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Final demand: Zimbabwe's debt defaulters | Final demand: Zimbabwe's debt defaulters |
(1 day later) | |
Zimbabwe is being hit by a tidal wave of debt - defaulters are on the rise as the ailing economy continues to hit ordinary citizens hard. | Zimbabwe is being hit by a tidal wave of debt - defaulters are on the rise as the ailing economy continues to hit ordinary citizens hard. |
Many are losing their properties to debt collectors or live in fear of having their homes given to creditors. | Many are losing their properties to debt collectors or live in fear of having their homes given to creditors. |
Thirty-two-year-old Hazel Mhembere, who lives in the dormitory city of Chitungwiza, 30km (18 miles) south of the capital, Harare, suffers this daily anguish. | Thirty-two-year-old Hazel Mhembere, who lives in the dormitory city of Chitungwiza, 30km (18 miles) south of the capital, Harare, suffers this daily anguish. |
She and her husband, Tafadzwa Chingandu, lost their jobs last year. | She and her husband, Tafadzwa Chingandu, lost their jobs last year. |
Both of them worked at a local bank, both lost their jobs and both had taken out loans. | Both of them worked at a local bank, both lost their jobs and both had taken out loans. |
"Due to the circumstances of us losing our jobs, we could not meet the requirements to pay off our existing salary-based loans - supposed to be paid off over a period of two years," says Ms Mhembere. | "Due to the circumstances of us losing our jobs, we could not meet the requirements to pay off our existing salary-based loans - supposed to be paid off over a period of two years," says Ms Mhembere. |
Now the $1,500 (£1,160) debt is proving hard to settle and they endlessly receive letters of demand despite having pleaded with the bank. | Now the $1,500 (£1,160) debt is proving hard to settle and they endlessly receive letters of demand despite having pleaded with the bank. |
Farai Katsande, president of the Zimbabwe Banks and Allied Workers Union, says the issue of debt among his members is a major cause of concern as the unemployment rate now stands at about 90%. | Farai Katsande, president of the Zimbabwe Banks and Allied Workers Union, says the issue of debt among his members is a major cause of concern as the unemployment rate now stands at about 90%. |
"In Zimbabwe, [once] you get out of employment, there is very slim chance, if any chance at all, that you will get alternative employment." | "In Zimbabwe, [once] you get out of employment, there is very slim chance, if any chance at all, that you will get alternative employment." |
The stress is also affecting their health, with Mr Chingandu now needing hypertension medication. | |
Their ordeal is mirrored across the nation. | Their ordeal is mirrored across the nation. |
According to the Zimbabwe Congress of Trade Unions (ZCTU), between 25,000 and 30,000 workers have lost their jobs since a July 2015 Supreme Court ruling which allowed employers to terminate contracts without giving any benefits or redundancy payments, as long as their workers were given three months' notice. | According to the Zimbabwe Congress of Trade Unions (ZCTU), between 25,000 and 30,000 workers have lost their jobs since a July 2015 Supreme Court ruling which allowed employers to terminate contracts without giving any benefits or redundancy payments, as long as their workers were given three months' notice. |
''We have nasty incidences happening as a result of the Supreme Court ruling. Our members, that include those of banks, have been dispossessed of their properties," says Japhet Moyo, ZCTU's secretary-general. | ''We have nasty incidences happening as a result of the Supreme Court ruling. Our members, that include those of banks, have been dispossessed of their properties," says Japhet Moyo, ZCTU's secretary-general. |
"We have had incidences of high levels of stress among our membership and many are under medication. It's a big crisis." | "We have had incidences of high levels of stress among our membership and many are under medication. It's a big crisis." |
Ten factors in Zimbabwe's economic slump: | Ten factors in Zimbabwe's economic slump: |
Ms Mhembere's fears about her husband's health are shared by many Zimbabweans. Private hospitals fees are out of reach for her. | Ms Mhembere's fears about her husband's health are shared by many Zimbabweans. Private hospitals fees are out of reach for her. |
Public hospitals, where services have deteriorated but still need to be paid for, are reportedly also chasing patients who have defaulted on paying their debts. | Public hospitals, where services have deteriorated but still need to be paid for, are reportedly also chasing patients who have defaulted on paying their debts. |
Their job losses have had other ripple effects. | Their job losses have had other ripple effects. |
"We have got an extended family that has been benefitting from us being at work," says Ms Mhembere. | "We have got an extended family that has been benefitting from us being at work," says Ms Mhembere. |
"We were paying their rentals and were looking after their three children's school and day-to-day needs." | "We were paying their rentals and were looking after their three children's school and day-to-day needs." |
The couple are themselves now surviving on handouts and doing, for example, laundry, but the money is not enough to cover daily needs. | The couple are themselves now surviving on handouts and doing, for example, laundry, but the money is not enough to cover daily needs. |
"My parents are very much worried. They always try to help even when you do not ask for help. | "My parents are very much worried. They always try to help even when you do not ask for help. |
"My mother is a retired teacher; old and cannot do anything on her own. I have the responsibility to look after her." | "My mother is a retired teacher; old and cannot do anything on her own. I have the responsibility to look after her." |
