UK aid delivers in Zimbabwe but violence threatens progress, say MPs

26 March 2010

UK aid has helped deliver progress in Zimbabwe since the Government of National Unity was established a year ago, but governance, human rights and provision of basic services are still falling well below the needs of the people, says a report published today by the International Development Select Committee.

• Report: DFID's Assistance to Zimbabwe
• International Development Select Committee

The UK Department for International Development (DFID) is a leading donor in Zimbabwe. It allocated £60 million for humanitarian and development assistance in the country in 2009-10.

The Report says that UK support has been effective in reaching poor and vulnerable people. UK aid should continue, given the scale of ongoing need, and should be increased in the sectors where it is making the greatest impact. To date aid has been channelled through non-governmental organisations and multilateral agencies.

This should continue to be the way UK assistance is delivered, with DFID also supporting pro-poor elements of the Inclusive Government's own policies, where this is appropriate.

Emergency aid is making a difference but it cannot be turned into sustained development support without a long-term political settlement. The report condemns the electoral manipulation, abuse of state power, land seizures, and violence against political opponents and civil society which President Mugabe's ZANU-PF have inflicted on the country for many years.

The Chair of the Committee, Rt Hon Malcolm Bruce, said:

"We welcome the Global Political Agreement (GPA) which, although far from perfect, created the basis for formation of the Government of National Unity. However, violence and intimidation, bad government and destruction of the economy have forced millions of people to leave Zimbabwe.

"Many others have been displaced from their homes and are now refugees in their own country. There have been welcome signs of economic recovery under the Inclusive Government. Nevertheless, the political situation remains fragile. Until free and fair elections can take place, without intimidation and violence, progress will be limited and could be halted or reversed at any time."

The report concludes that the international community's longer-term focus should be on strengthening the capacity of the Government of National Unity so that it is better placed to determine its own development priorities and to deliver them.

The Chair said:

"The Inclusive Government needs to move to a position where it can meet the needs of the Zimbabwean people. All elements within the Government must demonstrate that their main aim is to ensure people receive basic services like health and education and are allowed to earn a living. The continuing political violence and harassment is not compatible with this.

"The Global Political Agreement must be fully implemented and all parties must be allowed to function without intimidation. We also believe that progress on human rights and democracy must be demonstrated before all the EU's restrictive measures placed on named individuals and organisations in Zimbabwe can be lifted."

The collapse of the economy led to a humanitarian crisis. Although the situation has improved, two million people are estimated to require food aid this year. DFID has provided vital humanitarian assistance and this will continue to be necessary for the next few years.

However, the report recommends that DFID should work towards a transition to longer-term development assistance, as conditions improve. It commends DFID for its Protracted Relief Programme, which has both met the immediate needs of millions of people, and helped them to rebuild their livelihoods.

Many skilled workers, particularly health workers and teachers, were driven from the country by political violence and the collapse of the economy. This left the health and education systems near collapse.

The Chair said:

"The challenges in the health sector are clear. Life expectancy rates in Zimbabwe are amongst the lowest in the world. Maternal and child mortality rates are particularly worrying. HIV/AIDS kills 62,000 people a year and has left one in four children as orphans.

"Continued donor support is needed to restore Zimbabwe's health services to the capability and capacity they had 20 years ago, when they were amongst the best in Africa. This is also true of education where a lack of teachers has resulted in a sharp decline in the number of children who are in school and the quality of provision they receive."

The report highlights that Zimbabwe's recovery will not only benefit its own people but neighbouring countries and the wider international community. The Southern African Development Community (SADC) and the South African President are central to progress towards political stability and continued economic recovery in Zimbabwe.

The Chair said:

"SADC has a key role to play in supporting Zimbabwe's recovery. We are disappointed that Zimbabwe has defied the SADC Tribunal ruling on land seizures. Farm invasions have had a devastating impact, both on individual farm-owners and workers and on the agricultural economy, and they must stop.

"The terrible human rights abuses which have taken place as part of land seizures are completely unacceptable. Zimbabwe should recognise the authority of SADC. The lack of enforcement mechanisms for the SADC ruling should also be addressed."

Image: iStockphoto

Biti may face charge after road accident

http://www.timeslive.co.za

Mar 26, 2010 12:09 AM | By Moses Mudzwiti

Zimbabwean police were preparing to charge Finance Minister Tendai Biti with
negligent driving, sources close to the case said.

The charges came to light two days after Biti was involved in a car crash
near Chegutu. He was slightly injured.

Biti, who is secretary-general of Prime Minister Morgan Tsvangirai's
Movement for Democratic Change, was discharged yesterday from the Avenues
Clinic in Harare.

Police sources investigating Tuesday night's crash said evidence collected
so far indicated Biti was alone in his vehicle when it collided with a truck
travelling from the opposite direction about 130km from Harare. However,
initial reports said Biti was a passenger.

Senior Assistant Commissioner Wayne Bvudzijena said the police would make an
official statement on the possibility of charging Biti after their
investigation was complete.

Watchdog says calls for Zim vote premature

http://www.zimonline.co.za

by Clara Smith Friday 26 March 2010

HARARE - Zimbabwe's biggest election watchdog on Thursday said calls by
Prime Minister Morgan Tsvangirai and President Robert Mugabe for new
elections are premature, adding that credible polls are possible only after
a complete overhaul of the country's distorted voters' roll and a review of
electoral, security and media laws.

