http://www.theindependent.co.zw/
Friday, 25 November 2011 10:42
Staff
Writers
FINANCE minister Tendai Biti yesterday presented a $4 billion
budget, most
of which will be gobbled up by the government’s huge and
unsustainable wage
bill that will take up more than 60% of the revenues. The
massive imbalance
between recurrent and capital expenditures means there is
less money for
investment or development spending, as most of the revenues
would go towards
salaries and operating expenses.
Significant
wage bill overruns relative to the budget and a large stock of
outstanding
domestic payments arrears accumulated by end of 2010 were the
main sources
of fiscal pressures this year. Government failed to eliminate
the fiscal gap
through the removal of 75 000 ghost workers from the payroll,
reinforcing
controls on employment levels, and reducing low-priority
transfers to
state-owned enterprises. In all budgets since 2009, including
yesterday’s,
government failed to significantly promote non-wage social and
infrastructure expenditure which is essential for sustainable, inclusive
growth.
Biti conceded yesterday the disproportionate situation
between capital and
recurrent expenditures would not help economic recovery
to pull the country
out of the doldrums after a decade of cumulative decline
which resulted in a
meltdown and hyperinflation.
“Turning to
fiscal performance, total expenditures to September 2011
reproduced the
perennial challenge of disproportionate share of recurrent
expenditures at
$1,68 billion, against capital expenditures of US$0,192
billion,” Biti
said.
“Recurrent expenditures continue to be skewed towards
employment costs,
which were originally budgeted at $1,4billion, but are now
projected at
around $1,8billion or 63%of the total budget, following the
salary and wage
review for civil servants effected in July
2011.”
Biti said this would translate into a $400 million expenditure
overrun on
employment costs, comprising the wage bill for the civil service
and
grant-aided institutions, pension entitlements and employer
contributions
for medical aid and National Social Security Authority
contributions.
“The bill for employment costs, which averaged $121
million per month in the
first six months, roseto the current monthlyaverage
of $161 million, against
the 2011 budget provisionof around $113 million,”
he said.
“Consequently, the employment cost outturn to end of
September,at$1,21
billion, exceeded the target by around $193million.The
above situation where
employment costs account for 63%of total expenditure
and net lending,
against a budgeted ratioof 53%, is unsustainable,” Biti
said. “This outcome
has consequentiallycrowded out non-wage expenditures in
areas such
asinfrastructure development and social service
delivery.”
Civil servants are approximately 235 000 representing
1,78% of the country’s
14 million population.
“The implication of this
unsustainable equation is that government is
spending 63% of its budgetary
resources on 1,78% of thepopulation, while the
remaining 98,22% have to
share thebalance of 37%.”
Biti said the reality of our situation was
that there has to be genuine
socialdialogue between government and its
employees and the formation of a
Tripartite Negotiating Forum to craft a
socialcontract that will create “a
win-win situation for
all”.
The minister said further pressure on the budget has been
emanating from
wasteful expenditures, including foreign and domestic travels
by ministers
and other top government officials.
“Similarly,
there has been increasing pressure emanating fromdomestic and
foreign
travel, and other current expenditures,such as medical supplies and
services, interest on debt, rentalsand other service charges,” he
said.
Of the $4 billion, $600 000 million is expected to come from
the sale of
Marangediamonds. Zimbabwe is set to earn in excess of $2 billion
annually in
gross revenues following the Kimberley Process Certification
Scheme’s
decision to allow exports of Marange diamonds this
month.
The Ministry of Education, Sport, Arts and Culture received
the largest
chunk of the budget with a $707,3 million vote, while the
Ministry of Higher
and Tertiary Education got $296,1 million, Health and
Child welfare $345,6
million, Women’s Affairs $10 million, and the
Constitutional Development
fund $10 million.
“Coming up with this
budget was a daunting task given the political
environment, economic
performance and the global economy,” Biti said.
The minister
allocated $10, 5 million to the Ministry of Environment and
Natural Resource
Management, Home Affairs received $308 million, Defence
$318,2 million,
Youth, Indigenisation and Economic Empowerment $48,2
million, Ministry of
Public Service $126,3 million, Energy $49,7 million,
and Water $71,1
million.
“Careful management of the country’s balance of payments
during 2012 will be
necessary, especially against a background of the
anticipated adverse
effects of global economic slowdown on commodity prices,
on export demand as
well as on capital flows,” he said.
Biti said
this, coupled with the country’s limited options for external
revenue
mobilisation in support of financing government development
programmes,
makes it imperative that Zimbabwe’s fiscal stance accommodates
the
rebuilding of fiscal buffers.
http://www.theindependent.co.zw/
Friday, 25 November 2011 10:34
Moses
Matenga
THE Broadcasting Authority of Zimbabwe (Baz) yesterday granted
two
free-to-air licences to Zimpapers and Supa Mandiwanzira’s AB
Communications
in a move widely seen as a consolidation of Zanu PF’s grip on
the airwaves.
Baz chairperson Tafataona Mahoso told journalists in Harare
that Zimpapers’
Talk Radio and Mandiwanzira’s Zi Radio had been granted the
licences ahead
of Hot Media’s Kiss FM and VOX Media’s VOX FM after scoring
the highest
points in the selection process.
But media groups
immediately dismissed the outcome as a farce and an
indication that
government was not sincere in its pledge to open up the
airwaves.
Mahoso,
who does not hide his disdain for the independent media, did not
field any
questions from journalists during the media brief.
“On the basis of
the total points scored by the applicants, AB
Communications and Zimpapers,
having scored the highest number of points in
terms of the objectives of the
(Broadcasting Services) Act in the selection
process, are deemed to be the
winners of the two licences for the provision
of free-to-air national
commercial radio broadcasting services,” Mahoso
said, amid gasps of
disbelief from journalists.
The MDC formations and other political
parties have complained that
Zimpapers is heavily biased toward Zanu
PF.
Mandiwanzira, a former ZBC journalist and former president of the
Affirmative Action Group, has been linked to Zanu PF.
He claimed
that he had turned down an invitation to stand as a Zanu PF
candidate in
Nyanga in the forthcoming elections because he was not
interested in
politics.
He is the biggest shareholder in Zi FM with 70% followed by
Herbert Nkala
(15%), Urban Brew, a South African company (10%) and Molice
Mandinyenya (5%)
making the company 90% Zimbabwean
owned.
Misa-Zimbabwe chairperson Njabulo Ncube said the move was
predictable adding
that the two companies awarded the licences were no
different to ZBC.
“It’s tantamount to applying lipstick to a frog,”
Ncube said. “It was and
still is our belief that as long as Baz is not
reconstituted, Zimbabwe will
not have genuine independent
broadcasters.”
Voluntary Media Council of Zimbabwe director Takura
Zhangazha said as long
as the Broadcasting Services Act was in place, the
airwaves would remain
closed to independent players.
“The process
was not transparent and no one knows how they got to that
(decision),” said
Zhangazha. “Unless and until there is a democratic
broadcasting framework,
there will always be contestations and disputes on
(the) licensing process
and the licensees.”
Mahoso was flanked at the media briefing by
Vimbai Chivaura, his
co-presenter on the pro-Zanu PF programme National
Ethos on ZTV.
http://www.theindependent.co.zw/
Friday, 25 November 2011
10:29
Happiness Zengeni
GOVERNMENT yesterday introduced a raft of
changes to various duty and tax
regimes in order to stimulate local
production capacity on the one hand and
ensure availability of basic
commodities on the other. Presenting the 2012
budget yesterday, Finance
minister Tendai Biti scrapped customs duty on
selected raw materials used in
local manufacturing until such time as local
production of the same improves
in line with economic growth.
Biti suspended the 5% customs duty on
soya meal and crude soya meal. There
is currently a national shortage of
soya, with production at 20 000 tonnes
against a demand of 200 000
tonnes.
