I have an essay in The New Republic about my trip to Zimbabwe last year, and my weird obsession with how expensive everything was there.
One of the things they tell nonfiction writers is ’employ holy shit details’, and in Zimbabwe there is almost no other kind. A lot of insane statistics ended up in the piece, but even more ended up on the cutting room floor. Here are some of them:
- In 2003, Zimbabwe was out of foreign reserves to import paper and ink to print more money, and had to switch to ‘bearer checks’, thin pieces of paper in increasingly outlandish denominations. Banks limited withdrawals, and anti-riot police had to be dispatched to prevent bank run.
- Fleeing the cratering economy, Zimbabweans almost singlehandedly raised retail sales in South Africa by 10 percent between 2006 and 2007. Emigrants in South Africa paid bus drivers 20 percent commission to take envelopes of cash, sacks of groceries, back home.
- In 2007 a government order required shops to reduce the prices on basic goods by 50 percent. Instead of stabilizing the economy, it simply reversed the direction of the arbitrage. People bought milk in Mutare for 33,000 Zimbabwe dollars, drove it across the border to Mozambique and sold it for the equivalent of 350,000 Zimbabwe dollars.
- All this time, the government maintained an ‘official’ exchange rate that was orders of magnitude lower than the black market rate. If you wanted to do anything legally—import goods, change money at the banks—you had to use the government rates. ‘I know a guy who worked at a luxury car dealership,’ my friend Colin told me. ‘These generals would come in and say “I’ll buy this car” and he would have to give it to them for the official exchange rate. He was selling cars for $8, $9.’
- Between 2006 and 2009, the government slashed 25 zeroes off the currency. I ask Zimbabweans the prices they last remember at the supermarket and they tell me that a loaf of bread was 22 billion dollars. Which doesn’t actually matter, because you had to be connected to secure one anyway.
- Bank teller wages rose with inflation, and they were partly paid in fuel coupons. They could also ‘burn money’—buy US dollars at the official exchange rate, then sell them at the black market rates. Bank employees were flying to Dubai, buying electronics and coming back to Zimbabwe to sell them on.
- These days, Zimbabwean banks are the opposite of too big to fail, they’re too small to succeed. As of January 2013, the entire banking sector held just $3.8 billion in assets, more than half of which were short-term deposits. While the banks are lending out more than they used to, the loans are riskier, since no one has quite figured out how to run a business profitably here. In March 2010, 2 percent of bank loans didn’t get paid back. By December 2012, it was 14 percent .
- A 2013 survey of 150 store owners in a suburb of Harare found that 47 percent of them were using their own savings to raise capital and 13 percent were using their relatives and friends. Only 3 percent were using the banking system.
- What Zimbabwe has gone through in the last 14 years is maybe the greatest loss of productive capacity and personal wealth in modern history. Per capita GDP fell from $644 in 1990 to $376 in 2011. South Africa’s GDP was 17 times larger than Zimbabwe’s in 1996. It was 58 times larger in 2012.
- Almost 70 percent of Zimbabwe’s government budget goes to government salaries alone.
- In 2009 Zimbabwe still had the highest 15-24-year-old literacy rates in Africa, but the aftershocks of the crisis are set to drag that down. As of 2012, only 67 percent of kids finished school, and only 50 percent made it from primary to secondary school.
- The Zimbabwe stock exchange fell 20 percent after Mugabe’s victory was announced , and some estimates say $800 million in investment has left the country since then.
If you want to get a more full view of what Zimbabwe went through during hyperinflation and the challenges it faces now, here’s some publications that give a fuller picture than I was able to, written by people who know more about economics, about Zimbabwe, than me.
- Here’s the Consultancy Africa Intelligence report, written by Tapiwa Mhute, who I spoke to a few times, on the causes and consequences of Zimbabwe’s dollarization.
- Here’s a terrific overview of the path to hyperinflation written, rather randomly, by a graduate student in Japan.
- Here’s a pretty devastating World Bank report on the problems with Zimbabwe’s infrastructure.
- Here’s the report on remittance strategies by families in one neighborhood in Harare.
- Here’s an anthology of articles about the hyperinflation. ‘Negotiating the Zimbabwe–Mozambique Border’ is a complete fucking stunner
- The debate about what ‘really’ saved the Zimbabwean economy is ongoing and, like everything else in Zimbabwe, is totally politicised. Here’s an overview of some of the arguments.
- Here’s an African Development Bank report from 2009, telling Zimbabwe how to fix the crisis. Most of it’s boring technocratic stuff but, like most of these reports, the ‘context’ section gives a great overview of the challenges.
- Here’s the same sort of thing from the IMF and from the World Bank four years later, in 2013. They’re basically giving the same overview I am, only with less Grindr.
- Here’s a Cato Institute (I know, I know) report from 2013: Why Is One of the World’s Least-Free Economies Growing So Fast?
- Here’s Tapiwa Chagonda’s fascinating survey of bank tellers and teachers during hyperinflation.
- Here’s Beyond the Enclave, Godfrey Kanyenze’s searing account of the political factors behind hyperinflation and dollarization.
- And here’s Vince Musewe’s angry, moving columns for The Zimbabwean, giving a more up to date picture of the conditions in Zimbabwe
I mostly worked on the piece in August and September, and I’m sure more reports and statistics have come out since then, so apologies if anything in the story is outdated.
I’m not a journalist, I’m a human rights guy. One thing I’ve realized over the last 18 months, as I’ve spent more and more of my weekday mornings and Sunday nights working on these little longforms, is how dependent journalists are on the generosity and patience of their sources. For this story, I basically cold-called a dozen or so Zimbabwean economists, told them I didn’t know anything about their country or their field and asked if they could, slowly and monosyllabically, walk me through everything they knew.
Amazingly, all of them obliged, and they were super patient with all of my follow ups and hang-on-explain-that-agains. Colin and Lovemore took a risk telling a foreigner about their economic tribulations the last five years, and trusted that I would represent them honestly and wouldn’t publish any details that identified them. Everyone I interviewed, I have nothing to offer them for their time and their trust except my sincere gratitude—and my crushing anxiety that I may have misunderstood or misrepresented them.
I don’t know if I’ll ever be good at this whole journalism thing, or feel like I have the right to be doing it. I tried really hard to fact-check this story, to avoid giving the impression that my experience was definitive. I arrived in Zimbabwe as an outsider, a tourist. No matter how many people I met, no matter how many reports I read or statistics I double-checked, I departed as one. There is a lot of complicated information out there about Zimbabwe, a lot of conflicting narratives. Mine is just one of them.