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Zimbabwe banks cope with currency switch but individuals lose out

Zim Online

Tue 22 August 2006

      HARARE - Zimbabwean banks last night said they had met an August 21
deadline to switch over to new currency, a crucial lift for government
monetary reforms that had looked likely to descend into chaos in a last
minute rush by individuals and firms to deposit old cash in exchange for new
money.

      Bankers Association of Zimbabwe (BAZ) president Pindie Nyandoro told
ZimOnline that although there had been a huge influx of people in banking
halls on deadline day on Monday, banks had coped well and would not be
asking the Reserve Bank of Zimbabwe (RBZ) to extend the deadline for
currency conversion.

      Nyandoro, who is also managing director of one of the country's
biggest commercial banks, Stanbic Bank, said: "Nobody has asked for an
extension (of the deadline) .. we are complying and everybody has complied.
There are absolutely no hitches, though we had an influx of people but we
have coped."

      RBZ boss Gideon Gono last month introduced a redenominated currency
after lopping off three less zeroes from the old banknotes to help consumers
cope with rampant inflation of nearly 1 000 percent. The old notes ceased to
be legal tender yesterday.

      Gono has argued that the new currency measures were necessary to deal
with a bustling black-market trade, especially for foreign currency, which
had seen trillions of local dollars "working overtime" in neighbouring
countries.

      But the monetary reforms would have crumbled had banks failed to make
the change over on time.

      In a sign the authorities were panicking at the prospect the banking
industry and other key players in the market could fail to make the change
over, Gono was last Sunday quoted by the official media as having said the
RBZ would consider extending the deadline for those who might be still
holding cash by the close of business yesterday.

      RBZ spokesman Kumbirai Nhongo however told ZimOnline yesterday that
the bank had not extended the deadline for currency change-over. "I have
been out of office and I am driving into town right now but for now there is
nothing on extension," said Nhongo.

      RBZ insiders said both individuals and firms that may still be holding
old cash after the change-over deadline would have to turn it into "garden
manure" as said by Gono when he first announced the currency reforms.

      Supermarkets and other movers of large cash would be allowed to
deposit old cash at their banks today.

      But many more individuals especially villagers from remote parts of
the country, who could not travel to towns and other centres to change their
money on time, were sure to suffer huge losses as most were still stuck with
old money by close of business yesterday.

      Even in the capital Harare, scores of workers could be seen last night
milling around public omnibus termini, unable to go home because bus crews
would not accept their old cash after the expiry of the RBZ deadline. -
ZimOnline


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Al Jazeera sets up base in Harare

Zim Online

Tue 22 August 2006

      HARARE - Al Jazeera International, a subsidiary of famous Arabic
television channel, Al Jazeera, has opened a two-man bureau in Zimbabwe's
capital, Harare.

      Al Jazeera International, which like its parent company is
headquartered in Doha, Qatar, broadcasts news and current affairs in English
24 hours a day. It is the only English news channel with its head office in
the Middle East.

      The Arab-owned news channel had since the beginning of the year been
rumored to be keen to set up a bureau in Zimbabwe, which, with its conflict
with major Western nations over human rights and other governance issues,
fits in well into the bill for the television channel.

      But a Press conference called by President Robert Mugabe's government
last Friday to officially announce the opening of Al Jazeera International's
Harare bureau was cancelled at the last minute.

      Government officials later said on Monday that the press conference
that was to take place at Mugabe's Munhumutapa offices had been called off
after acting Information Minister Paul Mangwana - who was to also address
journalists at the briefing - was summoned to attend to other urgent
government business.

      "The Press conference was to announce that Al Jazeera have opened a
bureau in Harare. It had to be cancelled because Minister Mangwana had to
attend to other pressing government business," said an Information Ministry
official, who declined to be named.

      Besides Mangwana, Al Jazeera director of news, Steve Clark, managing
editor, Ormar Bec and Africa bureau Chief, Andrew Simmons, who arrived in
Harare last Thursday, would also have addressed the Press conference at
Munhumutapa building.

      It was not immediately clear last night whether the Al Jazeera
officials were still in Harare yesterday or whether another Press conference
to announce the channel's presence in Harare would be called at a later
date.

      But the two journalists hired by Al Jazeera, Cyrus Nhara and Farai
Sevenzo, were said to have already started work. Nhara is a cameraman and
producer who has done work for Reuters television in Harare before. Sevenzo
is a news reporter who has done work for Britain's Channel 4.

      Al Jazeera is the first international news channel in more than three
years to be allowed to set permanent base in Zimbabwe after Mugabe's
government chased away mostly Western televisions and radio broadcasters
such as the British Broadcasting Corporation.

      Most of the Western networks can still be allowed into Zimbabwe but on
temporary basis and only to cover specific stories. - ZimOnline


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Only 13 women protesters released

Zim Online

Tue 22 August 2006

      BULAWAYO - Police in Zimbabwe's second biggest city of Bulawayo last
night released 13 women and kept in detention over 180 demonstrators who
were arrested on Monday for protesting against the government's monetary
reforms.

      The protesters, who included some 30 men, belong to the Women of
Zimbabwe Arise (WOZA) group. They were arrested yesterday for marching in
the city against monetary reforms introduced by the government earlier this
year.

      A lawyer representing the protesters told ZimOnline last night that
the police had only released women with small children while keeping the
rest of the protesters in detention.

      "Of those who were arrested, 13 of the women have been released on
condition they stay under my custody because they had children," said
Chivaura.

      The protesters were demonstrating against reforms that saw the Reserve
Bank of Zimbabwe introduce new currency and slash three zeroes on the local
currency.

      The central bank gave Zimbabweans until yesterday to hand over the old
currency sparking chaotic scenes in urban areas as individuals rushed to
beat the deadline. - ZimOnline


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Church donates food, clothing to Zimbabwean refugees

Zim Online

Tue 22 August 2006

      DIEPSLOOT - The Zimbabwe Pastors Forum (ZPF) last weekend donated food
and clothing to about 200 Zimbabwean refugees and asylum seekers who are
living in South Africa.

      The ZPF, which was set up earlier this year to look after the
interests of refugees, handed over 10 bags of blankets, dozens pairs of
shoes, clothes as well as packets of food to the refugees who are staying in
Diepsloot in Johannesburg.

      Apart from Zimbabweans, the settlement also houses refugees from the
Democratic Republic of Congo, Angola, Burundi as well as some from Rwanda.

      Speaking at the hand-over ceremony at the weekend, Pastor Guvakuva
said it was their duty as the church to look after the material needs of the
poor.

      "It is not enough to just preach to the hungry but we have an
obligation to feed them when they are hungry and thirsty. We care for the
poor and those in difficult situations like the ones we are assisting
 today," he said.

