The ZIMBABWE Situation Our thoughts and prayers are with Zimbabwe
- may peace, truth and justice prevail.

Back to Index

Back to the Top
Back to Index

FinGaz

      ZANU PF faces split

      Nelson Banya, Njabulo Ncube and Felix Njini
      11/25/2004 7:10:03 AM (GMT +2)

      A SERIOUS rift has emerged in ZANU PF following the nomination of
Joyce Mujuru as the party's vice-president and second secretary at the
weekend ahead of Emmerson Mnangagwa, who has long been touted as President
Robert Mugabe's heir apparent.

      Impeccable party sources said following this development, which
touched off internal political battling, a section of the ruling party which
backed the ZANU PF secretary for administration is agitating for a splinter
political group, citing a largely expected purge hinted at by President
Mugabe in the aftermath of the controversy-ridden nomination process.
      They said only the spurned Mnangagwa himself, who has refused to
actively support the idea to break off from ZANU PF like former secretary
general Edgar Tekere sensationally did with his Zimbabwe Unity Movement in
1989, stood in the way of the plans mooted by his disgruntled lieutenants
that include Cabinet ministers who are also non-constituency Members of
Parliament. President Mugabe, who under the current Constitution can choose
up to 30 non-constituency members, appointed them to Parliament.
      Prior to the current discord that has accentuated the internal
disputes in the ruling party, President Mugabe had diligently kept the ZANU
PF pieces together since the 1987 unity accord with PF ZAPU, but his
outburst on Monday and his support for a woman candidate has agitated
Mnangagwa's camp.
      President Mugabe, apparently miffed at reports that John Bredenkamp, a
controversial international investor rated the United Kingdom's 33rd richest
citizen last year, had thrown his weight behind Mnangagwa's campaign in the
run-up to Sunday's nominations, was this week in a fighting mood, accusing
unnamed party leaders of being divisive. This sources indicated that matters
were going to get even dirtier before the ZANU PF congress, which starts
next week in the capital.
      Bredenkamp, who reportedly holds Zimbabwean and Dutch passports, has
in the past been linked with the ZANU PF government and was implicated in a
United Nations report on the illegal exploitation of natural resources in
the Democratic Republic of the Congo (DRC).
      The sources said President Mugabe was told of what has come to be
known in intelligence circles as the Tsholotsho Declaration - Mnangagwa's
endorsement by the key Matabeleland provinces- as well as an alleged $7
billion Bredenkamp largesse to the Mnangagwa campaign.
      The super-rich tycoon is also reported to have laid out his private
jet to Mnangagwa's cause, charges which have been vehemently refuted by ZANU
PF insiders aligned to the embattled Speaker of Parliament. While they
admitted having used Bredenkamp's private jet, they instead claimed that
they had hired the plane for a mid-week rally in Tsholotsho.
      President Mugabe said over the weekend that some ruling party supremos
eyeing top posts at the December congress were supping with "white
capitalists", in apparent veiled reference to party officials who flew to
the rally held in Tsholotsho last Thursday aboard the Bredenkamp jet.
      The rally, attended by ministers Jonathan Moyo and Patrick Chinamasa,
among others, was also supposed to be attended by Mnangagwa as guest of
honour. The two ministers are said to belong to the Speaker's faction.
Mnangagwa however failed to attend the rally because of an emergency ZANU PF
politburo meeting convened that day.
      "Apparently, the President received intelligence to the effect that a
jet belonging to John Bredenkamp was used to go to Tsholotsho, and that a
ridiculous figure of $7 billion was received from him to buy support from
provincial executives ahead of the nominations on Sunday.
      "That, of course, is flawed intelligence driven by people with
ulterior motives," he said, adding that the jet had been hired from
Bredenkamp.
      As tempers continue to run high in the ruling party, it has emerged
that, starting tomorrow when President Mugabe descends on Bulawayo, whose
ZANU PF provincial leadership defied a politburo directive to nominate a
female vice-president, a full-scale purge - which could also claim the scalp
of Mnangagwa, among others - would be executed.
      Results in the Bulawayo and Matabeleland South nominations have been
nullified on the grounds that the former province did not heed a politburo
directive to nominate a female candidate for the vice-presidency and that a
suspended provincial chairman, Lloyd Siyoka, had presided over proceedings
at the latter.
      Both provinces nominated Mnangagwa for the vice-presidency and, in
Bulawayo, stalwarts Dumiso Dabengwa and Sikhanyiso Ndlovu failed to secure
central committee nominations, to President Mugabe's further angst.
Matabeleland North governor Obert Mpofu failed in his bid for a central
committee seat.
      Sources said President Mugabe, who brewed a shocker by openly casting
his lot with Mujuru at the expense of Mnangagwa - a trusted lieutenant for
decades - has a task on his hands to manage the intricate tribal balance
that has always been central to ZANU PF politics, at a time when the
emergence of a Zezuru triumvirate in the party's presidium has triggered
deep disenchantment.
      Like President Mugabe and Mujuru, the other vice-president, Joseph
Msika, is a Zezuru who rose to the position by virtue of being the most
senior ex-ZAPU official after the death of former vice-president Joshua
Nkomo.
      Party sources said President Mugabe, who promised to "expose" some
ZANU PF leaders bent on dividing the party, was enraged by voting patterns
in provinces such as Bulawayo that showed support for Mnangagwa, in open
defiance of not only the politburo edict, but also the President's wish as
announced in one of his familiar impromptu addresses at Harare International
Airport on Saturday after a trip to Tanzania.
      The sources said Rugare Gumbo, who lost the Midlands central committee
nomination to Joram Gumbo, was being positioned to ultimately become the
ruling party's most senior politician in the province.

Back to the Top
Back to Index

FinGaz

      How Mujuru won the vice-presidency

      Staff Reporter
      11/25/2004 7:10:55 AM (GMT +2)

      AN eleventh-hour dramatic and intriguing battle of wits by rival ZANU
PF factions tilted the scales in favour of Water Resources and
Infrastructure Development Minister Joyce Mujuru, who against all odds
landed the vice-presidency ahead of Emmerson Mnangagwa, the party's
secretary for administration.

