Inflation will look at how this unusual measure is meant to work and explore its chances of success. Also coming up, inflation is skyrocket. A in ghana to with Living Conditions at their worsting 2 decades. The countries taking desperate measures. But at what cost plus many kenyans are struggling to even put food on the table. Can they change that in president ial elections just over a week from now . And the South African town where to haps have run dry. The area has seen years of drought, but residents say theres more to the problem than just Climate Change. Ah hello, im told me all lady. Well welcome to the program. 100. 00 trillion dollars. One followed by 14 zeros mass is as in bob ways, big as denomination note from 2008 that year saw as in bob when piper inflation hit one of the highest levels in history with a 0 dollar essentially not even worth the paper. It was printed on now, inflation is down to 200 percent, still one of the highest rates in the world. And by way, central bank is introducing gold coins as a hedge. It says to reduce the need for us dollars and cub those run away prices. So will the banks plan work . Well get expert analysis on that in just a moment, but 1st, did up the news. Africas privilege machinery filed this report from herrera zima was new gold coin is named after the countrys world famous victoria falls. There is, if big is billing it is a magic bullet in that fight against the countries inflation problems. The Central Banks had to say that the aim is to provide, as in bob wins with a safe store value and reduce the demand for you as dollars. Many here to fit the grin bag to the weak local dollar, which is lost more than 70 percent of its value. This year. We do respected the pupils and barbara will know what to be doing to tempt or for the free effect of losing value. And therefore, we are providing the School Called the general good coin to show that it is to serve. And you will drift this. But here in the capital, hardy, people are not convinced that the new coin offers in solutions to the dia, economy, cut ships. They are 50, let them use, let them use, but they are queens, i dont accept them. Oh, you know, rather use both serious dollars. If i was in a more financially stable position, i would it would be something i would invest in, but more as, as a collectible. I have not so much for trading. The new gold coin cost more than 1800. 00 us dollars and the lunch. But buyers should be away, the Central Bank Sees any one possessing the coin must hold them for at least a 180 days. So they are hardly legal tender that can easily be converted to cash. When immediate need arises, economic analysts say the measure we will likely only benefit a few in bob wins with excess cash gold coin. Its one of the schemes which are going to make people are richer, those what it and those who are poor poor either into it, you know, to be in a good instrument to address or the current are challenges happen in the economy, particularly the change is farrah and inflation specs. Prices are pretty commodities have skyrocketed in our fear, the eroding confidence in any monetary and fiscal policies that the government is tried to introduce. With many people leaving hand to mouth, the government may have a hard time convincing citizens to exchange their green bags for gold discs. We can now speak to tend i, b, t, a constitutional lawyer, member of parliament and former finance minister of zimbabwe. He joins us now from harry. Welcome to the program, mister b t. Now were talking about the gold coins in zimbabwe, which the i m. F has actually called unusual. No other country has used gold coins in this way. The government says this will reduce the demand for us dollars. Do you think this will work . It work, it will work. Will the court quake is not a, you know, you gotta carry. And so, it should fungible, you can go to shopping by goods where we fit into the currency, which is why that means talk ideas in this by just that meant to date. It describes is a symbol is a store what will fight. But if you just all 5 you why will did one went to take you as well as to why wont quite a so the whole thing doesnt wake the gold coin goes basically, you might know that hes the best means of silly because its going to be so the law carries it, its a inventive its, its a bit that is below the market. So kooks i just bring to it flat, its using the local carrier, which is cheap in then you did it outside. So its a little bit instrument of money on that because we know that there is of dollars in dubai, in southeast asia, which i just read to come bpi clintons and bobby them be shipped up is going quite. So its an instrumental lab. Its a, is an instrument of rubbing the points about gold has had this reputation for a long time as being fairly stable as a, as a, a, you know what something people can use to, to store that their fortunes. You dont think that this might help zimbabwe, especially considering the wild inflation theyve seen in the last few decades. This is much 50 mandatory for demand. They do a maintenance event where decoded was so important. A is, is it means, are stored in london. Then our diesel with carrots that im a big by to put your choices really pointless. And to really wish to actually use the, the quote in that the, adequately, that k a in a minute. That is why everyone sees this is good and b, i admit because it is unprecedented design president. So who do you think is as