The suspension of duty is likely to reduce the price of
products such
Olivine cooking oil, whose manufacturers had resorted to
importing soya oil
and bottling it at a much higher cost.
The
Finance minister introduced a 5% customs duty on wheat flour to enhance
the
viability of the milling industry as well as encourage local production
of
wheat.
He said pre-packed rice, flour and salt would be charged at
between 5-15%
but bulk quantities would not be charged.
Imported fresh
farm produce such as potatoes, tomatoes, onions and shallots,
cabbage,
carrots, peas, beans, mushrooms and spinach would attract a 25%
duty rate,
in order to promote local production.
The duty, would however be
suspended during seasons when local production is
insufficient to meet
demand.
Clothing manufacturers would receive duty rebate on imported raw
materials
for use in the manufacture of clothing, provided that the raw
materials are
not in production locally. This would take effect from January
1, 2012 and
would be extended to manufacturers registered with the National
Employment
Council.
“The clothing industry provides an
opportunity to grow the economy through
the resuscitation of the value chain
in the production of clothing, since it
is a labour- intensive business
requiring relatively little capital,” Biti
said.
The duty rate on
clothing was adjusted to 40% and an additional US$3 on any
extra kg, up from
40% and an additional US$1, 50 per kg.
The minister removed clothing from the
list of items on the travelers’
rebate.
However, clothing and
textiles manufacturers said that the issue was not the
duty per se but that
measures have to be enforced at the borders so that
there is zero tolerance
of smuggling. Biti acknowledged the corruption at
border posts, including
bribery of customs officials, which has led to
revenue
leakages.
Biti also reduced customs duties on imported raw materials
such as PVC
sheeting, PVC-coated sheeting, polyurethane sheeting, reflector
materials,
tea bag paper, copper tubing, foil, waste sulphuric acid, some
vegetable
saps and extracts and some cleaning substances. Duty on
polyethylene
granules and sulphur was also scrapped.
Excise duty
on local cigarettes was increased to US$10 for every 1000 sticks
from US$7,
while imported cigarettes would be levied at 40% plus US$7 per 1
000 sticks
from 40% plus US$5 with effect from December 1.
Biti said that
capacity in the cigarette-manufacturing sector had increased
to 90% in 2011,
with volumes rising to an estimated 1, 8 billion sticks.
However, Biti’s move
was driven by the low price structure of
locally-manufactured cigarettes
compared to prices obtaining in the region,
which provided an opportunity
for illicit cross-border trade.
Biti also added that government is
aiming at discouraging consumption of the
hazardous and addictive product,
at the same time raising revenue to redress
associated social
costs.
BAT has in the past said that the group makes excise gains for
the first 7
months of the year but generally Zimbabwe’s excise potion at 18%
was much
lower than that of South Africa at 37%.
Duty on
galvanised wire, cold rolled steel coils and selected angles of iron
or
non-alloy steel was reduced by half to between 5-10%.
http://www.theindependent.co.zw/
Thursday, 24 November 2011 18:15
Paidamoyo
Muzulu
ESSAR Africa’s US$750 million takeover of Ziscosteel has yet to be
finalised
as three prominent individuals have lodged cases in court laying
claim to
mining assets belonging to Buchwa Iron Mining Company (Bimco) which
should
be transferred to Essar.
Evidence has emerged that the deal sealed
in March was teetering on the
brink of collapse as the trio, with links to
Zanu PF, are claiming ownership
of some of the mining
claims.
Mines minister Obert Mpofu confirmed that the deal
was being bogged down by
legal wrangles but insisted that it would sail
through since the state owned
all minerals in the country.
“There
are three claimants to part of Bimco mineral claims who have
approached the
courts to stop the deal going ahead,” said Mpofu. “As a
ministry, we don’t
recognise them as all minerals are reposed in the state
and no individual
could have sold them the claims legally.”
Mpofu declined to divulge
the names of the litigants in the case saying the
matter was before the
courts.
“I cannot confirm the names of those involved since the case is
before the
courts,” Mpofu said.
However, it has emerged that
three individuals linked to litigation against
Bimco are Defence minister
Emmerson Mnangagwa, MP Edward Chindori-Chininga
and exiled businessman
Mutumwa Mawere.
Sources have revealed that the trio’s claims are
significant enough to force
a renegotiation of the deal or see a complete
collapse of the largest
foreign direct investment in Zimbabwe in the last
decade. The trio are said
to have bought the Bimco claims from Ziscosteel
between 2007 and 2009 when
the company was struggling to pay salaries to its
employees numbering close
to 5 000.
“Mnangagwa and companies
associated with him bought some Ziscosteel
properties, among them Redcliff
Hotel and blocks of iron claims in Chivhu
area, around 2007,” a source said.
“The sale was done as the company tried
to stay afloat during the
hyperinflation era.”
Mawere and Chindori-Chininga are said to be
involved in legal battles to
control the Bimco iron ore claims through a
proxy.
“We have information to the fact that an associate of Mawere
and
Chindori-Chininga is in the courts trying to block the transfer of Bimco
shares to NewZim Minerals, a successor company to Bimco, because he owns
some of the claims,” the sources said.
Mawere said he was not a litigant
or party to any litigation over the Bimco
claims.
“I know the
applicant Rodrick Mumbire who claims ownership of some of the
Bimco claims
which are in a reserved area,” said Mawere. “Mumbire approached
us needing
capital. It was in that respect that I was assisting them. The
dispute is
between a company called Bearable Prospects (Pvt) Ltd whose sole
shareholder
is Roderick Mumbire. Mumbire was granted rights to claims in a
reserved area
in the Mwanesi Range. The claims were granted in his personal
name. He
approached several parties including our company to assist in a
prospecting
programme covering the claim area,” said Mawere.
Chindori-Chininga
expressed shock at being linked to any mineral claims in
the country saying
someone was trying to tarnish his image.
“I have no claims,” said
Chindori-Chininga. “I don’t even own one mineral
claim in this country.
Someone is trying to tarnish my image.”
Mnangagwa was not immediately
available for comment.
Essar director Firdhose Coovadia confirmed on
Tuesday that finalisation of
the deal was now behind schedule as the
government had failed to deliver the
Bimco share
certificates.
“The deadline for the finalisation of the deal was
November 15, 2011 and we
expect to receive what government had spelt out in
their tender documents,”
said Coovadia. “The deal is continuing as we trust
they will deliver. There
is a legal battle between Bimco and an individual.
The legal papers we have
showed that there is some clerical error or sort of
irregularity over some
of the claims. These form a significant and sizeable
piece of land.”
Commerce and Industry minister Welshman Ncube has
admitted that the deal was
now mired in political wrangling as some
quarters, particularly from Zanu
PF, were dragging their feet to finalise
the matter.
http://www.theindependent.co.zw/
Thursday, 24 November 2011
18:11
Chris Muronzi
GOVERNMENT plans to launch a National Trade
Policy (NTP)to promote exports
and industrialisation of the economy through
trade incentives and various
measures. According to adraft policy document
crafted by the Ministry of
Industry seen by the Zimbabwe Independentthis
week, the policy seeksto be a
guiding principle of future agreements between
Zimbabwe and its trading
partners to ensure that the southern African
country can effectively
participate in the regional and international
trading environment.
The trade policy hopes to grow the country’s
exports 10% annually from
US$2,5 billion in 2010 to US$4,5 billion by
2016.
The policy also seeks to promote enhanced value-addition of primary
goods
while complementing the Industrial Development Policy 2011–2015through
restoring the manufacturing sector’s contribution to export earnings from
the current 16% to 50% by 2015.
Government reckons the policy
will help the expansion of Zimbabwean products
into regional markets as part
of a wider regional integration plan.
The policy is designed: “To
give guidance on trade policy instruments such
as tariffs, non-tariff
measures and trade defence mechanisms with the am of
promoting trade,
protecting local industry from unfair trade practices as
well as improving
access by consumers to a wider range of goods and
services.
