Zim cuts electricity tariffs, sets new fuel prices

http://www.zimonline.co.za

by Nokuthula Sibanda Saturday 21 March 2009

HARARE - Energy Minister Elias Mudzuri on Friday reduced electricity tariffs
and set new fuel prices in a move he said was part of efforts by the
government to jump start Zimbabwe's economy.

Mudzuri reduced from US$0.9 cents to US$0.7 cents the average electricity
tariff with backed to February, which translates to an average monthly
household bill of US$6 per 50-kilowatt hours, considered the minimum
consumption.

"We have put in this price in order to jump start the economy which we hope
will happen within the next five months," Mudzuri said.

"The decision was motivated by the need to ensure energy security and hence
sustain the current momentum on our short term economic turnaround
programme. As industry (output) picks up, we may have to cut other people,"
said Mudzuri who said his ministry consulted all stakeholders on the new
tariffs.

He said the new tariffs compared well with regional tariffs, and would help
the government-owned ZESA power utility raise funds to improve operations.

Mudzuri stressed that demand continued to outstrip supply but added that
government was putting in place measures to boost production at the country's
power stations.

The price of diesel was set at US$0.85 per litre, US$0.95 for petrol, and
US$0.80 for both Jet A1 and paraffin.

Mudzuri said the government was not moving in to control the sector but was
just setting the benchmark.

Fuel suppliers were free to charge any amounts as long as they were either
at par or below the prices set by government, he said.

"The agreed prices recognise the need to make diesel which is an input in
production as affordable as possible in order to stimulate production in all
sectors of the economy," Mudzuri said.

He set fuel duties and levies, which would leave oil companies and dealers
getting a margin of seven percent, down from the previous 10.4 percent from
their operations.

Mudzuri urged oil companies to make use of the Feruka pipeline to import
fuel as it was cheaper than trucks which most companies were currently
using.

It costs at least US$0.3 per litre to move oil using the pipeline and US$0.8
using trucks.

If oil companies used the pipeline this could lead to further cuts in the
fuel prices, Mudzuri said.

The new measures were in line with government's new economic plan, the
short-term economic recovery programme (STERP) launched on Thursday to
rejuvenate the economy. - ZimOnline

MDC, Zanu PF women join hands

http://www.zimtelegraph.com

By MIRIAM MARUFU
Published: Saturday, March 21, 2009

HARARE - The MDC Women's Assembly members on Friday joined over 12 000 other
women of Zimbabwe, including Zanu-PF Women's League members, to commemorate
the International Women's Day at the City Sports Stadium in Harare .

For the first time in Zimbabwe 's history, women from all political parties,
from the church, academia, armed forces and school children joined hands and
converged at the stadium to celebrate women's rights.
The International Women's Day is commemorated worldwide every year on 8
March but was postponed in Zimbabwe due to other pressing commitments since
the formation of an inclusive government.

The commemorations were also held at a time when the MDC and the nation at
large is mourning the untimely death of Amai Susan Nyaradzo Tsvangirai, the
wife of MDC President and Zimbabwe's Prime Minister Morgan Tsvangirai who
died in a fatal car accident early this month.

Key note addresses were presented by MDC Vice President and Acting Prime
Minister, Thokozani Khupe and the Vice President Joice Mujuru.

Khupe called for an end to domestic violence against women and the girl
child.

She also urged women from different political affiliations to begin to
co-exist.

"As women we should learn to tolerate each other for the development of the
nation as the formation of an inclusive government is a new beginning for
the country," Khupe said.

She said by showing unity and love as women, men and children were bound to
follow, a move that would help in rebuilding the nation.

MDC Women's Assembly Chairperson and Minister of Public Works Theresa Makone
said this years' celebrations were the first celebrations since the
formation of the MDC that women from all political parties have come
together and shown an overwhelming atmosphere of peace and togetherness
which if maintained will move Zimbabwe in a different direction.

Makone said that according to the Global Political Agreement substantial
positions in government should have been given to women but that had not
been the case.

"A few women have been given the crumbs in government. As being caregivers
by nature, women have been allocated insignificant ministries," Makone said.

She also said that it was disappointing to note that there were a few women
in senior positions in the army and the police and appealed to the Inclusive
Government that there be more drastic changes so that more women could be
seen in senior positions.

Makone said that as MDC women they will make sure that any politician who
promotes violence against women and the girl child is destined to lose his
position.

"As women we are saying enough is enough, whoever will promote violence
against women and the girl child is destined to lose that position," Makone
said .

The commemorations are going to be spread across all the 10 provinces in the
country in an effort to spread the gospel of unity across the country.

Schools Use Mid Year Results for Enrolment

http://www.radiovop.com


MASVINGO, March 21 2009 - Headmasters from several schools dotted
around the province have started enrolling Lower Sixth students using last
year's mid year exams.

A number of schools that include Gokomere High, Zimuto High, Gutu
Mission, Pamushana High School, Victoria High, Chibi Mission, Silveira and
St Anthony are already enrolling Lower Sixth students based on their second
term examination results performance since Ordinary Level examination
results are yet to be released.

However, headmasters have pointed out that due to lack of uniformity
in examinations administered by schools, some students are at a
disadvantage.

Moreover, some students did not write mid year exams as teachers had
already embarked on an industrial action. Students from such schools are
reportedly drafting their own academic assessment reports, which will enable
them to look for form five places.

"Though we are trying to admit students based on their second term
results performance, we have discovered that there is a lot of chaos and
cheating. The system will greatly disadvantage most bright students.

"The Zimbabwe School Examination Council (ZIMSEC) must ensure O' level
results are out as soon as possible. It is very risky to enrol students for
Advanced Level when we do not know their ability in specialised subjects,"
said a headmaster who refused to be named.

when we do not know their ability in specialised subjects," said a
headmaster who refused to be named.

School headmasters said they are not sure if ZIMSEC will be able to
release the results on time. "It is better to be prepared than to wait for
ZIMSEC which never releases students results on time.

Clara Dube the Provincial Education Director (PED) said headmasters
had not been instructed to enrol students using mid year's results but
however said there was nothing wrong with the procedure.

"I think those are progressive headmasters. Though we never told them
to do that, I think it is always good to be prepared. All they need to do is
to seriously guard against cheating but if ZIMSEC releases results then it
will be easier for them as they will only have to verify," said Dube.

Meanwhile the teaching of minority languages is set to commence in
Binga as distribution of Tonga literature to all primary schools in the
district has started.

Linos Mudimba, an official with the Ministry of Education sports and
Culture in Binga told RadioVOP that the project has been made possible with
the support of three non-Governmental organizations operating in the
District.

"We received support from Tonga on Line, Busiliswi Trust and Silveira
House who facilitated the publication of literature, which was published by
the Zimbabwe Publishing Company (ZPC)," said Mudimba.

Mudimba said teachers in Binga played an important role in translating
some of the books from Ndebele and Shona to Tonga.

"The books are now being distributed to all primary schools in the
district and we are hoping to officially start Tonga lessons at the start of
the second term."

Mudimba said the Ministry was also looking at ways of preparing the
Tonga Grade Seven examination this year.

He added that work was also in progress to produce relevant literature
for secondary schools in Binga. Batonga children have all along been forced
to take up Ndebele or Shona as indigenous languages, as there was no
syllabus for their mother language Tonga.

There are also several other minority languages, which are still not
being officially taught in schools in the country with communities
expressing concern at the anomaly. These include Venda, Zulu, Ndau, Kalanga,
and Barwe among others.

Coal Shortage Affects Hospital

http://www.radiovop.com

BULAWAYO, March 21 2009 - The shortage of coal has hit United Bulawayo
Hospitals (UBH) hard, with the institution now failing to heat its boilers,
which are vital for sterilising instruments used in theatre and maternity
wards.

The hospital is also failing to adequately feed its staff, patients
and students and provide clean linen due to the shortage.

A medical doctor, who spoke on condition of anonymity to RadioVOP
Friday, said the institution has been without adequate coal for the past two
weeks.

"This is affecting operations in the theatre and labour wards because
that is where most instruments need to be sterilized. Staff in these
departments are now using disinfectants to clean the instruments, which is
not as effective as sterilising with steam,".

A worker at the hospital's main kitchen said they were now cooking
limited food for patients and students.

"We use a lot of coal for cooking purposes. Since the formation of the
all-inclusive government last month the food situation at the hospital has
significantly improved but coal shortage is now the problem," said the
doctor.

The doctor said women in the labour wards were sleeping on beds
without linen because of the shortage of coal to operate laundry machines.

The hospital's linen is being withheld by Snow-White Dry Cleaners in
the city after the hospital authorities failed pay an undisclosed debt.

The hospital obtains its coal from coal merchants.

Zimbabwe's largest and single producer of coal, Wankie Colliery
Company Limited, has been failing to meet the high demand for the local
market.

The company has cited the constant break down of heavy-duty equipment
and machinery as well as shortage of railway wagons as major challenges.

The company's major machinery, the dragline, has also been breaking
down often.

About 85 to 95 percent of the company's coal production is obtained
from the open cast mine, which depends on the dragline. The failure to
service and maintain the dragline has resulted in reduced output.

Political Violence Victims Seek State Assistance

http://www.radiovop.com


ZAKA, March 21 2009 - Three men who escaped death by  whisker after a
Movement for Democratic Change office at Jerera Growth Point was petrol
bombed in June last year, are seeking state assistance to enable them to
look after their families.

Edison Gwenhure (28), Kudakwashe Tsumele (31) and Isaac Mbanje (29)
were severely burnt and are no longer able to do anything on their own. The
three were left crippled and still require medical attention.

"I am not able to do anything on my own. I am now a disabled and I can
no longer properly look after my family. I think if the inclusive government
is serious, it will also look after us," said Kudakwashe Tsumele.

Isaac Mbanje disclosed that the three were failing to fend for their
families.

"The government should make sure that it gives us something for our
survival. Without assistance from government, we can not afford to forgive
those who burnt us. How can the government expect us to forgive and forget
when they do not give us something to console us?

"Our lives were greatly ruined by those who bombed us so those who
discourage us from revenging must give us help as a way of consoling us,"
said Mbanje.

Peter Imbayago the Chairman for Zaka Rural District Council and MDC-T
Councilor said family members of the two men had died as a result of the
petrol bomb, which crippled the three who are now seeking compensation from
government.

Washington Nyahwa and Crison Mbano died on the spot when ZANU PF
youths locked the Movement for Democratic Change office in Jerera and bombed
it last year.

"The Nyamwa and Mbano families are claiming compensation from the
government. Traditionally, murderers should be punished and pay something in
compensation so if the government refuses to let people revenge, then the
bereaved families will want something from the government," said Imbayago.

Cases of violence are however still being experienced in Zaka.

"We spent the whole week cooling tempers as MDC-T youths in ward 15
were seeking revenge," said Imbayago.

Zimbabwe cholera deaths decline by 63 percent in one week, WHO reveals

http://www.apanews.net

APA-Harare (Zimbabwe) The World Health Organisation (WHO) said Saturday that
there was a 63 percent decline in the number of cholera deaths this week but
warned of an upsurge in the incidence of the disease in the capital Harare
due to constant water cuts.

The WHO said in its latest weekly report released Saturday that there was a
continued downward trend in the overall number of cholera cases and deaths.

According to WHO, a total of 2,237 cases were reported in the period from
March 8 to 17, reflecting a 58 percent decrease from the 3,812 cases
recorded in the previous week.

The number of deaths during the week of reporting decreased to 50, compared
to 79 the previous week, translating to a 63 percent reduction.

The reduction in cases is attributed to a coordinated cholera response,
including better case management, greater social mobilization, enhanced
logistics, improved environmental health and more vigilant surveillance at
both national and provincial level.

However, there has been an increase in reported cases from Harare and
Chitungwiza, about 30km east of the capital.

Harare reported 521 cholera cases, the highest number per district, a
situation attributed to the interruption of water supplies due to shortages
of chemicals and the transfer of water management from the Zimbabwe National
Water Authority (ZINWA) to the City of Harare.

The transfer follows a government decision to reassign water management from
ZINWA to local authorities.

The cumulative number of cholera cases since August 2008 as at 17 March 2009
is 91,164, with 4,037 deaths.

  JN/daj/APA 2009-03-21

Angry workers set fire to sugar cane crop

http://www.thezimbabwetimes.com/?p=13703

March 20, 2009

By Owen Chikari

MASVINGO - At least 100 hectares under sugar cane went up in smoke when
workers in the Lowveld downed tools and set ablaze the mature crop to press
for better salaries and the immediate dismissal of union leaders.

The workers are demanding payment in foreign currency. They say they want
the lowest paid worker to earn US$130 a month.

Following negotiations which were largely unfruitful this week the angry
workers set the fields of mature sugar cane ablaze.

The workers also demanded the immediate dismissal of Admore Hwarare the self
proclaimed president of the Zimbabwe Sugar Milling Industry Workers Union
(ZISMIWU). They accuse him of failing to properly represent them and of
abusing union funds.

Police in Chiredzi yesterday confirmed the incident. They said no arrests
had been made so far.

"We are investigating a case in which workers in the sugar industry from
Mkwasine, Hippo Valley and Triangle estates set on fire the mature crop",
said a police spokesman who requested anonymity.

"We have not arrested anyone but investigations are continuing".

Hwarare also confirmed the industrial action.

"The workers set ablaze the crop because they were pressing management to
act on the issue of salary increments", he said.

However investigations by The Zimbabwe Times revealed that the workers apart
from the salary increases the workers would also want Hwarare to immediately
relinquish his post.

"We no longer want Hwarare because he has abused us ", said one of the
disgruntled workers."He does not represent us properly but instead milks us
dry every month by collecting union subscriptions.

"We did not vote for him hence we are calling for his immediate dismissal".

Zimbabwe Congress of Trade Unions (ZCTU) Masvingo regional coordinator
Wilson Mposhi said the Hwarare led executive was illegitimate.

"Workers normally choose their own union leaders but in this case Hwarare
just imposed himself on the workers", said Mposhi.

"We need to revamp the whole executive and the workers no longer want to see
Hwarare and his executive".

This is not the first time that the workers in the sugar industry have set
ablaze the crop on fire.

Last year the disgruntled workers also set ablaze the mature crop to press
for salary increments.

Meanwhile Hippo Valley and Triangle Limited have resumed sugar sales after
briefly suspending sales, citing low prices and demanding from government
that the product be sold in foreign currency.

Given the current dollarisation of the country's economy the two sugar
milling giants have since been allowed to sale sugar in forex.

Before the dollarisation of the economy sugar prices were controlled by
government and any price increases were supposed to be approved by the
state.

Africa needs younger leaders, says Annan

http://news.yahoo.com

Fri Mar 20, 4:22 pm ET

LAGOS (AFP) - Former UN secretary general Kofi Annan Friday called on
Africa's ageing leaders, including Zimbabwe's Robert Mugabe, to make way for
younger successors, saying it was a "shame" how they clung to power.

"It is a profound shame that since independence so many African leaders,
once elected, come to believe that only they can be trusted to run their
country," said Annan.

"The result all too quickly becomes government for the benefit of the ruling
elite rather than society as a whole," he said in an address to a Nigerian
research institute, the Obafemi Awolowo Foundation.

Annan said Africa needed political leaders "who recognise that democracy
means they that can be voted out as well as into power.

"I don't see why any African at 84, at 85, can still feel that they are the
only ones who can run their country and won't hand over to younger men.

"Look at Obama, he is 47, in many African countries they would probably
consider him too young," Annan said, referring to the new US President
Barack Obama.

