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The failure by the MDC-organised "final
push" to force President
Robert Mugabe to step down from power and the
disarray in opinions simmering
in the opposition camp has added weight to
calls for continued dialogue.
Analysts said after more than a year
of tag-of-war between President
Mugabe’s Zanu PF and the MDC, it was time for
the two parties to stop
playing games and put the plight of the people before
their own individual
interests.
"The way forward lies in
unconditional dialogue between Zanu PF and
MDC," said David Chimhini,
director of the Zimbabwe Civic Education Trust.
The trust is a
civic body involved in building civic awareness in
Zimbabwe.
"There should be genuine political desire from both parties to find
a
solution to this problem in order for this dialogue to work, but there is
no
seriousness from both the Zanu PF and MDC in trying to solve this crisis
at
all," Chimhini said.
Since Mugabe’s controversial re-election
in March last year, tension
has been building up between his Zanu PF and
Morgan Tsvangirai’s MDC, which
is challenging his re-election in
court.
Tension peaked this month when Tsvangirai unsuccessfully
called for
nation-wide mass protest to force Mugabe to hand over
power.
The protest, whose outcome is still widely debated, earned
Tsvangirai
fresh treason charges.
Tsvangirai and two other
senior MDC members are standing trial on
allegations of plotting to
assassinate President Mugabe.
Outside the courts, President Mugabe
and Tsvangirai, have cast
concrete walls between them that have made it
difficult for Presidents
Olusegun Obasanjo of Nigeria, Thabo Mbeki of South
Africa and Bakili Muluzi
of Malawi to find answers to the worsening political
crisis.
Mugabe has set conditions that he would engage the
opposition in
dialogue only if they recognise him as the legitimate leader of
Zimbabwe.
He is also prepared to come to the negotiating table
after the
opposition has withdrawn a pending court petition to overturn
his
re-election in last year’s disputed presidential ballot.
Banking on its strength in organising crippling mass protests, the
opposition
has in response also taken its own intransigent position, putting
conditions
under which it would withdraw the court action before coming to
the
negotiating table.
MDC secretary-general, Welshman Ncube was quoted
this week saying his
party was ready to resume unconditional dialogue to
resolve the issue of
legitimacy.
Ncube said: "What the MDC seeks
is an unconditional dialogue to
address the issue of legitimacy, which is
subject to negotiations."
Heneri Dzinotyiwei, a University of
Zimbabwe lecturer and political
analyst said there were exaggerated
differences between the two parties.
The differences seem to boil
down to mere personality clashes.
Dzinotyiwei said politicians on
both sides of the political divide
tend to be obsessed more with opposing
each other just for the sake of
opposing each other, even where there is no
need for such opposition.
"Now the opposition should take a less
militant position because it is
not the best for them," Dzinotyiwei
said.
He however, said ordinary Zimbabweans were not much worried
about who
ruled them, but about who is doing more for their
welfare.
"I think there is arrogance on the part of Zanu-PF in its
approach to
the whole issue that is why Mugabe is insisting that MDC should
recognise
him first, and it should withdraw its court petition before he can
talk to
them. I think instead of using brains, Zanu PF is using its muscles,
and
that is where the problem is," he said.
Analysts said in the
event that all conditions set by both parties are
removed, it would be
unrealistic for any of the parties to start
negotiations with the idea of
replacing the current government because the
talks would not go
far.
Instead, the two sides should try as much as they can to
make
concessions in order meet midway from where the would solve
their
differences.
Chimhini, however, said an unavoidable
pre-condition should be the
release of Tsvangirai from prison. Keeping him
behind bars, he said, would
portray Zanu PF as negotiating in bad
faith.
If talks, which have repeatedly failed before, proceed now,
Zanu PF is
more like to demand an arrangement in which the MDC would be
underdogs,
especially now that the opposition is in a checkmate after the
failed mass
action, which for years has been its strongest tramp
card.
"This will not help the dialogue very much because in the
end, of the
process, no body should be swallowed by the other," Chimhini
said.
FinGaz
Consortium swoops on Interfresh
Dumisani Ndlela
News Editor
6/19/03 2:26:44 AM (GMT +2)
A consortium led
by prominent banker, Nigel Chanakira, has taken over
control of the foreign
currency-rich Interfresh Limited in a major swoop on
the horticultural
concern that has posted a spirited performance despite a
struggling
economy.
Sources said the entry of Chanakira and his team into
Interfresh had
turned boardroom tables at the group, with Lysias Sibanda,
part of the
consortium, taking over the helm as chairman of the Interfresh
board of
directors.
Sources said Chanakira and his team had gone
into Interfresh under
cover of Kingdom Nominees Private Limited, and through
another investment
vehicle, Garmony Investments Private Limited.
Members of the Garmony Investments are Lysias Sibanda, the chief
executive
officer of Kingdom Financial Holdings Limited, where Chanakira is
himself the
executive deputy chairman responsible for regional expansion,
Solomon
Mugavazi and Frank Kufa. Kufa is a senior official with Kingdom
while
Mugavazi is now managing the consortiums investments.
Kingdom
Nominees now own 23.24 percent of Interfresh, representing
over 115 million
issued shares. It is the major shareholder followed by
institutional
investment giant, Old Mutual Life Assurance Company Zimbabwe
Limited holding
an 18.22 percent stake representing just over 90 million
shares.
