Post date: Dec 25, 2012 11:32:35 AM
Many Zimbabweans say they are cutting down on christmas shopping this year following effects of a decade of steep economic decline and hyperinflation. Even with some supermarkets stocked up with merchandise, only a handful of people are shopping for the holidays.
HARARE, ZIMBABWE (REUTERS) - Coloured bright lights adorn shopping malls and illuminate Harare's skyline by night as Zimbabwe prepares to mark this year's Christmas season.
Though many people like to go shopping during this time of the year, a number of Zimbabweans say will not be spending much because they don't have money.Zimbabwe's economy is recovering under a coalition government formed in 2009 but is still suffering the hangover of a decade-long recession widely blamed on Mugabe policies such as the seizure of white-owned farms.
A drop in value of the Zimbabwean dollar in 2009 led the coalition government to abandon the worthless currency in favor of the U.S. dollar and South African Rand.
This move has brought annual inflation below 5 percent from an eye-popping 500 million percent four years ago.
While supermarkets in the capital Harare have been stocked to capacity with Christmasmerchandise, few people are shopping.
Christopher Mugaga an economic analyst in Harare says with 80 percent of the country's 12.9 million people unemployed, residents have little reason to be merry this christmas.
"Christmas to Zimbabweans generally might not mean a lot, considering that unemployment rate is still very high, most of the government policies which have been propelled, they are not cutting the jobs losses which we have been experiencing since the turn of the millennium, so generally we don't see much, there is not much to celebrate for Zimbabweans, knowing very well that they are coming from a very low base, their pockets are quite very shallow," said Mugaga.
Despite the population's low purchasing power, goat traders in the capital hope to make good sales. A number have set up temporary markets by the roadside, where potential buyers come to choose goats that will be eaten during the festivities.
"The Christmas it all depends on the year, if it is a good year, we can sell about 300 (goats), it depends on how the business is during that year, like this year we are looking forward to (selling) something like 200 - 300 during the holiday days like from 22 to 25 December," said Emanuel Munemo, a trader.
"Compared to last year, this year's Christmas is less busy, we are just struggling and pushing on with life but business is low," said Ernest Gadzikwa, another trader.
Zimbabwe's consumer inflation slowed to 2.99 percent year-on-year in November from 3.38 percent in October, according to the national statistics agency.
The country's economy is projected to grow 8.9 percent next year if the political environment remains stable and the government lives within its expenditure targets.