A market basket is the time-period between one and two hours before and one and one-half hours after a price in a commodity.
The Africa Market basket hours are 1-2pm and 2-4pm.
They are based on the prices of the four major commodities: oil, coffee, cocoa and palm oil.
In 2016, the market basket hours were set to expire in October, but in April, the Zimbabwean government announced a new market basket that would run until March 31, 2019.
“In a market where we are not even at the moment where prices are high enough to justify an increase in our prices, I think it is important that we don’t allow prices to get out of control,” Zimbabwean Prime Minister Robert Mugabe said in April.
Zimbabwean exporters are not able to sell their product on the market until after market hours, meaning the country cannot export its coffee at prices below its $15/kg wholesale cost, according to a report in Bloomberg.
As a result, many Zimbabwean consumers will be forced to buy their coffee at the higher price.
According to the report, some of the country’s coffee producers are in danger of shutting down due to the market price spike.
With so much demand for coffee, it’s only a matter of time before Zimbabweans are forced to take their coffee elsewhere, as the country is now importing more coffee than it can sell.
Zimbabwe’s coffee is among the top five commodities that Zimbabwean farmers rely on for export, and the country consumes nearly 10% of its coffee imports, according a recent report by the World Coffee Organization.
The coffee market basket also has to deal with Zimbabwean imports from the rest of the African continent.
The African market has a $15 billion annual value.
To add fuel to the fire, the country also has a major currency, the black dollar, which has lost its purchasing power over the past year due to inflation.
It’s unclear if Mugabe’s decision to allow the market to expire will hurt Zimbabwe’s economy or if it will have a positive impact on the country.