By ETimes
The Reserve Bank of Zimbabwe (RBZ) introduced a new currency, Zimbabwe Gold (ZiG) which phased out the Zimbabwe Dollar and a citizen needs about 1000 ZiG for a basket of basic commodities.
A survey of prices in the two leading retailers TM Pick n Pay and OK Zimbabwe by the Economic Times, showed that for a person to not get malnourished needed approximately 1000 ZiG for the month of April.
The Economic Times Basket (ETB) consists of food items and basic toiletries such as mealie-meal, salt, cooking oil, sugar, toothpaste, bathing soap and Vaseline.
In TM Pick n Pay the average ETB totalled 978.19 ZiG whilst in OK Zimbabwe the basket cost 985.70 ZiG, all excluding sugar as both retailers had stock outs.
Citizens interviewed by this publication said reading prices without many zeros was a welcome development as they were beginning to lose track of the prices.
Ms Michelle Dhlakama commented, “Finally, some relief. The introduction of ZiG currency has been a game-changer. No more dealing with crazy prices in the hundreds of thousands. Hoping for prudent management to keep things stable though.”
Another consumer, Mrs Joylene Makuzo added that, “I am thrilled to see the pricing normalcy ZiG currency has brought. It is a relief not to have to carry around stacks of cash for basic necessities anymore. Let us hope the authorities manage it wisely to maintain this stability, it has been a good 10 days,”
Mr Edison Gwata a consumer said, “The ZiG currency has been a lifesaver, bringing back some sanity to our shopping experiences. It is a step towards economic stability. But we must remain vigilant and ensure responsible management to prevent any future chaos. Let us keep the basket somehow stable.”
Analysts said the value of the ZiG will be crucial for maintaining this basket price and bettering salaries of the citizens.
Economic analyst Namatai Maeresera believes maintaining stability in the ZiG currency is crucial for keeping the family basket price steady.
“A stable currency ensures predictability in pricing, which directly impacts the affordability of essential goods for households. Moreover, if we effectively manage to tame inflation, it will create an environment conducive to business growth.
“With stable prices and reduced inflationary pressures, businesses can operate more efficiently, leading to increased profitability. Ultimately, this can translate into higher salaries and improved living standards for citizens,” he said.
Monetarist Raymond Madziva lamented that stability in the ZiG currency is not just about maintaining price levels, but it is about fostering an environment conducive to economic growth.
“When businesses can rely on stable prices, they are more likely to invest in expansion and innovation. This, in turn, leads to job creation and higher incomes for workers. As inflation is tamed, consumers’ purchasing power increases, enabling them to afford more goods and services. It is a cycle of prosperity that begins with a stable currency,” he added.
According to the Zimbabwe National Statistics Agency the Food Poverty Line represents the amount of money that an individual requires to afford a daily minimum energy intake of 2,100 calories.
However, the ETB and the Zimstat baskets differ as the latter produces the Poverty Datum Lines (PDL) using the lower-bound poverty line of the economy.
Hence, the Food Poverty Line (FPL) for one person in March 2024 was $701,236.89 (280.65 ZiG), meaning that the minimum needs basket cost that much per person in March 2024.