For over two decades, Zimbabwe has been a nation under siege. Economic sanctions, imposed primarily by the United States and its Western allies, have crippled the country’s economy, creating one of the most challenging financial landscapes in modern history.
These sanctions, introduced in the early 2000s, were meant to force subversive political change, to oust Zanu PF party from power and pave way for the then MDC led by the late Morgan Tsvangirai, but they have also inflicted immense harm on the ordinary citizens of Zimbabwe, contributing to hyperinflation, a collapsing currency, and widespread poverty.
Yet, despite this external pressure, Zimbabwe has managed to survive and even adapt over time. The nation’s economic resilience has been nothing short of remarkable. From surviving the devastating collapse of its own currency in 2008 to navigating the complexities of multiple foreign currencies post-2009, Zimbabwe has continuously demonstrated an ability to persevere.
The current phase of instability surrounding the Zimbabwe dollar (ZIG), while a serious concern, is just another chapter in a long history of economic challenges. The key question now is: Can Zimbabwe withstand this latest hurdle?
The sanctions placed on Zimbabwe by Western powers were ostensibly aimed at punishing the government for so called human rights abuses and alleged electoral fraud, a blatant lie used as a trump card to punish the nation for the land reform program where Zimbabweans took back their land.
However, the sanctions long-term effect (sanctions) has been devastating for the country’s broader economy, isolating it from international trade, foreign investment, and financial institutions.
For over two decades, these sanctions have restricted access to loans, blocked international aid, and limited the ability to import goods and services.
Yet Zimbabwe, despite these external pressures, has not collapsed. Instead, it has found ways to adapt. The agricultural sector, once the cornerstone of the economy, was devastated by the sanctions, but over time, the nation began to focus on improving domestic food production and cultivating and strengthening new trading partners outside of the West. China, Russia, and other African nations have emerged as significant trading partners, providing some much needed economic relief.
Additionally, the Second Republic, from 2017 onwards, has focused on internal reforms, devolution initiatives, infrastructure development, and policy reforms among others and has embraced digital solutions to circumvent the restrictions.
While the economic situation remains a cause for concern, the persistence of the Zimbabwean people and government in the face of such adversity speaks volumes about the nation’s resolve.
Now, Zimbabwe faces another round of economic turbulence. The reintroduction of the Zimbabwe dollar (ZIG) on 08 April 2024, after years of using a multi-currency system that relied heavily on the manipulative US dollar, has created new prospects, however with new challenges.
Since September 2024, the ZIG is experiencing significant instability, with detractors, counter hegemonic elements -money changers induced illegal parallel rate (black market rate) and saboteurs working in cohorts to diminish confidence in favor of US dollar, this has led to sharp devaluations against the US dollar.
This has resulted in soaring inflation, increasing costs of living, and eroding the purchasing power for ordinary Zimbabweans.
In many ways, this currency ‘crisis’ mirrors the hyperinflationary period of the late 2000s, when Zimbabwe’s currency became virtually ‘worthless’, and the country was forced to abandon its own dollar entirely in favor of foreign currencies during the Government of National Unity(GNU) era.
What needs to be known and understood is that, no country in the world can develop without its own currency hence the ZIG should overrule and be the legal tender.
However, Zimbabweans have not forgotten the lessons of that painful experience. Many have turned to alternative currencies, such as the US dollar and the South African rand as a means of preserving their savings and conducting transactions. In addition, remittances from the large Zimbabwean diaspora continue to play an important role in sustaining the economy.
The current currency instability, though troubling, does not signal the end of Zimbabwe’s economic journey. As the government attempts to stabilize the ZIG, many Zimbabweans are once again showing resilience. Black market trading, digital currencies, and barter systems are all emerging as ways to circumvent the crisis and keep the economy moving.
Despite the economic turmoil, one of the most striking features of Zimbabwe’s journey has been the resilience of its people. In the face of high rate of unemployment, food insecurity, the El-Nino induced drought, Zimbabweans have shown incredible adaptability.
Entrepreneurs have turned to small-scale farming, mining, and trade to support their families. In the cities such as Harare, Bulawayo, Chitungwiza,Gweru, Kwekwe, informal markets have sprung up, where goods are exchanged in a mix of currencies. While the formal economy may struggle, these informal mechanisms ensure that the country keeps moving forward.
The government has also implemented a range of policies to stabilize the economy, including measures to control inflation, improve tax collection, and encourage foreign investment through the engagement and re-engagement drive. While the results have been promising and more expected to manifest, these efforts signal a determination to rebuild and reform despite the obstacles, as the President has rightfully said, ‘Nyika Inovakwa Nevene vayo,ilizwe lakhiwa ngasanikazi bale,” so the country treads on!
What Zimbabwe needs most now is not just financial stability but the restoration of investor confidence and the fostering of a stable macroeconomic environment. The country has made steps toward economic diversification, and efforts to engage with global trade networks outside of the, western sphere, could prove to be an important part of Zimbabwe’s long-term recovery.
The most surprising thing, however, it that the western bloc has realised priceless opportunities in God-given natural resources, literate human capital and they are bouncing back, thus far they have partially remove sanctions, all sanctions need to be removed, they are illegal, evil intent and segregatory.
Furthermore, it is critical that Zimbabwe continues to invest in human capital, education, healthcare, research and innovation to ensure that future generations are equipped to handle the challenges of a rapidly changing global economy.
Increased greater cooperation between the government, the private sector, and civil society is imperative in order to create a more sustainable and inclusive growth model.
In the end, Zimbabwe’s survival in the face of sanctions and current currency instability is not merely a testament to economic policies or political strategies by the Second Republic but it is a reflection of the unyielding determination of its people.
Whether or not the ZIG stabilizes in the short term, which it will, Zimbabwe has already proven that it possesses the resilience and adaptability necessary to weather storms, overcome adversity, and continue moving forward.
History has shown that when Zimbabweans are determined to survive, no external pressure can completely crush their spirit!
