| The ZIMBABWE Situation | Our
thoughts and prayers are with Zimbabwe - may peace, truth and justice prevail. |
The Herald
(Harare)
August 29, 2003
Posted to the web August 29,
2003
Harare
REVELATIONS by the Reserve Bank that some financial
institutions have
continued to flout the Foreign Exchange Control Regulations
by deliberately
engaging in illegal foreign currency transactions, makes sad
reading.
The development comes at a time when the public was losing
confidence in the
banking sector.
It is common knowledge that most
financial institutions are no longer
serving the interests of their
clients.
The commercial banks have developed a habit of charging
exorbitant ledger
fees even to those clients whose accounts have been lying
dormant for some
time.
It is not surprising that if one were to
deposit say $100 000 and keep it
untouched for two months, he would find the
balance having gone down to
cater for the so-called ledger
fees.
Rip-off is perhaps the best term to describe the existing
relationship
between bankers and their clients.
Financial
institutions' deliberate engagement in illegal foreign currency
transactions
is probably going to far.
Although banks can charge exorbitant ledger
charges, while hiding under the
Banking Act, and get away with, perhaps the
time has come for the central
bank to read the riot act to the culprits once
and for all.
Currently, culprits are either asked to pay a financial
penalty or have
their foreign currency licence withdrawn in terms of Section
37 of the
Exchange Control Regulations.
Central bank officials warned
this week that they will disregard the first
option and go for automatic
cancellation of trading licences of the
culprits.
Indeed, the time has
come for banking officials to be told that engaging in
illegal foreign
currency dealings is criminal.
Those who have transformed banking halls
into dark alleys to engage in shady
deals must be brought to book.
The
Reserve Bank should be commended for giving a timely warning to
the
culprits.
There are provisions in the Exchange Control Act, which
allows for the
punishment of offenders by a jail term.
One hopes that
the central bank will carry out its threat to bring normalcy
in the once
respectable banking sector.
Major Retailers Accept Travellers' Cheques
The Herald
(Harare)
August 29, 2003
Posted to the web August 29,
2003
Alice Magureyi
Harare
MOST major retailers are now
accepting local Zimbabwe dollar travellers
cheques as a form of payment
following an initial resistance.
The Reserve Bank of Zimbabwe introduced
the local travellers cheques a few
weeks ago as part of measures to contain
the bank notes shortages that has
gripped the country.
Some retailers
were refusing to accept the cheques as payment for goods and
services arguing
that they did not have information on how the cheques
were
used.
However, following advertisements by the central bank in
both the electronic
and print media, retailers and other businesses are now
accepting the
cheques as a form of payment.
Among retailers who have
been putting Press advertisements advising the
public that they could now use
the cheques to buy from their shops are House
of Kumali, Radio Limited, CW
Stores, Creative World and Blooms Furni- shers.
"The new local Zimbabwe
travellers cheques are accepted for
purchases/payments for all your clothing,
furniture and electrical goods
from any of our branches nationwide," Creative
World and CW Stores said in
their advert.
"We could not accept these
cheques in the first place because we were afraid
that some of them could be
fake," said a creditors' clerk at House of
Kumali.
However, a Radio
Limited official said they had been accepting the cheques
since their
introduction.
"We have always been accepting these cheques since their
introduction
because we feel that they are convenient to our customers", said
Mr William
Musamba, the manager for Radio Limited.
The travellers
cheques are sold to account and non-account holders by
financial institutions
and are found in denominations of $100 000, $50 000,
$20 000, $10 000, $5 000
and $1 000.
Service Stations Sell Fuel At New Prices
The Herald
(Harare)
August 29, 2003
Posted to the web August 29,
2003
Harare
A few service stations yesterday started selling fuel
imported by oil
companies but most said they would not receive supplies until
next week.
The Government has ended Noczim's monopoly on procurement and
the oil
companies have undertaken to sell petrol at $1 170 a litre and diesel
at $1
060 a litre.
These prices are half to two thirds what some oil
importers have been
charging for the private imports that have supplied most
private companies
and motorists for several months.
Noczim will
continue to supply the Government, parastatals and public
transport operators
at the old prices of $450 a litre for petrol and $200 a
litre for
diesel.
Despite this undertaking, many commuter omnibus operators more
than doubled
their fares yesterday, although such hikes are illegal unless
authorised by
the Government.
While most filling stations in Harare
still did not have fuel yesterday, a
few had started selling petrol at the
new prices.
Market Service Station along Robert Mugabe was selling petrol
and a queue
had formed at the filling station when The Herald called
in.
"This is better. If fuel is found at service stations the black
market will
be destroyed. If this continues, the situation in the country
will improve .
. . the deregulation of petroleum products is a welcome
development," said
one motorist.
Attendants at the service station
said they had received about 5 000 litres
from their headquarters in
Birmingham.
However, attendants at other filling stations said they had
been told to
expect fuel next week.
On Wednesday, private oil
companies said the supply of fuel would take time
to normalise given the
severity of the situation.
The country started experiencing fuel
shortages at the end of 1999 because
of the shortage of foreign
currency.
Individuals and other companies who were importing fuel were
taking
advantage of the situation and selling it at prices similar to those
being
charged on the black market.
Until the introduction of a dual
pricing system, petrol was being sold at
between $1 800 and $2 500 a litre
while diesel was going for between $1 500
and $2 000 a litre.
Under
the two-tier pricing system, fuel imported by the National Oil Company
of
Zimbabwe would be reserved for targeted sectors such as farmers,
Government
institutions and quasi Government organisations at the
gazetted
prices.
The Government on Wednesday deregulated the
procurement of petroleum
products in a move expected to improve fuel supply
in the country.
All registered oil companies will import their own fuel
and sell directly to
the public at economic prices through approved
outlets.
There have been mixed reactions over the
deregulation.
While some players in the business sector hailed the move
saying it would
improve fuel delivery in the country, others feared the oil
companies might
fail to get enough foreign currency to import
fuel.
Economist Mr James Jowa said the increase in the price was likely
to lead to
increases in prices of other commodities.
"If supply does
not improve as anticipated, which is very likely, the price
of fuel will be
forced further upwards.
"The cost of production will rise and the
exchange rate will be affected,"
he said.
However, others commended
Government's decision saying the prices announced
by the private oil
companies were reasonable taking into consideration the
fact that businesses
were getting fuel at parallel market rates, which were
exorbitant.
"It
is an advantage to us and better for most businesses since the prices
that
have been announced are much lower than those that were charged at
the
parallel market," said Zimbabwe National Chamber of Commerce
national
co-ordinator Mr Luckmore Zinyama.
MSNBC
Zimbabwe govt, opposition fight key local polls
By Cris
Chinaka
HARARE, Aug. 29 — Zimbabwe's ruling party faces a crucial
test in urban
council elections this weekend in the face of a deepening
economic crisis
and an opposition with strong support in the country's major
towns.
Political analysts say President Robert Mugabe's ZANU-PF
party goes
into the two-day polls on Saturday as the underdog after losing a
majority
of the urban seats to the opposition Movement for Democratic Change
(MDC) in
general parliamentary elections held three years ago.
Since the June 2000 parliamentary elections, the two parties have
fought
several elections, with the MDC winning most of the urban contests
while
ZANU-PF has retained national control with votes from its
traditional
stronghold in the rural areas, home to about 65 percent of the
population.
But the MDC charges that Mugabe and ZANU-PF, in power
since
independence from Britain in 1980, have cheated and used violence to
win
elections in the last three years.
MDC leader Morgan Tsvangirai
has a pending court challenge against
Mugabe's re-election in presidential
elections in March 2002, which many
Western powers say were rigged.
Opposition victory in the council polls would expand the MDC's
symbolic
control of major towns -- Harare, Bulawayo, and Masvingo are
already under
its wings -- but the government has imposed central control of
local
municipalities through sweeping powers held by the minister of
local
government affairs.
Opposition gains would also be an obvious
setback for Mugabe, who
insists he still enjoys majority support.
The MDC says ZANU-PF has been using intimidation to win some of the
eight
mayoral and 130 council seats being contested in 16 towns around the
country.
There are also two parliamentary by-elections, one in the capital
Harare and
the other a rural constituency in northwestern Zimbabwe.
Political
analysts say ZANU-PF has been running a low-key campaign
which appears
designed to allow the government to play down any big
opposition
victories.