      There are thousands of Zimbabwean refugees living in South Africa
after fleeing hunger and political persecution in their country. Because of
its proximity, South Africa is the destination of choice for most
Zimbabweans fleeing economic collapse at home. - ZimOnline


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Zimbabwe police arrest 200 for marching against monetary reforms

Zim Online

Mon 21 August 2006

      BULAWAYO - Police in Zimbabwe's second biggest city of Bulawayo on
Monday arrested 200 activists of the Women of Zimbabwe Arise (WOZA) protest
group for demonstrating against the government's currency reforms.

      Those arrested included men and women who were part of a group of
about 500 protesters who marched across the city singing songs denouncing
Reserve Bank of Zimbabwe (RBZ) governor Gideon Gono, the author of the
monetary reforms.

      The RBZ boss earlier this month introduced a new currency with less
zeroes and gave Zimbabweans up to 21 August to switch over to the new
currency as part of reforms he said were meant to restore dignity to the
near-worthless Zimbabwe dollar.

      Gono, who also devalued the dollar by more than 60 percent, also
ordered the police to seize from people holding amounts in excess of Z$100
million and companies holding more than $5 billion of the old money in cash.

      The RBZ chief said the cash seizures were meant to punish black-market
traders he accused of hoarding trillions of cash they used to finance deals
on the parallel market.

      A WOZA senior official Jenny Williams, told ZimOnline on Monday that
her organisation was particularly irked by the seizure of money from
individuals by the police and youths aligned to the ruling ZANU PF party.

      Williams said: "Nothing could be so disgusting. What we are saying is
that the government should stop brutalising its own people over its own
failures.

      "The illegal confiscation of peoples' money should stop forthwith and
sound policies that will ensure economic stability should be put in place."

      Police spokesman, Wayne Bvudzijena, could not be reached for comment
on the matter.

      A lawyer representing the protesters, Simba Chivaura, told ZimOnline
that the police had indicated that his clients would be charged with
inciting public violence and demonstrating without permission from the
police.

      Under the tough Public Order and Security Act (POSA), Zimbabweans must
first inform the police before embarking on any public demonstrations.

      But WOZA has often defied the law which human rights groups and the
main opposition Movement for Democratic Change party say has been used by
the government to stifle legitimate political dissent. - ZimOnline


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Zimbabwe villagers storm banks ahead of currency deadline

Zim Online

Mon 21 August 2006

      BULAWAYO - Thousands of villagers on Monday stormed commercial banks
and the Reserve Bank of Zimbabwe (RBZ) offices in the country's second
largest city of Bulawayo to exchange old currency for new money ahead of
deadline by end of business today.

      The RBZ gave Zimbabweans up to August 21 to hand in old bearer cheques
in exchange for new ones as part of sweeping currency reforms that also
included a 60 percent devaluation of the local dollar. The new bearer
cheques have less zeroes after the central bank slashed three zeroes from
every banknote as part of the currency reforms.

      Bearer cheques are promissory notes first introduced by the RBZ three
years ago at the height of cash shortages in Zimbabwe. They are not official
legal tender but are used in the same way as money.

      Long and winding queues could be seen at the RBZ's Bulawayo offices,
commercial banks and building societies as hordes of people mostly from the
countryside, who had failed to change large sums of money during the
three-week grace period, scrambled to exchange the old bearer's cheques.

      "The RBZ mobile team operating from Gokwe was overwhelmed by the
number of people exchanging the old currency and I had no option except to
travel to Bulawayo to change the money," said a woman who only identified
herself as Mai Chipo, explaining why she had travelled hundreds of
kilometres from Gokwe to exchange her money in Bulawayo.

      Other villagers said they had had to travel to Bulawayo because the
RBZ's mobile teams operating in their areas were refusing to change amounts
in excess of $10 million in old currency.

      Sources in the towns of Gwanda, Hwange, Plumtree, Beitbridge and
Lupane - all dotted across the vast Matabeleland region in the south-west of
the country - told ZimOnline that hundreds of people last night slept in
queues at banks and at temporary offices set up by the RBZ there as
desperation crept in as the deadline to hand in old currency drew closer.

      In Bulawayo, the RBZ office was open to members of the public on
Saturday and Sunday but still did not manage to clear the long queues and
hundreds of villagers slept in the queue outside the central bank's office
hoping to be the first to be attended to when the bank opened for business
on Monday.

      "I own 10 public commuter omnibuses and over the weekend we were still
accepting the old currency from customers and I came here early to exchange
my weekend earnings for the new currency, the queues are very long but I
have no option except to be patient," said Joseph Khumalo, who was at the
RBZ office laden with canvass bags full of old money.

      The same rush-hour panicking was visible in Zimbabwe's capital Harare
where by mid-morning banks were full to the brim with depositors hurrying to
literally dump their old cash in exchange for new money.

      Some retail shops and public commuter operators in the capital city
were reportedly refusing to accept old money, which however is still valid
until midnight today.

      A newspaper vendor who refused to accept old currency from a ZimOnline
reporter said: "Why should I accept this old money when even the big
supermarkets are refusing to accept it?"

      RBZ governor Gideon Gono has warned businesses and all financial
institutions to take old currency right up to the deadline but it appears
the situation on ground is far different from what the central bank chief
may be expecting to see. - ZimOnline


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Shaky start to new currency



[ This report does not necessarily reflect the views of the United Nations]

HARARE, 21 Aug 2006 (IRIN) - Confusion, chaos and protest marked the last
day of Zimbabwe's controversial currency switch-over, which saw one currency
becoming obsolete and another born in just three weeks.

Although Reserve Bank governor Gideon Gono set a deadline of the close of
business on Monday for the old currency as legal tender, many businesses,
including government organisations, stopped accepting the old denominations
last week.

The government-owned national railways stopped accepting the old money on
Saturday, leaving many passengers stranded. The railway network is generally
used by lower-income Zimbabweans.

Other businesses followed suit, setting their own deadlines for what they
would accept as legal tender. Taxi operator Nathan Hozheli said he had
stopped accepting the old currency before Monday's deadline, as he did not
want to be inconvenienced.

"The Reserve Bank of Zimbabwe has all but made it a criminal offence to
handle [the old] money, and many transporters and business people want to
avoid being scrutinised by the authorities," he said.

Gono surprised Zimbabweans when he announced in his mid-year monetary review
late last month that the old denominations would be withdrawn and replaced
by a new currency. The official exchange rate of Z$101,000 to US$1 was also
altered to $250 to one dollar. The parallel market, or black market rate,
was Z$600,000 to US$1.

The monetary reforms are designed to halt the economic meltdown: inflation
is hovering at 1,000 percent and unemployment levels are above 70 percent.