a, as, as benefiting from this . You talk about stealing, but who exactly are these people with . Thats what this got to do to which they have to fit into something that is valuable. So theyre the ones that have that one, that is a big to meet this quote so that they can, it can fit into us into something with it. Yeah. So it, and this is exactly what is it, thats a constitutional lawyer, member of parliament and former finance minister of zimbabwe. Thank you for speaking to us and to analyze this further, im joined by and im with tom bassett. She is a zimbabwe and Development Economist based on the you can. She joins us now from manchester. Welcome to w, news, africa. And i were just saying from a report from our correspondence, some skepticism from average and by the wins over these gold coins. All their concerns justified. Thank you for having me on your show. Absolutely. Back with that just to find out, make me see when the announcement was made about the gold coins that indeed a detail of how the central banking can operate. Analyzing these and now that yeah, yeah, we have a lot of questions surrounding the way we said surrounding the framework that go in terms of supporting the whole point and how they can be access and how they can do this. So many discrepancies that actually get that as opposed to be a new strategy. Were just seeing this fail in change auction and re branded every stage as gold coins. So who exactly stands to benefit from this . This, this new, this introduction. Were again seeing those that have access to our t g s to the value of 805000. And i was which i generally ins involved with the corporate to lease the average salary for a t j around 20000. 00 a month. So that the able to save so afford one gold coin is going to take them a really long time. So generally similar to what weve seen with the interchange all here is those that up with the corporate leads that you have access to and north of 805000 r t s. But unfortunately, the way in which they will benefit all you see to benefit the individuals in the way that they will take advantage of potential advertising by the fact that theyre being paid paid at a discounted rate for the u. S. Dollar. So its possible to actually buy using your i t s and sell back us dollar value to even the banks and be able to make as much as 115. 00 to say from one gold coin just from taking advantage of the at the charge for the parents dealing because the gold coins ive been in the change option rate, which is a discounted rate and is only accessible by those that hold that amount or i t d s. And generally those will be the app corporate to lease on. Right. Can i come by, sir . Said bob, land Development Economists space in the u. K. Thanks for speaking to us and here, ah, Living Conditions and gonna are at their worst in 18 years with inflation now nudging 30 percent and the currency of a cd losing value. Ganna is also headed for an i m. F, bailout. The government blames the situation on the cove in 1000 pandemic and russias invasion of ukraine. Traders and ordinary citizens are feeling the brunt as a collector, he sent us this report from gunners. Capital a cra for 2 decades now, john kwame appear, has made a steady leavin from his electrical goods shop for him and he simply eas. Thats meant a good income from this source floor. But now he fears for his livelihood. R p. S, says gunners, Economic Crises is heating his customers heart and he is suffering on the supply side prices. Oh, daughter goes off on for very high and stuff over to him to the ceremony of we are all losing our company to us. I told him it was, things are not good at all. It comes to producing power over every domain. It has may reduce drastically. Now people can even come to town to come to by. What do you want to buy . Daniels havent seen inflation this high since. Appears it up his shop 20 years ago. When are we prizes . And now we know we are to peoples buying power wherever they look costs for food. And ive a st. Charles, eye, surgeon, for prizes going through the roof for ordinary people. Its a daily struggle just to get to buy this inflation on everything. Their food commodities war prices. So as an average, gagnon, i receive as an area of 600. 00. So as if and as it is my transfer, now its like i paid twice of what i used to be with an amount of things to this. I cant get anything to work. For me personally, im finding very difficult yard to allow the family are the why 5 and to read. And then after you also get out for the us who fees. A lot of these are commer with more interest gunners. Not saving it at a bank or so is honored out in their Interest Rate law is hi janice, economic from domains outside, gar, public finances are on sustainable. The countrys debt to g. D. P ratio is around 85 percent. The tax stake is low despite a new levy on electronic transactions. Protests and pay, disputes forced the government to suddenly make a u. T. N. And head to the i m f to ask for a peel out. Here is the countrys Vice President , a for my central banker with the challenges in eggs accessing the International Capital market balance of payments. A port was needed to bring this financing garb stabilize the economy, a Creative Space to implement Structural Reforms and restore debt sustainability. And this is really the reason why garner had to go to the i economies. I agree that a crisis could have been avoided if the government had kept tighter controls on spending. The