There are those who thrive amid Zimbabwe’s economic woes

“They now have sophisticated networks that also involve bank managers and dealing in cash has become a lucrative business.” Estimates show that the parallel market cost of the US dollar rose by more than 3,000 per cent during August alone.

In July, the government deregulated the foreign currency trading system, introducing a willing buyer-willing seller concept, which it said would help bring down inflation and eliminate the black market.

“Government’s belief that complete acceptance of its regulated official inter-bank exchange rate will help bring inflation under control amounts to no more than a shallow attempt to deny the existence of the distortions, imbalances and scarcities that its policies have caused,” said Mr John Robertson, an independent economist.

Mr Robertson believes it is a tiny fraction of the population, which is benefiting from the new foreign currency trading system. Most of them are connected to Zimbabwe’s ruling Zanu PF.

As the economic problems continue to bite more Zimbabweans are forced to live by their ‘wits’ or immigrate, he said.

He said every intervention the government has tried to implement to alleviate the suffering of ordinary citizens has failed dismally simply because industries are not producing anything.

In July, the central bank introduced what it called people’s shops that sell imported groceries at ridiculously low prices but the move was largely seen as a desperate measure to pacify voters.

“People’s Shops, stocked with imported food that were paid for with money drawn from exporters’ foreign currency accounts, and more recently with the larger off-take from exporters’ foreign currency receipts, might be said to have helped the tiny percentage of the population that they served,” Mr Robertson said. “However, in no sense have these been an answer to the country’s problems.

“The population at large remains poorly supplied, the prices of many goods remain beyond the reach of most consumers and, as more people lose their formal–sector jobs, more are being forced to live by their wits, go hungry or emigrate."

Economists are also unanimous that a political settlement is the only solution that would fix the mounting problems. “The course changes needed are political, rather than economic,” Mr Robertson said.

“No economic measures could result in changes that could work fast enough to put the brakes on our downward plunge. “But the political acceptance of the policies needed to restore confidence in the country’s future could very much more quickly lead to the release of funding to overcome the wide-ranging scarcities.” Western governments have threatened more sanctions against President Mugabe if the ongoing power sharing talks with the opposition fail.

Canada took the first initiative last week when it imposed a strict embargo on Zimbabwe protesting against alleged human rights violations.