Mugabe and Tsvangirai, who formed a unity government in February 2009 but
have since then been locked in a dispute over how to share executive power,
have in recent weeks urged supporters to prepare for a new vote to end
political stalemate in the country.

But the Zimbabwe Election Support Network (ZESN) said conditions that have
produced disputed election results in the past still existed in the country
while political violence that had relatively eased following formation of
the unity government was on the rise again.

ZESN, which is a coalition of more than 30 civic groups working to promote
democracy and free and fair elections in Zimbabwe, said the voters' was
still in a mess with tens of thousands of ghosts voters on the register.

"An imperfect voters' roll can disenfranchise the electorate," said ZESN,
which also called for the new Zimbabwe Electoral Commission (ZEC) to
takeover voter registration from the office of Registrar General Tobaiwa
Mudede, a known Mugabe ally who has been accused in the past of manipulating
the register to ensure victory for the veteran President and his Zanu (PF)
party.

Under the political agreement signed by Mugabe, Tsvangirai and Deputy Prime
Minister Arthur Mutambara that gave birth to their power-sharing government,
a new election should be held after the drafting of a new democratic
constitution to ensure the vote is free and fair.

But the constitutional reform process is lagging behind schedule which could
mean that the new vote that was initially expected in 2011 will have to be
delayed to probably 2012 or 2013 - or that the three governing parties agree
a new electoral framework to allow the holding of polls even before a new
constitution is in place.

ZESN said in addition to preparing a fresh and clean voters roll the unity
government would have to scrap the Public Order and Security Act and the
Access to Information and Protection of Privacy Act to ensure a new vote is
free and fair even in the absence of a new constitution.

The civic group said the government must move with speed to provide
resources and other support to the ZEC to ensure the commission is able to
manage elections.

 "ZESN proposes that the election management body needs to be capacitated
and resourced to improve its ability to manage elections efficiently and
effectively. ZESN continues to advocate for the creation of a truly
independent election management body," the group said.

Zimbabwe's elections over the past decade have been accompanied by violence
and gross human rights abuses with at least 200 supporters of Tsvangirai's
MDC party are believed to have been killed while no less than 10 000 others
were displaced in political violence in the run-up to a second round
presidential vote in 2008.

 Tsvangirai, who had been tipped to win the second round vote after
defeating Mugabe in the first round ballot withdraw from the race citing
state sponsored attacks against his supporters and leaving Mugabe to win the
poll uncontested.

But Mugabe's victory was rejected by the international community including
some of his African allies forcing him to agree to form a power sharing a
government with his former opposition foes.

The government has won plaudits for stabilising the economy but has moved at
a snail's pace on political and democratic reforms. - ZimOnline.

Zimbabwe gets green light to sell ivory

http://www.zimonline.co.za

by Own Correspondent Friday 26 March 2010

HARARE - The 175-member Convention on International Trade in Endangered
Species (CITES) has given Zimbabwe the green light to continue trading in
ivory despite attempts by some African countries to have a 20-year
moratorium, a government official told ZimOnline on Thursday.

Speaking on condition that his name was not published the official said the
authorisation to continue trading in ivory, follows submissions by Harare on
the benefits the country's wildlife industry is giving communities.

"CITES has given us the green light to continue trading in ivory," the
senior government official who is part of Environment Minister Francis Nhema's
delegation attending a CITES meeting which ended in Qatar yesterday said.

"This is a major relief to us. We are spending some US$13 million in terms
of security and the administration of the ivory we would have recovered from
either poachers or dead animals."

According to the official Nhema is expected to officially announce the CITES
position upon his return from the Middle East country.

Zimbabwe's bid to continue trade in ivory looked doomed following appeals by
Kenya, which lobbied the world conservation body not to allow trade in
ivory.

The east African country had suggested that there be a 20-year moratorium on
moves to ease international trade controls on elephant ivory.

"Kenya's proposal would have been disastrous for our conservation efforts,"
the official said.

Zimbabwe's elephants alongside those of other African countries are listed
under CITES Appendix I, in which trade is prohibited.

The last CITES meeting in 2007 agreed to a nine-year moratorium on any
further trade in ivory, after a sale of 105 tonnes of elephant ivory from
Botswana, Namibia, South Africa and Zimbabwe to China and Japan.

Elephants, the world's largest land mammals, are under pressure in many
parts of Africa from poaching, loss of habitats to farms and towns,
pollution and climate change. Estimates indicate that the numbers have
fallen to between 470 000-685 000 against millions a few decades ago.

Although Zimbabwe's proposal has received a nod from the world body,
Zambia's and Tanzania's appeal to be allowed to sell has been short down.

In 2008, Zimbabwe, Botswana, South Africa and Namibia were allowed a
once-off sale of their ivory stockpiles.

Currently, Harare does not have any ivory stockpiles after it was granted
permission for a once-off sale in 2007, but later sold the ivory in 2008. -
ZimOnline

Harare power-sharing talks resume

http://www.zimonline.co.za

by Ndodana Sixholo Friday 26 March 2010

HARARE - Talks to resolve a power-sharing dispute between Zimbabwe's
political parties resumed on Thursday after MDC secretary-general and
Finance Minister Tendai Biti, who was involved in a horrific car crash on
Tuesday night, was discharged from a private hospital in the morning.

