THERE were many stories about the infamy of Mobutu Sese Seko Kuku Ngbendu wa za Banga, the late former Zaire (now the Democratic Republic of Congo, DRC) strongman who ruled the vast Central African nation from November 1965 until Laurent Kabila gave him an unceremonious boot on May 16, 1997.
Mobutu’s reign, initially buoyed by international goodwill, soon devolved into a parable of corruption, nepotism and the grotesque cultivation of a cult of personality where everything revolved around him.
The man single-handedly engineered the collapse of Zaire’s economy and ensured that the country’s infrastructure faded into the annals of history.
Urban jungles sprouted around cities, swallowing up colonial roads that disappeared into the wild as one ventured beyond city limits.
Allegedly, Mobutu amassed between US$50 million and US$125 million over his tenure as the self-proclaimed owner of Zaire.
The two opulent palaces he constructed outside Gbadolite in the DRC’s Nord-Ubangi Province, now stand in ruins — a haunting testament to his unrivaled hubris.
One palace, dubbed the “Versailles of the Jungle” by Western observers, boasted swimming pools, a nightclub, a four-star hotel and even an international airport with a 3 200-metre runway built to accommodate the supersonic jet, the Concorde.
Yes, you heard that right. The same Concorde that Mobutu used for his infamous shopping trips to Paris, because why not? After all, when you are in the business of plundering a nation, you deserve only the best.
- Awards target married couples
- Awards target married couples
- Gweru offers land to JSC
- Sibanda living his writing dream
Keep Reading
It is no wonder that LAC, Zaire’s national airline, often had to delay its flights because the owner and his wife had decided to jet off to Paris. The airline eventually collapsed, but surprise, surprise — it is enjoying a revival of sorts today.
Mobutu was also known for his distinctive leopard-skin toque, a fashion statement that, thankfully, never quite caught on.
But that is not why Muck brings him up. You see, while Mobutu enjoyed his Parisian extravagance, he imposed a local currency, the zaire, on the people he ruled with an iron fist.
In one of his final acts before Kabila nullified his ownership claim, Mobutu flooded the market with freshly printed banknotes.
The United Kingdom’s The Independent reported on the aftermath in January: “Like almost everyone in Kinshasa, (there was) a new defiance campaign; refusing to use new banknotes issued last week because they weaken an already worthless currency.
“Mr Mobutu had the good sense to head back to his French villa before the notes were released. In the last few months, the zaire (the national currency) has halved in value from 80 000 to the dollar to 160 000”.
Lady Matshiaba, 25, a baker, said, “They are happy to issue the new bills though it means more misery for us.”
Local outrage was palpable. The new notes — nicknamed “the prostate” — were shunned, with some citizens resorting to violence against those who dared to use them.
As one Kinshasa teacher put it, “We call it the prostate because cancer kills and this money may kill us.”
Mobutu’s illness became synonymous with Zaire’s worthless currency.
And now, Muck turns to our own golden disaster, the Zimbabwe Gold (ZiG). It is no secret the ZiG is in trouble — again. The problem? Its convertibility, or rather the lack thereof — a familiar issue that plagued its inflation-riddled predecessor, the Zimbabwe dollar.
Our esteemed Treasury guardian, the Professor, has been touting plans to achieve full convertibility of the ZiG “as a way to further support the unit and protect it from collapse”, insisting that everyone is “looking for stability in order to have a predictable environment for running an economy”.
“It will be wonderful if we can work on the currency convertibility aspect, to make sure that it’s a strong currency that is convertible and has all the features of a global currency,” the professor said recently.
“In order to really strengthen the currency, it’s a quest that we should have in mind and we are looking into that.”
So, they know what needs to be done. The question is, why is the ZiG still not the universal currency in its own land, nearly five months after its grand introduction?
Reports of its rejection in the market are not exaggerated. In most informal shops, nobody wants to touch it.
The same goes for retail outlets at gas stations, where notices about “swipe machine not working due to network issues” have become the norm.
The official exchange rate has remained relatively stable since its launch, but on the verdant black market, it fetches more than double its value.
This speaks volumes about the same lack of confidence and limited usage in the local economy that plagued its predecessor. Using the police and other official agents to enforce its use will not save this beleaguered currency.
Prominent economist Gift Mugano has been shouting from the rooftops about what he believes is the root of the problem.
He argues that the current system — where our owner dictates the exchange rate — is stifling economic growth and stability.
“The first priority is to establish a market-driven exchange rate, not a government-controlled one. This is akin to expecting tomato prices to stay the same in Mbare Market when there is a shortage,” Mugano said.
“Controlling the exchange rate creates shortages. Even exporters who earn foreign currency are hesitant to sell it at the official rate.
“They face a double loss: not only do they receive a portion of their earnings in the local currency at a devalued rate, but they also miss out on the higher parallel market rate.”
Arresting money changers has failed to quash the debate around ZiG. As Muck and many more educated minds have asked repeatedly: How can a currency with limited use in its own country maintain any relevance?
The ZiG cannot survive if its usage in the local economy remains as restricted as it is today.
Instead of adopting consistent policies, our authorities seem content with using the police to enforce confidence in the ZiG by arresting those daring to engage with market forces of demand and supply.
Muck repeats, yet again: if ZiG is to be our money, then so be it. Let us live and die with it.
The ZiG is our owner’s second attempt at a functioning currency, after he imposed the Zimbabwe dollar on suffering citizens in June 2019.
But this latest iteration is not faring much better. If the powers that be do not take drastic and correct action soon, the ZiG risks becoming his own “prostate” currency — a failure forever tied to his name.
