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Zimbabwe economy takes another dive

Published on NewsOK Modified: August 20, 2014 at 5:30 pm •  Published: August 20, 2014
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HARARE, Zimbabwe (AP) — It is 4 a.m. and people are already lining up outside Zimbabwe's main passport office — four hours ahead of opening time — in hopes of securing a passport that will allow them to escape their country's dearth of opportunities and search for work abroad.

Several million Zimbabweans left for South Africa and other countries during past economic turmoil. Now, a year after the re-election of longtime leader Robert Mugabe, the country is facing new financial hardships.

Zimbabwe's unemployment rate is estimated at 80 percent, pushing many people try to earn a living as street traders. An informal economy has mushroomed around the passport office, where young men charge $5 to hold a place in the line for those eager to return to bed for a few hours. By 5 a.m., the line stretches for blocks. Hustlers point potential customers to a makeshift studio where a generator powers a photocopying machine and instant photo service.

"Make sure you have copies of your birth certificate, national ID and two passport photos ready to avoid delays," they say.

Zimbabwe, a once-prosperous nation of 13 million people in southern Africa, has struggled since 90-year-old Mugabe defeated rival Morgan Tsvangirai in a 2013 vote marked by allegations of irregularities. Mugabe's victory ended an uneasy power-sharing deal with the opposition, but foreign investors have been deterred by concerns about corruption and government policies to force foreign-owned and white-owned businesses to cede 51 percent of their shares to black Zimbabweans. Hundreds of manufacturing companies have closed in the past year.

Finance Minister Patrick Chinamasa has acknowledged that the economy is struggling, cutting growth forecasts for 2014 by half to 3.1 percent. The World Bank forecasts 2 percent.

The fallout is putting pressure on the passport department, which is unable to meet demand even though it prints 3,000 passports a day.

"There is a high demand for passports in Zimbabwe as people are leaving to escape the economic crisis the country is facing," Registrar General Tobaiwa Mudebe, who heads the passport department, told a parliamentary committee in July.

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