Latest update: 25/12/2008 

- inflation - Zimbabwe


Cash-strapped Zimbabweans vent frustration at banks
Cash-strapped Zimbabweans vent frustration at banks
While demonstrations struggled to draw huge crowds in Zimbabwe, labour activists hoped Zimbabweans would descend en masse on the country's banks on Dec. 3 to protest against crippling government-imposed withdrawal limits.
By Alex DUVAL SMITH (text)

Labour activists are calling on Zimbabweans to descend on banks in their thousands on Wednesday (Dec. 3) to request permission to withdraw all their money.

 

The organizers of the protest against crippling government-imposed daily withdrawal limits of €0.23 per bank account – enough to buy a quarter of a loaf of bread - hope Zimbabweans will be emboldened by two days of rioting in the capital, Harare, by angry soldiers unable to draw their wages.

 

In a major setback to President Robert Mugabe’s regime, unarmed but uniformed soldiers rioted last Thursday (Nov. 27) and again yesterday (Dec. 1) in the centre of Zimbabwe’s capital, Harare, after trying to withdraw cash from banks that had run out of money.

 

President Mugabe’s regime depends for its survival on violent repression against the people by the country’s army and police. Military analysts, who have known for a long time of the low morale among the rank-and-file, see their public anger as a significant setback to the regime.

 

On Monday, about 40 uniformed soldiers were joined by civilians in a furious rampage through central Harare after they waited all day in a bank, only to be told the money had run out. They were eventually scattered by hesitant riot police using sticks and teargas. The soldiers included members of the elite presidential guard, some of whom were reported by eyewitnesses to be chanting songs in support of the opposition Movement For Democratic Change.

 

Last Thursday, a similar scene led to 70 soldiers smashing windows in a bank before moving on to a bus station a few blocks away where they robbed black market currency dealers.

 

A soldier, who declined to be identified, said: "We have no food in the barracks. There is no medication in military hospitals, and we cannot access our money in the banks. The general attitude is that even if people are to riot, there would be no enthusiasm to stop them.’’

 

Defence analyst Michael Quintana said the armed forces are severely demoralised. ‘’The army is down in strength from nearly 40,000 to about 26,000. Barracks have stopped feeding all but senior officers in their messes and soldiers depend on corruption and theft for their incomes.

 

‘’If the time has come when soldiers and police are ready to revolt to demand US dollar salaries, then the game will soon be up for Mugabe,’’ said Quintana.

 

Zimbabwe's official inflation rate is estimated at 231 million per cent, but independent economists see it as much higher as prices double every two to three days.

 

Shortage of cash has led the central bank to impose a withdrawal limit of 500,000 Zimbabwe dollars (about 23 euro cents) per account, per day. This means thousands of Zimbabweans spend their days queuing outside banks. If they obtain cash, they immediately either spend it, or find a black market dealer to change their money into US dollars or South African rands.

 

The Zimbabwe Congress of Trade Unions has called on Zimbabweans to demand that banks allow them to withdraw all their money this Wednesday (Dec. 3). The ZCTU also plans a procession to the reserve bank.

 

Recent opposition demonstrations have failed to draw huge crowds. One, last week in Harare, by the National Constitutional Assembly, attracted about 700 demonstrators before it was broken up by riot police.

 

Political analyst John Makumbe said most people were too busy scavenging for food or waiting in bank queues to take part. ‘’Organisers of street demonstrators have to first of all convince the people that it is right to be killed, it is right to be injured, it is right to be locked in a nasty cell. And if you do not convince people along those lines you will not mobilize them."

 

ZCTU President Lovemore Matombo said the bank protests were aimed at mobilizing people right where they were, in queues: ‘’ We hope to draw thousands to the protests because they cannot be deemed illegal. You don’t need permission to claim your own money.’’
 

Related Content
Close