Zimbabwe strains under hyperinflation; lines form outside banks for new 750,000 dollar note

Santa Barbara News Press

ANGUS SHAW, Associated Press Writer

December 20, 2007 11:37 AM

HARARE, Zimbabwe (AP) - Zimbabwe's central bank unveiled new currency notes
Thursday with denominations as high as 750,000 dollars as the government
tries to ease chronic shortages of cash in a hyperinflationary economy.

Official inflation is 8,000 percent - the highest in the world - although
independent estimates put it substantially higher. The International
Monetary Fund forecast inflation would reach 100,000 percent by the end of
the year.

The government is withdrawing all 200,000-dollar notes, currently the
largest currency note, and will question those attempting to exchange them
to root out ''cash barons'' who hoarded them for illegal deals, Gideon Gono,
governor of the Reserve Bank, told the state broadcaster.

The 200,000-dollar note is expected to be phased out by Jan. 1. People
exchanging large sums of 200,000 dollar notes will be asked to explain how
they were acquired or face forfeiture and criminal charges.

Lines that have formed daily this month outside banks and automated teller
machines grew even longer Thursday after Gono said the central bank was
pumping new 250,000, 500,000 and 750,000 Zimbabwe dollar bills into the
economy ahead of the holidays.

Lines have begun forming as early as 4 a.m. and banks are limiting
withdrawals to 5 million Zimbabwe dollars per customer, about enough to buy
a take out hamburger.

There are acute shortages of food, gasoline and basic goods in Zimbabwe, now
embroiled in its worst economic crisis since independence from Britain in
1980.

Unemployment is around 80 percent and political unrest is growing. Foreign
investment, loans and development aid have dried up.

President Robert Mugabe, 83, who has ruled Zimbabwe for 27 years, blames the
crisis on Western sanctions and rejects criticism that mismanagement caused
the meltdown.

The exchange rate is 30,739 Zimbabwe dollars to a single U.S dollar.

No quick end seen to Zimbabwe cash crisis

Reuters

Thu 20 Dec 2007, 11:40 GMT

By Nelson Banya

HARARE (Reuters) - Zimbabwe's move to introduce higher denomination
banknotes to end cash shortages fall short of solving the crisis, analysts
said on Thursday, as consumers besieged banks ahead of the Christmas
holidays.

The southern African country is facing an acute economic crisis blamed on
President Robert Mugabe's policies, marked by the world's highest inflation
and shortages of fuel and food.

Official inflation is nearly 8,000 percent, although independent economists
say the figure could be double that.

In a televised address on Wednesday, Zimbabwe's central bank Governor Gideon
Gono introduced higher value notes in Z$750,000, Z$500,000 and Z$250,000
bills to help ease a cash crunch that has seen long queues at banks.

Gono -- who blames the shortage of banknotes on rampant black market
trade -- said the central bank would withdraw the Z$200,000 note, previously
the highest note in circulation and mostly used by illegal foreign currency
traders, with effect from January1.

LOAF OF BREAD

Analysts said the new banknotes, the highest of which cannot buy a loaf of
bread costing at least Z$800,000, were only a temporary solution.

"It's just a temporary measure...the huge demand for cash will always be
there as long as inflation remains high and there is more activity in the
informal economy, as opposed to the formal sector," said Best Doroh, an
economist at ZB Financial Holdings.

"Short of dealing with that, any solution is going to be short-lived."

Research analyst Rashid Mudala said the country's diminished productivity
and high inflation would render the measures inadequate.

"They can print as many notes as they want, but inflation will continue to
wreak havoc," Mudala said. "The focus should be on inflation and ensuring
the productive sector runs efficiently."

Meanwhile, there was no immediate respite for Zimbabweans wanting cash who
formed long queues in the rain on Thursday, with most banks in central
Harare saying they still had not received the new notes from the Reserve
Bank of Zimbabwe.

"There is no improvement, the banks keep saying they have not yet received
any new notes," a security guard manning a bank cash machine told Reuters.

"The situation is worse because even more people have come out for cash
today expecting new notes, while some shops are reluctant to take the
Z$200,000 notes."

Zimbabweans also have to grapple with shortages of food, electricity, and
foreign currency, signs of an economic crisis blamed on Mugabe's policies
such as the seizure of white farms to resettle landless blacks.

Mugabe, 83, and in power since independence from Britain in 1980, denies
mismanaging the economy and says it has been sabotaged by western nations as
punishment for his land reforms.

The veteran leader is seeking re-election in a vote planned for March next
year.

Reply from the British Government to the Vigil Petition

'SA's quiet diplomacy yielding good results'

SABC

December 20, 2007, 20:30

ANC President Jacob Zuma says South Africa's policy of quiet diplomacy in
Zimbabwe has yielded good progress in resolving the problems in that
country.

Zuma was speaking to journalists at the ruling party's 52nd National
Conference in Polokwane.

The Southern African Development Community has mandated South Africa to
mediate between ZANU-PF and the opposition Movement for Democratic Change
(MDC) in Zimbabwe.

The South African government has been widely criticised for its quiet
diplomacy policy. However Zuma says the quiet engagement with the people of
Zimbabwe has produced results.

Cameron calls on China to stop providing aid to Zimbabwe despot Mugabe

Daily Mail, UK

Last updated at 13:36pm on 20th December 2007

Conservative leader David Cameron today called on China to end its provision
of aid direct to Robert Mugabe's administration in Zimbabwe.

In a speech during his visit to the far Eastern giant, Mr Cameron said that
China's growing prosperity and economic muscle increased its responsibility
to help promote global security and stability, whether in Africa, North
Korea or Burma.

And he used a speech during his visit to China to urge the country's leaders
to permit greater political openness and respect for human rights at home,
raising concerns over freedom of expression, use of the death penalty and
restrictions on internet access and the media.

Mr Mugabe has adopted a "Look East" policy in recent years, seeking aid and
trade from emerging economic forces like China as Western countries have
withdrawn support in protest at human rights abuses.

In 2005, he visited Beijing to seal an agreement involving economic help for
his regime in return for mineral and other trade concessions. China has been
one of Zimbabwe's largest trading partners, supplying Mr Mugabe with
civilian and military aircraft.

China has faced criticism for declining to link aid to human rights on the
grounds that it does not want to interfere in Zimbabwe's "internal affairs",
though there have been signs it may be reassessing its stance as next year's
Beijing Olympics approach.

Speaking at Chongqing University, Mr Cameron said that China has an interest
in a "sustainable and brighter future" for Zimbabwe, which has seen
inflation topping 1,000% and male life expectancy falling to 37 due to
Mugabe's misrule.
"It doesn't have to be like this," said the Tory leader. "It shouldn't be
like this.

"I commend the fact that China has cut back on its aid to Zimbabwe. I would
urge you to go further and end your direct aid for the Government of
Zimbabwe altogether."

Mr Cameron also called on Beijing to work for stability in Sudan, which
provides China with a tenth of its oil in return for substantial aid.

"Today, you are the world's third biggest importer of oil, and 10% of it
comes from Sudan," he said. "So China has a direct national interest in
working for stability in Sudan, and an end to the killings in Darfur."

Mr Cameron welcomed China's provision of troops for UN peacekeeping missions
in Congo, East Timor and Lebanon, and said that its growing economic clout
brought with it responsibilities for global stability.