''I think ZANU-PF knows very well that the urban council
elections
are very difficult for it because of the economic problems, and
they will
probably be happy to pick what they can,'' said Lovemore Madhuku,
chairman
of political pressure group National Constitutional Assembly
(NCA).
Zimbabwe's major towns have suffered the brunt of a serious
economic
crisis which has brought severe fuel and banknote shortages and
soaring
inflation, now at about 400 percent.
''ZANU-PF has been
using its usual crude tactics, violence,
intimidation and tampering with vote
registers...but we are still confident
of winning these elections,'' MDC
election director Remus Makuwaza told
Reuters this week.
But
ZANU-PF spokesman Nathan Shamuyarira denied charges that the
ruling party was
employing violence and intimidation.
''This is a sickening song that
we are subjected to at every
election, and the song is clearly meant to
tarnish our image.
''The courts are there to sort out any genuine
grievances, but the
MDC must stop making false claims for their failure to
win voters,'' he
said.
Cape Argus
SA land of hope for Zimbabwe workers
August 29,
2003
Zimbabwean Kenneth Khumalo has worked in South Africa for
nearly a
decade and says the turmoil at home is unlikely to see him return
any time
soon.
With unemployment hovering above 70%, many
Zimbabweans have sought
work in South Africa and Botswana while thousands of
others have gone as far
as Britain, the United States and
Australia.
The Zimbabwean exodus has gathered pace as President
Robert Mugabe's
government faces its sharpest economic and political crisis
since
independence from Britain in 1980.
While Mugabe and his
political opponents wrestle over how to pull the
country out of its mess,
more and more Zimbabweans are voting with their
feet - joining a flow of
economic refugees that poses new problems for both
Zimbabwe and its
neighbours.
Khumalo, born Kenneth Sibanda, adopted the more South
African surname
Khumalo to get "more of a South African feel", an indication
he is ready to
stay in his adopted country.
"I still have
friends and relatives in Zimbabwe, but I only see them
once a year at
Christmas. There is nothing to draw me back home
permanently," said Khumalo,
who left Zimbabwe's southwestern city of
Bulawayo after leaving school in
1992.
Mugabe's critics, led by the opposition Movement for
Democratic Change
(MDC) say he has mismanaged the country during his more
than two decades in
power, leading to acute shortages of foreign currency,
food, fuel and -
increasingly - patience.
White-collar
Zimbabweans, who once enjoyed one of Africa's most
promising economies, have
seen their standard of living drop and many are
now leaving the country to
take up menial jobs abroad working as bus
drivers, street cleaners and hotel
workers, often illegally.
"It is hard sometimes, you never
completely get over the
homesickness," said Khumalo, who said he was in South
Africa legally.
The influx of Zimbabweans has raised hackles in
South Africa, which
has its own serious unemployment problem and where locals
increasingly
accuse foreigners of taking scarce jobs.
Figures
from South Africa's latest national census show that 41.6% of
adult South
Africans lacked formal work in 2001. Among majority blacks, one
in two people
were unemployed.
South African statistics say almost 47 000
Zimbabweans were legally
resident in the county in 2001, but officials
estimate that about one
million more are in the country illegally and say
some 3 000 to 4 000 are
deported each month.
Zimbabwe, too, is
struggling to cope with what amounts to a serious
brain drain.
The country's health and education sectors have been hit particularly
hard as
salaries for teachers and medical workers fail to keep pace with
Zimbabwe's
rocketing inflation, currently rated among the highest in the
world at nearly
400%.
Zimbabwe government doctors went on strike in June,
complaining that a
recent evaluation and pay review
of public sector
jobs had whittled away their already unsatisfactory
monthly
wage.
The Harare-based Scientific and Industrial Research and
Development
Centre says more than 479 000 Zimbabweans work outside the
country, mainly
in South Africa, Botswana, Britain and the United States -
but the
opposition and human rights agencies say the hardships at home have
driven
many more people out.
South Africa is the nearest land of
opportunity and has the added
advantage of allowing Zimbabweans to visit home
regularly and send back
essential commodities unavailable there.
Work may be better in South Africa, but many Zimbabweans still long to
return
home and avidly read Zimbabwe's newspapers online to track political
and
economical developments.
"It all looks gloomy at the moment, but I
believe one day I will be
able to return to a more prosperous Zimbabwe," said
Thulani Dube, another
Zimbabwean who works at the same hotel as Khumalo in
Johannesburg's posh
Sandton district.
Zimbabweans abroad remain
divided about what has brought their
homeland so low. Khumalo and Dube agree
that whoever is to blame, the road
to recovery will be long and hard. -
Reuters
Chissano Defends Land Reform in Zimbabwe
Agencia de Informacao de
Mocambique (Maputo)
August 29, 2003
Posted to the web August 29,
2003
Harare
Mozambican President Joaquim Chissano reiterated in
Harare on Friday that a
fair redistribution of land and its correct
utilisation are essential
aspects in the fight against hunger and poverty in
Africa.
Speaking during the official inauguration of the Agricultural
Fair in
Harare, Chissano said that this is why he wishes that the government
of
President Robert Mugabe be well succeded in allowing all the people
access
to land, without any kind of discrimination.
During a
ceremony where Mugabe did not speak, Chissano said that time has
come for
Africa to face agriculture as an important instrument to
promote
development.
He stressed the need for the Africans to share a
common vision when faced
with this kind of problerms.
Before his
speech, Chissano had visited the different pavillions in the
fair, and
recalled that in past years, Zimbabwe would be the regions' burn,
saying that
even with the problems it is facing today, the Southern African
development
Community (SADC) still faces it as essential in its strategy for
the regional
food security.
In his speech, Chissano encouraged the Zimbabweans not to
faulter, but to be
ready to fight for the consolidation of their political
and economic
independence.
He also aknowledged the Zimbabwean
society's efforts to conquer their social
and economic problems caused by the
land reform and the subsequent sanctions
imposed by the western countries,
compounded by the drought that affects the
entire southern African
region.
Chissano also noted that agricultural problems are not exclusive
to
Zimbabwe, but affect the entire continent, recalling that, for
instance,
during the 1990s, there was an increase in the food
imports.
He said that the number of mal nurished people grew from 173
million to
about 200 million in 1999, of which 194 million were in
sub-Saharian Africa.
Chissano also noted that the lethal disease AIDS is
threatening Africa's
development programmes, and that it has killed nearly
seven million workers
in the agricultural sector in the sub-Saharian Africa
sence 1985, and
another 16 million are at risk of dieing before 2020.
News24
Democracy - Mugabe-style
29/08/2003 20:55 -
(SA)
Harare - Cities, towns and villages across Zimbabwe were bracing
themselves
Friday today for what has become a depressingly familiar round of
violence,
fraud, bribery and corruption - democracy Robert
Mugabe-style.
His ruling Zanu-PF party is facing opposition leader Morgan
Tsvangirai's
Movement for Democratic Change in two parliamentary by-elections
and local
council and mayoral elections in 16 urban areas over the two-day
weekend.
A total of 279 seats are being challenged, and Mugabe is leaving
nothing to
chance, according to political analysts. Already, the ruling party
has
ensured that there will be no vote for 46 of the seats.
The MDC
candidates were forcibly stopped from registering or terrorised
into
withdrawing afterwards, and the ruling party candidates were
declared
"elected unopposed".
"It's the same old thing all over again,
brutality and cheating from start
to finish," said University of Zimbabwe
political science professor Eliphas
Mukonoweshuro.
"Only this time,
they are doing it publicly, and making no effort to hide
it. They don't care
any more. They've got away with it for so long they know
they can do it with
impunity."
A major obstacle to the ruling party's aims - the independence
of election
officials - was dealt by a high court judge on Wednesday this
week.
Blatant violation
He delivered a ruling that gave the regime
the nod to appoint army officers,
policemen and state intelligence agents to
run the elections, in what
lawyers said was a blatant violation of electoral
laws.
Judge Tedias Karwi said that the MDC's application to bar state
security
officers was "not urgent" and did not need to be heard before the
weekend.
On Friday, high court judge Ben Hlatshwayo, who openly professes
support for
the ruling party, sorted out another formality.
He
dismissed, with costs, an application by the MDC to order
election
authorities to allow 11 MDC candidates in the town of Chegutu about
10km
west of Harare to register for the elections after failing to file
their
nominations five weeks ago.
The court heard evidence that the 11
arrived at the court and found it
surrounded by a mob of ruling party youths.
Police refused to break up the
mob, so the candidates tried to march
in.