Garmony Investments, which made its debut into Interfresh recently,
has
managed to take-up about six million shares, or 1.19 percent of the
issued
shares.
The shares were recently bought at a premium on the
Zimbabwe Stock
Exchange (ZSE), market sources said.
The share
price for Interfresh stood at $37 per share on Tuesday.
The entry
by Chanakira’s consortium into Interfresh is understood to
be part of the
group’s aggressive hunt for promising stocks on the Zimbabwe
Stock Exchange
(ZSE).
Chanakira could not comment on the issue when contacted by
The
Financial Gazette yesterday, referring all questions on the issue
to
Sibanda.
Sibanda denied that they had become the majority
shareholders in
Interfresh, saying the group’s ownership was "widely
held"
"We’re just ordinary shareholders," Sibanda said, adding:
"We’re in
through our own vehicles."
Interfresh, an industrial
horticultural group, was founded in 1953 and
listed on the ZSE in 1997. It is
involved in the processing, production and
marketing of horticultural produce
and food products both locally and
offshore.
Before Kingdom
Nominees’s entry into Interfresh, Old Mutual was the
major shareholder with a
21.94 percent stake.
The company has eight subsidiaries, which are
operating efficiently
and effectively as strategic business
units.
They are Mazoe Flowers, Interspan, Mazoe Citrus Estates,
Marlon
Trading, Wholesale Fruiters, Interfreight, Intercrop and
Interfoods
Manufacturing
FinGaz
Black tycoons take ZSE by storm
Nelson Banya
Staff Reporter
6/19/03 2:42:21 AM (GMT +2)
THE emergence
of indigenous consortia leading takeovers of firms in
vital sectors of the
economy has taken the high-performing Zimbabwe Stock
Exchange (ZSE) by
storm.
Financial behemoth Old Mutual Plc’s stranglehold on the
local economy
through ownership of significant stakes in listed companies has
been
progressively whittled down by the emergence of a crop of
aggressive
indigenous acquisition barons in the past two years.
Gone are the days of black-owned businesses being synonymous with
backyard
enterprises and general dealer shops.
Away from the controversy
that has dogged the country’s agrarian
reform, a silent revolution has been
taking place in the country’s corporate
corridors.
Apart from
the vibrant financial services sector, where locals have
long asserted their
dominance, key industrial firms have now become targets
for indigenous
investors with an eye for quality scrip.
The past two years alone
have seen a number of significant takeovers
of TSL Limited, Zimsun, Tedco,
Bindura, and Lobels, while Circle Cement
Limited, National Foods, Interfresh
and Innscor Africa now have significant
indigenous shareholding.
Young business executive Simba Mangwende now holds fort at
furniture
manufacturer and clothing retailer Tedco, having acquired a 35
percent stake
as the Dorward family eased out of their empire.
Takepart Investments, led by Amalgamated Motor Company chief
and
parliamentarian Ray Kaukonde has been in the news recently, having
bought
into Natfoods and Innscor Africa.
Closefin Investments,
which is also linked to Kaukonde, beat the
Cotton Company to acquire 31
percent of TSL and now shares the biggest chunk
with erstwhile controlling
shareholder, Corner Properties, in one of the
most significant transactions
in recent times if the industrial conglomerate
’s balance sheet size and
range of assets is anything to go by.
TSL owns one of the country’s
biggest tobacco auctioneers, Tobacco
Sales Floor, Chemco Holdings, Hunyani
and is associated with car rental
company Avis and the Tetrad
Group.
Acquisition baron Oliver Chidawu, who sits on several boards
of
ZSE-listed entities who also lords it over agricultural
implements
manufacturer Zimplow, led Mwana Africa in acquiring a 52.7 percent
stake in
mining giant Bindura as Anglo American Corporation cut fat to focus
on
platinum.
Herbert Nkala, Livingstone Gwata and Anthony
Mandiwanza, with proven
business acumen, teamed up under investment vehicle
Ceuvost to land
bread-making giant Lobel’s from the Lobel
family.
Controversial indigenisation proponent and legislator
Phillip
Chiyangwa recently acquired Old Mutual’s 16 percent stake in Circle
Cement
to become the second largest shareholder after the Associated
International
Cement Company.
The doyen of the acquisitive
culture, Mutumwa Mawere, who presides
over an empire, does not seem to have
sated his appetite for sitting ducks
following his watershed takeover of the
Associated African Mines of Zimbabwe
in the mid-1990s.
Since
then, his African Resources Limited (ARL) or its associate,
Ukubambana
Kubatana Investments (UKI), have manoeuvred, and where necessary,
muscled
their way into many a firm.
Turnall Fibre Cement, General Beltings,
Steelnet, Zimre Holdings group
and its associates, Nicoz Diamond and the
soon-to-be listed Fidelity Life
Assurance Company are some of the firms with
an ARL or UKI connection.
Openings still exist for indigenous
participation in the mining
sector, which is slowly emerging from a
three-year slump, thanks to platinum
and firming bullion prices on the
international metals market.
South African mogul Mzi Khumalo has
recently taken Mthuli Ncube, John
Mkushi and Albert Nduna on board at
Metallon, which took over the
Independent Gold Mines’
operations.
Up to 40 locals are believed to be jostling for a 15
percent stake
worth about US$40 million in Australian-listed Zimbabwe
Platinum Mines
(Zimplats), which was originally earmarked for the National
Investment
Trust, a government initiated empowerment trust that, however,
failed to
raise the required funds.