Biti's car was a complete wreck following the horrific crash in Chegutu when
a haulage truck sideswiped his Toyota Hilux vehicle on Tuesday night.

But Prime Minister Morgan Tsvangirai's MDC said yesterday that Biti was set
to leave for Nyanga in the country's eastern districts to attend the
inter-party talks with negotiators from President Robert Mugabe's ZANU PF
party and Deputy Prime Minister Arthur Mutambara's MDC faction in line with
the time frames set by South African President Jacob Zuma.

Zuma, who controls the region's biggest economy, is the Southern African
Development Community (SADC) appointed facilitator in the on-going dialogue
to nudge the Harare coalition partners to fully implement a 2008
power-sharing agreement that is also known as the global political agreement
(GPA).

After three days of intensive negotiations in Harare last week, Zuma
announced that the parties had reached agreement on a "package of measures
to be implemented concurrently" but negotiators were asked to put final
touches on the agreements.

Zuma said the three parties to the GPA "have instructed their negotiating
teams to attend to all outstanding matters during their deliberations on
March 25, 26 and 29 and to report back to the facilitator by the 31st of
March".

Reliable sources said the negotiators will zero in on the implementation of
the agreed issues. It is not clear however how many of the 27 issues on the
agenda were agreed on when Zuma came and how many were still outstanding.

The negotiators are expected to draft implementation plans and timelines to
all the agreed issues and outline issues of disagreement which will then be
referred to Zuma for final arbitration.

Zimbabwe's unity government has stabilised country's economy to improve the
lives of ordinary citizens. But a dispute between Tsvangirai and Mugabe over
how to share executive power, senior appointments and security sector
reforms is holding back the administration and threatening to render it
ineffective.

The unity government's failure to win financial support from Western powers
and multilateral institutions has also crippled its efforts to rebuild an
economy shattered by a decade of political strife and acute recession. -
ZimOnline

Economic recovery won’t end unemployment: Govt

http://www.zimonline.co.za

by Own Correspondent Friday 26 March 2010

HARARE – Zimbabwe’s recovering economy will be able to absorb in the medium
term thousands of workers laid off during the past decade of recession if it
maintains the pace of recovery, but it was a long way off before the economy
could start creating fresh employment opportunities, the government has
said.

According to a government policy document – Government Work Programme (GWP),
March 2010 – the government was looking at various intervention measures to
try and stimulate rapid recovery and growth in key sectors such as tourism,
mining and manufacturing to try and create more jobs in a country where
unemployment is above 80 percent.

Prime Minister Morgan Tsvangirai is set to present the policy document to
Parliament next week.

"With formal unemployment still hovering at around 80 percent, restoring old
jobs as well as creating employment opportunities remains top on the agenda
of this government," the 24-page document states.

"Hope for this to be achieved is rekindled from increasing industrial and
manufacturing capacity utilisation that, in some cases has begun to breach
the 40 percent levels and beyond. If this trend continues on this upward
trajectory, then most of the lost jobs will be recovered in the medium term.

“However, even in the long term, economic recovery and employment creation
is unlikely to absorb the rapidly growing population. The GWP is therefore
thinking outside the box in the areas such as mining, tourism and
manufacturing in order to make a sizeable positive dent."

The GWP, which was adopted by Cabinet last week states that increasing
production in mining and tourism will be critical in driving economic
growth, while unviable and unproductive state enterprises will be reformed.

The government, which is set to launch a new economic blueprint next month,
says the GWP spells out agreed options, aimed at responding to political,
social and economic challenges facing the country.

Once a model African economy Zimbabwe is reeling from the effects of a
decade-long economic meltdown that is marked by record unemployment and
deepening poverty partly blamed on company closures as the economy continued
to shrink.

A power-sharing government formed last year between President Robert Mugabe
and Tsvangirai saw the southern African nation post its first economic
growth last year after the coalition government implemented measures,
including the adoption of multiple currencies that doused hyperinflation.

The measures also improved availability of basic goods in shops although the
country faces shortages of the main staple maize crop due to a poor
agriculture season.
But the government remains hamstrung by its failure to persuade key Western
donors to loosen their purse strings. The donors are demanding that the
government carry out far reaching political and media reforms and bring an
end to farm invasions before they consider releasing any money. -- ZimOnline

 

Zimbabweans Debate Youth Service Reform as Nation Moves Toward New Elections

http://www1.voanews.com

Training at the so-called Border Gezi camps named for a deceased youth
minister is said to have been halted - but reports say youth militia
continue to be deployed ahead of the public outreach phase of constitutional
revision

Sandra Nyaira | Washington 25 March 2010

While Zimbabwe's unity government principals and their negotiators haggle
over outstanding issues undermining power-sharing, others are urging reform
of the national youth service program, which many say was hijacked by
ZANU-PF and turned into a youth militia that was deeply implicated in 2008
political violence.

Training at the so-called Border Gezi camps named for a deceased youth
minister is said to have been halted. But reports say youth militia continue
to be deployed ahead of the public outreach phase of constitutional revision
and some fear a resurgence of political violence.

ZANU-PF officials have dismissed such concerns.

