The ZIMBABWE Situation | Our
thoughts and prayers are with Zimbabwe - may peace, truth and justice prevail. |
Harare - President Robert Mugabe on Sunday postponed his usual
reception
before the opening of parliament this week, an event that some
diplomats,
civic leaders and opposition politicians had said they would
boycott.
The government said Mugabe's usual lavish reception that was to
take place
on Monday was "postponed to a date to be advised."
However,
military aircraft, mounted police and troops rehearsed for
Tuesday's
ceremonial opening of the parliament by Mugabe, which hadn't
been
cancelled.
All invitations to Monday's event, including those to
foreign diplomats,
civic and business leaders and ruling party officials,
were cancelled, it
said.
No reasons were given but opposition
lawmakers, some diplomats and civic
leaders said they would boycott
it.
Mugabe's support has plunged to its lowest as Zimbabwe faces its
worst
economic crisis since he led the nation to independence in 1980.
Dwindling
crowds have attended his recent ruling Zanu-PF party
rallies.
Lawmakers of the opposition Movement for Democratic Change have
in the past
boycotted Mugabe's opening of parliament party and have walked
out of the
house when Mugabe began his opening speech.
At the annual
state opening of the parliament two years ago Mugabe, riding
in an open,
vintage Rolls Royce used by colonial era British governors, was
jeered by
protesters.
Last year, police prevented demonstrations by sealing off the
main square
opposite the parliament building.
Business Day
Anglo American 'unaware of legal
action'
----------------------------------------------------------------------------
----
By
Charlotte Mathews
Inflation and foreign exchange problems for SAowned
firms operating in
Zimbabwe are being compounded by renewed pressure from
legal and political
developments.
Anglo American spokeswoman Anne
Dunn said yesterday that Anglo American was
not aware of the legal action
being brought by Zimbabwean farmers.
Hippo Valley said earlier that it
had been taking cane from commercial
farmers and newly resettled farmers in
terms of existing contracts.
The Sugar Production Control Act states
millers are legally obliged to
receive cane grown in Zimbabwe.
Hippo
has not paid any party for cane deliveries and has instituted
interpleader
proceedings in the High Court for a ruling on the
competing
claims.
Chissano Takes the Baton
Sunday Times (Johannesburg)
July
20, 2003
Posted to the web July 21, 2003
Johannesburg
The new
AU chairman is a man of God on a continent where politicians think
of
themselves as gods, writes Ranjeni Munusamy
'The best thing is for me to
be as I am, not to be someone else. I admire
the qualities of President Mbeki
. . . I may be tough in my own way. He is
tough in his own
way'
JOAQUIM Chissano sits with his head bowed at the front of
Maputo's Catholic
Cathedral. The early-morning sunlight diffused through the
stained-glass
windows spills over him, making him look like an apparition in
the dimly lit
church.
It's as if the heavens are participating in an
elaborate scheme to project
the man as a saint.
Small birds flutter
about the high ceilings, making a din with their
feverish
twittering.
The Mozambican president is oblivious to the sound as he
pages through his
Sunday Missal, searching for the day's readings.
The
choir starts singing and the orthodox character of the church is
transformed
by the rhythm of bongo drums and upbeat hymns. Chissano sings
all the hymns -
in Shangaan and Portuguese - without a hymn book.
The congregation is
unruffled by his presence. Nobody stares at him or tries
to push forward to
greet their president. Obviously he is a regular.
It's the morning after
a week of frenzy in Maputo. African heads of state,
ministers, ambassadors,
officials, security personnel and hordes of
journalists flooded the
Mozambican capital for the summit of the African
Union.
For a week,
life in Maputo was dramatically altered, with traffic flows
sporadically
interrupted by flying convoys, streets cordoned off, blaring
sirens and
foreigners - particularly South African officials and security
personnel -
taking over the city.
Chissano, 64, took over chairmanship of the AU from
President Thabo Mbeki
and played host to about 40 African leaders attending
the gathering.
It required chairing lengthy debates- some acrimonious -
about pressing
issues and problems, including 11 conflict situations, the
setting up of AU
institutions such as the Peace and Security Council, and the
New Partnership
for Africa's Development .
The night before, he had
presided over the closing ceremony at which members
of the new AU commission
were sworn in, and sat patiently while Africa's
most flamboyant leader,
Libyan President Muammar Gaddafi, rabbited on for
about 40 minutes in what
was meant to be a brief vote of thanks.
Chissano then addressed a media
conference and later indulged journalists
with individual interviews. Late
into the night, he fielded courtesy calls.
