IOL
December
23 2007 at 03:20PM
By Peta Thornycroft
Zimbabwe is
entering "totally uncharted territory", the International
Monetary Fund's
new mission chief Robert Sharer told ambassadors at a
meeting in Harare last
week.
He noted there had been an "exponential upswing" in inflation
since
March - comparable to that in Germany's post-World War 1 Weimar
Republic
before its demise.
"The past is prologue" was the IMF
veteran's forecast - the
authorities would continue "muddling through". His
comments followed a
research visit of three IMF economists to Harare this
week.
He told diplomats he found it "interesting" that neither
finance
minister Samuel Mumbengegwi nor central bank governor Gideon Gono
made any
efforts to meet them. But the private sector was "very dynamic" and
he
admired their "survivability and entrepreneurial
spirit".
Diplomats asked him what should be done to
provide a soft landing for
the poorest in the economy if economic sense ever
returned and there was a
dramatic re-entry into the international arena. For
example, would prices
rocket if controls were lifted?
"What do
you want to protect people from? The World Food Programme is
already feeding
half the country while there is little or no service
delivery when it comes
to health and utilities. The faster the reforms come
the better," he
replied.
Diplomats interpreted him to mean that wealthy urban
Zimbabweans,
including the ruling Zanu-PF, have little idea how most
Zimbabweans are
already operating outside of the economy and have become
totally dependent
on outside help.
Manufacturing and retail
industries have shrunk so much that Zimbabwe
is now able to provide
essentials, including food, for only a minority of
the
population.
A study by the Global Poverty Research Group last year
showed that 50
percent of all urban people are surviving either on
remittances or food from
relatives working outside Zimbabwe.
And this was long before the government froze prices in July this
year,
further destroying production.
Now many commentators and workers in
foreign humanitarian NGOs believe
that almost every family in Zimbabwe
depends on remittances from relatives,
mostly in South Africa.
This week Gono, who has been heading the central bank for the most
disastrous three years of its life and who controls the economy launched
another binge of finger pointing and currency changing.
He
withdrew the highest denomination note of ZIM$200 000 from
circulation and
replaced it with three others, for ZIM$250 000, ZIM$500 000
and ZIM$750
000.
None of these impressive-sounding notes can buy US 50 cents,
or a bar
of soap, which costs about ZIM$5-million.
Gono said he
has decided not to chop off zeroes from the currency, as
he did last year
when computer systems crashed because excessive noughts
were incompatible
with accounting systems.
He was not repeating this because he said
commercial operators had
taken advantage of the change to send prices
"soaring".
He also increased the amount of cash customers could
withdraw from the
banks from the equivalent of R20 a day to R160. This was
only after weeks of
bank customers queuing for hours and even sleeping
overnight outside banks,
hoping to get at their cash.
Beatrice
Mtetwa, president of Zimbabwe's Law Society, said the central
bank was using
what she described as "deliberate control over people's
lives. It is not
coincidental that this is happening over the annual
Christmas and
end-of-year holidays. The effect of the controls will prevent
urban people
travelling to their rural homes". Most opposition supporters
live in urban
areas.
"The limits on cash withdrawals are an assault on property
rights and
also affect people's ability to purchase items for sustenance.
Every aspect
of a human being's most basic rights is affected by the central
bank's
controls," Mtetwa said.
Harare economist and former
president of the Zimbabwe National Chamber
of Commerce, Luxon Zembe, said
the present shortage of cash and the
suffering endured by the poor is
"pathetic".
Gono said he was doing it to curb the black market
trade in foreign
currency. But, critics say he is the central player in the
forex scrum,
which he denies.
This article was
originally published on page 14 of Sunday Argus on
December 23, 2007
Monsters and Critics
Dec 23, 2007, 7:27 GMT
Harare - Police in the
capital Harare arrested a woman in possession of 10
billion Zimbabwean
dollars of new banknotes, just two day after they were
released onto the
market, state media reported Sunday.
