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Mugabe blocks farm seizures in bitter succession war

Zim Online

Mon 7 August 2006

      MUTARE - President Robert Mugabe had to intervene last week to stop
war veterans from seizing land owned by ruling ZANU PF party and government
officials they accuse of wanting to block Vice-President Joice Mujuru from
taking over as president of Zimbabwe, sources told ZimOnline.

      Mugabe has indicated that he will step down at the expiry of his term
in 2008, setting off a vicious power struggle between two factions, one led
by former parliamentary speaker Emmerson Mnangagwa and another by Mujuru's
husband, the powerful former army general Solomon Mujuru.

      Each of the factions want to control ZANU PF and ensure their
preferred candidate takes over Mugabe's job. However much of the power
struggles have happened behind the scenes, away from the public eye.

      But things threatened to break into open conflict last Monday when
militant veterans of Zimbabwe's 1970s independence war converged in the
eastern Mutare city and drew up a list of senior ZANU PF and government
officials they said they would evict from their farms as punishment for not
backing Mujuru.

      "Those targeted for eviction were only saved at the last minute after
Mugabe ordered governor of Manicaland province (under which Mutare falls)
Tinaye Chigudu to stop the war veterans from invading the politicians'
farms," said a source, who is a senior member of ZANU PF.

      According to the official, who spoke on condition he was not named,
Chigudu was only able to convince the war veterans to call off the farm
invasions after a heated four-hour meeting with the former fighters' and
during which they accused the governor of wanting to protect people bent on
destabilising ZANU PF.

      "Chigudu remained steadfast that instructions from Mugabe were that
there should be no farm invasions .. eventually the war veterans' leadership
told their members who had gathered outside Chigudu's office to disperse and
await further instructions," said another source, privy to details of the
meeting between Chigudu and the ex-combatants.

      Chigudu confirmed meeting the war veterans and ordering them not to
invade farms but the governor refused to answer further questions on the
matter.

      He said: "In Manicaland I am the President's representative, mandated
with taking instructions from the President. In his speech to parliament,
the President made it clear that no farm invasions or disruptions of farming
activities would be tolerated. That remains the case and my duty is to
enforce that position, regardless of the situation."

      Zimbabwe National Liberation War Veterans Association secretary for
Manicaland Godfrey Chitakatira told ZimOnline that they had shelved plans to
invade farms but refused to discuss why the former fighters wanted to seize
farms owned by ZANU PF politicians.

      Chitakatira said: "We have suspended the operation. We held a meeting
with the governor on Monday and we left him a list of our problems we have
with some of these comrades (ZANU PF officials). There is too much
corruption and they are also being divisive in their ways."

      Among those whose farms were targeted for seizure were retired army
general and now Energy Minister Mike Nyambuya, former war veterans chairman
Robert Gumbo, businessman and ZANU PF politician Esau Mupfumi and provincial
administrator Fungai Mbetsa.

      Former ZANU PF chairman in Manicaland Mike Madiro, who was suspended
from the party by Mugabe for plotting against Mujuru, was also on the list
of people whose farms were to be seized.

      According to sources, when Nyambuya got wind that ex-combatants were
planning to seize his farm he reported the matter to Mugabe who phoned
Chigudu on the morning of the same Monday the farm seizures were to take
place and told him to stop the farm invasions.

      Nyambuya and others whose farms were targeted for seizure are believed
to belong to Mnangagwa's camp, working to block Mujuru from taking over when
and if Mugabe and first Vice-President Joseph Msika retire in 2008.

      Analysts however say Mujuru is a step ahead of Mnangagwa given she is
already part of the presidency. - ZimOnline


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Zimbabwe bank governor's maize crop burnt

Zim Online

Mon 7 August 2006

      HARARE - Unidentified armed people destroyed 250 hectares of maize at
Reserve Bank of Zimbabwe (RBZ) governor Gideon Gono's farm near Harare, in
what state media said could be an attempt by some unnamed people "in
positions of authority" to intimidate the central bank chief from pressing
ahead with monetary reforms.

      Gono in his mid-year monetary review statement last Monday announced a
raft of measures including a re-denomination of Zimbabwe's currency with
three zeroes chopped off every note.

      The governor, who also announced a 60 percent devaluation of the local
dollar, gave Zimbabweans up to 21 August to surrender old money in exchange
for the new currency with less zeroes.

      But Gono said individuals would be allowed to deposit only up to $100
million of the old money while companies could deposit five billion dollars
without questions being asked.