      The Financial Gazette can reveal that it was the political
gamesmanship by the Mujuru camp which claimed the Manicaland and Mashonaland
West provinces from going the other way that made the difference to a fierce
tussle for the vice-president's post, which has now left Mnangagwa,
previously believed to be President Robert Mugabe's heir apparent, clutching
at straws to save his political life.
      Mujuru's nomination, which to the delight of Mnangagwa's vocal
internal foes completes the critical encirclement around the Speaker of
Parliament, came as pressure rose inexorably for the male-dominated ZANU PF
high echelon to elevate women through affirmative action and prove that the
party's earlier decision to have a woman vice-president following the death
of Joshua Nkomo was not just "paper reforms".
      As of Friday last week, Mnangagwa, whose political future now
increasingly appears perilous, literally had six provinces in his bag -
Mashonaland West chaired by flamboyant ZANU PF legislator Philip Chiyangwa
and Manicaland chaired by Mike Madiro included. He looked set to romp to
victory. But this was not to be as the two provinces later defected at the
eleventh hour.
      Added to the Midlands, Masvingo, Bulawayo and Matabeleland South, the
two provinces could have swung the vote in favour of the ruling party's
secretary for administration, who might as well kiss goodbye his chances of
landing a post in the presidium.
      Sources said Mujuru's camp was led by her husband, retired army
general Solomon Mujuru. It has been suggested but not denied that there is
no love lost between the retired army chief and Mnangagwa.
      The bad blood between the two came to the attention of the public
after Mujuru's failed attempt to acquire a strategic stake in the
Kwe-kwe-based ZIMASCO, amid allegations that Mnangagwa threw spanners into
the stillborn deal.
      The other members in Mujuru's camp are former intelligence officers,
Mashonaland East provincial chairman Ray Kaukonde and ZANU PF youth league
chairman Savious Kasukuwere. The camp pulled a winner by roping in Madiro
and Chiyangwa to their side.As the battle of wits reached a crescendo, the
Mujuru camp had to

      draw on its wealth of experience in the military by setting up a
command centre and sub-command centres in each of the country's 10 political
provinces to rally the campaign machinery in favour of Mujuru, who becomes
Zimbabwe's first woman vice-president.
      "We deliberately started our campaign late so that we could read the
other side's foot prints and when we got their strategy, which was basically
to catapult Mnangagwa and Lesabe (Tenjiwe) to the vice-presidents though the
six provinces - Mashonaland West, Manicaland, Midlands, Masvingo, Bulawayo,
Matabeleland South - we had to go on an overdrive.
      "Our strategy was simple; we had to go back to our traditional voting
patterns. Traditionally, Mashonaland West and the other Mashonaland
Provinces - Mashonaland East, Mashonaland Central and Harare - stand
together when it comes to voting and we had to fight to get the lost vote,"
said a source within the Mujuru camp.
      The source said they had to bring in Manicaland as well, which
traditionally votes together with Mashonaland Provinces and because of the
Unity Accord signed between ZANU PF and ZAPU, then led by the late
vice-president Joshua Nkomo, there were rest assured of a vote from the
Matabeleland provinces.
      And through the Unity Accord, the Mujuru camp rallied senior former
ZAPU chiefs to swing on province in Mujuru's favour, added the source.
      Mnangagwa's camp, according to sources, comprised of July Moyo,
Justice Minister Patrick Chinamasa, Information Minister Jonathan Moyo and
retired colonel Daniel Shumba of the TeleAccess fame.
      Contacted this week for comment, Kaukonde said there was no need to
dwell in the past.
      "What is important now is for those who have lost and the winners to
close ranks for the betterment of ZANU PF and the country. We are the future
leaders and there is no need for us to rush and fight for the position since
our time will come.
      "Look at President Mugabe, he went to school, taught, detained for 15
years because of the struggle, led the struggle and now Zimbabwe. We also
have to be patient. We will get there as long as we are guided by the
principles of the party," said Kaukonde.

Back to the Top
Back to Index

FinGaz

      Govt crafts bill to legalise Mawere empire takeover

      Felix Njini
      11/25/2004 7:12:09 AM (GMT +2)

      THE government, drooling over Mutumwa Mawere's collapsing business
empire, has crafted a Bill which seeks to legalise the takeover of the
fugitive business tycoon's empire.

      The government, which is seeking the extradition of the embattled
mogul over alleged exchange control violations, had tried to inherit Mawere's
mining giant (SMM Holdings), saying it wanted to prevent its collapse and
save jobs.
      Analysts said the planned takeover, which is also targeting other
businesses owned by SMM, had run into legal complexities, hence the current
move to fine-tune the plan.
      Named the Reconstruction of State Indebted Insolvent Companies the
Bill, which passed the second reading stage last week, will give
administrators of state-indebted companies excessive powers to enable them
to forfeit to the state shares or securities in a reconstructed company.
      Under the state-indebted companies, relevant ministries can issue a
reconstruction order encompassing associate companies and non-associate
companies which benefited from the public loan or guarantee.
      The Bill will also give government powers to issue reconstruction
orders in "respect of any bank and other financial institutions that are
under curatorship".
      But this could only come after the relevant ministry is satisfied that
management running the financial institution was doing so "fraudulently,
recklessly or with gross negligence and that public funds have been or will
need to be expended to minimise risk to the financial sector in Zimbabwe".
      About seven financial institutions have been placed under curatorship
by the Reserve Bank of Zimbabwe following a crackdown on imprudent banking
practices, which consigned most indigenous banks to the burial grounds of
corporate failures.
      The Bill, if approved, could also give administrators powers to cancel
shares held by any investors in a company under reconstruction.
      Critics, however, questioned government's ability to turn around the
fortunes of former privately-owned companies when it has over the years
failed to efficiently run more than 11 pathetically-performing parastatals.
      Apart from merging any company under reconstruction with some of its
associate companies, the government, according to the bill, can dissolve a
company under reconstruction or any of its associate companies and form one
or more companies limited by shares.
      The Bill will also give administrators powers to dissolve the board of
directors of the company under reconstruction and can also appoint and vest
management of any reconstructed company in an interim board of directors,
which can assume immediate responsibility of running the company.
      According to the Bill, one can be jailed for three years, if he
"conceals, destroys, mutilates or falsifies or is privy to the concealment,
destruction, mutilation or falsification of any book or document relating to
the affairs of the company."
      Directors, managers and secretaries could face a six-month
imprisonment term if they fail to account for or disclose the whereabouts of
investments "proved to have been in his or her possession".

Back to the Top
Back to Index

FinGaz

      MDC calls for poll boycott indaba

      Njabulo Ncube
      11/25/2004 7:12:40 AM (GMT +2)

      THE Movement for Democratic Change (MDC) National Council, the main
opposition party's supreme decision-making body, will meet in Harare next
month to review an August decision to boycott all elections in Zimbabwe.

      MDC insiders said leaders in the Southern African Development
Community (SADC), African Union and European Union had been informed that
the party needed to consult widely before arriving at a final decision on
whether or not to participate in the crucial 2005 parliamentary polls.

      SADC leaders including President Mbeki of South Africa, who is at the
centre of the delicate arbitration in Zimbabwe's political impasse, have
told the opposition party that it should not have boycotted the elections.

      The MDC, which gave the ruling ZANU PF a run for its money in the
historic 2000 parliamentary polls and the 2002 presidential polls, resolved
on August 25 this year to boycott all elections in Zimbabwe until President
Robert Mugabe implements election reforms agreed in Mauritius by SADC heads
of state.