China, no less than the West, faced the global threats of terrorism, nuclear
proliferation, crime and drugs, he warned.

"Because these challenges ignore geographical boundaries, dealing with them
means moving away from thinking of individual countries as the world's
policemen," he said.

"Instead, we must recognise the stake that every country has in protecting
the world.

"And you, in China, should be particularly alive to this. Because great
powers have a bigger interest than anyone in preserving stability.

"As your star rises once more in the world, so does the size of your stake
in preserving global security and stability."

He called on China to "bring more pressure to bear on North Korea and Burma,
because the stability and prosperity of your country depends on the
stability and prosperity of your neighbours".

Mr Cameron also addressed the thorny issue of political freedom and human
rights in China, telling his audience he did so in a "spirit of friendship".

Urging Beijing to ratify and implement the International Covenant on Civil
and Political Rights, he said: "Let me make clear my hope that in the years
to come, your economic opening will lead to a greater political opening too.

"Because it is no secret that we have differences of opinion about human
rights.

"There are deep concerns about freedom of expression, of religion, about the
extensive use of the death penalty, about the degree to which the media -
and access for example to the internet - are curtailed.

"We make these arguments not because we think we are the moral majority,
that somehow we think we have a monopoly on civilised principles, but
instead, because our experience has taught us that in the long-term,
progress - whether economic, social or environmental - is underpinned by the
rule of law, good governance, pluralism and freedom."

Gono threatens to close down errant banks

New Zimbabwe

By Albert Makoni
Last updated: 12/21/2007 05:20:27
THE Reserve Bank of Zimbabwe has threatened to close down banks caught
flouting regulations set out by the central bank on Wednesday night.

RBZ Governor Gideon Gono said errant banks found breaching banking
regulations especially withdrawal and deposit limits will be shut within 24
hours.

“For a start, that particular branch which will be caught on the wrong side
of the law issuing cash payments above the stipulated limit or accepting
deposits above our limit will be closed down within 24 hours,” said Gono.

Gono said any suspected banks would be put under strict surveillance with
immediate effect.

The RBZ announced the introduction of a new set of bearer cheques which
include
$250 000, $500 000 and $750 000 notes in an effort to deal with an acute
shortage of cash in the banking system ahead of the festive season.

The central bank has also increased the withdrawal limits from a previous
$20 million to $50 million for individuals and from $40 million to $750
million for corporate organisations.

The operation, dubbed Sunrise 2, will also see the phasing out the $200 000
bearer cheques which are currently the highest denomination in circulation.

The RBZ has given a 12-day change-over period within which individuals and
corporate organisations can deposit back into the formal system the
phased-out $200 000 notes before they cease to be legal tender.

With immediate effect up to December 31, banks will remain open throughout
weekends to allow time for the phased-out bank notes to be deposited back in
the banks, Gono said.

The RBZ chief said: “A close analysis of the make up of Zimbabwe’s
denominations of legal tender has shown that the cash barons mostly prefer
the anchor of a $200 000 bearer cheque, being the highest denomination.

“The last day of depositing the expiring $200 000 bearer cheques is 31
December and any undeposited notes will become useless manure with no
recourse for the holder to recover value.”

The central bank opted to introduce higher denomination bearer cheques in
addition to the existing family of bearer cheques instead of introducing a
new currency as widely expected by the financial market.

Gono had in recent weeks warned that he was going to introduce a new
currency among a raft of measures by the central bank to deal with the
country’s inflation and the recent cash shortages which have been blamed on
cash hoarding by foreign currency dealers and “cash barons”.

Gono has revealed that 90% of the money in circulation was in the form of
$200 000 bearer cheques which were missing from circulation.

Addressing the ruling Zanu PF party extraordinary congress in Harare last
week, Gono revealed that of the $67 trillion injected into the banking
system by the central bank, only $2 trillion was in formal circulation with
$65 trillion unaccounted for.

Gono threatens to name corrupt Mugabe cronies in parliament

New Zimbabwe

By Torby Chimhashu
Last updated: 12/20/2007 23:14:04
ZIMBABWE’S central bank governor has sensationally said he is ready to name
corrupt officials in President Robert Mugabe’s ruling Zanu PF party if he is
invited by Parliament.

Gono’s extra-ordinary chellenge to Zimbabwe’s MPs came just a week after he
accused President Mugabe's cronies of fuelling the country's runaway
inflation through illicit dealings.

Gono told the Zanu PF congress last week that some top government and ruling
party officials were among "cash barons" blamed for the current cash
shortages that have seen customers waiting long hours for scarce money.

And on Wednesday, in an interview with state television after a speech to
announce the introduction of higher denomination banknotes to help end the
cash crunch, Gono said he was ready to name names.

The central bank chief said he had the support of President Mugabe and would
not be intimated by the politicians in his quest to have them brought to
justice.

He said: “It's true I know three quarters of those politicians involved in
illegal activities. If challenged in circumstances that do not lend me in
conflict with my ethics, I could tell the nation now.

"(However) I would be happy to name these people in a Parliamentary
Portfolio Committee on Budget and Finance. If they (Parliamentary Committee)
have the guts, they can call me tomorrow, anytime, whether it is 6am, 12
noon or midnight and I would be happy to share with them and the nation. Let
them call me and I will name these guys in the presence of the media.”

In comments that will send a chill in the corridors of power, Gono said
corrupt Zanu PF officials were “getting away with murder”.

“Those who are perpetrating these malpractices are getting away with murder.
Those that are working flat out to have them prosecuted are frustrated as
these guys are either fined or let away,” Gono said.

"Imagine someone caught with kilogrammes of gold is allowed to go scot-free.
Yet it is not so long ago that the police were complaining about sharks in
their gold investigations.

"This governor will not be intimidated. I have the full support of my
principal. This time there are no roadblocks. We are saying to cash barons
come with your sack or trunk of money and we will talk. There is every
reason for them to be very afraid," he said in reference to the new measures
he put in place Wednesday to ease cash shortages.

He de-monetised the $200 000 bearer cheques and replaced them with $250 000,
$500 000 and $750 000.

The $200 000 bearer cheques will expire on December 31, and after the
deadline, Gono said, the bearer cheques "would be useless manure".

Zimbabwe opposition asks parliament to expose corrupt officials

Earth Times

Posted : Thu, 20 Dec 2007 12:17:02 GMT
Author : DPA

      Harare - Zimbabwe's opposition Thursday called on parliament to
convene an urgent meeting to expose top government officials who the central
bank chief says are hoarding vast sums of cash. The call by a faction of the
Movement for Democratic Change (MDC) came the day after Reserve Bank of
Zimbabwe (RBZ) governor Gideon Gono threatened to expose senior figures
contributing to the countrys liquidity crunch.

      The governor's offer to name and shame the thieves and criminals
amongst us must be taken very seriously in light of the gravity of the
matter, said Priscilla Misihairabwi-Mushonga, parliamentary spokesperson for
the Arthur Mutambara-led MDC faction.

      In a late-night television statement on Wednesday Gono said the
Reserve Bank would withdraw the country's current highest denomination bank
bill from circulation by month-end.

      He said the 200,000 Zimbabwe dollar bearer cheques were favoured by
local cash barons, including senior government and business officials.

      "I will be happy to name some of these cash barons before a
parliamentary committee," Gono said on Wednesday night. "If they (the
parliamentary committee) have got the guts, I will give them a full house."