Roadblocks were set up across the country to search for cash in the run-up
to the changeover, and those in possession of more than Z$100 million had
their money confiscated, unless they had receipts proving where it had come
from.

The short notice and regulations that individuals could only convert Z$100
million a day led to stores and supermarkets reporting a nationwide shopping
spree as people tried to offload the old currency.

Many Zimbabweans kept their money at home after several banks were closed by
Gono shortly after he assumed the reserve bank governor's office in 2003.

Small-scale farmer Joseph Chipanera arrived on Monday in the capital,
Harare, from the rural area of Domboshava, about 100km east of Harare, to
buy maize seed and other farming implements to prepare for the upcoming
agricultural season, but the agricultural wholesaler refused to accept the
old currency.

Chipanera, like about 80 percent of other citizens who had lost confidence
in the banking system, kept his money elsewhere. "Because of the constant
need to withdraw money from the bank, and the fear that banks could collapse
anytime, I had stopped keeping money in the bank as I felt it was safer in
my house."

He said he had not heard of the currency reforms. "Some of us were not even
aware that there was a new currency - this was news to us. We cannot afford
to buy radios or newspapers to get information which was so crucial as
this."

According to reports about 180 demonstrators, mostly women, were arrested by
riot police in country's second city, Bulawayo, during protests over the
unpopular currency reforms. Jenni Williams, a spokeswoman for Women of
Zimbabwe Arise (WOZA), an advocacy group, reportedly said the march was to
press for meaningful economic reform.

Already, complaints have been made that there is not enough cash in
circulation and the design of the new currency is confusing: of the 13 new
notes, five are green in colour and could easily be confused in poor light,
while four notes are red.

The National Association of Societies for the Handicapped issued a statement
pointing out that "the recently introduced bearer notes are of the same
size, which makes it difficult for the visually impaired to tell them apart
in the absence of Braille."

Gono, who is in China in a bid to attract foreign investment, told the local
media there would be no extension of the deadline, but businesses would be
permitted to exchange old currency for the new denominations through the
central bank on Tuesday.


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Chaos as Zim makes currency switch

IOL

          August 21 2006 at 07:41PM

      by Fanuel Jongwe

      Harare - Zimbabweans struggled to offload soon-to-be worthless cash on
Monday as chaos and confusion prevailed ahead of a midnight deadline to
convert to a new currency aimed at combating galloping inflation.

      Banks extended their working hours to cater to crowds who came to
dispose of their old notes while others went on shopping sprees in Harare
supermarkets and shops which were still accepting the old currency.

      "We would have normally closed two hours ago but we are keeping our
doors open as long as we have people coming in," a teller at a bank in
Harare's main shopping mall said, as crowds stood patiently in line to hand
in the old bearer cheques.

      "We are trying to make sure that our clients don't suffer losses as a
result of the (currency) changeover so we will remain open until the queues
are cleared."

      Others went on shopping sprees at outlets accepting the old money.

      "I am buying all these things but I don't really need them now," said
Malvin Pachirera, a businessman, carting a trolley filled with groceries at
a leading store.

      "I would rather buy these things than lose all my money when it
expires today."

      In a move aimed at fighting runaway inflation, Zimbabwe's Reserve Bank
(RBZ) slashed three zeroes from its currency on July 31 and set a 21-day
ultimatum which expires at midnight Monday for old notes to be handed in.

      Analysts meanwhile warned that many in the impoverished southern
African nation, particularly those in rural areas, risked losing their
savings and being stuck with notes that central bank chief Gideon Gono said
would become "garden manure".

      Zimbabwe's economy has been on a downward spiral over the past seven
years, suffering from inflation running at around 1 000 percent and high
employment with at least 80 percent of the population living below the
poverty threshold.

      Thousands of passengers trying to commute into Harare on Monday were
left stranded as bus operators rejected the obsolescent bank notes, defying
a central bank order to accept the currency until the close of business.

      Many small retailers also refused the old money although those who did
agree to accept payments in the old currency enjoyed brisk business.

      "I have tried several shops but they are not taking the old money,"
said one dejected shopper, Senia Godzi.

      "I will have to catch a bus to one of the townships where shops are
still taking the old money."

      Economist David Mupamhadzi said that many people living outside the
major cities did not know about the currency reforms and were unaware that
their savings were soon to turn into worthless bundles of paper.

      "Our main concern is what will happen to those in the rural areas and
other outlying areas who did not hear about the deadline," he said.

      Political and social analyst Elizabeth Marunda called for an extension
of the deadline. But central bank boss Gono has ruled out "a general amnesty
or extension to the deadline given in the first place."

      After announcing the switch-over, the reserve bank put a limit on
amounts that could be deposited in banks in an apparent crackdown on cash
hoarders often accused of fuelling a burgeoning parallel foreign currency
market.

      Shopowners were also barred from accepting cash payments of more than
ZIM$100-million (about R2 800).

      Those found with cash exceeding the limit were asked to reveal its
source or forfeit the money and face prosecution for money laundering. -
Sapa-AFP


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Frenzied offensive to get leaders to mediate in Zimbabwe's festering impasse


      Cape Times (SA)

      Date published:Mon 21-Aug-2006

      Comment

      By Peter Kagwanja

      An economy gliding to a dangerous halt has forced Zimbabwe on a
frenzied diplomatic offensive to get African leaders to mediate its
festering political impasse. On the sidelines of the July Africa Union
Summit in Banjul, Gambia, President Robert Mugabe backed former Tanzanian
president Benjamin Mkapa as mediator. But Mkapa has a tall order to succeed
where South Africa and the AU have dithered. Any diplomatic initiative will
be dead in the water if regional leaders buy into Harare's official line
that its woes are rooted in its strained relations with its former colonial
power, Britain. African leaders and the international community must now
insist on an expanded mandate, reminding Mkapa that the trouble with
Zimbabwe is squarely one of failed leadership. The speed and ferocity with
which democracy and the economy have hurtled downwards have firmly put
Zimbabwe on the global map of countries at risk of chaos and anarchy.
Mkapa's proposed mediation comes against the backdrop of failed
interventions.

      South Africa's "quiet diplomacy" response to the Zimbabwe crisis has
been widely accused of emboldening authoritarianism and weakening democratic
forces. With the spectre of a failed state on its doorsteps looming even
larger and threatening regional peace and security, Pretoria's policy
pundits are rethinking their quiet approach in favour of a tougher one.
Mkapa's initiative gives South Africa the requisite space to take a strong
stance in defence of human rights and good governance in Zimbabwe. On its
part, the SADC's backing of Harare's official dictum that the country is
paying for its seizure of white farms has drawn fire. "The country is being
made to pay for economically liberating its own people," insists a SADC
official. Zimbabwe is a classic case of the tail wagging the dog. Regional
diplomats concede that "Mugabe is larger than the SADC". Mugabe's clout
casts doubts on Mkapa's ability to steer an independent mediation course
with the SADC.

