28 Sep 2017 | 01:54 AM UTC
Zimbabwe: Possible unrest due to rising price of basic goods
Rumors of shortages causes prices of basic goods to rise dramatically in recent weeks; related unrest possible
Event
Prices of basic goods have reportedly increased dramatically in recent weeks, and rumors that the country will run out of basic goods in the near future have resulted in a rush to stock up on supplies and long lines at fuel stations in Harare. The rise in prices has been attributed to the fact that stores have to buy foreign currency on the black market to restock goods. Authorities are urging people to remain calm, and dismissed claims that there is going to be shortages of essential goods. Protests are likely if prices continue to rise or significant shortages are observed across the country.
Context
Authorities in Zimbabwe are trying to avoid a repeat of the 2007-2008 economic crisis that crippled the country. At that time, the government tried to control the prices of basic goods during a period of hyperinflation, which wiped out most people’s savings and left store shelves empty.
The country is currently experiencing a deteriorating economic situation. While a "bond note" currency pegged to the US dollar was created last year to combat hyperinflation, its value is falling quickly and it is not easily convertible into actual dollars. On Monday, September 25, it was reported that the government was planning to issue 300 million dollars of extra bond notes. However, there are concerns that this action would only increase demand in the black market for foreign currencies, further accelerating inflation.
Advice
Individuals in Zimbabwe are advised to closely monitor developments to the situation; those planning travel to the country are advised to bring a sufficient reserve of US dollars. Avoid all protests and public gatherings due to the risk of violence.
On a separate note, although Zimbabwe remains a relatively safe country in terms of security, moderate crime rates continue to afflict large cities and individuals are advised to remain vigilant against various offenses (theft, carjacking, home invasion, assault, etc.). Avoid carrying large amounts of cash on your person in public to deter theft.
