JOHANNESBURG: Zimbabwe's new campaign to quell its
10,000-percent hyperinflation by physically forcing merchants to lower prices
was said Tuesday by some experts and merchants to be edging the nation close to
chaos. As the police and a pro-government youth militia swept into shops and
factories, threatening arrest and worse unless prices were rolled back, staple
foods vanished from store shelves and some merchants reported huge losses. News
reports said that some shopkeepers who refused to lower prices were beaten by
the youth militia, known as the "Green Bombers" after the color of their
fatigues. Economists said that the price rollbacks were unsustainable and that shops
and manufacturers would soon shut down and lay off their workers rather than
produce goods at a loss. "You can't buy eggs or bread or things of that sort," John Robertson, an
economic consultant in Harare, the capital, said in a telephone interview.
"Suppliers can't supply them at a price that allows retailers to make a
profit." "It's pretty chaotic," he said. "But I think the impact will be worse if it
stays in place." Robertson and others say that the true rate now is probably about 10,000
percent, but official statistics apparently are no longer being released. He and others said they feared that the economic collapse could quickly lead
to social unrest if Zimbabwe's already shrunken work force was hit by huge
layoffs and foods like cornmeal, cooking oil and sugar became unavailable. President Robert Mugabe has frequently threatened to impose price controls
over the eight-year course of Zimbabwe's economic decline, but the controls
generally were short-lived and loosely enforced. In contrast, the latest crackdown appeared to be gathering momentum, as
enforcers moved to halt price increases by wholesalers and manufacturers. The Ministry of Industry and International Trade ordered companies one week
ago to roll back their prices to the levels of June 18, a reduction of roughly
50 percent. Many initially ignored the command, but after Mugabe delivered a caustic
nationally broadcast speech last week, pledging to seize the assets of
industries and businesses that evaded controls, the government has more strictly
enforced the order. In Mutare, an eastern Zimbabwe city on the Mozambique border, store shelves
emptied last week as shoppers scooped up low-priced goods, said Sampson Mugari,
a regional officer of the government-funded Consumer Council of Zimbabwe. This
week, he said, some staples like beef, chicken and cooking oil have been sold at
reduced prices at some local supermarkets. "They tell shoppers to queue to buy whatever they have," he said. Cartons of a popular orange drink, priced at 400,000 Zimbabwe dollars a week
ago, were sold for 120,000 dollars, or about 45 cents at the currency's
black-market exchange rate. Gasoline was reported to be vanishing from filling stations as the going
price, about 180,000 dollars per liter, was slashed by the government to
something closer to the officially approved price, 450 dollars per liter.
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Reuters
Wed 4 Jul
2007, 9:18 GMT
By Nelson Banya
HARARE, July 4 (Reuters) - It pays
to get up early in a country where even
the most basic goods are
disappearing from shop shelves.
Long queues of shoppers now form early in
the morning at many Harare
supermarkets and shops, hoping to grab essentials
such as sugar and oil amid
a price crisis that has sharpened already
desperate consumer shortages.
"I know once all this is over, there will
be no sugar, cooking oil and soap
in the shops. I have no option but to
stock up. I might even resell some if
I get some extra stuff, it's a matter
of survival," said Kennedy Sithole, a
security guard at a major supermarket
chain.
Zimbabwe's latest shopping nightmare comes after President Robert
Mugabe's
government last week ordered a 50 percent cut in prices to fight
galloping
inflation, a move critics say is bound to worsen the country's
economic
problems.
On Wednesday, Zimbabwe state media reported
manufacturers, state firms and
some retailers had agreed to cut prices in
compliance with the government
order, but privately many grumble the drive
is unsustainable.
The official move to exert price controls came after a
wild week that saw
the price of many basic goods jump by more than 300
percent -- a sign
inflation, already officially close to 4,500 percent per
year -- is spinning
ever more wildly out of control.
The government
has accused private companies of raising prices as part of a
plot to oust
Mugabe, who has been pilloried in the West for his
controversial
policies.
Mugabe, 83 and in power since independence in 1980, denies
mismanaging the
economy and accuses Western powers, mainly Britain and the
United States, of
sabotage over his policy to seize white-owned farms to
resettle landless
blacks.
Government price monitors have already
arrested nearly 200 business
people --including a ruling party senator --
for defying the price freeze,
which some economists say is only helping to
entrench the black market that
many Zimbabweans already rely on for basic
goods.
PRICE PANIC
Although many supermarkets have complied
with the directive, they have run
out of stock after panicking consumers --
fearing impending shortages --
emptied the shelves.
Many
manufacturers, meanwhile, have stopped supplying products at the
recommended
prices fearing massive losses as other prices continue to rise
unabated.
The state controlled Herald newspaper on Wednesday reported
the
Confederation of Zimbabwe Industries (CZI), the country's biggest
industrial
body, had resolved to enforce the price cut.
"We are
complying with the directive. We will do what we have been ordered
to do,"
the Herald quoted CZI head Callisto Jokonya as saying.
The government has
threatened to seize and nationalise businesses, including
foreign mines, it
accuses of backing what it calls a British-sponsored
campaign to overthrow
Mugabe, one of the longest-serving African leaders.
Black market traders
can still supply basic consumer goods, but are
themselves under pressure
from police officers who have descended on their
vending sites, confiscating
goods.
Under an operation dubbed "Dzikamai" (Calm Down) the police have
also
launched a crackdown on black market foreign currency traders the
government
blames for the local currency's freefall.
Few exhausted
shoppers, some of whom got up at 5 a.m. to queue, saw any end
soon to the
price crunch squeezing a country already struggling with a
jobless rate
above 80 percent and persistent fuel, foreign currency and food
shortages.
"I have no option but to buy whatever I can while it's
still available,"
said Ernest Tembo, a shopper from the Dzivarasekwa
township, west of Harare.
| Wednesday, 4 July 2007, 11:38 GMT 12:38
UK |
Around her desperate shoppers at the Harare supermarket, with trolleys piled high, were lunging at shelves, fighting, shouting to get to products that had suddenly been cut by 50%. "The staff had all evacuated apart from the till operators. At the back, even the storeroom doors were wide open and the place had been ransacked - there was nothing left, nothing on pallets," a bystander said. This chaotic scene has been repeated across the capital in the last week following an order by the authorities that the prices of basic goods be halved.
With inflation at officially more than 3,700% (some economists put it as high as 9,000%), supermarkets are unwilling to comply, so a price-control unit has been trying to enforce it with instant inspections. On Sunday, the unit arrived at 0800 at a Bon Marche store in Harare, and gave the staff a list of goods whose prices had to be cut by 50%, including most Nestle products. "I swear at 0830 (0730 GMT) there were droves of people running, not walking, running to the supermarket through the mall," an eyewitness, who asked to remain anonymous, told the BBC News website. "It was mayhem in there. By 1030 the riot police had to come and sort it out because the tills hadn't had the chance to sort out the pricing." Hoarding She described how people with packed trolleys were accusing each other of hoarding.
"I'm going to report you. You should share," one person shouted. "I will share with you, if you give me half your chicken," the other retorted. A 25 litre drum of cooking oil was reportedly cut by the officials from 15m Zimbabwe dollars to Z$3m. "There weren't enough trolleys so people were going to the plastic-ware section and got buckets to carry the stuff in," the eyewitness explained. When the police arrived, they ordered everyone out of the shop, and then allowed 20 people in at a time. "But at that stage time was ticking and the doors closed at 2pm, so there was a commotion like you wouldn't believe outside - swearing and shouting," she said. The next morning, scared shop assistants and managers wore plain clothes to work and began the massive clear up - returning the items piled in trolleys that were abandoned when the police arrived. However, the prices were back to normal - no bargains were to be found. Arrests News of the price cuts have led some people to rush into town, only to discover that the supermarkets they heard about are no longer discounting.
According to state media, at least 20 businessmen have been arrested in the ongoing crackdown. Among them was the manager of a TM supermarket branch in Harare, detained on Sunday morning when he asked price-control officials, who had arrived at the shop, to give him an hour to re-programme the tills. He was immediately handcuffed and taken into police custody. An accountant in the capital told the BBC News website that sometimes inspectors force shopkeepers to cut the price of just one product. "You'll be standing in the shop, when suddenly the price for something will go down - there'll be a mad dash, a free-for-all, and it'll all be gone within seconds," she said. Smaller shops are suffering the most in the crackdown. "A lot of the butchers are closing down because they've been told they've got to sell below cost," she says. Meanwhile, buyers are reluctant to restock in case they are forced to slash prices again and this had led to some shortages.
"There're shortages of bread because now. They don't make bread because it's a controlled price. The bakeries make buns or something with a few currants in or change the shape of it - then it'll be classed as fancy bread - and they can charge what they like," the accountant said. A Harare resident said she had been looking for eggs and milk since Thursday and another told the BBC there were rumours that goods were being moved from warehouses to residential houses to hide them from inspectors. 'Half-price war' Petrol queues have formed again as garages are confused about what price to sell at. A couple of fuel pumps opened on Monday night selling at Z$140,000 (just over $1 on the black market; $560 at the official rate), down from Z$200,000.