      Anyone bringing in more than the stipulated amounts would have to
explain the source of the extra cash and failure to do so would result in
the money being seized and deposited into an anti-money laundering account
to remain there for two years at zero percent interest.

      It is the provision allowing for the RBZ to seize money that
government insiders say has won Gono enemies among ZANU PF and government
officials many of who were known to keep billions of cash at home to finance
deals on the illegal but thriving black-market for foreign currency and
basic commodities in short supply in Zimbabwe.

      Gono's rather overzealous style in implementing the new monetary
measures could also have earned him hatred from more people even outside
ZANU PF as RBZ officials, police and government youth militia, all acting on
the governor's instructions, have seized billions of dollars from people
accusing them of money laundering.

      At least 125 people were arrested since last Thursday for allegedly
hoarding cash. More than $62 billion was seized by RBZ officials and police
over the same period.

      But most of those arrested for illegally keeping cash at home deny
hoarding money, saying the reason they kept large amounts of cash was
because of hyperinflation which meant millions of dollars were required for
even small transactions such as buying a child's school uniform.

      In his address to Parliament last month. President Mugabe said he was
satisfied with the work of Gono although there were some people who hated
the central bank governor and even wanted him dead.

      In the past Gono, who is one of Mugabe's closest lieutenants, has
clashed with senior members of the Cabinet, Finance Minister Herbert Murerwa
and Energy Minister Mike Nyambuya, over policy measures and electricity
tariffs respectively.

      Gono challenged Murerwa to fire him after they had disagreed on policy
measures. He earlier this year crossed swords with Nyambuya after convincing
Mugabe and his Cabinet to cancel an increase on power tariffs that they had
initially approved. Nyambuya wanted tariffs hiked to keep the state-owned
Zimbabwe Electricity Supply Authority afloat. - ZimOnline


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MDC faction elects former white farmer as mayoral candidate

Zim Online

Mon 7 August 2006

      MUTARE - A faction of Zimbabwe's main opposition Movement for
Democratic Change (MDC) party led by Morgan Tsvangirai on Sunday elected a
former white commercial farmer, Brian James, as its mayoral candidate for
the eastern city of Mutare.

      Morgan Komichi, who is the deputy organising secretary in the
Tsvangirai-led MDC, told ZimOnline yesterday that James had won the right to
represent the party in the mayoral election whose dates are still to be
announced by the government.

      "James polled 196 votes against Misheck Kagurabadza's 13. He will
therefore be our candidate once the elections get underway," said Komichi.

      Kagurabadza is the former mayor of Mutare who was sacked last year as
part of a purge against MDC-led mayors by President Robert Mugabe's
government.

      Speaking in Mutare after his election yesterday, James said his
election was a clear message to the ruling ZANU PF party that racism had no
place in Zimbabwe's politics.

      "My election shows that people do not care about the colour of
someone's skin as Mugabe wants us to believe. The MDC membership here has
basically sign-posted a big 'No to Racism' by electing me. I won't let them
down," he told ZimOnline yesterday.

      It was not possible last night to establish if the other faction of
the MDC led by academic Arthur Mutambara will field a candidate in the
election.

      James is among thousands of white farmers who were driven off their
land as part of the government's controversial land reforms six years ago.

      Mutare has been run by a government-appointed commission since the
sacking of Kagurabadza last year. Local Government Minister Ignatius Chombo
recently extended the commission running Mutare. - ZimOnline


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Stand for gays destroyed at Harare book fair

Zim Online

Mon 7 August 2006

      HARARE - Suspected state security agents at the weekend destroyed
literature and a stand belonging to the Gays and Lesbians of Zimbabwe at
Zimbabwe International Book Fair (ZIBF) in Harare.

      GALZ, which has battled in the past to exhibit their literature at the
fair, had been allocated a stand at this year's book fair but their
equipment and literature was destroyed at the weekend by unidentified men
believed to be state security agents.

      GALZ could not be reached for comment on the matter.

      The ZIBF executive director, Greenfield Chilongo, confirmed to
ZimOnline at the weekend that equipment belonging to the controversial
organisation had been damaged.

      "As far as we are concerned, GALZ were not denied the chance to
exhibit because they were allocated a stand. But what we are aware is that
there were some people who interfered with their material," she said.

      The Zimbabwe government at one point banned GALZ from exhibiting at
the book fair but the controversial group won a High Court banning President
Robert Mugabe's government from interfering with their activities.

