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

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Mugabe tells ZANU PF youths to fight back
Mon 18 July 2005

      MASHONALAND WEST - President Robert Mugabe at the weekend urged youths
of his ruling ZANU PF party to fight back should the opposition become

      Addressing about 10 000 supporters at Mwami rural business centre,
about 240 km north-west of Harare, Mugabe said he could not fathom ZANU PF
youths losing in a violent confrontation against their rivals from the main
opposition Movement for Democratic Change (MDC) party.

      "There is no way I can take it that some of the ZANU PF youths can be
beaten by those from the opposition.. You have to fight back, why are you so
lazy (to fight)," Mugabe told the youths at the rally held to celebrate the
ruling party's victory in the disputed March 31 parliamentary election.

      This is not the first time that Mugabe has called on his party to use
violence against the opposition.

      During the violent invasion of white-owned farms by ZANU PF militants
and self-styled veterans of Zimbabwe's 1970s independence war, Mugabe
ignored court orders to arrest the illegal farm invaders and instead
publicly encouraged the invasions saying they were genuine demonstrations of
land hunger.

      At least seven white farmers were murdered during the farm invasions
and several hundreds of their black workers beaten up by the war veterans
and ruling party supporters.

      Church and human rights groups have in the past also accused ZANU PF
youth militias of hunting down perceived MDC supporters in remote rural
areas such as Mwami and raping, torturing and murdering them. ZANU PF denies
the charges and says it does not encourage violence by its youths or

      Mugabe also told the villagers, most of them facing starvation after
poor harvests last season, that his cash-strapped government had bought
enough maize from neighbouring South Africa to ensure no one starves.

      An estimated 1.2 million tonnes of the staple maize are required or
four million people, a quarter of Zimbabwe's 12 million people, will starve.

      The government, which last year banned international food agencies
from giving aid to Zimbabwe and told them to take their food elsewhere
because the country had enough, backtracked last month allowing the World
Food Programme to resume general relief operations in the country. -
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UN envoy to present findings on Zimbabwe

Anne Tibaijuka, the UN envoy to Zimbabwe

July 19, 2005, 06:15

A United Nations envoy who investigated Zimbabwe's demolition of shanty towns will present a report of her findings to Kofi Annan, the UN secretary-general, in the next few days. According to the Zimbabwean government, the demolitions are part of a clean up campaign to rid urban cities of crime and illegal trading.

Anna Tibaijuka, the UN envoy, is expected to brief reporters at the UN headquarters in New York, on her exhaustive fact-finding mission to Zimbabwe. The envoy says that the report is expected to be made public by Friday or Monday.

The United Nations estimates that 200 000 people have been left homeless in the nearly three-month campaign to demolish shacks and other unauthorised dwellings. The Movement for Democratic Change has denounced the blitz as a campaign of repression and says up to 1.5 million Zimbabweans have lost their homes.

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Cape Times

      A window of opportunity?
      July 19, 2005

      By the Editor

      The South African government's coyness on whether or not it is about
to give a substantial loan to cash-strapped Zimbabwe is a sure sign that the
deal is, at least, on the table.

      And Zimbabwean President Robert Mugabe's fulsome praise for South
Africa at the weekend might also suggest that something is in the air.

      Reports have suggested that South Africa is set to extend a line of
credit to its neighbour for electricity, petrol and food.

      Some have put the figure at R6.5 billion, but others suggested it
would run into hundreds of millions rather than billions of rands.

      The prospect of South Africa being seen to lend a helping hand to the
despotic Mugabe has already been enough to disturb some of our citizenry.

      They point to the the battering that "quiet diplomacy" towards
Zimbabwe has done to this country's international image and fear that it
will be worsened.

      They might, however, want to contemplate a broader context to the
issue (while hoping that the government is doing the same).

      There have been, for example, reports that Zimbabwe may be expelled
from the International Monetary Fund. There are also indications that
international pressure on the country may intensify once the United Nations
secretary-general's special envoy, Anna Tibaijuka, has reported back on the
recent evictions of shack dwellers and informal traders.

      In Zimbabwe, MPs from the ruling Zanu PF party recently staged an
unprecedented protest against petrol shortages.

      Closer to home there have been hints from within the South African
government that its patience with Mugabe has worn thin and it is intent on
taking a harder line.