      Out of the 67 trillion Zimbabwe dollars in circulation, only two
trillion is being kept in the formal market, the central bank chief said.

      In a bid to outwit those hoarding cash, Gono also set stringent limits
on how much cash can be deposited between now and December 31.

      The MDC said parliament's budget and finance committee should take up
the governor's offer to name the cash hoarders.

      "It is criminal that those who are in the employ of the state, charged
with the duty to service the people, can be so cruel to inflict such intense
suffering to the very people they were entrusted to service," the party
said.

Corruption “Destroyed” the Country

Institute for War & Peace Reporting

Government admits corruption major problem, but unlikely to tackle it
because so many officials involved.

By Meshack Ndodana in Harare (AR No. 148, 20-Dec-07)

Corruption has now been officially acknowledged as one of the greatest
cancers abetting Zimbabwe's sharp economic decline. At the ruling ZANU-PF
party’s Extraordinary Congress last week, Reserve Bank Governor Gideon Gono
named it as one of several factors responsible for the nation's economic
woes.

Analysts say, however, that in spite of this official recognition of the
problem, the government is not expected to try to stem the scourge of
corruption as so many officials are themselves involved.

At the congress, which ran from December 11 to 14, Gono said there were
"cash barons" in the ruling party and government who were keeping huge
quantities of money for speculative purposes and trade in the illegal
foreign currency market.

Zimbabwe has been in the grip of a serious currency shortage which has seen
people spending days queuing outside banking halls to withdraw their
salaries. This has badly affected production as man hours are wasted while
people move from bank to bank in search of cash.

The official exchange rate is 285,000 Zimbabwe dollars to one US dollar. On
the parallel market, one US dollar fetches 1.6 million ZWD.

Opposition parties and business have in the past accused the central bank of
stoking the country's inflation of over 8,000 per cent by printing paper
money and introducing other quasi-fiscal activities into the economy.

This week, the central bank was expected to introduce new currency to ease
the cash shortage.

Gono revealed at the ZANU-PF congress that while the central bank had
injected 67 trillion ZWD into the market, only 2 trillion ZWD could be
accounted for by the close of business last week.

"Our question is: who has all the other money? That is also the reason the
central bank has taken its time to respond to the cash crisis," said Gono.
"We cannot keep on printing money before we account for the other 65
trillion ZWD.

"Corruption, corruption, corruption has destroyed this country," Gono told
last week’s congress, which was also addressed by President Robert Mugabe
among other senior government officials.

Analysts said the official would not have made such a bold claim without the
knowledge and tacit approval of the president.

However, his claim is contrary to the official party line, which blames most
of the nation's economic woes on western sanctions imposed on Mugabe and his
top officials, and on this year’s drought.

Gono’s claim was along the same line as that taken by the country's
corruption watchdog, Transparency International Zimbabwe - which has also
blamed the nation's problems on misconduct, as well as Mugabe’s intricate
patronage system.

Last year, Industry and International Trade Minister Obert Mpofu told a
parliamentary committee that senior government and party officials were
deeply involved in the wholesale looting of resources at the Zimbabwe Iron
and Steel Company.

While he later retracted the claim, some thought that this was done under
pressure.

Mpofu was charged with perjury for lying to parliament - a charge likely to
fall away after parliament is dissolved to make way for the harmonised
presidential, parliamentary and local government elections scheduled for
March.

A number of party and government officials have been implicated in the
smuggling of precious minerals since the discovery last year of diamonds in
the Chiadzwa district of Manicaland Province.

While Mugabe had warned that corruption would not be tolerated, neither he
nor anyone else has dared name names.

Last week, Gono said an average of 15 tonnes of gold worth 400 million
dollars was smuggled out of Zimbabwe every year.

"Diamonds worth over 800 million dollars have been smuggled out of the
country," he said. "Other minerals have either been smuggled or
under-invoiced to the tune of about 200 million dollars per year.

“In total, therefore this economy is losing on average not less than 1,7
billion dollars per year through economic sabotage perpetrated by a few of
us with the knowledge and/or complicity of many seated in this hall," he
said to deafening applause from the public gallery.

"We are now aware of the massive syndicates of cash barons who are hoarding
cash and consequently creating shortages."

However, Gono immediately beat a retreat.

"I will not disclose what we are going to do and we want to see the congress
express itself on what is causing the shortages," he warned darkly.

His challenge was immediately taken up by Mashonaland East provincial
chairman Ray Kaukonde, who called on Gono to produce this list of cash
barons.

Kaukonde then asked the question on everybody's lips, "On behalf of
provinces, I would want to ask what it is that is causing these people not
to be arrested?"

Gono said by speaking his mind, he was making many enemies for himself. "I
will be the focal point of attack and worse smear campaigns than ever
before,” he said.

A senior official with Transparency International said he was sceptical that
any action would be taken by the authorities.

"Gono is saying all the right things. Unfortunately, corruption thrives in
ZANU-PF and government itself,” he said.

A political analyst at the University of Zimbabwe said that nothing would
come of Gono's self-righteous protests and that ZANU-PF was well known for
protecting its own.

"We have become hostage to the culture of secrecy," said the analyst.
"Nobody wants to name and shame because none of them is clean. Not even the
president seems to have the courage to name corrupt officials in his
administration.

“The same people accused of hoarding cash have been implicated in
black-market foreign currency deals, the illegal sale of state-subsidised
fuel, fertiliser, maize seed and other farm inputs.

"It is the same people implicated in the smuggling of precious minerals.
Once in while there are token arrests but the real culprits are beyond the
reach of the law.

“Corruption has become a cancer in Zimbabwean society, and unfortunately the
pain is felt mostly by you and me - the poor.”

Meshack Ndodana is the pseudonym of an IWPR journalist in Zimbabwe.

Mugabe Endorsement “Opportunity” for Opposition

Institute for War & Peace Reporting

Ruling party’s backing of Mugabe as its presidential candidate may bolster
opposition electoral prospects.

By Mike Nyoni in Harare (AR No. 148, 20-Dec-07)

The ruling ZANU-PF’s endorsement of Robert Mugabe as its presidential
candidate in next year’s elections might present the opposition Movement for
Democratic Change, MDC, with its best chance of gaining power - if it can
present a united front.

All ten provinces controlled by ZANU-PF endorsed Zimbabwe’s independence
leader at its extraordinary congress in the capital Harare last week - an
event attended by nearly 10,000 delegates, as well as representatives of
ruling parties from ten Southern African Development Community, SADC,
countries.

ZANU-PF chairman John Nkomo summed up the reasons for backing the
octogenarian leader for re-election in the joint presidential and
parliamentary ballot in March.

“Our president and first secretary, we salute him for the role he has
contributed in shaping the lives of the oppressed in Africa and the world,
for tenaciously defending our independence and sovereignty, for his courage
to make decisions going it alone if need be, compassion to listen to
 others,” he declared.

“He is a nationalist, non-regionalist, pan-African par excellence and solid
internationalist.”

Analysts in Harare said this view suggests the party is more concerned with
past glory than it is with taking the nation forward. This, they said,
presents a golden opportunity for the MDC to grasp power - if only it can
mend its differences and put the interest of the nation ahead of individual
egos.

“Mugabe’s endorsement as the ruling party’s presidential candidate next year
is more a statement of [the party’s] contempt for the opposition than it is
to do with having confidence in Mugabe,” suggested one political analyst.

