Cost of living higher in Matabeleland

THE average cost of living is higher in Matabeleland provinces compared to other parts of the country, according to the Zimbabwe National Statistics Agency (Zimstat). Matabeleland North province is the most expensive in the country with the average family of five spending close to $600 per month on basic necessities.

In its cost of living update for July, Zimstat indicated that Matabeleland North, Bulawayo and Matabeleland South provinces' total monthly expenditure per household ranges between $506,59 and $582,90.

During the period under review, the average cost for basic requirements for a family of five in Matabeleland North stood at $582,90, Matabeleland South $560,42 and Bulawayo $506,59.

Masvingo stood at $500,26, Harare $494,08 and Manicaland $510,42. The lowest is Midlands at $438,92.

The International Labour Organisation recommends that the PDL should be used as a benchmark or reference point in determining minimum wages.

Economists attribute the region's top spending to the influence of tourism, mainly in Victoria Falls and Hwange as well as the impact of the rand and US$.

Bulawayo-based economic analyst Ndawo Khumalo said: "Regions have different economies based on their strengths and weaknesses, which are obviously different. For Matabeleland North, you will find out that because of tourism activities in Hwange and Victoria Falls, the province can be expensive based on the assumption that people have money."

He added that hotel rates in Victoria Falls, for instance, "were expensive compared to Bulawayo because people have money to spend on tourism".

Khumalo said Beitbridge and Plumtree, by virtue of being border towns, had a lot of activities that take place compared to other parts of the country.

For that reason, he said, the region was bound to be highly priced.

"Also Gwanda, by being closer to Beitbridge, is more liquid hence prices are bound to be high."

Another analyst Wendy Mpofu said Bulawayo was one of the most expensive provinces in the region because of the influence of diaspora remittances mainly from South Africa.

"A lot of people from Bulawayo are in South Africa, working there. The province is also more liquid because of the diaspora remittances. Businesses in Bulawayo take advantage of the fact that people in the province have money from diaspora remittances to increase their prices hence the province has also become expensive compared to other regions in the country," said Mpofu.

Zimbabwe National Chamber of Commerce (ZNCC) past president, Obert Sibanda, said it was ironic the region was highly priced despite being closer to low priced cities in neighbouring Botswana and South Africa.

"We've had those statistics (on Matabeleland region) and we're still trying to find out why the region is expensive despite its proximity to South Africa where most of the basic commodities come from. One would expect that because of proximity, goods would be more accessible hence their costing on the market would become lower," said Sibanda.

"I don't think that businesses in Bulawayo are taking advantage of diaspora remittances to increase prices as in other regions like Harare. We also have diaspora remittances from people in the United Kingdom".

The country's poverty datum line for July for an average family stood at $495,12, an increase of 0.13 percent from the June figure of $494,81.

This means an average household of five persons requires that much to purchase both food and non-food items for them not to be deemed poor. The total consumption poverty line (TCPL) for an average household in the period ranged from $439 in the Midlands to $583 in Matabeleland North. Zimstat says this is explained by the differences in average prices in the provinces.