Traffic chaos a sign of Zim recovery

TO GO WITH AFP STORY BY FANUEL JONGWE A picture taken on July 12, 2012 shows vehicles on a road in Harare where local authorities are facing a new headache of traffic congestion and shortages of parking space as more people are buying cars after banks resumes giving loans and shops allow hire purchase. The growing number of cars have come with their other problems. Police blame it for an increase in highway accidents, while roads not used to heavy traffic are potholed. According to the government data, there are up to a million vehicles in the country of 12.7 million people. AFP PHOTO / JEKESAI NJIKIZANA

TO GO WITH AFP STORY BY FANUEL JONGWE A picture taken on July 12, 2012 shows vehicles on a road in Harare where local authorities are facing a new headache of traffic congestion and shortages of parking space as more people are buying cars after banks resumes giving loans and shops allow hire purchase. The growing number of cars have come with their other problems. Police blame it for an increase in highway accidents, while roads not used to heavy traffic are potholed. According to the government data, there are up to a million vehicles in the country of 12.7 million people. AFP PHOTO / JEKESAI NJIKIZANA

Published Jul 23, 2012

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A cacophony of blaring horns and revving engines drown every other sound as frustrated motorists battle to negotiate a downtown intersection where the rush-hour traffic converges into gridlock.

In what some say is a sign of Zimbabwe's economic recovery from a nearly decade-long crisis, cars are jamming the roads, posing a new headache for cities where a few years ago traffic was so thin that Zimbabweans joked you could lie in the middle of the street without getting run over.

Taxi driver Ernest Nyeche said: “I used to drive 30 minutes from my home to the city but now it takes me nearly double that because of the traffic congestion.

“Driving in the city these day is taxing. Something needs to be done about the roads to ease the congestion,” he said.

“There are too many cars.”

Nyeche has taken to charging his passengers more during the rush hour to make up for the extra petrol consumed while stuck in traffic.

After Zimbabwe trashed its worthless local currency and allowed trade in foreign currency such as US dollars, the economy started picking up.

Goods returned to the shelves in supermarkets which in 2008 were reduced to empty sheds, while shuttered firms reopened.

Personal incomes have similarly rebounded, pushing up the demand for cars.

Brains Muchemwa, an economist with Oxlink Capital, said: “Average incomes for the middle class have increased significantly from as low as $10 (R84) a month in 2008 to the average $1000 (R8400) a month.

“Households have more discretionary income and the fact that Zimbabwe is now importing 3000 cars a month - from as low as 250 in 2008 - is a sign that the economy is now vibrant on the back of increasing consumer expenditure.”

“People are investing in themselves.”

But independent economist Eric Bloch said the numbers of cars was not necessarily a sign of economic rebound.

He said: “People are now getting loans and access to hire purchase.”

Adding to that, aid organisations and government ministries have bought fleets of new vehicles for their employees.

“All that collectively has resulted in a nearly excessive number of vehicles but this is not a reflection of economic recovery,” said Bloch.

“It's deceptive; it’s reflective of a minority of the population who are very wealthy. We have a situation where a few have become excessively rich at the expense of the majority.”

CARS AS A FORM OF INVESTMENT

Businessman James Munemo agrees that many are cashing in on bank loans and hire purchase facilities to buy cars as a form of investment, while others simply will not risk their savings after many lost out when their deposits were wiped out by Zimbabwe's infamous hyperinflation.

“Buying a car is now the most sensible way to invest for the middle income earners who can't afford to invest in bigger things like houses or any other fixed assets,” Munemo said.

“That is why we have so many cars on the roads. Everybody who has a bit of cash to spare is rushing to import a car. People have lost confidence in the banking system and they would rather lock up their capital in the form of a car than put it in the bank.”

Cars - most of them used - are normally imported from Japan, Singapore, South Africa and Britain.

Banks stopped giving loans when hyperinflation hit the country to a point where prices would rise several times a day.

They only resumed after the power-sharing government of President Robert Mugabe and Prime Minister Morgan Tsvangirai switched to the foreign currency system.

Fuel which was scarce during the country's worst times, then became readily available.

Brendon Nyajeka, a dealer in the capital, said: “It appears the first thing that gets onto somebody’s mind when they get money is to buy a car.

The growing number of cars has brought other problems: police blame it for an increase in highway accidents, while roads not used to heavy traffic are potholed. According to the government data, there are up to a million vehicles in the country of 12.7 million people. - AFP

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