If Mugabe, who at 85 is the oldest African president, was to be replaced by
a younger person, "his attitude would be different," Annan said.

"We must find ways to attract much larger numbers of talented young men and
women into politics...there are men and women of their time, they know how
the world works.

Good leadership and governance as well as tough anti-corruption practices,
would ensure a country's natural resources are used to improve society, he
said.

"For too many countries in Africa, natural resources have not been a boon
but a curse. We must (have) greater transparency in the revenue which
governments receive from the extraction of natural resources and how the
money is spent," said Annan.

British thinktank warns of "global pandemic of unrest"

http://www.monstersandcritics.com

Business News
Mar 20, 2009, 19:20 GMT

London - A leading British thinktank Friday warned of the 'grave threat' of
social unrest in response to the global recession over the next two years.

The Economist Intelligence Unit (EIU), in a paper published Friday, rated
the risk of upheaval that could 'disrupt economies and topple governments'
as 'high or very high' in 95 countries.

'Popular anger around the world is growing as a result of rising
unemployment, pay cuts and freezes, bail-outs for banks, and falls in house
prices and the value of savings and pension funds,' said the EIU paper,
entitled Manning the Barricades.

'As people lose confidence in the ability of governments to restore
stability, protests look increasingly likely.'

A spate of incidents in recent months had shown that the global economic
downturn was having political repercussions.

'This is being seen as a harbinger of worse to come. There is growing
concern about a possible global pandemic of unrest,' said the paper.

Top of the list of high-risk countries were Zimbabwe, Chad, the Democratic
Republic of Congo, Cambodia and Sudan.

However, three of the European Union's neighbours - Ukraine, Moldova and
Bosnia-Hercegovina - were rated as being at 'very high risk' of social
upheaval.

The paper pointed out that two European governments - in Iceland and in
Latvia - had already fallen as a result of crisis.

In Europe, Britain was 'not immune' from the danger of serious social unrest
and 'more likely' to suffer from it than Germany and the Netherlands, but
'less likely' than France and the US.

A lot depended on how US President Barack Obama responded to pressure to
'defend American jobs and companies against foreign imports,' said the
paper.

'As the downturn worsens, far more intense and long-lasting events can be
expected, such as armed rebellions, military coups, civil conflicts and
perhaps even wars between states,' it said.

Zim's blueprint for recovery

http://www.mg.co.za

JASON MOYO - Mar 21 2009 06:00

Zimbabwe has unveiled an ambitious US$5-billion short-term economic recovery
plan, which President Robert Mugabe was expected to announce on Thursday,
laying out for the first time the coalition's plan to reverse years of
economic turmoil under his rule.

To an audience of foreign diplomats, global financiers and members of the
coalition government, Mugabe was to present a 121-page document that
acknowledges that the unity government faces "the challenges of collapse and
decay".

The plan announces a new push to win over sceptical international donors,
attract critical skills, embark on a fire sale of "non-strategic" state
enterprises, revive agriculture and lift depressed industrial output.

The success of the plan will depend almost entirely on Zimbabwe's ability to
"secure external international financial support as part of the measures
coordinated by the Southern African Development Community [SADC] to support
economic recovery in Zimbabwe".

The blueprint stops just short of adopting the rand as Zimbabwe's official
currency, only making it "the currency of reference" for use in setting
benchmarks for the plan.

"Government has decided that the reference currency should be the rand. The
reasons for this are partly determined by economic factors as well as the
future intention of SADC to adopt a common currency, which inevitably will
have to be based on the rand given the dominance of the South African
economy in SADC," the report says.

An assessment of Zimbabwe's needs in key sectors such as agriculture, water
and sanitation, education, health, industry and local government put the
"total resource requirements in excess of US$5 billion", the new plan says.

The plan is refreshingly frank on the depth of Zimbabwe's economic crisis, a
marked departure from years of denial under the Mugabe government.

"The rehabilitation of these and other sectors will take many years beyond
the emergency programme," it said.

But it appears short on detail and admits it faces little chance of success
without foreign aid. On Wednesday Finance Minister Tendai Biti lowered
revenue forecasts by 43%, telling Parliament to "face the grim reality" of
weak revenues.

The reform plan places agriculture at the centre of the recovery effort,
backing Prime Minister Morgan Tsvangirai's demands for a halt to fresh farm
invasions and a land audit.

"To promote confidence, investments and other developments on farms, as well
as ensuring security of farming operations, the inclusive government will
uphold the rule of law as well as enforce law and order on farms including
arresting any further farm invasions which disrupt farming activities."

The plan also places emphasis on attracting skills back home. It targets
doctors, engineers, university lecturers, science teachers and financial and
information technology experts.

But there is no detail given on what these incentives entail or whether
donors are backing the programme.

On the economic fundamentals, a reform plan would "allow the new foreign
currency-based CPI inflation to moderate to low levels such as under 10% per
annum by the end of 2009".

The rand would be used to measure progress, but would not become Zimbabwe's
official currency.

"It is important to reiterate that nominating the rand as the reference
currency in no way diminishes government's commitment to multiple
currencies. It is, however, the first step in anticipating an epoch when we
can resume use of the Zimbabwe dollar, but it will be necessary first to
restore the multi-currency economy to a reasonable and sustainable level of
activity."

State enterprises will either be recapitalised or sold. Negotiations with
interested private consortiums have already begun.

The new government is aware of the scepticism likely to meet this new plan.
The document admits that the "experience from previous policy pronouncements
have demonstrated [a] serious deficiency in the implementation of agreed
policy measures".

FULL TEXT: Short Term Emergency Recovery Programme (STERP)

http://www.zimonline.co.za

Saturday 21 March 2009

SHORT TERM EMERGENCY RECOVERY PROGRAMME

(STERP)

Getting Zimbabwe Moving Again

MARCH 2009

INTRODUCTION

1. On the 15th of September 2008, a Global Political Agreement was executed
by the three Political Parties represented in the Zimbabwean Parliament.
Pursuant to this, the new Inclusive Government took Office in the context of
an economy that had many challenges.

2. At the epicentre of the economic crisis, have been unprecedented levels
of hyper-inflation, sustained period of negative Gross Domestic Product
(GDP) growth rates, massive devaluation of the currency, low productive
capacity, loss of jobs, food shortages, poverty, massive
de-industrialisation and general despondency.

3. It is, therefore, a fundamental task of the new Inclusive Government to
address the above and to resuscitate and rehabilitate the economy. In
addition, the new Inclusive Government has to attend to the major imperator
of nation building and national healing.

4. The obligation of the Inclusive Government to buttress the issues of
economic recovery is set out in the GPA under Article 3 1(a) which states
inter-alia as follows:

the parties agree to give priority to the restoration of economic stability
and growth in Zimbabwe. The Government will lead the process of developing
and implementing an economic recovery strategy and plan. To that end, the
Parties are committed to working together on a full and comprehensive
economic programme to resuscitate Zimbabwe's economy which will urgently
address the issue of production, food security, poverty and unemployment and
the challenges of high inflation, interest rates and the exchange rate.

5. As part of its obligation to address the economic crisis, Government has
come up with the present Short Term Emergency Recovery Programme
(hereinafter referred to as STERP), which will cover the period February to
December 2009.

6. STERP is an emergency short term stabilisation programme, whose key goals
are to stabilise the macro and micro-economy, recover the levels of savings,
investment and growth, and lay the basis of a more transformative mid term
to long term economic programme that will turn Zimbabwe into a

progressive developmental State.

7. STERP is, therefore, part of implementation of the Global Political
Agreement and seeks to address the key issues of economic stabilisation and
national healing, whilst at the same time laying the foundation of a more
comprehensive and developmentalist economic framework which will succeed the
same.

The Key Priority Areas

8. The key priority areas of STERP are;

a) Political and Governance Issues

i. The constitution and the constitution making processes

ii. The media and media reforms

iii. Legislations reforms intended at:

a) Strengthening Governance and accountability

b) Promoting Governance and rule of law

c) Promoting equality and fairness, including gender equality.

b) Social Protection

i. Food and Humanitarian Assistance

ii. Education

iii. Health

iv. Strategically targeted vulnerable sectors.

c) Stabilisation

i. Implementation of a growth oriented recovery programme

ii. Restoring the value of the local currency and guaranteeing its stability

iii. Increasing capacity utilisation in all sectors of the economy and,
hence, creation of jobs

iv. Ensuring adequate availability of essential commodities such as food,
fuel and electricity

v. Rehabilitation of collapsed social, health and education sectors

vi. Ensuring Adequate Water Supply

Cornerstone of STERP

9. In crafting STERP, consultations have been made with various sectors in
particular labour and business. This has been done in order to nurture the
basis of a people driven development agenda. More importantly in crafting
STERP there has been the conscious need to adopt an alternative people
centred, people driven and inward looking rehabilitation strategy, within
the context of a very constrained structure outlined above.

10. Secondly, the stabilisation programme, developed herein has, as its
anchor - the need to promote production and increase capacity in key areas
of the economy in particular agriculture, mining, manufacturing and tourism.
In short, STERP is a

Capacity Based Rehabilitation Programme (CBRP) that seeks to stabilise all
the macro and micro-economic fundamentals in Zimbabwe. The stabilisation
component of STERP will target inflation and will increase the saving stock
of the country.

Expected Outcomes

11. At its end, STERP should have delivered more than the basic
rehabilitation of our economy. STERP should lay the foundation of a basic
African State that will find its place in the sun, play its role in SADC,
the African Union as well as the rest of the world.

12. STERP should allow the people of Zimbabwe to have decent jobs and
incomes and should ensure that our hospitals, schools, churches and
community centres are once again functioning.

13. At the end of it all, STERP will create an economy:

a) Able to sustain itself through food self sufficiency

b) Weaned off the current price distortions

c) That creates jobs and employment opportunities

d) Confers equal opportunities and treatment to all its citizens

e) That accepts the equality and central role of women and mainstreams
gender in all facets of the same

f) That takes cognisance of the environment and global environment changes

g) With functional infrastructure such as roads, water and
telecommunications

h) That is people centred and inward looking

i) That guarantees freedom of expression and property rights

j) That generates confidence and inter-sectoral synergies

k) That reduces poverty

l) That is free of any sanctions and measures and is totally integrated in
the region and continent.

Sanctions and Other Measures

14. In Article 4.6 of the GPA, the relevant Zimbabwe political parties
agreed and committed themselves to endorse the SADC resolution on sanctions
concerning Zimbabwe and that all forms of measures and sanctions against
Zimbabwe be lifted in order to facilitate a sustainable solution to the
challenges that are currently facing the country.

15. In this regard, STERP recognises that apart from targeted travel bans,
measures have been taken against Zimbabwe, denying the country the right to
access credit facilities from international financial institutions,
suspending Zimbabwe's Voting Rights, as well as denying Zimbabwean companies

access to lines of credit.

16. It is recognised that some measures against Zimbabwe are in respect of
omissions and commissions arising from various bilateral agreements and
instruments e.g. the Cotonou agreement with the European Union.

17. In this regard, discussions have already started with the European
Union, European Commission, World Bank, IMF, and the AfDB with the objective
of removing the above sanctions and measures in compliance with Article 4.6
(c) of the GPA. As far as the USA is concerned, it is imperative that the
Zimbabwe Democracy and Economic Recovery Act (ZIDERA) be repealed and
representations and consultations have already begun in this respect.

Global Economic Developments

18. STERP is being unveiled at a time when the world economy is facing one
of the worst economic recessions, which originally started as a financial
crisis. The impact of this has been a significant slowdown in most major
economies, including the rapidly growing economies of Asia. As a result, in
2009 world growth has been revised and is expected to decline to its lowest
levels in 60 years.

19. This crisis is posing a threat to emerging economies as well as other
developing countries including Zimbabwe. The key channels through which the
effects of the crisis will be transmitted to developing economies such as
Zimbabwe include reduced demand and hence poor prices for our exports.

20. Similarly, tourism as well as external financing sources, such as
portfolio and direct investment, lines of credit, grants and migrant
remittances are expected to suffer from this financial crisis and global
slowdown.

21. Where financial linkages with those in the affected developed countries
are stronger, the impact of the financial crisis will be more pronounced.

22. STERP takes cognisance of the above fundamentals. The expectation,
therefore, in terms of support from abroad as well as the pace of the
turnaround has to be realistic and pragmatic.

23. Furthermore, an important lesson coming from reactions by the
Governments of affected developed countries is the necessity for stimulus
packages meant to assist distressed companies in order to get out of the
recession.

24. Similarly, this Programme proposes a stimulus package for the key
productive sectors in order to turn around the economy.

POLITICAL AND GOVERNANCE ISSUES

25. The GPA recognises that the anchor to a new Zimbabwe needs to address
not only economic issues, but also issues around the rule of law, a new
people driven Constitution, and entrenched property rights. This fact is
recognised in the GPA, which devotes about 80% to human rights and
democratic principles as espoused from article 6 to 19 of the Agreement.

26. Furthermore, it is trite that without a well functioning economy,
democracy and human rights are impossible and equally without a well
functioning democracy, economic development is not feasible.

27. Therefore, STERP recognises the commitment of the inclusive Government
to the making of the new Constitution as defined under Article 6 of GPA.
This should be commenced as a matter of urgency.

28. STERP like the GPA, recognises the importance of creating a vibrant and
free media as an important part of democratising institutions. This entails
liberalising the air waves, freeing the media, and ensuring that plural
voices are heard through both electronic and print media, consistent with
Article 19 of the GPA.

29. Over and above this, it is recognised that legislation will be passed
cementing the enjoyment of the rule of law, the rights to freedom of
expression and association in line with the provisions under article 11 and
12 of the GPA.

Values and Aspirations

30. The Inclusive Government is founded on certain values that are at the
core and epicenter of STERP. The preamble to the GPA acknowledges that "the
values of justice, fairness, openness, tolerance, equality, non
discrimination and respect of all persons without regard to race, class,
gender, ethnicity, language, religion, political opinion, place of origin or
birth are the bedrock of our democracy and good governance".

31. In addition, the GPA itself has a vision of the new Zimbabwean society
that has to be created. The preamble defines this aspiration as follows:
'determined to build a society free of violence, fear, intimidation, hatred,
patronage, corruption and founded on justice, fairness, openness,
transparency, dignity and equality?

32. STERP is loyal to the above aspirations and values, which are essential
and critical to get Zimbabwe moving again. In this regard, the issue of
corruption and combating corruption particularly in the public service is
vital to the enforcement of the above values.

33. Combating corruption will involve strengthening the Judiciary, the
Attorney General?s Office, the Anti-Corruption Commission and more
importantly ensuring that high standards of accountability and honesty are
maintained in the public service. Government and parastatals cannot be
institutions of handouts and, therefore, all leakages must be plugged. In
addition, where possible, new Laws will be enacted and present Laws such as
the Prevention of Corruption Act will be strengthened.

Women Affairs, Gender and Community Development Focus

34. Women are generally marginalised in many African economies. In most of
these economies, patriarchical and unsound market liberalisation policies
have resulted in the feminisation of poverty.

35. STERP seeks to ensure household food security, targeting of women in
their production and reproductive roles in order to eradicate poverty.

36. The absolute and total drop in formal sector employment, and rampant
urban population increase, deterioration of public services has led to
"informalisation of the economy". This in turn has resulted in further
growth of the informal sector and the feminisation of poverty.