One family contacted by the BBC, who was cooking supper outside over a fire because of the now daily electricity cuts, said the fuel prices had not been reflected in lower transport fares. The "half-price war" is not limited to basic products. Mobile phone companies have also been threatened, and Econet top-up cards were nowhere to be found in Harare on Monday. Earlier this year, President Robert Mugabe blamed "unbridled greed" for the country's economic woes. "Some people are profiteering," agreed the accountant, "but there must be a more logical way of tackling it. Asking to see invoices and working out the profit, perhaps." Businessmen complain that it is a full-time job trying to keep abreast of new regulations that change daily. Because of the chronic shortage of cash, employers have been told to pay staff who earn over Z$1m a month (a subsistence wage) by cheque, which means people have to open up bank accounts. This is proving difficult as many do not have the correct identification documents and will face bank charges that shrink their meagre earnings still further. No cheques of Z$50m or above ($416 on the black market) are acknowledged by the banks and there are limits on the amount of cheques that can be drawn each day. When the ATM machines work, only Z$3m ($21) can be withdrawn. It seems beating rampant inflation will prove a long-fought battle. This report was compiled by the BBC's Lucy Fleming from the accounts of several Harare residents. |
International Herald Tribune
The Associated PressPublished: July 4,
2007
HARARE, Zimbabwe: A Zimbabwe Foreign Ministry official
gatecrashed the U.S.
embassy's July 4 celebrations Wednesday to criticize
outgoing Ambassador
Christopher Dell, saying "diplomats are supposed to be
bridge builders not
bridge busters."
Samuel Mhango criticized Dell
for remarks he made in a brief address
Wednesday on the assault by police of
opposition leaders in Harare in March,
the country's worsening economic
crisis and what Dell called "the growing
climate of desperation and
oppression" in Zimbabwe.
"We believe ... that national day receptions
such as this one are occasions
for us to congratulate each other, to say
positive things about each other.
They are not occasions to attack or abuse
each other," Mhango said.
U.S officials said later Mhango told them the
foreign ministry was
considering banning speeches at foreign national day
functions.
Dell, along with independent economic commentators, have
recently cited
runaway inflation as the likely cause of full scale economic
collapse by the
end of the year.
"One wonders what authority some
have when giving specific time frames for
the meltdown of the Zimbabwe
economy. This leaves the impression the
meltdown is being engineered from
outside Zimbabwe," Mhango said.
The government has repeatedly accused
Britain, the former colonial power,
and the United States of backing a
political and economic campaign for
"regime change" to bring down longtime
ruler President Robert Mugabe.
"Zimbabwe brooks no interference in its
internal affairs ... Zimbabweans
should be left to solve their own
problems," Mhango said, reading from a
prepared text.
Dell said
afterward Mhango was not invited. He asked to speak at the podium
to several
hundred guests.
Dell told guests he himself was not invited to Zimbabwe's
independence day
celebrations on April 18, "so I did not attend. I see the
same rules don't
seem to apply in reverse."
In the worst economic
crisis since independence in 1980, official inflation
in Zimbabwe stands at
4,500 percent, the highest in the world, though
financial institutions
estimate real inflation is closer to 9,000 percent,
with acute shortages of
food, hard currency, gasoline, medicines and most
basic goods.
Shops
across the country failed to restock empty shelves with the cornmeal
staple,
bread, cooking oil, meat, eggs and other basic foods Wednesday after
a
government crackdown that began last week forcing stores to slash prices
by
about 50 percent, and triggering stampedes for cheaper goods in towns and
cities across the country.
Scores of businessmen have been arrested
and nearly 200 shops were charged
for defying the government's price edict
and overpricing, police said.
Dell's outspoken criticism of government
policies has angered Mugabe and his
colleagues, with Mugabe even nicknaming
the envoy "Go to Hell Dell."
Mhango said he sought an opportunity to
respond to Dell.
"It is always fair to have balance," he said. "The
government of Zimbabwe
will carry out its role of protecting and providing
food for its citizens as
mandated by the electorate," he said.
United
Nations officials estimate about one third of the population will
need food
aid in the next year.
Dell, reposted to Afghanistan later this month,
said he hoped during his
three years in Zimbabwe he gave a public voice to
the hopes and democratic
aspirations Zimbabweans themselves were prevented
from expressing openly by
sweeping media and security laws.
He said
his time in the country was marked by controversy and "a certain
coolness
toward me by the authorities."
He said Mugabe quoted words of Abraham
Lincoln at Zimbabwe's own
independence celebrations in April "in a sad
attempt to wrap himself in the
mantle of greatness."
Dell said he
rejected claims he interfered in Zimbabwe, but "America will
not abandon
Africa. We will always care and involve ourselves when we see
injustice
being done here."
He said he let Mhango take the microphone in U.S.
embassy grounds because
democracies believed in the historic adage "I may
disagree with everything
you say but I will defend to the death your right
to say it."
"That sums up the differences between the U.S. and Zimbabwe
today," he told
guests at the Independence Day celebrations.
New Zimbabwe
By Lebo
Nkatazo
Last updated: 07/05/2007 05:14:43
CHRISTOPHER Dell, the outgoing
United States ambassador to Zimbabwe says his
successor will continue to
criticise President Robert Mugabe's government.
The diplomat who has
drawn criticism from Zimbabwe officials and courted the
ire of president
Robert Mugabe during his stay in Zimbabwe was speaking at a
function to mark
the 231st anniversary of America's independence.
"Without Africa, America
would not be what it is -- and for that reason,
America will never abandon
Africa. We will always care and involve ourselves
when we see injustice
being done here," Dell said.
"I am certain that you will find my
successor and my government continue to
be just as committed and dedicated
to that cause as I have tried to be in my
three years here."
The US
government has previously said Dell's criticism of the Zimbabwean
authorities "very fairly and accurately reflect the policy of the United
States."
At one time, the Zimbabwe government summoned Dell and
complained after he
said Mugabe was practising what he termed "voodoo"
economics. Mugabe once
told the abrasive US envoy to "go to
hell".
"Mr Dell, go to hell!," Mugabe said in November last
year.
After attacks on MDC and civic leaders on March 11, the government
summoned
western diplomats and berated them for allegedly sympathising with
the
opposition leaders, but Dell walked out after the government allowed in
the
press.
On Wednesday, Dell said he was speaking on behalf of
suffering Zimbabweans
who are denied freedom of speech.
"I was able
-- in some small measure -- to give public voice to the hopes,
concerns and
aspirations that I know we share, but which you are prevented
from openly
expressing," he said.
He added that at an occasion to honour the war dead
on July 4, 1863, some
144 years ago, US president Abraham Lincoln said they
had died after giving
"the last full measure" to create a "government of the
people, by the people
and for the people."
He added that he was
surprised to hear President Mugabe, during a speech to
mark the country's
independence this year, making a reference to Lincoln's
words about a
democracy to describe his won government.
Dell recently warned President
Mugabe's government would be toppled by
inflation which he predicts will
touch 1,5 million by the end of the year.
Zimbabwean officials dismissed his
warnings and said the ambassador had a
problem with his sums.
"You
can imagine, for example, my surprise as I watched this year's
Independence
Day ceremonies at Rufaro Stadium and heard Robert Mugabe
himself quote
Lincoln's words. Nothing of course could have underscored more
clearly the
difference between what this president claims to be and what he
really is,"
Dell added.
"President Mugabe's sad attempt to wrap himself in the mantle
of greatness
that is rightly Lincoln's says more than anything as Lincoln
himself would
have put it my own 'poor ability to add or subtract" could
ever do about the
gap between that claim and the reality in Zimbabwe
today."
In a column in the state-run Herald newspaper last month,
Nathaniel
Manheru -- thought to be President Mugabe's spokesman George
Charamba --
said he had heard that the next US ambassador to Zimbabwe would
be black.
IOL
July
03 2007 at 11:43PM
Accra - Zimbabwe is a sore thumb for the African
continent which last
year enjoyed an average economic growth of around 4.5
percent and single
digit inflation rates, the International Monetary Fund
(IMF) said on
Tuesday.
"Consumer prices altogether came down to
single digit, excluding
Zimbabwe," said IMF deputy managing director
Takatoshi Kato. Zimbabwe has a
world record annual rate of inflation
estimated at more than 5 000 percent.
Kato told a news conference
on the sidelines of the African Union
summit of the institution's concern
"at the heightened rate of inflation
(and its impact) on the people at
large".
He said the regime of Zimbabwean President Robert Mugabe
bore the
responsibility to thrash out "very comprehensive measures head on"
to curb
the crisis while neighbouring countries bearing the brunt of the
crisis
should do more to stem a looming collapse of the
country.
"We would welcome any further dialogue
between neighbouring African
countries and Zimbabwe," said
Kato.
"The situation in Zimbabwe is affecting neighbouring
countries very
dramatically, it's also the responsibility of the
authorities.
Neighbouring countries can assist Zimbabwe, "but in
the end it's
really the responsibility of the (Zimbabwe) authorities to
address the
current situation", said Abdoulaye Bio-Thiane, IMF director for
Africa.
South Africa which hosts more than three million Zimbabwean
economic
refugees is mediating in dialogue between Harare and opposition
officials.
But sources close to the talks said nothing much should
be expected to
come out of the discussions to help Zimbabwe out of its
crises.
The solution calls not only for fiscal, monetary and social
reform,
but also political.
