Analyzing the Current State of Zimbabwe’s Economy
Amid the turmoil of the Global Recession, the African nation of Zimbabwe experienced massive economic growth under the guidance of a coalition government. Between 2009 and 2011 the Gross Domestic Product of Zimbabwe grew an average of 7% annually, far outpacing Hong Kong’s rate of 5% (a place commonly seen as a bastion of free market enterprise). But was all of this growth real or merely the result of a low starting point and poor management of resources?
Zimbabwe in the 2st Century
For the better part of the 21st century Zimbabwe has been a country whose economy has been on the edge of collapse. There are numerous places to begin assessing why, but many citizens and outsiders looking in view President Robert Mugabe’s tactics as the chief reason. At the end of the 20th century, Zimbabwe had earned a reputation as the “bread basket of Africa” due to yearly crop excesses. Zimbabwe’s fields and farmers were so successful that it was the leading crop exporter in Africa, often filling the bellies of neighbors in numerous countries. However, President Mugabe began to take the nation’s economy down a path of indigenization in the early 21st century that had far reaching impacts on the country. President Mugabe’s plan started with farmlands across the country being seized by the government without payment to the farmers who legally held titles to the land. Those lands were in turn given to poorly educated, mismanaged farmers who turned Zimbabwe from a food exporter to a country on the brink of starvation. The ramification of that decision sent ripples through the rest of the nation’s economy. First banks started going bankrupt because while the farmers still legally owned the land, they had no money to make mortgage payments and the government wasn’t paying the banks so the money dried up. Additionally, numerous other sectors of the nation’s economy depended upon the excesses of the agricultural industry to drive their business. Without the cash inflow from crop exports, money trickling down to these other industries began to dry up. But that was just the beginning of the problem for Zimbabwe as rampant inflation was just around the corner.
Economies can mean a lot of things to a lot of different people, but at the heart of every economy is money. Zimbabwe used the Zimbabwe dollar as its national currency, until President Mugabe’s indigenization plan turned it into a currency with little more value than toilet paper. Another of President Mugabe’s indigenization schemes was to limit the amount of foreign control when investing in businesses and industries in Zimbabwe. Outside investors were limited to a 49% stake in any venture, leading many investors to flee the economy all together. When inflation began to soar, the situation got worse. The resulting economic contraction that came out of President Mugabe’s decisions led to dwindling tax revenue for the national government, which made up for the shortfall by simply printing more money. The country printed and printed its currency until hyperinflation set in. By November 2008 inflation was so bad that prices in the country were doubling every 24.7 hours.
A Coalition Government, Relief, and Growth
A new coalition government came to power in 2009 and immediately helped put Zimbabwe on the path to healing. President Mugabe was still around, but there was now he had to deal with newly seated Prime Minister Morgan Tsvangirai as a check to his power. The U.S. dollar and South African rand were adopted as the national currencies in January 2009 and within a month inflation had fallen to -2.3% and has remained stable ever since. The stabilization of Zimbabwe’s currency led to a massive wave of foreign investment in the country. Businesses invested in industries across Zimbabwe and foreign governments were sending aid or buying government banknotes and bonds by the millions. The result of dollarization within the economy was record growth between 2009 and 2011, but that growth is seen by many as unsustainable in the long term. The result of the country’s latest election in July 2013 raises even more concerns about the future of the country.
In a shocking twist in the minds of many, President Mugabe won re-election in July 2013 and has immediately made promises that he and the government are unlikely to be able to keep. While the president has made wild promises to increase civil sector pay and military pay, along with promises from his aides to write off debt in some municipalities, few of these things are financially possible. Zimbabwe’s economy stands on shaky ground with much of the growth from 2009-2011 built on heavy lending. The country now has outstanding offshore debts in excess of $7 billion and Western nations such as the U.S., U.K., and EU members are withholding food and financial aid. Outside investors see a nation with growth potential, but no foundation to support it long term. What Zimbabwe needs at this point is an improvement in its infrastructure, support to its industries, and improved manufacturing to make use of its vast mineral resources that offers a better result for the average citizen. While President Mugabe and his advisors see a brighter future, they are literally writing checks they cannot cash and foreign investors (like China) are starting to think enough is enough.
