ED Flies into Storm
6 September 2018
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Jane Mlambo|President Emmerson Mnangagwa returned home today to face the country’s spiralling economic crisis that has seen resulted in cement, wheat and fuel shortages.

Mnangagwa left for China soon after appointing his two deputies, to attend the Forum for China-Africa Cooperation (FOCAC) where the second largest economy pledged $60 billion to African countries.

Since Mnangagwa left the country last week Friday, cement price has gone up to as high as $21 for a bag. Traditionally cement prices range between $9 and $13 for a bag.

Yesterday, a leaked letter from the Grain Millers Association of Zimbabwe revealed a looming bread shortage on the back of dwindling wheat stock levels in the country.

This was worsened by Reserve Bank of Zimbabwe’s delays to release foreign currency to wheat suppliers who threatened to divert stocks kept at Beira post in Mozambique.

In addition, Chicken Inn outlets especially in Bulawayo reportedly closed early this week due to shortage of chicken.

As if that was not enough, Stanbic Bank notified its customers today that it had stopped processing DSTV payments due to shortage of foreign currency to settle South African supplier.

On the parallel foreign currency market, the United States Dollar was trading at 60 percent against the local bond notes further setting the stage for serious shortage of basic commodities imported from South Africa, Zambia and Botswana.

Mnangagwa is under increasing pressure to rope in the opposition MDC Alliance leaders in his cabinet to douse the threatening collapse of the economy.

His allies are also angling for top positions and his headache at the moment is to balance between rewarding his colleagues while roping in technocrats especially in the ministry of finance which is seen by many as the most strategic department that could foster investor confidence.