For a closer look at youth program reform proposals, VOA Studio 7 reporter
Sandra Nyaira sought the views of former education minister Fay Chung,
chairwoman of the Envision Zimbabwe Women's Trust, and ZANU-PF Youth League
Secretary Lesley Ncube.

Chung, whose organization seeks to rehabilitate youth caught up in political
violence, said youth provisions in the 2008 Global Political Agreement for
power sharing represent an opportunity for Zimbabwe to make sure that its
youth are not politically exploited.

Ncube insisted that ZANU-PF has not deployed youth militia. He said all
parties to the GPA are consulting on a new Zimbabwe National Youth Service.

Zimbabwe's Fractious Governing Parties Resume Talks Following Zuma Intervention

http://www1.voanews.com

The long-running talks resumed behind closed doors late Thursday afternoon
and continued into the evening after Finance Minister Tendai Biti, shaken up
in a highway crash Tuesday, joined the discussions

Patience Rusere | Washington 25 March 2010

Negotiators for the three parties in Zimbabwe's troubled power-sharing
government resumed talks Thursday with a deadline Monday to conclude
discussions and another deadline March 31 report to regional mediator and
South African President Jacob Zuma on their positions.

The long-running talks resumed behind closed doors late Thursday afternoon
and continued into the evening after Finance Minister Tendai Biti, shaken up
in a highway crash Tuesday, joined the discussions as chief negotiator for
the Movement for Democratic Change formation headed by prime minister Morgan
Tsvangirai.

No word emerged as to progress - or lack of it.

Meanwhile the state-controlled Herald newspaper, strongly pro-ZANU-PF,
quoted party Information Secretary Rugare Gumbo as saying Justice Minister
Patrick Chinamasa, ZANU-PF's chief negotiator, had declared that no
agreements were reached during Mr. Zuma's mediation visit to Harare last
week.

Mr. Zuma announced a "package of measures" that had been agreed through his
mediation, and political sources said he secured undertakings from the three
parties for the appointment of MDC provincial governors and for a change at
the top at the Reserve Bank of Zimbabwe or the Office of the Attorney
General, among other items.

Edwin Mushoriwa, spokesman for the MDC formation led by Deputy Prime
Minister Arthur Mutambara, said he hoped the latest talks would deliver
results.

Meanwhile, President Zuma has again urged the West to lift sanctions against
President Robert Mugabe and his closest political associates and supporters,
saying they are undermining the Harare unity government.

Addressing the South African Parliament in Cape Town, Mr. Zuma said the
sanctions are dividing the partners in government and that all members of
the government should be treated the same.

South African-based political analyst Ozias Tungwarara concurred with
President Zuma, saying that lifting the sanctions would promote progress in
Harare.

African Media Initiative a partner for economic development

http://www.theindependent.co.zw/

Thursday, 25 March 2010 18:49

FOR too long news about and for Africans has come predominantly from
outsiders. International media portrayals of Africans have often been
unrecognisable to Africans themselves. Africa's journalists have tried -
with increasing success - to present a more accurate and nuanced picture of
the continent and its myriad peoples and cultures.

They have strived at the same time to hold their own governments accountable
by exposing corruption and airing views of the opposition, civil society,
the poor and the marginalised.

News organisations around the continent have played an indispensable role in
Africa's transition to more open, responsive political and economic systems,
as well as the empowerment of the powerless, especially women - goals the
African leaders themselves have set and deemed critical to democratic
development.

Without free and independent media, Africa would be unable to monitor
progress towards - much less achieve - its agreed goals in health, education
or economic growth.

But Africa's media continue to face intense political pressures and other
external obstacles.  In too many countries, news organisations are
threatened by criminal prosecutions, arbitrary closures, and other assaults
on media freedom.

The economic viability of Africa's media enterprises - crucial to their
independence and professionalism - is also at risk.

Media across the continent have been hampered by insufficient capital, a
lack of market data, inconsistent and often onerous regulatory regimes, and
the inherent difficulties of operating in less developed markets.

The digital revolution in broadband and mobile phones offers great
possibilities for growth, but demands major new investments and bold new
business models.

In the wealthiest nations of the world, many of the best-established media
organisations face grave financial problems.  In Africa these challenges are
even more acute.

Yet at the same time, thanks to the emergence and development of the new
information and communication technologies, the continent is a vast
laboratory for global media innovation, with unrivalled room for further
expansion into underserved populations.

Many projects are underway on the continent to help Africa's independent
media grow and build on its recent successes.  And now there is an
unprecedented African-led effort to support all those endeavours, and to
create new initiatives that will serve as a champion and driver of
transformational changes in Africa's media.

The African Media Initiative (AMI), backed by proprietors, hundreds of media
executives, journalists, academics and other experts from across the
continent, takes a practical, holistic approach to these challenges, with a
shared commitment to professional ethics and public service.

Headquartered in Nairobi, Kenya AMI last week announced the appointment of
Senegalese national Amadou Mahtar Ba as CEO, with Johannesburg-based
Shehnilla Mohamed as his deputy.

Through AMI  we hope to marshal pan-African industry support for legal and
economic reforms that are needed for media to operate freely and
successfully.  AMI and its partners will also seek new financing tools for
the African media sector as well as training assistance in management and
technology to complement existing programmes focused on journalism skills.