      Insiders at the party, which is accused by the government of working
with external forces to destabilise the country, said they were yet to
decide on the tentative dates for the National Council meeting but indicated
the indaba would most likely be held the same week ZANU PF stages its own
equally important national congress, also in Harare.

      The MDC's National Council, the higher authority of the opposition
party, comprises the national executive, shadow ministers, executive mayors,
provincial committees and constitutional committees.

      MDC leader Morgan Tsvangirai, in his Tuesday message to party
supporters, confirmed that the National Council arrives at a final decision
in December.

      'We shall meet in early December to review our decision to suspend
participating in all elections," said Tsvangirai who is presently in Europe
on the final leg of his diplomatic offensive.

      "We shall be guided by the people, using raw facts on the ground on
how far the regime has sought to implement the spirit of Mauritius. As I
said before, we desire an entire package, with measurable outcome to
regenerate confidence in the electoral process," he said.

      Paul Themba Nyathi, the party's spokesman, also confirmed that such a
meeting would take place in early December.

      "The National Council also works with civil society partners. So
whatever decision is taken will cover everyone aligned with the MDC. It is a
very important meeting that will make or break Zimbabwe," said a source
close to the MDC top brass.

      "ZANU PF cannot afford to go it alone in the 2005 parliamentary polls
with the SADC watching on the sidelines. Who will recognise the outcome of
the polls? It's also too late for ZANU PF to sponsor a party to avoid a
one-horse race," he said.

      The ruling party, which is confident of overwhelmingly winning next
year's parliamentary elections, has indicated it would go to the polls with
or without the MDC.

      The government accuses local civic organisations of working in cahoots
with the MDC and some Western countries, especially Britain, to effect a
regime change in Zimbabwe.

Back to the Top
Back to Index

FinGaz

      90 farmer families face eviction in Mash East

      11/25/2004 7:13:09 AM (GMT +2)

      AT least 90 families in Mashonaland East province face eviction after
being issued with orders to vacate land they had settled on under the
controversial land reform.

      A1 model farmers at Oribi, Fairview, Kilmur and Melrose farms, who
claim to have been given offer letters by the Agriculture Ministry, would be
pushed out of the farms they invaded three years ago.

      Harare lawyer Obert Gutu of Gutu and Associates confirmed that the
Goromonzi magistrates' courts issued the summons at the request of
Petronella Kagonye, a lands officer in the province.

      "We have entered an appearance to defend the case with the Goromonzi
magistrates' court because these farmers were properly resettled and are
holders of offer letters. The farmers have not been shown the farms where
the government intends to resettle them and there is no proof that the said
farms are vacant. The victims are engaged in viable projects and they have a
High Court decree that they should remain on the farms," said Gutu.

      John Nkomo, the Minister of Special Affairs responsible for Lands and
Police Commissioner Augustine Chihuri, were cited as the respondents in the
matter.

      Justice Ben Hlatshwayo had given farmers facing eviction a reprieve
after he ordered that they should stay put on the farms.

      Sources from the province said they are political bigwigs jostling to
occupy the four farms, which are productive and strategically located. -
Staff Reporter

Back to the Top
Back to Index

FinGaz

      ZANU PF mulls cutting congress numbers

      Njabulo Ncube
      11/25/2004 7:13:42 AM (GMT +2)

      THE ruling ZANU PF, battling to raise $20 billion to bankroll its
national congress next week and the 2005 parliamentary polls, is
contemplating reducing the number of delegates from 9 000 to about 5000 amid
revelations only $5 billion is in the kitty, The Financial Gazette
established this week.

      Nathan Shamuyarira, the party's chief spokesman, said all the party's
10 political provinces had been given a target of raising $500 million, but
none had reached the figure by Monday this week.

      Shamuyarira dismissed as unfounded speculation that some of the party's
funds earmarked for the congress had been locked up in banks presently under
curatorship.

      "We don't have monies in those closed banks. We have money in our own
banks that are open. What people are saying is mischievous," he said.

      Shamuyarira said the total figure of $20 billion sought by the party
would meet the financial costs of the congress as well as funding campaigns
for the 2005 parliamentary polls.

      "We might be forced to cut the number of delegates from 9 000 to say 5
000 if funds do not permit. The treasurer needs more money, so there are a
number of fund-raising activities going on such as raffles and dinner
dancers," he added.

      "It does not mean that we will fail to hold the congress. The money to
fund the event and the 2005 elections is not coming in the manner we
expected."

      The highlight of the congress is the confirmation of the four names
for the presidium.

      Apart from President Robert Mugabe, his first vice president Joseph
Msika and national chairman John Nkomo, the party's provinces elected Joyce
Mujuru to be the first female vice president in ZANU PF's history.

Back to the Top
Back to Index

FinGaz

      Decision long, long overdue

      Mavis Makuni
      11/25/2004 7:15:11 AM (GMT +2)

      The decision by the ZANU PF politburo to have a woman fill one of the
two posts of second secretary of the ruling party marks a pivotal moment in
the history of Zimbabwe's efforts to achieve gender balance in national
affairs.