      And now Mugabe desperately needs our help.

      The time, it would seem, is ripe for South Africa to forcefully use
the leverage it has earned and that this opportunity presents.

      And in doing so to ensure that it is helping the people of that
country, not its increasingly dangerous leader.

      Or would that be asking for too much?
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The Scotsman

            Tue 19 Jul 2005

Zimbabwe housing crisis


HUNDREDS of thousands of Zimbabweans made homeless by the brutal campaign of
president Robert Mugabe to clear out slums look set to remain out in the
cold for months.

Press reports claim that construction teams and prison brigades working on
replacement accommodation at a farm in the capital Harare have managed to
build only 38 homes up to window level.

Up to a million Zimbabweans have had their homes demolished during a
two-month blitz on poor quality housing, which has provoked international

Mr Mugabe hit back last week, saying that Operation Clear Out Trash will
bring "joy" to people because new homes are going to be built for them.

But ruling party sources say his government is broke. At Whitecliff Farm,
one of the sites earmarked for a massive housing development, "at least 38
houses [are] now at window level, while more than 150 others are at various
stages of development," the Herald reported.

The opposition MDC party says that Mr Mugabe is intent on punishing city
dwellers who voted against him in parliamentary elections in March.
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Business Report

Doubt over Harare's ability to pay
July 19, 2005

By Andile Ntingi

Johannesburg - Although South Africa has its fair share of socio-economic
challenges, it has enough financial resources to assist Zimbabwe with the $1
billion (R6.67 billion) loan that Zimbabwe is reported to be begging for to
address its shortages of food, fuel and electricity.

"We do have the money to give such a loan," said Nico Kelder, an economist
at Efficient Group. "However, I don't think Zimbabwe will be able to repay
the loan in the next few years."

Reuters reported yesterday that Reserve Bank governor Tito Mboweni and a
delegation from Zimbabwe met on Friday.

"There was a meeting on Friday at the treasury, and the governor attended,"
said bank spokesperson Samantha Henkeman. She gave no further details, and
treasury officials were unavailable for comment.

Economists said a $1 billion credit extension to Zimbabwe was unlikely to
upset South African government finances as the state was sitting on a R43
billion cash pile at the end of last month, which could be drawn down to
help the ailing northern neighbour.

Apart from the R43 billion, the government could easily raise the money
either through the domestic capital markets, tax receipts, or short-term
loans from local commercial banks.

Kelder said Zimbabwe did not have the money "because they are not
implementing the right policies and that is why the International Monetary
Fund and the World Bank have withdrawn their support".

Goolam Ballim, the group economist at Standard Bank, said the potential $1
billion loan to Zimbabwe would not stretch South Africa's budget deficit to
levels that could be deemed imprudent.

"The 2005/06 budget deficit may come in shallower than presently budgeted.
This would suggest that the government does have fiscal space to provide
funding to Zimbabwe," said Ballim.

"South Africa has a huge socio-economic deficit that gives it very little
space to disperse funds to foreign governments.

"However, given the humanitarian difficulties in Zimbabwe, such an
engagement may give South Africa a leverage to nudge Zimbabwe towards a
stable and prosperous political and economic dynamic," he said.

South Africa's budget deficit came in at 1.5 percent of gross domestic
product in the 2004/05 fiscal year, thanks to a R9.6 billion revenue

Economists believe that the budget deficit for 2005/06 will be between 1.8
percent and 2.5 percent of gross domestic product, lower than the 3.1
percent budgeted for by the government.
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UN's Annan Concerned Over Demolitions In Zimbabwe

UNITED NATIONS (AP)--U.N. Secretary-General Kofi Annan expressed increasing
concern over the impact of Zimbabwe's destruction of shantytowns and
informal markets on hundreds of thousands of poor people who are now
homeless and jobless.

The statement from Annan's spokesman was released as his special envoy, Anna
Tibaijuka, headed to New York with a report on her two-week visit to
Zimbabwe to assess the humanitarian impact of the government's program known
as Operation Murambatsvina, or Drive Out Trash.

"The secretary-general will receive her report in the coming days and will
study its contents to determine the next steps for the United Nations," U.N.
deputy spokeswoman Marie Okabe said.

The government of Zimbabwe will get an advance copy of the final report and
be given 48 hours before it is made public, probably on Friday or Monday,
she said.