We will work on the sector's behalf with the major African intergovernmental
institutions - the AU, the ECA and regional bodies like Ecowas, Sadc and the
EAC - to secure policy support for a sector that is essential to Africa's
economic and social development. AMI will also engage with the donor
community: International support for media development has been helpful, but
could even have greater impact through the kind of coordination AMI hopes to
offer.

AMI's central mission is to ensure that media development projects in Africa
are driven by the needs and informed by the knowledge of the African media
practitioners themselves.

This is a critical moment for Africa.  Throughout the continent, the long
night of wars that have killed Africa's people, as well as their hopes and
dreams, is not nearing an end.  Increasingly, countries are taking real
steps towards democracy, building societies where citizens have a voice in
how they are governed, and in how they live their lives and raise their
children.

This historic change requires free and effective media, the one instrument
that democratic societies all over the world rely on to make it possible for
citizens to meaningfully participate in national political life.

AMI and its partners and allies in civil society and journalism will need
still more support, ideas and energy from media professionals and those on
whose behalf we serve as we pursue this shared quest for greater media
independence and effectiveness - and, ultimately, for the long-term
development of a continent that will stand tall as the Mother of us All.

Trevor Ncube and Charlayne Hunter-Gault are co-chairs of the African Media
Initiative.

By Trevor Ncube/ Charlayne Hunter-Gault
 

Hwange coal pit set to run out by 2012

http://www.theindependent.co.zw/

Thursday, 25 March 2010 18:43

COAL reserves at Hwange's dragline pit, which supplies the country's largest
thermal power station, will run out by 2012 -- a development that might
force government to import the commodity to avert worsening an already dire
power crisis. According to documents seen by businessdigest, the dragline
could have run out by the end of last year had the company been operating at
100%.
The documents also showed that the company has been operating at between 50%
and 60% for nearly two years.
Hwange Colliery Company has three operational mines namely JKL Opencast
(widely known as the dragline pit), Chaba Opencast and 3 Main underground
mine.
An expert report said reserves at Chaba and 3 Main mine, which produce
industrial coal used in metallurgical industries,  were projected to last
until 2020, although Hwange says 2027.
Contacted for comment on Tuesday, Hwange Colliery Company public relations
manager Burzil Dube said coal reserves at the dragline pit "are expected to
have been depleted within the next two years while those at Chaba and 3 Main
are to last for the next 17 years (2027)".
"This leaves the colliery company with a challenge as far as the long term
survival of the organisation is concerned. We are currently operating at 60%
of our capacity which is also subject to our customers' demand," he said.
To avoid plunging the country into further darkness, government has to give
mining concessions to other players so that they open up new mines to
replace the depleted ones in order to boost production before the mine runs
out.
Dube said: "applications for new mining concessions around the colliery were
submitted to the Ministry of Mines and Mining Development and the licences
are yet to be granted."
Workers at Hwange said the future of coal mining in Zimbabwe was currently
with Clidder Minerals because Hwange Colliery could have operated below 30%
had the company not been supplying it with coal.
Sources said Clidder Minerals' contract with Hwange Colliery ends in
September this year.
"Clidder Minerals was contracted three years ago by the colliery company to
mine the product (coal) whose quantity or volume is subject to our
requirements and needs," Dube said. "As you are aware that the world over
(including Zimbabwe) most mining houses outsource or contract their
operations for various activities as part of efforts to capitalise on their
business and the colliery is no exception."
The sources said Clidder Minerals has been able to deliver all the
quantities that Hwange colliery requested.
"The engagement of Clidder Minerals whose contract is ending by September
this year was to enable or give the colliery company an opportunity to
capitalise its business ventures," Dube said.
He said the commodity was sold to the local market which is very depressed
as most industries were not operating at full capacity.
The global consumption of coal is expected to increase by 4% annually
between 2010 and 2030 in line with the rising global demand for energy.
"The company's main thrust is to intensify the export drive," Dube said.
Hwange sells Coke peas for US$65/tonne, Foundry coke between
US$320-350/tonne, Met Coke US$350, Coke breeze US$320/tonne and breeze US$55
per tonne to various markets.
"Lucrative deals have been clinched with firms based in Belgium, India and
South Africa," said Dube without giving figures of how much the company has
made from the deals. "Some of our longstanding customers are companies and
organisations in the Democratic Republic of Congo and Zambia. Markets have
also recently been found in Malawi and Mozambique but we are however facing
logistical challenges on exporting the product."
Zimbabwe's coal mining industry remains unbalanced, with rising coal demand
on one hand and constrained supply sources on the other.