“It is a daring decision which the MDC should see as a challenge to its
capacity to fight ZANU-PF.”

Mugabe has ruled Zimbabwe since it won independence from Britain in 1980,
and has used his inflated role in the 1970s liberation war to suppress any
challenge to his increasingly autocratic rule, both from within his own
party and from outside.

Things began to come unstuck for the president when his government embarked
on an unplanned land reform programme in 2000, seizing productive
white-owned commercial farms for distribution largely to his cronies.

Independent analysts estimate that the economy has contracted by 45 per cent
in the past eight years to 1953 levels. Inflation is soaring at an estimated
8,000 per cent while unemployment is close to 85 per cent.

It is estimated that between three and four million Zimbabweans have left
the country in recent years.

People’s anger at deteriorating conditions in the country has been
channelled through the MDC since its formation in 1999.

In the greatest threat Mugabe has faced during his rule so far, the party
narrowly lost parliamentary elections the following year, winning 57 seats
against ZANU-PF’s 61.

However, internal rivalries have since rocked the opposition, and in 2005,
the MDC split into two factions - the larger part led by Morgan Tsvangirai,
former secretary-general of the Zimbabwe Congress of Trade Unions, and a
breakaway faction headed by former academic Arthur Mutambara.

Tsvangirai has lost much support over a number of questionable decisions and
many believe that he has shown that he is unable to hold the party together.

Observers say with a litany of disastrous policies by ZANU-PF, a better
opposition leader could propel the MDC to victory in the March elections.

“There is nothing to stand in the way of a united opposition. They are
currently their own worst enemy and should they lose next year, the MDC
should consider an alternative leader,” said the political analyst.

According to him, when Mugabe first hinted that he wanted to run for
re-election most people assumed he was bluffing. He said he believed the
current president would spring a surprise on his party by announcing a
possible successor at last week’s extraordinary congress.

“As things stand, ZANU-PF has demonstrated over the years that it is
incapable of turning around the spiralling economy,” said the analyst.

Divisions in the ruling party also emerged last week between a group led by
retired army commander General Solomon Mujuru, who wanted to challenge
Mugabe, a group led by Rural Amenities Minister Emmerson Mnangagwa, Women’s
League chair Oppah Muchinguri and war veterans, who wanted him to stay.

“The collapsed economy has long been Mugabe’s biggest nemesis and all the
MDC needs to do is to unite and mobilise the people to vote next year,” said
another independent political observer.

He pointed out that everything remains in short supply in the country.

“Even as we approach Christmas, there are no basic commodities in the shops
as promised by Reserve Bank Governor Gideon Gono in September. Health
services have collapsed and there is no transport as people prepare to break
for the holiday,” he said.

“The current crippling cash crisis is the latest insult in a long catalogue
of Mugabe’s destructive policies,” said the political observer. “What does
he want to do at 84 that he couldn’t do when he was younger and the economy
was still robust?”

However, he points out that splintered state of the opposition is damaging
its chances of capitalising on the situation. “The MDC now stands between
itself and victory because of internal squabbles,” he said.

Mike Nyoni is the pseudonym of an IWPR journalist in Zimbabwe.

Amendments to security, press laws now await Mugabe's signature

Monsters and Critics

Dec 20, 2007, 7:54 GMT

Harare/Johannesburg - The upper house of parliament in Zimbabwe has approved
changes that will tone down tough media and security regulations, clearing
the way for President Robert Mugabe to sign them into law, reports said
Thursday.

The senate approved the amendments to the Access to Information and
Protection of Privacy Act (AIPPA) as well as the Public Order and Security
Act (POSA) on Wednesday, the state-controlled Herald newspaper said.

Amendments to the Broadcasting Services Act (BSA) and the Electoral Laws Act
were also approved, the paper said.

The changes to the press law make it no longer compulsory for journalists to
be licensed with a state-controlled media commission, although only licensed
journalists will have access to parliament, the courts and public events.

Under the current law unaccredited journalists could face up to two years in
jail.

The amendments to POSA make it more difficult for police to ban rallies and
demonstrations, a key grievance of opposition and civic rights groups.

If police ban a rally, organizers will be able to appeal to a magistrate,
instead of the minister of home affairs as was previously the case.

The amendments to the laws came after months of negotiations between
Mugabe's ruling ZANU-PF party and the two factions of the opposition
Movement for Democratic Change (MDC), brokered by South African President
Thabo Mbeki.

The talks are aimed at creating conditions for smooth presidential and
parliamentary elections in 2008.

But the Zimbabwean office of the Media Institute of Southern Africa, a
regional press watchdog, criticized the bills on Wednesday, saying they did
not guarantee basic freedoms.

'The proposed amendments mostly dwell on peripheral and inconsequential
administrative issues which do not advance even by a single inch the cause
for basic freedoms such as the right to freedom of expression, media freedom
and freedom of assembly,' the group said in a statement.

© 2007 dpa - Deutsche Presse-Agentur

RioZim may close gold mine and put diamond project on hold

From Mineweb (SA), 19 December

Harare - Zimbabwe's proposed indigenization laws and an unviable fixed
exchange rate might force Rio Tinto - one of the world's leading mining
companies - to shut down one of its gold mine projects in the country and
put on hold a planned US$60 million diamond project. This follows the
Zimbabwe government's recent notification to mining companies that it will
forge ahead with plans to indigenize the country's mining sector by
enforcing a controversial law that will make it mandatory for mining firms
to cede portions of their shareholding to government and local black
Zimbabweans. Under the Indigenization and Empowerment Bill - which is
currently awaiting presidential accent - foreign owned companies operational
in Zimbabwe in all sectors will be forced to cede 51 percent of their
shareholding to local black Zimbabweans.

The Mines and Minerals Amendment Bill also gives the government the
legislative authority to grab 51 percent of foreign companies mining
"strategic fuels and minerals." The state will also have the power to usurp
25 percent of the 51 percent ceded without paying for it while the balance
of 26 percent would have to be paid for. The bill justifies the government's
seizure of stakes in mining companies "by virtue of its original ownership
of all useful minerals in its subsoil". However, Rio Tinto - which owns 56
percent of Rio Tinto Zimbabwe (RioZim), this week became the latest mining
company to express disgruntlement over the proposed legislations. "It seems
there will be no change in the pricing regime in the foreseeable future and
further decisions about the mine's future may have to be made in light of
the proposed empowerment laws," Rio Tinto said. Several other foreign mining
firms have in the past expressed discomfort and concerns over the same
issues.

In addition, an executive board member of Rio Tinto's Zimbabwe subsidiary,
RioZim said once either of the "empowerment and indigenization laws became
effective, it will be difficult for our parent company Rio Tinto to have
confidence in the local mining sector, hence we are very apprehensive as Rio
Tinto has already indicated that it is hoping to commence a new diamond
project". Rio Tinto confirmed that it was increasingly becoming unviable for
the company to embark on its plans to start a new diamond mine due to the
fixed exchange rate. The official exchange rate is fixed at US$1 - Z$30 000
while the parallel market rate has spiraled to Z$2 million. This, the RioZim
executive stressed made it difficult for mining companies to stay afloat and
sustain operations as companies are not allowed to procure foreign currency
outside of the official channels. He also added that the current mining
sector uncertainty could result in drastic situations as Rio Zim was hard
pressed could be forced to "slow down or shut down" one of its gold mines in
the country.