      Solidarity as the touchstone of regional diplomacy has hampered the
SADC's action, including on Zimbabwe's Operation Murambatsvina, which
displaced 700 000 people and affected 2.4 million others, pushing the
economy to the brink. Sadly, the region is reaping the whirlwind of an
economy dangerously spinning out of control. Some 2-3 million refugees (over
2 million of them in South Africa) are straining social services, jobs and
housing, stoking undercurrents of xenophobia and feeding into cross-border
criminalities, contrabands and cash-in-transit heists. The AU's official
mindset that "Zimbabwe is a hot potato" has hindered any form of action. But
under pressure to respond to Zimbabwe's urban evictions in June 2005, the AU
Commission chairman, Alpha Konare, dispatched Tom Nyanduga as his special
envoy to assess the situation. However, Harare's decision to deport the
envoy neutered the attempt. Zimbabwe's rejection of former Mozambican
president Joachim Chisano as mediator appointed by the AU chairman,
Nigeria's President Olusegun Obasanjo, scuttled the possibility of
inter-party dialogue.

      Repeated rejection of the resolutions of the African Commission on
Human and People's Rights critical of Zimbabwe on technicalities rather than
substance, has chipped away at the integrity of the AU. "If we continue to
throw out every human rights report that comes before us, people out there
will stop taking us seriously," warned an AU official. Failure to clinch a
deal on Zimbabwe is widening the gap between rhetoric and reality in the
AU's emerging good governance and security architecture, guided by President
Thabo Mbeki's precept of an African Renaissance. Similarly, failure by the
prompters of the New Partnership for Africa's Development (Nepad) to turn
the tide in favour of good governance in Zimbabwe has cast a dark shroud
over its credibility. The support for Zimbabwe at pan-African level appears
to be dwindling, prompting Mugabe's recent broadside against his colleagues
as cowards for not standing up to the West over Zimbabwe. His waning
continental clout has left the SADC as the last bastion of power, explaining
its choice as the framework of the Mkapa mediation.

      Mugabe's exit and the restoration of democracy are driving
international advocacy on Zimbabwe. But the puzzle remains how to achieve
them. Few expect Mkapa to resolve this dilemma. Policy prescriptions
inspired by diverse shades of a "regime change" response to global security
and promotion of democracy have won Zimbabwe sympathy and camaraderie from
the most unexpected allies like North Korea, Iran, Cuba and Venezuela. The
failure of Zimbabwe's badly splintered opposition to exploit the air of
discontent after the March 2005 elections and Murambatsvina to mobilise a
popular uprising along the lines of the Orange or Velvet revolutions in
Eastern Europe diminished international faith in its ability to spearhead a
democratic revolution. Targeted international sanctions by the European
Union and the US have had minimal impact on forcing the regime to restore
democracy. Chinese support for Zimbabwe has undermined Western pressure,
with its veto potentially preventing the West from bringing the issue into
the UN Security Council. But Zimbabwe's offer of minerals is hardly
sufficient to keep the oil-thirsty China in the game.

      The Mkapa initiative offers a way out of the current policy conundrum,
despite the cynicism surrounding it. UN Secretary General Kofi Annan backed
Mkapa during his discussion with Mugabe in Banjul, abandoning his own
intervention plan involving a trade-off between an aid package and Mugabe's
exit timetable. But the UN still has a role to enhance the capacity, clout
and usefulness of the Mkapa initiative by appointing an envoy and providing
financial and technical support. The Commonwealth can also provide technical
and material support, although Mugabe pulled out of the club after its 2003
Abuja summit extended Zimbabwe's suspension for gross human rights
violations. Mkapa has access to Downing Street, enjoys relative stature and
prestige, and has the backing of the newly elected Tanzanian president,
Jakaya Kikwete, himself an ally of Pretoria's. But, critically, his success
depends on an expanded mandate and an all-inclusive mediation that brings
civic and political actors on board. The intervention must go beyond the
parochial focus on Mugabe's strained relations with Tony Blair.

      Dr Kagwanja is a Research Associate with the Centre for International
Political Studies. He spoke at the Goedgedacht Forum recently on the impact
of the situation in Zimbabwe on good governance in the SADC


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South Africa Fails Zimbabwe



Sunday Times

OPINION
August 20, 2006
Posted to the web August 21, 2006

Brendan Boyle
Johannesburg

PRESIDENT Robert Mugabe could not have come this far down the road towards
the total collapse of the nation he wrested from colonial misrule 26 years
ago if South Africa had not turned its back on its neighbour. President
Thabo Mbeki and his government have successfully screened Zimbabwe from the
international scrutiny that could have changed the way the world deals with
the country's crisis, according to participants at a two-day conference on a
Cape farm this week.

Condoning Mugabe's excesses has had a regional cost as well. In the absence
of hard numbers, delegates estimated that at least two million Zimbabweans
have sought refuge in South Africa, with hundreds of thousands more moving
to Botswana and Zambia.

The symbiosis that should boost tourism to all countries in the region has
been uncoupled by the Zimbabwean crisis, with collateral damage to the
reputations of its neighbours. Trade in the region is well down.

In ways more costly, however, is the damage to South Africa's good name
caused by the country's failure to defend across its border the principles
that have made it the poster child of emerging democracy.

"Our ability as a country, as a region, as a continent is undermined when
our own track record is as poor as that," said Human Rights Commission head
Jody Kollapen.

For understandable if flawed reasons, Mbeki's government preferred the
apparent security of authoritarianism in Zimbabwe to the certain risks of
anarchy and opted to consolidate rather than to challenge the grip on power
of Mugabe and his Zanu-PF party.

"Zimbabwe has never had a better foreign minister than Thabo Mbeki," said
Peter Kagwanja, Southern Africa director of the Brussels-based International
Crisis Group. Mbeki had helped to keep Zimbabwe off the UN agenda and had
condoned delaying tactics to prevent even the African Union from tackling
it.

"We can't rely on South Africa, which is a pity because the international
community will come to the table only through South Africa," said another
delegate. The independent Goedgedacht Forum for Social Reflection convenes
periodic conferences on issues of concern to South Africa. Introductory
speeches are on the record, but discussion is not attributable to individual
speakers.

Black and white Zimbabweans were scathing in their criticism of South
Africa's direct and indirect support of Mugabe, to the point that a young
South African protested when one of them referred to the Zimbabwean
president as a "bastard" and warned that this country could be heading down
the same path to ruin.

"When will you South Africans see what is going on? When will you see our
pain?" said one of the visitors, who were not only from the camp of the
opposition Movement for Democratic Change (MDC).