The unidentified woman is linked to
a high-ranking official, the Sunday Mail
confirmed. The money is worth
333,000 US dollars on the official market,
The 24-year-old was arrested
on Saturday when police noticed her driving
suspiciously fast through an
area notorious for illegal foreign-currency
deals and
prostitution.
Though she initially told the police she survived by
selling eggs, the woman
was found to have 10 billion dollars of new
500,000-denomination notes
stashed in the back of her car.
The note
was first released to banks late on Thursday, after Reserve Bank
Governor
Gideon Gono announced he was withdrawing the popular 200,000 dollar
note -
then the highest denomination - in a bid to outwit cash hoarders, who
he
alleged included government officials.
Gono blames the so-called cash
barons for the shortages of notes, that have
meant many Zimbabweans are
unable to find cash to pay for basic necessities.
© 2007 dpa - Deutsche
Presse-Agentur
Reuters
Fri Dec 21, 2007 1:00pm
GMT
By Nelson Banya
HARARE (Reuters) - Workers in one of
Harare's big department stores stock
shelves with luxury goods only the rich
can afford, while at an adjacent
bank ordinary Zimbabweans are clamouring
for cash which is the latest thing
in short supply.
Despite the
store's tinsel, Christmas trees and Santa Claus figurines, for
most
Zimbabweans celebrations will be muted in this southern African country
struggling with sky-high inflation and unemployment and severe economic
crisis.
"It is no exaggeration to say Christmas has effectively been
removed from
our calendar," said James Tsomondo, a clerk with an insurance
firm, as he
queued outside a bank.
Even the Christmas carol
proclaiming 'joy to the world' in the upmarket
Barbours department store,
once a hive of festive season shopping but now
largely deserted, rings like
a dirge.
"These decorations are a custom we have to keep up, but it is
increasingly
getting pointless putting up something that says 'merry
Christmas' when
there is no merriment," said a shop
attendant.
Barbours' shelves are stocked with expensive imported goods
which only
wealthy Zimbabweans can afford.
Other Harare shops
reported slow business with the scant activity mostly
confined to Chinese
stores that have mushroomed across the city selling
cheap items such as
clothes and household basics.
Chinese imports have proved a hit in
Zimbabwe, where the world's highest
inflation rate, at almost 8,000 percent,
has ravaged incomes.
NOTHING TO CHEER
As the year draws to a close
-- banknotes have joined the long list of
shortages that include food, fuel,
foreign currency and electricity --
triggering long queues at banks as
desperate shoppers seek cash to buy
necessities ahead of the
holidays.
"One would have hoped to rest, not celebrate because there's
nothing to
cheer, over the holidays. Not to be hunting for cash, after which
you would
have to scrounge for food," Tsomondo said.
The central bank
announced the introduction of higher-value Z$750,000 ($25
[13 pounds] at the
official exchange rate and $0.47 on the black market),
Z$500,000 and
Z$250,000 notes on Wednesday to ease the shortage, but the
measure had no
immediate impact on long queues at banks.
Even the highest denomination
note cannot buy a loaf of bread, which costs
between Z$800,000 and
Z$1million.
A controversial decision by President Robert Mugabe to freeze
prices in June
left bare shop shelves as basic foodstuffs -- many already in
short
supply -- quickly ran out.
Bread, milk, cooking oil, maize meal
and sugar are hard to find but
available on the black market at inflated
prices.
Transport problems, caused by chronic fuel shortages, have also
adversely
affected urban Zimbabweans' customary trip back to rural areas in
the
Christmas season.
Those who manage the trip have to endure hours
in queues as the few
roadworthy buses line up for subsidised government
fuel.
Many Zimbabweans look at the New Year with
trepidation.
"This year has been bad, I wonder how much worse it will get
next year,"
says Patience Machingura, a mother of five.
"That's why I
cannot be caught up in the Christmas excitement, only to
struggle to buy
(school) uniforms and pay school fees, come January," she
added.
Some
still look forward to celebrating Christmas, despite the gloom. Garikai
Mandebvu, a Zimbabwean resident in the United Kingdom, says he is shocked at
how things have changed for the worse since he visited last year.