All but one had their nomination papers torn to shreds and all
were
assaulted. Four of them had to be treated in hospital for broken limbs
and
other injuries that medical reports said were caused by bricks and
heavy
poles.
The one who made it inside was able to register, but
withdrew the same day.
He told the Election Supervisory Commission, the
state-run election
watchdog, he was "in fear for his life".
Improperly
registered
Police fired shots in the air during the fracas. The
commission reported
that the atmosphere around the nomination court was "calm
and collected".
Difficulties with the voters' roll have also been
settled, according to the
MDC. The party's elections director, Remus Makuvaza
said there was evidence
of 20 000 new names on the voters rolls for the
constituencies and councils
involved who have been "improperly"
registered.
A check by the MDC showed the new voters either lived outside
the areas they
were entitled to vote in, were given vague addresses, like
military
barracks, or could not be traced at all.
Makuvaza says there
have been a sudden rush of thousands of ruling party
supporters into the
contested areas.
At the same time, in the parliamentary constituency of
Harare Central where
Zanu-PF faces certain defeat - it received a third of
the votes won by the
MDC in last year's presidential elections - the names of
about 1 700 voters
have disappeared from the roll.
The mostly whites,
as well as Susan Tsvangirai, the wife of the MDC leader,
all of whom could be
expected to vote for the MDC, said Makuvaza. Issues
like the MDC candidates'
campaigns and the attitudes of voters also appear
to have been attended
to.
The MDC reported Friday that its candidate in the parliamentary
by-election
in the Makonde district in the remote north of the country had
been arrested
on Thursday and detained for five hours by police when he drove
through as
village where ZANU(PF) was having a campaign rally.
Police
told MDC lawyers that his presence there was "likely to incite
violence",
said MDC spokesperson Paul Themba Nyathi.
'Positive
persuasion'
Party supporters' homes in nearly every contested area have
been attacked,
and party members have been abducted. On Thursday police in
Kariba arrested
the MDC mayoral candidate's election agent and his polling
agent.
Nyathi recalled that during last year's presidential elections,
thousands of
party polling and election agents, whose job was to scrutinise
the voting
process on behalf of the MDC, had been arrested the day before
elections and
released when voting was over.
And if that doesn't work,
positive persuasion may do the trick.
"It all says one thing," said
Mukonoweshuro. "Zanu-PF is totally unwilling
to abide by any democratic
principles. This is the political culture in
which it intends to continue its
rule." - Sapa-DPA
OnBusiness.ie
African Gold
production barely covers local costs
August 29, 2003
(16:07)
John
Teeling, chairman of FTSE AIM listed exploration company African Gold
today
said that the firm's gold production is barely covering the local
costs in
its Zimbabwe operations.
At the company AGM today Teeling said, 'The
economic environment continues
to decline with shortages of virtually
everything, including cash to pay
wages.'
This month the company
reported a loss of £121,000 for the year to March 31
and says the value of
its assets has fallen because of the collapse of the
Zimbabwean dollar
against sterling. At the time Teeling said the company was
persisting in
Zimbabwe because it had gold, an educated workforce,
reasonable
infrastructure and great potential.
African Gold's
facility near Kadoma in central Zimbabwe is operating at
about 10% of
capacity and has been hit by power breakdowns and 'a little'
civil
unrest.
Today he added, 'We maintain our belief in the potential of the
country and
have applied for a number of gold exploration licences.'
FinGaz
Hope of quick end to sanctions dampened
Staff
Reporter
8/29/2003 10:05:31 AM (GMT +2)
THE supreme
decision-making body of the Southern African Trade Union
Coordinating Council
has dampened the little support Zimbabwe got recently
by reiterating that
Harare should restore the rule of law and revive the
ailing
economy.
In a statement issued at the end of the council meeting
held in Harare
on Monday, SATUCC was unkind with the Zimbabwean government
for violating
human rights.
"The executive council reaffirmed
its resolution on Zimbabwe, calling
for the government to respect human
rights and trade union rights.
"In particular, the council called
on Zimbabwe government to adhere to
the fundamental rights outlined in the
social charter, to which Zimbabwe is
a signatory," read part of the
statement.
The statement by the regional trade union body comes at
a time when
several heads of African states had called on the lifting of
restrictions
imposed on President Mugabe and other members of his government.
The calls
were made at a regional summit, which ended in Tanzania this week
on Monday.
"The fundamental rights being referred to are freedom of
association
and the right to collective bargaining," SATUCC said in reference
to the
violation of trade unions' rights.
In June this year, the
International Labour Oragnisation blacklisted
Zimbabwe for violating and
suppressing workers' rights among other things.
The militant
Congress of South African Trade Unions is also putting
pressure on President
Thabo Mbeki to help resolve the socio-economic crisis
in
Zimbabwe.
SATUCC also endorsed the objectives of the New
Partnership for Africa
Development (NEPAD) being spearheaded by Mbeki and
Nigerian president,
Olusegun Obasanjo.
Zimbabwe, which is
concerned that NEPAD could be used by the West to
gain control of the
continent, is still to endorse the initiative.
FinGaz
Church leaders to meet on inter-party dialogue
Staff Reporter
8/29/2003 10:01:58 AM (GMT +2)
CHURCH
leaders trying to kick-start dialogue between the ruling ZANU
PF and the
opposition Movement for Democratic Change (MDC) to end the
economic and
political crisis in Zimbabwe say they will meet next week to
review their
position following ZANU PF's rejection of the mediation role
they are
offering.
Trevor Manhanga, the spokesman of the church groups that
have been
trying to bring the warring political parties together, said
yesterday they
were going to meet next week to decide the way
forward.
"I was away last week and I don't know what my colleagues
who have
been meeting the parties discussed but we will be meeting next week
to
discuss on what position to take," Manhanga said.
He said he
could not comment on the position taken by ZANU PF that the
churches had no
mandate to start dialogue between Zimbabwe's two main
political
parties.
"We will most likely issue a statement on our position
after the
meeting next week," Manhanga said.
After weeks of
trying in vain to get ZANU PF to agree to come to the
negotiating table, ZANU
PF secretary for legal affairs Patrick Chinamasa,
last week said there was no
role for the church leaders to play in the talks
as his party wanted direct
talks with the opposition.
"I talk to Welshman (Ncube), Gibson
(Sibanda) and all other MDC
members in parliament everyday, so why would
someone then come to us and say
sit down and talk?' Chinamasa said. "We will
talk when the time is right but
the talks have to be direct. We are ready to
talk to any Zimbabwean who has
this country at heart."
The
Zimbabwe Council of Churches, the Evangelical Fellowship of
Zimbabwe and the
Zimbabwe Catholic Bishops' Conference were spearheading the
talks. They met
both President Robert Mugabe and opposition leader Morgan
Tsvangirai
separately as they tried to break the political impasse gripping
the
country.
FinGaz
‘Unelected’ groups must be included in the
talks
8/29/2003 9:26:43 AM (GMT +2)
In this part,
the fourth in a five-part series, Harare-based legal
practitioner Isaya
Muriwo Sithole, reinforces the centrality of
constitutional review in an
effort to normalise Zimbabwean politics and it
also argues out a case for the
involvement of the so-called "unelected"
groups in the talks, if and when
they resume.
There are various conceptual issues that arise
from my last
contribution in this series.
Some Zimbabweans think
that the crisis in Zimbabwe is largely a
political dispute between the
government and the opposition and that these
two parties are sufficient to
resolve the crisis.
After all, it is representatives of ZANU PF and
MDC that constitute
parliament, so why involve "unelected" groupings in the
resolution of the
crisis; whose "mandate" do these interest groups have and
whose interest do
they represent?
The protagonists of this sort
of thinking are also invariably the
advocates of the idea that the
progressive movement must concentrate on
political or regime change and then
address the constitutional question
afterwards.
This group of
people also argues that ZANU PF and the government, like
a leopard, will not
change their spots and so it is futile to insist on the
democratisation of
the constitution with the ZANU PF government still in
power; otherwise
chances are that we will have a replica of what happened
during the years
1999-2000.
A significant number of people under this category is
also anti-talks.
I understand where the advocates of this school of
thought are coming
from and I respect the sincerity of their convictions, but
I do not share
the underlying pessimism in the govern-ment’s will and ability
to change,
especially with the new heights the crisis is assuming. The view
that the
President is irredeemable (won’t change) is too deterministic
and
pessimistic an idea which is often advanced by the more sanguinary among
us,
wittingly or unwittingly. Like all of us, the President will push his
agenda
relative to options available to him at a given point in time. He is
not as
blind an actor and will know when his options have narrowed. And they
have
rapidly narrowed since his controversial re-election.