Paul Nyakazeya

BEE rules set insurance sector investment back

http://www.theindependent.co.zw/

Thursday, 25 March 2010 18:36

THE controversial indigenisation and empowerment laws have adversely
affected insurance companies' investment portfolios on the Zimbabwe Stock
Exchange, with almost all making losses in investment income  (ZSE) since
the regulations were gazetted. Year-end financial results released by
insurance companies this week show that while the sector is emerging from a
decade long recession following liberalisation of the financial services
sector and the introduction of the multi-currency payment system,
empowerment regulations forcing foreign owned companies to cede at least a
51% stake to locals have set back insurance companies' investment plans.
Insurance companies, which invest on behalf of policyholders, are the
largest institutional investors on the ZSE.
A February trading update report accompanying Fidelity Life Assurance
financial results shows that the company made a US$73 000 loss in investment
income on the bourse as it retreated after the regulations were announced on
January 29.
Investment income is capital derived from premiums which insurance companies
invest on equities before paying out matured policies.
Fidelity Life managing director Simon Chapereka on Wednesday told media and
analysts that the regulations were affecting the value of the company's
investment portfolio.
"We have been affected by what has been happening to the country,
particularly the issues relating to the political environment and the
indigenisation regulations," Chapereka said. "Basically we have incurred a
$73 000 loss in investment income up to February."
Fidelity, Chapereka said, did not underwrite any new first year premiums but
managed to reinstate 12 000 policies. Statistics show that the insurance
company had close to 300 000 policies at peak in 2000.
NicozDiamond Insurance, one of Zimbabwe's leading insurance companies, had a
similar story to tell.
NicozDiamond, which posted US$1,6 million profit after tax, had its ZSE
investments affected by the regulations. The company has interests in
blue-chip stocks on the ZSE.
Grace Muradzikwa, NicozDiamond MD, said the group made $593 161 loss in
February for its investment income after the regulations were gazetted.
She however said the company, currently accounting for an estimated 20%
market share, would push its market share to 25%.
"Because of what is happening in the country we have decided to take a step
back in terms of business growth and recruitment," Muradzikwa said.
Rival insurance company Zimnat Lion a firm owned by diversified investment
company TA Holdings is also keenly following the indigenisation debate
despite injecting US$4 million to local insurance investments that include
Zimnat Lion, Zimnat Life and GrandRe.
TA recorded a US$1,4 million loss on  the back of poor operations of its
Zimbabwe investments. The group has business interests in South Africa,
Botswana and Nigeria.
Bothwell Nyajeka, TA group chief finance officer said Zimnat Lion has
underwritten close to half of the entire premiums made last year.
"Insurance companies are developing new packages, especially individual life
products," he said.
"Just this year alone, Zimnat Lion has written premiums of $4,3 million,
against $9,6 million for the whole of 2009. Zimnat Life has recorded $748
000 versus $3 million for the whole of 2009, while GrandRe has written $723
000 compared to $1,9 million over 2009."
Commenting on insurance investments under the TA group, New Africa
Securities said the group could register growth buoyed by its Botswana
operations.
"The group's insurance business is expected to continue being driven by
Botswana Insurance Company Ltd (BIC) which recorded an underwriting profit
of US$ 3,573,158 while the Uganda and Zimbabwe operations continue seeking
firm footing," reads the stockbrokers' commentary.
"Local insurance business is not expected to show any exceptional
performance soon as the population's expenditures are currently focused on
non discretionary and capital expenditures."
Chido Chakanyuka, NMB Corporate Finance and Advisory manager, however says
business could this year grow for local insurance companies.
"Insurance business is expected to pick up significantly because of the very
high risk of loss (asset replacement) as a result of dealing in hard
currencies," said Chakanyuka.
He, however pointed out that tight liquidity on the market could slow down
the rate of recovery.
"Insurance is becoming a must rather  than an option and banks are becoming
more particular about insurance cover on the assets of companies that they
lend money to," he said.

Bernard Mpofu

ZITF hopes to unlock investment potential

http://www.theindependent.co.zw/

Thursday, 25 March 2010 18:01

THE Zimbabwe International Trade Fair (ZITF) is one of the biggest
exhibitions in the southern African region as it brings together businesses
from across the board. This year's theme of the five-day fair which begins
on April 20 is "Unlocking investment potential".  Our reporter Fortune
Dlamini-Moyo this week caught up with the ZITF general manager Daniel
Chigaru to get an insight into this year's exhibition. Below are excerpts of
the interview.

Dlamini-Moyo: What is the thought behind this year's theme?

Chigaru: With Zimbabwe having turned a new leaf at the inception of the
government of national unity, there is a lot of hype about the turnaround of
the economy. We are expecting a lot of investments into the country.
Therefore, this year's theme is about unlocking the potential that Zimbabwe
has, as the ZITF is a forum that brings together diverse backgrounds, policy
makers and foreigners. So we are saying to ourselves, "what's holding us
back as Zimbabwe?"

Dlamini-Moyo: What will make ZITF different this year?

Chigaru: There is no exhibition that can be the same as another. Last year's
exhibition was held at the onset of the economy's turnaround and most
companies were trading at zero capacity. This year, business has had more
trading time and capacity is growing with the feeling that the economy is
improving. Also, this year is different due to the political and social
stability that has attracted interest from outside the country. There is
more foreign participation this year as we aim to restore the international
flair of the exhibition.

Dlamini-Moyo: There has been a general feeling that ZITF has over the years
been used as a public relations forum for government. How are you planning
to refocus so as to use the exhibition to attract investments, which is its
core business?

Chigaru: The ZITF serves the government of the day, regardless of which
government is in place, because it reflects what is happening in the country
at that particular time. Exhibitions in an economy will always mirror what
is happening at that time. One aspect that makes the exhibition into a
political issue is the official opening ceremony, which is declared a state
occasion and falls under the director of state occasions. This event then
tends to overshadow the exhibition, but it is only one out of the five days,
so our aim is still achieved.