Mining companies are not allowed to sell their gold output to any other
agent except the country's central bank. Only 20 percent of the gold
deliveries is paid for in foreign currency and this has over the past few
years taken longer periods to be remitted. President of the Zimbabwe chamber
of mines, Jack Murehwa said the fixed rate made illegal gold trading
lucrative and "attractive as the mines get more from the parallel market
that from the reserve bank". Unofficial mining industry statistics indicate
that Zimbabwe could have lost up-to US$150 million through illegal exports
of gold in the first six months of this year. Gold production, a major
currency earner that constitutes nearly 52 percent of Zimbabwe's total
mineral production value, has declined for a second successive year despite
higher world prices.

South Africa fears the worst from Jacob Zuma

From The Daily Telegraph (UK), 20 December

By Graham Boynton

Earlier this year, at the funeral of the Zulu war historian David Rattray, a
very senior ANC official was overheard telling his companion that if Jacob
Zuma became president, it was time to flee South Africa. More recently,
another high-ranking ANC member told a British newspaper that most, if not
all, of the officials who have been handling South Africa's finances in the
13 years since Mandela came to power would abandon their posts under a Zuma
presidency. These bleak assessments of a future South Africa ruled by a man
whose signature tune is Mshini Wami - "Bring Me My Machine Gun" - have been
echoing through the corridors of Cape Town's parliament buildings, in
Johannesburg's glittering offices, and in the affluent, gated residential
communities all over the country for most of 2007. Now the moment of truth
has arrived, and it is one that will decide not only the future of the
continent's economic powerhouse, but also of the whole of the southern
African region.

For if this mighty engine is derailed by the kind of economic blunders and
political corruption that has destroyed Zimbabwe, then it will surely pull
the whole region down with it. Botswana, Namibia, Mozambique, Swaziland,
Lesotho, Angola - even Zambia and Malawi - depend on an economically vibrant
South Africa. So a great deal rides on the man who will succeed Thabo Mbeki
as president. At first pass, Mr Zuma is a far from impressive candidate for
the job. He is an affable populist with no formal schooling, but an
impressive trajectory through the ranks of the military wing of the
liberation movement. However, more recently, while serving as Mbeki's deputy
president, he found himself spending more time in the dock facing charges of
corruption and rape than attending to affairs of state. His testimony during
the rape trial that, after having sex with someone who was HIV positive, he
had taken a shower to reduce the risk of infection, beggars belief. And
although he was acquitted of rape and the corruption case against him
collapsed, his days in court are not over. Prosecutors say they have found
fresh evidence of corruption and it seems he will face further charges in
the New Year.

But Africa tends to forgive its corrupt Big Men (and Women) in a heartbeat
if they appear to represent the poor masses. Thus Winnie Mandela has
remained a heroine despite years of scandals that involved her in
abductions, embezzlement and murder, and Robert Mugabe receives standing
ovations at African Union gatherings, even though he has turned his country
into an economic basket case where a handful of his closest cronies have
been the only beneficiaries. So it is that Jacob Zuma's considerable
transgressions are being ignored because he is seen as a man of the people,
the 40 per cent of unemployed South Africans and the rural poor who have
been all but passed over in the new South Africa's scramble for wealth. His
support comes from the rural poor, the trade union movement, the radical ANC
Youth League and the South African Communist Party, whose current head,
Blade Nzimande, recently described the economy as "essentially colonial".

This rallying call is ominously familiar. When a referendum went against
Mugabe in 2000, he immediately blamed dark colonial forces for his country's
faltering economy and then set his thugs on those he said represented the
old order - the white farmers who were the most productive in Africa. The
results of that populist war cry are now part of the continent's depressing
post-colonial history. The fear is that a Zuma-led South Africa would follow
a similar path, only with more catastrophic results. Although Mbeki's model
of the Rainbow Nation has not been perfect - his failure to deal effectively
with the Zimbabwean despot and his appalling record on his own country's
Aids pandemic are his two most public failures - he has presided over a
stable country whose economy is growing at more than five per cent a year.
It also continues to attract international investment and is the only
African country with the infrastructure to host a major event such as the
2010 World Cup. For his successor to dismantle this after more than a decade
of hard-earned progress is unthinkable, and that is why, in the hours since
Zuma's triumph, local analysts have begun to emerge with a more optimistic
alternative to a Zuma presidency.

That involves South Africa's admirably robust and independent judiciary
bringing him down in 2008, thus making him ineligible to stand for
president, and opening the way for a more acceptable candidate such as Tokyo
Sexwale, the charismatic freedom fighter turned businessman who comes with
Mandela's blessing, to take up the running. The caveat here is that there
will be an inevitable backlash from Zuma's supporters and the ensuing
struggle may well tear the ANC apart. But the view from the Rainbow Nation
today is that anything is better than a Jacob Zuma presidency.

Weary Zimbabweans bank on Zuma's election

From VOA News, 19 December

By Ntungamili Nkomo and Benedict Nhlapho

Washington - South African newspapers are comparing Jacob Zuma's election as
leader of the African National Congress to a Tsunami or tidal wave, calling
the defeat of president Thabo Mbeki a "Zunami." Zuma, once national deputy
president, took 60 percent of the congress votes, Mbeki just 40 percent. His
triumph has given a lift to Zimbabweans in South Africa who think he will
influence his party and government policy on Zimbabwe. Zuma is likely to
become South African president in 2009 and the diasporans believe he’ll be
firmer with Harare than Mr. Mbeki. Political analyst John Makumbe adds that
while Mr. Mbeki remains president of the nation, Zuma’s influence as ANC
chief will be considerable

South African Perspective on the EU-African Union Summit

Source: South African Government

As you are aware the 2nd EU-Africa Summit was held in Lisbon, Portugal
Saturday to Sunday, 8 to 9 December 2007. Both the Director-General and
myself were part of the President's delegation and we have just returned.
This was a very important summit and is reflected by the fact that almost
all heads of state and government from Africa and Europe attended this
Summit. There had been some suggestion that European countries would boycott
the Summit but I am happy to say that in the end, only two heads of state
and government from Europe did not attend. The level of participation was
remarkably high.

This Summit, the second between Europe and Africa that has been delayed by
almost seven years, was therefore very important because as you are aware,
since the 2000 Cairo Summit it had not been possible to hold the second
summit because of the participation on the African side by Zimbabwe. The
very fact that this second summit took place and was attended by all
countries including Zimbabwe, indicates the maturity of the relationship
that is developing between Europe and Africa.

We have always argued that it was absolutely incorrect for our partners to
insist on who should be part of the African delegation and that any matter
should be placed on the agenda for discussion and therefore the summit was a
gathering of political heads of state and government, not merely ministers
and was therefore an excellent opportunity to discuss any matter without
fear that this would lead to the breakdown of the Summit.

I am surprised at the general response from the experts in South Africa – I
saw an article in the New York Times reflecting this – much of the media
basically arguing that nothing new has emerged and that there was a major
crisis in the economic discussions especially on the issue of the Economic
Partnership Agreements (EPAs).

Let me quickly say that the very fact that there were discussions on the
EPAs at that level – these had previously been at the level of Ministers –
this was the first time that heads of state and government were able to
really tackle this matter at the political level.

