Robert Mugabe forces Zimbabwe aid agencies into cash crisis
The Telegraph
By Peta Thornycroft in Harare
Last Updated: 1:07AM BST 19 Oct 2008
Aid agencies have accused Robert Mugabe of cutting their lifeline to millions of starving Zimbabweans after he imposed sweeping new bank restrictions which have made it impossible for them to finance their operations.
In a bid to stop speculators profiteering on the wide gulf between the official and black market exchange rates, the Zimbabwean reserve bank has cancelled the inter-bank money transfer system used by businesses and aid agencies to move cash around.
With daily cash withdrawals limited to Z$50,000 a day - worth just £1.20 given Zimbabwe’s current soaring inflation rate - it has become impossible for relief workers to make the large payments necessary to buy and distribute food or pay staff wages.
The banking restriction came despite a warning last week by the United Nations that nearly one third of Zimbabwean under-fives were now malnourished, and that nearly half the population would depend on emergency food aid by next year.
“We cannot get money from the banks to pay people to distribute the food, it is as simple as that,” said the operations manager of one of the top three distributing agencies, which has been working in Zimbabwe for the last 16 years.
“We can’t pay our staff hotel bills, or buy food for our field workers, or even advertise for people we need to hire to distribute food,” he said. “We have enough food in the warehouse to ensure no one starves, and we have enough money in the bank to finance our operations, but the Reserve Bank (of Zimbabwe) will not give us access to it.”