37. STERP seeks to ensure the de-marginalisation of women in Zimbabwe
through specific and concrete gender mainstreaming policies and programmes
in every sector covered by STERP. Programmes that target women and
vulnerable groups will receive resource mobilisation priorities, given the
special and decisive role of women in community development.

38. STERP proposes that the Constitutional review process addresses critical
aspects of women's rights particularly in the area of representation in
political and decision making, affirmative action, personal law and access
to control and ownership of resources.

39. Women's presence in key decision making positions is minimal. Indeed it
is of concern that in the Inclusive Government there are only seven women
Cabinet Ministers out of thirty five.

40. Further, STERP urges compliance with Article XX of the GPA which seeks
to create gender parity in the appointment of women to strategic Cabinet
posts.

41. Zimbabwe has made significant progress in enacting laws that promote the
status of women.  STERP proposes a review of all other discriminatory laws
as well as ensuring education and consolidation of gains made so far, for
example, in the field of land.

42. In this regard, STERP welcomes Article 5.8 of the GPA which recognises
the need for women's access and control over land in their own right as
women.  Resources to ensure women's effective and equal participation in the
process and outcome of the Constitutional making process should be availed.

43. With regards to land, women will own land in their individual capacity
and in marriage, there will be joint registration of the lease hold title
and land permits, with the unequivocal provision that, written consent of
either of the spouses is required before any disposal of the land.

44. Consistent with the above legal reforms, it is important that all
Conventions and Instruments dealing with women's issues, in particular the
African Union Protocol to the African Charter on Human and People's Rights,
on the rights of women, the SADC Protocol on Gender and Development and the
Convention on the Elimination of all Forms of Discrimination Against Women
(CEDAW) are incorporated into national laws.

45. Finally, the National Gender Policy needs to be updated and revised, but
more importantly, the recently developed Five Year Strategy and Work Plan
for the National Gender Policy needs to be implemented by all sectors.  In
recognition of the need to ensure women's empowerment, gender equity and
equality, and the central role of women in community rehabilitation
development, STERP will avail adequate resources.

SHORT TERM EMERGENCY RECOVERY MEASURES

46. STERP will consolidate the key policy shifts reflected in the Budget
Statement of 29 January 2009 and will focus on the following short term
emergency policy areas. Social protection measures meant to mitigate poverty
and suffering by resuscitating public services delivery, as well as
strengthening humanitarian assistance, particularly focusing on Targeted
Vulnerable Groups;

Support for the revival of productive sectors;

Creation of a conducive investment climate in the country;

Establishing a sound macroeconomic environment conducive for stabilisation
through demand side management measures in particular capacity expansion in
all sectors;

Strengthening the regulatory environment of the financial sector; and

Finalising the national employment policy.

47. Addressing the above priority areas will require huge financial
resources in excess of US$5 billion as outlined under the section on
"Funding of STERP" below and underpinned by consistent implementation of
respective policies and other measures.

SOCIAL PROTECTION PROGRAMMES

48. The provision of adequate and quality basic social services is a key
area of this Programme. Access to health, education, housing, among others,
is central to human development and the active participation of the people
in the country's development programmes.

49. In short, the provision of social safety nets is critical in both rural
and urban areas.  Indeed, poverty and deprivation have to be mitigated in
the short term and totally eradicated in the long term.

Education

50. The worsening of the economic environment had negative impact on the
education sector. This has resulted in almost all schools failing to open up
especially for the better part of 2008 and the beginning of 2009. Some of
the major challenges espoused in the education sector were a result of the
following:

Conditions of Service

51. As the economic conditions worsened, a number of teachers left the
country in search for better working conditions. For those who remained
behind, the conditions of service would not allow teachers to report for
duty regularly owing to unaffordability to meet transport costs, as well as
other basic necessities.

Examinations

52. Equally affected were the administration of public examinations, with
challenges ranging from delivery of examination papers, their invigilation
as well as their marking. This was compounded by inadequate resources being
availed to the Zimbabwe School Examination Board as a result of controlled
tariffs. As a result of the above, ZIMSEC is having a huge backlog on
unmarked examinations going back as far as June 2008.

Learning Material and Equipment

53. Other notable challenges in the education sector include shortage of
teaching and learning materials, equipment and chemicals and other
accessories necessary for conducting laboratory and other tests.

54. The impact of the above was to leave the state of the country's
education sector, once the best in Africa, to very low deplorable
conditions.

55. In this regard, the STERP will give priority to the resuscitation of the
education sector. Priority will centre on improving conditions of service
for the teachers, including providing incentives to attract those in the
diaspora.

56. Therefore, in order to address immediate challenges in the education
sector and ensure that teachers go back to work, as well as addressing
longer term restoration of education infrastructure, an estimated US$440
million will initially be required for the above areas.

Health Delivery

57. The economic decline has resulted in a sharp decrease in funding for
health in real terms. This has directly contributed towards an unprecedented
deterioration of health infrastructure, loss of experienced health
professionals, drug shortages and a drastic decline in the quality of public
health services.

Human Resources

58. Human resources for health are the most critical component of a health
delivery system. Low income coupled with poor working environments have
forced many highly experienced health professional to leave the health
sector as evidenced by the high vacancy levels. There are about 68% of
vacant posts for doctors.

59. The remaining health workers are thinly spread out and therefore
overworked. Transport costs as well as unaffordable day to day basic
necessities have compounded this. As a result staff presence at most health
institution average between 15- 50%.

Drugs

60.  Availability of drugs is an important element for availing quality
health service. The stock outs of essential drugs, vaccines and medical
supplies have compromised access to basic health services by the poor and
vulnerable groups. During 2008 average drug stocks were at 36%.

Medical Equipment

61. There is a serious shortage of functioning essential medical equipment
which is not only compromising patient care but also leading to staff
frustrations and demotivating. This, coupled with deteriorating
infrastructure has worsened the situation. Furthermore, most fixed plants
such as laundry machines, kitchen equipment, laboratory equipment and
boilers are non functional and hospitals are therefore unable to meet basic
standards for patient care.

Preventable Diseases

62. Zimbabwe continues to experience a high burden of preventable diseases
such as malaria, HIV and AIDS, Tuberculosis, Diarrhea diseases, maternal
care etc.

63. Inadequate provision of safe water and sanitation has also been
responsible for spreading water borne diseases, leading to avoidable cholera
deaths in the urban centres.

64. A major focus of this Programme will, therefore, be on interventions to
resolve the challenges in health delivery in line with the achievement of
the Millennium Development Goals towards reducing infant, child and maternal
mortality, improving access to reproductive health service as well as
halting and further reversing the spread of HIV and AIDS.

65. This will require resources in support for capacitating Natpharm to
supply all Government health institutions with drugs and pharmaceuticals
products, as well as finance for acquisition of equipment, transport,
rehabilitation of infrastructure as well as health care and operations.

Specially Targeted Vulnerable Groups

66. In the transition towards the realisation of the quest for positive
economic growth and development, there will be some adverse effects on the
vulnerable and disadvantaged groups within our society. These include the
elderly, orphans and child headed families as well as the physically
handicapped.

67. Hence, it will be critical that the needs of vulnerable groups be
incorporated during the implementation of all programmes and projects.

68. In this regard, support for publicly funded social safety nets will be
enhanced, with specific allocations made for vulnerable groups and those
institutions catering for such people.

Humanitarian Assistance

Food Relief

Cereal Requirements

69. Given successive years of drought and reduced agricultural capacity, a
substantial number of persons have to be provided with humanitarian
assistance.  Everything being equal, Zimbabwe requires 2 million tonnes of
maize and about 500 000 tonnes of wheat per year to feed its population. In
the past few years we have failed to produce on average more than 20% of
these requirements. Therefore, present assistance must be based on acquiring
80% of these cereals.

70. It is imperative that Zimbabwe's agriculture becomes self sustaining. In
this regard, financing of the 2009 winter crop and the 2009/10 summer crop
becomes critical.

Non-Food Relief

71. Over and above the food relief, urgent humanitarian assistance is also
required in the area of water and sanitation.

72. In order to reduce the incidences of water borne diseases associated
with erratic water supply, and overstretched sewer systems, it will be
critical to make interventions in the ageing water reticulation
infrastructure and importation of adequate water treatment chemicals.

73. This support will empower local authorities under whose mandate water
management has reverted back to.

SUPPLY SIDE REFORMS

74. The economy has been under severe stress, with annual real GDP growth
suffering declines averaging - 5.9% since 2000. Cumulatively, output
declined by more 40% during that period.

75. The deepening economic crisis is reflected in sectoral performance,
which followed the same trend. Since 2006, virtually all sectors recorded
declines in output, with agriculture, manufacturing and mining estimated to
have declined by 7.3%, 73.3% and 53.9% respectively in 2008.

76. As a result, unemployment and poverty levels increased sharply.
ronically, Zimbabwe's economic decline occurred at the time when most
African countries were achieving reasonable annual growth rates averaging
4.8% and mainly driven by sound and sustained macroeconomic policies which
contained annual inflation at low levels averaging 10%.

77. It is, therefore, imperative that we restore the normal capacity
utilisation of our productive sectors, particularly agriculture, mining,
manufacturing, tourism and construction.

78. As a matter of fact, the essence of STERP is to ensure that there is
increased capacity utilisation in every sector of the economy. This will
ensure more jobs, disposable incomes, savings and greater vibrancy in the
economy.

Agriculture

79. In the medium to long term, it will be essential and critical that the
country guarantees food security and self reliance. In this regard, it is
essential that we address the land issue consistent with the Global
Political Agreement, which provides for a comprehensive transparent and non
partisan land audit for the purposes of establishing accountability, gender
equity and eliminating multiple farm ownerships as well as ensuring the
restoration of full productivity on all agricultural land in the interest of
all Zimbabwe people. Long term sustainable viability of agriculture can only
arise if there is security of tenure through among other instruments, lease
hold title, land permits and private financing of agriculture as recognised
in the GPA.

80. Furthermore, establishing a credible security of tenure policy will be
essential for building confidence and allowing investment on the land as
well as facilitating agricultural financing.

81. The new Inclusive Government will, therefore, be dealing with the above
issues pertaining to land and property rights, security of tenure as well as
enhancing financing and productivity in agriculture.

82. A key component of our Short Term Emergency Recovery Programme will
therefore priorities support for agricultural production during the 2009
winter wheat season as well as the 2009/10 summer cropping season. This will
be premised on intensive agriculture, where emphasis is on maximising output
as opposed to extensive agriculture.

83. Interventions under the Programme in agriculture will also take
advantage of the measures announced in the 2009 Budget, the Monetary Policy
Statement as well as lessons learnt from the experiences from the 2008/09
summer cropping season.

Preparations for the 2009/10 Season

84. Measures to enhance food security at the household and national level
will require that The Inclusive Government embarks early on strategies to
ensure that preparations for both the 2009 winter wheat and the 2009/10
Summer Cropping Season are undertaken timeously.

85. These preparations should benefit from the institution of structures to
address weaknesses in previous seasons interventions, characterised by late
mobilisation of the necessary material, human, foreign and local currency
requirements to support cropping.

86. The Inclusive Government's efforts to boost the country's state of
preparedness for the cropping season should also include the mobilisation of
the necessary resources in support of tillage, provision of such inputs as
fertilizer, seed, chemicals, machinery and material resources.

87. The support to be rendered by The Inclusive Government to the farmer is
meant to complement, and not to substitute, individual farmer initiatives.

Winter Wheat

88. With regard to the 2009 winter wheat crop, an output of 100 000 tons is
targeted. To achieve this target provision of adequate agricultural inputs,
payment of all outstanding wheat balances and clustering of wheat growing
areas are critical success factors. The table below shows inputs
requirements for the winter wheat:

Table I: 2009 Winter Wheat Requirements

Type Application rate (mt/ha) Total

Requirements

Seed   6000 metric tons

Compound D 0.5 30 000

Top dressing (AN) 0.5 30 000

Lime 0.4 24 000

Fuel  7,7 million litres

89. The relevant arms of Government, together with those in the private
sector, will be required to communicate their respective support in liaison
with farmer associations.

Maize Production

90. Maize production will benefit from farmers using their own resources,
traditional contract farming as well as communal farmers. Under the 2009/10
production programme, the country ought to produce more than 80% of its
maize requirements.

Financing

91. The above targeted output will be financed through a combination of
traditional contract farming facilities, private financing through own
resources and loans from the financial sector.

92. It will be the duty of the Inclusive Government to ensure the
availability of all inputs through the open market. In addition all private
sector initiatives in agriculture input support programmes will be a
priority. This includes the revival of market mechanisms in such key
agricultural related industries as in fertilizers.

93. The input requirements for farmers under this scheme are estimated as
shown below: -

Table II: Self Financing Farming Import Requirements

INPUT TOTAL REQUIREMENT

Seed (MT) 50 000

Compound D (MT) 600 000

Ammonium Nitrate (MT) 600 000

Chemicals (Litres) 4 8000 000

Fuel (Litres) 50 000 000

94. Measures will also be taken to capacitate DDF and AGRITEX to enable them
to provide improved service and monitoring of farming activities.

Crop Input Packs

95. The Inclusive Government will endeavor to mobilise resources in support
of disadvantaged rural farmers. This will be complemented by crop input pack
support from cooperating partners, including NGOs.

96. Initial estimates indicated that some 800 000 households will require
crop input packs, with the targeted support level to the individual farmer
comprising of 10kg of maize/small grains seed packs, 50kgs of Compound D and
50kgs of Ammonium Nitrate (AN) fertilizers.

97. Total requirements under this Programme are indicated below:

Table III: Crop Input Pack Support Requirements

INPUT TOTAL REQUIREMENT

(MT)

Seed 8 000

Compound D 40 000

Ammonium Nitrate 40 000

Lime 80 000

98. The participation of cooperating partners in supporting the Crop Input
Pack Scheme for vulnerable farmers will be critical and inevitable given the
limited resources of the Inclusive Government.

99. It should be emphasised that after STERP, the State will move away from
a regime of dependency and handouts in a bid to ensure the independence and
strength of all farm actors.

Tobacco & Other Strategic Crops

100. In addition, resources to support tobacco, cotton, horticulture and
production of other strategic crops for the 2009/10 summer season will also
be from the market, including contract farming.

Table IV: Input Requirements

INPUT Tobacco

Cotton Sugarcane Small grains

Seed (MT) - - - 4 500

Compound D (MT) -  - 135 000

Ammonium Nitrate (MT) 11 250 45 000  135 000

Compound S 1 125   -

Compound C 53 625   -

Lime 45 000 112 500 28 000 -

Compound L  135 000  -

Chemicals (Litres) 4 8000 000   -

Fuel (Litres) 15 500 000  31 500 000  -

Agrochemicals (litres) 3 800 000 5 300 000  229 000 1 030 000

Integrated Agricultural Recovery

101. Beyond the Immediate Measures in support of the coming cropping season,
agriculture needs to reassume its role as a major engine of economic and
social development.

102. In this regard, measures to restore and enhance the productivity of our
agriculture will be necessary to ensure the sector's contribution beyond
food self-sufficiency, and to include greater contribution towards export
and fiscal revenues.

103. Central to the integrated recovery of agriculture will be the issue of
the viability of farming as a business activity, followed by interventions
to deal with the effective utilisation of the land, as well as measures to
enhance the capacity of the farmer.

104. This will have to be complemented by clarity of land rights, as well as
the strengthening of all the critical arteries and enablers in the
agriculture production value chain, including the revival of Hwange Colliery
coal supply, restoration of ZESA power supply, rehabilitation and expansion
of irrigation infrastructure and National Railways freight services.

