Hyperinflation in Zimbabwe didn’t just wipe out savings — it rewired how an entire nation thinks about money. From property obsession to mistrust of pensions, Hyperinflation Induced Trauma (HIT) explains almost every business decision today.
One of the saddest realities I've read. @ my work place we've never gone through any of the hyperinflation periods, however every decision is made through that lense. Every plan, every goal that's gonna take more than 6 months has to make sure in the event of any sign or trigger that hyperinflation is coming, the company is able to wind off of any positions it holds as fast as possible. Very Sad. The Shona adage Kurara rimwe ziso wakasvinura is the best way I know to say how we operate.
This is a very good article and a subject that has not been given enough attention. I think the major problem with HIT is that it has stunted our economic growth and the policy makers have not done enough to address the issues that will go a long way to restore public confidence. In my opinion there needs to be assurance that come 2030 there is no mandatory liquidation of forex otherwise I foresee a big run on the nostro balances at the banks. If government provides proper rights for a person to own their own forex, gold reserves etc legitimately that will ensure a bit of confidence in the medium term. If we do not allow people to hold their own assets money will always be leaving for offshore as is currently the case. Also there needs to be a serious financial literacy framework that needs to be distilled to business leaders and common folk alike because only with knowledge can overcome fear of the unknown. We need more dynamic thinking in tackling our currency issue and the truth is that without investment in local economic production capacity we will end up back in the same place. There needs to be an emphasis on local investment especially with an eye on increasing the level of risk capital in the economy cause that is where substantial growth can be achieved. Right now the laws favor some foreign investors while local investors are punished for their diligence in investing in their own country....There is capital in this country but we always talk of attracting more FDI while not incentivizing our own people to invest in their own country.
Really good points. I think the topic of risk capital is very key. We need much more, and as you have mentioned, there isn't enough stimulation locally.
On restoring public confidence, I also agree. It is still at such a low. I thik its a combination of the right measures but also demonstrated over the right timeframe. Whether that can be done by 2030 remains to be seen but it definately will take a lot of work.
HIT is real and extremely pronounced in the banking industry when you see how much money is made from interest from lending out money. I think you highlighted that in an earlier article. Now like any trauma healing happens through therapy and are we as a nation ready to go through therapy and is there anyone qualified enough to provide that therapy to the nation??
it is tough maybe it is one of those where time has to heal. Challenge is that as Germany shows it can take decades. Makes you wonder if people will be prepared to accept the ZiG as the sole currency in just five years.
One of the saddest realities I've read. @ my work place we've never gone through any of the hyperinflation periods, however every decision is made through that lense. Every plan, every goal that's gonna take more than 6 months has to make sure in the event of any sign or trigger that hyperinflation is coming, the company is able to wind off of any positions it holds as fast as possible. Very Sad. The Shona adage Kurara rimwe ziso wakasvinura is the best way I know to say how we operate.
Its tough. Do you think we will be ready to do away with the USD and just use the ZiG in a few years?
I really don't think we will ever be ready. I'm not sure the public are ready for a mono-currency set-up although it is critical for us as a country.
This is a very good article and a subject that has not been given enough attention. I think the major problem with HIT is that it has stunted our economic growth and the policy makers have not done enough to address the issues that will go a long way to restore public confidence. In my opinion there needs to be assurance that come 2030 there is no mandatory liquidation of forex otherwise I foresee a big run on the nostro balances at the banks. If government provides proper rights for a person to own their own forex, gold reserves etc legitimately that will ensure a bit of confidence in the medium term. If we do not allow people to hold their own assets money will always be leaving for offshore as is currently the case. Also there needs to be a serious financial literacy framework that needs to be distilled to business leaders and common folk alike because only with knowledge can overcome fear of the unknown. We need more dynamic thinking in tackling our currency issue and the truth is that without investment in local economic production capacity we will end up back in the same place. There needs to be an emphasis on local investment especially with an eye on increasing the level of risk capital in the economy cause that is where substantial growth can be achieved. Right now the laws favor some foreign investors while local investors are punished for their diligence in investing in their own country....There is capital in this country but we always talk of attracting more FDI while not incentivizing our own people to invest in their own country.
Really good points. I think the topic of risk capital is very key. We need much more, and as you have mentioned, there isn't enough stimulation locally.
On restoring public confidence, I also agree. It is still at such a low. I thik its a combination of the right measures but also demonstrated over the right timeframe. Whether that can be done by 2030 remains to be seen but it definately will take a lot of work.
HIT is real and extremely pronounced in the banking industry when you see how much money is made from interest from lending out money. I think you highlighted that in an earlier article. Now like any trauma healing happens through therapy and are we as a nation ready to go through therapy and is there anyone qualified enough to provide that therapy to the nation??
it is tough maybe it is one of those where time has to heal. Challenge is that as Germany shows it can take decades. Makes you wonder if people will be prepared to accept the ZiG as the sole currency in just five years.