Zimbabwe: A New Economic Crisis because of the Mobile Money Tax!
There are now official reports from Zimbabwe that the prices are rising. This is happening as the 2 % Mobile Money Tax is hitting the businesses and corporations. Therefore, people are worried and hoarding, as the prices are not instant, but the companies are sending warnings to them as customers.
One of them is the Dairiboard Zimbabwe Private Limited, that by 8th October the prices on their products will go up by 14 %, this is told by Commercial Executive Eunice Ganyawu. As Lafarge is saying their customers cannot order more than 600 bags each and with their backlog, there will be a minimum waiting period of 10 weeks for their orders. The Trinity Pharmacy on the 5th October have suspended their acceptance of Medical Aid due to the economic conditions and the lack of foreign currency within the company.
There are also more stores writing to their customers, that they should limit their items, as they are only allowed to buy certain amounts of breads, milk, cooking oil and so on. The taxes are really not only hurting business, but also ensuring that the inflation is hitting the citizens. This because the transactions are more expensive.
There is also shortage of United States Dollars, which makes the businesses go on the black-market, that the premium prices on imports. There are also reported hour-long ques for petroleum, as the foreign exchange is in free-fall, as the other businesses has been hit too. Its like the government didn’t prepare for the ramification of the taxes, as it has hit all parts of society.
People are really starting to build up stockpiles, as the products are leaving the shelves, as they expects the prices to be higher by next week. As the inflation has hit the Republic again. The prices are surging as the hoarding, as the companies cannot afford to import and even lacking enough petroleum.
We can wonder what is the aftermath, as the Mobile Money is more expensive, the Bond Notes are too and the imported products are paid with US Dollars, which is all going up. While the prices are going up next week. Meaning the businesses are losing now, and will struggle to stock-up as the cost of doing so will be higher.
The value of the Bond Notes will go up, the Mobile Money value has also fallen because of the taxes and the cost of US Dollars is also going up. Therefore, everything is more costly and the added price will only go worse. The Reserve Bank of Zimbabwe (RBZ) is making sure the inflation is controlled and neither the policies to secure the value of the currencies at the whole. Therefore, the ones bearing the weight is the public and not the state. Most likely the shops will run out and cannot afford to restock. As the situation will turn dire.
This is beginning of another 2008. This time the Blue Roof is relaxing and not responsible, but the same Junta is. The Zimbabwe African National Union – Patriotic Front (ZANU-PF) and President Emmerson Mnangagwa, who is now doing the same as the Goblin. Destroying the economy and ensuring the currency is losing its value. Because that is how you get foreign investors interested in Republic. NOT. Peace.