Land Audit

105. In order to guarantee the success of agriculture, The Inclusive
Government consistent with the Global Political Agreement, will conduct a
comprehensive transparent and non partisan land audit for the purpose of
establishing accountability, eliminating inefficiency and multiple farm
ownership.

106. This is also meant to ensure equitable land distribution as well as
ensuring security of tenure to all land beneficiaries.

Security on Farms

107. In order to promote confidence, investments and other developments on
farms, as well as ensuring security of farming operations, The Inclusive
Government will uphold the rule of law as well as enforce law and order on
farms including arresting any further farm invasions which disrupt farming
activities.

Capacitating Farmers

108. Strategies to capacitate the farmer involve such issues as access to
agriculture finance and inputs, enhancing skills through training and
extension support.

Viability of Farming

109. Measures to guarantee the profitability and viability of farming also
centre around deregulation of the marketing and pricing of commodities and
allowing farmers to sell freely their commodities in the open market and
market determined prices.

110. The practice of announcing pre and post planting producer prices is
therefore abolished.

111. Pursuant to this policy of deregulation has been the removal of the GMB
monopoly as a grain purchaser. The GMB will, however, remain the purchaser
of last resort.

Financing of Agriculture

112. While in the past Government has been playing a large role in the
funding of agriculture, both directly from the Budget as well as from
Reserve Bank facilities, current resource constraints demand that other
players particularly the private sector become more involved in supporting
agriculture.

113. Financing of agriculture, should ordinarily be the responsibility of
our banking system, drawing from the deposits by the general public.

114. Hence, measures to restore and enhance the level of participation by
our banks and other financial institutions in lending to our farmers will be
initiated. This will be both in terms of provision of short term as well as
medium term agricultural finance.

115. Short term finance facilities will essentially avail 90 - 180 day
working capital for purchase of inputs and other requirements.

116. The participation of banks in agricultural finance will be strengthened
by the liberalisation of agricultural pricing and marketing arrangements
alluded to above.

Contract Farming

117. Furthermore, The Inclusive Government will for the coming summer crop
season be calling for increased contract farming.

118. In this regard, agro-processing companies are now invited to begin
making arrangements for provision of inputs, financing and extension support
to farmers on a Contract farming win- win basis.

Effective Land Utilisation

119. Interventions beyond farmer capacity and viability will also be
necessary to deal with the effective utilisation of farming land, central to
an integrated recovery of agriculture.

120. Guidelines on production targets, taking account of agro-ecological
regions will, therefore, be necessary. Those demonstrating poor commitment
and inability would be considered for reallocation in line with their
capabilities.

121. Where streamlining and consolidating subdivisions in order to align
farm activities with corresponding infrastructure already in place is
unavoidable for viable productivity, the necessary interventions will be
undertaken.

Irrigation Rehabilitation

122. Taking advantage of the abundant water bodies, irrigation
rehabilitation of existing irrigation schemes will be critical in
preparation for the coming 2009 summer and winter cropping seasons.

123. The measures in support of quick fix irrigation rehabilitation will
focus on completion of on going projects and schemes growing maize, seed
maize and winter wheat, among other crops.

Training & Extension Services

124. Training of farmers to strengthen their agricultural skills capacity
will be intensified, taking advantage of the various colleges,
farmer-training centres as well as on-site farm training.

125. This will be complemented by extension support services through AGRITEX
and other agricultural arms.

Commodity Associations

126. The Inclusive Government recognises the importance of farmers
organising themselves into self-reliant commodity-based Farmer Associations
which foster interaction, provide fora for research, technical and marketing
support for farmers as well as facilitate the development of own extension
services.

127. The farming community, including the Unions, will be supported in
spearheading a targeted process of developing and deepening the
establishment of specialised Agricultural Commodity Associations.

Commodity Exchange

128. The Inclusive Government will seek to promote the establishment of a
commodity exchange in Zimbabwe. This will ensure that farmers get
competitive prices for their commodities, whilst also facilitating the
mobilisation of funds for the agricultural sector.

Livestock Development

129. Interventions to rebuild the national herd, targeting communal,
resettlement, small and large-scale farmers, spread across all provinces
will be needed.

130. Priority will also be given to rehabilitation of both large and
small-scale dairy farms as well as support for rearing small animal stock,
including poultry and piggery.

131. Animal husbandry training support, particularly for the new farmer,
will benefit improved livestock management. This will have to be
complemented by enhanced capacity of livestock extension service providers,
such as the Veterinary Department.

132. Financial requirements for this programme will cater for dipping
chemicals, equipment, and inputs for production of stock feeds.

Global Perspectives

133. The urgency of the integrated National Programme for Agricultural
Recovery arises from the present threats of widening food imbalances and
famine, particularly in Sub-Saharan Africa as weather patterns change in
response to global warming.

134. These threats should be taken advantage of as opportunity to reorganise
our agricultural sector to inject vibrancy, benefiting also from the firming
prices and expanding global grain and cereal demand, against the background
of development of bio-fuels.

135. The benefits for the domestic maize, wheat or soya-bean farmer are
immense, as production surpluses in the local market are readily absorbed by
the global market.

Mining

136. The mining sector, a major earner of foreign currency, has been
performing below its potential.  Its recovery, taking account of the diverse
mineral resource base, will be underpinned by various interventions over the
coming year.

137. Raising the capacity in mineral production, continuous exploration as
well as beneficiation and value addition of minerals will benefit from joint
venture strategic partners who have the necessary technology and foreign
currency back-up.

138. To ensure full exploitation of mineral resources, The Inclusive
Government is reviewing the framework for mining rights, pricing of minerals
and surrender requirements. The Mines and Minerals Act will also be amended
to facilitate review of surface rentals, discourage hoarding and speculating
in Exclusive Prospecting Orders.

139. There are structural deficiencies in respect of the register of all
known minerals in Zimbabwe and their stock thereof. This is largely due to
the absence of a clear exploration policy and the related issue of
extraction. Quite clearly, there is a legislative deficiency in the above
areas, a situation that has created rampant abuse of our scarce resources.

140. STERP will thus oversee the crafting of an Exploration, Registration
and Extraction Mining Policy which will form the basis for a new
comprehensive mining sector legislation. Under this overall Mining Policy,
there will be separation of exploration from extraction policies and
strategies.

141. Furthermore, The Inclusive Government will explore the establishment of
an institution responsible for exploration issues including collecting and
building a comprehensive database on quantity and quality of the country's
mineral endowment.

Pricing of Minerals

142. A key component of STERP in reviving the mining sector will be to
ensure that international commodity prices are levied and received by mining
houses. In short, the pricing gap in respect of which domestic prices lagged
behind international prices is a thing of the past.

143. Consistent with this policy, no more retention on commodity earnings
will be made by any authority in Zimbabwe. However, as quid pro quo the
Inclusive Government will review upwardly the taxation and royalty
structures in line with international standards.

144. Equally, there will be greater demand made on mining houses on
protecting of the environment. Furthermore, while the STERP will be allowing
flexibility in marketing of minerals, The Inclusive Government is imposing
social development obligations on mining houses.

Marketing of Minerals

145. To enhance value, the marketing of all minerals other than Gold will be
done under the supervision of the Ministry of Mines and Mining Development
together with the Minerals Marketing Corporation of Zimbabwe, a Board
established through an Act of Parliament.

146. In the case of Gold, the same will remain a strategic reserve asset,
whose licensing and marketing will be in terms of the Gold Trade Act.
However international prices will still have to be paid to producers and no
amount will be retained by the Reserve Bank.

147. Similarly, as in the case of other commodities, the Inclusive
Government will review upwardly the taxation and royalty levels and
structures.

148. Special attention will also be given to the small to medium gold
producers.  In this regard, a special facility will be created for the
provision of short term finance and assistance.

149. To the extent that steel is not a mineral but an industrial product,
STERP will take measures to ensure that its marketing thereof is done
exclusively by the producer and not MMCZ.

150. In respect of outstanding amounts owed by the Reserve Bank to mining
houses, these will be assessed and evaluated to establish authenticity and
to ensure that repayments are done by the same within a reasonable time.

Amendment of the Mines & Minerals Act

151. To ensure full exploitation of minerals resources, The Inclusive
Government will expedite the amendment to the Mines and Minerals Act, which
is already before Parliament. The Act seeks to review the framework for
mining rights, with a view of reviewing the mining title system, discourage
hoarding of claims which are not being worked, and reforming the Mining
Affairs Board.

Minerals Value Addition

152. The contribution of mining to the revival of the economy is limited by
the low level of beneficiation and value addition to our mineral resources.

153. Initiatives to increase beneficiation and value addition for all major
minerals including gold, platinum, nickel, copper, coal, coke, and other
various non-ferrous ores and concentrate are being undertaken.

154. This will include penalties for the exportation of raw minerals where
value addition options are readily available.

Precious Metals

155. Presently, virtually all diamonds, emeralds and semi-precious stones
are exported in the raw form, whilst a small percentage of gold is
manufactured into jewellery.

156. Concerted efforts will therefore be made to promote beneficiation and
value addition programmes in the precious metals sector.

157. This process will take advantage of the existing local gold refinery
and mature jewellery industry, which will make it immediately and
commercially feasible to add value to our mineral resources.

158. Platinum producers will be urged to enter into local tolling
arrangements for smelting, converting and base metal refining so that the
country fully benefits from its natural resources.

Base Metals

159. Zimbabwe has the world's second largest chrome reserves. There is also
great potential in expanding ferrochrome production in the country.

160. The Inclusive Government will therefore take advantage of the existing
beneficiation facilities to refine all important base metals which include
chrome, copper, nickel and iron ore.

161. The Lomagundi Copper Refinery will also be resuscitated to ensure
maximum beneficiation of locally produced copper which is currently being
exported in concentrate form. The Refinery will further be utilised as a
toll Refinery for copper concentrates from Zambia, the Democratic Republic
of Congo, Namibia and South Africa.

162. Furthermore, the ban on the exportation of all forms of scrap metal
which has encouraged local value addition of base metals will be maintained.

Industrial Minerals

163. Capacity to benefiaciate industrial minerals currently remains low.
This requires more effort to increase beneficiation capacity in the medium
to long term.

164. In the interim, royalty payment levels on all industrial minerals
currently being exported in raw form will be increased to encourage
exporters to utilise suitable value addition technologies.

Energy Minerals

165. Coal presents the greatest potential for value addition in the energy
sub-sector.

166. In this regard, coal mining companies will be instructed to export
coke, instead of the traditional coking coal. Punitive measures in the form
of increased taxation levels will be imposed for non compliance.

167. Through availing adequate resources for the use of acquired
technologies, the country stands to benefit from increased revenues derived
from the by-products of producing coke which include various solvents, tar,
and with further processes, petrol and diesel.

168. The bulk of locally produced coal will be devoted to local thermal
electricity power generation with the excess power being exported to the
sub-region.

169. Furthermore, projects to exploit coal bed methane resources will be
pursued.

Small Scale Mining Mechanisation

170. The Programme also provides for mechanisation support for small and
medium scale miners with potential to generate substantial mineral exports.

171. The Scheme will be implemented in conjunction with the Mining Industry
Loan Fund to assist miners with loans, access to machinery & equipment and
technical services to boost production.

172. This therefore entails the recapitalisation of the existing Mining
Industry Loan Fund.

173. In this regard, the Ministry of Mines and Mining Development is
overseeing the finalisation of the necessary mechanisation strategies with
the support of the mining industry.

Manufacturing

174. Manufacturing will be the epicenter of any stabilisation programme. In
this regard, the expected outcome of STERP is to ensure that the current
industrial capacity utilisation is increased from the current low levels of
around 10% to over 60% in the next six months.

175. Achieving that has the multiplier effect of dealing with general
economic recovery, unemployment, depressed demand and low income levels as
well as poverty reduction.

176. In order to achieve capacity utilisation target of over 60%, the
Inclusive Government will support the manufacturing sector through the
establishment of an external credit facility for importation of raw
materials, equipment for retooling, among other necessities.

177. The external credit facility will be available to all manufacturing
entities in the country. However, strict criteria for accessing the facility
will be put in place to avoid instances of abuse and misuse.

178. Furthermore, efforts will be made to ensure that the facility is
largely restructured in favour of raw materials and other capital
requirements as opposed to salaries and other administrative costs.

179. Total requirement for the above facility should be in excess of US$1
billion, for an initial twelve-month period, with potential to raise
capacity utilisation from 10% to about 60%.

180. Efforts should be made to ensure that the facility is availed as a
grant or on extremely generous terms given the low capacity for debt
repayment.

Strategically Targeted Industries

181. Over and above this initiative, STERP will prioritise strategically
targeted companies in various sub-sectors, which are key to the whole
economy. These companies are being selected to ensure that 100% capacity is
restored given their strategic importance in the economy.

182. In that regard, The Inclusive Government has identified critical
industrial sub-sectors, and the respective targeted companies with the
potential to invoke supply response to the rest of the other sectors of the
economy.

183. These companies will therefore anchor and support the

necessary overall economic supply response by overcoming the prevailing
industrial output gap that has led to importation of almost everything that
the country has capacity to produce and generate foreign currency.

184. Such targeted companies include those in the food processing,
beverages, textile and ginning, clothing and footwear, fertilizer,
pharmaceuticals, motor industries, packaging, paper printing and publishing,
chemical and petroleum products, non metallic mineral products, among
others.

Strategically Targeted Retailing Companies

185. The current empty shelves in most wholesaling and retail shops located
in both urban and rural areas are totally unacceptable and undermine
confidence in the economy as well as potential capacity of the workers.

186. In this regard, it will be critical that The Inclusive Government
normalizes the supply side of our retail shops. Improved availability of
goods in the shops will also dampen inflationary pressures.

187. Consistent with the above, The Inclusive Government will prioritise and
select strategic entities across the country to benefit from a Restocking
Facility.

Agro-Industry

188. The local agro-input manufacturing industries, central to improved
yields in the agricultural sector, also offer opportunity for increased
value addition to the country's locally available raw materials, benefiting
from adoption of such technologies as fertilizer granulation and blending.

189. In this regard, measures will also be taken under STERP to take
advantage of the availability of such local raw materials as phosphates,
coal bed methane gas, among others, as part of the strategy to boost local
fertilizer production.

190. This will be supported by appropriately determined prices to ensure
viability of companies and sustenance of domestic production.

Investment Opportunities

191. STERP recognises the need to stimulate investment. Therefore it is the
intended objective of increasing investment capacity from 4% of GDP to over
25% of GDP. These increases are meant to underpin sustainable economic
growth and development.

192. Priority for the new investment will be given to the area of technology
to ensure that not only production capacity is enhanced, but also to fast
track the country into a technological and industrial giant. The South East
Asian Model will be embraced to inspire future transformative development
programmes succeeding STERP.

193. The Inclusive Government is, therefore, instituting measures to
guarantee the consistency and predictability of the country's business
environment targeted at both domestic and foreign investors.

Regulatory Environment

194. Creating an efficient regulatory environment is essential for enhancing
a positive supply response.

195. This also entails sufficient devolution of decision making, coupled
with streamlining of processes in key institutions such as Local Authorities
and other public agencies so as to speed up the start up of business and
investment projects.

Toll Manufacturing

196. Toll manufacturing collaborations also offer scope for improved
capacity utilisation, while also strengthening regional trade and
integration within SADC and COMESA.

197. Already, several companies are engaged in toll manufacturing and would
benefit from broader SADC and COMESA support and promotion of these
initiatives.