Analysts have lauded the
increased participation of indigenous
businesspeople in the domestic economy,
saying it was a shift towards
ensuring a stable economy driven by people with
a long-term commitment to
the country.
"It is a commendable
development when one considers our short history
of nationhood.
"There are, however, worrying signs because a snap survey of the
acquisitions
and takeovers will reveal the same few faces — posing the
question of whether
what we have is genuine indigenisation or the movement
of the economy towards
one mammoth cartel," one analyst said.
Indeed, there have been
accusations the emergent class of
entrepreneurs is either fronting for
powerful politicians or foreign
interests.
Economic commentator
Jonathan Kadzura said the reason why the same
names seem to come up each time
indigenous businesspeople acquire something
was because of the thin spread of
capital.
"Of course, questions will have to be asked if the same
people are
seen to be acquiring capital while others are not. It would be
nicer to see
a broader participation in the national economy.
"It would be very unfortunate for politicians to use fronts because
there is
no law in Zimbabwe barring them from running businesses unless they
are using
their influence to access what other people cannot have. The same
applies to
whites who do not need to use fronts as there is no law
precluding them from
owning companies here," Kadzura said.
FinGaz
Comment
Hold your horses
6/19/03
1:53:34 AM (GMT +2)
AFTER years of foot-dragging, gears seem to be
finally engaging in the
government’s hitherto stop-go privatisation drive.
Indications are that the
country is on the verge of a deal-making frenzy.
Unfortunately the timing
seems odd.
Only last week we reported
in our lead story that the government is
mulling plans for the sell-off of 50
percent of the Hwange and Kariba South
power stations. There are already
expressions of interest from East Asia and
the European Union.
It is also an open city secret that the government has been in
exclusive
talks and is in fact in the cusp of agreeing the acquisition of
assets
belonging to the National Oil Company of Zimbabwe (NOCZIM) by the
Libyans
under a fuel deal whose terms have never been made public. In fact,
the
NOCZIM assets could have been disposed of a long time ago were it not
for the
last minute complications and technical glitches resulting from the
two
parties’ haggling over the true value of the company’s assets. Many
more
state-owned companies are in line for privatisation.
We
hope that a day will not come when we will rue the sell-off of
these critical
assets because frankly speaking, we feel the timing of this
exercise is as
tricky as it gets.
Zimbabwe is presently in a tough and desperate
situation. Friends are
few and far between. Wherever we have gone of late,
with our begging bowl in
hand, all we have gained is nothing but good words
minus action. Zimbabwe is
as vulnerable as an old lady who falls in love on
the rebound, and so it
could be taken advantage of.
Some of the
investors could adopt the take-it-or-leave-it stance.
Zimbabwe is compromised
by the fact that because of its vulnerability, it is
an anxious seller —
which is not the easiest bargaining position to start
from. With what has
happened elsewhere, where they were forced to sell the
gold mine and retain
the coal mine, we have to be careful.
It does not seem like a great
time for Zimbabwe to court strategic
technical partners for local companies
promiscuously. The point is, the
government should not sell these assets in
haste. Yet we are doing precisely
that. We are selling the NOCZIM assets to
solve the crippling fuel problems
and we are selling ZESA assets partly
because of the electricity import
problems!
Couldn’t we have
done this before these problems were upon us and when
the economy was firing
on all cylinders? The authorities have to consider,
and very carefully, the
before and after of such an exercise. Isn’t there a
risk that we might
over-privatise? What is it that we aim to achieve with
these disposals? What
will be the consequences of this exercise? Are we just
seeking an end to
state ownership? Is it plausible for us to dispose of
these assets just to
raise revenue and seek some fiscal relief? Does
bringing the foreign
technical partners on board before privatisation ensure
the success of the
exercise? Or should we involve the foreign investor on
the back of a strong
local support base? Can we get realistic prices if we
sell these entities
before restoring operational efficiencies?
No doubt foreign
ownership is important for the technological know-how
that it brings with it.
In any case some of these state companies are known
to be surviving on a
life-support system from the fiscus and need to be rid
of their huge
mountains of debts. And admittedly Zimbabwe is not an island.
It is very much
part of this global village where transnational investment
is commonplace. Be
that as it may, we have to weigh the effects of foreign
ownership on local
economic pride and promise if these foreign predators
were to snap up these
companies?
We do not have a problem with a well-thought-out and
sustainable
privatisation exercise that seeks to add value to the economy.
Transparency
is of the essence here and we should avoid selling the assets in
a closed
envelope auction. The bottomline is, however, safeguarding
national
interests.
FinGaz
Letters
Wake up Ndoro!
6/19/03
2:11:03 AM (GMT +2)
EDITOR — I make reference to the ‘Inside
Politics’ column of June 5-12
2003 by Taungana Ndoro entitled ‘MDC Blundered,
Period!’.
Taungana, you seem to have contradicted yourself
regarding the
legitimacy of the Zimbabwean judicial system.
Let
me explain: There was never any doubt that the ruling party would
win a
judgement barring any form of action, peaceful or otherwise.
It is
the duty of civil society and the opposition to ignore rulings
that have no
basis in law.
The constitution allows for peaceful demonstrations
and stayaways as a
legitimate form of exercising one’s right to freedom of
speech and
expression.
In no way did the Movement for Democratic
Change(MDC) flout the rule
of law by continuing with peaceful
action.
