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ZiG slows price increases in Zimbabwe

by Staff reporter
03 Jun 2024 at 08:29hrs | Views
The Famine Early Warning Systems Network (FewsNet) reports that despite the introduction of the Zimbabwe Gold (ZiG) currency, which has brought some stability, prices in United States dollars (USD) remain high.

ZiG replaced the Zimbabwe dollar in April after it depreciated by over 700% last year and 250% in the first quarter. While ZiG prices have shown relative stability, the prices in USD have continued to rise, especially as more than 80% of the market prefers to use USD.

In its latest May food security report, FewsNet highlights that staple cereal prices have remained high and, in some areas, continue to increase. For instance, maize grain and small grains are being sold at prices ranging from 9-12 USD per 17.5 kg bucket across parts of the country, compared to 3-5 USD per bucket after a good harvest.

Although maize meal, the country's staple food, is available across most parts of the country, prices range from 6-8 USD per 10 kg bag, which is above normal. This situation is expected to force households to increasingly rely on maize meal and other non-staple cereals due to the shortage of staple grain on the market.

FewsNet predicts that the early start of the 2024/25 lean season will likely deepen the erosion of livelihood assets as households seek to earn income for food purchases. This could further negatively impact households' and communities' capacity to cope with future shocks.

Moreover, the prevailing El NiƱo-induced drought is exacerbating the situation in Zimbabwe and southern Africa. The government, the Southern Africa Development Community, and the United Nations have launched appeals for humanitarian and other interventions to support households affected by the drought.

Source - newsday