Small and Medium Enterprises, and Co-operatives

198. Small and medium enterprises and co-operatives are crucial in
employment creation and growth as well as consolidation of indigenous
ownership of resources in the economy. Because of their labour intensity
nature, capital saving capacity, harnessing of local resources, dependence
on fewer imports, flexibility and adaptability, innovativeness and strong
linkages with other sectors of the economy, SMEs become key engines for
economic growth.

199. SMEs also provide practical solutions to challenges such as poverty and
declining household incomes.

200. Key challenges facing SMEs include access to finance, capacity to
conduct research and development, weak business structures, poorly defined
business and regulatory frameworks, marketing constraints as well as
insufficient management of resources.

201. Effective interventions under STERP will include financial support and
capacity building. This will be complemented by promotion of industrial
clusters and development linkages with other established companies.

SME Census & Database

202. In order to support the policy formulation process and provide clarity
on the role and contribution of SMEs to the economic growth and development
of the country, The Inclusive Government will carry out a census of SMEs.
The information from the census will be used to create a database covering a
wide range of issues such as the spread, concentration and numbers of SMEs,
employment, product varieties and all other relevant economic indicators
including their contribution to overall economic growth.

203. The project will be undertaken in collaboration with development
partners and key stakeholders.

Industrial & Marketing Clusters

204. The Inclusive Government will support the development of industrial and
marketing clusters and special zones in order to facilitate coherent
development. These clusters and special zones will assist particularly SMEs
mobilise bank finance, group marketing, bulk sourcing of raw materials,
quality control and access to other business development services.

205. The financial sector will be mobilised to provide financial loans in
order to improve product design and technology, common branding, marketing,
research and development activities.

206. The special zones will be targeted at attracting investment to
specially identified sectors of the economy for enhanced productivity and
growth. The specially designated zones will take account of proximity to
critical amenities such as road, rail & air transport, as well as water
among other facilities. The maintenance of such infrastructure will also be
prioritised.

Development Linkages

207. Relationship between small, medium and large scale enterprises will be
fostered through incentives to enable small firms access mentorship from
large firms. Such linkages will range from supply contracts and other
sub-contracting activities to joint ventures.

208. For purposes of facilitating these linkages, The Inclusive Government
will support the establishment of a Business Links Office, which will offer
advice, information, training and such other business support services.

209. This would go a long way towards supporting investment and growth in
small to medium enterprises.

Recapitalisation of SEDCO

210. The Small Enterprise Development Corporation (SEDCO) will be
recapitalised in order to fully play its role of financing, training and
providing incubation to SMEs.

Tourism

211. In Zimbabwe, tourism played a very significant role in the development
of the national economy taking advantage of its most diversified tourism
resource base. The contribution of the tourism sector to Zimbabwe's GDP
improved immensely from 0.7% in 1980 to 9.8% in 2007.

212. Notwithstanding natural attractions, very limited tourism development
occurred during the past nine years owing to challenges associated with
perceived country risk, lack of working capital, inadequate domestic
services, and deteriorating infrastructure.

Financing

213. As part of STERP, tourism revival will be prioritised through securing
external lines of credit for working capital, rehabilitation of
infrastructure and importation of capital equipment among others.

214. Financing will also benefit from engagement and incentivising
Zimbabweans in the Diaspora to make meaningful investment in the tourism
sector.

Capacitating the National Tourism Organisation

215. The Zimbabwe Tourism Authority (ZTA), responsible for promoting and
developing tourism will be adequately resourced to effectively carry out its
mandate.

Marketing

216. Furthermore, the Inclusive Government will launch an aggressive
marketing campaign covering regional and international markets.

217. In that regard, high level teams will be dispatched to different
countries to reflect on the correct image and potential of the country, as
well as removing the country risk perceptions entrenched in source markets
and consequently lobby for the removal of travel warnings.

218. Such marketing strategies will also include forging of more strategic
alliances with regional and international tour operators and aggressive
marketing of Zimbabwe's premier tourist destinations.

Tourism Product Re-Development

219. The tourism product has deteriorated over the years thereby impacting
negatively on the competitiveness of the destination. The Inclusive
Government's intervention in facilitating tourism product redevelopment is
required as a matter of extreme urgency.

220. The 2009 Budget has already given incentives for investment into the
tourism sector such as exempted duty payments on capital goods used by
registered designated tourist facilities. This also included exemption of
duty on equipment used for expansion, modernisation and renovation of
tourist facilities. A Tourism Revolving Fund will therefore be established
to allow the Tourism Operators to revamp, renew and refurbish their products
and services.

Investment in the Tourism Sector

221. The need for a conducive investment climate is as important for the
tourism sector as it is for all other sectors of the economy. The Ministry
of Tourism and Hospitality Industry Management will intensify its efforts to
promote foreign direct investment in the tourism sector. In this regard, the
1st International Conference on Investment opportunities in the Tourism and
Related Sectors will be held during the 2nd quarter of the year.

Pricing of the Tourism Product

222. The pricing of the tourism product is critical for destination
competitiveness. It is important that the price of tourism products be seen
as contributing positively to the total attractiveness of the destinations.

223. The Inclusive Government through the Zimbabwe Tourism Authority will
continue to monitor prices in the tourism sector so as to keep prices in
line with the total marketing strategy.

224. Related to the issue of pricing is the use of internationally
acceptable modes of payment such as credit cards and travellers' cheques.
These facilities will be reinstated immediately through the financial
sector.

Tourism Infrastructure

225. Incentives to increase air traffic frequency into the country, coupled
with continued access to finance for developing tourism infrastructure will
complement these efforts. This will entail targeted identification of zones
for the accelerated development of tourism infrastructure.

International Air Access

226. Air transport plays a very critical role in tourism development. In
1996, Zimbabwe was served by 45 foreign carriers linking the destination to
more than 100 International source markets. Currently there are 7 carriers
serving the destination. This is attributed to the restrictive and
protective air transport policies that have seen many foreign carriers being
denied rights to land in Zimbabwe.

227. To increase destination access from the major source markets both long
and short haul, the Inclusive Government will introduce more liberal and
less protective air transport policies and offer competitive incentives to
attract foreign airlines in accordance with the Open Skies Policy.

Internal Access

228. Currently access to tourist resorts remains a challenge, with tourists
spending valuable leisure time traveling to reach their intended
destinations. As such the internal access to local destinations by road, air
and rail will be significantly improved.

229. The Inclusive Government will make deliberate efforts to facilitate the
operations of domestic airlines and luxury tourist coach services.

Ports of entry

230. The Inclusive Government will improve the country's ports of entry
(Airports and Border posts) to international standards through reactivating
its plans to establish a National Ports Authority which will develop and
manage our ports of entry, similar to management of airports by the Civil
Aviation Authority of Zimbabwe.

Promotion and Image Building

231. Zimbabwe's image in the major source markets as well as investments and
trade markets requires to be improved. The Inclusive Government will launch
an aggressive marketing campaign - "Visit Zimbabwe Campaign" covering the
Domestic, Regional and International Markets.

232. In this regard high level teams will be dispatched to different
countries to reflect on the correct image and potential of the country, as
well as removing the country risk perceptions entrenched in all markets.

233. The Inclusive Government will engage the different governments that
have issued travel warnings against Zimbabwe to have them removed.

2010 Soccer World Cup

234. The 2010 World Cup to be hosted by South Africa avails an opportunity
for domestic companies to take advantage of its spill-off effects, hence the
need to intensify programmes to promote tourism.

235. In this regard, implementation of the National 2010 Strategy crafted by
Government will be expedited.

Construction

236. Developments in the construction industry are an important indicative
barometer of economic activity and business confidence.

237. Experiences worldwide recognise its down stream inter-linkages with
other industries as critical to jump starting activity in other areas,
including job creation.

238. However, the sector has suffered from challenges ranging from rising
operational costs, skills flight, relocation of construction to neighbouring
countries, among others.

239. In order to resuscitate the construction activity in the country,
construction companies will also benefit from the external credit facility
being organised by The Inclusive Government. This will ensure financing for
retooling equipping of the industry.

Housing

240. The provision of national housing is a critical imperator of any
Government. Although the housing programme is an on going long term process,
STERP will ensure that priority is given to the issue of national housing.

241. In this regard, the enhancement and evaluation and improvement of the
current national housing policy will be carried out during STERP. The review
of the national housing policy will guarantee transfer of significant
portions of land acquired under the land reform programme by local
authorities for housing.

242. With a supply of at least 500 to a million hectares of fresh urban land
provided by the State for urban housing, insurance and pension funds, local
authorities and public utilities have a mandatory role to mobilise resources
for such a Programme.

243. Furthermore, priority will be given to cooperatives and associations to
acquire land for their members. The building societies that had eventually
collapsed as a result of hyper inflation and fall in value of the local
currency, should now take advantage of the use of hard currencies to
re-capitalise themselves and be able to lend in foreign currency.

244. Priority will also be given to serving of acquired land through
combined efforts of The Inclusive Government, local authorities and private
developers.

CROSS CUTTING ISSUES

Engagement of the International Community

245. Undertaking all the above Programme initiatives requires significant
financial and technical support from cooperating partners.

246. Hence, the engagement of both bilateral and multilateral international
creditors remains key to resolving the country's outstanding external debt
obligations, necessary for meaningful attraction of foreign direct
investment and unlocking vital trade finance.

247. A multi-pronged approach to engage the international community will
focus on the following deliverables:

 Unlocking critically needed balance of payments financing;

 Foreign debt rescheduling and renegotiation; and

 Clearance of outstanding arrears.

248. The re-engagement of the international community is expected to
immediately unlock much needed foreign currency to meet critical imports of
fuel, power, medicine and industrial and agricultural inputs.

249. In addition, this opens up investment opportunities with other
development co-operating partners, quickening the economy's recovery as
business ties with the rest of the world normalise and strengthen.

Bilateral Investments Protection and Promotion Agreements (BIPPAs)

250. The Inclusive Government is also committed to adhering to its bilateral
and international obligations. In this regard, it will uphold its
commitments to investors, which include ensuring the protection and
honouring of foreign investments covered by Bilateral Investments Protection
and Promotion Agreements (BIPPAs).

251. Besides adherence to BIPPAs, STERP will also ensure observance of the
rule of law, the country's constitution and other laws of the country.

The Diaspora

252. Whilst STERP will prioritise foreign direct investment in Zimbabwe,
special attention will be given to investments by Zimbabweans in the
Diaspora. The Inclusive Government recognises the massive resources
financially and intellectually that this group of people can offer to
Zimbabwe.

253. All efforts will therefore be made to target this group and create
concessionary and attractive opportunities for their participation in the
development of the economy.

254. Potential benefits to the country include improved inflows of
remittances, access to technology and markets through networks established
abroad.

Pricing of Goods and Services

255. Following the import liberalisation policy, the country is witnessing
some benefits in improved supply of goods and services.

256. Prices in foreign exchange which were initially far above import parity
levels, reflecting shortages and monopolistic behaviour, have now started to
stabilise and in some cases gravitating towards import parity levels. This
trend reflects improvement in stocks as well as competition.

257. In order to take advantage of these positive developments, The
Inclusive Government has already decontrolled the price of goods and
services.

258. The role of the National Incomes and Pricing Commission will however be
strengthened in order to ensure that domestic prices in foreign currencies
are benchmarked to reflect those obtaining in the region. This is consistent
with its new mandate of monitoring price trends obtaining in the sub-region
and beyond thereby guiding producers and retailers as well as advising The
Inclusive Government on import parity based pricing.

259. The decontrolling of prices is not an attack on the poor and the
vulnerable groups, as all concerned will be taken care of under the Social
Protection Programme above. In short, whatever direct subsidies that have
been removed are now simply being channeled to the more focused social
protection programme which has vertical benefits as opposed to horizontal
application.

260. Further, the business sector itself must avoid inflationary tendencies
created by lack of confidence which has no relation to the market. More
importantly, there must be paradigm shift that recognises the higher value
and stability of the new multiple currencies that are now being used. In
short the business community must de-link its mindset from the
hyper-inflationary traits that existed before 29 January 2009.

261. The same paradigm shift must occur in those that are running
parastatals and public utilities, whilst parastatals and other utility
providers are obliged to charge market tariffs, the same however, must
indeed be market based and not a product of a hyperinflationary mindset.

262. To the extent that the South Africa Rand is the proposed currency of
reference within the context of the multiple currency regime that has been
adopted by STERP, comparative tables and figures will be produced based on
similar and equivalent South African goods and products.

Research, Science and Technology

263. Technology is the critical engine for the transformation of Zimbabwe
from a developing country to a modern industrial state. Therefore, it is
critical for Zimbabwe to keep abreast with global technology developments
and also invest in futuristic technology.

264. This will enable our industries to integrate technologically with the
rest of the world.

265. The Inclusive Government will, therefore, through the Ministry
responsible for promotion and development of science and technology, speed
up the implementation of the Science and Technology Policy, through
allocation of adequate resources.

266. Furthermore, the strategy to promote information and communication
technology will be strengthened to cover all the public sectors including
educational institutions.

Regional Integration

267. Zimbabwe will actively participate in regional and continental
integration arrangements in order to maximise gains for the economy.

268. Through its participation in regional integration arrangements in SADC
and COMESA, the country will align its production and trading structures,
taking advantage of regional policy instruments meant to achieve a single
customs union.

269. These include duty free trade amongst member countries, common customs
valuation methods and a common level of external tariff among others.

270. In that regard, Zimbabwe will prepare itself by enhancing the
competitiveness of its industries, deepening the country's industrial base
and improving infrastructure necessary to supporting its industry as well as
investment in technology which enhances productivity.

271. At international level, the country will pursue together with its
regional partners, trade negotiations within the context of the Economic
Partnership Agreements (EPAs) with the European Union on one hand and the
aftermath of the Word Trade Organisation (Doha Round) breakdown, among
others.

Environment

272. Support for sustainable and best practices in the utilisation of
Zimbabwe's natural resource endowment is an integral part of STERP.

273. The rampant cutting down of trees especially in the newly resettled
areas, and the proliferation of river bed and alluvial gold panning is
inconsistent with sustainable natural resource exploitation.

274. Extensive use of chemicals and wide spread dumping of toxic waste into
rivers have also contaminated water sources.

275. Addressing the challenge of the resultant environmental degradation
will require urgent steps to combat irresponsible behaviour by some sections
of the community, unsustainable grazing practices and lack of alternative
energy sources in the rural areas.

276. Central to this will be the institution of local community based
monitoring of adherence to conservation best practices. This will support
such local initiatives as reclamation of gullies and pits left by gold
panners through public works programmes.

277. In addition, education and awareness campaigns will be launched whilst
stiffer penalties will be enforced on offenders of regulations and laws
relating to the protection of resource utilisation and the environment.

278. Programmes operating along the CAMPFIRE approach, to the benefit and
empowerment of local communities, will be promoted to ensure proper and
sustainable management of local resources.

279. To reduce the rampant cutting down of trees especially in new resettled
areas, the Ministry together with the Forestry Commission and the
Environmental Management Agency (EMA) will need to increase its presents in
those areas and facilitate the formation of intensive Conservation
Committees. The tobacco Wood Plantation Programme will need to be expanded.
The Ministry will work closely with the Ministry of Energy and Power
development to introduce alternative sources of energy for rural population
including use of energy savings stoves, biogas, solar and wind.

280. Illegal gold panning continues to cause serious land degradation.
Efforts will be intensified together with the police to discourage the
menace. Any mining activity including small-scale mining will be subjected
to environmental Impact Assessment and environmental Monitoring.

