Poorest Place in South Africa
Listed as the number one poorest country in the entire world, Zimbabwe’s current net worth is US$0.1. This is all due to the hyperinflation that has been eating up the economy of Zimbabwe ever since the turn of the century, when the Zimbabwean President, Robert Mugabe, took away all the land holdings from European or ‘white’ people, with this famous quote; “The only white man you can trust is a dead white man.” He is known to be the mastermind behind the inflation.Ever since 2000, the economy of Zimbabwe has been shrinking rapidly. There is a record 94% rate of unemployment. The hyperinflation became amplified during & after the 1998-2002 war in the Democratic Republic of Congo. Ever since 2003, the economic stage of Zimbabwe has gotten worse & worse.
The main reason for the demise of the Zimbabwean economy is because of the badly publicized land reforms that took place in the 2000s, when a lot of industrial standard farms, owned by the ‘white’ folk were captured & handed to the natives, many of which were politicians or military. These new land owners could not keep up with the demands of industrial farming due to lack of interest & lack of knowledge of the field & hence the economy boost that came from export was lost. Today, the only farming being done in Zimbabwe is enough to sustain the locals, but none of it is export quality materialThe rate of inflation in Zimbabwe is alarming, on a global scale. In December 2007, a Z$500,000 note was printed. The inflation had gone up so fast that in January 2008, a ten million Zimbabwean dollar note was printed, & at that time Z$60million was equal to US$40. By May 2008, a Z$500billion had been printed. The rate of inflation at that time was so fast that it took only a mere 6hours & 20minutes for your Z$100 to become Z$50.
In June 2008, Z$25billion & Z$50billion notes were printed. In July 2008, a Z$100billion note was printed.By August 2008, the government had pretty much had it with all the zeroes on the dollar bills, so they removed 10 zeroes from each bill. But one again, the inflation was too fast & the zeroes started getting added on to the dollar bills again. In November 2008, it was reported that the rate of hyperinflation in Zimbabwe has hit 89.7 sextillion percent.In the end, being tired of all the inflation, the Zimbabwean government decided to stop using its own currency. Zimbabwe is currently using the South African Rand & the US dollar.This issue can be resolved if the government of Zimbabwe would look into exploiting the mineral wealth of the country. Zimbabwe has metallurgical chromite & a wealth of other minerals; coal, iron ore, nickel, platinum, gold, etc. If the government would look into using the export of these minerals to better the economy, the whole hyperinflation matter can be contained. & of course, there is a wide area of unused, but illegally owned land in the country, which would produce export quality products to better combat the hyperinflation.
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