Dlamini-Moyo: What can you say have been ZITF's major achievements over the
years?

Chigaru: Over the years, we have managed to keep the local, regional and
international business community informed of what is happening in the
country. ZITF is still renowned as a key exhibition in central-southern
Africa as it is a gateway for businesses in the world and has spearheaded
industrial development in Africa.

Dlamini-Moyo: There has been a proliferation of small and medium enterprises
(SMEs) exhibiting at ZITF over the years, and yet ZITF is meant for big
businesses. Can you comment on that?

Chigaru: Zimbabwe's economy has indigenised with the informal sector
becoming more formal. We are encouraging these small and upcoming businesses
to be part of the exhibition, as a starting point to go to other
exhibitions. Therefore, the Zimbabwean economy has evolved.

Dlamini-Moyo: How much space have you sold for this year's edition?

Chigaru: Of the 55 000 square metres that we have, 94,4% of that space has
been taken and we are positive that by the time the exhibition begins, all
the space will be taken.

Dlamini-Moyo: How many exhibitors are you expecting?

Chigaru: 484 exhibitors have confirmed

Dlamini-Moyo: How many of them are foreign exhibitors?

Chigaru: There are 31 foreign exhibitors representing 14 countries which
include Botswana, Ghana, India, Iran, Indonesia, Italy, China, Malawi,
Mozambique, Namibia, South Africa, Tanzania, Turkey and Zambia. We are also
expecting visitors from Germany, India, South Africa and the United Kingdom.
 

AAG branch defies directive

http://www.theindependent.co.zw/

Thursday, 25 March 2010 18:04

THE Bulawayo branch of the Affirmative Action Group (AAG) has allegedly
defied a directive from its leadership to provide a detailed inventory of
foreign-owned companies in the city in preparation for takeover. This, AAG
sources in Bulawayo said, has caused a rift within the empowerment lobby on
how the controversial indigenisation policy should be implemented.
However, AAG president Supa Mandiwandzira denied ever issuing such a
directive, saying those giving such orders were "misguided elements bent on
tarnishing AAG's image" and were trying to instil fear in the business
community of Bulawayo.
He said there was no rift on the implementation of the indigenisation
regulations gazetted by government in January.
Bulawayo-based members of the AAG told the businessdigest this week that
although they supported the empowerment drive, they have refused to be used.
Affiliate members of the organisation said the directive had a hidden
agenda.
AAG former president Matson Hlalo on Tuesday said: "Empowerment is a noble
cause which should be supported but we refuse to be used as fronts for
people already empowered. Why should people in Harare instruct us to come up
with an inventory?"
However, Mandiwanzira denied this saying: "There is absolutely no truth in
what you are suggesting. No one at head office has requested any list
because no one needs that list. In fact, the AAG is operating full throttle,
firing from all cylinders and the unity in the organisation is
unquestionable. We are focused and would not waste time fighting each
 other."
Hlalo said past indigenisation moves empowered a clique of the powerful
elite. He said there was no indication that the pattern would be different
this time around.
AAG's vice-president based in Bulawayo, Sam Ncube, on Wednesday told
businessdigest that there is nothing wrong with identifying companies to be
indigenised in the region.
"Personally there is nothing wrong with identifying companies in Bulawayo
and the region, but what I can say is that the organisation has not set up a
fund to invest in companies in the event of a take over," said Ncube.
"Currently, banks are not giving out substantial loans and where would we
get the money to keep the companies operating?"
There was panic within the business community in the city as news spread
that the AAG was going to identify companies in preparation for takeover.
Ncube said "misguided elements" purporting to be AAG leaders were spreading
alarming information within the business community.
The indigenisation regulations, whose aim government said was to empower the
perennially disadvantaged indigenous black population through running a
controlling stake in companies, are set to be amended, press reports said
this week.
Late last year, the AAG, which has
strong links with Zanu PF, drew sharp
criticism from the German embassy after it threatened to close
Bonn-headquartered international courier services firm DHL if it did not
appoint a Zimbabwean to head its local operation.

Nqobile Bhebhe

Media and transition: reporting beyond the crisis

http://www.theindependent.co.zw/

Thursday, 25 March 2010 20:48

IT is said that life is like a book and that each new day depicts the
opening of a new page in our lives.  Taken against the backdrop of this
anecdote, the topic and subject at hand suggests an acknowledgement of
Zimbabwe's socio-economic and political crisis.

Viewed differently it also suggests that this crisis will come to pass
through collective bridge-building efforts of which the media has a role to
play.

It would, however, be a gross irresponsibility on the part of the media or
any journalist worth his/her salt to hurriedly gloss over the early pages of
our history and expect to meaningfully report and contribute to a new
Zimbabwe - post the acknowledged crisis.

This call to national duty demands the media to be well versed and
knowledgeable of the historical transgressions, sins of omission or
commission that led to the manifestation of the crisis in its past or
present form and content.

It is poignant to note that the crisis or conflict visa-a-vis the
socio-economic slump of the past 10 years was not thrust upon us from outer
space. Its causal effects were the result of certain decisions and actions
taken by those entrusted with power and by us Zimbabweans as a proxy
collective.