So it's somewhat surprising
that he is up at the crack of dawn on this crisp
Sunday morning to pray.
Considering the company he's kept over the preceding
days, men who think of
themselves as gods, the image of him kneeling in the
pew is
humbling.
But then Chissano doesn't quite fit the mould of a stereotype
African
leader.
He arrived at the church in an Audi, escorted by one
unmarked car of
bodyguards.
When the collection plate is passed
around, he reaches into his pocket for a
bank note.
And when the
priest announces at the end of Mass that Chissano is the new
head of the
continental body and the congregation erupts in loud applause,
he looks
embarrassed.
This from a man with a lifetime in politics, beginning in
1952 as a student
activist. Ten years later, he joined the Front for the
Liberation of
Mozambique ( Frelimo) and climbed steadily up its ranks as
Mozambique fought
for national liberation. In 1983 he was elected to the
Political Bureau and
has been president of the Frelimo party since
1986.
In the same year, he became president of Mozambique. He managed
the
introduction of a multiparty constitution and a peace agreement with
the
rebel group Renamo.
Under his leadership, Mozambique, among the
world's poorest countries,
having been devastated by a protracted civil war
and socialist
mismanagement, is now renowned for having achieved one of the
highest growth
rates in the world.
He confides that during the summit,
someone asked him what his magic formula
was for the high-speed
reconstruction of his country - an open invitation
for a politician to wax
lyrical about his virtues. Chissano doesn't.
"It's not the state but
ordinary people who are doing it," he says.
At the presidential palace,
he agrees to be interviewed in the sprawling
garden, reassuring the
photographer and cameraman that he doesn't mind
having to sit facing the
blazing winter sun for an hour.
Liberties such as invading the
president's privacy in church and at home are
rare for South African
journalists. So when it is announced that Chissano
would like to have
breakfast with us and aides march out into the garden
with crockery, food and
drinks, we have to make an effort not to look
shocked.
When he speaks,
it is difficult to resist the temptation to compare him with
Mbeki, his AU
predecessor.
Asked what the major achievements of the AU summit were, the
first thing
Chissano lists is a discussion on HIV/Aids.
He says a
video conference during which six cities around the world were
linked to
Maputo was a milestone in advancing the Aids cause. Never before
has Africa's
political leadership been engaged in such a dialogue.
Mbeki's pet
project, Nepad, is second on Chissano's list, followed by the
progress
reports on Africa's conflicts.
Disappointments? The fact that the
delegates were so immersed in serious
discussions that they did not have time
to see all the cultural shows, art
exhibitions and theatre productions that
ordinary Mozambicans had put on.
It's hard to imagine Mbeki even thinking
about art while attending a
political summit.
Under Mbeki, the AU took
on a very distinct character as he attempted to
drive it with military
precision, focusing on programmes he regarded as
being of primary importance
- conflict resolution and advancing the Nepad
mission to bring democracy,
good governance and development to Africa.
Chissano identifies the same
targets, but makes it clear he will go about
things differently.
"The
best thing is for me to be as I am, not to be someone else. I admire
the
qualities of President Mbeki, [he] has had a good impact on the AU.
"I
have my way of doing things and it will have the same impact, the
same
results.
"I may be tough in my own way. He is tough in his own
way . . . I don't
think we can compare."
Mbeki's biggest challenge was
to propel his 52 counterparts on his desired
trajectory. Chissano recognises
why this is difficult.
"We are united in a common cause [ Africa's
development], it is a matter of
approaches. Because of the differences in
countries, we are not at the same
level in our economies, education and
development.
"Our countries were not born at the same time or in the same
way. There is a
diversity in the perception of issues."
He says it is
therefore necessary to develop common agendas among countries
in the five
regions of Africa .
Another mission he has identified is to engage the
media in Africa.
"There is a disparity of opinion-makers. It is necessary
to engage in
dialogue with the media to build a common perception between
policy- and
opinion-makers so that we deliver the same message to our
people.
"The message should be the same from Mozambique to Algiers and
Ethiopia."
Mbeki muddied himself by brawling with Gaddafi. The Brother
Leader is
eccentric and does not argue logically, so Mbeki ended up looking
indignant
and irritated.
Chissano will be more tolerant, but
persuasive. "Everyone has their own
temperaments. The thing to do is adapt
yours to theirs," he says.
And Zimbabwe?
"We are all critical of
Zimbabwe but we did not live their history, their
struggle," he
says.