But a World Bank official attending
the AU summit, who spoke on
condition of anonymity, said the country was
doomed to collapse.
"I don't think that they (Zimbabwe authorities)
can avoid collapse,
given where they are now, given the lack of taste for
embracing any reforms,
given also the depth of the kind of reform that will
be needed, and the time
for recovery," the official said.
His
prediction was of a "total collapse" of what he called "a basket
case for
all the region".
He slammed fellow African leaders for failing to
put the Zimbabwe
crisis on the summit agenda.
"The live and let
live attitude integral to the AU policies of not
intervening in other
peoples' countries has not helped," he said. - Sapa-AFP
Last updated: 07/04/2007 10:03:53
Broadcast on Tuesday,
July 3, 2007
Violet Gonda: Zimbabwe has been witnessing a wave of strikes by many groups demanding better working conditions in a country that now has the highest inflation rate in the world and the fastest shrinking economy outside a war zone.
What needs to happen to turn around this crisis? To discuss the issues we welcome former MDC MP and social commentator from the International Socialist Organisation, Munyaradzi Gwisai who is speaking to us from Zimbabwe, Glen Mpani, a student studying democratic governance at the University of South Africa and a studio guest right here at SW Radio Africa, Mike Davies, the Chairperson of the Combined Harare Ratepayers Association. Welcome on the programme Hot Seat.
All: Hello Violet, thank you.
Violet: Now, I’m going to start with Mike Davies, can you tell us or give us an update on the situation facing residents at present
Mike Davies: well of course the situation in Zimbabwe continues to deteriorate at a rapid rate. We’re engaged in a civil disobedience campaign at the moment which combines elements both of street action, protests at neighbourhood level as well as CBD level but also the financial civil disobedience around the rates boycott; which is taking off very well at the moment and is starting to snowball. So, we use a combination of tactics to achieve our goals.
Our strategy is to emphasize the illegitimate nature of the Makwavarara Commission occupying Town House and to get people to acknowledge that as citizens they need to take whatever measures they are comfortable with, that are feasible to try and dislodge that Commission which continues to steal money on a daily basis. As far as the street level protests are concerned, it’s very difficult in Harare to mobilise people for street action and hopefully we’ll come up with some ideas during this discussion, but, people are so impoverished in Harare.
It’s very difficult to explain to people in Britain the level of poverty that afflicts people. They do not have the energy to engage in social activism any more; they are solely concerned with daily survival, with the grind of trying to find food, shelter etc. That it is unrealistic to expect those people to engage in civil protests that would merely result in them getting beaten or going to jail for a few days.
Violet: Do you agree with this Munyaradzi? Or rather, if the situation in Zimbabwe is as bad as it is reported, why are Zimbabweans not protesting?
Munyaradzi Gwisai: Well, I think that’s been the issue up to now and to commend Mike Davies and the organisation he leads, CHRA, for being among some of the organisations that are holding the candle in the last few years, along with other organisations like WOZA, the NCA and the International Socialist Organisation where I come from, and of course, the Labour movement. It’s been a difficult situation, exhaustion, from facing a very brutal and sophisticated dictatorship; sometimes without real chances of success; but also, I think, disillusionment with the leadership of the general opposition movement about having failed to lead people. Those were the factors.
But, I would slightly take a different view from what Davies said about the current situation. I mean, just as I speak, just this weekend alone, in Budiriro, Saturday, there was a demonstration by women and children protesting against lack of water. They’ve not had water now for up to two weeks in Budiriro and Glen View. And, I also attended a residents meeting in Chitungwiza; in fact attended, you know, combined by both CHRA and CHIRA, where residents are totally up in arms against the supplementary charges and the feeling and mood there was simply one of ‘when do we get in the streets’.
So, I think what Davies said is correct up to now but what we have seen in the last month is a huge deterioration in the lives of ordinary people, even the middle classes. The economy is virtually coming apart now and that is I think what is driving, and likely to drive real action if the civic groups, the labour movement, the political parties are prepared to come out and lead such a movement.
And, if anything the response of the Mugabe regime in the last month is what shows you that the country is now at a precipice. The country is now at an edge as a result of the economic crisis. You know the imposition of the price freeze, the slashing of prices, arresting of business executives. All that is a clear indication that the regime is aware that things can explode. What is really required now is unity of serious forces, courage of leadership. Otherwise this regime, in many ways, is now in a corner.
Violet: We will come to the issue of unity later on but what I think I’m hearing from both Mike and Munyaradzi is that protest is taking place, but at a smaller scale and it’s mainly residents who are embarking on these demonstrations. Now, Glen, you are studying protest potential in Zimbabwe. Why has this willingness to protest diminished in Zimbabwe even as the Zanu PF government has become more repressive?
Glen: Thank you so much Violet, I think, what I would want to do is that some of the issues raised by Munyaradzi and Davies, they are quite true. That there are a number of factors that can cause protest potential to diminish in any country when there are problems. One is basically the repressive nature of the Mugabe regime, I think that demobilises individuals. The second thing is the economic factors that are there in Zimbabwe. To say if the situation is bad it is very difficult to mobilise people to do that.
But, I think the take that I would want to give to this is the fact that what we need more is to come up with strategies to mobilise people to get into the streets, because, what has not been built within Zimbabwe is a network and a social capital that puts confidence in an individual who is suffering in Zimbabwe to say ‘if I’m going to do this, there is benefit that is going to come out of the process’. But if people feel that the leadership that is driving that process is not coming up with the necessary initiatives for the m to do that, I think it is very difficult to get individuals to get into the streets.
And, some of the examples that I would want to site; and I’m very glad that Davies and WOZA are using that; is where you have these small networks within the communities on rentals and things like that, to build individuals to do that. Because, necessarily, if you try and use political parties to do that, I think if you go to a rally and you say to people ‘do you want to protest and do that’, they will say ‘yes’ they want to do that. But, when they go on they make individual decisions to say ‘am I supposed to do it or not and what are the benefits that are directly going to come to me as an individual’. So, those are some of the problems that come out when one decides whether to participate in protest or not.
Violet: And Glen, is it possible that the problem could also be to do with culture? I mean have people ever been orientated in how to deal with this kind of crisis?
Glen: The issue of culture, Violet, I think it’s one thing that basically people try to disregard that to say no, culture does not have any effect in terms of whether people are going to protest or not. But, you also have to look at the history of Zimbabwe. I think our liberation struggle was guerrilla warfare where individuals did not necessarily confront the regime, so the culture of protesting and getting to the streets is not there within Zimbabwe.
So I think that is one of the contributory factors, to say, if you tell people ‘we are going to get into the streets’ are they inclined towards that? So, there is need now for mobilisation and taking people through a process of education to say ‘these strategies work. And, you don’t need to use one strategy, there are many ways to do it; boycotts, like what Davies is saying, are necessary things that you can use against the regime.
Violet: You know Mike, let me come back to the issue of strategies. I spoke with Jenni Williams recently and she said the main or major problem is that there’s no unity within the pro-democracy movement; CHRA does its own thing, NCA does its own thing, WOZA women do their own things. Why is it like that?
Mike Davies: Well, I think that going back to the early days of the movement in 1998/1999 when NCA was strong and we created the Movement for Democratic Change, at that time we were engaged in a noble mission. We had a fairly clear cut goal, we were united in that goal. Since then there’s been enormous divisive pressures that have driven us apart, that have led us to question our strategic and tactical alliances with other groups because we’ve questioned the various goals that people have. We seem to have lost a lot of vision that provided that unity and certainly, we have been coming together with other groups to try and re-establish a clear vision so that we know what we are fighting for.
There are many people in Zimbabwe who are opposed to the Mugabe regime but they are not necessarily fighting for genuine change to our system. They are merely fighting to change the faces at the trough. Some of us are actually trying to destroy the trough or at least limit access to the trough. So, this has been one of the big problems; is to have clarity of vision that allows us to build strategic and tactical alliances that are meaningful and are not just rhetorical and fade at the first challenge.
Glen: Sorry, Violet, I just wanted to say something on that also. To say, I think one of the other challenges that I also noticed is the privatisation of the struggle within Zimbabwe, where even those who are within the struggle in Zimbabwe have gone on to take up stances that by the end of the day they are now a liability to the process and driving the process. So, there are now also selfish interests that are now come into individuals that are driving this process.
Violet: And do you agree that the struggle has been privatised?
Munyaradzi Gwisai: Yes, privatised and commodified. We call it the commodification of resistance syndrome where, given the crisis, many of those who lead these groups and organisations, in fact, have been living quite well off as a result of the financial support that has poured into civic society and that can be a big hindrance in people uniting, because everyone wants their little group to shine and appear in the papers so that they get more donor funding coming in. So that’s obviously a major problem that we have to confront. And, go back to the ethos of the liberation struggle, people were prepared to make sacrifices for a cause that they believed in.
But I think obviously, besides that, there has been a problem of ideological bankruptcy, there are ideological and strategic weaknesses that, after 2002/ 2003, the belief amongst the main players, except some of the few groups that have remained in the opposition movement, has been a belief that you can achieve change in Zimbabwe through simple – through the electoral route, through applying to the Courts, through sanctions from the West, but that clearly has failed to give results and it has disillusioned people.