      Veteran Cabinet minister and former freedom fighter Joyce Mujuru is
poised to make history at the ZANU PF congress next month when she is
expected to be nominated to join the presidency of the party. If this
happens, she will automatically also become a co-vice president of the
country.
      Mujuru's imminent ascendancy to the top echelons of political and
governmental power comes after unprecedented jockeying and verbal tumult
within the ruling party.
      While it may be extreme to describe the ZANU PF politburo's decision
as offering the party's women's league "too little too late", it is
nevertheless important to put things into perspective.
      The possibility of a woman getting an opportunity to serve as one of
the country's two co-vice presidents is only likely to become a reality
after almost 25 years of independence.
      Any euphoria the women of Zimbabwe may be feeling over this prospect
can therefore not obscure the fact that the ruling party has been tardy and
grudging in acknowledging the contributions of women to the liberation
struggle and national affairs.
      Observers who have followed the unfolding events since September's
ZANU PF Women's League congress will have sensed a palpable lack of
enthusiasm for the idea of a woman vice-president.
      Men within the ruling party did not exactly fall all over each other
to congratulate and encourage Mujuru when it emerged that she was the most
likely candidate to fill the late Simon Muzenda's shoes as a vice-president.
In fact, despite her impeccable liberation war credentials, there was
undisguised grumbling in some quarters about her suitability for the
position.
      One ZANU PF official from Matabeleland South was quoted as opposing
the candidature of a woman for the top post because of the nature of the
problems bedeviling Zimbabwe at this stage. He did not think a woman could
be up to the task of confronting such challenges.
      He did not, however, say why someone like Mujuru, who was resilient
enough to survive the rigours of guerrilla warfare, could not cope with
governing a country she fought to liberate.
      As a young girl of about 19 in 1974, Mujuru singlehandedly downed an
enemy plane full of Rhodesian forces. Two years later, at the age of about
21, she was appointed to the ZANU PF national executive, the equivalent of
the politburo and central committee in today's nomenclature. Her record more
than speaks for itself.
      Another irrelevant excuse that was given by those anxious to hold on
to cherished prejudices was that ZANU PF had more pressing problems to deal
with and the issue of a woman vice-president could be deferred. It was
argued that the ruling party needed to "bury" the Movement for Democratic
Change (MDC) in elections next year first before it could consider the
question of a woman serving as a member of the presidency of the nation.
      If that argument were to be taken to its natural conclusion, it would
mean that all ZANU PF elections should be cancelled so that the party can
focus on defeating the MDC.
      Moreover, Zimbabwe is a signatory to the Southern Africa Development
Community (SADC) Protocol on Gender. This stipulates that at least 33
percent of all seats or positions in legislative assemblies or local
government councils should be reserved for women.
      In view of the fact that women constitute the majority in most SADC
countries, the quota is itself not even fair. In this country, women
constitute 52 percent of the population, but this is not reflected in the
composition of Cabinet, parliament, the judiciary and other national organs.
The same inequalities exist in the private sector.
      At their congress in September, members of the ZANU PF Women's League
also called for greater representation of women in parliament in line with
SADC and African Union guidelines but were advised to "start slowly".
      It has been reported that a delegation from the women's league headed
by the chairperson, Tenjiwe Lesabe, met President Robert Mugabe prior to the
emergency politburo meeting a week ago to press their case for Mujuru's
candidacy.
      Other reports suggest that the ruling party only capitulated to the
women's demands for self-preservation reasons, mainly to avert divisions
ahead of next year's parliamentary polls.
      Whatever the behind-the-scenes manoeuvrings, the appointment of a
woman vice-president was long overdue. The six ZANU PF provinces that have
nominated Mujuru for the post of second vice-president are not doing her a
favour. She has proved herself and deserves the recognition.
      Zimbabweans deserve to enjoy the benefits of being served by a leader
who brings different sensibilities and perspectives on national issues and
interests.
      Born in 1955, Mujuru, who abandoned her schooling in 1974 to join the
liberation war, is the only woman to have served as a government minister
without interruption since 1980. Fresh from the liberation war, she was
appointed Minister of Youth, Sports and Culture in 1980. She subsequently
served in several ministerial capacities, including Information, Posts and
Telecommunications.
      In 1992 she was appointed governor of Mashonaland Central Province.
She was appointed to her current portfolio as Minister of Water Resources
and Infrastructural Development in 2002.
      A wife and mother, Mujuru has literally bloomed from a young
ex-combatant to a mature politician before the nation's eyes. A measure of
her maturity was demonstrated through her ability to hold her tongue over
the last few months when debate raged about the possibility of her becoming
the most powerful woman in Zimbabwe.
Back to the Top
Back to Index

FinGaz

      GMB monopoly borders on the absurd

      Nelson Banya
      11/25/2004 7:15:47 AM (GMT +2)

      THE Grain Marketing Board (GMB)'s monopoly, in place since 2001 when
the government abolished the Zimbabwe Agricultural Commodities Exchange, has
become an unmitigated policy disaster, judging by the string of losses the
parastatal continues to record, along with its failure to secure the country's
strategic grain reserves.

      Through Statutory Instrument 235 A of 2001, at the height of a drought
and upheavals on the farms, the government declared maize and wheat
"strategic grains", with the GMB holding the sole mandate to trade in the
staple commodities.
      For instance, the GMB Act proscribes the transportation of maize or
wheat in quantities exceeding 250 kilogrammes without a GMB permit.
      Three years after the decision, meant to secure the country's food
situation, the GMB has not only recorded a massive $300 billion loss but has
failed to mobilise grain stocks consistent with its monopolistic position.
      Official statistics, which indicate an optimistic and hotly contested
yield of 2.4 million tonnes of maize in the 2003/2004 season, also show that
only about 400 000 tonnes have been delivered to the GMB.
      The same officials also recently admitted that about 500 000 tonnes,
barely enough to cover the country's consumption for two months, will be in
stock by year-end.
      At the same time, the current season's productivity continues to be
bogged down by inadequate preparation and insufficient inputs.
      Independent assessments point to a maize yield of less than the 980
000 tonnes produced in the previous season, giving a deficit of about one
million tonnes.
      Earlier this year, the government moved to bar non-governmental
organisations and aid agencies from carrying out assessments of the food
situation.
      A Food and Agricultural Organisation/World Food Programme crop and
food supply assessment mission failed to complete its task following
government intervention.
      The root of the GMB's problems lies in an unrealistic pricing system
which results in the parastatal paying more for grain it sells for
significantly lower prices. It also lies in the endemic parastatal problem
of guaranteed government financial support.
      For instance, the heavily indebted GMB this year alone not only had
its debt taken over by the government, but also received $550 billion from
the Reserve Bank of Zimbabwe's productive sector facility to finance the
purchase of grain.
      The long and short of it all is that the GMB is a monopoly dealing in
commodities Zimbabweans consume in massive quantities, but cannot stand
alone.
      Nothing could be more absurd.
      Often in the ongoing debate over the veracity of official crop
projections, government ministers have been quoted saying it was unrealistic
to expect all of the supposed 2.4 million-tonne bumper harvest to be
delivered to GMB silos.
      However, a parliamentary portfolio committee which probed the country's
food situation in light of contestable official claims warned of another
impending food crisis as the GMB's current stocks were tenuous, measured
against the country's requirements.
      The government, which has in the past year strenuously denied that
there would be need for grain imports, has been buying grain from Zambia and
South Africa, according to official data recently released by the two
countries.
      GMB officials told the parliamentary committee that the parastatal,
which also made a $28 billion loss in the financial year to March 2003,
would need billions of dollars to import wheat and maize, billions which
could have been saved by proper forward planning and a realistic pricing
system which would have triggered more meaningful deliveries to the silos.
      Analysts, considering the country's sudden inability to sustain itself
following the government's land redistribution have, at every turn, called
for the disbanding of the GMB monopoly, calls which have met with strident
resistance from the authorities.
      Be that as it may, the GMB's stark inability to meet grain demand is
further exposed by the existence of a thriving parallel market for grain.
      The Famine Early Warning Systems Network (FEWSNET), which in April
this year raised the ire of the government by reporting that up to 2.2
million Zimbabweans - mainly in the rural areas - would require food
assistance, contends that figure could have risen along with ballooning
grain prices.
      "This estimate was made on the assumption that grain would be
available from the Grain Marketing Board (GMB) at Z$471/kg. However, GMB
maize grain is now selling for at least Z$720/kg, and it is in short supply.
Where GMB maize is not available, many households are forced to turn to the
parallel market to buy maize, where it sells for more than Z$1 000.
      "Given much higher maize prices and no evidence of commensurate
increases in rural incomes, the rural population in need of food assistance
must now be higher than that originally estimated by the Zimbabwean
Vulnerability Assessment Committee," Fewsnet noted in its latest report on
the country's food situation.

