ZIMBABWE

[Guest]

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[charity]

Since there wasn't a country topic yet for the new Kiva Country, Zimbabwe, I figured I would start one.  The only thing I have looked up so far was Zimbabwe's Human Development Index.  I was shocked to see that Zimbabwe is literally lowest on the global list for Inequality adjusted Human Development.  It's IHDI is 0.098, seemingly significantly below even the second lowest (the Democratic Republic of the Congo) at 0.153.

[Diane R]

When I first heard there were Zimbabwean loans funding on Kiva, I was a bit reluctant to consider them, as Zimbabwe has been in a period of hyperinflation for the past several years.  As the wikipedia article on Hyperinflation in Zimbabwe mentions, "By December 2008, annual inflation was estimated at 6.5 quindecillion novemdecillion percent (6.5 x 10¹⁰⁸ %)."  (Yes, you read that right.)  Last year I'd even bought a 100 trillion dollar Zimbabwean note on eBay as a curiosity.




I was happy to note the "N/A" under "Currency Exchange Loss" on the MKF loans, meaning that the loans are provided and repaid in US Dollars, and have since read that the Zimbabwean Dollar was no longer printed after April 2009, when the South African Rand, US Dollar, and UK Pound became the standard currencies in Zimbabwe.  I was reassured, and happy to be able to start lending in Zimbabwe, as clearly the funds are so desperately needed.

(A little more on Zimbabwe's hyperinflation, with a chart, here.)


--Diane.

[Amy-in-PHX]

When I first heard there were Zimbabwean loans funding on Kiva, I was a bit reluctant to consider them, as Zimbabwe has been in a period of hyperinflation for the past several years.  As the wikipedia article on Hyperinflation in Zimbabwe mentions, "By December 2008, annual inflation was estimated at 6.5 quindecillion novemdecillion percent (6.5 x 10¹⁰⁸ %)."  (Yes, you read that right.)  Last year I'd even bought a 100 trillion dollar Zimbabwean note on eBay as a curiosity.

I was happy to note the "N/A" under "Currency Exchange Loss" on the MKF loans, meaning that the loans are provided and repaid in US Dollars, and have since read that the Zimbabwean Dollar was no longer printed after April 2009, when the South African Rand, US Dollar, and UK Pound became the standard currencies in Zimbabwe.  I was reassured, and happy to be able to start lending in Zimbabwe, as clearly the funds are so desperately needed.

(A little more on Zimbabwe's hyperinflation, with a chart, here.)

--Diane.

That was some eye-popping inflation percentage, Diane!  Thanks for the info.  I'm not good at remembering to check for "currency risk," so I'm relieved to know the Zimbabwe loans are in US Dollars -- having jumped into the first one posted.   

[waywardcats]

The New York Times published this today regarding the current political situation in Zimbabwe.  Please note that the New York Times is now a partial pay for news service, and so this article may not necessarily be available for free.

Allies of Zimbabwe’s President Push for Quick Vote

An except:

HARARE, Zimbabwe — As Zimbabwe hurtles into another violent political season, President Robert Mugabe’s party is fiercely pushing for a quick election this year because of fears that the president’s health and vigor are rapidly ebbing, senior party officials said.

With no credible successor to unite the quarrelsome factions that threaten to splinter the party, its officials say they need Mr. Mugabe, who at 87 has been in power for 31 years, to campaign for yet another five-year term while he still has the strength for a rematch against his established rival, Prime Minister Morgan Tsvangirai, 59.

“There’s urgency, real urgency,” said a party insider, speaking anonymously because of the delicacy of the topic. “The old man is not the same as he was.”

Zimbabwe’s neighbors, who helped broker a power-sharing government led by Mr. Mugabe and Mr. Tsvangirai after a discredited election in 2008, have strongly warned against trying to hold another one too soon. But a separate Mugabe confidant said the party’s power brokers worried that the president would no longer be a plausible candidate by next year.

“Imagine him being supported all the way to the podium to address a rally and him telling the people he is the future of this country,” the Mugabe confidant said. “Even the staunch supporters would not believe that.”