Sydney Morning Herald
By Connie Levett
August 1, 2008
ZIMBABWE’S leader, Robert Mugabe, is under pressure to resolve the country’s political deadlock because hyperinflation threatens his ability to pay his key backers, the police and the army, say his opponents.
Power-sharing talks are to resume on Sunday, the South African President, Thabo Mbeki, said after flying to Harare to meet Mr Mugabe amid reports that the talks are at a standstill. Mr Mbeki is mediating the talks.
The opposition Movement for Democratic Change says Mr Mugabe is on a much tighter timetable than it to find a resolution because of the economic freefall.
Today, with annual inflation officially at 2.2 million per cent, Zimbabwe’s Reserve Bank will introduce a currency that wipes 10 zeros off the previous notes – $Z10 billion will be worth $Z1 in the new currency. But as the regime has done nothing to improve economic fundamentals, the inflation will continue.
“We would like to see the speedy conclusion of the talks … and a successful outcome so that we can focus in the future our attention around our economy,” Mr Mugabe said this week in Harare. He voiced his “total commitment” to a successful conclusion to the negotiations in South Africa between his ZANU-PF party and the two factions of the MDC.
David Coltart, a senator-elect for the smaller MDC faction, said the speed of the talks was being driven by what was happening in the economy. “I think Mugabe understands he has no solution to hyperinflation and the looming problem of him not being able to pay the military and police has put enormous pressure on him to reach a settlement,” Mr Coltart said in Sydney yesterday.
The new currency was Mr Mugabe’s last throw of the dice. “We had been told they had new currency printed, that it was done in the hope they could tackle inflation and then introduce the new currency,” he said. “But they have had to do it without tackling hyperinflation to buy themselves some time.”
The regime’s hand was forced last month when its German banknote paper supplier refused to supply any more paper.
“The pressure is off us, we have more time, it gives us considerable leverage,” Mr Coltart said, “though of course, we can’t adopt a callous stance – the people are suffering.”