The view of the vast majority of African participants was that we needed to
revisit the partnership with a view to ensuring that maximum benefits would
be derived from the EPA process and the way to ensure that the end product
would be of mutual benefit to all and entailed a holistic approach to
development on the continent and the joint strategy indicated that there was
a need for the EPA process to be supportive of Africa's regional and
continental integration agenda on the basis of the Abuja Treaty.

The current reality is that the EPA negotiations as reflected at the moment
would create serious problems for the integration process in Africa and
therefore we argued strongly from the African side that we must look at
these negotiations thus far because they did not support the principles and
objectives as encapsulated in the joint strategy document. And it did not
really take into account the varying levels of development amongst countries
and there was a necessity to ensure that the co-operation with the EU
through the EPAs did not undermine the overall regional integration efforts.
And therefore Africa argued that it was important to align the EPAs and the
WTO processes and that the focus should be on the development of the ACP
regions.

Indeed, this is in line with our broad strategic approach with the EU: there
must be a developmental approach to our new relationship and that we argued
that the cut-off date that the Commissioners of the European Union were
proposing – 31 December 2007 – was not realistic and that we should have
more time to really continue the discussions to enable us to come to a
consensus agreement on the way forward.

I will hasten to say that you are aware that the EPA agreements are a new
element of the Cotonou Agreement that is coming to an end and there has been
an argument by the EU that we need to synchronise with the World Trade
Organisation (WTO) which does not allow for this sort of arrangement.

We as Africa argued very strongly that this was not the case and if the
correct arguments were put forward we could get an extension beyond the cut
off date of the 31st December 2007. I want to believe that at the end of the
process which would involve lots of discussions from the side of Africa and
the European side as well as from the Commission, there was an agreement
that the Commissioner Mr Barossa would now initiate a series of discussions
with the five African economic regions in order to see whether we could get
consensus on the EPAs.

So it is not a question of not finding each other, or a solution and that
there was a breakdown – it is more important to see how Africa at a
political level could collectively, despite the fact that some African
countries have signed the interim agreement, could collectively put forward
their view that we are not happy with the contents of, even the interim
agreement, and that we should rather look at it in a way that would be in
line with the strategic partnership and incorporate our vision of an
EU–Africa relationship that would be of a different nature.

On the issue of Zimbabwe newspapers are either saying there was a massive
attack against Zimbabwe while others are arguing that Zimbabwe was not
discussed and therefore Summit failed.

Let me quite categorically state, the Zimbabwean situation was openly
discussed. Four European countries raised the issue. From the African side,
many of the African Heads of State raised the issue of Zimbabwe. In the end,
what was significant, and President Mugabe in response to the four European
countries made his own intervention to which EU Commission Solana responded
on behalf of the EU, that all sides were able to put forward their
positions – the European Union expressed their concerns about political and
socio-economic developments and human rights in the country and the African
countries strongly argued that we are dealing with this issue and President
Mbeki, as the SADC appointed mediator, reported to the Summit about the
progress being made in the Facilitation process and indeed, all of Europe
was of the opinion that this is a matter that Africa is dealing with and
that it should be dealt with by listening to what the Zimbabweans themselves
want and what the African continent generally and Southern African
Development Community (SADC) has initiated on this issue.

So, it was not a question of not discussing Zimbabwe or that the Zimbabwean
issue was discussed in a way in which President Mugabe was castigated and
there was no real dialogue on this matter.

I think it was the first time that, outside of very narrow frameworks, the
two continents – Europe and Africa – were able to tackle the issue of
Zimbabwe with each putting forward its perspective and indeed, let me say,
even representatives from Europe who spoke on this issue supported the SADC
initiative led by President Mbeki and all said that once the SADC processes
succeed, Europe would be forthcoming with assistance to the recovery
process.

So, on both of these controversial issues, I believe the discussions and the
outcomes were misinterpreted in the media and by so-called experts.

It remains our view that the Lisbon Summit was a unique opportunity
jointly – Africa and Europe – at the level of Heads of State and Government
to address the major challenges the world faces today and this is very
significant because it took place at a time when Europe is celebrating the
50th anniversary of European integration and Africa was celebrating the 50th
anniversary of the beginning of independence. So it was a very significant
moment for Europe which has historical, cultural and other links with
Africa. It was a historic moment for us to sit together at the level of
Heads of State and Government and map out the future relationship that would
have to be different. We were cognisant of the fact that since the last
Summit in Cairo much has changed.

In Africa we now have the African Union with its economic instrument NEPAD;
in Europe, the European Union has grown in membership and scope deepening
its processes of integration and acquiring new responsibilities in the
world.

And there was a growing understanding between Europe and Africa that in this
globalised world, where the benefits of globalisation are not equally
distributed and all countries are not benefiting equally, and especially in
Africa – in sub-Saharan Africa – where we are suffering the worst
consequences of this globalisation, that we would have to understand that
our inter-dependence meant that we would have to raise our levels of
co-operation to new heights. And therefore, the major issues that we were
discussing at both the Ministerial and Heads of State and Government levels,
was can our relationship continue to based on the traditional relationship
of donor-recipient. Can we continue to build a relationship that is genuine
and mutually equal if we continue to have a situation where Europe only
deals with Africa in terms of pity and humanitarian crisis?

Indeed, I think that through the programme of action and indeed through the
Declaration, with a clear understanding that the greatest challenge that we
in Africa face is poverty eradication and sustainable development, energy
and climate change, and indeed from the European side also migration which
has become quite a significant issue and terrorism and indeed the
proliferation of weapons of mass destruction.
What is significant is that on all these issues everybody began to
understand that you could not begin to tackle any of these issues unless you
deal with it holistically and unless you have a relationship between Africa
and Europe that is fundamentally different that that we had even during the
first Summit. I believe this is recognition of the maturity and
transformation in the Africa–Europe dialogue and opens up new paths of
opportunities for collective action.

And indeed, it is precisely because of that that we could discuss many of
the issues in a way that was not antagonistic – while we differed, we
attempted to find common ground as I tried to show on Zimbabwe, the EPAs.
And so we do, I believe, emerge from this Conference with tremendous
opportunities which will now follow on the EU-Africa Strategy of 2005 – as
you know there was an EU-Africa Strategy of 2005 – but this could not be
given real content until the Heads of State and Government of the two
regions met and gave it full support.

So, we believe that in the coming period Africa and Europe relations will
now be based on a totally new paradigm. It will be based on an Africa–Europe
consensus of values, common interest and common strategic objectives. And it
will strive to bridge the developmental divide between Europe and Africa
through the strengthening of economic co-operation and the promotion of
sustainable development in both continents, clear understanding that the
prosperity and security of Europe cannot be maintained even when one
considers the issue of migration and terrorism, unless the economic
challenges on the African continent are seriously considered.

It is our view that the Joint Strategy that has been adopted will provide an
overarching, long-term framework for Africa–Europe relations and indeed,
what is significant, despite what the media is saying, short term action
plans have been developed in all the priority areas that have been
identified and we believe this will result in concrete and measurable
outcomes in all the areas of partnership that have been identified.

I believe that this is the first time Europe and Africa has decided on
almost all issues – bilateral, indeed it will now be Europe and Africa
through the European Union and the African Union – and we will even try to
co-ordinate our activities in international fora – the UN, the Human Rights
Council, and all other fora.

