Zimbabwe's economic woes challenge university

MUTARE, Zimbabwe (UMNS) - Africa University's board of directors is watching the Zimbabwe's troubled economy with concern, and financial issues are expected to be front and center this year for the school.

The board's executive committee approved an additional allocation of U.S.$333,375 for the university's budget during a meeting last November in Maputo, Mozambique.

University Vice Chancellor Rukudzo Murapa told members that the request was the result of Zimbabwe's volatile and deteriorating economy.

The funds will be used to increase the university's transportation resources, provide more recreational activities, add to library holdings of books and periodicals, and upgrade electrical and other physical plant facilities.

However, the economic situation is expected to dominate board discussions this year because of its possible impact on enrollment projections, demand for financial aid from students and staff compensation packages.

In his presentation to the executive committee, Murapa noted that inflation stands at more than 69 percent.  Fuel and electricity costs are rising monthly and causing an inflationary spiral in other sectors. Interest rates are around 70 percent, and the government failed to secure much-needed support with its balance of payments because it could not meet International Monetary Fund requirements.

"All these factors," Murapa said in his report, "have impacted negatively on the operations of the university, as financial management and strategic planning have become impossible.  ...  The rapid and unpredictable changes in the economic situation render planning, a critical management tool, redundant."

Since November, business in Zimbabwe has been hampered by fuel shortages and rationing throughout the country.  The country's main supplier of electricity, ZESA, is considering rationing power to consumers as well.

*  Stevens is director of the Africa University Office of Information.