      Mugabe has in the past condemned gays and lesbians saying they are
"worse than dogs and pigs." - ZimOnline


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Two Harare residents win US$2 000 in peace marathon

Zim Online

Mon 7 August 2006

      MUTARE - Two Harare residents clinched the top honours in the 42km,
Africa University International Peace Marathon held here at the weekend,
with each collecting US$2 000 in prize money.

      Tapiwa Chingadayi, 30, came first in 2 hours, 23 minutes and 14
seconds in the men's main category, beating Felix Mushurwa of Eiffel Flats,
Kadoma, and Ogeto Kerdirdden Boba of Negashe, Ethiopia, who came second and
third respectively.

      The women's top prize went to Margaret Mahohoma, 27, who dismissed
challenges from second place winner Chiyedza Chokore and Tapawo Bhiri, who
came in third.

      Chingadayi of the Zimbabwe Prison Services and Mahohoma, a school
leaver who clocked 2 hours, 52 minutes and 12 seconds, were awarded US$2 000
each for their efforts.

      Second place winners in the men's and women's categories each received
Z$120 000 (revalued) and third place finishers were given Z$60 000 each.

      The marathon, now in its fifth year, attracted more than 500
participants from Africa, Japan and the United States. Millions of dollars
were awarded to winners in various categories - which included the "wheel
chair", the "armed forces", the "pre-schoolers" and "senior citizens"
categories.

      Sheila Siwela, Zambia's ambassador to Zimbabwe, donated a floating
trophy for the marathon on behalf of all the African ambassadors based in
Harare.

      "As ambassadors, we support Africa University and its Peace Marathon
because we believe the sporting event is a unifying occasion that cuts
across boundaries in politics, culture, age and religion," said Siwela.

      The ambassador of Mozambique, Vincente M Feloso and John M Gbenala of
Ghana were also present.

      Tomoko Ueta, 37, a marketing executive in Tokyo, Japan, flew into
Zimbabwe for the marathon.  She was not disappointed: she came in tenth
position among women in the main 42-km race.

      "I didn't really expect to win," she said as she collected her cash
prize, Z$6 000. "I found the terrain and the people here so good, it's
unbelievable. I intend to come back next year and bring my friends and
collegues at work with me."

      Rukudzo Murapa, the university vice-chancellor, said he was confident
the AU Peace Marathon would evolve into a global household name "along such
lines as the New York Marathon, the French Marathon in Paris and the London
Marathon in England". He added: "We can do it with your support". -
ZimOnline


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Zimbabwe book fair tells sorry political tale

Reuters

Sun Aug 6, 2006 8:48 AM BST

By Cris Chinaka

HARARE (Reuters) - Zimbabwe's international book fair, once Africa's
proudest annual literary celebration, now has only one tale to tell -- the
decline of a country brought to its knees by political and economic woes.

The cultural life of the southern African country -- books, music, film and
theatre -- is being strangled by a severe economic crisis many critics blame
on President Robert Mugabe's government.

Up until 2002, the Zimbabwe International Book Fair was one of the
continent's biggest shows, attracting African, European, American and Asian
publishers to exhibit their work, and Africa's top writers to attend
conferences.

But the fair held in Zimbabwe's capital this week remains "international" in
name only, shunned by foreign publishers and writers who see little mileage
from travelling to a country the United States has branded an "outpost of
tyranny".

"We have lost out to politics," mourned one man minding an exhibition of
give-away pamphlets on rural development.

"There are very few people coming here because it's no longer the same," he
said. "But I guess we have got to keep the idea alive so that when things
get better we will not start from scratch."

During Zimbabwe's sunnier days, when Mugabe was still hailed as the man who
ended white rule in the former Rhodesia in 1980, the Harare book fair drew
Africa's literary giants.

Nigeria's legendary Chinua Achebe, who became famous with his first novel
"Things Fall Apart," and Kenyans Ngugi wa Thiong'o and Ali Mazrui were among
those who graced the shows.

"It was Afro-centric ... people came for brainstorming sessions on African
literature and lots of ideas emerged from these meetings. It was extremely
fun and very laid-back," said Veronique Tadjo, an author from Ivory Coast.

But now the big writers and publishers are staying away and the fair
resembles a small village show, its largely empty book stalls standing under
thatch shades in a vacant, windswept park.

Although Zimbabwe has a 90 percent literacy rate -- one of the highest in
Africa -- its economic woes have left it almost unable to sustain a
publishing industry as consumers struggle with inflation now well over 1,000
percent.

Book lovers are not alone in bemoaning the slow death of Zimbabwe's cultural
life.