Back to the Top
Back to Index

FinGaz

      2005 budget: the people vs the state

      Nelson Banya
      11/25/2004 7:17:35 AM (GMT +2)

      ACTING Finance Minister Herbert Murerwa faces a crisis of sorts today
as he tables the 2005 national budget.

      A crisis of no expectations.
      Thrust back into the hot seat in May following the arrest of his
latest successor at treasury, Chris Kuruneri, Murerwa makes an all too
familiar trip to Parliament building today facing probably the least
expectations from a budget statement in years.
      With a major part of economic policy now being driven by the Reserve
Bank of Zimbabwe (RBZ) - a fact evident in Murerwa's own budget statement
last year which left several material issues to be dealt with in the central
bank's monetary policy - the budget has since been pre-empted by the RBZ's
quarterly reviews as well as the government's own latest blueprint launched
last week.
      The market has been getting regular direction on interest rates and
the exchange rate from the central bank, while the Macro-Economic Policy
framework for 2005-2006 unveiled by Murerwa last week lays down the
government's broad fiscal policy objectives.
      "Fiscal, monetary and sectoral measures, including national budgets,
will be rooted in this framework," Murerwa said last week.
      However, analysts expect the budget to provide a cue on the reform of
state enterprises, whose inefficiency continues to dog the economy, which is
in its fifth year of recession.
      Although Murerwa last year announced that state enterprises would be
allowed to charge economic prices, most parastatals continue to be in the
red and have remained on a life support system, getting regular financial
support from the government.
      "Parastatal reform is central because the economy hinges on the
efficiency of parastatals. We should see more being done in that regard if
real recovery is to come into reality," David Mupamhadzi, Trust Holdings
Limited group economist, said.
      Best Doroh, principal economist at Finhold concurred, adding that the
persistent loss-making trail behind virtually every state enterprise
required urgent attention if inflation was to be reined in in line with RBZ
targets.
      "As long as parastatals remain a drain on the fiscus, we are going to
be saddled with budget deficits.
      "Overruns on expenditure emanating from the financing of parastatals
continue to exert pressure on the fiscus," Doroh said.
      The government, which last year committed itself to eliminating
quasi-fiscal operations, such as the myriad support prices put in place to
rescue key industries like the tobacco and gold sectors, is yet to make good
on that promise.
      Analysts said the emphasis on parastatals, capacity building and
infrastructure development would be in line with a government that is
reorganising itself as a means to extricate the economy from the rut,
although some concessions in areas such as personal tax were also expected.
      "Of course there has been talk about the need to further widen the
income tax bands. We are likely to see some action on that front as well,"
Mupamhadzi said.

Back to the Top
Back to Index

FinGaz

      Plot to dump street kids in youth training camps

      Staff Reporter
      11/25/2004 7:18:10 AM (GMT +2)

      THE Harare City Council is planning to dump more than 7 000 street
kids at the controversial national youth training centres in a sweep likely
to be replicated in other towns and cities.

      Plans are already at an advanced stage to forcibly round up beggars
and a hardened army of street children, starting in the capital Harare, as
the government battles to stem the spiralling population of street people,
sources said.
      The plans, according to the same sources, are also meant to give
impetus to the government's controversial national youth training programme,
widely seen as a ruse to establish ZANU PF's hold on young people.
      It has been established that the government, which held a meeting
recently with non-governmental organisations (NGOs) working on the rights of
children in Zimbabwe, has given the same NGOs three months to conceive a
workable plan to deal with the street kids menace.
      "If the NGOs fail, then government will proceed with its initial plan
of sending these street dwellers to the training camps. This is seen as the
only solution to restoring normalcy to the streets of Harare and other
towns," the sources said.
      The move to dump street kids in the "propaganda" camps comes at a time
the government is making serious plans to expand the existing training
centres to all of the country's provinces.
      The youth training camps have come under attack for brainwashing
unemployed youths who are allegedly used by the ruling ZANU PF to terrorise
citizens during election periods. The government denies the charge, saying
students at the camps get lessons on patriotism.
      Graduands from the camps, derisively referred to by some Zimbabweans
as "Green Bombers", have been accused of a string of human rights
violations, including beatings, torture and rape, charges denied by the
government and ruling party.
      Harare City Council spokesperson Leslie Gwindi professed ignorance on
the intended move to dump street kids from Harare in training camps.
      At the meeting held two weeks ago between government officials and
representatives from the Zimbabwe National Council for the Welfare of
Children, the government made it clear that it was now taking steps to
"round up street kids and place them in places of safety".
      The government's suspicious proposal, which was immediately rejected
by representatives from NGOs at the meeting, is that street dwellers be
placed in "residential care institutions".
      Matters came to a head when the NGO representatives demanded to know
"whether they (the government) have the capacity to house more than 12 000
people.
      "Our bone of contention was also on the fact that institutionalisation
is not the best way forward in dealing with the problem. After they are
institutionalised, they are likely to return to the streets," said Trynos
Masengwe, a representative of the National Council for the Welfare of
Children.

Back to the Top
Back to Index

FinGaz

Comment

      Make up with IMF

      11/25/2004 7:41:35 AM (GMT +2)

      THE meeting last week between President Robert Mugabe and the
International Monetary Fund (IMF) director for the African Department,
Abdoulaye Bio-Tchane, could not have come at a more appropriate time.

      It is a confidence-bolstering move which is the clearest sign yet that
although it abandoned Zimbabwe midstream in the late 1990s, the IMF's hope
in the local economy had not completely desiccated. Although no deal has
been sealed yet and might not be for some time, that the two parties are
talking provides the much-needed fillip to circumspect foreign investors,
financiers and donors after their stampede for the exits over the past few
years.

      Zimbabwe, the increasingly ostracised erstwhile regional breadbasket,
is experiencing swingeing balance of payments difficulties. It is facing
payment problems because it is not earning enough foreign currency to pay
for what it buys from other countries. Hence its failure to stabilise its
exchange rate. Resultantly, the once resilient economy refuses to shift out
of the low gear.

      It is against this background that we feel it is imperative for
Zimbabwe, whose central bank has since underlined the need to seek a deeper
rapprochement with the international community, to re-engage the IMF, which
lends money to countries with balance of payments problems.

      Of course it goes without saying that borrowing from the IMF, while it
can help stabilise the country's finances and strengthen its trade, brings
with it what might be politically unpalatable obligations. It means that the
country, which was abandoned by the Bretton Woods twin in the late 1990s for
a lapse in fulfilling its self-imposed obligations, would have to initiate a
series of reforms to eradicate the source of the payments difficulties. This
entails treading a new path of economic austerity, which of course might not
be politically expedient.