"It
is a shock, but the biggest surprise is the fact that people here have
survived it all," Mandebvu said. "For me, that's enough cause for
celebration with my family, just like the good old days."
(Editing by
Marius Bosch and Peter Millership)
IOL
December 23 2007 at
03:56PM
Harare - Zimbabweans battled on Sunday to change temporary
currency
into new banknotes before it becomes worthless on December 31, as
the
country's central bank tries to tackle a shortage of cash in the
country.
Bearer cheques, essentially money printed on ordinary
paper, were
introduced in 2003 as a temporary expedient measure to ease
currency
shortages caused by skyrocketing inflation, and expire at the end
of the
year.
Banks opened extraordinarily this weekend to cope
with customer
demand, made worse by the fact that ZIM$200 000 (about eight
dollars) bank
notes will also become worthless on December 31.
They are being replaced by ZIM$250 000, ZIM$500 000 and ZIM$750 000
notes,
in a move announced only last week by the central bank as the latest
effort
to tackle Zimbabwe's cash shortages.
Central bank governor Gideon Gono admitted in the state-run Sunday
Mail that
it will not be possible for everyone to get their money in time.
"It is against this reality that we have said banks would be open, not
only
on Sunday and Monday, but also on Tuesday and Wednesday - that is on
Christmas and Boxing Day," he told the newspaper.
One irate
customer, Enoch Dube, said that despite waiting in line for
hours, he had so
far failed to access his money.
"Yesterday (Saturday) I was number
500 on the line and I got nothing,"
Dube told AFP. "Today I am again in the
line and I do not know if I will get
anything despite that I was here" from
early hours of the morning.
Zimbabwe is in the eighth year of
economic recession characterised by
record inflation and high unemployment
which has reduced at least 80 percent
of the population to living below the
poverty threshold. - Sapa-AFP
Famous faces at the Vigil
today. We reckon we could field a reasonable
Zimbabwe soccer team. With us
were: Memory 'Gwenzi' Mucherahowa (former
Dynamos FC captain and manager),
Joe 'Kode' Mugabe (former CAPS United
captain and former Sporting Lions
coach), Blessing Nkatia (Dynamos),
Panganayi Kuzanga (Black Aces and Grain
Tigers) and our regular supporter
Moses Kandiyawo (Acadia United, Air Zim,
Sporting Lions).
While constructing our football team we could also plan
a new band with the
brilliant talent Zimbabwe is exporting. Willard Karanga
(trombonist for
Thomas Mapfumo) said how dreadful it was that everyone was
being forced into
exile. He said several members of the band that toured
the US with him were
now seeking asylum in the UK. 'Our music is not
allowed in Zimbabwe', he
said. Also with us was Fungai B Gahadzikwa (mbira
player with the band
Ambuyo Biula Dyoko).
On the last Vigil before
our 6th Christmas loads of people took enormous
trouble to be with us. We
took the banners down before the end because we
could not fit everyone in
between the four maple trees outside the Embassy.
When we gathered to sing
the national anthem at the end we filled the whole
piazza again. We are
surprised that Zimbabweans in the UK hold meetings to
clash with the Vigil.
We want to work with everyone on a non-party
political basis to make the
plight of Zimbabwe a world concern. Certainly
there are people who see this
as the Vigil's role - hence the support for
our trip to
Lisbon.
Friends in South Africa are keeping us informed of the work of
Zimbabwe
Democracy Now. Most recently they erected three banners greeting
delegates
after the ANC gathering congratulating South Africa on its
democracy. The
banners demanded similar freedoms in Zimbabwe. We displayed
their huge
banner at the Lisbon summit 'Mugabe you would be more welcome in
the Hague'
and we are giving away their scratch cards at the Vigil
(www.zimbabwedemocracynow.com).