So, we emerged from this Summit fully endorsing the need for a stronger, new
Africa – Europe political partnership which includes strengthening
institutional ties and addressing common challenges in particular: peace and
security, migration, development and climate change.

The Europeans, this time, as a collective at Heads of State level committed
themselves to doing everything possible to ensure that Africa does meet the
Millennium Development Goals by 2015. And indeed, for the first time, at
this level, we jointly committed ourselves to promote and sustain a system
of effective multilateralism with strong representatives in legitimate
institutions and the reform of the UN system and other key institutions.

Now, as you know, for a long time, many of us in Africa and indeed in the
South, have been arguing that the weakening of the multilateral system was
becoming the greatest threat to international peace and security. This
commitment by Europe and Africa to co-ordinate our efforts to strengthen the
multilateral system, I believe it is the first time where two such powerful
groupings within the UN can now co-operate to ensure that we do manage to
get progress and strengthen a transformed UN including the Security Council
and the Bretton Woods Institutions.

There are also, not only new commitments, but a commitment to address global
challenges such as human rights including children's rights and gender
equality, most importantly the issue of fair trade which was constantly
debated, the issue of migration, HIV and Aids, malaria, TB and other
pandemics and as I said, climate change, increased co-operation on the
proliferation of weapons of mass destruction, the illicit trafficking of
small arms and light weapons, and knowledge based society issues such as the
EU co-operating much more through expertise and financial resources in areas
such as ICT, science, technology and innovation.

So it is our view that this is not business as usual because indeed a
historic moment for us to move away from a traditional relationship between
Africa and Europe which everybody accepts, and I think the fact that
everybody accepts, the past relationship could not be sustained and that a
real relationship was required characterised by equality and the pursuit of
a common objective.

I think that is significant because what we in the South have been
consistently saying is that if Europe, and indeed the developed world, does
not give sufficient attention to the challenges of Africa its own prosperity
and stability will be challenged and this is again what the traditional
partners of Africa, at very high levels, can together proclaim that this is
the direction in which we will be advancing. We also agreed that
unfortunately in the developed countries, and in this case Europe, there is
a lot of stereotyping of what goes on (they argue that there is stereotyping
in Africa of developments in Europe) – we strongly argued there was negative
stereotyping in Europe of Africa and there is ignorance of the overwhelming
positive developments on both continents and indeed we agreed that the new
approach should recognise and fully support Africa's efforts and leadership
to create conducive conditions for sustainable socio-economic developments
and the effective implementation of partner supported developmental
programmes.

If you begin to appreciate that in the Europe team there were very new
members who had recently joined the Union and until now there had been
suggestions that they were not too interested in the African agenda because
they had their own priorities.

I think that after this meeting there is a common voice from Europe that
Africa if a priority for Europe and that we will now do everything possible
to take this relationship to a higher level.

And so, what were our priorities:

Our first priority was Peace and Security and in this context to promote a
safer world.

Our second major priority was governance and human rights

The third major priority was trade and regional integration. I have already
referred to the discussion on the EPAs and Africa's demand that our
relationship should be increasingly linking to building our economies,
beneficiating our economies and indeed moving away from aid for just
humanitarian purposes. And this is significant because I think Europe
understands that the demand for African resources is now unprecedented and
that Africa contains some of the world's most valuable resources that Europe
and other countries like China and India require. Therefore, our own
relationship will have to take into consideration the increasingly relations
Africa is building with China, India, with other countries of the South,
initiatives such as IBSA and other initiatives that are being taken. And I
think Europe is quite cognisant of this fact that Africa contains much that
is required for their own national security and interest.

Indeed, our last priority was key development issues and this included the
Millennium Development Goals and indeed the institutional architecture to
implement what I am talking to.

So, it was not just talk for talks sake.

So let me just quickly give you a few examples of where this new partnership
has to go. It has now been agreed that the informal, non structured
relationship would now be more structured and the partnerships would work
under the political guidance and responsibility of the Africa – EU
Ministerial Troika and where necessary, Ministers in sector-specific areas
would be called in to create specific troikas and there is also an agreement
to take the initial steps in the period 2008 – 2010 to establish and
implement an institutional framework and that joint monitoring of progress
within the framework of the joint EU-African taskforce. All these structures
have existed. They are now being institutionalised. And this means we will
be dealing with Europe no longer as sub-regional groupings or individual
countries, but as Europe and Africa represented by the European Union and
the African Union.

And, I have seen suggestions that there has been no new money. It is not
just about money. Indeed, Africa argued very strongly that we had not gone
to this Conference nor would we go to future Conferences under the illusion
that we are coming to beg for resources – we are coming to look at a new
relationship that would ensure that even where there are pledges they are
implemented but more significantly that the aid money would not be used to
deal with humanitarian situations but will be used also in restructuring our
economies to achieve our development agenda.

And, they have said that there are existing mechanisms in the European Union
that will now be made available and more financial resources would come from
institutions like the 10th European Development Fund and its facilities and
trust funds, the relevant EU budgetary instruments – the EU Neighbourhood
Policy Instrument, Development Co-operation Instrument, and the Geographical
and Thematic programmes.

So what we have now is a commitment from the European Union to create
conditions where we can access more resources for other existing financial
institutions of the EU that goes beyond the specific Africa funds.
And I believe this is opening up the possibility, at last of ensuring that
we can attract the necessary resources to achieve the objectives that have
been agreed to.

So, we have agreed that the EU through this partnership will help us to
operationalise the African peace and security infrastructure. In this
context with expertise and with financial resources. And they will ensure,
and as you know, we have always had problems when Africa has attempted to
resolve its conflicts, we do not have the necessary resources the EU has now
committed itself to ensuring that there will be predictable funding for
African led peace support operations.

On democratic governance and human rights it was opportunity, I believe, for
Africa to indicate that we do not need lectures on democracy and human
rights. It was objective and subjective conditions that made it difficult
but we have ourselves initiated the African Peer Review Mechanism (APRM) and
we are happy that Summit agreed to support the APRM and indeed, especially
after we have been reviewed, make available some resources so we can
implement what the review has asked us to implement.

They have also now committed themselves to not come in with new
European-conceptualised human rights initiatives and charters but to support
the African Charter on Democracy, Elections and Human Rights and indeed we
hope that we will take this further.

Let me then say, on the concrete plan of action: I think on peace and
security which everybody accepts to be fundamental and Europe has already
been a key partner with Africa in this regard we have now agreed that rather
than being ad hoc, there will be systematic and regular dialogue on all
issues related to peace and security at technical, senior officials and
indeed at the political level.

It has also been agreed that there will be regular consultations between the
AU Peace and Security Council and the EU Political and Security Committee.
As you will recall, the EU Political and Security Committee is the main
committee dealing with stability in Europe and indeed, internationally.

And indeed, it has now been agreed that there be formalised consultations
for exchange and co-ordination at the highest political level and that
obviously means at the level of Heads of State and Government and as I said,
earlier on other levels of peace and security Europe has now agreed it will
work very closely with Africa to co-ordinate efforts in the international
fora on global issues of common concern and let me add this is not just to
do with Africa but the Middle East, Iraq, the Iranian nuclear issue and
indeed other issues that threatens peace and stability.

We will now set up consultations at Ambassadorial level in Addis Ababa,
Brussels and New York. Discussions have been taking place informally and
bilaterally but consultations will now take place at organised levels in
Addis Ababa, Brussels and New York.