      But national interests should take precedence above parochial
political interests. We hope that our politicians, some of whom even
President Mugabe has admitted have bloated self-interest, recognise this. We
say so because we are aware that our call for the country to seek recourse
to the IMF which recently gave Zimbabwe a six-month reprieve and decided
against slamming the door on the country, could stir some controversy or,
worse still, political ridicule especially by those Cabinet ministers and
self-serving politicians who find the magic influence of populist
phraseology too strong to resist.

      In Zimbabwe, the IMF, which has an equally mysterious presence on the
international scene, has been painted black. It is seen as the evil face of
imperialism. One Zimbabwean Cabinet minister who is so pleased and
overwhelmed by being in government that he behaves more like a town tart who
has finally married the mayor continues to propagate this myth further!

      The incredibly foul-mouthed, narrow-minded, prejudiced and obstinate
minister, who passes for a graphic example of articulate ignorance, is on
record as having said that Zimbabwe's political and socio-economic life
would remain unshaken with or without the IMF. Of course nothing could be
further from the truth. Zimbabweans need no reminding that the country's
once impressive credit rating has been reduced to junk status partly because
of the suspension of the IMF support. The hands of leading international
financiers have been stiffening and they no longer want to touch Zimbabwe
even with a barge pole precisely for the same reason.

      We are not here extolling the virtues of the IMF. We have said it
before and we will say it again - we do not accept the mystique of the IMF
nor do we hold any brief for its outworn shibboleths. In any case we are
quite aware that there can be no greater error than to expect or calculate
upon real favours from nation to nation or international organisations to
nation. Be that as it may, the IMF is nonetheless a key international
institution whose significance and influence cannot be overemphasised.

      While what the IMF can give us as balance of payments support could be
a proverbial drop in the ocean, it is much more important in that key
international financiers take their cue from the institution. Its presence
is seen as a seal of approval. This is why for now Zimbabwe is feeling the
financial pinch of the IMF's continued absence. Those institutions that take
their cue from the IMF remain seated on the fence maintaining a wait-and-see
attitude.

      The IMF itself admits that it is widely seen as a self-appointed
international central bank or a powerful and disapproving political
institution imbued with a missionary zeal for fiscal rectitude. Yet, it is
not like the IMF, for all its sins, has an effective authority over the
domestic policies of its members. As it says in one of its external
relations pamphlets: "It (IMF) is in no position for example to force a
member to spend more on schools or hospitals and less on buying military
aircraft or constructing grandiose presidential palaces . . ."

      Although scapegoating politicians do not say it for reasons best known
to themselves, the truth is that the specifics of any economic reform
programme adopted by any member are to all intents and purposes the
respective member's. The bottom line is that there is no question of the
fund forcing a member to adopt any policy, so to speak. This provides room
for negotiations and consultations with a view to finding a common ground in
the best interest of the concerned economy. In Zimbabwe's case the fences
have not irretrievably broken down. They can be mended. And we have to take
advantage of this because it is no longer time to play hard ball.

      True, the IMF is hated for considering Zimbabwe a pariah and rogue
state with a serious democratic deficit by the government which has
protested this as unjustified hostility, contempt and ostracism. And the
rift between the two has widened over the years as the haggling continued.

      We feel therefore that a little ray of sunshine broke through the dark
cloud last week following the high-profile meeting between President Mugabe
and Bio-Tchane. From a Zimbabwean point of view, this was nothing short of a
victory for pragmatism. Most encouraging was that there were conciliatory
sentiments from both sides. The country's leadership seems to be coming
around - thus it is now listening to the voice of reason and the influence
of realities. As a nation we have been living a big lie that we could go it
alone. Metaphorically speaking, no country is an island. This is why the
meeting between the two provoked the rarest of emotions in Zimbabwe today -
hope. This is the way to go in the concerted national efforts to
re-integrate the country into the community of nations.

Back to the Top
Back to Index

FinGaz

      ...and now to the NOTEBOOK

      11/25/2004 7:39:50 AM (GMT +2)

      Air-Zimbo
      The government has again assumed the huge debt accumulated by our
struggling national airline, Air Zimbo - $117 billion and about US$14
million - in order to give the new management a chance to create its own
crushing debt in a record time.