challenges who got issues with assessing in a dead battery and relaxed discipline in our physical conduct and saw the government richer love with at the death levels are extremely austin. Oven now, gunners. Politicians want to imports help from the i m f. But report say that wont be in place to early 2023. Meanwhile, dont coming up here. Can only hope that his customers will keep coming and that his business will keep running. Oh, thats the example of ghana, but we want to widen this out. So lets bring in kevin rama the African Development banks acting chief economist and Vice President. Welcome to dw news africa. Ah, you speaking to us from washington, weve been presenting the 2022 African Economic outlook at the i m f. And this comes at a time when a lot of africa countries are really struggling with the economic crisis. Crises, ah, you know, a huge debt ah, what can these african countries do to make sure they dont become, for example, the next re lanka . Her challenge is that are in or in african countries, just like around the world because of her several overlapping global challenges that we have and has several solutions that can be domestic. I in terms of what african countries can do. But also there are things at a Global Community needs to do in order to support africa to recover from this shocks. I, including the shocks off that overhang, as you have mentioned. So one of the key things that needs to be done is for african countries to improve their capacity in mobilizing resources, revenues internally, improving the quality of that session and also non tax revenues that comes into the country a into the countries because that will help to improve and increase the capacity of the countries to Fund Development round bureau less. Weve just seen, for example, in ghana where theyve been even protest people, the average person a getting, getting hit by this several other countries on the continent are from your point of view, just how bad are the continents poorest countries faring. Now the continent poorest or countries in africa are really suffering from several our challenges. Let me talk about one, which was a men team of the h e o. The impacts of Climate Change in all we have all been talking about the impact of coven 19, which is huge, does pushed over 13000000 people annually into abject poverty. In africa. He asked, caused a lot of jobs to be lost. A lot of employment there on employment and so on. But also we have these challenge that has been persistent, which is the impacts of Climate Change. That is really creating major challenges for governments around the world. And especially in africa, losing billions of dollars in infrastructure that are destroyed by climate impacts, losing loss of lives and livelihoods, and so on. So african governments really have a lot of challenges that needs a lot of financing support from to develop their developed world in allowed to support africa, to be able to recover from dish many shocks which you are not caused by these countries. Kevin rama the africa Development Banks acting chief economist and Vice President. Many thanks for speaking to us. Ah, lou. More than 80 percent of kenyan say theyre suffering under the cost of living crisis. And official figures make clear that high inflation is worst affecting the poorest canals well get to vote on their leaders soon with the hope of improving Living Conditions. The dublin years africas correspondent felix marina sent us this report from the kenyan capital nairobi. Gibberish lamp is kenyas biggest informal sentiment and in hack york, justin or gutter is preparing traditional greens for one of our customers. The cost of basic commodities have doubled. Event she pointed. But its kenyas tipple food maze. Thats worrying her the most so much that you know that you can take ti without sugar and still survive. I. E book, you can make greens without cooking oil. Well that there is no substitute for the golly already member to the cost of mays flower has risen drastically. When thats housing everyone, the most food prices have been going up across the continent. Economist, dr. X, an iraqi says several factors have contributed to the rise upper icon 5th at a investment in agriculture. Ah roy and chris. Well, what participated in mixing in different grew up on what did miss the order of kenyas that he was often they going to be able to get enough food . They cannot trouble or they wont. They cannot be thess. So the people most affected by inflation, by the people at the law at your uncle that i cited. Now just ahead of the elections. Kenneth president , Hulu Kenyatta has intervened to cut the prizes. Mays fla, by half maze flour, shall retail across the entire territory of the republic of kenya at the price of kenneth shillings, 100 down from kenya shillings 205 for a 2 k g packet. Until otherwise directed, many kenyon sim, unconcerned that the timing of the misha could be political. They just want cheaper food, all jumbled on william when it one bar. The important thing to note is whether its a political move or not a political move we buy, you know, kenyans once miss fla, from wherever i told comes from what would you, are we going to not go up. Now this happens every election time this time around were telling them they should not increase the maze flower prices after the elections with they should also reduce the cost of other commodities like sugar and riot since he cant eat golly, every single