Mbeki is facing the heat over his approach to Zimbabwe, but this
should not
deter the mission to rescue Zimbabwe from its malaise, Chissano
says.
"If we believe in what we are doing, we must go ahead. President
Mbeki
belongs to a team, our team . . . People will be doubtful until there
are
more convincing signs of progress."
Next year, Mozambique will
elect a new president, as Chissano has indicated
he will not be available for
re-election. His last year in office is set to
be feverishly busy.
In
addition to the AU demands, he is determined to meet the
poverty-alleviation
targets of Mozambique's five-year development programme.
He has publicly
endorsed Armando Guebuza, Frelimo's presidential candidate,
as his successor.
But what will he do afterwards, having reached the
pinnacle of a political
career as a president of a country and leader of a
continent?
"I still
have one year to think. I will concentrate on the programme we
have. I'll
care about myself later."
Reuters
'Emerging Market' -- an Outdated Concept?
Sun July 20, 2003
07:41 PM ET
By Ed Stoddard
JOHANNESBURG (Reuters) - What do South Africa,
Lithuania, Mexico and China
have in common?
Not much, really. Yet all
four are lumped into an economic category known as
emerging markets -- one
that casts its net so wide that its relevance is
being
questioned.
"This concept of an emerging or a developing market is mainly
a political
tag or just a name for non-rich economies," said Dawie Roodt, an
economist
with PLJ Financial Services in South Africa.
"It's really
everybody except the rich economies so it's really not saying
anything, it's
far too big," he said.
The term's worth as a concept is not simply
academic.
It is used as a guide by fund managers and others who channel
tens of
billions of dollars into economies -- and out of them again,
sometimes at
the press of a button.
Nor has much thought been given to
the criteria that would signal an economy
had emerged from its stifling
cocoon and sprouted the wings of a developed
one.
Making it out of
this grouping would signal that a country was a less risky
place for
investment. This in turn could translate into increased capital
inflows and
reduced borrowing costs.
To date, no economy seems to have made the
grade, suggesting that perhaps it
is time to establish some goal posts --
though the pick of the crop are
often singled out.
"A lot of people
will look at very mature emerging markets like South Korea
or Hong Kong and
not include them in this group, they are almost in a
category of their own,"
said Razia Khan, an economist with Standard
Chartered in London.
WHAT
IS AN EMERGING MARKET?
So, what is an emerging market? At its broadest,
it refers to basically
every country outside of the developed world
encompassing Western Europe,
the United States and Canada, Japan, Australia
and New Zealand.
The Reuters glossary says it is: "A term used to
describe the financial
markets of developing countries. Definitions vary of
which countries are
emerging and which are not."
There are some common
countries on the major emerging markets indices,
including Brazil, Hungary
and Thailand.
The Economist newspaper has regular updates on indicators
from around two
dozen emerging market economies.
Countries with
unsophisticated, illiquid or virtually no financial markets
such as Cambodia
and Burundi are not found on these indices, but are still
considered by some
to be in the "emerging" group for want of an
alternative
classification.
"There are a lot of developing countries
that are strictly pre-emerging
markets rather than emerging markets," said
Khan.
One rough rule of thumb could be to look at countries whose
government debt
has been given a credit rating by the big rating
agencies.
But in Africa, that group includes Gambia, Lesotho, Egypt,
South Africa and
Botswana, countries with hugely different levels of
development.
The "market" in the term also seems, in many cases, to state
the obvious.
Fifteen years ago the very visible hand of the state was
firmly on the
tiller of eastern Europe's economies, but most today are
clearly
market-oriented, selling off state assets while maintaining low
budget
deficits.
Their size may mean they are still "emerging," but
few would doubt that they
were now "markets." Billions and billions of
dollars of foreign direct
investment have poured into the
region.
SOUTH AFRICAN EXCEPTION
Then there is the case of South
Africa.
South Africa's economy is in many ways a dual one, a legacy of
its recent
past under apartheid and white rule.
On the one hand, its
financial markets are as liquid and sophisticated as
many found in the
developed world.
Its top companies -- some of which have moved their main
listings to
London -- are global giants and include the likes of mining major
Anglo
American and SABMiller, the world's second largest brewer.
On
the other hand, many of its roughly 45 million people live in abject
poverty,
and income disparities are among the sharpest on the planet.
Unemployment is
close to 40 percent.
While there has been progress on many fronts,
millions still lack proper
sanitation and electricity.
In short, the
majority live a "Third World" existence, while a minority is
part of the
"First World" -- hence South Africa's emerging market tag.