So I think that lack of preparedness, to have courage to face the regime has contributed a great deal. And then there are those that have also been scared of going through the full mass action route because as Davies said they are afraid of the consequences of such a route because it would radicalise the whole movement, into a movement not just against the dictatorship but against the neo-liberal capitalist framework that it has been imposing in this country.
Violet: So, from a socialist perspective, what do you think that needs to happen for democracy to take place in Zimbabwe?
Munyaradzi Gwisai. Well, we have already seen events in Nigeria, there’s been a powerful huge strike in Nigeria that ended a week or so ago and there was also a big general strike in South Africa. But, the Nigerian one in particular holds very important lessons for us. The general strike was led by a united front of labour and civic groups called the Labour/ Civic Society Coalition and they have were able to drive this action centred around bread and butter issues, you know, fuel price increases, huge increases in basic goods.
What we need now in Zimbabwe is to build this huge united front that is ready to move into the streets, that is after real mobilisation, across the board; uniting labour, uniting civil society, uniting political opposition parties, demanding that we demand a new people driven constitution before elections, demanding that we require living wages for workers, demanding that we require food on our shelves at affordable prices, drugs for AIDS/HIV patients. So I think the opportunity is there now despite what has been happening in the last couple of years and the task on us is to ensure that this movement is built now and that action is mobilised for.
Mike Davies: I would like to come in there and say that the problem that we’ve had with building such a movement is the ideological differences that many of the actors have. This is not a fight about socialism or anti liberalism and some of those issues; this is a fight to allow us to engage in those struggles. We need to get rid of this current regime to establish an environment in which we can engage in discussions around class conflict, around race, etc, around gender and such.
So we actually need to suspend many of our own personal agendas, our organisational agendas, our own ideological perspectives that we can actually come together with rural, white, capitalists; the white capitalist farmers for instance, with the Churches, that we might not agree with them and their perspective on society but, so we can unite against a common enemy to create a society in which we can then engage in those struggles.
Violet: but how do you do that exactly, because some would say that is just rhetoric. What are the practical steps to build this real united front? You are talking about ideological differences, how do you bring the people together?
Mike Davies: Well, firstly, you have to have that idea, that recognition that we need to transcend some of our own perspectives. I have had to work with people I don’t necessarily believe or trust or have common goals, but, I know that by using our energies together we can perhaps get to a stage where we will get rid of this current enemy and be able to engage in those conflicts.
Violet: Do you think the MDC, you know, either faction, can implement this?
Mike Davies (laughs): Well, the proof of the pudding is in the eating. We have to see what they deliver. Many of us are disillusioned by the high level of rhetoric and the low level of action that we’ve seen from the MDC; that they can make the right noises but when it comes to deliverables, we don’t see it. So, we are disillusioned with that political party model. This is not about putting political parties or individuals into power. This is about trying to establish an environment in which Zimbabweans can choose freely who they want to lead themselves.
Violet: And Glen, what do you think is going on in opposition politics?
Glen: I think one of the challenges of social revolutions and mobilising people is that at times when that happens the leaders emerge out of that process who might not necessarily be from the political structures that are there. And, one of the things that I see happening very clearly within the two factions of the MDC is a tendency of selfishness to say if there are groups like CHRA doing activities, groups like WOZA doing activities, groups like Munyaradzi Gwisai doing activities, they would not want to come in and support their initiatives.
But, unfortunately, what they are not realising is that no matter how small these groups are, they are the ones who are basically able to drive people to get into the streets. So, what they should be doing as a political party is to use these organisations as think tanks, as strategists to ensure that they can infiltrate the communities, to ensure that when people mobilise for a protest, it should not be necessary to say ‘because we are not involved we just put out a press statement and then we leave it like that’.
That will not work because the cause should drive the process rather than who is doing it. So, the challenge for me within the MDC is to say - currently they don’t have the capacity to do that and they have been moving on the same cycle, as they are going on to say they condemn what is happening, they prepare for elections, they say time is going to be coming and currently now they are engaged in negotiations, which in my own view are quite futile and they are a waste of time.
Munyaradzi Gwisai: If I can come in and take up from what Davies is saying and what Glen is also saying, I completely agree Davies that we need to unite around that which unites us but I think there are also certain fundamentals of our struggle that we are talking about; commercialisation of the struggle, is that when those with money bags come into our movements, they have distorted the objectives of our struggle.
And then, secondly, as we speak today, the level of poverty and desperation of ordinary people, you cannot bring out people in the streets purely for instance raising issues of the constitution for instance, or raising political issues. The movements also have to address the real bread and butter issues that are confronting the people.
As we speak in the next week or two weeks, the shelves are going to be empty, things are going to be bought on the black market. So what we need to do is to link the different struggles of CHRA / CHIRA against supplementary increases, the struggles of those fighting for AIDS, for drugs, for water. To begin to link those into one major stream or river of struggle; link those different streams into a real river of struggle. So, we cannot - yes, I agree with you that it might not be a struggle for socialism, but it is also true that people are suffering two dictatorships.
Mike Davies: I agree entirely
Munyaradzi Gwisai: The dictatorship in the shops; the dictatorships of the state, and that can unite us, but, in doing so, you know that most of the major business communities are not participating in this because some of them are either benefiting or, they are not ready to make the sacrifices. The movement in terms of those who see those two levels needs to unite.
And, I would say, to be honest with you, if you look at what this regime has done in the last two weeks, the regime is clearly afraid that if we were to unite these different struggles together bringing in labour, bringing in the major opposition parties and civic society, getting out of the useless Mbeki talks, getting out of the social contract, we could really build up major action on the ground that would ensure that we are then able to build the democratic space that Davies is talking about and also the end of this regime. That is the challenge today.
Violet: That’s what I wanted to ask that you know it’s been said that South Africa and the International Community are entertaining or supporting this idea of a reformed Zanu PF. Now what creature do you think would have to implement these positive changes that you are talking about?
Munyaradzi Gwisai: Ya, we are aware, and this is why I say to Davies that we have to have a clear ideological clarity; we are aware that not just the South African President, but many sections in the West and amongst the business elites would prefer, or are now ready for a compromise situation where you would see Mugabe go but he is replaced by either a reformed ZANU, in unity with certain sections of the MDC who are prepared to be part of a national unity government but proceed to implement the ESAP programme that Gideon Gono has started. Now, that is not going to deliver real democracy. It is not going to provide food for ordinary people.
What we need to do now is to get these forces together. I think that what happened on March 11th and in February in Highfield shows that there was a growing recognition between the opposition and civil society that people can work together and move together. And, that is what we need to build on and move on in the next couple of weeks, as the economic crisis begins to explode, and mobilise and act together in a genuine united democratic front; not one that is controlled by one force; one in which we democratically share together.
Mike Davies: Absolutely I agree with you and one of the problems with the March 11th experience was that it was essentially a leadership driven process that achieved a propaganda victory rather than a mobilisation victory. What we found with these larger demonstrations is that they really only have one purpose and that is to generate arrests followed by media interest. They are actually demobilising for ordinary people.
And, just going back to an earlier issue about trying to mobilise people around so called abstract concepts like the constitution, democracy, governance, we learnt several years ago that people can’t eat those concepts, they do not deliver tangible results in the short term. So in the last three years we have shifted away from CBD centralised protests, high profile with media etc to very diffused local actions, our sewerage bucket protests last year. These generated immediate tangible results for those communities and there was no media coverage, we did not tell anybody.
They were small neighbourhood actions to empower people, to get a sense of their power as citizens and to try and break this subjectification of our people, that they are subjects, do what they are told and have no rights as citizens. The rights develop from the issue based activities that they engage in. Suddenly, they have exercised a little bit of power, the sewerage pipe has been repaired within 48 hours and they think ‘Oh OK, what can we do next’. It’s not leadership driven; we’re not going in and saying ‘do this, do that, follow us, we’ll lead you to the promised land, but, we are presenting possibilities and then helping to facilitate those initiatives. And, I think that’s really important;’ that we have a lot of small fires than trying to light one big bonfire in Africa Unity Square.
Violet: But it seems the small fires are only taking place in towns like Harare, but not everywhere else in the country. So do you not think that there is a leadership vacuum in these other areas and are the political parties the ones to drive the people when it comes to the large scale protests?
Mike Davies: Well, I think it’s very easy to get locked into accusations that leaders are getting enriched, that they’ve got lots of money, that they dominate things. These are ultimately unproductive and often are based on misconceptions of the nature of leadership of organisations. Often you get discredited because you are travelling abroad to do some lobby work, we get it within our own organisation. I think those need to be dealt with in a way that is not divisive but actually allows for some degree of unity.
The truth of the matter is that Zimbabwe has been decimated by this crisis, 70% of our adult population no longer lives there, they’ve essentially disengaged from this struggle, the rural areas are so, so subject to Zanu PF’s rule that people have very little opportunity to engage in action. However, this is happening, we saw the women in Gwanda protesting about the arrests of their mining husbands. A lot of small fires will be as effective as one big fire. And, I think we mustn’t dismiss the small actions that seemingly don’t have a greater strategy, but they will feed into general mobilisation and empowerment of the people.
Munyaradzi Gwisai: I just wanted to say, I think this is the key, we need to build confidence in terms of the ordinary people, in terms of the ordinary activists, through these struggles that are linked to the bread and butter issues but at the same time also highlighting the political dimension. What I would only say is that the urgency of the situation now, in terms of the crisis is such that we need to do both.