281. Veld Fires have continued to destroy our natural resources as well as
claiming human lives. Grazing for livestock and wildlife has been destroyed
through uncontrolled Veld fires. The Ministry will intensify awareness
campaign through implementation of the National Fire Strategy against Veld
fires as well as enforcing to establishment of fireguards by all farmers.
Enforcement and stiffer sentences will be introduced for those found guilty
of this offence. Local Fire Committees will be trained and resourced to curb
wild fires.

282. Illegal dumping of waste and littering will be controlled through
awareness and enforcement. The Ministry will work together with city and
town authorities, the private sector and NGOs to promote sound waste
management and anti-littering.

283. Sound chemical management and movement and disposal of hazardous waste
will be strictly enforced. All border posts will be monitored for the
illegal movement and/ or transit of hazardous water. Recycling, re-use and
reduction of waste will be promoted to reduce waste disposal and dumpsites
will be properly designed and cited to protect environmental pollution,

284. To reduce poaching of wildlife, the capacity of the Parks and Wildlife
Management Authority in anti-poaching will be strengthened. The
implementation of the Wildlife Based Land Reform and Forest Based Land
Reform Policies will be speeded up to ensure sustainable utilisation of our
natural resources.

285. To ensure the provision of adequate wood and timber products harvesting
of plantation forests will be carried out in a sustainable manner and
planning of new trees will be encouraged. Illegal settlement of plantation
areas will be addressed to ensure an adequate supply of timber both for
local consumption and for export.

286. Emphasis will also be placed on local empowerment to promote
self-monitoring and conservation best practice. Local initiatives on gully
reclamation; rehabilitation of pits caused by illegal gold panning will be
supported under the public works programme.

Brain Drain

287. Central to driving Zimbabwe's economic recovery across the various
sectors will be the availability of a critical mass of human resource
skills, in view of the massive brain drain experienced over the past decade.

288. Hence, measures targeted at stemming further brain drain, attracting
lost critical skills, as well as tapping into the skills base of
non-resident nationals, will be a critical component of this Programme.

289. It is estimated that over 3 million Zimbabwean nationals, most of them
with essential and valuable skills or professional qualifications are
working in other countries within Africa and beyond.

290. The Inclusive Government, in cooperation with other development
partners will, therefore, mount a targeted campaign complemented by an
incentive structure to induce skilled non-resident nationals to return and
serve their country.

291. Specific targeted strategic professionals include those in medicine,
engineers, university lecturers and science teachers, financial and ICT
experts, among others.

292. The campaign strategy will be supported by programmes inclusive of
incentives, targeted at stemming further skills loss as well as tapping into
the skills base of non resident nationals.

Indigenisation and Empowerment

293. The successful implementation of this Programme will be incomplete in
the absence of greater participation of the indigenous people in the
ownership and control of the productive assets of the economy and the
removal of barriers and limitations that inhibit the people from fully
utilising their potential in raising their living standards and in
contributing towards national economic development.

294. This will entail an active process that encompasses the progressive
transformation of the economy through the creation of further opportunities
for indigenous Zimbabweans.

295. This Programme will stress an empowerment process that is associated
with growth and enterprise development as opposed to mere redistribution of
existing wealth.

296. The Inclusive Government recognises the role of technology transfer and
access to foreign exchange in any successful promotion of income and large
employment generating investment programmes. In this regard, flexibility
will guide the application of the legislation limiting foreign investment
participation in domestic investment.

297. Hence, where there is significant injection of foreign capital, The
Inclusive Government will allow such investors majority ownership in local
investment projects and initiatives as provided for under section (5) of the
Indigenous and economic Empowerment Act.

Youth Development

298. The support for empowerment will be complemented by greater
coordination of the country's technical and vocational education training
programmes targeting youth employment creation and income generating
projects.

299. At district level, community based vocational apprenticeship schemes
such as carpentry, metal work, farm management and food processing will be
established.

300. In this regard, the provision of financial support for youth projects
by Government as well as the formal financial institutions will allow the
youth to take advantage of such training and explore their entrepreneurial
potential.

301. Furthermore, to facilitate effective policy and implementation, a Youth
Data Bank will be established to provide dis-aggregated data on youth and
also to compliment the Labour Market and Employment Policy Framework.

MACRO-ECONOMIC REFORMS

Macro-Economic Stabilisation

302. The precondition for success of STERP is the implementation and
execution of a sound macro-economic stabilisation programme.

303. Starting from what is in many respects a clean slate, the following
policy environment will allow the economy progressively to gather momentum:

all enterprises are free to trade in South African Rands, United States
dollars or any other convertible currency;

no licences will be required to trade in foreign currencies;

there will no surrender requirements to the Reserve Bank, neither by
enterprises oriented to the domestic market nor by exporters;

all taxes will be payable in convertible foreign currencies;

de facto the national budget will be a cash budget, that is to say the
amount the nation spends will be determined by tax revenues plus grants from
donors;

there will be no quasi-fiscal expenditures and no printing of money;

there will be a regime of positive real interest rates.

304. This framework will snuff out Zimbabwe dollar-based hyperinflation, but
with the significant downside risk of even greater contraction of economic
activity than Zimbabwe has already experienced. This is because in this
framework, the level of economic activity will be determined by the stock of
foreign money supply in the economy. The stock of foreign money at the start
of 2009 is extremely limited: to increase the GDP to an acceptable level it
is vital that we:

increase export revenues;

maximise inflows of remittances from Zimbabweans living abroad;

receive support from regional and international development partners;

attract foreign portfolio and direct investment.

Inflation

305. It is no longer possible to attempt to measure the Consumer Price Index
(CPI) in Zimbabwe dollar terms, but it will take time to develop CPI series
in foreign currency terms which can be used for comparative purposes.

306. While the global economy is going into recession, and inflation rates
are extremely low or even turning negative in the industrialized countries,
United States dollar prices of many goods in Zimbabwe have been rising,
implying significant United States dollar inflation.

307. This is likely to be a temporary phenomenon. As of the end of February
2009, it is clear that the foreign currency prices of many goods and
services have been set at unrealistically high levels. It is much cheaper
for people to purchase goods in South Africa and Botswana or seek services
such as medical attention in these countries. Competitive pressures will
drive down the foreign currency prices being quoted in Zimbabwe, and this
should allow the new foreign currency-based CPI inflation to moderate to low
levels such as under 10% pa by the end of 2009.

Multiple Currencies with the Rand as Reference Currency

308. As already noted, STERP, responding to the hyper-inflationary
environment, will permit use of multiple currencies for all business
transactions, including stock exchange trading, sale of agricultural
commodities and payment of salaries. All taxes are henceforward to be paid
in foreign currency.

309. While it is important to allow economic actors to use whatever
currencies are convenient for them to transact in, there is need for
Government to define a reference currency. The choice is essentially between
the United State dollar and the Rand.

310. Government has decided that the reference currency should be the Rand.
The reasons for this are partly determined by economic factors as well as
the future intention of SADC to adopt a common currency, which inevitably
will have to be based on the Rand given the dominance of the South African
economy in SADC.

311. The main economic factors are that South Africa is our biggest trading
partner and our most obvious competitive country for assessing prices and
wages. Given the high United States dollar price structure we are starting
with, and the impossibility of restoring competitiveness through currency
devaluation when we are using foreign currencies, it is important that we
link ourselves to a currency that is more proximate to us.

312. It is important to reiterate that nominating the Rand as the reference
currency in no way diminishes Government's commitment to multiple
currencies. It is, however, the first step in anticipating an epoch when we
can resume use of the Zimbabwe dollar but it will be necessary first to
restore the multi-currency economy to a reasonable and sustainable level of
activity.

Exchange Controls

313. In order to remove restrictions on business transactions, Government
deregulated restrictive Exchange Controls, and delegated export
administration and payment authority to banks.

314. Individuals and companies are now free to pay for goods and services
offshore as well as service external debts without prior Exchange Control
approval.

315. Similarly, all applications on income related transactions such as
dividends, profits and capital appreciation proceeds remittances no longer
require prior Exchange Control approval.

Foreign Currency Accounts

316. Consistent with the use of multiple currencies and the need to enhance
exports, corporates and individuals can now operate foreign current accounts
(FCA) with indefinite retention of FCA balances.  Previously, FCA holders
faced a 21 day liquidation requirement.

317. Commercial banks are encouraged to expedite payment mechanisms for the
new monetary environment. Customers with FCAs need to be able to pay for
goods and services with debit cards and should be able to withdraw South
African Rands or United States dollar notes from ATM machines.

External Loans

318. In order to remove bureaucratic hurdles associated with the processing
of loan applications for both domestic and foreign investors, Government
simplified the approval process for external loans, with authority delegated
to banks to process loans of up to US$5 million without prior Treasury and
Reserve Bank External Loans Coordinating Committee (ELCC) approval.

319. The local banking system can now issue foreign exchange loans in
support of productive sectors at rates which take account of risk
assessments by the banks and the cost of capital in international financial
markets.

Financial Sector Viability

320. The financial sector is a key component of the economy in terms of
mobilizing savings for investment. Since 2004, the country's banking sector
has suffered from excess liquidity, speculative activities, burning of
money, and hyperinflation.

321. As a result the sector has witnessed episodes of massive capital
flight, collapsing of financial institutions, negative real interest rates
as well as a number of currency revaluations.

Financial Intermediation

322. The supply side reform being proposed under this Programme depends to a
significant extent on sound functioning of the financial sector that is well
supervised and regulated.

323. Given the liberalisation of the foreign exchange market allowing use of
multiple currencies and the free operation of foreign currency accounts
(FCAs), financial institutions should take advantage of this dispensation to
build confidence and create normalcy in the banking sector.

324. In support of the above, Government through the Reserve Bank will carry
out thorough audits and other regulatory functions to ensure that commission
and omission of the past does not recur.

325. In addition, the use of hard currencies and subsequent return of real
positive interest rates, should allow banking and financial institutions to
mobilise resources for channeling to productive activities.

326. Furthermore, consistent with the global trends, the remuneration levels
of executives will be closely monitored to safeguard depositors and
shareholders' funds from abuses.

Zimbabwe Stock Exchange

327. The Zimbabwe Stock Exchange plays an integral part in mobilizing
resources for the development of the economy. In the face of dramatic price
movements, the Reserve Bank issued a decree which stopped the Zimbabwe Stock
Exchange from trading in 2008. This symbolically, and for all intents and
purposes, terminated the Zimbabwe dollar as a domestic savings base that had
hitherto nurtured institutional saving, household and corporate savings,
which in turn nurtured the Zimbabwe Stock Exchange.

328. The bourse resumed trading on 19 February 2009 through the medium of
multiple foreign currencies. The use multiple currencies on the Zimbabwe
Stock Exchange confirmed the abandonment of the Zimbabwean dollar as a
transacting medium.  However, what was also eliminated in the process was
the fiscal space created in the form of quasi fiscal spending that had
generated macro-economic instability, hyperinflation as well as negative
interest rates, all of which had coalesced into speculative behaviour on the
Stock Exchange itself. In short, the use of multiple currencies on the
Zimbabwe Stock Exchange has dealt with over accumulation of the local
currency.

329. In this context, STERP will, through the Securities Commission,
strengthen regulations and supervision of the Zimbabwe Stock Exchange to
avoid any future omissions and commissions.

Equity Funds

330. Equity funds if properly regulated and administered are a key tool in
mobilizing resources for the private sector. Greater attention will be given
to Equity Funds and a detailed policy and position paper will be unveiled by
the Treasury complementing STERP.

Fiscal Policy

Fiscal Balance

331. The fiscal policy will be dramatically tightened through enforced
matching of expenditures to revenue.

Budget Expenditure Rationalisation

332. The realisation of much reduced inflation will require sacrifice and
enduring much pain as Budget expenditures are realigned to focus more on
capital development and reduced consumption expenditures.

333. This includes doing away with expenditures on subsidies, particularly
in areas where price distortions incapacitate some of our public entities
and parastatals to levels where they are unable to operate without direct
budgetary support.

334. Essential external financial budget support should ensure the
sustainability of the social protection programme.

Revenue Collection

335. With a de facto cash budget system in operation, maximising every
opportunity to increase tax and non-tax revenues will become the priority
focus of fiscal policy.

336. Wherever possible, revenue raising strategies will be designed in
tandem with supply-side policies to increase the level of economic activity
and hence the amount that is eligible for taxation, not through increasing
tax rates. The strategies will also include widening of the tax base and
minimising leakages through reducing incidence of tax avoidance.

337. This will necessitate the introduction of mechanisms to extend revenue
collection into all sectors, including embracing into the tax net
entrepreneurs currently evading tax through increased informalisation of
business activity.

338. This will include the large number of arbitrage, speculative and other
informal, but high-income generating activities which have characterised the
recent business environment in Zimbabwe.

339. The recent relaxation of the import duty regime in support of increased
importation of basic goods which are no longer available in the domestic
market will also be reviewed in line with the support measures to reverse
de-industrialisation, but taking account also of the need to keep wage goods
affordable.

340. Any changes to border taxes will take account of Zimbabwe's obligations
under the various regional bloc trade arrangements.

Extra Budgetary Support

341. Given that expenditures under the 2009 Budget are essentially a
function of revenue inflows, significant additional budgetary support will
be necessary if many of the identified critical social and infrastructural
expenditures not funded from internal fiscal revenue flows are to be
embraced.

342. In this regard, such necessary targeted budget expenditures would be
related to securing of external international financial support as part of
the measures coordinated by SADC to support economic recovery in Zimbabwe.

LABOUR MARKET & NATIONAL EMPLOYMENT POLICY

343. Zimbabwe's past performance demonstrates that employment growth is
closely linked to output growth reflecting that the demand for labour is a
function of output. During periods of output growth, employment grows,
although at a slower pace and like wise when output growth declines,
employment growth also lag behind.

344. Similarly, a development strategy that fully employs a country's human
resources and raises the return to labour - wages is considered a powerful
tool for poverty reduction.

345. Key challenges in the country's labour market are closely linked to the
weak labour absorptive capacity of the economy following the prevailing
economic crisis. There has been a marked rise in unemployment and
informalisation of the economy with the formal sector now accounting for
only 13% of the labour force.

346. This has been compounded by the skills flight, deterioration of the
education and training sectors as well as the impact of the HIV/Aids
pandemic.

347. Major weaknesses in our institutional, legal, policy, financial and
capacity arrangements have also contributed. On the basis of the foregoing,
The Inclusive Government is therefore finalizing the National Employment
Policy Framework which will rationalize the labour administration system to
create unitary decentralised system, re-organise technical and vocational
education and training to make it more demand driven and responsive to the
needs of the economy.

348. Central to the new National Employment Policy Framework, will be the
immediate harmonisation of all labour laws and statutes as well as
strengthening of the Labour Act to comply with the International Labour
Organization (ILO) statutes.

349. The Labour Court will also be empowered as an efficient, expeditious
conciliator and arbitrator of labour disputes.

350. Furthermore, the framework will promote a shared approach to financing
of capacity building through education and training including research by
both public and private sectors, complemented by cooperating partners.

351. Addressing the brain drain and developing strategies that maximise the
developmental potential of Zimbabweans in the diaspora will also be a
cornerstone of the policy framework.

352.  In addition, The Inclusive Government will also promote and ensure
that all workplaces and other organisations and institutions throughout the
country, mainstream HIV and AIDS in all their programmes.

