Jekesai Njikizana/AFP via Getty Images 

Lock
This article is for subscribers only.

Chronic shortages of fuel and foreign exchange, surging inflation and mass strikes have driven Zimbabwe to the brink of economic collapse and made a mockery of President Emmerson Mnangagwa’s claim that the country is open for business.

Many shops and factories have shut their doors because of a lack of customers and those that continue to trade are open to haggling over prices to secure hard currency. At an appliance shop in the capital, Harare, a salesman whispers that a Whirlpool Corp. washing machine priced at about $5,000 if paid for electronically will sell for $1,500 in cash, while at a nearby electrical warehouse, a $600 invoice is whittled down to $145 for payment in dollar bills.