The country -- which drew famous musicians in the 1980s and 1990s such as
Bob Marley and The Wailers, UB40, Peter Gabriel, Paul Simon, Osibisa and Sam
Mangwana -- cannot afford to pay top profile foreign artists.

Even smaller pleasures, such as cinema outings and DVD rentals, are feeling
the pinch.

Back at the book fair, organisers are hoping they will be able to turn the
page on the event's current troubles. But they acknowledge that, like
Zimbabwe, the fair will have a long way to go to reclaim its former glory.

"We working on a programme to impress on the authorities that our industry
is as important as other critical sectors," said acting book fair director
Greenfield Chilongo.

"We are struggling but we are not dead," he said.


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Zimbabwe freezes price hikes

Sunday Times, SA

Sunday August 06, 2006 19:08 - (SA)

HARARE - Zimbabwe has ordered a new freeze on prices of goods following a
spate of increases on the heels of last week's currency reforms to combat
the effects of the country's nearly 1,200% inflation, a state-run paper
said.

"No trader, manufacturer, wholesaler, dealer or retailer shall as a result
of the conversion of the price of a commodity from the old currency to the
new currency, increase the price of that commodity by any amount," the
Sunday Mail quoted Trade Minister Obert Mpofu as saying.

Many traders last week had upped prices after the central bank knocked off
three zeroes from the local currency and introduced a new series of bank
notes.

Commuter fares on some routes in Harare doubled from 100,000

Zimbabwe dollars (40 US cents) to 200,000 a day after Reserve Bank chief
Gideon Gono announced the change in currency and a 21-day ultimatum to hand
in old bank notes.

Gono had said the reforms were aimed at snuffing out a burgeoning parallel
currency market and help shoppers who had to carry bags and rucksacks of
cash even to buy groceries.

Mpofu ordered businesses to reverse "with immediate effect, any price of any
commodity that was increased in excess of that obtained by converting from
the old to the new currency." He said traders who defied the order would be
prosecuted.

Zimbabwe four years ago introduced price controls to fight a flourishing
black market for staples such as cornmeal, cooking oil and bread, and had
instituted a fine of one million Zimbabwean dollars for violators.

Zimbabwe's economy has been on a downturn in the last five years
characterised by runaway inflation and perennial shortages of basic
commodities.

The situation has been blamed partly on controversial land reforms that have
hit food production after white-owned farms were seized for redistribution
to landless blacks, often with no farming expertise.

The country's isolation from its traditional trading partners in Europe
following the 2002 elections, which returned President Robert Mugabe to
power and which western observers say were rigged, did not help.

Sapa-AFP


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Daggers out for Gono

zimbabwejournalists.com

      By a Correspondent

      HARARE - SOON after telling Zimbabwe's former liberation fighters
where to get off and to stop intimidating him from doing his job, Reserve
Bank Governor, Gideon Gono's two properties were ransacked by unknown gangs
resulting in raging fires destroying 250 hectares of seedmaize worth Zd$50
billion, now $50 million after last week's currency conversion, at his
Donnington farm in Norton.

      Gono on Thursday told former liberation fighters, most of whom grace
senior offices within the government and the Zanu PF party to grow up and
leave him to try and find solutions to revive Zimbabwe's ailing economy.

      Someone was obviously not happy with the statement and late that
Thursday an armed gang of smartly dressed men, according to the
state-controlled Sunday Mail, in an unregistered 4 x 4 double cab vehicle,
caused commotion at Gono's flower project about 20 km outside Harare.

      The Sunday Mail reports the gang asked for Gono's residential address
and fled after being confronted by some security guards manning the
premises.

      A source close to Gono told zimbabwejournalists.com four armed gangs
had actually gone to the main house at his flower project just outside
Harare looking for the Governor but he was not there.

      It is believed the gangs were acting at the behest of some senior Zanu
PF officials who want Gono eliminated. They caused a commotion and left
after the security guards refused to give them Gono's residential home
address.

      "It was around 1 am that the gangs arrived and caused mayhem," said
the source. "They demanded to see Gono but he was not there. They demanded
his address and only left after being confronted by the security guards at
the flower project. Some of the politicians have been hit hard by the new
currency policy and they want him to go, which is sad really because they
are looking after their interests only and not the country."

      Most senior government officials and other rich people in the private
sector have been oiling the wheels of the black market and had billions of
dollars in their houses which has now been rendered useless by Gono's new
policy pronouncement last week. They wanted more time to dispose of the
money and they were irked by Gono's refusal to backtrack.