Social Contract

353. The economic reform programme envisages the implementation of
structural measures to enhance the economy's supply response.

354. Ensuring that all stakeholders participate in sharing the costs and
benefits involved in the quest for the recovery of our economy, and
stabilising prices in the liberalised environment, will be critical.

355. This is against the background of the initial overall goods production
supply constraints which will undermine the speedy realisation of the
desired lower inflation levels, especially in the absence of a mutually
shared national vision.

356. The support of business, labour and other stakeholders should culminate
in a Social Contract, which guides the determination and formulation of all
policies in the national interest.

357. Hence, The Inclusive Government will resuscitate the Tripartite
Negotiating Forum (TNF) with a view of reviving the Social Contract.

UTILITIES, AMENITIES AND INFRASTRUCTURE

Public Enterprises

358. Public Enterprises have remained a drain on the fiscus, on account of
losses, lost corporate tax revenue and non-delivery of basic services.

359. These losses have over the past years continued to compromise Budget
capacity to meet other developmental and social expenditures, in health,
education and other essential services.

360. The poor service delivery of such parastatals as ZINWA, NOCZIM and
ZESA, among others, is also negatively undermining the operations of other
industries in agriculture, manufacturing, mining, and tourism.

Audit of Public Enterprises

361. During the duration of the STERP, The Inclusive Government, through the
Ministry of State Enterprises will undertake and evaluate all public
enterprises, with a view of rationalizing their functions as well as other
time-framed reforms.

362. Through this process and guided by cost effectiveness, options for
public enterprises reforms will include recapitalisation, commercialisation,
privatisation and part or outright disposal.

Tariffs of Public Enterprises & Other Government Departments

363. Government, through the 2009 Budget, has already announced measures to
empower these public enterprises and other Government Departments by
allowing them to charge for their services in both local and foreign
currencies.

364. This will be complemented by periodic review of tariffs to economic
levels which allow institutions to cover operational costs, consistent with
the "User Pays" principle.

365. The review of such tariff levels will take cognisance of the need to
support the productive sectors and other consumers without penalising them
through profiteering tendencies.

366. The respective line Ministries will, therefore, be submitting to
Treasury, their proposals on tariffs as well as other measures necessary to
enhance the efficiency of our public enterprises.

367. Where social considerations necessitate subsidies, these will be
planned for in advance for the necessary budgetary provisions.

Capitalisation of Public Enterprises

368. While Government has full ownership and control of public enterprises,
the financial and economic benefits arising from this shareholding have
often been low, owing to under performance of these entities.  Currently,
one of the major challenges compromising efficient service delivery emanates
from their under-capitalisation.

369. Given current budgetary resource constraints, there is scope for
tapping the large potential resource base through selective listing on the
stock exchange as well as targeted direct foreign investor participation on
a joint venture basis.

370. The Framework for the re-capitalisation of such entities as the Cold
Storage Company, ZESA, Air Zimbabwe, ZINWA, National Railways of Zimbabwe
(NRZ), as well as telecommunication companies Tel-One and Net-One, is being
developed. This will also apply to companies in which The Inclusive
Government has significant shareholding, such as Hwange Colliery, SMM
Holdings and the Zimbabwe Iron and Steel Company (ZISCO).

371. The Inclusive Government will also pursue joint ventures with competent
consortia of foreign and local partners to raise financial and technical
resources for investment in expansion, improved efficiency and reliability,
as well as liquidating outstanding and current obligations.

Water

372. Water is a critical raw material in industry and therefore its
provision will be a priority. Substantial amounts will be invested in
rehabilitating old and antiquated water pumps to ensure that industrial
water shortages do not occur. Thus STERP will ensure that local authorities
benefit from the above investment to ensure the necessary recapitalisation.

373. Erratic water supply has also threatened households who are bearing the
brunt of incidences of water borne diseases, exacerbated by overstretched
sewer systems and power cuts which reduce the pumping capacity at various
water works.

374. Hence, the restoration of water management and sewer reticulation back
to the various local authorities will be speeded up.

375. This, as stated above, will be complemented by coordinated financial
support to local authorities for rehabilitation of ageing water
infrastructure, importation of spares and equipment for repairs as well as
treatment chemicals.

376. Critical to STERP is the obligation to ensure that dams and other water
projects, which had remained outstanding for a long time are completed. This
includes Kunzwi, Tokwe Mkosi dams and Mtshabezi pipeline for Bulawayo, among
others.

Borehole Rehabilitation

377. In the rural areas, access to clean water for village communities is
often compromised by broken down boreholes and water supply systems.

378. These have been provided by Government over the years largely through
the District Development Fund and the Rural Capital Development Fund, as
well as by some cooperating partners and NGOs.

379. The Inclusive Government is, therefore, prioritising the rehabilitation
of boreholes throughout the country.

Energy

380. Getting Zimbabwe Moving Again, requires that the country has adequate
and reliable energy supplies at all times. Raising the overall capacity
utilisation in our industries and mines as well as agriculture will require
increased energy consumption,

significantly, necessitating emergency measures in support of maximising on
the existing energy supplies as well as on the strategies over new
alternative sources.

Power

381. Against the background of the SADC regional power deficit, it is
critical that Zimbabwe upgrades its electricity generation and transmission
capacity. Thus the following are critical imperators:

Completion Stage 1 of the Hwange rehabilitation Power Station;

The expansion and increase of capacity at Kariba;

The rehabilitation of the transmission and distribution infrastructure in
Zimbabwe

Securing long term import lines in respect of the country's power deficits.

382. Urgent attention is thus being given to the above priority areas and
all forms of financing arrangements including joint ventures will be
considered.

383. The model partnership between ZESA and NAM Power of Namibia for the
overhaul of Hwange Power Station presents opportunities for replication with
other power utilities in the region.

Liquid Fuels

384. As stated in the 2009 Budget, it is imperative that there be complete
liberalisation and cost effective marketing of liquid fuels.

Fuel Importation

385. This Programme will promote cost effective importation of liquid fuels
by ensuring that all petroleum products are brought into the country by rail
and through the Beira pipe line.

386. In that regard, once normalcy has been restored, restrictive levies
will be charged to fuel importers using the road.

NOCZIM

387. Consistent with the new philosophy of cost recovery by public
enterprises NOCZIM will operate viably without any subsidies from the state.
Hence, as indicated in the 2009 Budget, NOCZIM will be allowed to charge
market prices for its products and recover full procurement costs on its
sales to the prescribed market, i.e. Government and farmers.

Bio Fuels

388. The Inclusive Government will take advantage of the already acquired
state of the art technology for bio-fuels production which will also allow
savings of foreign currency for fuel importation.

389. Bio fuels production potentially has significant downstream benefits to
the economy particularly through improved output in agriculture as it
requires inputs in the form of jatropha, cotton seed, sunflowers, among
other oil seeds. It is important to emphasise, however, that bio fuels do
not displace food production and Zimbabwe's self sustenance in this regard.

390. The Inclusive Government will, therefore, examine the viability of bio
fuels in the context of a comprehensive development framework, and where
viability exists, farmers will be mobilised to participate in bio fuels
feedstock production.

Coal Production

391. The large coal deposits in Zimbabwe offer scope for expansion of
thermal power generation for supply to the region.

392. Against this background, SADC power utilities and other investors would
benefit from participation in the expansion of Hwange 7 and 8 power
stations.

393. The resultant growth in coal production would also benefit coal users
in industry and agriculture.

Alternative Sources of Energy

394. The Inclusive Government is also exploring the development of new and
renewable sources of energy such as hydro-power, wind and solar energy.
Greater use of these environmentally friendly resources will reduce the
current high dependence on energy imports.

395. Coal bed methane is a significant national resource which has to be
exploited. It can be used both as an energy source and as feedstock for
petro-chemicals.

Rural Electrification

396. It remains critical that communities in rural areas enjoy increased
access to electricity in order to empower them in undertaking agricultural
production and other industrial ventures.

397. It is, therefore, essential that under this Programme, rural
electrification be put back on course, taking advantage of the stock of
available materials, such as poles, cables, and other fittings with a view
of completing targeted grids and end use projects.

Local Authorities

398. Local authorities have been hampered in their operations by their lack
of delivery often as a result of leadership capacity constraints. In most
cases, councillors lacked appreciation of the functions and duties on
business of their local authorities.

399. Furthermore, corruption and interference from the Central Government on
day to day management of local authorities coupled with delays in approval
of tariffs, worsened the situation. Where tariff approval was given, they
were sub-economic.

400. As a result service delivery in housing, health, road maintenance,
waste collection, street lighting, among others, has been deteriorating over
the years, imposing increased hardships on the part of residents.

401. The Inclusive Government will, therefore, be reviewing both the Rural
and District Councils and Urban Councils Act with a view of enhancing
greater autonomy, efficiency and effectiveness of these entities.

402. Furthermore, the 2009 Budget has already allowed local authorities to
review rates and fees payable by residents to levels that strengthen Local
Authorities' revenue bases. This coupled with the dispensation associated
with the use of hard currencies, which used to constrain importation of
critical equipment should improve the financing base of local authorities.

403. This flexibility of charging economic tariffs should however be
complemented and matched with quality service delivery. Hence, corruption
and indiscipline in local authorities will not be tolerated.

404. Support towards capacitating local authorities to effectively deliver
services in the areas of refuse collection, maintenance of roads would also
be vital.

405. The above measures will be complemented by improved management,
sub-contracting and introduction of stringent monitoring mechanisms.

Transport

406. STERP also prioritises improved provision of reliable and affordable
public transport in both urban and rural areas as part of Government's
strategy on National Transport Enhancement embracing both public and private
sector initiatives.

Public Transport

407. Utilising the capacity of local bus manufactures complemented by
importation of buses will be central to overcoming the hardships on the
general public as a result of poor public transport.

408. The National Railways inter-city as well as the urban commuter train
services are also being reviewed to improve on the capacity and efficiency
of the existing equipment and infrastructure, with the charging of economic
tariffs complementing provision of public financial resources.

409. This will facilitate improved service provision, procurement of fuel
and spares as well as re equipping projects.

410. The Programme to recover the economy also seeks to deal with the
challenges of reversing the deterioration experienced over the years in the
country's infrastructural base. In many areas, rehabilitation and
maintenance works are urgent and necessary for attracting investment.

411. Given the current resource constraints, The Inclusive Government will
work with cooperating partners to speed up the rehabilitation, maintenance
and upgrading of infrastructure facilities.

412. In this regard, support for major acquisition and procurement of the
requisite equipment and machinery becomes critical.

Cargo Transport

413. In order to improve the cargo transport and its cost effectiveness, the
external credit facility will also be extended to cargo transporters,
complemented by other fiscal incentives such as review of duties.

Air Transport

414. The provision of a modern and efficient air transport system is
essential.  In this regard, it is important to bring back as many air lines
to Zimbabwe as possible.

415. The adoption of an Open Skies Policy (as already outlined in the
section on "Tourism" above), the use of multiple currencies and the new
political environment engendered by the GPA should be a firm starting point
for this.

416. The huge numbers of Zimbabweans in the diaspora, the attractive
investment climate and the peerless tourism facilities should consolidate
the move to bring in many players in our domestic and international routes.
Moreover, the 2010 World Cup, which is around the corner will guarantee
Zimbabwe's position as a major stop over.

417. The increased volumes of players should ensure that the ongoing
upgrading of our domestic airports should be treated with urgency.
Significant resources through alternative forms of funding will thus be
sourced.

418. Increased competition must necessarily force Air Zimbabwe to undergo a
major evaluation and revaluation. Quite clearly, the National Airline needs
serious recapitalization and indeed must consider various refinancing
packages including entering into a joint venture with any of the more
international players.

Infrastructure Rehabilitation

State Infrastructure

419. Government buildings, furniture and equipment are in a state of
unbelievable decay. The Zimbabwean courts for instance, and indeed the
Government offices at Kaguvi are unbefitting and unbecoming. A similar
situation exists in Universities colleges and other State institutions.
Quite clearly, these valuable assets must be rehabilitated and modernised.

Roads

420. In view of the bad state of our road networks, a massive rehabilitation
programme is necessary.

421. This Programme is prioritising the resurfacing and resealing of trunk
and most urban tarred roads and re-gravelling of feeder roads in rural
areas, with a minimum of one motorised grader for each district.

422. Provision of public resources for the rehabilitation and maintenance of
the road network will be complemented by the introduction in the 2009 Budget
of toll gates, coupled with further review of road user fees and levies
under the auspices of the Zimbabwe National Roads Authority (ZINARA).

Railways

423. The challenges facing Zimbabwe's rail network, a hub for the SADC
region transport system, will if not addressed continue to undermine the
smooth flow of regional traffic.

424. These challenges include deteriorating rail track infrastructure,
signaling and telecommunications systems.

425. Interventions in upgrading and rehabilitating the rail network are
needed to improve the smooth flow of traffic in the region.

426. Zimbabwe stands ready to enter into joint venture investment programmes
with both the contiguous rail and other regional financial institutions.

427. Appropriate self financing mechanisms will be put in place to guarantee
loan repayments.

Telecommunications

428. The Inclusive Government aims to implement and foster further
competition in telecommunication services and pave the way for value added
services in the field of international telephone and internet service
provision.

429. The policy thrust is to expand and modernise the sub-sector in order to
enhance business links competitiveness and overall economic development.

430. In this regard, the fixed telephone network and mobile
telecommunication services will be expanded through installation of
additional base stations and other equipment, taking advantage of the
introduction in the 2009 Budget of cost related tariffs in foreign exchange.
The coverage will link urban, rural and tourist resort areas.

431. Broadening of telecommunication services in the rural areas will be
realised through upgrading of existing networks, acquisition of modern
equipment and promotion of infrastructure interconnectivity among
telecommunication players.

432. Existing local capacity for the production of telecommunication
equipment will also be enhanced in order to save on the limited available
foreign currency resources.

433. Consistent with regional and international standards, the
telecommunication sector will be Harmonised. In this regard, a new ICT bill
crafted along the lines of the SADC model will be enacted that ensures
uniformity in licensing and other regulatory requirements.

Public Private Partnerships

434. In order to complement Government efforts, the private sector has a
role in financing infrastructure development.

435. In recognition of this, the private sector is being invited under the
Programme to participate in the provision of infrastructure on a public
private partnership basis.

436. Participating private sector partners will be allowed special
dispensations and privileges in the partnerships towards which they would
have contributed financial resources.

437. Specific areas for possible partnership areas include air and rail
services, power generation, dam construction and the upgrading and
construction of the main national highways.

438. Invitation is also being extended to the private sector for greater
participation in urban housing development projects and infrastructure for
SMEs.

439. The necessary guidelines on Public Private Partnerships to protect the
interest of investors and consumers are already in place to facilitate the
process.

440. These guidelines specify criteria, specialised institutional
arrangements and procedures for the award of contracts, including the
principles and elements of the implementation process of
Build-Operate-Transfer and concession projects.

Institutional Capacity

441. The implementation of a comprehensive economic recovery programme will
of necessity require strengthening of the country's public institutions.

442. However, the acute shortage of human resource skills capacity in the
country constitutes an important obstacle to sustained economic recovery and
growth.

443. In order to address this deficiency, The Inclusive Government will
continue to review the Public Service structures with a view to making them
effective and efficient.

Conditions of Service for Public Servants

444. A compensation package that is sufficient to attract, motivate and
retain the best performing staff members in the Public Service will also be
pursued. This will be complemented by expansion of the public service
housing scheme, broadening motor vehicle loan schemes, as well as improved
educational loan facilities.