      Yes, according to Transport and Communications Minister Chris Mushowe,
the government is taking over all the foreign and domestic debts accumulated
by this ever-bleeding airline.
      What it means is simply that the overtaxed Zimbabwean citizen will pay
for all the mismanagement that has been taking place at the airline for
years. From suspended managers who remained on full pay for years, to
privileged families occupying half the seats for free between
Harare-London-Harare flights, to costly management-induced industrial
actions, to needless court actions - all will be paid for by the
impoverished taxpayer toiling day and night!
      Remember what happened recently with similar mismanagement-related
debts at ZBC?
      Anyway, can anyone show good cause why CZ should not congratulate the
airline on its maiden flight to China? We hope the airline's ambitious
turnaround initiatives - which have seen the introduction of this
Harare-Singapore-China flight as well as the borrowing of new aircraft for
domestic and regional routes - will bear fruit.
      We hope that proper market research was done before the introduction
of this long-haul flight and we just pray the research (if ever it was done)
was not based on those dubious figures about Chinese tourists dying to see
our own Victoria Falls! We hope the flight is based purely on business
decisions, not how frequently our ministers are in Beijing to beg . . .
      The airline might soon find itself in fresh and much bigger debts and
that will be the end.
      But for the airline to be viable, it will have to endear itself to the
travelling public by sprucing up its service. No more unexplained delays, no
more flights cancelled at the eleventh hour without alternatives for
passengers, no more serving beers in bottles during flights, no more endless
strikes by starving pilots and engineers. This way, our so-called national
airline may cease to be a big joke.
      There is one thing CZ would want to know from Minister Mushowe. Do
plans to introduce cargo flights by our Air-Zimbo have anything at all to do
with the recent seizure of an ageing Boeing 727 cargo aircraft from those
mercenaries who were on their way to stage a coup in Equatorial Guinea?
Hopefully the answer is a patriotic NO.
      Mjibha?
      Some years ago, CZ was just a small village boy. He woke up one
morning and went behind the hut, hoping to help himself, and he got the
shock of his life.
      Guess what? He was confronted by this lone and bare-footed ZIPRA
fighter who was carrying a gun and a heavy satchel. When CZ got out, the man
was just about to knock at the hut. He asked where the elders were, and CZ
could only point at the other hut where his grandmother slept. The fighter
went there, knocked, got in and asked (in execrable Shona) if he could rest
in the hut.
      Who could dare say no? So he put his gun on the pillow of the
makeshift bed and removed his boots from his satchel and put them on before
falling fast asleep. (The boots had been removed to wrong-step any possible
trackers).
      The whole of that day, the Rhodesian forces combed the bushes around
the village and the nearby Zowa Farming Purchase Area looking for
"terrorists" who had infiltrated the area, but they got no one.
      The man remained in the hut the whole day. In the afternoon, he was
served sadza and chicken - which he demanded that the little CZ also eat a
morsel or two (just in case it was laced with some deadly stuff). And he got
another meal before he left just after sunset when it was safe to continue
with his lone journey to only-God-knew-where, be it the fabled
Muchembereweshumba Hill or the legendary Muchekawakasungabeta mountain
ranges.
      Throughout the period from 1977 until the end of the war, CZ's
grandmother and several other villagers lost their chickens to "vana Mukoma",
spent sleepless nights attending nocturnal meetings and/or running errands.
      So CZ, his grandmother and all the other villagers contributed in
their small or big way towards the war effort. Ergo, they all duly qualify
for membership into the collaborators, mjibhas and chimbwidos body just like
any other villagers anywhere in the then Rhodesia who knew exactly where the
freedom fighters were but decided not to "sell out".
      So CZ, like any other Zimbo, wonders how those thugs who gathered for
a meeting in Harare this week to decide on the way forward on vetting the
people who are going to benefit from the latest financial windfall from the
government will decide who is a genuine war collaborator and who is not.
      As shown by CZ's example, Zimboz contributed in the overall war effort
in different ways and capacities. Just the mere fact of knowing where the
"terrorists" were and not reporting them to the Rhodesian forces (for a
handsome reward) was a contribution to the war effort, so how will some
thugs come up with some cut and dried criteria on this war collaboration
issue? Moreso after more than 25 years and when most of the "terrorists" who
were assisted have died or can simply not be located to testify?
      Or what if one was a war collaborator then, but is now a local
district chairman of the MDC. Would they still qualify?
      If ZANU PF had committed this money it is planning to dole out to the
long-stalled Matabeleland Zambezi Water Project or any such project, would
it not get the votes it is looking for as well as making a difference to the
lives of some people?
      Journoz
      Last week some enterprising businessman took a motley of local
journalists on one of those "familiarisation" tours to his lodges somewhere
around Mt Darwin. There were five males and four females and they were to be
out from Thursday last week to Sunday this week - a good four days and three
nights in the wilderness!
      Among the males was CZ's brother, this one from our one and only
electronic medium. Yes, this randy brother who thought it was his right to
help himself to all these ladies . . . four of them. No, five, including the
driver, who was also female! So on the first night Cde AN allocated himself
this journo sister, who we now think was his first choice. He tried his
best, but no luck.
      Fine and dandy. He thought since he had made his advances at night,
the rest of the group would not know. So the following day, he moved to the
next prey. This intern from this university! The response was negative. By
sunset, he had set his sights on this other student, now getting desperate
for a blissful night. Nothing worked.
      The fourth journo sister he skipped. Rumour has it that the fellow
once tried his luck on a similar trip in Nyanga but failed. So it was not
worth trying again.
      So the newsy reporter had no choice but to approach the motherly lady
driver, literally begging . . . but he was told in no uncertain terms to
behave like a civilised African!
      He got so angry . . . so angry that the first thing he wanted to do
when he got onto the bus back to Harare was to beat up one of the "stingy"
ladies! Were it not for colleagues who restrained him, today it would be
another story!
      Indeed when it happens, they will be there!
      This was not the end. On the way back, the team was treated to what
some members are calling "The Gidza-gate", one scandal in which this
colleague from one of our few vernacular papers who had been drinking like
nobody's business decided to wind up the four-day binge by soaking himself.
      CZ is told that throughout the expedition, the fellow was just too
busy working hard on the free beer. He was sloshing at a rate that even the
host ended up regretting . . . imagine someone so greedy that he grabs a
whole big bottle of whisky which everyone else is expected to share and
starts pushing it straight into his smelly mouth!
      So on the way back, the brother got so zonked that he became
senseless. All the way colleagues had to stop the driver, carry him out and
unzip him . . . zip him up and carry him back. As they got tired, they
failed to stop the car on time and - guess what? - Kariba's floodgates burst
open . . . and CZ leaves everything to the reader's fertile imagination!

Back to the Top
Back to Index

FinGaz

      Wankie discovers huge methane gas deposits

      Staff Reporter
      11/25/2004 7:19:47 AM (GMT +2)

      Zimbabwe's sole coal producer, Wankie Colli-ery Company, has
discovered huge methane gas deposits at its exploration sites in
Matabeleland North, The Financial Gazette has been infor-med.

      The deposits are likely to add to a growing list of natural resources,
including platinum, that have given the country hope amid a gloomy outlook
created by a five-year economic crisis.
      Sources said this week that huge deposits of the methane gas had been
discovered on Wankie's exploration site in the Lubimbi area in Binga, close
to its coal mining operations in Hwange.
      Although the group released its interim financial statement for the
half year to June 30 2004 two months ago, its management did not make an
announcement of the discovery, which sources said was already part of an
agenda to broaden operations.
      Technical staff at Wankie are already exploring ways of developing the
deposits and management has already briefed the company's board and the
government, which holds a significant stake in Wankie.
      Wankie's marketing and public relations manager John Nkala confirmed
the discoveries.
      "Yes, preliminary exploration has confirmed an abundance of it
(methane gas). As Wankie, we are interested in any energy venture," Nkala
said.
      He added: "We don't want to go into this on our own. Our expertise is
in coal mining."
      Wankie's managing director, Godfrey Dzinomwa, said: "We have a general
interest (in methane gas mining) but at the moment we are concentrating on
the turnaround of our coal mining business".
      The new methane gas findings by Wankie follow similar discoveries by
the Industrial Development Corporation (IDC), which holds exclusive rights
to a concession holding 665 000 cubic metres of coal bed methane gas
reserves stretching to Gwayi and Hwange.
      The IDC has put in place measures to develop the Lupane Gas Project.
      A board to spearhead construction of the US$6 million Lupane Gas
Project was endorsed in August this year, paving way for the drafting of a
strategic plan for the project, believed to be the biggest in southern
Africa with an export potential of 80 percent of total gas production.
      Chinese investors are reportedly negotiating for a stake in the Lupane
Gas Project.
      Wankie, which had become a perennial loss-maker, appears to be turning
around the corner to profitability.
      Earlier this year, management took a decision to sack excess staff,
resulting in about 200 workers, including senior employees, losing their
jobs.
      The company, with a multiple listing on the Zimbabwe, Johannes-burg
and London stock markets, posted improved interim results for the half-year
to June.
      Efforts are currently underway to restructure Wankie Colliery
Comp-any's foreign debt, and several multi-million-dollar projects are being
undertaken.
      These include the Chaba open cast mine, and the development of an
underground mine to replace the current one whose life ends in less than a
year.