I think we need to continue expanding the small fires or the small streams and doing them together such that for instance, at the Zimbabwe Social Forum, where we are also active, if CHRA calls for action in terms of the sewerage, we will then get the women of WOZA, we will then get labour and others in that community participating. Whilst at the same time, beginning now, I think as a matter of urgency, to begin to get our various movements together around a programme of fighting around these basic issues.
Glen: Violet I just wanted to ask a question to Munyaradzi and Davies. As the problems in Zimbabwe have been sliding, has their ever been an initiative just to form a coalition that strategizes on protest in Zimbabwe?
Mike Davies: Yes, there has, a couple of years ago we had the Broad Alliance, well initially, the Crisis Coalition and then we had the Broad Alliance and now the Save Zimbabwe. Unfortunately, those formulations they are very much leadership driven, they are top-down, they are foray for the leaders to come together and inevitably these things either become hegemonic exercises by political parties to dominate and direct civics or they jump on the Zimbabwe gravy train and engage in institution building and foreign travel and lobbying and preaching to the converted. They fail to engage at a local level. For instance, Save Zimbabwe on the ground is not really doing much in neighbourhood communities and such. Most of their work is to engage at an international level rather than a national level?
Violet: And Munyaradzi? .
Munyaradzi Gwisai: I think Davies is right. What you’ve had are popular alliances which emerge from the top and which are leadership driven. You’ve not had the activists coming together. And I think it reflects what I’ve said are the problems of ideological clarity and commercialisation of the struggle in the sense that some would prefer a situation where the Zimbabwe crisis would be solved through an elite settlement. A settlement of leaders but without addressing the underlying cause of economic poverty and dictatorship. So, I think we have seen from the experience of the three or four alliances that Davies has referred to, that, that will not succeed.
What we have to do is to have a united front that brings both leaderships and their memberships around a programme of action that raise both economic and political issues against both the state and also supermarkets, businesses that are making huge profits from the crisis. I mean Delta and Meikles, you know these are some of the big companies on the Zimbabwe Stock Exchange, have made huge gains in the past two weeks and they own companies and supermarkets.
Mike Davies: They are doing very nicely during the crisis, they are doing better than the inflation rate.
Violet: So the crisis has become a business for many people
Mike Davies: Oh absolutely
Glen: Ya, ya, people benefit from this
Munyaradzi Gwisai: Ya, so we have to target these people as well
Mike Davies: The rent-seeking behaviour in Zimbabwe is phenomenal, people that are doing nothing to productivity but are merely engaged in shifting goods and getting arbitrage from that, without adding value.
Violet: What about on the issue of the Diaspora because many people have said that the Diaspora is holding the economy in Zimbabwe. So Glen, this is a question for you, do you think that the Diaspora has a role to determine how change comes about in Zimbabwe and should it stop sending money?
Glen: Ya, I think one of the challenges that we need to look at is that the Diaspora is causing the free-rider problem. Where if my mother in Zimbabwe knows that Glen is going to be sending a couple of Rands, it does not motivate her to be part and parcel of a cause within Zimbabwe to ensure that the problems are being addressed, because, I think sending money is just a short term benefit that she can derive.
There is a greater thing to be achieved. So the Diaspora is contributing immensely to that problem, and, in terms of strategies whether the Diaspora needs to stop sending money or not, I think that will also get to the moral problem and I don’t know to what extent people in the Diaspora would want to say ‘lets shut out our parents and relatives in Zimbabwe and starve them for a while so they can be able to respond to this social movement’.
Mike Davies: That’s not going to happen.
Glen: That’s not going to happen
Violet: Because it means telling someone not to send money to their ailing mother, it’s a difficult one.
Mike Davies: Absolutely.
Munyaradzi Gwisai: You know people have been kept alive by their relatives and friends from outside. It would be wrong for us to do that and we would not support that certainly. But I think the Diaspora has a role in terms of beginning to build up a solidarity movement you know in South Africa, in the UK, wherever they are; linking up with grassroots movements, Trade Union movements, social movements. Like what happened during the anti apartheid struggle or against the colonial regime here. They must now not only send home to their parents but we want to see them actively engaged in solidarity action in the various countries that they are. I think that can also inspire people back here and make sure that our struggle is driven internationally as well as from here.
Mike Davies: we mustn’t fall into the trap though of regarding the Diaspora as a homogenous group all having similar views and agendas. Many in the Diaspora are purely economic refugees if not active supporters of Zanu PF and certainly I’ve experienced that in England. People have no interest in addressing the political situation back home. They are there, they are taking advantage of the situation, they doing reasonably well, and they are maintaining many, many relatives back home. This benefits Mugabe in two ways, so that the opponents are outside the country and are earning real money which is ameliorating the suffering of people back home.
Glen: But Davies one of the challenges that I have also noticed in even trying to engage with the associations that are there within Zimbabwe is that the moment they come and visit when they come into the Diaspora and to try engage them on the Zimbabwean issue, there is even this perception to say you are here, what can you tell us, you ran away from the struggles back home, you are not really grounded to understand what’s happening, you are speaking yet you are not in the fire and we are there we know better. I think it’s a challenge because it now becomes a tussle of ideas to say what needs to be done. The Diaspora could be used as a thinking tank as people who are there possibly to help to in terms of helping in these strategies of how to mobilise people. So I think there is also that challenge as to how the Diaspora engages with civil organisations in Zimbabwe.
Violet: I need to wind up, I’m running out of time. Mike, is it possible to have a Zanu PF Government?
Mike Davies: Well, I think one thing that we must realise is that whatever the future holds it’s not going to be something that we hope for or that we anticipate. It might be one of a number of scenarios that we postulate. What will develop will develop out of a whole range of dynamics and forces. It is very possible that a split in Zanu PF, those people will unite with some MDC elements to have a government of national unity to merely change faces at the trough, to have an elite accommodation that will not deliver any structural change, will not address the causes of social injustices in Zimbabwe. That is a very real danger and one that those of us on the left need to identify and try to prevent as best we are able..
Violet: And Glen what role do you think or do you see Africa playing in Zimbabwe?
Glen: No I think Africa plays a very, very important role and that other learning from what has happened in Zimbabwe it is one situation that is untenable, I think what Africa needs to be able to do is ensure that the necessary changes that need to take place, like what Davies has mentioned, the structural changes are done and we don’t just have a cosmetic change where we just say we’ve got new leadership. So I think Africa has got a very pivotal role to play but whether they are going to be given that opportunity to do it or not I think it’s an issue that we can debate.
Violet: And Munyaradzi, you know you were once an opposition MP and of course you fell out of favour with the MDC now you seem to have gone off the radar a bit there, what’s happening to you now?
Munyaradzi Gwisai: Oh well I think as you say the struggle is coming back, we were off the radar because people thought you could pacify and talk this regime out of power but certainly now we are very active in the Labour movements and the Zimbabwe Social Forum and other such forces and what we are saying now is that there is a historic opportunity for the working people of this country to really unite and be able to finish what they started in 1997 /‘98/’99. That is really a movement from below to remove this dictatorship and also to remove the conditions of poverty which are being caused by ESAP, these economic programmes of neo liberal capitalism.
Violet: Thank you very much Munyaradzi Gwisai, Mike Davies and Glen Mupane.
All: Thanks Violet.
Audio interview can be heard on SW Radio Africa’s Hot Seat programme. Comments and feedback can be emailed to violet@swradioafrica.com
HARARE, 4 July 2007 (IRIN) - Concerns are
being raised about the voter
registration process ahead of Zimbabwe's
presidential and parliamentary
elections, just nine months away. The main
opposition party, Movement for
Democratic Change (MDC), claims that the
process is being abused, while an
independent poll-monitoring organisation
says the timeframe needs to be
extended.
Rural voters had to produce
proof of residence to register, which was
usually supplied by the local
traditional leader, but most areas were
controlled by chiefs who supported
the ruling ZANU-PF party.
"The traditional leaders are very compromised
and are refusing to write such
letters for people known to be MDC
supporters. That obviously means we are
being disadvantaged, because our
supporters cannot register to vote,"
alleged Nelson Chamisa, a spokesman for
the MDC faction led by Morgan
Tsvangirai.
Registrar-General Tobaiwa
Mudede, who is in charge of the process, said
there was nothing amiss; the
national identity card or passport did not
always provide current
information on the individual's physical address.
Another election official
said proof of residence had been a constitutional
requirement for
registration since 2002.
Traditional leaders in rural areas receive
vehicles and salaries from the
government, and their homes have been
electrified under the rural
electrification programme.
In urban
areas, where the MDC is strongest, prospective voters who wished to
register
had to get a letter from the property owner confirming their street
address.
Most urban dwellers rent accommodation and a large number of
property owners
have emigrated, while many Zimbabweans of foreign descent
living in urban
areas are excluded from the voting process.
Not enough time
The
Zimbabwe Election Support Network (ZESN) said insufficient time had been
allowed for registration. "We are deeply concerned that the exercise has not
been adequately publicised, which might result in most prospective voters
being unable to register," said Rindai Chipfunde-Vava, director of
ZESN.
