Zimbabwean buys can of drink for $25m - or 50p

By IAN EVANS

In most parts of the world, a man carrying around this many millions of dollars might be thought to be rich beyond his wildest dreams.

Not, however, in Zimbabwe where an inflation rate of 100,500 per cent has brought a level of poverty beyond the long-suffering citizens' worst nightmares.

Basket case: 100,500 per cent inflation in Zimbabwe leaves citizens carrying bundles of cash

Yesterday this man in the capital Harare was barely able to carry the vast amount of money he needed for a simple shopping trip to buy groceries.

On paper he was a millionaire several times over.

Unfortunately, his Zimbabwean dollars are not worth the paper they are written on in a country where 25million of them was worth just one U.S. dollar yesterday – a new low.

If he had time to count out 25million of his dollars it would be the equivalent of 50p, barely enough to pay for a can of drink or a loaf of bread.

Plight: 40lb worth of Zimbabwean currency will buy just US$100 on the open market

As Zimbabwe slips further into economic collapse under the leadership of Robert Mugabe, ordinary citizens carry around bags of 100,000 and 200,000 notes bundled together in bricks to pay for the most basic of items.

In shops and businesses, electronic counting machines are as important as strong shoulders where £50 weighs in at nearly 40lb of the local currency.

It is common to see high denomination notes littering the streets, while businesses are reluctant to accept cheques or credit cards because by the time the amounts clear the system traders stand to lose significant amounts of money.

Banks are limiting the amount customers can withdraw each day because the central bank cannot print enough new notes to meet demand.

Wrecked: Shops are forced to weigh notes - with $25m enough to buy only a can of drink

On Monday, the government made it illegal for Zimbabweans to own more than 500million dollars (£10) to stop the hoarding which it claims is fuelling inflation.

For those who do manage to acquire cash most shops are often empty.

Strict government price controls to combat the hyper inflation mean it is uneconomic for traders to produce local goods and food, so they don't bother.

That means expensive imports fill the gap, but they are out of the reach of ordinary Zimbabweans who rely on the black market.

According to official figures an average family of five needs a monthly income of £17.50 (Z$875million) to survive in poverty.

But most workers and other lower paid staff earn less than the equivalent of £5 (Z$250million) a month.

An unemployment rate of 80 per cent, the monetary chaos, shortages of fuel and food and public services at the point of collapse would mean electoral oblivion in most nations.

But Mugabe, who has been president for 28 years, remains confident of re-election in the national ballot on March 29 despite a strong challenge from one-time Zanu-PF colleague Simba Makoni and opposition leader Morgan Tsvangirai.

In previous elections Mugabe has been widely accused of rigging votes by bogus ballot papers, intimidating opponents or misplacing ballot boxes in opposition areas.

Two weeks ago he banned western countries from observing the elections, raising new fears that he will again try to rig the vote.