Zimbabwe on the brink?

Seems my country is once again on the brink of economic collapse. The massive increase in fuel prices announced last night by Emerson Mnangagwa may turn out to be the Sarajevo moment for something momentous.

By increasing the price of fuel by a factor of over two, government set the stage for further price hikes on goods that are already priced out of reach for most consumers.

And people are not happy. Employers will have to fend off renewed demands for increased wages by employees and the government in particular will have to increase the salaries of its workers. Yet any salary increase is unlikely to be even close to the rate of price increases. For example government offered a mere 10% salary increase when prices have more than tripled. Even then, any salary increase will push the prices even higher.

If they choose not to give in to worker demands we will have continuous mass action. Already there are calls for stay aways and “shutdowns”.

Not too sure how this will pan out but I think the government is in trouble and the situation needs to be handled with great care.

In any case the next few weeks will be very interesting. Will be very surprised if something major doesn’t happen.

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