While Tibaijuka's conclusions have not been disclosed, the statement from
Annan's spokeswoman foreshadowed strong criticism.

"The secretary-general is increasingly concerned by the human rights and
humanitarian impact of the recent demolitions of what the government of
Zimbabwe has called illegal settlements," Okabe said.

Humanitarian workers and opposition leaders estimate up to 1.5 million
people have lost their homes and livelihoods since police began torching and
bulldozing shantytowns, informal markets and other structures deemed illegal
on May 19.

President Robert Mugabe's government defends the operation as an urban
cleanup drive. Opposition leaders say it is aimed at breaking up their
strongholds among the urban poor and diverting attention from the economic
crisis plaguing Zimbabwe.

The government has pledged 3 trillion Zimbabwean dollars (US$325 million) to
provide 1.2 million houses or building plots by 2008.

Economists have voiced doubts that the government can afford the massive
reconstruction project at a time when inflation has soared to more than 144%
and an estimated 4 million people are in urgent need of food.

Tibaijuka, the Tanzanian head of Nairobi-based U.N. Habitat which deals with
the plight of cities, has said she would immediately dispatch an officer to
help Zimbabwe meet its housing needs.

(END) Dow Jones Newswires


  Copyright (c) 2005 Dow Jones & Company, Inc.

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Incident at CWUZ House - 16 July 2005

The Commercial Workers Union of Zimbabwe (CWUZ) was to hold its
National Executive Committee at 10.00am on Saturday 16 July, at CWUZ
House in Waterfalls, Harare.

We (members of the NEC plus National Young Workers Committee) arrived
at CWUZ House at about 9.30am.  At the gate, a number of CWUZ staff
were milling about.

We entered the building, and went to the Boardroom.

Before we could start the meeting, a large number (about 15) of the
Union staff followed us into the Boardroom.

These staff are strictly not members of the NEC and so, anticipating
problems, I led the NEC out of the Boardroom, out of the building and
towards the gate.

As we were approaching the gate, the staff followed us into the yard
shouting to the security guard to close the gate to prevent us from
leaving.  They were also shouting at us asking us why we had left
without holding the meeting.  We continued walking towards the gate
and the staff attacked us from behind.

I was attacked by Messrs J Chifamba (previously Chiwape), Muparaganda
and Rusere (all three are CWUZ staff).  We scuffled.  They beat me
with their fists all over my body, continuing to shout about why we
had left the meeting.

In the scuffle, J Chifamba pushed me to the ground and I fell
backwards hurting my left arm.

Other Union staff were attacking Miss Shyllet Gutu (the Union's
Financial Advisor) and Mr Mishek Gapare (the NEC member from

After further struggles, we managed to get out of the gate and went
straight to the Police Station in Waterfalls to make a report.

We (myself plus four NEC members and four Young Workers) reached the
Police Station at about 10.30am.  The Police took details from all
three of us (Shyllet Gutu, Misheck Gapare and myself).

As the Police finished taking our details, about six of the staff
arrived and made a contradictory report, alleging that we had
attacked them.  We three were then detained, the Police suggesting
that we had willingly walked to the meeting place and thus brought
the attack upon ourselves.  We tried to explain that the meeting
place was our offices, but the Police would not listen.  Eventually,
we were forced to pay admission of guilt fines of $25 000 each.
Messrs Chifamba and L Mushonga also paid fines.  Other attackers had
not come to the Police Station and so I do not know whether they also
paid fines.

We were released at about 2.00pm, by which time my arm was swollen
and very painful.  A friend of mine, who had been waiting for three
and a half hours at the Police Station, took me to the Trauma Centre,
where my left arm was found to be broken in two places, and was put
in plaster.

L G Matibenga (Mrs)
18 July 2005

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Gulf Daily News, Bahrain

      Kiwi tour of Zimbabwe on despite poll verdict
      WELLINGTON: New Zealand will not stop its national cricket team
touring Zimbabwe despite an opinion poll suggesting its citizens would
support a ban, Prime Minster Helen Clark said yesterday. New Zealand is
leading an international push to have Zimbabwe banned from the cricket tour
schedule over concerns of human rights abuses under President Robert Mugabe.
A Fairfax/AC Neilsen survey, published in Wellington's Dominion Post
newspaper, found that 53 percent of respondents wanted the government to
introduce legislation banning sports teams from touring countries that
violate human rights.