445. The Inclusive Government will also introduce a facility targeted at
retaining and attracting specialised/strategic skills so as to capacitate
institutional ability to fully implement national programmes. This will also
allow for payment of expertise premiums on key posts.

446. Furthermore, in order to strengthen the foundation of the governing
process and service delivery, The Inclusive Government will enforce
accountability on the part of civil servants.

Implementation and Monitoring

447. The above measures in themselves remain inadequate for the sustainable
turnaround of this economy.

448. Experience from previous policy pronouncements have demonstrated
serious deficiency in the implementation of agreed policy measures and
Government programmes.

449. As per the Agreement between the Political Parties, the Office of the
Prime Minister shall, through the Council of Ministers, ensure the overall
effective implementation of Government Policies and Plans as approved by
Cabinet.

450. In this regard, the Office of the Prime Minister will utilise and
benefit from the diverse human resource base already existing in the
country, also embracing expertise outside of Government from retired public
servants, business, labour, academia and civil society.

National Economic Council

451. In the implementation of the measures for this Programme to restore
economic stability and growth The Inclusive Government will, as agreed by
the Political Parties, establish a National Economic Council composed of
various economic, research and academic experts.

452. Drawing from the political parties? Agreement, the National Economic
Council will provide informed recommendations to The Inclusive Government on
key policy issues guided by the following Terms of Reference:

Assessing the impact of Government economic policies and programmes to
promote sustainable economic growth;

Tracking the performance of the Zimbabwean economy and the management of
public policy implementation, especially with regards to the implications
for socio-economic development; and

Undertaking necessary policy research as directed and/or requested by
Government.

453. In undertaking the above, the National Economic Council will be
supported by the National Economic Consultative Forum (NECF), as well as
research work of the Zimbabwe Economic Policy Analysis and Research Unit
(ZEPARU).

FUNDING OF STERP

454. The rehabilitation and restoration of Zimbabwe's deteriorating
infrastructure and social services will over time require substantial
resources.  Estimates from sector specialists include estimates of:

AgricultureUS$980 million

Specially Targeted Vulnerable Groups US$100 million

EducationUS$440 million

HealthUS$300 million

Water & Sanitation    US$740 million

Capacitation of Local Authorities  US$240 million

Capacitation of Rural District Councils US$15 million

Support to Industry    US$1 150 million

ElectricityUS$370 - 2 000 million

455. The full rehabilitation of these and other sectors will take many years
and will last beyond STERP, which is an Emergency Recovery Programme.
Priority areas include food, water treatment chemicals, education, health,
employment costs for the public service, basic commodity supply, social
welfare payments, crop inputs, as well as road network rehabilitation.
Detailed technical work has been done to produce a well balanced and
realistic Budget for STERP.

456. This work is an unattached annex to this document and will form the
basis of the financing strategy for STERP whose total resource requirements
are in excess of US$5 billion.

457. The Inclusive Government will ensure that the primary channel and
responsibility of this Programme is the Consolidated Revenue Fund (CRF)
under Treasury. In this regard, resources in the CRF will be augmented by
resources from the disposal of non strategic Government assets and shares in
state owned enterprises.

458. A Programme Implementation Unit will be established in the Ministry of
Finance to ensure transparency and full accountability in the use and
management of resources mobilised for funding STERP.

459. What is immediately clear is that STERP will require substantial
amounts in funding terms which will be well beyond the capacity of the
Inclusive Government. It is, therefore, hoped that bilateral and
multilateral parties will play their part in this process.

460. It is acknowledged and recognised that the investment that the SADC and
the African Union have made in the process leading to the formation of the
Inclusive Government is critical. Going forward, any support from the region
will be welcome, augmented by assistance from international partners.

461. The reintegration of Zimbabwe to the community of nations is essential.
Traditional bilateral and multilateral partners will be fully engaged.  In
this regard, the complementary roles that traditional funding instruments
can play such as debt relief, infrastructural development funds, equity
funds, technical and humanitarian assistance will be welcome.

CONCLUSION

462. At all material times in history, extraordinary burdens and challenges
are placed on a small group of persons. They either baulk or sink and
history buries them. Or alternatively, like gladiators, they rise and
unshackle themselves from the bondage of mediocrity, self pity, personal
differences, cynicism and skepticism and conquer the challenges.

463. The Inclusive Government faces the challenges of collapse and decay and
the poverty and suffering of our people.

464. We either wallow in the wish wash of disempowering party politics or we
choose STERP and make a bold step away from the mundane.

465. Indeed Zimbabweans expect nothing less and should get nothing less.

End - ZimOnline

'Dead Aid: Why Aid Is Not Working and How There Is a Better Way for Africa'

http://online.wsj.com

Book Excerpt.  MARCH 20, 2009

By Dambisa Moyo
Preface
In July 1970, ninety students graduated from the University of Zambia, in
the country's capital, Lusaka. Among them were the university's first black
graduates (including some ten young women), and my parents were two of them.
They were both studying for undergraduate degrees - my father reading
linguistics, and my mother English. They came from different tribes, from
different parts of rural colonial Africa: my father, the son of a miner in
apartheid South Africa; my mother, the daughter of a man who would later
train to be a teacher. My mother did not speak my father's language, and
hence they mainly conversed in English. They met and married while still
students.

 Zambia (formerly known as Northern Rhodesia) had been independent from
British colonial rule for just six years, and the excitement at the prospect
of what amazing things lay ahead was palpable. Although, upon graduation, my
mother had eleven job offers (at the time companies were very eager to
employ black graduates), my father wished to continue his studies. He was
offered a scholarship at the University of California at Los Angeles in the
USA and, very soon afterwards, my parents packed up my sister and me and
decamped to America. Our move was all planned. My parents' goal was for my
father to further his education (later my mother would complete an advanced
degree in Britain), and then return to Africa.
The 1970s were an exciting time to be African. Many of our nations had just
achieved independence, and with that came a deep sense of dignity,
self-respect and hope for the future. My parents lived, worked, and studied
in the USA for eight years and upon my father's Ph.D. graduation, in 1978,
they promptly moved back to Zambia, convinced that their future, and the
futures of their children, lay in their homeland. My parents have never
lived abroad again - remaining steadfastly committed to the view that they
can help their country, their continent (contributing in their own small
ways), to one day become politically and economically great. My mother has
forged a career in banking - starting as the first Zambian woman bank
manager, and rising to be Chairman of one of Zambia's leading banks. My
father has stayed true to academia but has involved himself in broadcasting
and also run an anti-corruption organization.

I spent my formative years in Zambia - primary, secondary, and tertiary
school; ending up studying Chemistry at the same university as my parents
seventeen years earlier. But in July 1990 my studies were interrupted by an
attempted coup against the then President, Kenneth Kaunda. Although it
didn't last long, the disruption was enough to shut the university down and
have the students sent home. This would be the trigger for me to leave
Zambia and, like my father before me, I ended up in the United States on a
scholarship, eager to complete my higher education. And, like both my
parents, I was certain that I would soon return. I spent two years at the
World Bank in Washington DC, two years doing a Master's at Harvard, and
another four years completing a doctorate in Economics at Oxford. While
away, I missed key moments in my country's history - our political move from
one-party state to multi-party democracy in 1991 (it was the first former
British colony in Africa to have its president removed by ballot rather than
bullet), the overhaul of our economy from socialism to capitalism, and the
tragic advent of the HIV-AIDS epidemic.

Although pulled by family and cultural ties in Zambia, every time I looked,
prospects for my personal development appeared to diminish. There seemed to
be fewer and fewer reasons for me to return, and more and more reasons for
me to stay away. I could not help feeling that job opportunities
commensurate with my education and experience lay not at home, but abroad.
Those jobs that did exist at home (of course there were highly paid jobs
available) were in an environment laden with creaking bureaucracy.

My best friend took a different tack. Having reached academic heights at the
best of America's universities, against her better judgement and my warnings
she decided to return home. She has spent the last three years providing
much-needed help in our country's social sector. But now she is ready to
leave Zambia once more. Not because she doesn't love her job, not because
she hasn't helped, but because she, like many other educated Africans who
live abroad but are desperate to return home, feels that her country
continues to flounder in a seemingly never-ending cycle of corruption,
disease, poverty, and aid-dependency. She looks at her situation and asks
herself, what is going wrong here?

To be sure, Africa is not one country. It is a continent; a collection of
over fifty nations with often vastly different histories, with peoples as
disparate as those of North America and south-east Asia, varying lingua
francas, and very divergent cultures and religious beliefs.

As a former French colony with Arab influences and a mainly Muslim
population, Senegal is quite different from Malawi, a former British colony
where Christianity is the dominant religion. And what do lusophone Angola
and Mozambique have in common with Ethiopia, which was never colonized?
(Ethiopia's defeat of the Italians at the Battle of Adowa, in 1896, meant
the country remained, for all intents and purposes, independent until the
Italian invasion of 1935.)

And economically, besides both being commodity exporters, tea-producing
Kenya is structurally quite different from the ex-Belgian colony of the
Democratic Republic of Congo, which remains a large mineral exporter with
more localized pockets of employment. And the health challenges faced by
Ghana (where the prevalence of HIV-AIDS is 2.2 per cent in the population)
are undoubtedly quite different from those faced by Swaziland, where
reputedly whole villages have been wiped out by the ravages of the disease
(prevalence is around 26 per cent of the population - it was almost 40 per
cent in 2003).

But there are, sadly, common ties that bind sub-Saharan African countries
together. Well-publicized are the degree of poverty, the extent of
corruption, the incidence of disease, the dearth of infrastructure, the
erratic (but mainly poor) economic showing, political instability, and the
historical propensity for violent unrest and even civil war. These are
universal themes shared, albeit in varying degrees, across most nations of
the African continent. They are the issues that policymakers and governments
grapple with each and every day in poverty-stricken Chad, war-torn Somalia,
or disease-afflicted Botswana. Whether you are in Zambia, which today has a
population of around 10 million people with seventy-two different dialects,
or in next-door Zimbabwe, where, with roughly the same population, the
indigenous African population can be loosely split into just two large
tribal groupings (Shona and Ndebele), Africa's common challenges are real
and undeniably stark. Fortunes and misfortunes are intertwined. Even where
there are pockets of economic success, it is worth remembering that in the
long term no country in Africa can truly exist as an island of prosperity on
its own.

Excerpted from DEAD AID: Why Aid Is Not Working and How There Is a Better
Way for Africa, by Dambisa Moyo, published this month by Farrar, Straus and
Giroux, LLC. Copyright © 2009 by Dambisa Moyo. All rights reserved.

When a horse gives birth to a fish

http://www.thezimbabwetimes.com/?p=13716

March 20, 2009
Tanonoka Whande

SOMETHING is happening in Zimbabwe. I do not know exactly what it is.

A horse gave birth to a fish. Not only are they both still barely alive;
they are craving for our attention.

I am afraid I don't hear any talk about the corruption of justice. All I
hear are accolades to the offspring born out of different species. I
chillingly see and hear words of comfort coming from the most unlikely
sources.

Last week, a lot of statements were issued from various quarters, including
from the Prime Minister himself. Then the Prime Minister's son chipped in;
showering President Mugabe with words of comfort.

Détente, indeed!

Admittedly, youngsters see the future better than adults. It is my hope,
therefore, that when young Edwin Tsvangirai confessed to seeing Mugabe in a
different light to what most of us know, the young lad saw and smelt better
things for the nation.

"I want to thank his Excellency the President of the Republic of Zimbabwe
for the kind words that changed my understanding of him," said young
Tsvangirai.

This is precisely what the whole nation of Zimbabwe has been waiting for all
these decades.

But some of us still haven't seen it.

We are all craving not only for those kind words that change the people's
understanding of the President but for the accompanying actions, which will
convince all of us, not just a select few, that, indeed, Robert Mugabe has
repented and his actions match his new words.

We are still a marooned nation because even our Prime Minister has not yet
found his footing. He is still busy trying to keep the nation together and
to avoid any possible outbreak of hostilities.

The burden is on Tsvangirai, unfortunately. Mugabe and Zanu-PF still behave
as if they are not party to this coalition government.

Violence continues unchecked while Mugabe delivers endless speeches.

Last week, we were treated to a meaningless show by the so-called service
chiefs. They still believe that if they refuse to salute their Prime
Minister, they are making a statement.

Of what further use are the service chiefs to anyone? Defence Forces
commander Constantine Chiwenga, the Air Force of Zimbabwe's Perrence Shiri,
Police Commissioner General Augustine Chihuri, CIO director, Happyton
Bonyongwe  and Zimbabwe Prison Service's director Paradzayi Zimondi are
holding on to cobwebs.

Their time is long past.

It was a sad affair to see these men, who are fast becoming irrelevant to a
new Zimbabwe, behaving as if they deserve any better treatment or accolades
from the rest of us.

They should have been the first to embrace and promote the new dispensation
because even if they were to stage a coup, the only casualty would be their
own creation, Mugabe. The people of Zimbabwe embarked on the freedom trail
to liberate themselves from these men and their leader a long time ago.

Whether Tsvangirai is there or not, the freedom train will never grind to a
halt. It will only do so when Mugabe and his toy soldiers are off the stage.
If these men have enticing visions of Mugabe holding on to General Peter
Walls, someone near them should pinch them awake.

The service chiefs have shown their shallowness and their lack of
professionalism. They left no doubt in anyone's minds that they are indeed a
cancer that ought to be removed.

They chose, not the nation, which they should be serving, but an individual
to whom there are beholden. They are wasting their time because they, along
with Mugabe, will face justice regardless of what the MDC promises them.

Then we have our so-called war veterans, a proud and esteemed section of our
citizenry, shamelessly corrupted by Mugabe's misrule. They too should come
to their senses and understand what their role is.

And here I am talking about the real war veterans, not the thugs recruited
by Border Gezi and Zanu-PF to terrorise the same people they claim to have
liberated.

They really have to understand that the slavery and oppression from which
they supposedly liberated their nation was much more welcome than the abuse,
cruelty, repression, exploitation and tyranny they helped to install in
Zimbabwe.

The war veterans are complicit in the sham of "One man, one vote" or "The
soil belongs to us", "Nyika ndeyedu, Ilizwe ngelethu".

Zimbabwe is today in pain because of the war veterans. Our votes do not
count any more. Farms continue to be taken for Mugabe, his relatives and his
friends; not even for the real war veterans.

Zanu-PF neglected the war veterans at a time when they needed to make major
physical and psychological adjustments to live and compete in a non-violent
situation.

We should have built Veterans Memorial Hospitals in each province for them.
We should have given them the support they needed to make the transition to
peace.

Instead someone ordered them to become violent and demand money for services
they voluntarily gave to the nation. They got the money and today, our real
war veterans are no better than they were when they returned from Mozambique
and Zambia.

Meanwhile, the phoney ones are sitting pretty.

Because of Mugabe's corruption, instead of evoking pride, patriotism,
admiration and respect, the term war veteran now conjures fear and contempt.
It has been made synonymous with lawlessness, rape, greed and, quite
disturbingly, murder.

Yes, a horse might have given birth to a fish, but for now we are tempted to
believe something positive might come out of it yet.

Unfortunately, Zanu-PF is always actively cancelling any positive moves by
the MDC.

The service chiefs and the war veterans better know that they belong to the
people, not to Zanu-PF or to Mugabe. If they do not realise that, they will
sink, as they have already started to do, into oblivion with Mugabe because
they allowed Mugabe to pit them against their own people.