The recent Reserve Bank of Zimbabwe decision to combine all Bond Notes, Bond Coins and E Cash under the umbrella of “RTGS Dollars”, to set the exchange rate against the US dollar at 2.5:1, and allow it to float, is the most significant economic initiative of the Mnangagwa government.

Underlying the sense of doom in Zimbabwe is the ongoing conflict between ousted President Mugabe and current President Mnangagwa. The economy and therefore the basic living conditions of the people can only go backwards while the struggle between these two forces works itself out.

The MDC Alliance and the Zimbabwe Congress of Trade Unions late last week called for a “stay-away” of two, three and five days this week to peacefully demonstrate to the ZANU-PF Mnangagwa government that its economic policies had to change – mainly relating to fuel shortages, the use of Bond Notes and the need to pay workers in US dollars.

Finance Secretary Mthuli Ncube presented the new state Budget on November 22, which can only be described as a harsh austerity budget, tempered only by the promise to pay the 13th month pay within the financial year, a big improvement on past years. Some of the austerity is good – cutting wages to ghost state employees.

Last week marked the first anniversary of the deposing of former President Robert Mugabe by the military putting him and his wife Grace under house arrest, and then the ZANU-PF MPs resolving to impeach him. There was no celebration as the country struggled with economic collapse, disappointment and ongoing political paralysis.