But I
can’t help admitting that this is a minority view, judging by
what one reads
in the media.
In my last contribution I accused the two major
political parties of
trying to assume a monopoly over what should be national
dialogue, to the
exclusion of other interest groups. I was attending my
uncle’s funeral in
Glen Norah over the weekend and somebody recognised me and
was very keen to
know how "unelected" groupings fit into the puzzle of the
resolution of the
political stalemate in Zimbabwe. This question is not very
easy to answer
without tracing the history of this country from round-about
1997.
The involvement of civil society in Zimbabwe’s politics must
be put in
perspective if we are to understand the dynamics that are currently
at play.
Up until 1997 Zimbabwe did not have a vibrant and
discerning civil
society, neither did it have a credible opposition party
worth talking
about.
The under-developed socio-economic
structure undermined the emergence
of social forces capable of exerting a
counteracting effect on the
totalitarian tendencies of the post-colonial
governing elite.
When there was a sudden upsurge of labour and
student riots in 1997-98
the corridors of power were shaken and the
heavy-handedness with which the
security forces dealt with these revolts
raised serious constitutional
questions particularly in relation to the
powers of the President, the Bill
of Rights, the electoral process among
other issues.
Disconnected calls for constitutional reform could be
heard from
various quarters of civil society and this resulted in the
formation of the
National Constitutional Assembly in 1997.
The
major objective behind the formation of the NCA, which is a loose
coalition
of opposition political parties, civic organisations including
labour and
student movements, church groups, youths, lawyers, progressive
intellectuals
and academics, was for it to act as a common action front to
lobby the
government to embark on democra-tisation of the constitution.
In
January 1998 there were a series of "food riots" and widespread
looting and
destruction of property resulting in the President declaring a
state of
emergency in terms of the Presidential Powers (Temporary Measures)
Act, and
the demonstrations were ruled illegal.
This is when the demand for
constitutional review began in earnest.
There was widespread
perception that since its inception in 1987, the
Executive Presidency System
has concentrated far too much unaccountable
power in one person’s hands and
this power has been badly abused to the
detriment of the people of
Zimbabwe.
The government refused to engage the NCA in meaningful
discussions
over constitution making.
The NCA was advocating
that an all-stakeholders conference be convened
to agree on the process and
the legal framework for the process.
Government knew that such an
approach would undermine their intended
dominance of the
process.
After realising the political consequences and the
difficulty – if not
the impossibility of ignoring calls for constitutional
review, the
government sought to highjack the whole process and as we all
know, they
preferred to proceed by way of a commission appointed by the
President,
while a defiant NCA, under Tsvangirai’s chairmanship, embarked on
a parallel
process whose major aim was to act as a gauge to the findings of
the
government-appointed constitutional commission.
The
government’s main argument was that the NCA being an "unelected"
body of
persons, neither had the "legitimacy" nor the "mandate" to "dictate"
a
process for constitutional reform.
The arrogance of the government
was startling and the various civic
groups that constituted the NCA began
consultations about the need and
possibility of forming a vibrant opposition
political party to challenge
ZANU PF in the 2000 general
elections.
Thus was born the MDC, starting as a broad "movement" of
various civic
groups and individuals pushing for "democratic
change."
It is in this broad movement that serious consultations
about the need
to form a vibrant opposition party were made, resulting in the
launch of the
MDC as a political party in September 1999.
To
date, the MDC remains a member of the NCA.
The government responded
by lumping the MDC, NCA ZCTU and ZINASU
together as enemies of the
government.
In view of the controversies surrounding the process of
constitution
making presided over by the Constitutional Commission, the
referendum became
a critical event in the constitutional reform
dichotomy.
On one hand, for the constitutional commission, the
referendum was an
exercise in legitimacy.
For a body that had
been roundly condemned as partisan and seeking to
rubber stamp the views of
the government the referendum was an opportunity
to say its crisis: "The
people have spoken".
On the other hand, for the NCA, the referendum
had serious political
implications.
If the people were to
endorse the draft constitution, the NCA’s
theoretical premises would have
been badly bruised for the obvious question
would have been: "If the people
have endorsed this constitution, who are you
to say it is
defective?"
The triumph of the "NO" vote was a triumph for the
so-called
"unelected" interest groups.
The "NO" vote proved that
the government’s criticism of the NCA was
misguided.
By virtue
of the diversity of its membership, the NCA represented the
view of a
significant number of ordinary Zimbabweans.
Constitution-making is
about setting out governance structures and one
need not be elected to
articulate a view about the way an issue of public
interest should be
addressed.
So if the readers are persuaded that comprehensive
constitutional
review should be integral to the talks then it goes without
saying that
"unele-cted" groupings of civil society and other minority
interests should
also be accommodated.
These talks have a
crucial bearing on the future of Zimbabwe and it
must follow from their very
nature that if ordinary citizens organise
themselves in some form and agitate
for constitutional reform to top the
agenda so as for them to participate, it
is not sufficient to raise their
unelected nature as a basis for rejecting
their views.
What should matter, in principle, is that the views of
any person on
matters of constitution-making ought to be
respected.
Although constitution- making can easily be dominated by
the
government of the day, as was the case in Uganda, Ghana and Zambia,
to
mention just but a few, there is also evidence of transitional
processes
where a broad involvement of key players including civil society
has worked,
as was the case in South Africa, Namibia, and
Malawi.
The Malawian experience demonstrates that where there is a
national
consensus, it matters not that groups articulating a view have not
been
elected.
The Zambian experience under Chiluba is most
extreme in terms of
dominance.
The MDC is modelled along the
lines of Zambia’s MMD under Chiluba and
those who argue that political change
should precede constitutional change
must be reminded of the Zambian
experience.
Amid the euphoria of the collapse of the Kaunda regime,
the Chiluba
government appointed a commission to review the constitution.
Most members
of the commission were directly appointed by the President while
others were
appointed by him on the recommendation of some organisations.
When the
commission submitted its draft, a number of its key recommendations
were
rejected by the government which substantially amended the draft,
rejected
calls for a referendum and had the constitution promulgated by
a
government-dominated National Assembly. There is no guarantee that the
MDC
will be different from the MMD of Zambia.
The point is
that right now Zimbabwe has got an incompetent government
which is difficult
to remove inspite of the fact that we can see that this
government has no
capacity to take us out of the current crisis. The
difficulty lies in that
the government has put in place a legal framework,
in the form of a
constitution, which makes it difficult to remove it. In my
view, the first
step towards resolving this difficulty is changing the legal
framework and
create a level playing field for all the political players in
the country and
this is why civil society and minority interests are
insisting on
constitutional change because we don’t want the new government
to get
protection from the same oppressive constitutional order. Civil
society does
not seek political power. Instead, it seeks to limit it.
If
these groups have always been involved in the democratic struggles
of this
country, what is the rationale of excluding them now from the talks
that are
a culmination of these struggles, and which talks are meant to
usher into the
long awaited for democratic dispensation. These talks are not
just about
power-sharing between ZANU PF and MDC but about restoring
legality,
legitimacy and constitutionalism. This can only be achieved by the
broad
participation of the generality of Zimbabweans and as such a
negotiation
process that allows for such participation is a prerequisite for
the
restoration of these values.
From the history outlined above,
even the MDC itself can not afford to
brush aside the issue of constitutional
change, neither can it afford to
marginalise the so-called "unelected"
groupings. The MDC is a "civil society
party’ whose genesis lie in the
constitutional reform movement and the
sooner they realise this the
better.
FinGaz
Malaysians keen to help Zim tap into new energy
sources
Staff Reporter
8/29/2003 9:55:06 AM (GMT
+2)
MALAYSIAN investors are keen to assist Zimbabwe tap into new
energy
sources to lower the heavy costs incurred in importing petroleum
products, a
local banker has said.
"I can confirm that while in
Malaysia last week, discussions were held
with interested parties from that
part of the world and the Middle East, who
share that vision of long-term
sustainability of the energy sector," said
the Jewel Bank managing director
Gideon Gono.
The Jewel Bank boss could not disclose issues
discussed with the
potential investors in Malaysia.
Zimbabwe has
a huge resource of coal bed methane gas in the Hwange,
Lupane and Gwayi area
that can be converted into engine fuels, electricity
and
fertilisers.
