Accessibility links

Breaking News

Soaring Prices and Creeping Dollarization Take Zimbabwe To the Brink

Soaring food prices and increased dollarization of the Zimbabwean economy even on in local markets are locking many Zimbabweans out of markets in essential goods.

Retailers, vendors and landlords now demand payment in currencies like the U.S. dollar, the South African rand or the Botswana pula. With inflation officially running at more than 11 million percent - and some say much faster - food prices are rising by the hour, forcing Zimbabweans to forego meals and walk long distances to work.

Manufacturing has dwindled to less than a third of what it once was and businesses are scaling back to in an effort to remain viable as output and consumption shrink.

For a deeper look at Zimbabwe’s unraveling economy and mounting humanitarian crisis, reporter Blessing Zulu of VOA's Studio 7 for Zimbabwe turned to National Director Forbes Matonga of Christian Care, an implementing partner for the United Nations World Food Program, and economist and labor expert Godfrey Kanyenze.

Kanyenze said the situation in Zimbabwe has reached crisis proportions.

More reports from VOA's Studio 7 for Zimbabwe...