South African countries Zimbabwe awful these days Economic Crisis is struggling with. Inflation is at its peak. In June, the inflation rate had reached 192 percent, which is the highest. The Ukraine-Russia war has affected it even more. The prices of goods are skyrocketing due to war. Here the condition of banks has also become very bad and the whole system is dying. According to reports, in two decades investment in banks Those who did have lost the deposited amount. In such a situation, people do not have many options left to invest.
People are looking for safe investment opportunities. This situation has not happened suddenly in Zimbabwe. Inflation has been falling here for two decades. People have lost their trust in the currency here. In such a situation, people also started keeping US dollars. The situation got so bad that many shopkeepers are refusing to accept the local currency. In such a situation, as an alternative, the central bank launched a gold coin here. Meanwhile, the emphasis of the people is that investments should be made in such a place that it is safe.
people started buying cows
In Zimbabwe, people are investing in cattle amid worsening conditions. In its report, Deutsche Welle quoted Ted Edwards, CEO of Silverbank Asset Managers, as saying that cows are a safe option for investment. His company is a unit trust based on cattle. He says some asset management companies have come up with traditional ways of making money by investing in cattle.
For example, Edwards’ company has created a unit trust investment fund called Mumbai Mari. People can also use local currency to invest in it. He says that in this era of inflation, investing in cows is proving to be a profitable deal for the people. In the past few years, investment in cattle has also withstood the shocks of inflation.
‘Interest’ from investment in cattle
A large part of Zimbabwe is known for cattle rearing. Farmers say that investing in cattle has never proved to be a loss-making deal for them. Not only do we get milk, dung, etc. from cattle, there is also an option to sell it when the price rises. Cattle maintain their value even in times of inflation.
The price of cattle increases with breeding. Meaning that on an average one calf is born every year. This is more than the interest of banks at present.
People can also buy cattle in groups or can buy stake in a cow or calf independently. When the cow gives birth to a calf, its value will also be added to the client’s portfolio. The calves grow into bulls and then they are sold. With this money again a heifer is bought, which again gives benefit in the form of a cow. This method of investment works like a cyclic process.
better option than gold and silver
Farmers believe that investing in cattle is a good option instead of gold and silver. Because there is not much effect on the prices of cattle, milk and dung also keep earning and they also give calves and heifers as interest. According to the Food and Agriculture Organization, cattle account for 35 to 38 percent of Zimbabwe’s GDP.
However it also has some risks. For example, if they die due to diseases or drought, then it will be difficult to bear the loss. Gift Mugano, an economist, says that this investment option is safer in the kind of economic upheaval that is going on in Zimbabwe. That is, if the risk is not taken, then how can there be profit.
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