“Due
to limited disposable incomes for domestic consumption and financial
liquidity challenges coupled with limited and costly access to capital,
internal demand for goods and services in Zimbabwe is expected to remain
low. Accessing regional and international markets will result in industry
benefiting from economies of scale which cannot be obtained because of low
demand and the small size of the internal market.”
Under the
policy, government wants to promote export development and
promotionpackages
that transform Zimbabwe from being an exporter of primary
commodities to a
major exporter of high quality, processed and value-added
goods in line with
the Industrial Development Policy.
Government will also spearhead the
establishment and coordination of
linkages between Small to Medium
Enterprises and well-established corporate
businesses and push for possible
supply contracts, sub-contracting
activities and joint
ventures.
The policy also aims to review the existing export
incentives and modify
them so that they become more effective and relevant
after consultation with
stakeholders.Government also noted that Zimbabwean
companies need funding to
retool and increase production capacity, a
weakness highlighted by Biti in
the 2011 fiscal policy
statement.
Although Zimbabwe belongs to various trade blocks —
Comesa, Sadc, ACP-EU,
Generalised System of Trade Preferences (GSTP) and the
World Trade
Organisation — there has been no sound trade policy, with
imports far
outweighing exports. Zimbabwe’s situation has been worsened by
the
withdrawal of key balance of payments support from multilateral
institutions
such as the International Monetary Fund (IMF) and the World
Bank.
http://www.theindependent.co.zw/
Thursday, 24 November 2011 17:59
Gamma
Mudarikiri
UNITED States ambassador to Zimbabwe Charles Ray on Wednesday
said there was
need to review the country’s land reform programme embarked
on in 2000
because the majority of the population remained landless and
destitute. Ray
was speaking in Bindura where he commissioned the US$2
million Mashonaland
Livelihoods Restoration Programme (MLRP). The MLRP is an
irrigation project
which was funded by the embassy in partnership with the
Africare and Zambuko
Trust. This irrigation project is set to help more than
5 500 vulnerable
small-scale farmers in Bindura and
Guruve.
Immeasurable farmland, he said, lay idle countrywide while
most people
remained landless, hence the need for an immediate review of the
land reform
programme to ensure that the land-hungry majority are catered
for.
Ray said more people should have a fair share of land if the
country was to
meet the human dignity the armed struggle sought to secure.
He said
Zimbabweans needed to think constructively and agree on transparent
and
flexible measures in land administration to increase land
productivity.
“The US and I personally believe that land reform in Zimbabwe
is necessary,”
said Ray. “Far too many Zimbabweans, black, white and
in-between, lack the
opportunity to make the most of their talents, ideas
and ambitions.”
He said the US government was never against the
general objectives of land
reform to economically empower people, but was
against violence and
displacement of people through which the programme was
implemented.
The US government, Ray said, had recognised the need for
the ordinary people
to access land long before the controversial programme,
which resulted in
the majority of the 4 500 white commercial farmers losing
their land, but
had expected it to be done fairly.
Commercial
Farmers Union (CFU) president Charles Taffs concurred with Ray
saying large
tracts of farmland were lying idle in the country, and his
organisation had
engaged the government to correct the irregularities but
this had yielded
little results.
Taffs said the CFU had started training and
mentorship programmes
countrywide in a bid to equip small-scale farmers with
requisite farming
skills. He also urged subsistence farmers to shift to
commercial farming to
increase food production in the
country.
Ray also castigated the Zimbabwean government for failing to
respect
property rights. He said American business leaders had seen
opportunities
created by the economic recovery, but they were concerned with
the security
of their investments.
“As Zimbabwe moves into its
future, its greatest challenge is to show its
own citizens and foreign
investors alike that their claims to property are
safe. Uncertainty in
property rights is a deal breaker,” said Ray.
He stressed that
consistent and clear laws governing property rights were
critical at this
stage. He said the US was not opposed to empowerment and
equitable
distribution of national wealth, but wanted it to be implemented
fairly and
in a transparent manner.
“I hope you will remember that true
empowerment does not come at a neighbour’s
expense,” Ray said. He said
politically-motivated dispossession and
retaliation created conflict rather
than empowerment.
Bindura district administrator Cuthbert Wubaye
hailed the US government
support saying the programme had empowered the
community since 180 community
members had been trained in agro processing
and marketing with optimism that
the number would increase.
http://www.theindependent.co.zw/
Thursday, 24 November 2011 17:53
Brian
Chitemba
THE Zanu PF annual conference is two weeks away and Bulawayo is
slowly
awakening from the deep slumber which has come to characterise the
city over
the years. As preparations for the party’s indaba near completion,
Bulawayo
is abuzz with the host province’s fundraising activities to raise
the US$150
000 set as a target for each province.
Zanu PF is set
to blow US$1,5 million on food and drink during the
conference,which runs
from December 6 to 10, at a time the World Food
Programme has warned that
vulnerable Zimbabweans totaling over one million
faced starvation between
now and the next harvest around March 2012.
Zanu PF bigwigs have been
running back and forth to ensure preparations for
the conference don’t
falter. This has made Bulawayo a hive of activity as
party officials make
frantic efforts to secure accommodation for its 6 000
plus delegates.
Government schools in the city have been ordered to finalise
accommodation
for the party’s ordinary delegates before December 5.
The conference
will be held in the giant Hall 4 situated at the Zimbabwe
International
Trade Fair (ZITF) grounds, the Zanu PF national coordinating
committee led
by party national chairman Simon Khaya Moyo has been
frequenting the venue
to inspect the progress being made.
Zanu PF had chosen the Bulawayo
City Council pavilion, which is located
close to Hall 4, for use as offices
by President Robert Mugabe and his
presidium, but the MDC-T-led council
rejected the request. Although the
council pavilion does not have
outstanding facilities compared to other
private companies’ stands, it had
been chosen due to its proximity to the
conference venue.
Zanu PF
Bulawayo provincial chairman Isaac Dakamela said efforts were
underway to
access “other pavilions to be used as offices by President
Mugabe and other
high ranking officials”.
Party national spokesman Rugare Gumbo
accused the council of sabotage and
labelled the city fathers
arrogant.
This week Hall 4 was still empty. The giant hall is expected to
accommodate
over 6 000 delegates during proceedings.
Dakamela
said top officials would be accommodated at three star hotels and
upmarket
lodges situated in the affluent suburban areas such as Suburbs,
Kumalo,
Famona, Hillside and Ilanda. Ordinary delegates would be squashed at
Hillside Teachers’ College, Bulawayo Polytechnic College, Gifford High
School and Founders High School whose facilities have become virtually
dilapidated over the years. The upmarket hotels and lodges are a sharp
contrast to the colleges and schools where windows are broken and toilet
facilities are in a bad state.
On Wednesday morning, a team of
party officials was at the dilapidated Zanu
PF provincial offices located at
Davies Hall in Makokoba for accreditation
of Bulawayo’s five district
coordinating committee and provincial executive
members who would be
attending the conference. The accreditation team will
visit other provinces
prior to the indaba.
As the conference draws nigh, some provinces and
party stalwarts have
already declared Mugabe’s office a no go
area.
Mines minister Obert Mpofu and his Umguza constituency in
Matabeleland North
was the first to declare support for Mugabe. Matabeleland
North and South,
Mashonaland West, Masvingo and Midlands also sang the same
old tune.
Bulawayo province is expected to hold its provincial conference
this weekend
where Mugabe’s endorsement would dominate
proceedings.
Khaya Moyo this week declared Mugabe’s job sacred until
2014 when the
congress is due because a conference is not elective. Mugabe
and his
presidium were elected at the 2009 congress in
Harare.
“The conference will merely endorse Mugabe as the
presidential candidate and
there are no elections at the conference
according to our constitution,”
said Khaya Moyo.