The past informs the present

The first port of call entails acknowledging and identifying the background
to the crisis - the issues at stake and the critical players. Equally
important is the need to reflect on how these issues were dealt with. This
will help in shedding light on the issues that need to be addressed towards
a new socio-economic and political dispensation.

I would posit the  background into the following transit eras as  critical
to how the media can play a meaningful role towards limiting and averting
new causes of conflict.

=Pre-Independence struggle and events leading to the Lancaster House
Conference of 1979.
=Post-Independence policy and conflict resolution mechanism vis-à-vis
provisions of the Lancaster House agreement and the quest for a one-party
Marxist-Leninist state and the contestations around the issue.
=Deployment of the army into the Matabeleland and Midlands regions which led
to the signing of the Unity Accord between Zanu PF and Zapu in 1987.
=The economic decline and introduction of IMF/World Bank Economic Structural
Adjustment Programme (Esap).
=Multi-party democracy and the emergence of the Movement for Democratic
Change (MDC) - polarisation and election violence
=The impact of the land invasions/acquisitions on Zimbabwe's socio-economic
and political fabric.
=Events leading to the signing of the Global Political Agreement on
September 15 2008.
=Constitution making process

The afore-mentioned transitional eras while not necessarily exhaustive
should inform the content and shape of editorial conference debates and
analyses on how best to report beyond the crisis.

Intricate or sensitive as they may be, it is the duty of the journalist to
dissect and simplify these issues in a manner that will not ignite and
engender residual or existing hostilities. Volumes of literature abound on
these issues.  Extensive research should thus be conducted on how best to
proceed and move the nation forward in that regard.

Global political agreement

In my view the understanding and the template for how best to deal with the
issues at stake despite its flaws and deficiencies has been made easy for
the media through the global political agreement (GPA).
The parties to the agreement among other issues state:

=Concern about the recent challenges that we have faced as a country and the
multiple threats to the wellbeing of our people and, therefore, determined
to resolve these permanently.
=Dedicating ourselves to putting an end to the polarisation, divisions,
conflict and intolerance that has characterised Zimbabwe politics and
society in recent times.
=Determined to build a society free of violence, fear, intimidation, hatred,
patronage, corruption and founded on justice, fairness, openness,
transparency, dignity and equality.
=Recognising and accepting that the land question has been at the core of
the contestation in Zimbabwe and acknowledging the centrality of issues
relating to the rule of law, respect for human rights, democracy and
governance.

The GPA, establishment of the inclusive government and the current
stop-start-constitution making process and the underpinning intricate links
to events of the past inform the media on how to report the situation as it
unfolds in the context of present day Zimbabwe.

Role of the media

The fact that the inclusive government recognises these conflicts and the
alienation of the populace is in itself a step in the right direction. That
acknowledgment offers the media an entry point in so far as following
through the government's pledges to correct the injustices of the past.

In dealing with these issues the media should always be mindful of the fact
that victims of historical injustices in conflict-torn situations are
naturally prone to seek their own forms of retribution.

The media should therefore remain on high alert and do everything within its
professional mandate of setting the agenda and shaping opinions and views by
creating platforms for a multiplicity of views on the issues at hand. The
voices of the victims should also be equally heard.

The role of the media is to identify and define the multiple threats to the
security and wellbeing of the people (the people should speak on these
issues). For instance in tackling the issue of ending polarisation,
divisions, conflict etc, the media can draw from experiences elsewhere in
the region, South Africa, Mozambique, Burundi and Angola, among other
countries.

In South Africa victims of apartheid were able to raise their voices under
the new political arrangement through the single narrative that: Apartheid
was a crime against humanity and its inequalities will not be repeated.

The aim of course is to avert regression and eruption of conflict which
would obviously be costly in terms of the current efforts to rebuild the
country, and erode confidence in the inclusive government regionally and
internationally. Thus the media should devise the formulas and set the
agenda that will steer the nation in a direction that can lead to peace,
reconciliation and nation building.

Reportage should be aimed at pricking the collective consciences of those in
power and even more importantly their supporters and the generality of
Zimbabweans. The onus therefore is on the media to define and pitch that
single narrative.

Suffice to say it is the media's responsibility to influence the course of
events towards a secure future for Zimbabwe. This can be achieved through an
unquenchable quest for the highest professional and ethical standards.

This will entail extensive research, sober reflections, planning,
organisation and optimum utilisation of the resources available.

Resources should be garnered towards the search for new voices and ideas.
Reporting beyond the crisis requires journalism that is sensitive to hate
speech, xenophobia, tribalism, gender discrimination, racism and sexism. In
that regard the media and journalists at large should eschew the narrow and
parochial interests of those who pursue power for its abusive sake.

The media's role is that of serving the people with the highest sensitivity,
integrity and credibility and affording the citizens space and voices that
contribute on how best to deal with the issues at stake.

To excel in that regard, the media obviously needs the space to fulfil its
professional duties.

The media, relevant interest groups and the citizens at large should
therefore not relent in the agitation  for the repeal of repressive media
legislation and the need for a constitutional provision that explicitly
guarantees media freedom and the right to access to information held by both
private and public bodies.

This article is an abridged version of a paper presented by Zimbabwean
journalist Nyasha Nyakunu at a workshop held in Harare on the role of the
media in reporting on nations in transition.