While your views should be respected as you too have the
right to
peddle your point of view, you must also be prepared to be
viscously
criticised for your lack of basic knowledge on what’s in the
constitution.
I also imagine that if the MDC had called off the
planned
demonstrations you would be shouting: "Cowards!."
The
fact that the president of the MDC is languishing in jail is
testimony to
last week’s success.
To believe that people will not support
further action in the form of
stayaways because they won’t be paid to do so
is an insult to the millions
of people suffering under this
regime.
You seem to be out of touch on your lofty scribe’s
pinnacle. Wake up
my friend because there is no way the opposition will be
defeated in their
quest for true democracy in Zimbabwe. Period!
James,
james@valleycanners.co.zw
FinGaz
Letters
ZANU PF cancer destroying
society
6/19/03 2:12:40 AM (GMT +2)
Editor — I
think that the cancer of Zanu-PF needs to be extracted from
Zimbabwean
society. As painfully as it came into power, the malignant party
infects
everything it touches.
I am shocked that most political
commentators epitomise the fight
against the ruling government/party to be
the removal of Robert Mugabe,
which I think is only the tip of the iceberg,
to crush the head of this
leviathan will only allow a few more heads to grow
and replace it, probably
more hungry and ruthless than Robert
Mugabe.
This is because Zanu PF is not a man but a system that has
penetrated
the core of Zimbabwe’s society and removing Mugabe will only be
the
beginning of the process which needs to be disassembled
swiftly.
We need to ‘de-Zanufy’ the country cause the symptoms of
this deadly
disease are causing convulsions throughout the
country.
No more corruption, No more violence.
Bangulanyi Ntaisi,
Canada.
FinGaz
And now to the Notebook
6/19/03 2:09:43 AM
(GMT +2)
Political chiefs
As someone with a bit of
royal blood in his veins, CZ would be tempted
to sing praises for Minister
Patrick Chinamasa for his quixotic Bill giving
more powers to traditional
chiefs for them to handle some banal cases in
their areas.
But
on second thoughts, CZ will have serious problems with the move
knowing that
most of our chiefs are more of political chiefs than
traditional
chiefs.
At least judging by the half-a-dozen or so that we see on
our one and
only ZTV dozing the afternoon off in our Parliament every time or
nodding
their heads off at party rallies.
In this circumstance,
it’s a humble view that this move though well
intended, could turn out to be
a dangerous one. If members of a different
party are brought before these
types of political chiefs, definitely, there
will be a travesty of justice
somehow. Knowing some of these chiefs, who are
too pleased to be on a ZANU PF
government payroll, they will definitely do
everything they can to safeguard
the interest of ZANU PF first before they
start administering any
justice.
Others who are rightfully supposed to be chiefs in their
area, can not
be because the ZANU PF district administrator in the area,
knowing their
political affiliation, or rather lack of it, is reluctant to
recommend their
enthronement. So another ZANU PF supporter with the same
totem as the
would-be chiefs will be appointed a chief in order to serve the
interests of
the party under the cover of a traditional chief.
If Local Government Minister Ignatius Chombo can not tolerate an
elected
opposition mayor in Harare, what would make him tolerate a chief who
would
refuse to chant "pamberi neZANU PF"?
And some of the so-called
traditional chiefs are mere village yokels
bereft of any wisdom at all and so
confused that they cannot tell their left
from their right. And these would
come handy for manipulation by our own
wily ZANU PF.
The way
ZANU PF is using chiefs, is the same way Smith used them.
Anyway, ZANU PF and
the Rhodesian Front are only different in that, the
present revolutionary
party has perfected the tactics used by Ian Smith and
his ancestors. Any
other difference is cosmetic.
Besides, Zimbabweans are too
civilised to be taking giant steps back
to the dreary days of the notorious
chiefs like the legendary Chief Chirau.
Let’s wait and see.
Traffic cops
When a traffic officer charges a motorist with one or
two offences at
a road block, but has no book to book them for the offences,
what does he
expect them to do?
Just give him the spot fine and
go without any receipt or wait for him
until he is going to the station so
that they can follow him to get their
receipt?
This is the case
with some of our ZRP officers. They mount roadblocks
and tell motorists that
they don’t have the books to book them for whatever
offices they decide to
level against them. We don’t know what any
law-abiding motorist should do in
this case. We also don’t know whether the
books will genuinely not be there
or they would have been hidden.
Maybe its this type of law
enforcement that puts Augustine Chihuri
streets ahead of his African
counterparts such that they always nominate him
for this or that
award.
Youth programmes
It’s a wonder what sort of
training the 57 ZANU PF youths that were
detained in Nairobi by Kenyan
Aviation authorities last week were going to
get in Libya. Does this mean
Nelson Chamisa can mobilise members of the
youth wing of the MDC for training
in other friendly countries without any
problems? That would be the first
good for Zimbabweans this year.
If this Libyan trip was only part
of the routine exchange programmes
between youths from Africa’s two greatest
revolutionary parties, why then
would the pilots not only fly Nicodemusly,
but also go to the extent of
trying to conceal their passengers until a
physical search of the plane took
place. ZANU ndeyeropa!
Nguva
Yakwana
CZ and his family wanted to attend Nguva Yakwana Three, a
gospel show
billed to take place in Harare and Bulawayo next month, but will
not be able
to do so because of financial constraints. He cannot afford to
raise close
to $15 000 for his family to join others in praising the Almighty
God for
all the wonderful things he has done for him and his
family.
