Shooting yourself in the foot
Dear Family and Friends,
People start to queue from as early as 5 am on weekday mornings outside a local bakery in town. They’re queuing for bread, not because it’s in short supply but because they want to buy the cheap bread that’s available first thing every morning. The cheap bread is breakages: loaves that have got damaged in deliveries or come off the production line misshapen, broken or below standard. Instead of paying US$1 a loaf, the cheap bread is half the price: 50 cents a loaf.
Selling starts at 6.30 or 7.00 in the morning and by then there are often a hundred or more people crowded on the pavement and along the road outside the bakery. Until recently you could buy as many cheap loaves as you wanted; some people were even buying fifty loaves but lately it’s been limited to a maximum of ten loaves per person.
It soon became obvious that bulk buyers of cheap bread were taking their 50 cent loaves and reselling them for 60 or 70 cents a loaf. This is just another way that Zimbabwe’s 90% unemployed people have found to make a few dollars in order to pay their rent, keep the kids in school and food on the table.
While this is going on every day in small town Zimbabwe, the National Bakers Association said recently that the operating capacity of the baking industry has dropped to 50% because of falling demand. Falling demand because of cash shortages; cash shortages because of unemployment. It’s a vicious circle in which everyone learns fast how to change with the circumstances in order to survive and meet their responsibilities in Zimbabwe’s new economic crisis.