      "The proposition put to the Government was that there should be
legislation under urgency to prevent national sports teams travelling to
another country," Clark told reporters. "That is territory no New Zealand
government has ever entered into and we don't propose to.

      "(But) we will continue to advocate that the team not go."

      Miss Clark said it was clear New Zealanders did not want the tour to
go ahead.

      "Obviously it is of concern that our cricketers might get caught up in
circumstances which compromise them."

      New Zealand had asked the International Cricket Council (ICC) to
change its policy requiring teams to tour Zimbabwe.

      Foreign minister Phil Goff said last Friday the government would not
step in and legislate, citing the right of individuals and organisations
from New Zealand to travel freely.

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The Herald

Bid to improve statistical data accuracy

Deputy Business Editor
THE recent adoption by Zimbabwe of internationally accepted standards of
calculating the inflation rate will go a long way in improving statistical
information accuracy and decision-making at corporate and national levels.

As part of ongoing efforts to harmonise statistical data within the Sadc
region to facilitate inter-country comparisons, Zimbabwe has factored in new
weights and classifications when calculating the Consumer Price Index (CPI).

According to the Central Statistical Office (CSO), the new method was
adopted with effect from June 2005 after the previous basket was last
updated more than 10 years ago. The shift to a new classification of
individual consumption by purpose (COICOP), which ensures the comparability
of individual consumption estimates according to the requirements of
international standards, sets up the expenditure of individual consumption
in three institutional sectors, namely households, non-profit organisations
serving households and general government.

In this respect, the number of sub-groups used in CPI calculation has
increased from 34 to 68 while the number of major groups has gone up from 10
to 12.

On the other hand, the number of items in the CPI basket has also been
increased to 428 from 337 leaving it more disaggregated.

Concerns have been expressed in the past about the accuracy of the
statistical data released by the CSO with some analysts urging the
organisation to review the basket composition to improve decision-making.

The classification is also used in household budget surveys, to determine
individual consumption volume, in estimates of consumption price indices as
well as to meet the requirements of international comparisons.

The increase in the number of items in the basket now captures more
information which should result in more accurate inflation figures in the
long run, although direct comparison of certain sub indices was likely to be
compromised in the short term.

Monthly inflation comparisons should be achieved next month when the July
figure is announced while annual inflation rates should be achieved using
the June 2006 rate.

Due to the reclassification some new sub-groups have been created by moving
individual items from one sub-group to another.

"Transport and Communication" had been split into two major groups
"Transport" and "Communication" while a totally new group --- "Restaurants,
Cafes and Hotels" --- has been created.

Meanwhile, last season's drought coupled with foreign currency shortages and
other unanticipated strains on the fiscus have continued to exertpressure on
the annual inflation rate which has increased for the third month in a row.

The year-on-year inflation rate for the month of June 2005 as measured by
the all-items CPI stood at 164,3 percent, gaining 19,9 percentage points on
the May rate of 144,4 percent.

Prices has been escalating since March and further increases in the
inflation rate are expected for July following the recent hike in the price
of fuel.

However, the inflation rise induced by fuel price increases and drought is
not peculiar to Zimbabwe as many non-oil-producing countries are also
feeling the pinch in the wake of a progressive rise in the international oil
price increase from US$27 per barrel in January to US$60 per barrel while
the dry spell has also affected other countries in the region.

Only last week Zambia announced an increase in the price of petrol from K5
165 per litre to K5 428, diesel from K4 622 per litre to K4 958, while
paraffin would now be sold at K3 940 from K3 760 per litre.

According to the Zambian News Agency (Zana), Zambian central bank governor
Mr Caleb Fundanga warned the recent hike in fuel prices and shortages in
food supply would ignite inflationary pressures in the third quarter.

He urged the country to buy its food requirements on time to prevent
shortages while inflation in the second quarter was unavoidable due to
increases in retail pump prices of petroleum products and electricity.

Inflation in Zambia is currently pegged at 19,2 percent, three percentage
points higher than the projected 15,9 percent.

However, Zambia is likely to cushion the inflationary pressures with the
help of improved balance of payments support following approval of the
second review of the Poverty Reduction Growth Facility (PRGF).

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