      After disturbances at Gono's flower project, huge fires on Friday
consumed his maize crop that could have produced 1 300 tons maize seed worth
Zd$50 billion at his Norton farm. The fire, whose origin is still being
investigated, also extensively damaged neighbouring farms.

      Police confirmed both incidents. They said investigations were already
under way yesterday.  Gono also confirmed the incidents.

      The two incidents followed Gono's speech in Bulawayo Thursday where
hinted he was aware some senior Zanu PF and government officials were going
out of their way to frustrate his efforts to make sure he failed to achieve
his goals at the central bank.

      "Your history does not matter, your history does not make you a
bloodsucker," the Reserve Bank Governor said in apparent reference to the
powerful block of former liberation fighters that control most of the
government departments.

      Some senior government officials have reportedly been calling on Gono
to reverse some of the tough measures he introduced in last week's mid-term
monetary policy statement.

      The powerful block of politicians has been trying to intimidate him
into abandoning his turnaround programme under "Project Sunrise" that was
announced during the monetary policy review statement last Monday.

      "Discipline is the starting point for any turnaround so we are
determined to enforce it. Don't intimidate us, forget it. There are some
people who think they are above the law and are producing liberation war
credentials to intimidate us," said Gono in his Bulawayo address Thursday.

      "Let me just tell you that there is only one monetary authority in
this country and some of us take this as a calling, so you can bring all
your guns and spears but we will not be deterred."

      He continued: "Your history does not matter, your history does not
make you a bloodsucker. We have common rules for everybody and not for the
rich or the poor, the tall or the short," he said.

      His boss, Robert Mugabe recently warned senior party and government
officials off Gono's back saying without the work he is doing, Zimbabwe
would be in a worse situation. He said he knew that some of the crooked
officials even wished the Central bank chief dead.


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Grow up, Gono tells Zimbabwe's former freedom fighters

zimbabwejournalists.com

      By a Correspondent

      BULAWAYO - BOUYED by recent statements by President Mugabe asking the
vultures within Zanu PF's top echelons to leave him alone, Gideon Gono has
told the powerful former freedom fighters of the 1970s liberation struggle
to "grow up" and leave him to do his job of trying to revive the country's
ailing economy.

      Speaking in Bulawayo Thursday, Gono hinted he was aware some senior
Zanu PF and government officials were going out of their way to frustrate
his efforts to make sure he failed to achieve his goals at the central bank.

      "Your history does not matter, your history does not make you a
bloodsucker," the Reserve Bank Governor said in apparent reference to the
powerful block of former liberation fighters that has held the nation at
ransom since the late Chenjerai Hunzvi led them to arm-twist Mugabe into
printing huge amounts of money to pay them gratuities and monthly pensions.

      The war veterans and their leaders in senior government positions
became particularly powerful after Mugabe used them to lead the
state-sponsored land invasions that began in 2000 after the failed
constitutional referendum.

      Some senior government officials have been calling on the central bank's
boss to reserve some of the tough measures he introduced in last week's
mid-term monetary policy statement. Under the new measures, a new currency
conversion system is said to have caused mayhem not only with the ordinary
people but with many within senior positions in the government who were
caught unawares and had to quickly dispose of the huge amounts of money they
had been holding in their houses either for speculative purposes or for use
on the parallel market.

      "Discipline is the starting point for any turnaround so we are
determined to enforce it. Don't intimidate us, forget it. There are some
people who think they are above the law and are producing liberation war
credentials to intimidate us," said Gono.

      "Let me just tell you that there is only one monetary authority in
this country and some of us take this as a calling, so you can bring all
your guns and spears but we will not be deterred."

      He continued: "Your history does not matter, your history does not
make you a bloodsucker. We have common rules for everybody and not for the
rich or the poor, the tall or the short," he said.

      Gono became the country's first central bank chief to have security
guards from the State after assuming his new role as RBZ Governor as threats
on his life mounted. Mugabe hinted two weeks ago that he knew there were
many crooked senior government officials who wished Gono dead.

      Said Gono on Thursday: "Some of us here are benefiting from the
difficulties we are going through and are now forging weapons of mass
destruction in bars and at various meeting places. Hanzi tikamurega anyanya,
azvimba musoro. But if I do nothing voti atadza basa ngaabve." Literally,
Gono was saying the senior Zanu PF officials were saying he has become big
headed but would be the first ones to cry out for his head if he failed in
his duties.

