In an August 2010 analysis, Imara Asset Management Zimbabwe’s Mr John Legat compared our consumerism and economic activity with Zambia.
Mr Legat said Zambia’s two largest breweries sold US$230 million worth of beverages in 2009, compared to US$324 million by Delta Beverages alone in Zimbabwe.
At that time, he forecast Zimbabwe’s largest mobile phone service provider, Econet, to reach sales of about US$500 million by year-end, in comparison to Zain which expected Zambians to spend about US$280 million on their services.
Mr Legat said Zimbabweans spent about U$1,1 billion on fast food from the Innscor chain, Colcom (meat products), National Foods and Spar.
Granted, currency issues and a horrible pricing model in Zimbabwe could be the reason why we spend more money on fast foods and booze than our Zambian brothers and sisters. But there is no denying that the figures also point to a consumerist culture that present economic output simply cannot afford.
We report in The Sunday Mail this week that Zimbabweans spend over US$500 million on prepaid cellular phone airtime yearly via 12,4 million registered cellphone lines.
South Africa — whose population is nearly four times bigger than Zimbabwe’s — spends about US$600 million on airtime annually. Zambia has around 11 million cellphone users and they spend about US$430 million every year. Last year, we imported cars worth more than US$500 million. At the same time we exported goods and services worth just US$3,4 billion against imports of US$6,3 billion representing a trade deficit of US$2,9 billion. For 2016, the projection is exports will rise to US$3,7 billion while imports will fall to US$6,2 billion. This is a slight improvement on the deficit to US$2,5 billion — but surely we can do better. We love spending and are lukewarm on production. And the money leaks like water running through a sieve. Consider the frightening statistics presented a few weeks ago by Reserve Bank of Zimbabwe Governor Dr John Mangudya.
Dr Mangudya said last year, individuals externalised US$684 million as donations, investments and bank account transfers. He also told us that companies externalised US$1,2 billion in 2015 as export sales proceeds and highly inflated management, technical and performance fees. We are bleeding our economy, spending lavishly on airtime, chicken and chips and booze, as well as shipping out billions on cars and as illicit financial flows to offshore accounts. Let’s also consider this: we have more than 60 ministers and deputy ministers for a population of some 14 million people.
These all require cars, which are imported even as local assemblers cry out for investment. Our good friends in China, that country of 1,4 billion people — which is 100 times our population — are governed by a State Council that has less than 40 members. We have 80 senators and 350 House of Assembly representatives for our 14 million people. (And we haven’t started the provincial councils yet.) They too want cars —but not the types produced by Willowvale Mazda Motor Industries and friends. The inescapable conclusion is that we have a very poor attitude towards money. Which is why we periodically get stories of the Cuthbert Dube variety, tales of pension funds being loaned out to lovers of NSSA bosses, and US$11 million insider loans at places like NetOne.
As we splurge US dollars as if we print them, we are also appealing for US$1,6 billion to feed the nation!
We should take a leaf from South Korea. As South Korea faced an economic crisis, BBC News on January 14, 1998 reported: “South Korea has exported the first shipment of 300kg of gold collected in a public campaign to help the country out of its economic crisis.
“The nationwide campaign … began on January 5, and involved ordinary Koreans donating personal gold treasures, which have been melted down into ingots ready for sale on the international markets …
“It’s an extraordinary sight: South Koreans queuing for hours to donate their best-loved treasures in a gesture of support for their beleaguered economy. Housewives gave up their wedding rings; athletes donated medals and trophies; many gave away gold ‘luck’ keys, a traditional present on the opening of a new business or a 60th birthday. The campaign has exceeded the organisers’ expectations, with people from all walks of life rallying around in a spirit of self-sacrifice. According to the organisers ten tonnes of gold were collected in the first two days of the campaign.
“But perhaps the most extraordinary aspect of the campaign is not the sums involved, but the willingness of the Korean people to make personal sacrifices to help save their economy.”
Will we ever see such commitment to Zimbabwe’s economy by Zimbabweans? Or shall we continue yapping unproductively on imported cellphones as we drive imported cars while sipping imported whiskey as we head to a fast food outlet?
COMMENT: If South Korea did it . . .