"Tafadzwa [a qualified reconciliation clerk] is now doing menial jobs at an industrial area. He has to off-load stuff for warehouses," says Ms Mhembere. | "Tafadzwa [a qualified reconciliation clerk] is now doing menial jobs at an industrial area. He has to off-load stuff for warehouses," says Ms Mhembere. |
"At times when he gets a job as a driver, he can take a couple of weeks driving people around so that we can pay our utility bills." | "At times when he gets a job as a driver, he can take a couple of weeks driving people around so that we can pay our utility bills." |
Defaulting on utility bills has become common and Michael Chideme, Harare City Council's spokesman, says the city is owed $500m by residents, the government and the business sector. | Defaulting on utility bills has become common and Michael Chideme, Harare City Council's spokesman, says the city is owed $500m by residents, the government and the business sector. |
"This issue is not going to end; almost 50% of Harare residents owe some kind of debt to a service provider," says Mfundo Mlilo, director of the Combined Harare Residents Association. | "This issue is not going to end; almost 50% of Harare residents owe some kind of debt to a service provider," says Mfundo Mlilo, director of the Combined Harare Residents Association. |
More on Zimbabwe's crisis | More on Zimbabwe's crisis |
Mr Mlilo says some Harare residents who have not had water for 15 years still get bills from the city council as there are fixed charges. | Mr Mlilo says some Harare residents who have not had water for 15 years still get bills from the city council as there are fixed charges. |
The city has no capacity to monitor all the water metres and check whether or not they are working - customers who refuse to pay their bills are considered debtors. | The city has no capacity to monitor all the water metres and check whether or not they are working - customers who refuse to pay their bills are considered debtors. |
Schools threaten legal action | Schools threaten legal action |
Ms Mhembere, a former customer service employee, cannot fathom why her life has taken a turn for the worse. | Ms Mhembere, a former customer service employee, cannot fathom why her life has taken a turn for the worse. |
What breaks her heart the most is not being able to meet the needs of her 11-year-old daughter, Chido, who gets ridiculed in front of other students at her state-run school if her fees are not paid on time. | What breaks her heart the most is not being able to meet the needs of her 11-year-old daughter, Chido, who gets ridiculed in front of other students at her state-run school if her fees are not paid on time. |
"We can only pay so much at a certain time. She's made to stand up with the other children [whose parents have not paid] by the headmaster. | "We can only pay so much at a certain time. She's made to stand up with the other children [whose parents have not paid] by the headmaster. |
"Then they start asking the children why they haven't paid their school fees." | "Then they start asking the children why they haven't paid their school fees." |
It is a common complaint - Stewart Mutanga, a hotel administrator who lives in Harare's high density suburb of Kuwadzana, says he has received a last warning from his children's school demanding payment. | It is a common complaint - Stewart Mutanga, a hotel administrator who lives in Harare's high density suburb of Kuwadzana, says he has received a last warning from his children's school demanding payment. |
"It looks like a very small amount [$40] but currently I cannot afford to pay." | "It looks like a very small amount [$40] but currently I cannot afford to pay." |
The letter, written by lawyers representing the council-run school, said he should pay the debt within seven days with interest - failure to do so would mean the case would go to court and he would have to pay the legal costs. | The letter, written by lawyers representing the council-run school, said he should pay the debt within seven days with interest - failure to do so would mean the case would go to court and he would have to pay the legal costs. |
So even for those who are formally employed, the average wage is so low it cannot cover outgoings. | So even for those who are formally employed, the average wage is so low it cannot cover outgoings. |
And company closures and retrenchments continue because of the economic problems. | And company closures and retrenchments continue because of the economic problems. |
"Some of our members have run away to their rural areas in fear of having their properties taken," says Mr Moyo. | "Some of our members have run away to their rural areas in fear of having their properties taken," says Mr Moyo. |
For Ms Mhembere, leaving Chitungwiza is not on the cards - yet. They are living in a house that belongs to her sister-in-law who lives abroad. | For Ms Mhembere, leaving Chitungwiza is not on the cards - yet. They are living in a house that belongs to her sister-in-law who lives abroad. |
"We cannot settle the loan without any money. | "We cannot settle the loan without any money. |
"I am just thinking if they [the bank] do come and want repayment of their loan, I would just let them take some of my property [such as furniture and electronic goods] to cover for it." | "I am just thinking if they [the bank] do come and want repayment of their loan, I would just let them take some of my property [such as furniture and electronic goods] to cover for it." |
Follow us on Twitter @BBCAfrica, on Facebook at BBC Africa, on Instagram at bbcafrica or email africalive@bbc.co.uk | Follow us on Twitter @BBCAfrica, on Facebook at BBC Africa, on Instagram at bbcafrica or email africalive@bbc.co.uk |
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