So he will miss this show where God’s selfless servants
will be
preaching His word though music and dance for the simple reason that
he is
poor. Blessed are the poor in spirit for theirs is the Kingdom of
Heaven.
But if the same Lord’s selfless servants discriminate against the
poor, how
then will they see this Kingdom?
Like consulting
doctors and lawyers, gospel musicians are now also
charging market rates for
their services so that they can join others in
affluent suburbs like
Borrowdale, Mount Pleasant, Ruwa, you name them. CZ is
yet to find a free
gospel music concept here is Zimbabwe where there are so
many musicians who
say they went into gospel music for the simple reason
that they want to
propagate His word.
CZ also hopes it is an addled threat that God
shall severely punish
those who use his name in vain.
cznotebook@yahoo.co.uk
FinGaz
Towards a bloody 2005 election?
Clemence
Manyukwe
6/19/03 1:50:58 AM (GMT +2)
"You may not be
interested in war, but war is interested in you" —
Leon Trotsky
WITH
the 2005 parliamentary elections around the corner, the
deplorable lack of
common ground between the country’s two major political
parties casts a long
shadow on the probability of a peaceful poll, thereby
threatening a nasty
replay of the bloody events which led to the 2000
elections.
This is especially so considering the ever-increasing violence which
has
accompanied each voting period between the turn of the century and
now.
Whether it was Bikita west, Insiza and recently Kuwadzana;
people who
were supposed to regard each other as mere opponents chose to
become arch
enemies. By-election after by-election, this has been allowed to
go on
unchecked, providing a probability that they may just be rehearsals of
what
awaits us in 2005.
But if things are allowed to happen like
this we will all be to blame.
There may never be any other prize for what we
have done and what we have
not done for our country. It will be the total
cost of our negligence.
We may not want war, we may be regarded as
a peace-loving people, but
for as long as the current mayhem goes on
unchecked, we may be as well reach
a point where war itself may be interested
in us.
With failure to resolve our differences peacefully, with the
country
slowly but surely becoming a breeding ground for vigilante groups
such as
Chipangano, green bombers and other faceless, nameless ones with a
belief
that a squeaking wheel always gets greased, but not replaced; their
growing
powerfulness has the potential of bringing unremitting terror or
worse on
our doorsteps come 2005.
But this can be avoided. It
only calls for everyone to voice their
concerns or displeasure and that
includes those "safely" in ZANU PF.
Thinking that one is safe when others are
in excruciating pain will only
lead to our collective peril.
Marin Neimoller, a German Lutheran pastor who was arrested by the
Gestapo and
sent to a concentration camp wrote: "In Germany the Nazis first
came for the
communists, and I did not speak up because I was not a
communist. Then they
came for the Jews, and I did not speak up because I was
not a Jew. Then they
came for the trade unionists, and I did not speak up
because I was not a
trade unionist. Then they came for the Catholics, and I
did not speak up for
the Catholics because I was a Protestant. Then they
came for me, and by that
time there was no one to speak up for me."
Similarly, when white
civilians were being killed during the
liberation struggle, some of us did
not speak up because we are not whites.
When pandemonium broke out in
Matabeleland, threatening to wipe out an
entire tribe, some of us did not
speak up because we are not Ndebele. When
the farms were being turned into
sites of utter desolation, some of us did
not speak up because we did not own
a farm. Right now, there are random
beatings in the high-density suburbs and
some of us are not speaking out
because they do not stay in the overcrowded
places.
What monumental folly? Like the Bourbons, we learnt nothing
and forgot
nothing.
No-one shall ever be safe inside Zimbabwe
when his fellow man is
subjected to inhuman and degrading treatment. No-one
shall walk outside
Zimbabwe with his head held high when the world is
complaining about what is
happening in this country.
Everyone
will feel the pinch when the rights of others are held in
contempt in this
country. All this is bound, in the long run, to have one
result: others will
be forced to fight until everyone is treated equally.
The government must
know better.
Agitations for freedom have no deadline. They are
stubborn and
unrelenting. They cannot be suppressed. They cannot be swept
under the
carpet. They cannot be sent to jail. They can only be attended to
in full.
It therefore follows that the time has come for the
emergence of
citizens who are prepared to face the music with their suffering
countrymen,
citizens who are brave enough to tell Mugabe that if he decides
to divide
Zimbabwe into two warring parties, they will choose to be with the
people.
Clemence Manyukwe is a student of journalism at
CCOSA in Harare
FinGaz
Inflation continues to feed ZSE bubble
D
NDLELA
6/19/03 1:39:21 AM (GMT +2)
IT used to be said,
half jokingly, that inflation, like sex, is
characterised by a high rate of
interest.
While the scenario in Zimbabwe confounds the joke, mainly
because of
an official clampdown on interest rates, it has held true on the
country’s
bourse where a high rate of inflation has spurred huge interest on
a stock
market that has taken pessimists on the same ride with
optimists.
When pessimists thought the stock market’s phenomenal
rise was a
bubble on the verge of bursting, nobody doubted this to be wise
counsel.
But the stock market today remains buoyant as inflation
persistently
feeds the bubble with more air. And nobody doubts that its spell
of good
fortunes is nowhere near crushing.
It got tighter last
week on the Zimbabwe Stock Exchange (ZSE), which
was last year voted the
second best emerging market performer after the
sophisticated Johannesburg
Stock Exchange, when bulls ravaged counters to
create a massive rally that
drove the industrial index to fresh territory.