Investment in appropriate technology and the
development of a
synthetic fuel industry would reduce the country's heavy
dependence on
imports that have sucked the scare foreign
exchange.
Gono said the energy sector was undoubtedly one of
Zimbabwe's weakest
industries that require massive fresh investments to
develop.
"Critics would argue that we require huge capital outlays
to exploit
these resources. That is a fact. We need huge investments, but
there will be
light at the end of the tunnel.
"We only need to
start now and enjoy the benefits, which will come 10
to 15 years
later.
"Academics say it is part of wisdom to subordinate present
comfort for
the future. Let us get together and do something that will
benefit
posterity.
"The magnitude of the challenge and the
resources should not frighten
us into submission or shrink our determination
to see it through," said
Gono.
He said most of the developed
countries such as the United States ,
Malaysia, the United Kingdom and Japan
are successful because they invested
in their future.
"Their
citizens are enjoying the fruits of the vision of their
forefathers. Today,
we are independent because some people made it their
business to free this
country.
"We have an obligation as Zimbabweans today, especially
for some of us
in positions of influence to ensure we live a legacy of
stability and
enjoyment to posterity," he said.
FinGaz
Politburo debates Mugabe
Brian Mangwende Chief
Reporter
8/29/2003 9:53:43 AM (GMT +2)
THE ruling ZANU PF
party's supreme decision making body, the
politburo, will within a fortnight,
for the first time since independence
from Britain, tackle what has been
widely considered a political hot
potato -the issue of President Robert
Mugabe's succession.
Retired Chief Air Marshal Josiah Tungamirai, a
ZANU PF founder member
who belonged to the party's liberation war council,
Dare reChimurenga, said
the politburo, the chief committee that makes
policies and decisions, would
meet in a fortnight to tackle the power
struggle in the party and discuss
the issue of Mugabe's
successor.
"We are going to discuss the succession issue either at
the end of
this month or early next month," Tungamirai said. "A number of
people have
expressed interest in the job, but we'll discuss that when we
meet."
The move is widely expected to light the fuse for renewed
optimism
about the resumption of stalled talks between the ruling party and
the
Movement for Democratic Change (MDC).
It has been suggested
but not denied that, even though there was
unanimity that a negotiated
settlement to the country's crisis would provide
a much needed tonic to the
battered economy, the emotive issue of President
Mugabe's succession was one
of the major stumbling blocks holding back the
resumption of the
talks.
President Mugabe, at the helm of ZANU PF since the last half
of the
1970's and who many believe is, despite murmurs of a distant departure
date,
seeing out his last term in office, early this year threw his weight
behind
debate over his succession, setting the stage for
behind-the-scenes
acrimonious in-fighting among those jostling for the post.
And splits over
the issue have since emerged in the ruling party as widely
predicted.
Following a deeply divisive parliamentary and later
presidential
elections, there has been pressure on the two major political
parties, the
MDC and ZANU PF, to bridge what is increasingly becoming a
violent political
divide. It is however the in-fighting in ZANU PF that has
been holding back
a move towards a deeper rapprochement with the
MDC.
Sentiments that of late have been expressed by some senior
ZANU PF
officials who fear that they could be written out of the script in a
new
political dispensation have also cast fresh doubts over the ruling
party's
commitment to the widely supported talks.
Tungamirai
could not be drawn to give names of party members who have
expressed interest
in succeeding President Mugabe.
However those known or said to have
long coveted the top post include
Joseph Msika, the vice president, Didymus
Mutasa, the party's secretary for
external affairs, Dumiso Dabengwa, a
politburo member, Sydney Sekeramayi,
the Minister of Defence, Emmerson
Mnangagwa, the Speaker of Parliament, John
Nkomo, the Minister of Special
Affairs in the President's Office and former
finance minister and politburo
member, Simba Makoni.
Zimbabwe's High Commissioner to South Africa,
Simon Moyo, believed to
be the late Joshua Nkomo's close lieutanant, and the
Minister of Rural
Resources and Water Development Joyce Mujuru, are also
among the list of
possible contestants.
Mujuru, the wife of ZANU
PF kingmaker, retired army general Solomon
Mujuru, is the only woman since
independence to act as Minister of Defence
following the death of Moven
Mahachi in 2001.
"The matter is going to be discussed whenever it
is raised," Nkomo
said adding, "if there is a vacancy at the top, the process
is very clear.
Nominations will come from the provinces. Everybody will be
involved at all
levels. If people want to talk about it they can , but you
cannot say that
can be conclusive because the process is clear when the
matter is being
formally discussed.
"In any case, what the
President meant when he opened the door to the
succession debate was that you
can talk about it if you want, but the
position is not yet vacant. He has not
said he is stepping down so people
can talk as much as they want," Nkomo
said.
ZANU PF's spokesman Nathan Shamuyarira could not be contacted
for
comment, but he has previously said the process to choose a successor
would
begin in all provinces before filtering into the party's central
committee
and finally the politburo.
The Financial Gazette
understands that the politburo meeting will be a
precursor to the party
process of choosing a new leader. It is however
difficult to say whether a
change of leadership in ZANU PF will bring with
it key policy changes or just
changes on emphasis on certain issues.
Commenting on the line-up of
possible candidates for the top job, a
ruling party insider said: "Well,
Sekeramayi is very strong in the party, he
doesn't have a lot of enemies.
Makoni is strong nationally, but has no real
support in the party. Mutasa is
respected but age may be a disadvantage. No
one really knows where Dabengwa
stands. Mujuru is the only woman success
story in the party. Moyo was like to
the late Joshua Nkomo what Mnangagwa is
to Mugabe. Msika is too old to
continue with such demanding tasks. He may
have to play on the sidelines.
Nkomo didn't even stand in the 2000
parliamentary election so he is a bit
tricky."
Mnangagwa, widely viewed as President Mugabe's confidante,
has often
been touted as the President's favourite and has been tipped as
Mugabe's
preferred choice for the top position. But Mnangagwa has few backers
in the
politburo. In 1999, Nkomo defeated Mnangagwa for ZANU PF's
national
chairmanship and the following year, ruling party Members of
Parliament
voted the former spy agency chief as Speaker of Parliament after
he lost the
Kwekwe seat to the Movement for Democratic Change (MDC) in the
historic 2000
parliamentary election.
Factions along ethnic and
tribal lines have already emerged within
ZANU PF, with Deputy Minister of
Youth Development, Gender and Employment
Creation Shuvai Mahofa accusing
senior party officials of underhand
manoeuvres to discredit President Mugabe
and his two lieutenants,
Vice-Presidents Simon Muzenda and Msika, in the
succession debate. Muzenda
is out of the race due to ill health.
Insiders said this week ZANU PF risked splitting down the middle if
the
succession issue was not handled carefully. They said the tribal factors
had
engulfed preparations for the debate, hinting at guarded positions to
save
the ZANU PF-PF ZAPU unity accord that brought two rival parties
together in
1987.
"The unity accord signed between ZANU PF and ZAPU in 1987 may
be a
thing of the past if the succession issue is not handled delicately,"
one
insider said. "ZANU PF may shoot itself in the foot if they are not
careful.
Already, cracks have emerged regarding the proposed talks with
the
opposition with some for and some against the talks. But if they
refuse
Mugabe's choice then we are probably going to be stuck with Mugabe for
some
time to come as he would be sceptical of any other choice."
Another ZANU PF insider said a split in the party over Mugabe's
successor
would spell the demise of the party, which has ruthlessly shrugged
off stiff
opposition from the MDC, whose leader Morgan Tsvangirai is facing
high
treason charges for allegedly plotting to assassinate President Mugabe.
FinGaz
Mudzuri vows not to give up fight for Town
House
8/29/2003 10:06:58 AM (GMT +2)
AS the battle for
the political soul of Harare intensifies, suspended
opposition Movement for
Democratic Change (MDC) executive mayor, Elias
Mudzuri, vowed not to give up
the fight to run Harare, the opposition's
bedrock of support. The MDC won 44
of the 45 council wards in Harare, with
its mayoral candidate, Mudzuri,
romping home with 262 000 votes to ZANU PF's
57 000 in local government
elections that were only conducted after numerous
court applications by
residents and members of the opposition. Mudzuri, a
former ZANU PF student
activist and founder member of the Forum for
Democratic Reform (Trust) that
gave birth to the opposition Forum Party then
led by the late former Chief
Justice Enoch Dumbutshena, says he is ready to
do battle with Ignatius
Chombo. Chombo, a ruling ZANU PF party functionary,
is the Minister of Local
Government and National Housing who is believed to
have hatched a scheme to
eliminate the opposition from the seat of power,
Harare.
