Zimbabwe: No jingle bells, just a hopeless Christmas

“Shoppers are spending most of their time in bank queues to get cash,” said Tapiwa Nherera, a bank employee who doubles up as an illegal foreign currency dealer on Harare's streets. Maximum withdrawal limits are at Z$500,000, just enough for a one-way trip into the CBD.

“The money is spent on basics like vegetables, basic food stuffs and transport. There's really nothing for many Zimbabweans to spare for luxuries and other goodies that used to spice the Christmas spirit,” he said.

Most supermarkets remain empty, while those that have been licensed to sell in foreign currency under a new exchange control regime are way too expensive for the ordinary Zimbabwean.

A manager with one outlet selling in foreign currency said they were too busy trying to find enough stock for their shop that Christmas could easily pass without notice.

OK Zimbabwe, one of the country's biggest retail chains, said in a press release Friday, November 21, 2008, that the on-going political uncertainty had “affected business confidence and accelerated economic decline.”

Chairman Eric Kahari said: “Suppliers tightened credit terms resulting in retailers facing sourcing challenges due to diminished working capital. The National Incomes and Pricing Commission approved unviable prices and delayed the approval of new price reviews.”

The situation resulted in depletion of stocks, he said, and the outlook period into Christmas will be characterised by “continued product shortages.”