After opening the
week at 203 959.37 points, the industrial index
cruised to an all-time high
of 215 591.21 points last Friday.
Nothing more could be that
astounding. The market had already caught
up with news that year-on-year
inflation for May was taking its maddening
ride to yet another fresh zone: it
touched an all time high of 300.1
percent, up from 269.2 percent for
April.
And the bulls haven’t run out of steam yet.
The
industrial index touched yet another record high on Monday, driven
mainly by
Econet which in substantial volumes put up 400 to 3 000, General
Beltings up
900 to 6 400, Radar 1 000 firmer to 16 000 and ABCH and Colcom
adding 30 000
each to close the day at 46 500 and 14 000 respectively. It
closed the day at
219 985.01 points.
It broke new territory again on Tuesday to reach
222 809.18 points.
ABCH again came in with major gains, rising 3
500 to 50 000. BAT
gained 60 000 to 270 000, CHEMCO firmed by 10 000 to sit
at 160 000 and
Gulliver put on 2 000 to 64 000.
Ariston also
advanced 700 to 16 200 and Meikles went up 5 000 to 185
000.
Econet, however, lost the previous day’s gains by 600 to close Tuesday
’s
trading session at 2 400.
The mining index was also unbeaten by the
"inflation" weather. It
advanced 6.04 percent to 21 518.84 points last Friday
after opening the week
at 20 292.34. It surged further to 24 310.76 points on
Tuesday after being
propelled by gains in Ashanti ZDR, Bindura and Falcon
Gold in substantial
volumes up 1 000, 1 500 and 1 550 to 12 000, 23 000 and 5
000 respectively.
An analysis by Kingdom Stockbrokers’ Itai Musindo
points to a
continued bull run on the ZSE.
"The equities market
looks poised for an upward trend as we near the
end of the season quarter,
which heralds June interims and finals," says
Musindo.
Only a
few companies are left to report on the current season, and
that has driven
many investors into position-taking for the next reporting
season, says
Musindo.
Already, counters like Cottco are enjoying the delight of
a good
performance.
"Rather than admiring prices now, buying
into companies with a forex
earning base, a substantial effective demand for
goods they produce and
ahead of target first trading quarter updates should
pay off," Musindo
writes in Kingdom’s weekly report to professional equity
investors.
FinGaz
Tsvangirai down but not out
Taungana
Ndoro
6/19/03 1:46:24 AM (GMT +2)
After visiting her
embattled husband in remand prison recently, Susan
Tsvangirai commented: "He
(Morgan) says there is no surrender and that he is
paying the price for the
struggle. He says there is no gain without pain and
that he is ready to
sacrifice his life for the cause of Zimbabweans."
On April 20 1964,
Africa’s greatest statesman Nelson Mandela concluded
his "I am prepared to
die" statement from the dock at the opening of the
defence case in the
Rivonia Trial at Pretoria’s Supreme Court by saying:
"During my lifetime … I
have cherished the ideal of a democratic and free
society in which all
persons live together in harmony and with equal
opportunities. It is an ideal
which I hope to live for and to achieve. But
if needs be, it is an ideal for
which I am prepared to die."
Robert Mugabe is making Morgan
Tsvangirai make history.
Imprisoning the latter does not signify
the end of the Movement for
Democratic Change (MDC) neither does it indicate
the beginning of its end
but perhaps the end of the beginning of a long and
bitter struggle for
political change.
Prolonging Tsvangirai’s
detention simply amounts to giving the
opposition leader some serene time to
map out crystal clear strategies that
will eventually topple the totalitarian
government of Mugabe.
When Tsvangirai leaves prison, Mugabe and his
henchmen must not
daydream that they have disheartened and demoralised him
enough not to call
the shots again. In fact they should expect a rejuvenated,
more determined,
more dedicated and more devoted opposition leader bent on
succeeding in the
political weather, come rain, hail or
sunshine.
According to his better half, the opposition leader has
vowed to fight
to the death and so Mugabe must be prepared to be punched back
since he
insists he "can still punch."
Unless — God forbid — the
ruling party employs the deplorable antics
of the apartheid regime that dared
to butcher Steve Biko in prison — they
are yet to endure the full wrath of
Tsvangirai and his party.
Put simply Tsvangirai is down but not
out.
The MDC have now learned that they blundered. They now know
that you
do not announce a date for mass action if you wish it to be
successful. They
now know that you do not tell someone that you are coming to
his house to
embarrass him for he will protect his territory to the death by
all that’s
wicked and uncouth in humankind.
Indeed, they now
know that if they are going to break the law, it’s
detrimental to preach
about it. If it’s for a worthy cause, just break it
and the people will rally
behind you.
It is refreshing to note that the MDC is now conscious
that if it
blunders it will be slaughtered for it is not a sacred cow. The
grave error
that Zimbabweans made before and after independence was that of
making it a
taboo to lash out at ZANU PF.
We let the ruling
party design our destiny willy-nilly without even
mumbling objections as it
plunged us deeper and deeper into the abyss of
economic and political
malaise.
We blundered when we failed to take ZANU PF by the horns
then (as some
maintain and erroneously still do, that it is a sacred cow). We
will
however, not blunder with the MDC now.
The MDC’s
procrastination over the protests against its leader’s
prolonged detention is
prudent. If the protests are ever going to pull
through then they have to be
discreet but at the same time inflict the
desired result — whatever that
could be.