The
Financial Gazette's News Editor, DUMISANI NDLELA, spoke to Mudzuri
about
issues surrounding his suspension and the challenges of being the
first
opposition Mayor for the capital.
Excerpts:
Question: Why did the Minister of Local Government and National
Housing,
Ignatius Chombo, suspend you?
Answer: It's political. The
government wants to run Town House and I
was the stumbling block. The MDC won
the capital vote democratically, but
the government wants to come back
through the back door. They are being
disrespectful to the Harare
electorate.
Question: You should be guilty of some form of
misconduct to have
Chombo targeting you like that?
Answer: I am
not guilty of any misconduct, but if there was any form
of misconduct, I
should have been investigated first. To the electorate and
council, I am
blameless, but to Minister Chombo, I am very guilty. My crime
is that I am a
mayor coming from the other side of the political divide and
I have demanded
change in the way council is run. Chombo wanted me to
maintain the status
quo. Let us be honest about it. Over the years ZANU PF
had managed to make
City of Harare its fiefdom - jobs for the boys, youth
league and women's
league cadres and contracts for the party connected
businessmen. The fear -
real or imagined - is that the MDC is going to
dismantle this ZANU PF edifice
and on its place build an MDC fiefdom. Yes,
this is a political turf war and
the old system is refusing to give way to
the new political
order.
Question: When are the investigations against you to
start?
Answer: I should have been investigated first before being
suspended,
or if they felt I could prejudice investigations, force me to go
on leave.
So, you have to ask my accuser about that. He seems not to be in a
hurry to
start his investigations. What I have heard are false starts just to
keep us
guessing and speculating on when the investigations will start.
Meanwhile,
our mandate is subverted and our tenure is disturbed - the status
quo is
maintained and ZANU PF is happy. Simply put, ZANU PF is trying to
subvert
the MDC mandate through some dictatorship manipulation.
Question: But there are other MDC mayors in the country and Chombo
hasn't
been harsh on them, why you?
Answer: Harare is different. Firstly,
it constitutes one third of the
country's electorate. Harare is the capital
and seat of government. Its
capture by the opposition has profound
significance to both MDC and ZANU PF.
Historically Bulawayo belonged to PF
ZAPU, while Harare was the political
Mecca of ZANU PF. Losing Harare to MDC
was devastating to the old ZANU PF -
they cannot get used to the idea and
reality of losing Harare. But this is
not to say there are no political
skirmishes elsewhere - they are of low
intensity when compared to Harare, but
look at what is happening to the
mayor of Chegutu, Dhlakama (Francis). ZANU
PF is on the warpath to
undemocratically and crudely unseat him.
Secondly, the other MDC mayors work with councils dominated by ZANU
PF.
Change in those areas is not as drastic as it is in Harare because in
other
areas you are a hostage mayor. In Harare the MDC has 99 percent of
the
council and council can and must transform. The mayor works with
his
political colleagues, they share the same vision and mission. You have
a
free mayor in Harare, something not found anywhere else as yet. We
were
making genuine and profound changes in council and that has unsettled
Chombo
and ZANU PF.
Thirdly, Harare is a political fiefdom for
the ruling party. The
changes we were making were seen as assaults on the
ZANU PF edifice, and
pressure was applied on Chombo to stop us.
Fourthly, ZANU PF does not believe in multi-party politics. It
believes in a
one-party state dictatorship and it has found it impossible to
live with an
opposition party at Town House. The situation at Town House put
ZANU PF under
trial in as far as their ability and capacity for political
tolerance is
concerned. Zimbabweans and other political watchers world-wide
were watching
how the ruling party was going to handle the Harare situation.
ZANU PF has
dismally failed in this test. They are finding it impossible to
live with the
popular choice of the people of Harare, and are prepared to
subvert the
mandate we were given to run the affairs of Harare.
Question: So
how are you going to survive the political pressure
building around
you?
Answer: I am an agent of change. When I took up the challenge,
I knew
that I was not going to be accorded the respect due to a Harare mayor.
I
knew that my tenure of office was not going to be a stroll in the garden
but
a struggle - a vicious struggle. I have been arrested illegally twice
for
doing my work and thrown into cells for four days. Now I am
suspended
without pay - in fact Chombo wants to have me kicked out of the
mayoral
house and to surrender the mayoral vehicle. I must persevere and
soldier on.
I cannot make a U-turn and accept dictatorship and oppression as
normal
practices. It is ZANU PF that must mend and change its ways of
governance,
not the MDC. The people of Harare have demanded democracy and
freedom and in
the fullness of time, the people will win. I have got my tools
for survival.
The machinery being used to persecute me knows they are
targeting an
innocent person.
Question: There are some who say
you are a baby of ZANU PF and could
not have risen through the ranks to
become the deputy chief engineer of the
city council without being
one?
Answer: I was an engineer. Engineers were few in the city
council.
They had no choice but to engage me. I stopped being a member of
ZANU PF in
1985 when I realised that ZANU PF was failing - we kept on going
deeper and
deeper into a crisis. But this is not to say I am ashamed of
having been a
very active ZANU PF cadre. I was very active in the youth wing
as a student
in Botswana and Sierra Leone. I played my role in the liberation
of this
country and am proud of my involvement. ZANU PF was a great
liberation
movement, but as a political party in post-independent Zimbabwe,
ZANU PF has
lacked vision, ideological clarity and moral leadership - it has
fallen from
grace. This is why when the Forum for Democratic Reform (Trust)
was launched
as a democracy advocacy pressure group in the mid 1990s, I
became its
founding member. The FDR subsequently merged with the Open Forum
in Bulawayo
and eventually the two groups formed the Forum Party, which was
led by the
late former Chief Justice Enoch Dumbutshena. There are many people
in the
MDC who are former members of the Forum Party, ZANU PF, ZUM (Zimbabwe
Unity
Movement) and the UANC. We are democrats.
FinGaz
Comment
Indecisiveness a drag on
economy
8/29/2003 9:16:46 AM (GMT +2)
THE
resilience of the Zimbabwean economy is legendary but the once
robust economy
is now caving in due to consistent and persistent battering
in the face of
gross mismanagement and natural phenomena chief of which are
recurring
droughts.
But, as has been said before, sometimes-tough economic
times do not
only expose weaknesses in economic policies but also bring forth
the
innovativeness and resourcefulness of a people or lack thereof.
Ordinary
Zimbabweans have, to their credit, by and large shown resilience in
the face
of the dip into economic melt-down.
A major drag has
however been indecisiveness on the part of
government. The country’s economy,
now entrenched in recession, continues to
burn while stakeholders are engaged
in what seems to be endless discussions
in fire prevention. A series of
crisis meetings have been held on several
occasions to find ways of reversing
the economy’s flagging fortunes.
These have so far had no
appreciable effect on the sickly economy
mainly because, although Zimbabwe is
strong on ideas it falls short on
action. We do not follow through on those
crisis meetings, which in itself
is emblematic of everything wrong with the
way we do things. We are not
strong on decision-making and seem to lack
clarity as to what needs to be
done to turn around the economy.
This indecisiveness, which stems from the fact that most decisions
in
Zimbabwe are made for political expediency, has remained a touchstone of
our
way of doing things.
Nothing underscores this fact more than
the government’s reluctance,
some six years ago, to bite the bullet and
increase the price of fuel when
the National Oil Company of Zimbabwe, though
still in the clear, was clearly
moving towards a debt trap. The lid on fuel
prices was mainly due to the
fear of a possible political backlash over the
likely wave of sensitive
price increases.
Not only that, but
more recently, the eleventh-hour appeal for food
aid to the United Nations
Development Programme this year is also a case in
point. The government took
its sweet time to approach the UN agency as if
Zimbabwe was the only country
on the African continent that required food
relief.
There is a
plethora of other pertinent issues that have since been
victims of this
indecisiveness. These include the long stalled sell-off of
government-owned
assets whose proceeds could have been used to reduce what
has become the
national ulcer — the budget deficit. Except for a few cases,
the
privatisations have been left half done as the authorities ponder
whether
they should completely dispose of the assets or effect
"corporatisation" — a
Chinese half way house between rigid state control and
private
ownership.
Meanwhile, as the government dithers, state-owned
companies continue
to pressure public finances as they depend on a
life-support system provided
by the already stretched fiscus.