      "But let me tell you that we will not leave any stone unturned. As we
speak, there are Zimbabweans in positions of authority who are saying they
will make sure that our policies will never work because their deals will be
frustrated," he said.

      "Let's take economic destinations of our country to our hearts. Let's
be more upright and together we can do it. It is a battle that has only one
outcome -- to win. Failure is not an option."

      His parting shot: "My appeal to my brothers and sisters in politics is
please grow up. Let's avoid tearing Zimbabwe apart and simply make sure that
we do things in the national interest."


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Zimbabwe's 'cosmetic' cash reforms rapped

Yahoo News

by Fanuel Jongwe 1 hour, 28 minutes ago

HARARE (AFP) - Zimbabweans last week flooded banks to hand in old notes
after the central bank slashed three zeroes from the local currency, but
analysts said the new money would not provide relief from record inflation.

Zimbabwe's Reserve Bank slashed three zeroes from its currency last Monday
to help consumers battling with bundles of money on shopping trips which can
cost billions and trillions of local dollars.
The change, which ushered in a new currency, is also aimed at compelling
individuals and companies to bring in billions of dollars stashed away in
safes and combatting a burgeoning black market in currency, central bank
chief Gideon Gono said.

Since Monday state television has been screening an advertisement in which
an ecstatic housewife hails the currency change saying a loaf of bread which
cost 200,000 Zimbabwe dollars "now costs only 200 dollars."

Independent economist John Robertson told AFP: "The currency change is a
purely cosmetic exercise which won't overcome the problems facing the
country.

"It will only work as far as reducing the volumes of bank notes people will
carry but it does not provide solutions to the main problems of inflation,
lack of investment and high unemployment."

Best Doroh, an economist with a leading bank, said the currency change "does
not entail an immediate reduction in the prices of goods and services.

"Availability of basic commodities will also not necessarily improve.
Inflationary pressures will most likely remain alive in the economy."

Zimbabwe is in the throes of an economic crisis characterised by
world-record inflation hovering over 1,000 percent, high unemployment and
chronic shortages of foreign currency and basic goods like fuel and cooking
oil.

At least 80 percent of the population lives below the poverty threshold
often skipping meals and walking or cycling long distances to work as they
battle to stretch income to the next pay-day.

Economist Eric Bloch lauded fiscal and currency reforms introduced by Gono,
however, saying they would reap rewards in the long run.

"The benefits will not come overnight," Bloch said. "But the government must
refrain from printing money and financing its projects. The governor also
did well to remove subsidies which have contributed greatly to inflation."

Zimbabwe started printing high denomination bearer cheques, a bank note
equivalent, following cash shortages which saw banks running out of cash and
customers waiting long hours for cash deliveries.

As hyper-inflation struck, millions became "millionaires" overnight carrying
wads of notes to buy groceries.

The central bank gave a 21-day ultimatum to hand in the old bearer cheques
and imposed thresholds on amounts that can be deposited in banks in an
apparent crackdown on hoarders.

Those found with cash exceeding the limit will have to reveal the source or
forfeit the money and face prosecution for money laundering.

Shopowners have also been barred from accepting cash payments of more than
100 million Zimbabwe dollars (400 US dollars) for goods and services.

Critics say the currency reforms were a psychological ploy to hoodwink
ordinary Zimbabweans into believing prices had gone down.

"The government wants to create the impression that goods are cheaper which
is not the case," said a taxi driver in central Harare.

A Harare-based economic thinktank, KM Financial Solutions, said unless
President Robert Mugabe's government changed its economic policies, the
country would keep on playing with the currency.

"One also hopes that the government will be able to fuel the functioning of
the economy since most of the fuel was being financed by black market
dealers," another analysts said.

The government blames the country's economic woes on sanctions imposed by
western countries four years ago while its critics say the economic downturn
is a result of corruption and mismanagement.


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Zimbabwe's future looks bright, says businessman

Business Report

August 6, 2006

By Stella Mapenzauswa

Bulawayo - Zimbabwe's struggling industrial sector looked set to recover
after the central bank eased exchange controls to let exporters retain the
bulk of their earnings in bank accounts, said Callisto Jokonya, the
president of the Confederation of Zimbabwe Industries.

"Give it another 12 months and we will be back on our feet. I am positive
about that," said Jokonya. In a rare note of private sector optimism, he
said the future looked brighter.