She suggested that the registration period, which ends on 17
August, be
extended by at least four months.
"We believe that the
advertisements in the print media are not an
appropriate and sufficient
medium of communication of this strategic
component of the electoral
process," Chipfunde-Vava said, because people in
rural areas did not have
access to, or could not afford, newspapers such as
the official daily, The
Herald, which cost Z$25,000 (about US$0.20 at the
parallel market exchange
rate of Z$120,000 to US$1).
ZESN warned that under the Southern African
Development Community's
guidelines for conducting elections, the government
had to ensure full
participation by the majority of Zimbabweans, and also
that the process was
as fully inclusive as possible.
Since 2000
Zimbabwe's elections have been characterised by allegations of
impropriety,
violence and intimidation by both the main political
parties.
Chipfunde-Vava's organisation has been advocating the
establishment of an
independent electoral commission that would be
responsible for voter
registration and education.
"The current
situation where a department of the Ministry of Home Affairs
conducts voter
registration, albeit under the Zimbabwe Electoral Commission,
is undesirable
and a potential source of electoral disputes. We believe that
that an
adequately resourced independent electoral commission should carry
out this
strategic task."
Misinformation claims
The MDC's Chamisa alleged
that government officials in rural areas were
discouraging young voters, who
were more inclined to support the opposition,
by telling them that the
registration process was for people older than 40
years.
In urban
areas, he claimed, the electoral office had announced it was only
issuing
birth certificates and identity documents at this stage, and that
voter
registration would start later.
Registrar-General Mudede's office
dismissed the allegations as untrue.
[ENDS]
[This
report does not necessarily reflect the views of the United Nations]
Institute for War & Peace Reporting
As manufacturers and retailers raise prices to keep pace with
inflation, the
president accuses them of a concerted plot to unseat
him.
By Edison Ngomahuru in Harare (AR No. 120,
4-July-07)
President Robert Mugabe's declaration of war on the business
sector for
implementing steep price rises smacks of desperation as he casts
around for
someone to blame for Zimbabwe's economic decline.
Speaking
at the National Heroes' Acre on June 27, Mugabe accused
manufacturers and
retailers of acting in the interests of political forces
abroad which wanted
to destabilise the country. His remarks came after two
weeks of price
madness which saw the prices of most basic commodities shoot
up by more than
400 per cent before tumbling after threats of drastic action
by the
government.
The National Heroes' Acre is the place where leading figures
from the
liberation war of the Seventies are interred. This occasion was the
burial
of Brigadier-General Armstrong Paul Gunda, who was killed when his
car
crashed into a train. The death of Gunda, who was reportedly linked to
an
alleged coup plot against Mugabe, is still shrouded in mystery as he was
supposed to be under house arrest at the time of his death.
Mugabe
has always used events at Heroes' Acre to articulate his thoughts on
major
national issues.
In a voice heavy with emotion, he repeated his threat to
nationalise mines
and manufacturing companies which he said were trying to
achieve "regime
change" by hiking the prices of most food products including
bread, the
staple maize meal, soft drinks and salt.
"This nonsense of
price increases must come to an end immediately," said a
livid Mugabe to
loud applause from the crowd.
"It's going to be a rough game and we will
not lose it," he said, warning
retailers who increased the prices of basic
commodities that "We can play
the dirty game".
Inflation has been
running at high for some years, but the pace of price
rises has picked up in
recent months. At the end of May, prices were 100 per
cent higher than they
had been at the end of April. The annual inflation
figure for May stood at
4,500 per cent compared with the same month in 2006.
The government
reacted by setting up a price monitoring task force headed by
Industry and
International Trade Minister Obert Mpofu.
On June 26, after a week of
galloping price rises, the minister ordered
retailers to shift prices back
to where they were on June 18. On average,
this meant cuts of about 50 per
cent. Any prices rises must be justified by
a clear scientific model, as
agreed at the signing of the "social contract"
between government, business
and labour on June 1, said Mpofu said. Like
Mugabe, Mpofu said the
government was "aware that these escalating price
increases are a political
ploy engineered by our detractors to effect an
illegal regime change against
the ruling party ZANU-PF".
As a result of the instruction, the popular
orange drink Mazoe Crush fell in
prices from 400,000 to 120,000 Zimbabwe
dollars, ZWD, in a matter of hours,
while bread prices fell from 45,000 to
22,000 ZWD.
Earlier this year, a number of business executives were
arrested and briefly
detained for increasing the price of bread. Several
shops were fined for
overpricing goods.
Zimbabwe is in its eighth
year of economic crisis, marked by rampant
inflation, high unemployment and
a critical shortage of most products.
Mugabe denies that his government
is culpable, blaming the widespread
poverty instead on the "targeted
sanctions" the West imposed on him and
other ZANU-PF heavyweights following
his disputed re-election in 2002.
A political analyst in Harare said he
sensed an air of desperation in the
president's June 27 address. He said
Mugabe clearly felt betrayed by the
business sector.
"It is evident
that Mugabe is very angry with business," he said. "His
government cannot on
its own stop the economic slide, and he was hoping that
together with
business there could be a reprieve regardless of how short.
"Whether the
price increases are justified or not is not the issue."
With business
appearing to act in concert to increase prices across the
board, it was not
hard for a beleaguered government like Mugabe's to suspect
a conspiracy,
said the analyst.
A business analyst also in Zimbabwe said the
government's reaction -
imposing price restraints from above in an
inflationary environment - could
be counterproductive, generating further
shortages that would hit the very
people that it was trying to
protect.
"Price controls don't always work," he said. "In the past when
they were
imposed, they led to more shortages. Instead the poor were paying
more for
the same goods on the black market."
He said it was almost
impossible for business to keep production costs low,
given the collapse of
the Zimbabwean dollar against foreign currencies,
especially the American
dollar and the British pound.
This analyst noted at the same time that
the business sector could be
construed as having acted in bad faith on the
June 1 social contract. While
the agreements signed as part of the contract
required business to maximise
productivity and avoid wild price
fluctuations, retailers appeared to have
acted "unilaterally and with a
common intent", he said.
"Nobody denies that the costs of production are
going up every day.But why
so suddenly and so soon after the signing of the
Incomes and Prices
Stabilisation protocols? Obviously there is something
wrong. Whether
government's reaction is right or wrong is not the issue.
Business says it
is increasing prices to be able to restock because of high
inflation but it
is equally guilty of stoking inflation."
When
Reserve Bank governor Gideon Gono first mooted the social contract and
spoke
of a temporary price freeze in January this year, business reacted by
hiking
the prices of most commodities.
The same appears to have happened after
the social contract was signed. The
analyst said business was behaving
irresponsibly as if it were at war with
government.
Turning to
Zimbabwe's mining companies and manufacturers, Mugabe warned that
the state
might seize control of them if they continued to raise prices.
"Take
note, we will nationalise them - all companies. We will take them if
they
continue to externalise our resources," he said.
Mining companies were
"playing dirty games" and siphoning foreign currency
out of the
country.
Parliament is already working to approve the Indigenisation and
Economic
Empowerment Bill, tabled last week, which stipulates that no
company
restructuring, merger or acquisition will be approved unless 51 per
cent of
the stock goes to indigenous Zimbabweans.
A veteran
Harare-based journalist said while nationalising factories and
mines would
be suicidal, it was not beyond the government to take such a
step.
"The same thing happened with the farm seizures which people
said could not
be done. Mugabe can do anything so long as it gives the
illusion that he is
in charge. Moreover he is never the direct victim of the
consequences of his
actions," he said.
The president did at least
have one piece of good news in his speech on June
27 - the same day, the man
he sees as his arch-enemy, British prime minister
Tony Blair, left
office.
"He is gone," said Mugabe in celebratory tones.
The
Zimbabwean president blames Blair's government for orchestrating the
wave of
bad publicity and sanctions against his government after he seized
white
owned commercial farms beginning in 2000 - a policy decision many
blame for
the parlous state of the economy.
Mugabe said he hoped the new Labour
government would take a different view
of Zimbabwe and "improve past
policy".
"We have no enemies of our own making," he said, referring to
all the states
he views as pitted against Zimbabwe's national interest. "Who
are they to
decide our destiny, the route we should take, who our rulers
should be?"
Edison Ngomahuru is the pseudonym of a reporter in Zimbabwe.
By Violet Gonda
4 July
2007
The SADC led talks on Zimbabwe are expected to resume this week.
South
African President Thabo Mbeki is believed to have briefed SADC leaders
on
the progress so far, in behind closed door meetings on the sidelines of
the
just ended African Union summit in Accra Ghana.
Journalist Andy
Meldrum said Mbeki has been trying to keep the details of
the negotiations
out of the media as much as possible. He said: "To a
certain extent I can
understand the reasoning of that because you can't have
a good negotiation
going on and have whatever you say becoming headlines in
the newspapers the
next day. But I do think at a certain point you also have
to have
transparency, so that people understand what the points are and what
they
are trying to achieve."
The talks were adjourned late last month after
both ZANU PF and MDC finally
agreed on the agenda. There had been much
disagreement on the political
parties' demands on what should happen to
ensure free and fair elections.
Elections are expected next year but critics
are not holding out much faith
in the SADC initiative as there seems to be a
lack of political will on the
part of the regime, which has been dragging
it's feet to the negotiating
table.