There has also been indecision over the provision of critical
agricultural
inputs, which will certainly compromise the productivity of the
new farmers.
Holding on to the land without the inputs is like holding on to
cheques that
they cannot cash! There is the real danger that Zimbabwe could
once again
fail to produce enough to feed itself. And that would be
a
tragedy.
There is also the continued bickering over the long
overdue and
inevitable devaluation of the over-valued Zimbabwe dollar and
the
reluctance, especially on the part of ZANU PF, to take the plunge
into
political dialogue to find a negotiated settlement to the country’s
crisis.
The list is endless.
It is only when it finally dawns on
the government that a stitch in
time saves nine that our situation could
improve for the better. Otherwise
the uncertain outlook could be with us for
a painfully long time.
FinGaz
Rivalry threatens Free Trade Area
Dumisani
Ndlela News Editor
8/29/2003 9:17:42 AM (GMT +2)
A bitter
rivalry among Common Market for East and Southern Africa
(COMESA) members
created by Africa's first Free Trade Area (FTA) has claimed
its latest
casualty, Namibia, which is now withdrawing its membership from
the regional
bloc.
Namibia joins Tanzania, which quit Comesa in 2000 fearing
its
industries were too weak to compete under the FTA non-tariff
arrangement
launched in the same year.
A Comesa spokesman,
Mweusi Karake, said Namibia had already informed
the Comesa secretariat that
it would pull out of Comesa because it was not
benefiting from the three-year
old FTA.
"The whole spirit of free trade is being lost," said Danny
Meyer,
president of the 77-member African, Caribbean and Pacific Chamber
of
Commerce, which groups country business representative
organisations.
"Weaker countries were supposed to be pulled by the stronger
ones, but
that's not happening. It (Comesa) needs to go back to the drawing
board and
find out what stakeholders want out of this free trade
arrangement."
Lovemore Kadenge, president of the Zimbabwe Economics
Society, said
the rivalry created by the FTA posed serious dangers to the
survival of
Africa's first free trade area, maintaining that frustrations
experienced by
members who feel disadvantaged by the FTA might scupper it or
quit Comesa
altogether.
"It seems the free trade area has
created problems rather than
promoted trade among members," said Kadenge.
"Right now, the Zambians have
devised their own tax system to charge
Zimbabwean products which they say
are putting their products out of their
own market."
Namibia's imports within Comesa had grown ten times
more than its
exports into the grouping under the FTA regime.
Namibia is now concentrating its efforts on the Southern African
Customs
Union (SACU), another regional trade body whose members are
Swaziland,
Lesotho, Botswana and South Africa.
Problems for the FTA had always
been apparent. A year after its
launch, Kenya, Malawi and Zambia expressed
strong concern to the regional
trade block over the zero tariff regime,
saying their weak industries were
haemorrhaging from guarantees on the free
movement of goods and services
among FTA participants.
Zambia's
industrialists complained that cheap imports from
neighbouring Zimbabwe were
flooding their markets, threatening their
survival, while Kenya demanded
Comesa to impose quotas on duty-free sugar
imports from trading bloc
partners, saying its vital sugar industry could
collapse due to cheap imports
from Egypt, Malawi, South Africa, Zambia and
Zimbabwe.
South
Africa, the region's biggest economy, refused to join the
20-member Comesa in
a move that analysts say was calculated at protecting
its own industries
against cheap imports from neighbours under the
non-tariff FTA
arrangement.
But now the tables are turning against Zimbabwe,
currently going
through its worst economic crisis in history.
Zimbabwe's exports to Kenya, its key trading partner, plummeted by a
massive
83 percent - US$3.3 million last year, from pre-FTA levels of
US$19,5
million. Zimbabwe's imports from Kenya also dropped by 87 percent
during the
same period, from a high of US$15 million to a low of
US$2
million.
Zimbabwe's exports to Zambia have also taken a
tailspin, dipping by
80.4 percent to US$1.8 million in the first quarter of
2002.
The country banned the export of wheat, maize and a variety
of food
products after accusing its neighbours of depleting its food stocks
through
a roaring cross-border trade and taking advantage of the
FTA.
"It's affecting relationships - long standing business
relationships,"
said Meyer.
He said Zambian cement producers,
cigarette manufacturers, liquor
producers and farmers, among others, had
complained about being threatened
by products from Zimbabwe. He said that
despite glaring grievances between
industries, governments were not
committing themselves to discussions to
solve the problems.
Instead, some countries were introducing bureaucratic measures and
systems
that in fact undermined the spirit of the FTA. For example, he
said,
travellers to Zimbabwe were being forced to pay a US$15 carbon tax if
they
came driving, and this had not been communicated to counter-parts in
Comesa.
"Just this week, I met a businessmen who came by road and
was asked to
pay the carbon tax. He had to drive back to Zambia. They end up
asking: is
it worth doing business with Zimbabwe?" Meyer said.
Comesa, a 20-nation African trade bloc, launched its FTA on October
31, 2000
with nine of its members initially participating in the project,
which
dismantled trade barriers and guaranteed free movement of goods and
services
in the region.
The objective of the FTA is to create an integrated
market for trade
in goods and services and to increase the Comesa region's
competitive
advantage as a production base geared for the world
market.
An integrated and enlarged market would attract investments
much more
effectively than the much smaller national domestic markets and
this was
envisaged to stimulate growth and raise, for Comesa member
countries, the
stakes in one another's purchasing power and economic
progress.
Comesa members are Angola, Burundi, Comoros, Democratic
Republic of
Congo, Djibouti, Egypt, Ethiopia, Kenya, Madagascar, Malawi,
Mauritius,
Namibia, Rwanda, Seychelles, Sudan, Swaziland, Uganda and
Zimbabwe.
Current FTA members are Djibouti, Egypt, Kenya,
Madagascar, Malawi,
Mauritius, Sudan, Zambia and Zimbabwe. The withdrawal of
Namibia is
certainly going to inflict serious danger to the Comesa region,
whose
combined Gross Domestic Product stands at not more than US$160 billion
and
three quarters of its 400 million citizens survive below the World
Bank
poverty threshold of a US-dollar a day.
While Egypt, a
strong advocate of a continent-wide free trade zone,
joined the Comesa FTA a
year after its launch, Burundi and Rwanda have
undertaken to join the FTA on
January 1 2004. Swaziland, a strong member of
the SACU where Namibia has
declared it will begin lavishing all its
affection, will seek the concurrence
of SACU to join the Comesa FTA in April
2004.
But following
Namibia's decision, and Tanzania's earlier misgivings,
and the battles raging
among members already in the FTA, Burundi, Rwanda and
Swaziland's moves are
likely to be accompanied by hesitancy.
Uganda and Comoros are
likely to remain watchers of the trade theatre
created by the FTA before they
can make a decision.
But Comesa remains defiant: it is still
pushing ahead with plans to
create a Common External Tariff and Customs Union
by December 8 2004, and to
adopt a common currency for regional members by
2025.
FinGaz
Stop side-marketing, cotton farmers told
Zhean
Gwaze
8/29/2003 10:20:16 AM (GMT +2)
THE cotton industry,
which earned US$150 million in foreign exchange
receipts last year, could
collapse if regulations are not put in place to
safeguard major players’
interests.
Cotton growers with no access to commercial seasonal
finance were
dealt a major blow when the Cotton Company of Zimbabwe (Cottco)
and FSI
Agricom put on ice their input credit schemes that had been their
mainstay.
Cottco and FSI were not happy with the side marketing by
new players
looking for better prices.
For example, a number of
new farmers have established agencies that
handle their exports, sidelining
traditional processors who have invested
billions of dollars in input credit
support.
Major players in the industry warned that the quality of
lint would be
compromised if a regulatory framework is not put in place
within the next
two months.
This would put a damper on the good
international reputation gained by
local cotton producers over the
years.
Sources said told The Financial Gazette this week the
industry
submitted proposals to government last year to ensure players in the
sector
earn profit through greater investment.
The government is
still to respond to the proposals.
"The regulations are meant to
safeguard the long-term interests of the
industry and the government should
make a move so sanity is restored in the
industry within the next two months
in which the cotton growing season
begins," an official in the industry
said.
No immediate comment could be obtained from Trade and
International
Development Minister Samuel Mumbeng-egwi on the
issue.
Farmers’ representative organisations said the timing by
Cottco and
FSI Agricom was unfortunate because cotton was one of the few
crops that had
done well.
"Government should come in and
regulate the sector quickly because not
all farmers have been breaching the
contracts.