As Mugabe gloats over his illusory victory over
Tsvangirai he must be
mindful of the fact that it would be wise to leave the
MDC no choice but to
play his violent game.
He is closing all
avenues for a peaceful and negotiated political
settlement and that could be
tantamount to putting a cat in a corner.
The MDC hoped to seek
political emancipation without bloodshed and
civil clash. By engaging in the
"final push" and other forms of discontent
they hoped that that would bring
the government and its supporters to their
senses before it is too late, so
that both the government and its policies
can be changed before matters reach
the desperate state of civil war.
As it is the MDC is an
unofficially banned party and it soon could be
officially outlawed. That
could send it underground, then the real struggle
will have
begun.
I am again reminded of Nelson Mandela who like Morgan
Tsvangirai was
also tried for treason.
During the whole of the
fifties, Mandela was the victim of various
forms of repression. He was
banned, arrested and imprisoned. For much of the
latter half of the decade,
he was one of the accused in the mammoth Treason
Trial, at great cost to his
legal practice and his political work. After the
Sharpeville Massacre in
1960, the ANC was outlawed, and Mandela, still on
trial, was
detained.
His call for a general strike in March 1961 was met with
the
government’s largest military mobilisation since World War II, and the
SA
Republic was born in an atmosphere of fear and apprehension.
There was a deep-seated feeling in June 1961 when Mandela decided to
press
for a change (exactly 42 years later Tsvangirai made a call for the
"final
push" in Zimbabwe).
It was a feeling more like the one the MDC
could be experiencing at
the moment. It was a daring feeling, a feeling that
only the bravest can
experience.
As Mandela put it on April 20
1964 during his trial, the following was
that captivating feeling across the
Limpopo two score years ago:
"It was only when all else had failed,
when all channels of peaceful
protest had been barred to us, that the
decision was made to embark on
violent forms of political struggle, and to
form Umkhonto we Sizwe (Spear of
the Nation).
"We did so not
because we desired such a course, but solely because
the government had left
us with no other choice. In the Manifesto of
Umkhonto published on December
16 1961 we said:
"The time comes in the life of any nation when
there remain only two
choices — submit or fight. That time has now come to
South Africa. We shall
not submit and we have no choice but to hit back by
all means in our power
in defence of our people, our future, and our
freedom".
I cannot say for certain whether the time and the feeling
has loomed
in the MDC, neither can I gauge the wisdom and prudence of
Mugabe’s
combative disposition as the nation burns, but I know for certain
that there
comes a time when the opposition has to make one single, bold and
conclusive
decision.
FinGaz
Let’s wake up to economic realities
James
Jowa
6/19/03 1:55:22 AM (GMT +2)
IT was so sad to see
industry and commerce in beleaguered Zimbabwe at
a standstill for a whole
week during the national protest called by the
Movement for Democratic Change
(MDC) from June 2-6 2003.
Activities in Harare and Bulawayo, the
major urban centres and
commercial hubs of Zimbabwe, ground to a halt and
demonstrators and security
forces — the latter armed to the teeth — battled
it out in the streets.
Most businesses remained shut despite media
campaigns and threats from
the government warning the public and business
against participating in the
MDC-organised massive show of
disobedience.
The massive response to the protest call by the
generality of the
public, particularly urbanites, and industry and commerce,
portrays the
general discontent among the majority of the population across
the economic
and political divide regarding the extent to which the economy
has been
mismanaged.
It was purely a response to the urgent need
for the government to
address head-on the bread and butter concerns of the
populace.
Lest we forget, more than 80 percent of the population
now lives in
abject poverty. Anything that is meant to make ordinary people
and business
survive is in short supply — foreign currency, jobs, food,
fuel,
electricity, bank notes and skills.
Given the extent of
this decline and the ongoing political crackdown,
the country is no doubt
seriously running short of common sense as well.
There is no clue that the
authorities know what needs to be done to restore
economic viability despite
all the economic advice that has been at their
disposal.
In
economic terms, the country lost a great deal due to the work
stoppages. The
production of already scarce commodities was dramatically
cut, thus
exacerbating the shortages.
The industries that produce for export
failed to meet some of their
external obligations and now risk losing their
already shrinking
international markets, thus further threatening the
country’s capacity to
generate foreign exchange. The country’s reputation as
an investment
destination received an additional knock in the process and any
prospects of
attracting desperately needed foreign direct investment in the
near-term
have been severely dented.
All these developments
narrow down to the fact that the economy will
further deteriorate if the
authorities fail to stand up to the economic and
political realities of this
desperate situation.
The reality is that the economy is rapidly
shrinking in real terms and
has been doing so for the past three years. It is
also a reality that the
country faces international isolation — the
multilateral lending
institutions, bilateral lending institutions, previously
friendly
governments have but all turned their backs on us.
The
foreign currency shortages are partly a result of the country’s
inability to
attract foreign currency, in whatever form, from
these
institutions.
Another reality is that we have failed to
undertake meaningful
economic reform. The country has had a flirtation with
economic reform
programmes, the most recent being the Economic Structural
Adjustment
Programme (ESAP) in (1991-95), ZIMPREST (1998-2000), Millennium
Economic
Recovery Programme (MERP) in 2000 and the recently mooted New
Economic
Revival Programme (NERP) 2003.