Kollapen said South Africa had betrayed the people of Zimbabwe and its own
standards of human rights and governance.

"If we assess our response to Zimbabwe and if we are frank then we have
failed quite miserably. We have failed to demonstrate the solidarity that we
should as people, and we have failed to display to our people, to the region
and to the world that we value the common standards we have set so much that
we are prepared to bring to book and to hold accountable those who infringe
those standards," he said.

Though Mugabe has managed to shut down the television cameras that mobilised
international outrage with graphic footage of the farm invasions five years
ago, the facts if not the images of Zimbabwe's decline are available to
anyone willing to look for them on the Internet.

Hunger, hyperinflation, unemployment for three out of four job-seekers, the
near collapse of the energy, transport and water systems, trade and
manufacturing in free-fall and grace and favour for the military and
political elite around Mugabe are not news to most South Africans. But the
detail can be harrowing. One Zimbabwean broke down as he described the lived
reality of Mugabe's ruined state.

While South Africa and the region looked forward to unprecedented economic
growth, Zimbabwe's economy was shrinking faster than any other in the world,
said University of Botswana Professor Balefi Tsie. On average, Zimbabweans
could expect to die by the age of 37, one of the world's lowest
life-expectancy thresholds and down from 63 less than a decade ago, he said.

If the world's media had the access there that they do in Lebanon, their
stories and pictures would galvanise world condemnation and put Mugabe on
the ropes.

The international community would less easily tolerate a state that turns
nearly a million people out of their homes and then kicks 300 of them out of
the church where they sought refuge if their slow death over the following
months was screened on the European evening news.

One angry young Zimbabwean said waiting for South African help would be like
waiting for the sun to freeze and argued it was time for the MDC, of which
he was not a member, to make the country ungovernable. The youth were ready
to fight, but they needed strong and inspired leadership, he said.

Eddie Cross, the MDC's policy co-ordinator, said Thursday's deadline for the
limited 1000-to-one conversion of old Zimbabwe dollars to the new currency
could be the spark that ignites a popular revolt. The scheme will strip
millions of the little wealth they have retained.

"I don't think we can take much more. If the government sticks to this
deadline there is going to be a revolution. I think all hell is about to
break out in Zimbabwe," Cross said.

But calling for the kind of popular revolution that had toppled regimes in
Eastern Europe was naive, said former University of Zimbabwe Professor Brian
Raftopoulos, who now heads the Transitional Justice in Africa Programme at
the Institute for Justice and Reconciliation in Cape Town. "There is a lot
that can be done, but we have to plan for a long struggle. No one has done
it alone in Africa. Zimbabwe needs allies and pressure outside."

Chris Maroleng of the Pretoria-based Institute for Security Studies offered
four scenarios for Zimbabwe's medium-term future. "Most likely is continued
slow decline with Zanu-PF and Mugabe trying to ensure regime security. The
losers will be the people of Zimbabwe," he said. The alternatives were an
unlikely political compromise between Zanu-PF and the MDC, the
reconstitution of the ruling party under a new leadership and mass revolt.

South Africa has thrown its weight behind Maroleng's third option, an
attempt to reinvent Zanu-PF under a new leadership. It has been known for
some time, though never officially confirmed, that Pretoria sought to groom
former finance minister and Southern African Development Community chief
Simba Makoni while it tried to persuade Mugabe to go into dignified
retirement.

Now that Mugabe has rejected Mbeki, too, the South African plan seems to be
to wait him out and to prepare for his demise.

"Mugabe can't live forever. This will pass and we just have to wait," said a
government official who was not at the Goedgedacht meeting.

Mugabe has deliberately rebuffed international efforts to negotiate a
resolution of the crisis. UN Secretary-General Kofi Annan's bid was spurned
and even African envoys suspected of carrying an internationalist mandate
have been turned away.

Mugabe has now nominated former Tanzanian leader Benjamin Mkapa as mediator.
The SADC was expected to ratify his role at this week's Lesotho meeting, but
few expect much because the terms of reference refer solely to healing
Zimbabwe's relationship with Britain. Posing the problem as one of British
delivery on ancient promises has been key to Mugabe's containment strategy,
which has kept Zimbabwe off the UN agenda. Since he knows the first targets
of international intervention will be his retirement and a free election his
party is unlikely to win, Mugabe's strategy won't change.

And since Nigeria surrendered former Liberian leader Charles Taylor to a
UN-backed war-crimes tribunal sitting in The Hague, the chance of Mugabe
being persuaded into retirement is slim if his party is not impregnable in
power.

The options for South Africa and for South Africans are therefore few. The
best this nation can do is to heed Kollapen's call, echoed by many, to go
back to our fundamental belief in the defence of human rights and good
governance everywhere.

Raftopoulos called for a pan-African citizenship based on an unassailable
commitment to common principles. Kollapen said sovereignty should never be
interpreted as a right to abuse one's own citizens. The Zimbabwean visitors
to the Goedgedacht farm asked only for the solidarity in their time of need
that their mothers and fathers offered in the struggle for South Africa's
freedom.

"The democracy we have put in place is a vibrant one, but a very fragile one
as well," said Kollapen. "This should be for South Africa an opportunity to
take stock of our own democracy. There is no guarantee that we cannot go the
direction of Zimbabwe."

Expediency is a reasonable choice for a government, but only when it is one
of a range of correct responses to a challenge. Doing the right thing is
always the right thing to do. Blocking our eyes and ears to the plight of
the people next door is not.


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SA, Zim launch migration office at border

IOL

          August 21 2006 at 02:28PM

      Johannesburg - Labour Minister Membathisi Mdladlana and Nicholas
Goche, his Zimbabwean counterpart, will open an office at the Beit Bridge
border post on Friday, the Department of Labour said.

      The office's main function would be to curb illegal migration, cheap
labour, the abuse of labour laws and rampant crime, labour department
spokesman Mokgadi Pela said on Monday.

      "The office, a first of its kind in Africa, will help Zimbabweans
seeking employment in South Africa with legal papers," Pela said in a
statement.

      He said the office would be a major recipient of about 2 000
Zimbabwean deportees repatriated on a weekly basis from South Africa.

      "The centre will also provide deportees and other people in need of
legal documents with food and other basic amenities while their documents
are being sorted out.

      "The office includes among others, an HIV/Aids counselling centre. It
will also serve as the centre point for the World Food Programme ... " he
said.

      Pela said the office's opening followed site inspections which
Mdladlana and Goche conducted earlier this year.

      Mdladlana and Goche had earlier said the office would help reduce
illegal migration and the abuse of Zimbabweans by unscrupulous employers,
Pela said. - Sapa


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Fuel Prices - Filling Stations Defiant



The Herald (Harare)

August 19, 2006
Posted to the web August 21, 2006

Harare

MOST filling stations in Harare yesterday defied a Government directive to
slash fuel prices with immediate effect, saying they risked incurring losses
since they had acquired it using foreign currency obtained from the black
market.