Zanu PF
conferences have over the years become talk-shops with no binding
resolutions seeing the light of day. At last year’s conference in Mutare,
delegates resolved that elections would be held this year but efforts to
force early polls before implementation of critical reforms flopped due to
pressure from the Sadc-endorsed facilitator President Jacob Zuma of South
Africa and his team.
But political analyst Chamu Mutasa said any
serious Zimbabwean would still
pay attention to the Zanu PF conference
because the party still wielded
power and was determined to stay
relevant.
“The conference can pull surprises because Mugabe may
decide to use the
indaba to settle scores on those who bad-mouthed him as
revealed by the
whistle-blower website WikiLeaks,” Mutasa said.
http://www.theindependent.co.zw/
Thursday, 24 November 2011
16:33
Paul Nyakazeya
THE Bankers Assocation of Zimbabwe (Baz) has
proposed a cocktail of measures
which they believe will restore confidence
in the banking sector and key to
it mobilising deposits for on-lending to
the productive sector. Key among
the proposals Are refunding of the
Corporate Foreign Currency Accounts funds
that the Reserve Bank of Zimbabwe
helped itself to at the height of hyper
inflation and foreign currency
shortages, compensation of the Zimbabwe
dollar account holders who lost
their money when the local currency was
demonetised in February 2009 and
the re-capitalisation of the Deposit
Protection Board.
Baz is
also advocating for the restoration of the role of lender of last
resort by
the Reserve Bank and the taking over of bank statutory reserves by
the
Finance ministry. The ministry should take over the Statutory Reserves
debt
of ±US$70 million owed to Banks by the Reserve Bank of Zimbabwe.
The measures
were submitted to the Finance minister Tendai Biti by Baz
president John
Mushayavanu (pictured) ahead of yesterday’s budget
announcement, with the
hope that some, if not all, could be addressed in the
budget.
Commenting on the proposals at the Zimbabwe Independent’s
Banks and Banking
Survey 2011 last Friday, whose theme was “Banking on
Stability”,
Mushayavanhu said Baz had made recommendations to the Finance
ministry but
treasury seemed to be dragging its feet.
“Companies
and individuals are now short of working capital and are
borrowing at high
interest rates, threatening their viability, yet they were
owed money that
they lost when their FCAs were raided and the Zimdollar
accounts were
frozen,” Mushayavanhu said.
On the statutory reserves issue,
Mushayavanhu said this could be resolved
through the Finance ministry
shouldering the liabilities by issuing Treasury
Bills to banks for what they
are owed. These Treasury Bills, which can be
for a tenor of up to 365 days,
could be allocated from the 2012 budget.
Banks were currently facing
liquidity challenges because these Statutory
Reserves were illiquid, the Baz
president pointed out. The Statutory
Reserves have been outstanding for
over two years and Bank External Auditors
have suggested that these now be
treated as non-performing assets. If this
is implemented, it will result in
huge losses for banks and resultantly
capital reduction. The Treasury Bills
can be used by banks to secure
overnight accommodation from fellow banks and
overnight accommodation from
the RBZ under the lender of last resort
arrangement.
Baz also says government should adopt measures to
facilitate inclusive
banking, formalise the informal sector, and enhance
activity on the
interbank market and enhance
liquidity.
“Liquidity has become a major constraint in banks’ ability
to lend to the
productive sector. The country needs as much as US$15
billion in
medium-term lines of credit to enable industry to re-equip,” said
Baz.
This could be done by government initiating a survey to
establish the extent
and size of the informal sector which the Baz president
had US$3 billion
within it, and how it can be brought back into the formal
sector. This will
also assist government in broadening its revenue base.
Government could also
introduce presumptive tax at the point of licensing
while market stall
holders, small shop owners etc would have to obtain
trading licenses to
operate. It is at that point that they could be
taxed.
Baz said the Deposit Protection Board (DPB) should be
re-capitalised to the
tune of US$12,5 as it is currently undercapitalised
and only managing to pay
staff salaries and administration expenses. Owing
to DPB
undercapitalisation, the Zimbabwean depositor has been left with no
protection at all.
Baz also proposed that the Finance ministry
expedite the finalisation and
drawdown of lines of credit that have been
under discussion for a long time.
To support agriculture, the issue of
99-year leases being made “bankable”
should be finalised as a matter of
urgency, to enable farmers to have
collateral security for their seasonal
borrowings, said Baz.
http://www.theindependent.co.zw/
Thursday, 24 November 2011
16:28
By Linda Tsarwe
FOR a country that is coming from a low base
economically, Zimbabwe is
expected to do so much more given its natural
resources. Potential exists to
achieve growth but over the past few months,
the economy has been
regressing.
There has been very little activity
on the Zimbabwe Stock Exchange (ZSE), as
foreign investors have withdrawn
from the market. Inflation has been on an
upward trend since May this year
and this casts some doubts on whether the
target average inflation rate of
4,5% for 2011 is achievable. In addition,
although government is adamant
that the projected 9,3% economic growth can
be achieved this year, this is
in contrast to the views of institutions such
as the African Development
Bank (ADB) which is estimating growth of just
more than 5%.
For
someone taking a broad view of the economy, a lot of things are not
going
right. Despite the faltering economic recovery, some companies have
continued to achieve profit growth. The weakness in local businesspeople has
been their failure to capitalise on opportunities that arise when the going
gets tough.
Most Zimbabweans have developed a culture of
running away from the fire
rather than putting it out. In the process of
doing so, outsiders have taken
advantage of potentially good business deals.
Food King, which is owned by a
Chinese businessman, was one of the first
food chain stores to stock its
shops after dollarisation, relieving the
country of food shortages with
imported products. Smaller Chinese
businessmen have also been very swift in
their approach, penetrating into
low-income markets by providing a range of
products at affordable prices.
Although there has been an outcry over the
inferior quality of their
products, the Chinese still enjoy satisfactory
traffic in their
stores.
This year, the stock market witnessed one of the biggest
deals since
dollarisation. Tiger Brands, a South African conglomerate,
increased its
stake in Natfoods after acquiring shares from Innscor in a
deal worth about
US$11,7 million. This resulted in Tiger Brands having
almost the same
shareholding as Innscor and making it a major shareholder in
Natfoods along
with Innscor. Most analysts have described such a move as a
show of
confidence by Tiger Brands in Natfoods. For the four months to
October 2011,
Natfoods increased production by 22%. Understanding the
potential in OK,
Investec injected more than US$10 million into the company
over a year ago.
At that point, OK was not well stocked due to working
capital constraints as
well as significant debt obligations. It only took a
year to turn that
business around, which is now very profitable and one of
the most successful
retail chains in the country.
It is, however,
pleasing to note that there seems to be a slow shift in
sentiment among
local businessmen, who have been making headlines for
acquisition of new
businesses. TN Holdings, which is led by Tawanda
Nyambirai, is an example of
a very aggressive group which has been making
waves especially in the
furniture business. Recent reports say that TN
Holdings acquired majority
shareholding in Pelhams through TN Asset
Management.
If true,
then TN Holdings would occupy the lead position in the furniture
business in
the country. Of late, the retail furniture business has been
buoyed by the
reintroduction of credit. Pelhams has been doing very well and
riding on
growth of credit sales which have given significant support to its
revenue.
However, the group’s aggressiveness has become questionable with
recent
press reports alleging that Rufaro Marketing was planning on leasing
24 of
its branches to TN with the intention of converting them to banking
halls.
The number of branches and the location of these branches cast doubt
as to
whether this would be a viable move or not for TN Bank. Its either
Nyambirai
has lost the plot, or is seeing an opportunity that we cannot see!