Back to the Top
Back to Index

FinGaz

      Land invasions wreck Hwange Safari ops

      Felix Njini
      11/25/2004 7:21:52 AM (GMT +2)

      LEADING hotel group, Zimbabwe Sun Limited (Zimsun), rattled by the
downslide in the tourism and hospitality industry, is battling to reclaim
Hwange Safari Lodge's land invaded by marauding land-grabbers two years ago.

      Parts of Hwange Safari Lodge were invaded by a group of government
supporters strongly linked to Obert Mpofu, Matabeleland North governor.
      Hwange Safari Lodge is situated in the heart of Hwange National Park,
one of the region's largest wildlife sanctuaries which has, however, been
reduced to an illegal hunting ground.
      Once a cash-cow for the hotel group, Hwange Safari Lodge, which is
also reeling from the effects of lack of airline connectivity to the area,
reported a $700 million loss in the half-year to September 30, 2004.
      Sources said initial representations made by Zimsun management to
relevant government authorities had "failed to yield any meaningful
results."
      The invasion, sources said, has curtailed Zimsun's growth plans,
marketing strategies and has also seen piecemeal investment plans on the
investment, once a major value driver for the group.
      Zimsun chief executive Shingi Munyeza remained mum on the future of
Hwange Safari Lodge, only diplomatically saying the property was reeling
from the "effects of processes of land redistribution".
      Lack of airline connectivity with Victoria Falls and the rest of the
country has seen Hwange Safari Lodge bearing the brunt of the economic
situation, Munyeza said at a Zimsun media and analysts' briefing last week.
      Sources said Munyeza would soon be making representations to President
Robert Mugabe on the effects of the invasions on wildlife sanctuaries.
      "This is like pronouncing a death sentence on the future heritage of
the country and the financial benefits conservation would have for
Zimbabwe,' said the sources.
      Despite a reported surge in hotel bookings during the coming festive
season, Munyeza said there was very little business at Hwange Safari Lodge.
      Unconfirmed reports say more than US$400 million has been lost due to
illegal hunting in the southern parts of the country.
      Munyeza also warned that business conditions were likely to worsen for
industry players in the first four months of 2005 due to the forthcoming
parliamentary polls.
      Viability in the sector was also being choked by rising overheads,
Munyeza said.
      During the past six months, operational costs for Zimsun shot up by
482 percent with electricity tariffs going up by nearly 700 percent.
      "ZESA charges have gone up 13 times compared to the same period last
year," Munyeza said.
      During the past six months, room occupancy dropped from 39 percent to
36 percent, Munyeza said. Attributable profit during the period under review
was at $4.9 billion with foreign operations contributing $2.4 billion.
      Munyeza explained that there were now marginal signs of recovery in
traditional markets, adding that the local market was likely to continue in
a depressed mood.
      Zimbabwe witnessed a 12 percent growth in tourist arrivals from
America, 14 percent from the Asian and Pacific region and another 14 percent
from Europe. Arrivals from the Middle East were around five percent.
      The country also suffered a five percent drop from arrivals from the
region, mainly South Africa, amid concern over the economic and political
situation in the country.
      "The United Kingdom market continues to be depressed. The British have
taken a moral position on what is happening in Zimbabwe," Munyeza said.
      "It is the first quarter of 2005 which is going to be pretty tough for
the industry, the fires are already brewing and the negative publicity which
characterised the past elections will lead to a lot of people adopting a
wait-and-see attitude," Munyeza warned.

Back to the Top
Back to Index

FinGaz

      Food shortage scare grows more real

      Zhean Gwaze
      11/25/2004 7:22:25 AM (GMT +2)

      THE shortage of agricultural inputs continues to stalk Zimbabwe's
2004/05 farming season, further dampening hopes of a return to food
self-sufficiency.
      It has been established that Zimbabwe still has inadequate tillage
equipment, seed maize and fertiliser despite the advent of the rain season
this week, which marked the dawn of the farming season.

      A parliamentary committee on agriculture this month gave a clear
indication that the country's targeted bumper harvest of 2.4 million tonnes
was unrealistic, despite official protestations supporting the optimistic
projection.
      Zimbabwe has a hybrid seed maize deficit of more than 40 000 tonnes
from its normal requirement of more than 100 000 tonnes of seed to produce
the 2.4 million tonnes of maize it needs to meet its annual requirements.
      Major seed producers in the country, Seed Co and Pannar Seed, told the
parliamentary committee on agriculture this month that resettled new farmers
lacked the requisite skills to produce hybrid seed maize.
      Seed Co says it has 24 000 tonnes of hybrid seed maize in stock in its
Zimbabwean depots and will import a further 19 000 tonnes from the region,
with huge supplies expected to come from Zambia.
      "We have a serious shortage of seed and currently it is not readily
available on the market. Time is no longer on our side," Zimbabwe Farmers
Union (ZFU) official Phil Chingwaru told The Financial Gazette this week.
      Zimbabwe, a former regional breadbasket now reduced to a basket case,
needs to import more than 70 000 tonnes of seed to augment existing stocks
and avert another food shortage.
      The ZFU has called on farmers to use open pollinated varieties because
of the shortages.
      The natural breeds, however, have a disadvantage of producing low
yields despite their requirement of less fertiliser compared to the popular
and preferred hybrids.
      The union is also contemplating importing seed for its 2.5 million
members in future in a bid to overcome the perennial seed shortage, although
details of the project are still sketchy.
      The agro-chemical manufacturing industry requires up to US$20 million
(about $112 billion) for critical raw material imports to beef up existing
stocks.
      Fertiliser firms have revealed that although compound D is readily
available on the market, there was a persistent shortage of ammonium nitrate
(AN), which is required prior to the maize crop's germination.
      Sable Chemicals, which produces the ammonium nitrate fertiliser, is
managing 18 000 tonnes a month, instead of the expected 20 000 tonnes of AN.
      To complement AN fertiliser, the industry needs to import 30 000
tonnes of urea.
      An industry expert said there was no way the country could reap a
bumper harvest under the prevailing conditions.
      "Although tractors are coming in small batches from the East, that is
only a drop in the ocean for the new commercial farmers, who have no
equipment. Some have not even started ploughing despite having access to
cheap fuel sponsored by the government," the expert said.
      The government's controversial land reform programme, which began in
2000, gave way to a host of new farmers, many of whom, up to now, do not
have equipment.
      In its periodic reports, the Famine Early Warning Systems has warned
of possibilities of food shortages because of the persistent shortages of
inputs.
      The government's sole trader of grain, the Grain Marketing Board, is
virtually empty, with only 500 000 tonnes of grain expected before the next
harvest in April next year, raising fears of another impending man-made
disaster.
      "What we need is an overhaul of the industry before we face another
famine," said an industry official.

Back to the Top
Back to Index