ESAP did produce some
positive results for the economy, particularly
in relation to trade
liberalisation and market deregulation, but was
prematurely abandoned. ESAP
was followed by a period of policy paralysis
between 1996-97 before the
belated launch of ZIMPREST (1998-2000).
The Millennium Economic
Recovery Programme failed to make any
significant mark on the economy. In
fact, MERP marked the economic turning
point, the time during which the
economic downfall begun.
With the government insisting on pegging
the dollar against major
trading partner currencies, the local currency
became overvalued and
dramatically reduced the country’s export
competitiveness.
Today the authorities are busy peddling the NERP,
which already seems
not to be taking us anywhere. Since its launch with a lot
of fanfare at the
beginning of the year, the programme has failed to meet
most of its targets.
Moreover, the withdrawal of two of the social partners —
labour and
business — has eroded the initial national enthusiasm with the
programme.
One of the fundamental weaknesses with all the economic
reform
programmes is that they have been accompanied by serious
fiscal
indiscipline. The government has always lived beyond its means and
has
incurred huge budget deficits that have seriously stabilised
the
macroeconomic environment. For instance, the current loose fiscal
and
monetary policies have pushed up money supply growth and inflation,
which
reached new highs of 300.1 percent in May 2003.
Government
spending will not subside this year but is rather going to
shoot through the
roof. In fact, the macroeconomic instability is likely to
intensify as the
2003 national budget rolls along because most government
departments will not
be able to live within the 2003 budget allocations. In
the 2003 budget
estimates, total expenditure has been put at $770.2 billion
when total bids
amounted to more than $1.4 trillion meaning that government
departments were
allocated about half of their anticipated expenditures. As
such, as has
become the norm, the Minister of Finance is certainly to go
begging
Parliament for a supplementary budget.
The shrinking economy will
not be able to generate any additional
revenue to meet the increased
expenditures. The consequences would be far
reaching and would further fuel
inflation which could go beyond the 1000
percent mark by the end of the year.
The result will be more and more
discontent among the population and the urge
to go onto the streets would
become irresistible.
Like the
Zimbabwean national senior soccer team there is need for the
government to
get real about its constant failures to stabilise the economy.
There is need
for policy consistency, particularly as it relates to the
national budget.
Parliament should strengthen its role as a watchdog of the
government’s
expenditure pattern. In this regard, Parliament should not
approve a
supplementary budget this time around otherwise the whole
budgetary process
becomes one big joke.
James Jowa is a member of the Zimbabwe
Economics Society
Telegraph
Mugabe 'considering retirement'
By Christopher Munnion in
Johannesburg
(Filed: 19/06/2003)
Robert Mugabe is considering
stepping down as Zimbabwe's president within a
year under "certain
conditions", South African government sources
said
yesterday.
His demands include the right to nominate his
successor and international
and local recognition that he remains the
country's properly elected
founding president to enable him to enjoy
"honourable retirement", they
said.
The 79-year-old autocrat, whose
obsession with clinging to power has brought
his once-prosperous nation to
the edge of economic collapse and political
chaos, is said to have assured
President Thabo Mbeki of South Africa of his
retirement plans in a telephone
call last week.
Mr Mbeki sees Mr Mugabe as a major impediment to his
dream of successfully
launching Nepad - the "new partnership for Africa's
development" under which
African nations commit themselves to good governance
in return for
international financial aid.
Mr Mbeki called Mr Mugabe
on the eve of the World Economic Forum Africa in
Durban, a crucial meeting
for Nepad ambitions, at which the South African
leader was host.
Mr
Mbeki was said to have been enraged by images emerging from Zimbabwe
of
Morgan Tsvangirai, leader of the opposition Movement for Democratic
Change
being hauled before court in chains to face a second charge of high
treason
for organising protests against the Mugabe
government.
According to sources, Mr Mbeki told Mr Mugabe of South
Africa's
"displeasure".
A surprisingly conciliatory Mr Mugabe assured
the South African leader of
his plans for conditional retirement but
emphasised that he would not quit
under pressure from "troublemakers" or
"international subversives".
But Mr Mugabe has repeatedly broken
assurances given to South Africa. His
office issued a statement yesterday
rejecting any suggestion of his
resignation.
Barutiwa News Service
Zimbabwean company exports 22,000 cartons of
fruit to UK
Charles Rukuni, Correspondent in Zimbabwe
Barutiwa
News Service
Filed on Jun 18, 2003 @ 13:10 hours
EST
Harare, Zimbabwe (BNS) - Though Britain is at the forefront
of calling for
sanctions against Zimbabwe, its nationals are gobbling up at
least 7000
cartons of citrus, a month, from the beleaguered Southern African
country.
According to the latest report of Interfresh, a company listed on
the
Zimbabwe Stock Exchange, its subsidiary Citrifresh exported 22,000
cartons
of "easy peel citrus directly to UK supermarkets" in the first
quarter of
this year.
The principal shareholders of Citrifresh are
Interfresh with 51%, Mazowe
Rural and District Council with 10%, a group of
resettled farmers with 10%,
and a black empowerment syndicate with
29%.
Interfresh has 10 subsidiaries which include the country's biggest
growers
of oranges. It also exported 9.2 million stems of flowers to Europe
during
the first quarter.
Last year, the company made a net profit of
Z$1.6 billion up from Z$166.6
million the previous year.
The Zimbabwe
dollar is officially pegged at Z$824 to the US dollar.