Hard-Boiled Egg Index
Surviving Zimbabwe’s Hyperinflation
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A real shocker that defies logic in every sense was brewed by this teapot-shaped country, and temperatures went past the boiling point in terms of economic instability. Like the old whistling kettle without an automatic cut-off switch, the noise was growing louder and louder with nobody taking any effective measures to quiet the crescendos. The terrible twins, inflation and devaluation, were wreaking havoc in people’s lives, savings, dignity, and the very ability to eke out a living. They were like agents sent from the bottomless pit of hell to fan the consuming fires of poverty and desperation. The tragedy was that neither business leaders nor politicians had any curative measures to the cruel and dehumanizing effects of the economic meltdown, which was amplified by the strangulating effects of sanctions slapped on the country by the Western world, led by the United Kingdom and the United States of America. All interventions and controls had failed badly and tended to boomerang with spine-chilling, unintended negative consequences. In fact, the inflation had gone well beyond hyper and into uncharted territory, to the extent that no one knew its exact rate. Jokes abounded on this depressing situation. One such joke, which unfortunately was true, was that the moment you finished calculating the rate, it would have changed, and therefore, there was no need to engage in this futile and unprofitable exercise. Prices no longer made sense and were sometimes adjusted twice as you stood in the queue to buy goods. I vividly remember reading a bold sign in one of the supermarkets, which discouragingly stated, “Prices are valid only after you have paid and have been presented with your receipt.” I thought it was a protest joke until the cruel reality of the statement hit me like a ton of bricks after prices were adjusted before my very eyes. I had to leave some items at the till, which I could have afforded with the luxury of some spare change, if I had been served and had paid a minute earlier. A lump of anger and frustration was stuck in my throat when I left the shop with teary eyes, but unfortunately, I could do nothing about it. If I had left the shop and gone to another one, I probably would have gotten there when the prices had increased again anyway. The adage “Time is money” had a new and impactful meaning for the general Zimbabwean populace, as they had to make urgent and panicky decisions if they earned Zimbabwean dollar (ZWD) cash; otherwise, the purchasing power of the money in their possession would be decimated by each passing second.
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About the Book
Hard-Boiled Egg Index is a true story on the struggles Kudzai Gumunyu and most Zimbabweans went through during the record- and heart-breaking hyper-inflationary period in Zimbabwe. Though saddening, the story is told in a humorous and vivid way detailing how Kudzai had to adjust to the effects of economic meltdown. Zimbabwe’s inflation rate reached a mind-boggling 89.7 sextillion percent by 2008 and US$1 was worth 3 nonillion Zimbabwean dollars had the Central Bank not debased the currency three times with twenty-five zeros. The ZWD100 trillion became the highest denomination on the planet. Before the crazily denominated notes, money was being carried in wheelbarrows and grain bags and the purchased item in your hand due to rapid loss of value. Every day became a struggle from shortages of foodstuffs, collapse of services, bank queues, as well a salary that could not keep up with inflation. The writer also gives the life and economic lessons learned, which can be useful to other countries navigating similar economic minefields. It ends with a positive outlook for the country and the hope that the Jewel of Africa (Zimbabwe) will sparkle again given its educated and competent human capital, abundant and rich mineral fields, tourist attractions, rich agricultural lands aided by a favorable climate, as well as, recently, a change of leadership.
About the Author
Kudzai Gumunyu grew up in rural Zimbabwe and holds a BSc. Agricultural Economics degree and MBA from the University of Zimbabwe. His passion is Agribusiness Finance with emphasis on financial inclusion and impact investment that target and improve small holder agriculture. His experience in Zimbabwe’s economic meltdown enables him to tell a story on how economic challenges affected people’s lives and how poor decisions destroyed a vibrant economy. Kudzai has worked in Zimbabwe and Nigeria in the banking industry impacting both large and small scale Agribusinesses positively. His vision is to see an Africa that can feed itself and compete favorably among the family of nations through digital innovation that can leap frog Africa from where it currently stands. He is married and has three children.