Panic-stricken motorists formed long winding queues at filling stations that
had fuel in anticipation of a fuel shortage that might be triggered by
dealers in response to Government's decision to slash fuel prices.

"We are afraid that the dealers might divert fuel to the black market in
response to the Government directive.

"We have to fill up our tanks now because you never know. Others are buying
in containers in anticipation of an artificial shortage," said a motorist
who declined to be named.

The Government on Thursday fixed the price of petrol and diesel at $335 and
$320 per litre, respectively, for all users in the country.


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SA bid to shield assets in Zi

News24

m
      21/08/2006 18:46  - (SA)

      Cape Town - The South African government is trying to protect its
citizens' rights in the face of Zimbabwean nationalisation moves.

      SA Foreign Minister Nkosazana Dlamini-Zuma said on Monday the
government was "continuing to pursue" its efforts to get the outstanding
bilateral investment protection agreement (Bippa) signed by Zimbabwe to
protect commercial interests of South Africans in that country, .

      In reply to Democratic Alliance chief whip Douglas Gibson who asked
whether the South African government had noted the Zimbabwe government's
plan to nationalise all mines in that country and what action the South
African government intended to take in this regard, the foreign minister
said:

      "The government has noted the government of Zimbabwe's intention to
acquire 51% interest in mining companies involved in energy minerals, as
well as a 51% share in all precious metals and gemstones mines.

      "The proposed changes to the Mines and Minerals Act were approved by
the cabinet of Zimbabwe.

      "But these changes still need to be converted into a bill of
parliament before they can be enacted as a full amendment to the Mines and
Minerals Act.

      "The government is still waiting to see what the outcome of these
proposed changes would be."

      Asked by Gibson whether the government intended taking action to
protect South African commercial interests in Zimbabwe, she said: "The
government is continuing to pursue its efforts to get the outstanding
Bilateral Investment Protection Agreement to protect the commercial
interests of South African nationals in Zimbabwe."


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Gono off to China as chaos engulfs currency reforms

New Zimbabwe

By Staff Reporter
Last updated: 08/22/2006 01:57:38
ZIMBABWE'S central bank governor quietly slipped out of the country as chaos
engulfed the nation leading to Monday's switch-over from old to new bank
notes.

Reserve Bank Governor Gideon Gono left for China on his latest globetrotting
mission in search of a rescue package for the country's flailing economy, it
was confirmed Monday.

Finance Minister Herbert Murerwa confirmed that Gono had led a delegation to
China, but would not give reasons for the trip.

Murerwa said: "Yes, the governor is in China. That is all I can say."

Gono's decision to leave the country before Monday's switch-over paints a
picture of calm, but Harare was all but calm on Monday as Zimbabweans rushed
to spend or exchange the old currency for new bank notes.

The currency change is the centre piece of an RBZ strategy to thwart money
hoarders who were holding onto large sums, mainly for trade on the thriving
black market.

President Robert Mugabe has made several trips to the Far East in recent
years as part of his 'Look East Policy'.

Mugabe's government has signed several concessions, using minerals as
security to obtain foreign loans and aid.

Sources said Monday that Gono's visit is a follow-up on Vice President Joice
Mujuru's recent trip to China during which she signed a number of deals -
including a controversial US$60 million deal that will see China improve
Zimbabwe's state TV and radio transmission in exchange for chrome.

Gono has made several foreign trips in recent months, including forays into
Russia and South Korea in a bid to attract foreign investments after most
European countries scaled down investment in Zimbabwe.

Last month, Gono was in Mozambique to learn about the country's currency
reforms, before his announcement at the start of August that the central
bank was striking off three zeros from Zimbabwe's inflation-hit currency.


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Zimbabwe: a revolution postponed

New Zimbabwe

By Lloyd Msipa
Last updated: 08/21/2006 18:59:27
IT IS an agreed standpoint among the democratic opposition forces in
Zimbabwe, that the current government of Zimbabwe is illegitimate following
the stolen or rigged elections of 2002 and 2005.

If we are in agreement this is their position, it then follows that
Zimbabwean opposition politicians are hypocrites themselves.

The reason I say this is because, if we pursue the concept of illegitimacy,
it is defined 'as something unlawful or not in accordance with the law'.

Put in the context of governance, illegitimacy would mean that the
government of the day does not have the blessing of the electorate to
govern. From a world perspective theoretically, an illegitimate government
is not able to enter into diplomatic relations, bilateral, multilateral
agreements or otherwise with the legitimate governments of this world.

The question that arises then is, why do the opposition democratic forces in
Zimbabwe continue taking part in the governance business in a country with
an illegitimate government, and at the same time claim to be pioneers of
democracy? This is hypocrisy at its worst. The arguments put forward by its
leaders include that of compromised democratic space as a result of the
legislation in place including POSA and AIPPA, and how "we want to change
things from within by influencing policy". This is not, at least for me,
sufficient an excuse for compromising a democratic struggle. We are all
mindful of the legislation that was in use before the independence of
Zimbabwe, the Law and Order (Maintenance) Act, passed in 1960, which
suffocated dissent.

The refusal of the Rhodesian Front regime to embrace democratic reforms led
to an exodus of young Zimbabweans who organized themselves outside the
country in what eventually became the Patriotic Front. Today, the country's
political situation has come full circle. We now have a similar situation
before us.

There is no democratic space for those leading the democratic resistance.
Can the real liberators please stand up. Is it possible that we have pseudo
businessmen and women masquerading as the opposition? The calls by the
democratic forces for a "peaceful resistance" in order to drag the current
regime "kicking and screaming" to the negotiating table will obviously come
to naught. Why? Because I know of no case in history, where a "peaceful
resistance" convinces a government to talk, let alone hand over power.

Considering that the democratic forces' claims of the 'illegitimacy of the
Harare government' have not been followed by concrete action on the ground,
it is no wonder the rest of the world, including their own kith and kin
within the SADCC States have not taken them seriously. They do not walk the
talk. The Patriotic Front, despite the draconian limitations of the Law and
Order maintenance act, managed to organise themselves into a formidable
force outside the country to a point where they constituted a government in
waiting. In fact they commanded greater legitimacy as a government in
waiting than the then ruling Smith regime in the eyes of the world. Hence
the support from neighbouring states. Has it not crossed anybody's mind as
to why the opposition forces are not openly supported by the neighbouring
countries? Why do they have to travel far and wide to get any forum or
platform?

One then wonders, if the democratic forces' claim to legitimacy has any
substance. If it does, why then do they continue to govern together with
those that constitute or are an illegitimate government? One would assume by
now they would have formed their own government in exile and then proceed to
lobby the rest of the world into recognising them as the legitimate
government of Zimbabwe.

