High Priced Products in Poverty Stricken Zimbabwe
- 11 years ago
Economic collapse and price inflation have led to product prices being relatively high for the impoverished country of Zimbabwe, where the median income is only around 6 dollars a day. United States dollars became the official accepted currency in Zimbabwe after its own currency became so inflated that it was virtually worthless.
Economic collapse and hyperinflation have lead to prices for practically everything skyrocketing for the impoverished country of Zimbabwe, where today the median income is only around 6 dollars a day for those lucky enough to be employed.
US dollars became the official accepted currency in Zimbabwe after its own currency became so inflated that it was virtually worthless.
Because the economy had been so unstable, there was no model for the price market when the country changed currencies.
As stores imported products there was no precedent for what to charge, so the prices became relatively high.
Prices reportedly doubled every 24 hours at one point after Zimbabwe adopted the US dollar as their official currency.
Dave Mills, the managing director of TM Supermarkets, one of Zimbabwe's largest grocery chains is quoted as saying: “Five or six years ago, Zimbabwe used to produce 70 percent of the goods we sold. Since the dollar, now we import 70 percent of our products. At least 95 percent of those imports are from South Africa.”
It is common practice to import goods from South Africa and double the price before putting it up for sale in Zimbabwe.
Economic collapse and hyperinflation have lead to prices for practically everything skyrocketing for the impoverished country of Zimbabwe, where today the median income is only around 6 dollars a day for those lucky enough to be employed.
US dollars became the official accepted currency in Zimbabwe after its own currency became so inflated that it was virtually worthless.
Because the economy had been so unstable, there was no model for the price market when the country changed currencies.
As stores imported products there was no precedent for what to charge, so the prices became relatively high.
Prices reportedly doubled every 24 hours at one point after Zimbabwe adopted the US dollar as their official currency.
Dave Mills, the managing director of TM Supermarkets, one of Zimbabwe's largest grocery chains is quoted as saying: “Five or six years ago, Zimbabwe used to produce 70 percent of the goods we sold. Since the dollar, now we import 70 percent of our products. At least 95 percent of those imports are from South Africa.”
It is common practice to import goods from South Africa and double the price before putting it up for sale in Zimbabwe.