Can You Buy Zimbabwe Dollars on Amazon?
Many people love shopping on Amazon so it makes sense people often wonder if they can buy Zimbabwe Dollar notes on Amazon?
Amazon kind of spurred the popularity of the 100 Trillion Zimbabwe note and other notes from the AA2008 series. Technically speaking however Amazon never really allowed the sale of Zimbabwe Dollars. Sellers on Amazon would list these in the toy category, clothing category, and other categories which didn't accurately fit the item.
About a year back Amazon started banning sellers of Zimbabwe Dollars and removing all the listings. For a few months you couldn't find any Zimbabwe Dollars on Amazon.
More recently however sellers have begun popping back up on Amazon selling Zimbabwe Dollars from the 2008 series, also referred to as the AA series. The notes are fairly expensive as Amazon charges a 15% fee for selling which these sellers need to recoup before they see any profit. Currently 100 Trillion notes are going for around $99, which is about 25% higher than other places you can buy them.
Also, because these items are essentially slipped in and not officially allowed or sanctioned by Amazon you may or may not be able to rely on the Amazon system to protect you in the case you get fake notes or damaged notes. Also keep in mind you won't consistantly be dealing with the same seller as sellers come and go as Amazon catches on and bans them.
The last thing you'll want to be aware of is that many of these sellers are based outside of the USA which can mean longer shipping times, is riskier in terms of you getting legitimate authentic notes, and is just overall something you should be aware of.
Here at BuyIQD.Com we accept credit and debit cards as well as Kash and checks as well. If you are interested in placing an order or have any questions feel free to give us a call at 1-800-884-1288.
Wholesale Pricing on Zimbabwe Dollars
We offer wholesale pricing on the Zimbabwe Dollars. If you have a shop or are an eBay seller who sells collectible banknotes and coins and are looking for a wholesale provider of Zimbabwe Dollar notes feel free to reach out to us.
We offer competitive wholesale pricing on Zimbabwe Dollars. We carry both circulated and uncirculated notes. We also carry most denominations. We stock the entire AA2008 Trillion series which consists of 100 Trillion, 50 Trillion, 20 Trillion, and 10 Trillion notes.
We also carry the lower denoms. Some of the more popular denominations are 500 Million and 100 Million notes, however we also carry 50 Billion, 20 Billion, 10 Billion, 5 Billion, and 1 Billion notes in addition to many of the smaller million and 100,000 notes as well.
You can contact us either by e-mail through the site or feel free to call us at 1-800-884-1288. We look forward to speaking with you.
Zimbabwe Dollars AA2008 notes SALE!!!
From now through October 1, 2016, we are offering $5 off any Zimbawbwe Dollar note purchase by using the promo code "ZIM5OFF".
Visit our Zimbabwe Dollar Collection Page, select what you want, and enter "ZIM5OFF" during checkout to save $5 on your order.
If you need assistance placing your order feel free to give us a call at 1-800-884-1288. Our hours of operation are Monday through Friday 9AM to 5PM Central time.
Looking For A Deal On Zimbabwe Dollars?
If you're looking for a deal on Zimbabwe Dollars, we have a deal for you. In the past we only carried Uncirculated Zimbabwe Dollars. Recently however we have been able to source some circulated Zimbabwe Dollars.
Where as our 100 Trillion UNC Zimbabwe Dollars are currently running $69.95, the circulated notes, which are still in VERY good condition are only running $50 so a savings of $20 per note.
Our 50 Trillion notes which typically run $30 for a 50 Trillion Note, we have circulated 50 Trillion notes for just $20.
And lastly, probably our best deal we have going, is on the 500 Million notes. Typically $35 for a UNC note, we have circulated 500 Million notes for only $15, more than 50% off.
You may want to check out our SPECIALS PAGE, where we have some of the million and billion series notes, still the AA2008 series, for as little as $1 per note.