A survey has shown that the price of goods and services in South Africa is 50% lower than that of Zimbabwe Sunday mews reports. Wages and fuel remain cheaper in Zimbabwe but other goods and services are expensive compared to SA. NHMK Capital founder said since dollarisation, to date prices of goods must align in both countries for simple reasons:
As at 23 September 2019, the prices of goods and services in Zimbabwe and South Africa, including the cost of labour should theoretically be expected to be aligned since the currencies are at par according to the interbank exchange rate. However, this is not the case as the Zimbabwean economy continues to suffer from the threat of hyperinflation and significant rent-seeking behaviour caused by the huge arbitrage opportunities that exist in the market.
A few noted items like cooking oil, sugar and washing powder shows a difference between Zim and SA of 60% 53% AND 43% respectively.
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