But this means
it gets punished when there are scares or sell-offs in other
big emerging
markets, such as Russia or Brazil -- even if its own economic
policies are
sound and its financial markets are far more sophisticated.
Some far-off
investors have also lumped South Africa -- unfairly, most
analysts would say
-- with neighboring Zimbabwe, whose economy is suffering
its worst crisis
since independence from Britain in 1980.
"I think what we need to do is
get a bit more clinical on how we classify
certain economies," said
Roodt.
"One could be developing and that would be one that is actually
growing at a
certain rate. Another would be stagnant, an economy where not
much is
happening. Another could be regressive or 'undeveloping' like
Zimbabwe,"
said Roodt.
The Herald
Farmers ripped off
Herald Reporter
FARMERS wishing
to cash cheques are being shortchanged by unscrupulous rural
traders who
demand that they buy goods worth at least half the value of the
cheque in
order to get the cash.
A farmer with a cheque for $800 000 is forced to
buy goods worth $400 000 to
have the cheque cashed at most shops in the rural
areas.
With banks refusing to cash cheques exceeding $60 000, frustrated
farmers in
Masvingo, Mashonaland East, Mashonaland West and Mashonaland
Central
provinces have fallen prey to shop owners.
Desperate farmers
have to buy goods not initially planned for and have no
wide choice of goods
since they have to make do with what is available in
that particular
shop.
In worse situations, some shop owners have hiked the prices of
goods knowing
that the farmers have no option but to buy from them with the
cheques.
The Zimbabwe Farmers’ Union said it was worried that farmers had
become
gullible because they needed the money.
ZFU vice president Mr
Wilfanos Mashingaidze said the situation was tense.
"The banks have no
cash and our farmers are desperate for money so the shop
owners are taking
advantage of the set up.
"We now need to mobilise the farmers to hold on
to their cheques for a while
as we work out some mechanisms but again the
farmers need the money for
other purposes," he said.
In Guruve,
farmers interviewed said cashing cheques in shops was the only
option at the
moment and they have to comply with the requirements of the
shop
owners.
"I sold my cotton and got a cheque of $1,3 million but when I
went to cash
it at the bank, they said they had no cash.
"I then went
to a supermarket at Guruve centre and I was told to buy goods
worth at least
$700 000, and since I had no option, I complied,’’ said Mr
Tinotenda Chimombe
of Gota in Guruve.
"I had to buy some things I had not prioritised so
that I reach the required
amount.’’
In Masvingo 16 cotton farmers from
Pfuve Panganai found themselves stranded
in the town after banks failed to
cash their cheques on Tuesday.
"We cannot cash the cheques because the
supermarkets do not have the
fertiliser which we want to buy.
"If we
use half the amount to buy mere groceries when we need fertilisers
and seed
then what do we do next?’’ asked Mr Richmond Rushoka.
A survey by The
Herald has shown that the conditional cashing of cheques by
shop owners is
widespread in the country and unless the Government
intervenes farmers will
not realise the gains of their sweat.
The Herald
Tourism attaches to take up posts in SA, France
By Ruth
Butaumocho
Three tourism attaches will leave Harare to take up their posts in
South
Africa, France and China this week as the Government steps up efforts
to woo
tourists to Zimbabwe.
Ms Ndaipanei Mukwena, a former Midlands
State University tourism lecturer,
will be stationed in South Africa, while
Mr Taka Munyanyiwa, a former Zimsun
marketing manager, and Mr Godfrey
Pasipanodya, a former Rainbow Tourism
Group marketing manager, will be based
in China and France respectively.
Ms Mukwena is expected to depart for
Johannesburg tomorrow morning while the
other two will leave at the end of
the week.
The deployment of the attaches is expected to revive the
lucrative tourism
sector, which has not been performing well as a result of
the negative
publicity the country has been receiving from its
detractors.
Plans are afoot to open similar offices in Thailand, Japan
and India because
of interest shown in Zimbabwe by people in those
countries.
At the moment, Zimbabwe has one attache in Malaysia and some
offices run by
non-attaches in London, Frankfurt and New York. An
overwhelming response has
been received from the Malaysians.
Zimbabwe
Tourism Authority marketing director Mr Givemore Chidzidzi said
the
deployment of tourist attaches is a continuous process to complement
efforts
being made in the tourism industry to market the country to new
markets that
include Russia, China and Japan.
One of the major roles
of the attaches would be to counteract the negative
publicity the country has
been get- ting.