A government in exile consists of a political grouping that claims to be the
country's government, but for various reasons is unable to exercise its
legal power, and instead resides in a foreign country. Governments in exile
operate under the assumption that they will one day return to their country
and regain power. There are numerous examples of where popular opposition
forces have taken this route to power. Examples of governments in waiting
include the Western Sahara's Sahrawi Arab Democratic Republic (SADR) based
in Algeria. The government of Somalia exiled in Kenya.

Is it possible that the democratic forces are so set in their ways that they
do not see themselves living the life of refugees in foreign countries? It
is often argued that real liberators in any struggle are people with nothing
to lose. Considering that the majority of the opposition members have jumped
onto the gravy train and now own farms and other property courtesy of the
ruling party, it would appear they have something to protect. Will we ever
see a real struggle in Zimbabwe with the current crop of leaders in the
opposition? They seem to have refused to compromise their comfort zones for
the greater good. How then can they claim to have the interest of the people
of Zimbabwe at heart if they are not ready to make these sacrifices?
Obviously the new breed of liberators are not prepared to forego their 'hard
won' parliamentary seats, plush offices and their suits for a life in exile.

Our history is quite clear as to the sacrifices made by the old guard that
run the country today. They were in and out of Zimbabwe via informal border
posts, detained numerously for breaching the infamous Law and Order
Maintenance Act, under the Ian Smith regime. One old timer I bumped into the
other day told me, he remembers leaders of the Patriotic Front going from
door to door clad in their safari suits soliciting for financial
contributions for their cause in the seventies. They would spend a good ten
minutes talking to you by your door about their struggle to liberate
Zimbabwe. If this was not commitment, then I do not know what is.

The hypocrisy displayed by the so-called democratic forces is what lends
legitimacy to the Harare government. These men and women, it seems, have
carved themselves a piece of the national cake; hence the lukewarm approach
to a people's struggle.

Lloyd Msipa is a lawyer and writes from London in the United Kingdom. He can
be contacted at lloyd.msipa@ntlworld.com


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Text of letter to GONO form WOZA MOYA


      21 August, 2006

      GONO - A REAL HERO DOES MORE THAN REMOVE ZEROES WOZA does not believe
that this 'sunrise' of yours will bring a better tomorrow - only more
suffering for the people who have always carried the burden of government's
incompetence.

      It is not the ordinary people of Zimbabwe who are the criminals and
economic saboteurs but the government, RBZ and all its cronies!

      Operation Sunrise is further testimony of a government at war with its
own people. Our uniformed forces should not be 'used' and 'abused' to bring
about economic revival. But Operation Sunrise is not about economic revival.
It is just another desperate measure by a government desperate trying to
control us - people already on our knees weighed down by problems, trying to
survive.

      Already we are faced with daily harassment by children dressed up to
commit evil that many adults are too embarrassed to carry out. As we travel
around we are treated like criminals, illegally searched and intimidated.
Many have been robbed of our life savings as we tried to reach banks to
change it into new currency. Some women were even stripped naked by youth
militia trying to 'earn' the 40 million promised to them. Our rural members
are afraid to travel to banks to deposit their money, as they will have
their money stolen at roadblocks by your thugs.

      You did not even bother to respect us enough to do education and
groundwork before launching this operation. As a result we are seeing your
thugs making up the rules as they go and abusing power. It seems you wanted
chaos and it is what you achieved. Whilst you are harassing us the real
criminals are going free with their trillions.

      Did you think? Having larger notes will only make life a little easier
for a short time - we are already seeing prices going up and the zeroes
coming back.

      You have stolen from us at roadblocks and now we are seeing
free-for-all prices increases. For how much longer must we pay the price for
your bad to non-existent economic policies?

      The 21-day deadline is another way of cheating us. You have not given
enough time to allow us to understand the new money or for enough of it to
be in circulation. Shops are already refusing to accept old currency and yet
they are giving it to us in change.
      Mozambique is used as an example of a country that successfully
dropped its zeroes but it gave its citizens six months to adjust and its
economy was already growing - not crashing like ours.

      You and the other leaders of this government have shown yet again that
you don't have any constructive ideas to rebuild our economy - you are, as
usual, destroying and stealing what little we have sweated blood to make.

      WOZA says enough is enough. We want our dignity to be restored. WE
WANT REAL MONEY. We don't want to be bankrupted by the printing of paper
that has no real value. What kind of sovereignty is this when we do not have
our own currency?

      We also want GENUINE solutions to our economic problems implemented
with consultation. Slashing zeroes is a sign of terrified people who don't
know how to cope with the inflation you call the 'venomous monster'. To us
there is only one venomous monster and that is the ruling party who rule by
force and are corrupt. THERE CAN BE NO ECONOMIC SOLUTION WITHOUT A NEW
POLITICAL DISPENSATION. It takes more than a banker to provide real
solutions - it takes a real hero - and the only heroes we see are those
standing shoulder to shoulder with us, holding you, and the masters you
serve, accountable.
      You can detain us but you cannot detain the truth!
      Warova mukadzi warova dombo - Strike a woman and you strike a rock -
Uthinte umfazi uthinte imbokodo

      SW Radio Africa Zimbabwe news


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Illegal Gold Miners Invade Cemetery



The Herald (Harare)

August 19, 2006
Posted to the web August 21, 2006

Chakanetsa Chidyamatiyo
Harare

ILLEGAL gold miners have invaded a cemetery in Concession and tampered with
a grave amid reports that they have also rendered 16 hectares of land in the
area unsuitable for farming.

The miners have created deep shafts and gullies on three farms whose soils
they believe are rich in gold.

Apart from desecrating burial grounds at Manyewe South Farm, the illegal
gold diggers are also accused of stealing property and poaching fish.

"There are graves down there. The panners also excavated soil on one of the
graves and we have been forced to hire people to guard the cemetery," said a
farm worker who spoke on condition of anonymity.

He said the illegal gold miners had adversely affected farming activities,
with some of them digging shafts up to about 20 metres deep.

They do not reclaim the gullies and shafts, which posed a hazard to both
residents and livestock.

At neighbouring Somerset Farm, owner Mr Daniel Mapfumo Gede said the gold
diggers had rendered barren about six hectares of land.

"I have failed to utilise my land fully because of these people. They are
now digging in my fields and I have lost seven beasts since the beginning of
the year," said Mr Gede.

He said the cattle had broken their legs after falling into the deep shafts
and pits.

Mr Gede said he had made several police reports but described them as futile
since the panners returned to cause more havoc soon after paying admission
of guilt fines.

In one incident, the gold miners are reported to have kidnapped and
assaulted one of Mr Gede's workers.