On
the other hand, it is not entirely pessimism that has made local
investors
inactive. After hyperinflation, many lacked the capacity to
undertake any
significant investments when we dollarised. This is despite
the fact that a
number of them had a lot of bright ideas in place. Banks
also had no
resources to extend for productive purposes and up to this day,
businesses
that are dependent on local money are struggling due to high
finance
charges. Even the government cannot do much to relieve the situation
given
that it is not able to finance its own obligations.
As we see more
foreigners putting their money in what they perceive as good
investments,
government can do a lot more to increase foreign participation.
Manufacturers’ survey indicate that industry captains recommend the revision
of indigenisation regulations. This, of course, is not the first time the
plea has been made, which is a clear sign of the negative effect the
legislation has had on business. It only makes sense for a country that
needs to go forward to court foreign capital if it cannot unlock value in
its resources due to lack of funds.
So much potential exists on
the Zimbabwean market, though there tends to be
a lot of political noise
that downplays its manifestation. However, some
foreigners have been able to
recognise opportunities and realised good deals
out of them. Locals have
been slow to react, partly due to lack of capacity.
It is important for the
government to make investing in Zimbabwe more
certain and secure if we are
to realise value from the country’s potential.
If there is scope for growth
then this means potential exists which can be
explored. With the right
investment policies in place, there is so much more
that Zimbabwe can
achieve.
http://www.theindependent.co.zw/
Thursday, 24 November 2011
18:03
CONSTITUTIONAL Affairs minister Eric Matinenga (EM) has indicated
that he
will not run for political office when elections are held next year
or in
2013. The Zimbabwe Independent’s political reporter Paidamoyo Muzulu
(PM)
caught up with Matinenga to discuss his experience on the political
scene
and tenure in the coalition government.
PM:What pushed you to leave
your lucrative legal career and pursue politics
in an active
manner?
EM: A number of factors, but mainly that I had always
wanted to serve in a
political role when an appropriate time arose.When I
agreed to serve in
2007, I did so because of circumstances beyond my
control. I did not think I
was ready to serve in 2008. I thought I could
serve better in my legal role
than political role. However, the 2007
delimitation created two more
constituencies in Buhera, West and Central in
addition to North and South. I
was then approached because at the time the
party (MDC) was failing to get a
credible candidate in Buhera West. I agreed
to run.
PM:Who approached you?
EM: I come from the same
constituency asPrime Minister Morgan Tsvangirai. He
interested me and asked
why I would not consider running for public office.
The then Manicaland
province organising secretary also drove all the way
from Mutare to Harare
to persuade me to run.
PM: You mentioned the MDC support group, who
was in the support group?
EM: The support group was made up of people
who sympathised with the MDC.
These were men and women who could afford to
give their time and resources
to the advancement of the party’s cause. Some
donated vehicles, others gave
logistical support while some also gave
administrative support to the
nascent party. It’s unfortunate that there is
this culture to think if you
support a partyyou are aiming for political
office. I think we managed to
provide assistance. We still have the group in
Buhera, but renamed Buhera
West Development Association that meets the first
Thursday of every month. I
received support from across the
country.
PM: What are your thoughts on canvassing support for the MDC
in rural
constituencies, perceived Zanu PF’s strongholds?
EM: As
MDC we should go out and establish relationships with the traditional
leaders. In Buhera I have met over 95% of the chiefs, headman and kraal
heads in their homes. Creating these relationships guarantees support as
people begin to understand your objectives at a personal
level.
PM: You once spent nearly a month in prison after the 2008
harmonised
elections on public violence charges? What are your feelings
about that
period?
EM: Yes, I spent 30 days in detention at
different centres in Buhera,
Mutare, Rusape and Goromonzi. My worst fear was
when I was taken by the
fraud squad to Goromonzi despite that I faced no
fraud charges. I knew
Goromonzi was notorious for its torturing reputation.
Most of the junior
officers were very civil and even gave me their mobile
phones to contact my
family. I was relieved when I was put in the normal
cells because I knew the
torture cells are at the further
end.
PM: The decision to withdraw from the presidential run-off was
made when you
were detained at Rusape Prison. What impact did that decision
have on you?
EM: The decision to withdraw was taken when I was in
prison. Everybody in
the prison was taken aback by the decision. We thought
we were going to win
the election and (President) Robert Mugabe was not
going to recover from the
earlier loss suffered in March.
PM:
After the lengthy GPA negotiations, Tsvangirai nominated you for a
ministerial position. Did you anticipate the appointment?
EM: I
did not know I would be appointed to a ministerial position. I had to
ask my
wife first before I accepted. After getting my wife’s support I
accepted to
serve.
PM: The coalition government is a product of the GPA. Do you
think this
arrangement was perfect?
EM: I was not particularly
happy with the overall terms of the GPA. However,
I believed if everyone was
genuine, the arrangement could be made to work.
PM: Did you contribute in the
GPA negotiations?
EM: Contrary to widely held position, I had zero
input in the GPA
negotiations. I only read and saw the final document. I was
not involved
even behind the scenes.
PM: What were your
expectations when the coalition government was sworn in?
EM: I think
I was a bit naïve. To me politics was about services to the
people and I
thought everybody wanted to move from the past into the future
and build a
better Zimbabwe.My role legally was limited and even
non-existent. I didn’t
realise how some look at politics in terms of power
and control. Then I
realised I was naïve.
PM: What are your thoughts on government and
governance?
EM: Zanu PF controls arms of power in the main. MDC is in
the service
ministries. When Zanu PF negotiated for these ministries, their
attitude was
that they were there to regroup and regain what they had lost.
In terms of
governance, Zanu PF certainly went in to regain power and
control.
PM: Are MDC members guilty of the same charge of seeking
power and control?
EM: I think sadly yes. Some want power and
control, but I went in with a
different attitude since I had set myself a
target to do my term only and
therefore I felt it not necessary to contest
any position in the structures.
I am saddened by the perspective among my
colleagues that I was an aloof
character.
PM: What are your
thoughts on violence in the MDC, particularly when you
were approaching the
Bulawayo congress?
EM: I was shocked at what I witnessed of that
process. In Buhera, like some
of the districts, there was chaos, ballot
papers were torn and thrown
around. Unprintable words were said. There was
mayhem. I didn’t believe that
as the MDC we could sink that low and the
election was aborted. On five
subsequent occasions the district elections
were violently disrupted. I was
saddened and still saddened by that
experience.
PM: Do you think this was caused by factionalism in the
party?
EM: As an ordinary member I got disappointed that this could
be happening to
our party. I have never subscribed to the concept of
belonging to a faction.
The reality is that there are those factions. I have
asked colleagues not to
ascribe a faction for me. On this issue of violence,
I cannot be seen to
take kindly to people seen propagating violence. I am
not just in that
group. If I observe that you have that propensity I just
keep away from you.
It’s an issue of principle. One thing dear to me is
principle. If I had not
set out a target that I would serve one term only
and give up, I thought I
was making a big statement by that action and
encourage others even those
outside (the) MDC that power can be relinquished
voluntarily.
PM: Did you inform Tsvangirai about the violence and
what was his response?
EM: I briefed him and he expressed outrage. I
met him subsequently and he
always said he would set up a body to look into
this. I am hoping that this
body would carry a full investigation into the
matter. The MDC can become
stronger if it addresses this issue. If I was in
a position of authority, I
would have addressed this matter immediately, but
people work differently. I
hope the way he is tackling the issue would bear
positive results.
PM: How have you managed to infuse your
philosophy of non-violent politics
in Buhera?
EM: In Buhera West,
we do not do those slogans which promote violence like
the one that says
“varovereipasi”(strike them to the ground). We should
never ever copy Zanu P
F’s bad ways. Zanu PF thrives on violence. When you
do that slogan, you are
not different. We knew we had to show that we are
different.
PM:
Was your stance not to seek re-election forced on you or the
circumstances
in your constituency dictated that?
EM: Nobody pushed me out. If
there was somebody who did that, I am not aware
and so help me God. I had
participated in the process to find my successor.
