As the Zimbabwean economy continues to deteriorate, with rapidly-rising inflation, parallel currency rates, and declining service provision, whether electricity, fuel or water, the challenges of market exchange and trade become more acute.
Barter trade is more common, as prices fluctuate wildly and the value of physical and electronic money diverge. With poor mobile phone networks due to electricity outages, electronic exchange becomes more difficult too.
Collapsing infrastructure has an effect on production also. Fuel price hikes make transport prohibitive and irrigation pumps expensive to run. Desperate measures by government often make matters worse. The now-rescinded edict that all grain must be supplied to the state grain marketing board undermined vital informal trade.
Meanwhile, the notoriously corrupt “command agriculture” subsidy scheme directs support to some, while excluding others from the provision of favourable loans for government-supplied seed, fertiliser, fuel or equipment.
Economic and infrastructural collapse is threatening food security in Zimbabwe. Even if there is good rainfall this season, the crisis will persist. Farmers will plant, produce and market less this year. While food imports are needed for targeted areas and population groups for sure, this may not be the biggest challenge.
Stabilising Zimbabwe’s economy is the top priority, as economic chaos is causing a humanitarian crisis.- Zimbabweland
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