Some, he said, rushed to make false assault reports to the police if he
dared challenge them to stop their activities.

"Whenever I confront a panner, the police come and arrest me for assault. So
far, the police have opened three dockets for assault in my name," he said.

Mr Gede spoke as he prepared to leave for the police station where he was
due to make yet another warned and cautioned statement on fresh allegations
of assaulting an illegal gold miner.

Ms Sheona Rushwaya of Falling Waters Farm was facing similar problems with
gold miners.

She was living in perpetual fear that the miners would set her huts on fire
if they discovered that she had reported them to the police.

Guramapudzi Dam situated on her farm was now silted, threatening not only
her farming activities, but water supplies to Bindura.

"If you go along Guramapudzi River, you will discover a long stretch of mud
that extends for about a kilometre," she said.

Despite leaving a trail of destruction in their wake, the miners also poach
fish in the dam for their lunch and supper.

"They have also dug deep pits close to my homestead. Life is very difficult
for us here," she lamented.

But Mr Gede and Ms Rushwaya are not alone in this predicament.

Another Manyewe South farmer who did not want his name published for fear of
reprisals, was not sure how to handle a miner who claimed he had permission
from the Mining Commissioner to dig for gold close to his farmhouse.

The farmer showed The Herald three letters, including one from the Natural
Resources Board (NRB) declaring the area as unsuitable for mining.

"The area inspected shows that a mine is being established by a Mr Zhanda.
The area is not suitable for mining as it is on grazing land, too close to a
graveyard and too close to the farmhouse," read part of the letter from the
NRB.

The farmer said the miner was threatening his farming activities since only
15 out of 134 hectares were arable yet the miner had laid claim to 10
hectares, leaving him with just five hectares.

Police in the area confirmed receiving several reports of disputes involving
farmers and illegal gold panners and had launched investigations.


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Let my people go



The story of Moses in the Old Testament chronicles the time when the people
of Israel liberated themselves from slavery in Egypt. In the story, Moses
goes to Pharaoh and demands that he allow the Jews to leave Egypt and travel
to a land that has been promised to them by God. Seven times this demand was
made and in an unusual aside, the Bible says that God "hardened Pharaoh's
heart" and he denied them their freedom.

There was more to that of course - there were nearly 3 million Jews in Egypt
and they formed the backbone of the indentured labour and much of the
administrative skills needed to run the country. It was only after every
Egyptian family had lost a child that the Egyptians drove the Jews out and
they were able to flee into the desert and eventually enter to Promised
Land.

I do not want in any way to draw a parallel to this story and the struggle
for freedom that we are engaged in here, but there are similarities. We have
prayed, our people have suffered and we have had no outside help and indeed
cannot expect any help. We are virtual slaves to Zanu PF who run a
kleptocratic State that keeps the rest of us working hard and poor.

The conditions under which we are living are pretty horrific - all our civil
liberties are being violated, we are short of all the basic foods, our
average life expectancy has halved in a decade and is now one of the lowest
in the world. We live in a country where the GDP has halved since 2000,
exports are down by two thirds and 80 per cent live in abject poverty. Yet
those in power live the life of Pharaoh - luxury homes, every convenience,
frequent first class travel and ample supplies of all that they need - in
the process stealing a third of our annual GDP or more. They also control
the armed forces and the State and are willing to use both in the ruthless
pursuit of power and security. If you want to escape their grasp, you must
swim the Limpopo and live in the desert of our neighbor's inhospitable slums
for what will seem like 40 years.

We have raised up leadership that has demanded our freedom - first in the
late 90's when they demanded some say in how we were governed, then in 2000
when we demanded a new constitution of our own choosing, and then in 2000,
2002 and 2005 in hotly contested elections on a totally subverted playing
field. We have demanded our freedoms in the Courts, fighting successive
battles to get the Courts to hear our case for freedom - after each of the
past three elections and been denied justice by a subverted legal system.

I make that 6 challenges - one remains and that is now rapidly approaching.

We could say that each time we have challenged Pharaoh he has simply
hardened his heart and increased our burdens. Will this final challenge be
the one that breaks the back of Pharaoh's will and sparks a willingness to
let our people go? Perhaps it is that point in our story.

Certainly if God was working behind the scenes you can see the results. On
Monday we see the old bearer cheques lose their value and there is consensus
that this will lead to chaos. People in the remote rural areas have not even
heard the news, the Banks are simply swamped, there are not enough of the
new notes available to exchange with the old. Trillions of dollars will be
wiped out and fortunes lost on Monday - and it will not be the rich and
powerful or the crooks who suffer, they have their positions well covered,
it is going to be the millions of the poor and disadvantaged who will be the
main victims.

Right now, just to compound the problems of the people, there is no maize
meal available. I think Zanu PF actually believed their own fiction that we
had grown 1,7 to 1,8 million tonnes of maize. We have stated as often as we
can that this is pure fiction and make believe. If, as I estimated some
months ago, we have only gown about the same as last year (750 000 tonnes)
then this will have already been exhausted as people will have held onto
stocks for their own use and what little surplus would have been traded or
eaten by now. The price of this basic staple has doubled overnight - if you
can get some. We brought a truckload of maize meal into town yesterday and
it was sold out in 30 minutes.

I bought some Rand for a trip to South Africa last week - at 65 000 to 1.
When I came home 6 days later, the price was 90 000 to 1. Fuel is in very
short supply and prices rise daily. The army officer who runs our Energy
Ministry declared this week that fuel prices would be fixed at half or less
their present value and that they "had plenty of fuel to meet our needs".
The immediate reaction of the trade was to simply stop trading. The Minister
of Industry weighed in and declared a 3-week price freeze - in an
environment where our prices are doubling every two months. He was ignored.

We must pay our staff on Friday next week - 850 000 workers expect to be
paid their pittances, 10 days later we must pay school fees for three
million kids. Nearly all of these transactions will be in cash. We simply do
not have the smaller denominations needed for these payments. There is no
sign of them being available. I will try to draw change on Monday, but I
have little expectation that it will be available. Yesterday we were still
trading at about 90 per cent in the old notes.

The Egyptians had everything on their side - armed forces, control of the
State, regional hegemony. They felt that the Jews constituted no threat and
would never rise up against the authorities. They were regarded as being
compliant and subservient.

In the end the Jews won - without arms and without fighting and the price
paid be Pharaoh and his cohorts was terrible in every way. They were
virtually wiped out and never again really recovered. All the Jews had to do
was walk and trust God. I have a strong sense that this time something
extraordinary is going to happen and that when it is all over, Zanu PF will
be no more. The Promised Land - that is quite a way off, but at least we
will be free and walking in the right direction!

Eddie Cross
Bulawayo, 20th August 2006

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