day. Just been is one among the many kennel who continue to struggle with the rise in the praises of the basic food commodities. The 2 leading president ial candidates have promised to deal with the food prices once they occupy office, but she remains doubtful. Yennie barrage at the empty promises. So theyre just looking to be elected guys. When they get to office, they werent change anything yet. That by theyre gonna renew it there by didnt empty promises wont feed empty stomachs at home. Just been prepared food for half. I mean, not knowing if she will have another meal herself to d, and well have a special edition of d, w as africa from our studio, and now roby covering the leading candidates and all the issues in kenyas upcoming elections. Next weeks show these School Children in south africa finally have water again. After a ball hole was drilled in their school yard. 4 years ago a cape town was facing the threat of days 0. The day when water was expected to run out. That never came to pass because people saved water and the rains came. Now another town has the same problem. Kabir ha, formerly Port Elizabeth in eastern cape, has experienced 7 years of drought. Our correspondent adrian creek sent us this report. Not a drop in the tip in simple kazi tim bonnies house for 7 months now the supply has run dry. Ah, the arrival of the water truck bring some relief, but tim bonnie knows that it also spills hard work. She has to carry the water all the way home for herself and her 4 grandchildren. Yet or not, i know you are getting sick because of carrying this water every day. My johns hurt, i have body pains, i have to take painkillers to sleep or go to the clinic, especially for of elderly people. The situation is painful. Sandy paint bowes with that is, does that include all this dam should provide water for her home, but its almost empty. Its only filled to less than 15 percent of its capacity. Only 4 percent is usable water rainfall is getting more and more sporadic, and it isnt as heavy as it used to be. For 7 years, the area has been in the grip of a historic droughts. But while Climate Change certainly plays a role mismanagement, decaying infrastructure and a lack of maintenance, certainly due to it, is estimated that about one 3rd of the water supply are lost due to leaking pipes. The scale of the problem is clear to see all over town. Residents report about 200 leagues every day. The city has employed additional staff for repair walks, and new wealth are being drilled. Ground water is supposed to help black the gap that the missing rain water has left the head of what a distribution for the municipality says. But why didnt all this happen much earlier . The, quite a number of reasons. Some of them, its Financial Arrangements are obviously from the study, the point of view, we have the competing priorities from a Service Delivery perspective. And in some of with a versus financial versus the directed to other project. Lot of people we talked to actually blame luminous of healthy for the current situation. At this point in time, my focus is to be able to deliver the metro and push that day 0. And. Busy our efforts, you know, according to our 3rd day 0, thats the day when all water reserves will be used up the worst case scenario. To avoid it, each resident is supposed to use no more than 15 liters of water per day with a municipality threatening to impose strict controls. In the poor neighborhood of civil kazi, tim bonnie, people feel they have been given empty promises for months. Even the water truck that is a lifeline for so many isnt organized by the municipality. It comes from an 8 Organization Called gift of the give us a willing eunice bally, i blame the municipality, but asked the politicians when it is time to campaign for votes. You find a lot of them here asking for votes, but when the time comes to deliver services to the people they are nowhere to be found. When we need water, they are nowhere to be found like our cold. See because it and bonnie has given up hope and politics, the only remaining hope that drain may fall soon. So she will get a break from the hard work of fetching water. Well thats it for now. Weve got lots of other stories though on d w dot com, forward slash africa on facebook and on our twitter as well. So be sure to check those out. Thanks for watching with who a woman with god. Margaret was 64 when she 1st wrote a motorbike and she hasnt stopped since 18000 kilometers 18 countries. The adventure of a lifetime. No limits. Margarets incredible janet of special read through he minutes on d. W. M. The future of human kind depends on saving nature. In an increasing number of authors and artists are convinced of this in their recording their experiences in can their books save the world in 90 minutes . D. W. O. A pre climate. Oh, ready know with about hackers . Generalizing the tire societies, computers that out. Sure you and governments that go crazy for your data. We explain how these technologies work, how they can go in for. And thats how they can also go terribly. Watch it now on you to a what people have to say to us a room. Thats why we listen to their stories. Sh reporter. Every weekend on d w. Ah, ah. Ah, this is deedee of you news, and these are our top stories ukraines president of all to do here is a landscape says the 1st grain shipments are ready to depart from 2 black c ports under a un deal with
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