The
day's highlight was the first birthday party for Zizi, son of Gugu
Ndlovu-Tutani and Vigil co-ordinator Dumi Tutani. The proud parents brought
a cake with a portrait of Zizi in icing on the top. Another happy
announcement was the engagement of long-term supporter Arnold Kuwewa to
Agnieszka Mizerek from Poland. It was good to welcome back Yvonne Fombe for
the first time since her baby was born.
A happy Christmas to all our
supporters - hopefully our last! Thank you for
your support over the past
year.
For this week's Vigil pictures: http://www.flickr.com/photos/zimbabwevigil/
FOR
THE RECORD: 185 signed the register.
Please note there will be no Forum
this week. The next Forum will be on
Monday, 7th January 2008.
Vigil
co-ordinators
The Vigil, outside the Zimbabwe Embassy, 429 Strand,
London, takes place
every Saturday from 14.00 to 18.00 to protest against
gross violations of
human rights by the current regime in Zimbabwe. The
Vigil which started in
October 2002 will continue until
internationally-monitored, free and fair
elections are held in Zimbabwe. http://www.zimvigil.co.uk
SABC
December 23,
2007, 06:30
Zimbabweans working in South Africa are flocking to the Beit
Bridge border
post for their festive pilgrimage back to families in their
home country.
SABC news office in Polokwane reports that many of the
vehicles crossing
into Zimbabwe are pulling trailers packed with goods.
Zimbabwe is still
battling with a shortage in basic foods. An immigration
officer, who works
at the border post, says they expect more traffic this
evening.
Zimbabwe's Reserve Bank Governor Gideon Gono recently announced
the
immediate introduction of higher denominations of banknotes in a bid to
tackle cash shortages fed by runaway inflation. 250 000, 500 000 and 750 000
Zimbabwe dollar has since came into circulation.
Gono said 200 000
notes, the equivalent of R56 introduced only last July,
will cease to be
legal tender from the end of the year. He said he hoped the
new notes will
mean cash shortages will be a thing of the past.
IOL
December 22 2007 at
04:19PM
By Thabiso Thakali
In a massive clamp-down on
unroadworthy death-trap buses, the
Johannesburg Metro Police have
confiscated the operating licences of 11
buses found to have defective parts
including steering wheels.
In one incident at a roadblock this week
officers were shocked to find
a 70-seater bus headed for Harare with
defective brakes, cracked
windscreens, broken wipers, bald wires, a
dysfunctional fire extinguisher,
and oil leaks that police said threatened
the safety of passengers.
Not only was a ticket issued for
overloading of passengers, but the
bus was also heavily laden with goods.
Its passenger door was held closed
with a rope, while just inside the door,
an assistant driver helped prop up
a tower of
suitcases.
Metro Police Inspector Venda
Mamabolo, who pulled the bus over, was
appalled, describing the vehicle as
being in a shocking state for ferrying
passengers long
distance.
"If the engine overheats, the oil leaks could easily
catch fire. Buses
like this not only pose a danger to those they transport,
but to other road
users," she said.
Metro Police director of
operations David Tembe said operators of
buses that had been stripped of
their licences were required to pay a R1 500
fine in order to get their
vehicles released from the pound, and that they
would have to fix the
vehicles at a reputable garage.
"Once the bus has been fixed then
it will be taken to a testing
station for a thorough re-testing to determine
its fitness to be on the
road," said Tembe.
Mamabolo said it
was shocking to realise the bus had travelled through
other towns and had
even crossed an international border in such a
condition. She said while
there had not been many road accidents involving
such buses, it was worrying
to consider what could happen if they were
involved in
accidents.
"Some of them drive at 40km/h on the freeway and this
could be the
reason they have not been involved in accidents, but this can
also be
dangerous as it falls way below the minimum speed allowed on a
freeway," she
said.
Some of the buses that have had run-ins
with the traffic cops are
owned by the Zimbabwean government through its
development co-operative.
This article was originally
published on page 3 of Saturday Argus on
December 22, 2007
Islamic Republic News Agency
Tehran, Dec 23, IRNA
New Zimbabwean ambassador to Tehran Nicholas
D. Kiti Kiti delivered his
credentials to President Mahmoud Ahmadinejad on
Sunday.