The Sunday Mail
In an August 2010 analysis, Imara Asset Management Zimbabwe’s Mr John Legat compared our consumerism and economic activity with Zambia.
Mr Legat said Zambia’s two largest breweries sold US$230 million worth of beverages in 2009, compared to US$324 million by Delta Beverages alone in Zimbabwe.
At that time, he forecast Zimbabwe’s largest mobile phone service provider, Econet, to reach sales of about US$500 million by year-end, in comparison to Zain which expected Zambians to spend about US$280 million on their services.
Mr Legat said Zimbabweans spent about U$1,1 billion on fast food from the Innscor chain, Colcom (meat products), National Foods and Spar.
Granted, currency issues and a horrible pricing model in Zimbabwe could be the reason why we spend more money on fast foods and booze than our Zambian brothers and sisters. But there is no denying that the figures also point to a consumerist culture that present economic output simply cannot afford.
We report in The Sunday Mail this week that Zimbabweans spend over US$500 million on prepaid cellular phone airtime yearly via 12,4 million registered cellphone lines.
South Africa — whose population is nearly four times bigger than Zimbabwe’s — spends about US$600 million on airtime annually. Zambia has around 11 million cellphone users and they spend about US$430 million every year. Last year, we imported cars worth more than US$500 million. At the same time we exported goods and services worth just US$3,4 billion against imports of US$6,3 billion representing a trade deficit of US$2,9 billion. For 2016, the projection is exports will rise to US$3,7 billion while imports will fall to US$6,2 billion. This is a slight improvement on the deficit to US$2,5 billion — but surely we can do better. We love spending and are lukewarm on production. And the money leaks like water running through a sieve. Consider the frightening statistics presented a few weeks ago by Reserve Bank of Zimbabwe Governor Dr John Mangudya.
Dr Mangudya said last year, individuals externalised US$684 million as donations, investments and bank account transfers. He also told us that companies externalised US$1,2 billion in 2015 as export sales proceeds and highly inflated management, technical and performance fees. We are bleeding our economy, spending lavishly on airtime, chicken and chips and booze, as well as shipping out billions on cars and as illicit financial flows to offshore accounts. Let’s also consider this: we have more than 60 ministers and deputy ministers for a population of some 14 million people.
These all require cars, which are imported even as local assemblers cry out for investment. Our good friends in China, that country of 1,4 billion people — which is 100 times our population — are governed by a State Council that has less than 40 members. We have 80 senators and 350 House of Assembly representatives for our 14 million people. (And we haven’t started the provincial councils yet.) They too want cars —but not the types produced by Willowvale Mazda Motor Industries and friends. The inescapable conclusion is that we have a very poor attitude towards money. Which is why we periodically get stories of the Cuthbert Dube variety, tales of pension funds being loaned out to lovers of NSSA bosses, and US$11 million insider loans at places like NetOne.
As we splurge US dollars as if we print them, we are also appealing for US$1,6 billion to feed the nation!
We should take a leaf from South Korea. As South Korea faced an economic crisis, BBC News on January 14, 1998 reported: “South Korea has exported the first shipment of 300kg of gold collected in a public campaign to help the country out of its economic crisis.
“The nationwide campaign … began on January 5, and involved ordinary Koreans donating personal gold treasures, which have been melted down into ingots ready for sale on the international markets …
“It’s an extraordinary sight: South Koreans queuing for hours to donate their best-loved treasures in a gesture of support for their beleaguered economy. Housewives gave up their wedding rings; athletes donated medals and trophies; many gave away gold ‘luck’ keys, a traditional present on the opening of a new business or a 60th birthday. The campaign has exceeded the organisers’ expectations, with people from all walks of life rallying around in a spirit of self-sacrifice. According to the organisers ten tonnes of gold were collected in the first two days of the campaign.
“But perhaps the most extraordinary aspect of the campaign is not the sums involved, but the willingness of the Korean people to make personal sacrifices to help save their economy.”
Will we ever see such commitment to Zimbabwe’s economy by Zimbabweans? Or shall we continue yapping unproductively on imported cellphones as we drive imported cars while sipping imported whiskey as we head to a fast food outlet?
CARTOON
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