CHARITY (not her real name), a 36-year-old teacher from Harare, had hoped for a brighter festive season this year. As a single mother of one, she dreamed of spending Christmas reconnecting with her family in rural Zimbabwe — a cherished tradition she held close to her heart.
But those hopes have been dashed. Zimbabwe’s skyrocketing cost of living, driven by relentless currency depreciation, has rendered her hard-earned bonus a mere fraction of what she needs to celebrate the holidays.
When the government retired the Zimbabwe dollar and introduced the Zimbabwe Gold (ZiG) currency in April, it brought a glimmer of hope.
Many Zimbabweans, including Charity, believed this bold move would stabilise the economy and ease their financial burdens. ZiG debuted at an exchange rate of US$1:ZiG13,6 on April 5. By December, that rate had spiralled to US$1:ZiG25,7, triggering widespread price increases and compounding economic distress.
“This Christmas will be tough,” Charity told the Zimbabwe Independent this week.
“Prices have rocketed, but our salaries are stagnant.”
Like millions of Zimbabweans, Charity is grappling with a bleak holiday season amid economic turmoil. Her frustration is compounded by on-going challenges in accessing her salary and bonus.
“We received half of our bonuses,” she explained. “When ZiG salaries came, it was hard to access. Some banks said the money was not reflecting in our accounts, yet it was showing on our phones.”
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In October, the Zimbabwe Confederation of Public Sector Trade Unions (ZCPSTU) reported that the least-paid government worker earned US$360 per month, of which US$60 was paid in ZiG. Charity, like many, has had to make difficult choices about how to allocate her limited earnings.
“I am keeping the half bonus to pay school fees. My child’s school does not accept ZiG,” Charity told the Independent.
“I will be using ZiG to buy basic food items. However, it is not enough because prices are very high. The exchange rates being used by some shops are higher than the official rate.”
Multiple exchange rates have been among many factors affecting consumers, who said this year has been tougher than the previous.
“Last year, I could not travel to see my parents in the village,” Charity said, shattered by prospect of a bleak holiday.
“I managed to send them groceries. This year, I will not be able to visit, and I don’t have enough money to send them groceries either.
“This Christmas is tough. I won’t be able to buy Christmas clothes for my son,” Charity lamented.
The El Niño-induced drought has devastated agricultural production, leaving millions vulnerable.
According to the 2024 Zimbabwe Livelihoods Assessment Committee’s Rural Livelihoods Assessment, six million rural Zimbabweans are facing food insecurity.
These families often rely on working relatives in urban areas to meet their food needs — an increasingly difficult burden as urban incomes fail to keep pace with inflation.
ZCPSTU is negotiating with government for a US$840 minimum wage for public sector workers to mitigate the impact of exchange rate volatility.
The Zimbabwe Congress of Trade Unions has also been pushing for wage adjustments and increases in US dollars, which will see the lowest-paid worker earning at least US$500 per month.
But the companies are mostly in bad shape, battered by a grinding liquidity crisis.
Denis Mushowe, a driver, said this Christmas was supposed to be a season of hope, buoyed by the government's introduction of the new currency.
Instead, Mushowe is worried about his daughter’s future.
“It is quite a different Christmas. Last year was better,” Mushowe said, noting that the currency crisis had complicated consumers’ predicament.