President Ahmadinejad said Tehran feels free for expansion of
all-out
relations with Harare.
Ahmadinejad said that the two
countries should explore the grounds and
potentials to boost
cooperation.
He said that, given common stand and mutual cooperation at
international
fora, the two countries are now experiencing developing ties
in cultural and
economic fields.
The two nations have always resisted
to the bullying powers, he said adding
that Iran strongly defends the
legitimate rights, independence and
development of Zimbabwe.
The new
Zimbabwean ambassador, for his part, lauded the supports extended by
the
Islamic Republic of Iran for Zimbabwe against aggressions of bullying
powers.
Harare calls for expansion of all-out ties between the two
countries, he
said adding that his country seeks to benefit from Iran's
invaluable
experience at various sectors.
Zimbabwe has always called
for expansion of economic cooperation with
Tehran, he said.
The Zimbabwean
Sunday, 23 December 2007 07:21
The National
Constitutional Assembly (NCA) is disturbed by the continual
abuse of
legislative and executive powers by the house of assembly and the
executive
in Zimbabwe. The recent passing of the amendments to the Access to
Information and Protection of Privacy Act (AIPPA), Broadcasting Services Act
(BSA), Public Order and Security Act (POSA) and the Electoral Act is a
direct violation of the peoples rights. The NCA is concerned because no
body was given a mandate by the people of Zimbabwe to right a constitution
for them or has a right to impose a constitution on the people.
The NCA
dismissed the recent amendments to the Electoral Act, AIPPA, POSA,
and BSA
as a non-event. It is the NCAs belief that the amendments are a
ploy by
politicians to entrench their power and the amendments will achieve
nothing
for ordinary Zimbabweans. The NCA further reiterates that attempts
to impose
peace meal amendments to the constitution will be vigorously
defended and
rejected.
What the people of Zimbabwe need is a people driven constitution
not a
political settlement between political parties.
We note with regret
how the constitutional crisis is being used to the
advantage of politicians.
For minister Chinamasa to say to the MDC Its a
50-50 situation, you give
in order to get something back its an undermining
of democracy and
constitutionalism. It answers the suspicions that we have
always had that
there is nothing for the people in these amendments but
everything for the
politicians. Do we write constitutions for the people or
for
politicians?
It is only a new constitution that can stand as a voice of
morality and
vision for a prosperous Zimbabwe. These amendments will do
nothing to stop
the manipulation of voting rules, repression of free
expression and
intimidation of voters so totally that the aging president
will continue
gripping on to power, his iron fist tighter than ever. These
amendments are
not what the people wanted as they were never consulted. Why
politicians
(especially the MDC) would be fooled to think that the President
will not
evoked his constitutional presidential powers to have his way in
the
election is mystry.
It is high time that the politicians of our land
show single-mindedness and
unswerving commitment to the cause of the people
and not be guided by
emotion and personal interests. We do not believe that
in this era people
can continue to pretend to be men of the people but
rather they should try
to be men for the people.
Our once placid nation
has been thrust into chaos because of a
constitutional crisis. It is the
process and the contents of our current
constitution which was not for the
people but for a few politicians who were
negotiating for power which is the
source of our current problems. And as
such the solution does not lie in
imposing a constitution to the people;
rather it lies in giving the people a
right and a chance to participatory
democracy. Participatory constitution
making is today a fact of
constitutional life as well as a good in itself.
We, the NCA has always
reiterated that both the process of making a
constitution and the contents
thereof are equally important. A democratic
constitution-making process is,
in the words of African observer Julius
Ivonhbere, critical to the
strength, acceptability, and legitimacy of the
final product.
If Zimbabwe is ever going to be a legal democracy, this has
to be
underpinned by a brand new people driven constitution that guarantee
individual rights and equality before the law. New institutions to support
the transitional democracy can then be set up and running (Including a
constitutional court- the highest court of the land) once a new constitution
is in place
By Maddock Chivasa
National Spokesperson
National
Constitutional Assembly Zimbabwe