Earlier this week the governor of the Reserve Bank of Zimbabwe, Gideon Gono,
said exporters could now keep 70 percent of their receipts in corporate
foreign currency accounts while selling the remainder to the central bank at
the official rate. Gono also devalued the Zimbabwean dollar by 60 percent to
the US dollar, offering further relief to industries.

A shortage of foreign exchange over the past seven years forced firms to
source currency for crucial imported raw materials at exorbitant prices on a
thriving black market.

"The biggest ill we had in the economy was the imbalance in the price of our
dollar versus foreign currency . and I think that has now been addressed,"
said Jokonya.

Zimbabwe's foreign currency crunch was one of the most visible signs of a
crisis widely blamed on the policies of President Robert Mugabe's
government. It has been worsened by the withdrawal of key foreign aid over
policy differences.

But business leaders said companies remained vulnerable to Zimbabwe's
inflation rate, the world's highest at 1 193 percent, along with fuel
shortages and frequent electricity and water cuts.

Unemployment soared to more than 70 percent. The economy has shrunk by more
than a third in the past eight years.

Mugabe denies responsibility for the country's economic woes, and in turn
accuses his foreign and local opponents of sabotaging Zimbabwe's wealth. -
Reuters


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Zimbabwe Vigil Diary - 5th August 2006



Much anxious discussion at the Vigil following the court ruling overturning
the blanket ban on sending home Zimbabwean failed asylum seekers.  Perhaps
unrealistic hopes had been raised.  A senior member of the Vigil, Ephraim
Tapa, cautioned people to be careful to whom they turned for help. "There
are wolves in sheep's clothing," he warned, "they will take your money and
give you bad advice". He said new groups were always popping up, aspiring to
represent all Zimbabweans, but Zimbabweans should ask what they are actually
doing, apart from making money.  Ephraim said the Vigil would help all
genuine asylum seekers, working through its coalition partners, such as the
Zimbabwe Association. He pointed out that the Vigil had been on the streets
for 4 years with a message that things must change in Zimbabwe.  Asylum
seekers who could not show that they were genuinely politically involved
would have difficulty getting asylum in Britain.   Speaking about the way
forward on the asylum issue, he said the judicial process could only go so
far and we must explore a political route.  An appeal had already been made
to opposition leaders in Zimbabwe to intervene at the highest level.  In the
meantime, asylum seekers should approach their local MPs. Vigil supporters
were keen that a demonstration be held with a petition on the asylum issue
to the Prime Minister.

Other Vigil supporters said that we should not be sidetracked by the asylum
issue: our focus should be what is happening at home where people are
dropping like flies from HIV/AIDS (see:
http://www.swradioafrica.com/news040806/bulilima040806.htm) or being robbed
at checkpoints run by Robert (the Hood) Mugabe - stealing from the poor to
pay the rich!  (See: http://africantears.netfirms.com/august2006.shtml.)

Over our years here, we have developed ties with our locals - some of them
homeless.  Wiz gave two of her old Zimbabwe t-shirts to one of them, whose
mother had been born in Rhodesia.  He reported how he and his other homeless
friends would sit on the steps of the Embassy at night and last Saturday
formed a "welcoming committee" for smartly dressed people arriving at a
function at the Embassy.  "I feel so strongly about it", he said.  It was
chastening to realise that one of best dancers at the Vigil, Jarnell, was
scarcely older than the Vigil.  He was also such a stalwart packing up the
Vigil when we finally dispersed long after the scheduled close.

For this week's Vigil pictures:
http://uk.msnusers.com/ZimbabweVigil/shoebox.msnw.

FOR THE RECORD: 70 signed the register.

FOR YOUR DIARY:
1.        Monday 7th August, 7.30 pm, Zimbabwe Forum will be continuing its
work on a multi-signatory letter targeting South Africa to coincide with the
next session of the UN Human Rights Council on 18th September.  NB CHANGE OF
VENUE as our regular venue is booked. We will be meeting at the Rose and
Springbok, 14 Upper St Martins Lane, WC2H 9DL. Nearest tubes: Leicester
Square and Covent Garden (maplink: http://makeashorterlink.com/?N2D231EA6).
We should be back in our regular venue next week.
2.        Wednesday, 9th August, 8pm.  Mrs Debbie Jeans and Dr Ingrid
Landman, who live in Harare will share their struggles and hopes.  Venue:
Rose and Springbok Bar, 14 Upper St Martins Lane, London WC2H 9DL (a new
Southern African pub who came to the Vigil today to invite our support).
The speakers will also be at Zulu Bar, 4 Fulham High Street, London SW6 3LQ
at 8 pm on Thursday, 10th August.

