Harare- An MDC called for mass demonstration, which was stopped by police at the 11th minute, has resulted in a complete close of business in CBD Harare. MDC is Zimbabwe's main opposition and has since last election refused to recognise the ZANU-PF led government accusing it of rigging the election.
Harare is both the economic and political capital of Zimbabwe. Harare CBD houses most of the service industry and the highest number of retail shops in any city within Zimbabwe. It also has the widest distribution of bank branches and government offices.
Equity Axis observed that all business was completely shut down in CBD and parts of industrial business districts of the City, as operators took contingency measures against the negative effects of a possible violent demonstration, while also protecting employees.
The MDC had however called for a peaceful demonstration against the near economic comatose brought about by the ruling party’s 30 years of misrule over its 40 year rule. A change in hands at the State House, has so far failed to yield economic positives, a development which has agigated impoverished Zimbabweans.
Inflation data which was supposed to have been released mid month is yet to be released which increases suspicion of number cooking amid raging inflationary pressure. the government suspended annual inflation from July to February 2020. As at June official inflation showed a growth of 175% year on year.
Real incomes have therefore drastically reduced in real terms as the exchange rate plummets following the liberalization of the exchange rate.
The MDC had called the demonstration to pressure government into addressing the macro economic situation among other concerns. A series of other demonstrations had been called for in other towns staggered in varying timelines.
A high court however dismissed an urgent application for the demonstration ban to be lifted Friday morning. The MDC went on to call off the demonstration, but business could not resume as usual.
Given the fragile state of the economy, the rate at which economic value is being lost is quite steep. A combination of power cuts, forex shortages and general weakening business environment characterized with a dearth in aggregate demand, has seen GDP ease over the last 7 months.
The economy is in a recession while inflation is nearing hyperinflation. A day lost in production invariably costs the economy several millions.
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