Having said that, I should
say we, however, had not agreed on the timing of
the announcement. I think
John Makumbe is electable. He can give back to the
community. I am actually
relieved.
PM: Do you think that the cabinet is working as a unit and
pulling in one
direction?
EM: Ministers are addressing issues on
partisan lines. When we debate issues
they simply go back to their political
trenches. We are unlike Kenya. They
have shown a desire to move forward and
make a complete break with the past.
I don’t see this in Zimbabwe and
cabinet as a collective. This is a huge
disappointment. I simply don’t think
we are there yet. I don’t think Zanu PF
wants to make a clean break with the
past. Zanu PF positions on political
issues are rigid. We spend just too
much time negotiating these issues. For
instance, amendments to the
Electoral Bill and the Human Rights Bill have
not been able to move forward
in the manner we should because people look
backwards too
much.
PM: Having cited the Kenyan example, are you happy with the
judiciary
reforms in this country?
EM: In Kenya, the Chief
Justice retired because they were moving into a new
era. Various people
holding influential posts accepted that they had to move
so that others
could takeover.I believe the same should happen here.
However, it should not
be done to be retributive.The judiciary interests me
a lot. Kenya put a law
that every judiciary officer had to be reappraised. I
wish the same could be
done in this country. I know this may remain a wish.
PM: Finally,
where to after the next elections?
EM: I will have to re-apply to be
admitted to the Advocate Chambers. My
office and library are still in place
and I hope I will pick up from where I
left off. This would also give me the
opportunity to get back to the MDC
support group and work behind the
scenes.
http://www.theindependent.co.zw/
Thursday, 24 November 2011 17:52
By
Charlayne Hunter-Gault and Trevor Ncube
TUNISIA, the source and
inspiration of the Arab Spring, witnessed a
significant milestone in the
growth of the African Media Initiative (AMI)
and the maturity of African
media last week. When we chose Tunis as the
fourth venue for our flagship
programme, the African Media Leaders Forum
(AMLF), it was with the clear
intention of positively exploiting their
revolution to enhance our programme
of creating a revolution in the
management of African media. Social media
played a significant role in the
extraordinary developments that launched
the Arab Spring, and it was with
the idea of exploring the implications of
social media for Africa that we
titled our annual gathering: Empowering
Citizens Through Social Media and
Technology Adaptation: What Future For
Traditional Media?
As our CEO, Amadou Mahtar Ba said: “Our meeting in
Tunis was a way of paying
tribute to ordinary citizens whose courage and
hunger to have a say in how
they are governed and by whom unleashed a
revolution to restore justice and
accountability. And that is at the core of
media’s responsibility: to ensure
citizens have the kind of information they
need to achieve those ends.”
To be sure, revolutions in the past have
happened without social or even
traditional media. And, no doubt in time,
Tunisians and the citizens of the
other countries of the Arab Spring would
have eventually thrown off the yoke
of oppression. As the American civil
rights martyr, Martin Luther King, Jr
often said “No lie can live
forever”.
But there is no question that social media accelerated the
Arab uprisings
and in most cases, limited the human toll that sometimes
accompanies
revolutions, as we are seeing, alas, in Syria. But that,
thankfully, is the
exception.
Since our last AMLF meeting in
Cameroon, which concentrated on helping
African media owners develop more
effective business models, we have
concentrated on concrete projects that
would take AMLF closer to the goal of
developing a media sector that would
help citizens affect social, economic
and political change, not least
holding their leaders accountable. Social
media has become key in realising
those goals. So we held workshops that
gave experts time to explore the
possibilities of the new technologies. And
the Tunis AMLF declaration
emphasised the need to continue focusing on
improving professionalism,
management, content and timeliness of reporting
by harnessing the strengths
of media technology.
The declaration acknowledges that “deficits in
democracy and governance are
inimical to the growth of Africa’s media
sector”. But the body applauded and
endorsed AMI’s core principles of ethics
and principled leadership. Our plan
now is to get media associations around
the continent to endorse the
principles that promote ethics and best
practice now being circulated among
them. Already the Tanzania Media Owners
Association has endorsed these
principles.
What encourages our
efforts to strengthen African media is that we are
clearly growing from
strength to strength. From an attendance of 50 at our
first meeting in
Dakar, Senegal four years ago, we have grown to a record
350 from 48 African
countries at our Tunis meeting.
We are committed to building on the
solid foundation of action and
innovation we have laid. And we intend to see
that the ideas that drove the
Arab Spring also create the kind of revolution
in African media that will
truly empower Africa’s people, giving them the
freedom, justice, prosperity
and equality they so richly
deserve.
Hunter-Gault and Ncube co-chair the African Media
Initiative.
http://www.theindependent.co.zw/
Thursday, 24 November 2011
17:47
ZANU PF has “scoffed” at attempts by the MDC-T -led Bulawayo City
Council to
“sabotage” its 12th Annual National People’s Conference scheduled
for
Bulawayo early next month, the Herald reported on Tuesday. The city
council
has reportedly “hatched a plan” to block the party from using its
pavilion
at the Zimbabwe International Trade Fair grounds, which are the
venue for
the conference.
Zanu PF information and publicity
secretary, Rugare Gumbo, said his party
was not worried about such
“arrogance”.
He said the party received resounding support from many
organisations to use
their facilities at ZITF.
“The Bulawayo City Council
has only one pavilion office from the many that
are here. When the
provincial party leaders approached them to use their
facilities they
refused,” said Gumbo.
“It is their right to refuse or give us the
permission to use their offices.
That is not an issue to us. What matters is
that we have already got all the
offices we wanted from other
organisations.”
So if it is their right to refuse or give them the
permission to use their
offices where is the sabotage then?
After being
used to having their way with facilities –– sometimes without
paying –– they
find any refusal of their demands as “arrogance”.
It’s
understandable why they wouldn’t want to offer their facilities to the
revolutionary party. Who can forget how Zanu PF delegates, among them
members of the central committee who attended the 2004 congress, “liberated”
bed linen and towels from the hotels where they were staying.
Also
annoyed by the behaviour of some of the delegates were groundsmen at
the
Harare Sheraton and Harare International Conference Centre, the venue of
the
congress.
According to the Standard, during the course of the
congress, more than 9
000 delegates were being served food from tents
pitched in the hotel
grounds. However, some of the delegates used trees and
bushes in the hotel
grounds to relieve themselves. Although makeshift
toilets were provided,
they soon became dirty because of the heavy rains
which fell, forcing the
delegates to resort to the bushes in the grounds.
Four women, in the full
glare of male delegates, were seen relieving
themselves behind some bushes
at one point, the Standard
reports.
Meanwhile, Zanu PF chairman Simon Khaya Moyo urged party
youths in Bulawayo
to clean all graffiti on the walls and pavements before
the conference kicks
off.
He said it was embarrassing that the
party youths were not doing anything to
remove graffiti that denigrated
President Mugabe and the party. Khaya Moyo
said Bulawayo province should
ensure that all graffiti was removed by the
time the conference
starts.
Good luck with that one Cde Moyo.
While we
admire Bona Mugabe’s award of a degree in accountancy, we are
unimpressed by
the praise-singing that went on back home.
The Herald reported last Friday
that Chegutu East constituency students and
youths congratulated Bona for
graduating with a Bachelor of Business
Administration (Honours)
Administration in Accountancy in Hong Kong.
In a statement,
representatives of young people in the constituency, Hazel
Sillah and
Dananai Murwira, said they joined the First Family as this was a
“national
success over machinations by Western powers to cripple the country’s
education through various means such as sanctions”.
“Praises and
salutations are appropriate to you for your great determination
tempered by
your never say die attitude, great devotion, great courage and
great focus
which resulted in this deserved achievement and victory,” read
the
statement.
They described Bona as the personification of the
determination by the
country’s students and youths to excel despite
externally induced
adversities.