We have now agreed that we will improve the sharing of analysis and reports
on crisis and conflict situations, including what I believe is what we have
been arguing for is to look at the root causes that the necessary security
arrangements will be put in place for the exchange of what they refer to as
sensitive information.

So, for the first time Europe has agreed that it will share with us, I
believe, their intelligence reports, and other sensitive information so that
in the area of peace and security we can try to sing from the same
songsheet.

And we will send joint assessment missions to conflict and post-conflict
areas and we will initiate joint actions where appropriate.

So this is no longer business as usual. This relationship will now take on
the dimensions of a structured one. The AU Peace Fund is going to be used
more aggressively and as I said, they have now committed themselves to using
other funds to ensure that we can effectively carry out this co-operation in
peace and stability initiatives.

They have also agreed in terms of priority 2 to help us operationalise the
African peace and security architecture so, in the area where we have had
some difficulty to get off the ground, Europe's expertise and funding will
help us establish the continental early warning system and facilitate
co-operation between the AU and corresponding structures within the EU.

So this is no longer an informal exchange of information both at sensitive
and non-sensitive levels but the structures have been identified.

The EU will assist Africa in every way to fast track the operationalisation
of the African Standby Force and they will support the regional brigades and
increase their training and logistical support through the relevant EU and
AU structures.

And now there has been an agreement that collectively, and not with
individual countries, we will facilitate training courses, ensure an
exchange of experts and information, joint seminars and initiatives at
continental and sub-regional levels.

And indeed, I want to believe, we will organise as we have agreed more
specific and regular co-ordination of meetings between Africa and the EU.

Again, the funding for this second priority has been identified and we will
now try to ensure that this is no longer just a commitment but will be
carried out.

The third priority area I mentioned – predictable funding for African led
peace support operations, it has been agreed that we will establish a
predictable and sustainable funding mechanism and we will work within the
framework of Chapter VII of the UN Charter to provide sustainable, flexible
and predictable financial support for peace keeping operations.

It is clear that through these processes that have gone a long way, the two
continents highest political leaders have decided that on the peace and
security these are the areas we are going to focus on and this is what we
are going to concretely do.

On democratic governance and human rights, I am not sure why they were
concerned that Africa is not capable of discussing this we were able to
discuss this quite openly, raise issues of concern, our views on how we
should strengthen democratic governance and human rights even in the
developed countries and indeed, we came to a common understanding of various
initiatives we need to undertake.

I cannot go into all of it but let me say, we will develop a platform for
dialogue on all governance issues of mutual interest including political
issues, human rights, children's rights, gender equality, local governance
and situations of fragility which refers to countries in difficulties as
well as, indeed on South Africa's insistence, the issue of the death
penalty. We believe our constitution demands this and therefore it must be
part of our discussions.

Our institutionalisation of discussions of all our senior officials dealing
with human rights dialogue assisted and working with the Africa – EU civil
society will now be enhanced.

We will then promote transparency in the management of natural resources and
conduct a dialogue on relevant international initiatives such as the
extractive industry.

So there are many areas, even on the good governance and human rights that
we can discuss in a structured manner that does not appear to be
confrontational and selective in identifying the areas of governance and
human rights.

And again, let me repeat, that it is clear through our interactions in the
last two years leading up to this Summit that Europe is clearly beginning to
understand Africa's commitment to good governance, human rights, fighting
corruption, etc and are also beginning to understand there are two sides to
the coin – if there is a susceptibility to corruption in African countries
then what about the corruptive partners in the developed countries and
therefore we will work together to deal with this issue and not see it from
time to time in the UN Human Rights Council where selective issues are
placed on the agenda and we seem to be at loggerheads.

And as I said, there is absolute commitment to support the APRM and the
African Charter on Democracy, Elections and Governance and this will be the
framework within which we can increasingly, on an equal basis, discuss this
contentious issue of human rights and governance.

As you know, the challenge of cultural goods – ie. goods taken from Africa
during the slave trade, colonialism and neo-colonialism has been a
contentious one and I believe that we have now reached an agreement where we
can have an inventory in the area of cultural goods between Europe and
Africa and we will exchange ideas on this matter as well as enhance our
dialogue at UNESCO and indeed we will see how we can have Africa's cultural
goods returned to Africa. So that too is an important development and again
different funding institutions have been identified within especially the EU
for us to deal with this matter.

I have already dealt with the trade regional integration infrastructure so I
will not go into this again but I think we have made tremendous progress in
that area.

It does not mean that we totally agreed with the Commission on the ACP
processes but it does mean that they are now aware that there is a
collective African view on the EPAs and therefore they will have to be
conscious of how we progress in the coming period to ensure the post-Cotonou
agreements with the ACP countries are mutually beneficial.

I have already mentioned that we have now taken concrete action on the MDGs
and how to deal with some of these key priorities. Again, identified actions
and indeed the sources of the funding to achieve this.
And so, let me say that I believe this Summit, as I began by saying, was
significant in that it took place.

There is a clear understanding that Climate Change is going to affect Africa
most severely and unless there is an understanding that more needs to be
done to assist Africa deal with this matter of climate change even Europe
will not be spared the consequences. I am very happy that the Bali
discussions, the World Conference on Climate Change seems to be progressing
well and I hope that these discussions in Lisbon have enhanced our own
positions in Bali so that we could argue more strongly on this issue.

Let me end by saying that migration, off course, is a major challenge and
that I am not saying that this is the reason the Summit was so important for
Europe. As I have tried to indicate, Europe has understood that its future
is interlinked with that of Africa but even on the migration issue, a better
understanding has been achieved by the leaders: you cannot deal with this
issue but policing and the tragedy of so many Africans dieing while trying
to get to Europe is a sad state of affairs that we cannot continue to
sustain and therefore we need a better approach to dealing with the
migration issue and there was a clear understanding of the brain drain which
must be more beneficial to both sides and there is a clear understanding
that Europe's visa policies must be re-evaluated so that this imposition of
restrictions on Africans merely because it is assumed we would all be
seeking asylum is not the only way to go about it. But most importantly, a
clear understanding that migration will not be stopped – legally or
illegally (the main concern is the illegal migration because the legal
migration concerns that of experts) unless you also put it into the basket
of sustainable development issues and you also develop Africa in order to
prevent Africans seeking a better life elsewhere.

It was significant that many African countries including South Africa could
show from our experiences that it is an inevitable, logical conclusion that
people who see better pastures will travel from great distances to get
there. Many African countries were able to show that we are all recipients
of migrants – legally and undocumented – and I hope we have emerged with a
better understanding that the migration issue is also a challenge we in
Africa are confronted with. We have a different approach on how we try to
tackle this and you cannot deal with it merely on the basis of law and
order. A holistic approach is needed.

So let me conclude by saying, there are many other areas and I hope you will
study the documents. It was a historic meeting. It is not often that leaders
from Europe at a level at which they were represented can meet leaders of
Africa – not individually, but as a collective and hear the collective
African voice on many issues. It was not as though we caucused on those
issues – it was a genuine feeling of Africans speaking as sovereign African
states but we identified the same challenges while seeking a transformed
relationship with Europe which I believe is in our mutually beneficial
interest. It is our considered view that we have made progress but in the
end we have to continue to hold the partners to the agreements they have
reached included the programmes of action, the institutional frameworks and
indeed I believe we can together make a fundamental change to our challenges
in Africa.