The farmers have to be protected because this is a war
among the
cotton companies," said Indigenous Commercial Farmers Union
president
Davison Mugabe.
Economic consultant John Robertson
said the developments in the cotton
industry are a message to the farming
community that contractual obligations
need to be adhered to.
Robertson said: "The action by the companies was obvious because
side
marketing is a serious breach of contract. It gives the new farmers a
bad
reputation."
Cotton is the country’s second largest
agricultural export after
tobacco, contributing US$150 million in gross
earnings last season.
Zimbabwe exports at least 70 percent of its
annual cotton lint
production.
Farmers were this year focusing
on taking productivity levels beyond
the 500 000 tonnes per year without
compromising the quality of lint.
Cargill told The Financial
Gazette that they would continue financing
the crop, but hoped that the
regulations would be put in place soon.
FinGaz
Late disbursement of funds threatens tobacco output
Staff
Reporter
8/29/2003 10:21:03 AM (GMT +2)
ZIMBABWE could lose 45 percent
of the tobacco crop this year due to the late
disbursement of funds meant for
the preparation of seedbeds, it emerged this
week.
An official with
the Indigenous Commercial Farmers Union (ICFU) told The
Financial Gazette
this week that the Zimbabwe Tobacco Industry and Marketing
Board (TIMB) only
started disbursing the $1 billion loan facility this month
instead of
April.
"As a result of the delay, we (farmers) have lost the crop under
irrigation,
which constitute 45 percent of the crop.
"The whole idea
to the farming game is good timing," the ICFU official said.
Tobacco is
the country’s largest foreign currency earner.
TIMB chief executive
Stanley Mutepfa could not be reached for comment as he
was said to be out of
office. Tobacco sales are expected between 80 and 85
million kg this year, a
50 percent decline from the crop sold the previous
year.
Analysts
attributed the decline in output to the drought and the government’
s chaotic
land reform, under which scores of large-scale tobacco farmers
were evicted
from their farms.
Serious shortages of inputs also led to late
planting.
This year’s crop output is projected to fall further as
small-scale farmers
bay for the devaluation of the Zimbabwe dollar from the
current Z$824 to the
greenback.
The devaluation would lead to an
increase in prices of all inputs, which
will become another major setback to
the farmers.
"What we need is a support rate that ensures that players in
the industry
are awarded excellently as they play a major role in bringing
foreign
currency to the country," said the official.
FinGaz
People disposing property losing 50% of true value :
report
Staff Reporter
8/29/2003 9:51:48 AM (GMT
+2)
MOST people disposing of their residential properties are
losing up to
50 percent of their true value because of poor advice and badly
worded
agreements of sale, a local real estate agency said.
In
its report, Seef Zimbabwe said confusion now dominates the active
property
market, worsened by the high maintenance and building costs.
"Security, condition and proximity to amenities have become
increasingly
important, but the effect on different properties in different
areas and how
it affects the price does not really need the advice of
an
expert.
"Bad advice from amateurs can and has cost
Zimbabweans millions of
dollars over the last few years," said the
report.
There are no bargains on the market at the moment as there
are no
willing sellers in the deteriorating socio-economic environment, a
situation
that has resulted in escalating property prices.
A
huge appetite for property still exists among Zimbabwe’s growing
expatriate
population, which is mainly in the United Kingdom and the United
States of
America.
The report said: "They will find that an investment in the
right
property, in the right area, will double in value in real terms
when
stability is achieved. Some buyers, however may find their
investment
deteriorating in real value terms if security or maintenance is
bad or
promised service of delivery does not materialize for
years."
Interest rates are a fraction of inflation, which means
owners of
properties and other corporeal assets will not sell unless they
have to.
The report said that shortages would increase as inflation
continues
on an upward spiral, although ironically the value of these
properties may
drop in real terms.
Owing to the increasing
neglect and the on-going economic decline, a
large proportion of the value of
the country’s national housing stock in all
areas is said to be dropping in
real terms.
The report added that the prices of some residential
properties in the
country were already higher than those in neighbouring
South Africa because
of astronomical local building costs the shortage of
secure and well
appointed and maintained homes in certain sought after
areas.
FinGaz
Strike costs NRZ $400 mln
Staff
Reporter
8/29/2003 9:57:01 AM (GMT +2)
BULAWAYO - THE
cash-strapped National Railways of Zimbabwe (NRZ) has
lost about $435 million
in the past three days as a result of disruptions
caused by the on-going
industrial action, The Financial Gazette can reveal.
Information at
hand shows that the tottering parastatal reported
recently to be in urgent
need of $7 billion and US$50 000 in foreign
currency to re-capitalise, has
been loosing $145 million per day because of
the strike that kicked-off on
Monday this week.
The 10 000-strong NRZ workers are demanding a 490
percent salary
increase, while management is understood to be only willing to
award the
employees a 75 percent hike. It also emerged this week that the
three
railways workers unions - the Zimbabwe Amalgamated Railway Union,
the
Railway Association of Engineman (RAE) and the Railway Artisan Union
(RAU) -
had been negotiating with management for the past few
weeks.
Insiders told this newspaper that the salary negotiations
had reached
an impasse, forcing management to refer the matter to the
Ministry of Public
Service, Labour and Social Welfare.
Yesterday
morning, the workers representatives held a closed-door
meeting to prepare
for an alleged showdown with July Moyo, the Minister of
Labour.
"We (workers representatives) are on our way to Harare as we have
been
summoned to meet the Minister of Labour since the employer has applied
for a
show cause order," said Fabion Chenyika, the president of the
Railways
Artisan Union.
"There has not been any head way between
us and the employer over the
salary dispute. Now the minister has to resolve
the issue. We want over 400
percent salary increment, but we are still
willing to negotiate," said
Chenyika, as he emerged from a meeting with other
railway unions'
representatives.
Thousands of commuter and
travelers were left stranded since Monday as
the NRZ workers downed tools
countrywide forcing the parastatal to cancel
passenger services.
The NRZ announced on Tuesday evening it had put in place contingent
measures
to be run by skeletal staff to transport essential commodities such
as
Ferro-chrome, coal and maize.
Misheck Matanhire, the NRZ spokesman
said yesterday demands for a
whopping 490 percent salary increase translated
to total payroll costs of
$17,1 billion per month, against projected monthly
revenue of $45 million.
"It is worthy noting that the NRZ awarded a
salary increase of 82
percent in January 2003 to all employees and also
awarded another cost of
living adjustment of 25 percent of basic pay in July
2003 as well as other
allowances such as transport," said
Matanhire.
Workers representatives were adamant yesterday that the
industrial
action would continue indefinitely if the minister fails to meet
their
demands.
SABC
Relations between Botswana and Zimbabwe hit new low
August 29,
2003, 12:56 PM
The diplomatic row between Botswana and Zimbabwe is set to
hit a new low.
This follows a move by the Botswana government to erect a four
metre high
electric fence along its north-eastern border line with Zimbabwe.
Botswana
took a decision to erect the electric fence shortly after the
outbreak of
foot and mouth disease in that area earlier this year.
The
outbreak of the disease created major problems in landlocked Botswana.
During
that period, thousands of cattle had to be put down to prevent
further spread
of the disease. The outbreak of the highly contagious deadly
viral infection
dealt a blow to Botswana's lucrative beef industry - the
country's second
foreign exchange earner after diamonds. It is for this
reason that Botswana
decided to erect an electric fence along the
north-eastern border line with
Zimbabwe that stretches for about 640km.
This move has, however, soured
relations between the two countries'
authorities - more especially
Phelekezela Mphoko, the Zimbabwean high
commissioner to Botswana, who has
branded it as provocative.
Botswana which is also faced with the massive
influx of illegal immigrants
from its northern neighbour, has defended the
move as a security measure
aimed at preventing any possible illegal movements
of animals and immigrants
within its territory. Without going into details
about the immigration
crisis facing his country, Mompati Merafhe, the
Botswana Foreign Minister,
has admitted that it was a
problem.
Diplomatic ties between the two countries again took a nose dive
earlier
this month, when it was reported in the media that Botswana was
hosting US
and British officials. The officials were allegedly plotting to
overthrow
Robert Mugabe, the Zimbabwean President, by using the Botswana
Airforce Base
as a launch pad. This was however denied by
Merafhe.
Botswana is already under pressure from its citizens to address
the massive
inflow of illegal Zimbabwean immigrants. The development is said
to have
depleted its financial resources that are committed toward
monthly
repatriation exercises.