Meldrum says the hard work is now
to begin. "Although South Africa has
managed to get both sides to the table,
to sit around the same table, but
really the most important thing is for
South Africa to realize what are the
conditions? What needs to be
established to have free and fair elections and
then to try and get the kind
of reforms from the government, from Mugabe,
needed to have free and fair
elections. That is going to be very, very
difficult indeed."
Basildon
Peta, another journalist who has been following the events in South
Africa,
said recently; "Yes they have agreed on the agenda, now it comes to
the
substance and if you look at the positions of the two parties, their
differences are like the distance between the North and South Poles so it is
going to be difficult to get agreements in the end."
Some observers
say that SADC leaders would prefer an outcome that is led by
a reformed ZANU
PF, containing certain elements from the opposition, and
they have also
expressed skepticism over whether Mbeki is really interested
in establishing
conditions for free and fair elections. There are
suggestions that he is
more concerned about a whitewash of the situation for
Robert
Mugabe.
Zimbabwean civic groups are also worried that the process only
involves
political parties. They are calling for a transparent deal and to
at least
be consulted on the issues.
SW Radio Africa
Zimbabwe news
By Tichaona
Sibanda
4 July 2007
Peter Michael Hitschmann, who has been held in
police custody by the regime
for over a year on charges of attempting to
assassinate Robert Mugabe, has
been cleared of the plot by a High Court
judge.
But Judge Elfas Chitakunye on Tuesday convicted Hitschmann on a
lesser
charge of possessing dangerous weapons of war and slapped him with a
three-year jail term. His lawyers said they would appeal at the Supreme
Court.
Hitschmann has always denied plans to assassinate Mugabe,
insisting that
weapons found at his home were for personal use. The former
soldier in the
Rhodesian army is a registered arms dealer and a professional
hunter.
He was arrested in February last year after he was allegedly
found in
possession of weapons of war that the state said he intended to use
to carry
out acts of banditry.
The state case against Hitschmann was
that he had plotted to assassinate
Mugabe during his birthday celebrations
in the eastern border city of
Mutare. In the aftermath of his arrest, state
security agents arrested
several leading MDC officials including Mutare
North MP Giles Mutsekwa, in
connection with the plot.
Mutsekwa told
Newsreel police investigations have been politicised to a
point where the
slightest instruction by a Zanu (PF) politician now warrants
an arrest
before a proper investigation.
'We knew from the onset that certain Zanu
(PF) ministers were behind our
arrests because they thought it would deviate
attention from their
atrocities against the opposition,' Mutsekwa
said.
The MDC MP believes it is time discredited state witnesses like
Israel Phiri
were prosecuted for lying in court. In his evidence Phiri, a
Major in the
Zimbabwe National Army, said he was recruited by Hitschmann
into the shadowy
Zimbabwe Freedom Movement to carry out acts of banditry in
Zimbabwe.
Phiri also said he had been issued with weapons and ammunition by
Hitschmann
to pass on to a team of hired gunmen to carry out Mugabe's
assassination. He
also said Hitschmann had hatched a plot to pour used
engine oil on the road
at the Christmas Pass to cause Mugabe's motorcade to
skid. Phiri told the
court that the assassination plot was never carried out
as it had too many
loopholes.
ZimOnline reports that Judge Chitakunye
dismissed his evidence saying it
lacked corroboration. The judge also said
Phiri was evasive and arrogant in
the witness stand, making it difficult to
believe he was an undercover
military intelligence officer.
'This
matter involved the security of the nation," said Justice Chitakunye.
'It
remains a mystery to me why proper recordings of meetings between Major
Phiri and the accused were not
done.'
.................
SW Radio Africa Zimbabwe news
By Lance
Guma
04 July 2007
The Zimbabwe Congress of Trade Unions has resolved
to mobilise its members
for a strike in July to protest the worsening plight
of workers in the
country. On Wednesday ZCTU Deputy Secretary General Japhet
Moyo told
Newsreel the labour body's regional leaders met on Saturday to
consider
several issues, one of which was that nothing had changed in terms
of union
demands to government. The ZCTU put forward demands for a living
wage for
workers above the poverty datum line of Z$5,5 million a month.
Since those
demands were made government has failed to address any of them
and inflation
is now pegged at over 10 000 percent by independent analysts
and is
constantly changing the living wage required.
Moyo said they
are consulting the ZCTU general membership on the best method
of striking.
In the past they have employed mass stay aways and street
demonstrations. On
all occasions the state has responded with brute force,
crushing all
gatherings and severely beating up union leaders. Moyo conceded
that shaping
the actual strategy was going to be a challenge in view of the
repression in
the country. It will then be up to the ZCTU general assembly
to meet and
endorse any recommendations made.
The ZCTU is already predicting massive
retrenchments of workers caused by
the chaos over price controls which are
threatening to shut down many
businesses. Manufacturers and supermarkets
countrywide are considering their
options following threats from government
that they risk having their
businesses nationalised if they do not implement
50 percent price
reductions. Moyo predicted the situation would severely
affect the few
workers lucky to have jobs in an environment of 80 percent
unemployment. He
however said the ZCTU is still to adopt a formal position
on the price
reductions being ordered by government, and that this would be
tabled for
discussion by the union in days to come.
SW Radio
Africa Zimbabwe news
By Violet Gonda
4th July
2007
The pressure group Women of Zimbabwe Arise held a peaceful protest
march in
Mutare on Wednesday, as part of a nationwide campaign for better
electricity
supply. The group says about 200 activists marched for four
blocks through
the eastern city to Megawatt House, the local headquarters of
the Zimbabwe
Electricity Supply Authority, where they delivered protest
notes to the ZESA
officials.
WOZA has held sit-ins at the ZESA
offices in Harare and Bulawayo and similar
demonstrations in Masvingo and
scores of women were arrested and beaten
during these protests. There were
no reports of arrests or the use of force
in Mutare.
Power and water
cuts have become a way of life while struggling consumers
are still being
forced to pay high tariffs and rates. The Zimbabwean economy
is in freefall
and economists say inflation has reached 10 000%.
The WOZA protest note
that was left at the ZESA offices in Mutare read:
"Zimbabwe Electricity
Supply Authority, I am a power consumer and have been
your customer for many
years but your service has been getting worse in the
last three years. I
have run out of patience; your service is no longer
empowering anyone but is
draining many pockets. I want POWER and deserve to
be given all the basic
requirements a human being needs. I know ZESA is also
a victim of a bad and
mismanaged economy but think that ZESA should do more
to deal with internal
corruption."
The problems at ZESA are not unique. Corruption and bad
governance are
endemic in Zimbabwe. The badly managed price freezes ordered
by government
are set to make things much worse for consumers across the
country.
Economists predict the country will slide into even greater chaos
as
businesses face continued force to lower prices, making it impossible for
them to operate in such a hyper inflationary environment. The price freezes
are unsustainable and the ripple effect will not only result in shortages of
basic commodities but also in retailers and suppliers shutting down, causing
massive job cuts.
SW Radio Africa Zimbabwe news
Fin24
04/07/2007 15:32
By: Chris
Muronzi - Finweek Harare correspondent Harare -
Libyan leader Muammar
Gaddafi has agreed a US$2bn economic stabilisation
loan to troubled Zimbabwe
aimed at ending a severe economic recession
currently threatening the
stability of the entire region.
Although the conditions of the loan could not
be readily established at the
time of going to press, Zimbabwe's Information
Minister Sikhanyiso Ndlovu
did not deny the reports referring all questions
to the finance ministry.
"I can't comment on that because I do not have
the full details of the deal
but you should try talking to the central bank
or the finance minister,"
said Ndlovu, refusing to shed light into the
matter.
Efforts to reach Finance Minister Samuel Mumbengegwi proved
fruitless as his
phone went unanswered.
But an official in the
finance ministry confirmed that there was a deal with
the Libyans while
maintaining that it is "still very sensitive" at the
moment.
Libya
ties go far back
"We have something in the pipeline but it is so
sensitive that the
President's Office is working on it and hence can not be
quoted for now,"
said the official.
This is not the first time
Zimbabwe and Libya have forged economic ties.
In 2002, Gaddafi's
government unveiled a fuel facility for Zimbabwe but the
deal ended sourly
after the Commercial Bank of Zimbabwe (CBZ) in which the
Zimbabwean
government has shares, failed to pay Libya's Tamoil an
undisclosed amount,
resulting in the Libyan firm opting for a debt equity
swap for shares in the
local bank.
But over the years relations between the two countries have
been lukewarm.
Government insiders say Mugabe is now keen on quitting and
wants economic
stability before he hands over power.
According to the
insiders, the money will be availed to Zimbabwe to
stabilise the declining
economy while paving the way for Mugabe's dignified
exit.
Mortgage
the country's resources
Gaddafi is expected in Zimbabwe in the next few
weeks to ratify a series of
agreements with Mugabe's
government.
These reports have also raised questions on whether Mugabe is
not planning
to mortgage the country's resources to pay back the
loan.
Zimbabwe has the second largest platinum resources after South
Africa and
has undeveloped coal and chrome projects.
Critics believe
Mugabe, who is desperate to win the hearts of restive and
poverty-stricken
Zimbabweans ahead of a presidential poll in March, might
have agreed to
mortgage the country's resources in return for the loan.