Vigil co-ordinator

The Vigil, outside the Zimbabwe Embassy, 429 Strand, London, takes place
every Saturday from 14.00 to 18.00 to protest against gross violations of
human rights by the current regime in Zimbabwe. The Vigil which started in
October 2002 will continue until internationally-monitored, free and fair
elections are held in Zimbabwe. http://www.zimvigil.co.uk


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Zimbabweans in the UK call for political action against tribunal asylum ruling

zimbabwejournalists.com

      By a Correspondent

      LONDON - Organisations representing Zimbabweans in the UK are making
strenuous efforts to appeal against last week's ruling allowing the British
government to forcibly remove failed asylum seekers back to Zimbabwe.

      Ephraim Tapa, the opposition Movement for Democratic Change's London
branch chair, yesterday said efforts were currently underway to appeal
against the ruling but there was an urgent need for Zimbabweans to unite and
work hard to protect genuine asylum seekers and human rights activists
already on the list for deportation after their claims were thrown out. He
says there is an urgent need for a political solution to help save the
failed asylum seekers from eminent deportation.

      Tapa spoke as news spread of failed asylum seekers being put in
detention in preparation to be flown back home as they went to report at
police stations around the UK. By the end of the day yesterday at least four
new cases of detention had been reported. There were 16 failed Zimbabwean
asylum seekers in detention last week when an immigration tribunal ruled it
was safe to deport people back to Zimbabwe.

      Since then failed asylum seekers who report monthly at police stations
near them have been arrested and put in detention and are now awaiting
deportation. One activist who was detained yesterday was told she would be
flown home on the 25th of August.

      The case can only be appealed at the House of Lords and if it fails,
lawyers representing the failed asylum seekers can take it up with the
European Court. Many doubt the case can be won at the EU court. Most EU
countries have immigration laws that are much stricter than the UK ones.

      "What else can we do as Zimbabweans in the UK to protect genuine party
members and human rights activists? I believe this issue is very political
and calls for a political approach," said Tapa yesterday.

      He said some of the things that the Zimbabwean organisations here in
the UK are working on include requesting an urgent meeting with the
immigration minister where an appeal can be made on behalf of member
activists and others, approach MPs in constituencies with a Zimbabwean
communities to conscientise them on the plight of the failed asylum seekers
and related issues.

      He said a big demonstration in London and a petition to No 10. Downing
Street were being planned. A direct appeal to the MDC leadership back home
was also being made for them to intervene.

      "This is a serious issue and we need to work on it now rather than
later," said Tapa. "We believe that this was a hasty decision that is going
to put the lives of activists on the line. The implication of this ruling is
that the home office can start the deportations immediately after the 10-day
grace period for appeal. The Immigration Minister is so far reported to have
indicated that deportations will start within a month."

      He continued: "My thoughts are with those 16 or so of our countrymen
currently being held in detention subject to deportation. Then there are
those due to report today, tomorrow, next week or month. I can imagine the
distress, the anxieties, and the psychic fragility arising from the
unpredictability of the next hour, day, week or month."

      "For example, John was due to report this morning and it took a lot of
persuasion from friends for him to go. On arrival at the reporting centre,
he was told to wait and usually the wait lasts for 5mins. He went back after
five minutes and still was told to wait this time after waiting for 15
minutes he slipped away. Can you imagine what was going through his mind
during the unusually long wait? And what now for the future?"

      Tapa said he shuddered to think of those who still are to make their
asylum claims or those with cases still to be decided.

      "And what of those who have been politically active in the UK, who
have exposed themselves at demonstrations, vigils, meetings and so on. What
is the likely reception that await such activists should they be deported
back to Zimbabwe and just imagine how nasty the situation can be during
election campaigns! What of loved ones back home, in light of likely biased
reporting from state media, surely such news must be sickening as it is
worrisome."

      Adds Tapa: "The effect of deporting people to Zimbabwe is tantamount
to decreeing the country safe. Imagine what political capital Mugabe stands
to make out of this. He has now been given the licence to boast of things
not there: that there are no human rights abuses; there is peace, democracy
and so on.  What a shame! You all know what awaits those deportees home."

      Patson Muzuwa of the Zimbabwe Association said all Zimbabweans in the
UK must now be wary and stay away from trouble as a slight mistake like
driving without a licence, insurance or drunken driving may just pave the
way for their deportation.

      "People need to be very careful now, whether or not your papers are in
order. There is a lot at stake here," he said.

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