Unsurprisingly Media, Information and
Publicity minister Webster Shamu is
also the MP for Chegutu
East.
“Miss Mugabe’s success is a result of the scope, scale, nature
and impact of
parental involvement and support in her education,” gushed the
statement.
“Such parental involvement includes good parenting and the
provision of a
secure and stable environment in the home,” it
read.
“The First Family is an excellent model of how to impart
constructive social
and educational values as well as high personal
aspirations relating to
personal
fulfilment.”
Muckraker was amused by the views of Herald
readers in the readers’ comments
section who clearly did not share the views
of the Chegutu East students and
youths.
One reader said Bona was
enrolled in a top notch university as far away as
possible from decaying and
substandard local universities.
“She didn’t endure the hardships of
erratic power cuts, strikes, transport
blues, shortages of books and
lecturers being faced by many Zimbabwean
students. If she had graduated from
any local university I would have joined
the chorus,” one reader
said.
Another said the first family shunned everything Zimbabwean
from shopping
and education to hospitals.
There are numerous
tertiary institutions in this country which have opened
their doors in
recent years. And the president is chancellor of most of
them!
President
Mugabe managed to drag the British into his speech of
congratulation. Bona
and her friend Nyaradzo had been “haunted and harassed”
by British
journalists in their formative days at the university but the
authorities
had acted to ensure the harassment was stopped, he said.
By the way,
who was Bona’s friend Miss Nyaradzo Khimbini? We were not
told.
We are always intrigued to note the Herald’s
Nathaniel Manheru column goes
missing whenever the president travels abroad.
That’s obviously a case for
some cracking of the editorial whip but that’s
as likely as snow at
Christmas at the Herald.
And poor old
HildegardeManzvanzvike having to repeat Manheru’s“ jokes” at
the end of her
column.
But increasingly the Herald is having to recruit foreigners
for its columns.
They are usually people who are not in the least bit
interested in the
suffering of Zimbabweans but want to use the state press
as a platform to
pursue their campaigns in support of Iran, Cuba and other
such renegade
states.
There was a mugshot of Alexander Cockburn last
week who was sporting dark
glasses.
His article was headed ”Uncle
Sam, the Iranian plot”.
Then there was a lengthy piece by Stephen
Gowans who wanted to provide A
“guide to why the US seeks to make Iran a
global pariah”. Both articles were
turgid and unoriginal. Obviously, like
Udo Froese, they can’t find
publishers in their own
countries.
Zanu PF and the MDCs have been political foes
for more than a decade now. On
paper, they seem to be like oil and water,
propounding opposite ideologies.
However on the issue of cash, they seem to
have found common ground.
NewsDay reports that Zanu PF senator for
Gwanda, Japhet Dube, last week
attacked NewsDay and Studio 7 — a radio
station run by exiled Zimbabwean
journalists — for allegedly campaigning
against payment of outstanding
allowances for legislators.
Dube
made the remarks while debating a motion moved by MDC-T
non-constituency
senator Morgan Komichi on what he termed “unprofessional
media
activities”.
“If we look at newspapers or (listen to) ZBC, Daily
News, the Chronicle and
NewsDay, we realise that there are some papers that
are biased.
“ZBC has reasons to be there because it is national, but
Studio 7 has caused
so many problems to the extent MPs were not given the
money that we were
promised because of the fact that they went ahead to
claim MPs want money,”
Dube claimed.
“Studio 7 has destroyed our
hope and whether you are Zanu PF or MDC-T,
Studio 7 has destroyed you too,”
Dube added.
“Studio 7 claims that all current MPs love money and that
is why MPs do not
want to conclude the constitution-making process — because
they are
looting.”
Dube described independent media as “small
houses” and state media as
original wives.
“As men, we have to support
our wives before our small houses. ZBC is your
wife and Studio 7 the small
house, so start supporting ZBC,” Dube said.
Muckraker
enjoyed the following snippet from the Rhodes Journalism
Review.
“When Idi Amin grabbed power in 1971 his picture featured in
the country’s
key daily, the Argus, 101 times in just five months. A year
later it was up
to 157 times in the same period. By 1976 it was 215 times
–– an average of
twice in each edition.
“Among Amin’s bullying
tactics was his attack on a black journalist at a
press
conference.
“That question must have been asked by a white African
and surely not by a
Ugandan,” the dictator menacingly pronounced.
The
Review observed that President Mugabe must be following in Amin’s
footsteps,
“but as a product of Jesuit education it’s unlikely he’d seek
sanctuary with
the Saudis “, as Amin did.
Poor old Zimbabwe cricket
captain Brendon Taylor. He must be the subject of
ribald comments from his
team mates following the Herald’s decision to
christen him Brenda Taylor.
It’s amazing the things one gets called in the
state press!
We
loved the advice handed out recently by the Herald on how to avoid heat
exhaustion. Find a shopping mall or an air-conditioned library to seek
refuge in, the advice went.
Evidently lifted from another planet!
And then there was the Miss South
Africa contestant who was asked what her
favourite dish was. “Tupperware”
came the obvious response. No,
seriously.
http://www.theindependent.co.zw/
Thursday, 24 November 2011
17:42
AS a general rule, Zimbabwe’s politicians suffer from two chronic
sight
ailments pronounced myopia and the weakness to see only that which
they wish
to see, even if that is nothing but a mirage. These optical
deficiencies
have plagued the majority of the country’s political leaders
for many years,
especially insofar as their pursuit of the very necessary,
most desirable,
indigenisation of the economy and attainment of widespread
economic
empowerment is concerned.
The politicians recognise,
justifiably, that not only must the immense
poverty that afflicts most
Zimbabweans be eliminated, but that this must be
achieved by ensuring
wide-ranging economic empowerment.
But they do not consider that the
way to achieve that objective is by
pursuing vigorous growth of the economy,
where most of the population are
the catalysts and developers of that growth
and are effectively enabled and
facilitated to achieve it. Instead, their
rock hard, rigid perceptions are
that the only way to bring about that
economic empowerment is to transfer
existing wealth from those who generate
it, to those who crave it. They
cannot recognise that it is not possible to
legislate the poor into
prosperity by legislating the wealthy out of
prosperity. In like manner,
they are unable to acknowledge that one cannot
multiply wealth by dividing
it!
However, very occasionally, there
is an exception to the rule. Last week the
Minister of Economic Planning and
Investment Promotion, Tapiwa Mashakada,
said: “As long as the indigenisation
and economic empowerment law remains in
its current form, it is difficult to
lure investors…Investment will not flow
into this country. It’s an elephant
in the living room. The sooner we
amend it, or replace it, the better. We
can’t market the country with this
piece of legislation.”
The
fact of the minister’s statement was confirmed a few days later, when it
was
disclosed that Foreign Direct Investment (FDI) in southern Africa during
the
past year approximated US$20 billion, of which the comparatively
niggardly
portion thereof attained by Zimbabwe was only US$541 million. This
was
mainly from the Far East in general and China in particular, on terms
highly
favourable to the investors, and much of the intended investment had
not yet
reached Zimbabwe.
Although it is undeniable that this year (2011)
Zimbabwe has enjoyed some
economic growth, that growth has been minimal as
compared to that which is
needed to ensure the well-being of most of the
population. The growth has
been attained by very limited numbers, reflected
primarily by a significant
improvement in the levels of agricultural
production in general, and of
tobacco in particular, as well as from output
of the mining sector, although
the volume of agricultural production still
falls far short of those of a
little more than a decade
ago.
But concurrently, the outturn from manufacturing has
declined exponentially,
much of the commercial and financial sector is
battling to survive,
teetering on the precipice of collapse (with more than
100 industries and
businesses having closed down, and most others having had
to downsize their
operations considerably). More than four-fifths of the
employable
population is devoid of formal sector employment, and more than
half of the
population is struggling to survive on incomes far below the
Poverty Datum
Line (PDL).