Ironically, the
loan reports come at a time when Mugabe and his deputy
Joseph Msika have
threatened to seize and nationalise mines and firms
belonging to foreigners
accusing them of "playing dirty tricks" on his
government.
SA loan
'had conditions'
Already, parallel forex rates, believed to be a true
reflection of the Zim
currency value, have stabilised amid speculation that
the country's central
bank believed to be the biggest buyer on the market
has not been buying.
In essence the local unit has gained 30% against the
US dollar since last
month and black market rates are showing real signs of
stability for the
first time this year.
The Zimbabwe dollar is now
trading at ZW$120 000 to the greenback off a peak
of ZW$180 000 last
month.
South Africa two years ago tried to bail out its neghbour with a
R1bn loan,
but Mugabe's government rejected the loan because it had
"conditions".
News of the deal comes a month after Mugabe passed through
Libya on his way
from Egypt where he met Gaddafi and initiated the
deal.
Zimbabwe has the highest inflation rate in the world - believed to
be around
4 500%.
Fin24
04/07/2007 14:23
By: Chris
Muronzi
"BE very afraid!" is probably the only warning for executives and
foreign
shareholders in Zimbabwe at the moment.
By now, foreign investors
must understandably be quaking in their boots
after a long week of
relentless nationalisation threats. Less than a week
ago, Zimbabwe's
President Robert Mugabe threatened to nationalize firms, and
clampdown on
businesses that didn't comply with a government order to slash
prices by 50%
on basic goods.
While investors were still making head or tails of what
Mugabe had said and
before the dust had even settled, his deputy Joseph
Msika was at it again -
backing nationalisation threats and accusing
business of being "money
mongers".
The threats came a few days after
a "plan to effect a regime change" by a
group known as the "Fish Mongers"
was unearthed by Zimbabwe's efficient
intelligence (it has foiled three
coups in recent years including a recent
one in which a travel agent and an
army private with less than a year in the
service stand accused of trying to
topple Mugabe).
Although, this is not the first time nationalisation or
takeover threats
have been made, this is the only time the presidium has
joined hands to cow
perceived enemies of the state into
submission.
Unshaken by own people's suffering
For these men, both
in their ripe ages of 80 plus, it seemed (given their
limited options) a
relatively prudent idea to shun controversy and mischief
at any
expense...
Although no fingers were pointed at any particular miner on
the
externalisation of foreign funds charge, Mugabe's government is not
popular
for sweeping a "life and death" indiscretion like this under the
carpet. He
threw his former Finance Minister Chris Kuruneri in jail in 2004
on
externalisation charges and also ordered the arrests of several key
ruling
Zanu Pf party figures, and his distant nephew on similar
charges.
Demand for foreign currency here is incredibly strong that
street dealers
jokingly believe Mugabe also converts his greenbacks or any
other foreign
currency with black market rates because they say he does not
want to be
duped by the central bank, whose rates are ridiculously
low.
It seems Mugabe and Msika - despite presiding over the current
economic
crisis characterised by inflation of over 4 500% - are unshaken by
the
untold suffering of their own people.
Instead, analysts say they
are only concerned with throwing mud on the
business community to gain
political mileage ahead of a presidential
election next
March.
Sensitive leader...
To the electorate, however, Mugabe
wants to portray the role of a victim and
a sensitive leader being vilified
by a bunch of serial "money mongers", as
Msika put it. Mugabe's side of the
story is simple; the evil business
community is increasing prices in order
to effect an illegal regime change
with the full blessings of Tony Blair
(soon it will be Gordon Brown) or
their Yankee cousins.
But Mugabe's
critics believe his threat to "crack the whip" on businesses
who don't
comply with a government order to slash prices is nothing but a
futile
attempt to win the hearts of a restive electorate and eventually
extend his
stay in office ahead of the polls next year.
Winning votes through
questionable price cuts is not a very feasible
strategy, politically, as
certain commentators have noted. At the same time,
consumers are having the
time of their lives as they cash in on cheap goods.
The feeling among
most Zimbabweans is that the price controls will not last
hence they are
cashing now on ridiculously low prices of goods.
Others warn that should
Mugabe proceed with nationalisation of firms,
Zimbabwe's economy, which is
already teetering on the brink of collapse,
could finally exhale its last
breath.
Production will stop
Should Mugabe follow through on his
"seizure" threats, business executives
predict production will
seize.
Manufacturers say they are operating under 30% of their capacity.
Ironically, Mugabe's nationalisation threats come at a time state
enterprises like power utility ZESA Holdings, steel maker Zisco Steel and a
host of other parastatals are making perennial losses under incompetent
management. Most parastatals are surviving at the mercy of the central bank,
which hands them working capital funds financed through the printing
mill.
Mugabe's prolonged stay in power will worsen the country's economic
and
political problems as many feel that he is the only obstacle to
Zimbabwe's
economic recovery. Others discounted the threats saying, "Mugabe
is no
fool". Some believe he is just clamouring for attention like a child.
The
latter assertion is, however, not fair, given that newspapers around the
world love Mugabe's rantings. Fans and critics alike have created websites
and blogs for him.
"Mugabe should not be showing as much commitment
towards overshadowing
international headlines such as Chris Benoit's death,
Paris Hilton's release
from jail, the swearing in of British premier Gordon
Brown or even Muamar
Gadaffi's bright idea of a United States of Africa
(USA). Why does he want
attention so much when he knows what will happen to
the economy," said Alois
Kandere, a manager of a computer consumable
shop.
SA businesses will suffer most
Whether the nationalisation
talk was the great "plan" or "efforts" within
Zanu PF former Finance
Minister Simba Makoni was talking about, it is not
clear. Makoni made it
look as if his party was concerned with the dire state
of affairs in the
country and "that the state of affairs could not go on".
Makoni was
participating on the BBC World Debate on Zimbabwe recently. He
was fired by
Mugabe for pushing for devaluation of the Zimbabwe dollar and
called a
"saboteur".
Warnings from a fellow Afrexim Bank brother (if it was the
west then it
would seem like they were pushing a regime change agenda) are
that the
troubled country should first achieve macro economic stability
before
embarking on any form of wealth redistribution.
On the same
programme a World Bank official said the troubled country will
make a rapid
recovery should Mugabe decide to quit or if leadership changes.
He projected
economic recovery could be achieved in three years.
But if Mugabe lives
up to his reputation, and seizes firms, SA businesses in
Zimbabwe are going
to be the worst hit. For instance, Mzi Khumalo's Metallon
Gold Zimbabwe, is
the country's largest gold producer and accounts for 60%
of the country's
bullion output while others such as Standard Bank Group,
Absa, Anglo,
Implats and Aquarius are exposed through their investments in
banking and
mining sectors.
Maybe after SA's northern neighbour proceeds with
nationalisation plans,
South Africa's president Thabo Mbeki will drop his
"quiet diplomacy" on
Zimbabwe...
The Statesman, Ghana
Eva Salinas , 04/07/2007
The fight for the rights of the
Zimbabwean people should not be confused
with the fight against the "West",
says Ghanaian activist Kwame Karikari.
He argues that criticism of the
Zimbabwean President Robert Mugabe comes
from Pan-Africanists who support
human rights in Africa, and not necessarily
from those who support a Western
democratic agenda.
"The essence of pan-Africanism is the protection of
human rights of the
African people," he said.
Mr Karikari, who is the
executive director of the Media Foundation for West
Africa, was speaking to
The Statesman in response to a rally held in Accra
Monday by the Pan Afrikan
United Front in support of Mr Mugabe.
Several speakers at the rally
furthered the claim that critics of Mr Mugabe
are funded and prompted by
leaders of Western countries.
But, "we don't represent [Former British
Prime Minister] Tony Blair," Mr
Karikari responded yesterday.
"Mugabe
was a hero of the anti-colonial struggle, but he has no right. to
now become
a dictator over his people," he added.
More than 100 people gathered at
the Osu Presbyterian Hall Monday to raise
awareness of the Zimbabwe
situation, the reality of which the organisers
claim is not represented in
the mainstream press.
"We want to tell Mr Mugabe that he is not alone,"
said Amde Tsion, a
Jamaican-born Ghanaian resident and member of the Pan
Afrikan United Front.
"It is an unfair and unjust situation he has found
himself in," he added.
PAUF was established in March "in response to the
burning desire of Africans
on the continent and in the Diaspora to join
forces in the fight again
neo-colonialism."
With regards to Zimbabwe,
the organisation supports President Mugabe on the
land dispute in the
country.
The conflict has been over the vast amount of land of which
farmers of
European descent took control after Independence in 1965. Over
the past two
decades, some of the land has been
redistributed.
Affiong L Affiong, a Nigerian member of PAUF, agreed the
support is not for
President Mugabe specifically, but simply for "Zimbabwe
on the land
question."
"We support his position on the land," she
said. "[This is] a war exploiting
our resources causing disease and strife.
Most of us don"t seem to realise
that."
Prof Karikari maintained that
the biggest concern is not with regards to the
land issue, saying he
personally supports the land redistribution. "There is
no African who would
not condone the monopoly of the land," he said.
Instead, it is a concern
over fundamental human rights agreements which
Zimbabwe has legislated but
has abused, Mr Ka