Government is bankrupt, with a vast
accumulated debt which it is unable to
service. Most of the national
infrastructure is operationally ineffective
and the necessary investment
funding is not forthcoming to achieve a
substantive economic turnaround.
This would include governmental solvency,
and rehabilitation of the
debilitated infrastructure. New jobs are not
being created, whilst existing
employment becomes ever less.
The overriding factor that precludes
the economic upturn which could readily
be achieved is the absence of the
large-scale investment, which would be
readily and rapidly forthcoming if
investors had the conviction that their
outlays would be secure, and would
generate just and equitable yields.
However, when they are expected to
provide substantial investment funding,
technology transfer, access to their
established markets and are forced to
divest themselves of 51% of the
enterprises, thereby being devoid of control
of their ventures, they prefer
to look for alternative opportunities and
wholly disregard Zimbabwe as an
investment destination.
The reluctance to invest in Zimbabwe is
further intensified by the absence
of assurance of fair and equitable
compensation for the enforced
disinvestment, non-timeous receipt of any
compensation that is to be
forthcoming, and when the “indigenous investors”
are, to a significant
extent, designated entities which are directly or
indirectly controlled by
the State, and which are generally devoid of the
specialised knowledge
needed for the viable operations of the
enterprises.
Investment opportunities in Zimbabwe are vast,
particularly in the mining
sector, in the revitalisation of manufacturing
(with particular focus upon
value-addition), in tourism, and in provision of
services, but few will
avail themselves of such opportunities in a
non-conducive,
investment-insecure, environment.
Those
opportunities will be pursued by foreign investors if the investment
environment is conducive, instead of being authoritarian, and would
encompass Zimbabwean participation, if at reasonable levels, and with
investor compatibility and minimal and non-overly authoritarian State
influence. But those opportunities would also be available to very many
Zimbabweans, if they are properly schooled and trained for them, facilitated
in accessing required funding, and the ventures assured of viability by
constructive State incentives and support. These would progressively be at
all levels, ranging from SMEs to steadily growing businesses to medium and,
later, large size enterprises, reinforced by facilitative State
incentives.
Long overdue, but better late than never, Government
needs to reform its
indigenisation and economic empowerment policies and
laws. It needs to
recognise realities, and see the light, as Minister
Mashakada has done. It
needs to appreciate that when half of the people get
the idea that they do
not have work because the other half is going to take
care of them, and when
the other half gets the idea that it does no good to
work because somebody
else is going to get what they work for, that is the
beginning of the end of
any nation.
http://www.theindependent.co.zw/
Thursday, 24 November 2011 17:40
By
Brian Hungwe
THE next two weeks before the Zanu PF annual conference in
Bulawayo could
prove to be the most trying in the career of 87-year-old
President Robert
Mugabe (pictured).
Until now it would have been
unthinkable for him to doubt the support of his
Zanu PF party at the
gathering of the party’s annual jamboree.
But party insiders say the
country’s Independence leader, who has been in
power for 31 years, was
stunned by recent disclosures on the whistle-blowing
site WikiLeaks that his
close allies spoke to US diplomats about his
political exit and
death.
With elections beckoning, the reality is that a string
of his top officials
in his Zanu PF party believe he is now a liability and
want him to go before
presidential polls slated for next
year.
Insiders say he would like to stand for re-election, but in the
light of
WikiLeaks, the president is now weighing his options.
The
diplomatic cables –– covering the period 2004 to 2010 –– were relayed to
Washington from Harare, containing details of secret meetings US diplomats
held with top army officers and Zanu PF officials.
The meetings
took place without the knowledge of Mugabe and his supposedly
omnipresent
spies.
The general consensus is that although the top Zanu PF leadership
wants
Mugabe –– who has cancer, according to the cables –– to go, no-one is
brave
enough to tell him that to his face.
Party insiders say
Mugabe is not too sure how to deal with his enemies from
within –– those
officials he thought would keep party secrets under lock and
key.
On the seventh floor of the imposing Zanu PF headquarters
overlooking the
capital, Harare, party spokesperson Rugare Gumbo has been
making a study of
the documents.
In the right hand corner of his
office is a bookshelf and a file written in
bold letters “WikiLeaks”.
“My
feeling is that [the WikiLeaks] issue, might have ruffled feathers,” he
admits.
So are heads going to roll at the annual conference in December
when Mugabe
is expected to seek Zanu PF’s endorsement to serve another
five-year term.
“We will cross the bridge when we get there,” he
says.
It is not even clear, he says, if Mugabe’s future will be on
the agenda as
“according to party constitution, the president of the party
is a candidate
for any [presidential] elections that are
held”.
“He is likely to be endorsed,” he adds.
The top party
officials implicated in the diplomatic cables of plotting
against Mugabe
have powerful party constituencies which he cannot afford to
alienate by
punishing them.
Vice President Joice Mujuru is wife of late army
general Solomon Mujuru, a
kingmaker, believed to have pressured Mugabe to
step down during party
meetings. Mujuru has a huge support base within Zanu
PF, as does party Legal
Affairs secretary and Defence minister Emmerson
Mnangagwa, who is understood
to have mooted the idea of forming a new party
to challenge Mugabe. Dozens
of others were named in the cables and Mugabe
has indicated he would like
them investigated.
But there seems to
be limited options for Mugabe. He may be damned if he
acts and damned if he
does not. If he does not, he will come out as a weak
leader and his party
will go into elections divided.
If he does act, he will also divide
the party.
For Zimbabwean lawyer and author Petina Gappah it is good to hear
senior
figures question Mugabe’s continued leadership, but she questions
their
motives.
“The people who were talking to the Americans
clearly take themselves and
the Americans more seriously than they take us,”
says Gappah.
“That makes me angry,” she says.
Political
commentator Brian Raftopolous sees the closed-door chatter as a
historical
problem for the party, now in its 48th year.
“Succession issues have never
been dealt with openly in Zanu PF. There has
also been violence and death
and all kinds of skulduggery. It’s really the
inability of a liberation
party to transform itself into a democratic
party,” he
says.
Nonetheless, the WikiLeaks cables have now brought the
“Mugabe-must-go”
agenda into the public domain, says retired Major Kudzai
Mbudzi, a veteran
of the war of Independence and a Zanu PF
member.
“Everybody is now aware that there is unanimity within the
party that Mugabe
must go. But there is also unanimity in the public denial
that they would
require him to retire,” he said.
Some believe it
will make Zanu PF stronger in the end –– like Jonathan Moyo,
who sits on the
party’s politburo. He was cited in the documents calling for
leadership
renewal and an exit plan for the president. While he does not
deny it, he
says it happened during a time he had left the party, which he
has since
rejoined. People now need to be clear which side they are on, he
says.
“If anything, this is a God-sent event which will go a
long, long way to
unite people, scare cowards.”
And given the
smouldering discontent within Zanu PF, come December party
officials may
just pluck up the courage to tell Mugabe to bow out ––
gracefully or not. ––
BBC.
http://www.theindependent.co.zw/
Thursday, 24 November 2011 17:39
By
Pedzisai Ruhanya
ZIMBABWE’S attempt at a democratic political transition
emanating from the
March 2008 general election failed to produce a clear
rupture from the past
as was the case in eastern Europe following the
collapse of the Soviet Union
in 1989. This failed totalitarian political
rupture has grave consequences
for transitional justice issues because the
negotiated settlement left the
repressive regime and its structures
intact.
The functionality or otherwise of the Joint Monitoring and
Implementation
Committee (Jomic) and the inclusive government itself have to
be understood
and interrogated in terms of the nature of the political
transition that
came out of that failed democratic
transition.
The nature of the Zimbabwean state –– which I posit as a
continuation of the
colonial state –– also has a bearing on any attempts to
democratise
Zimbabwean politics.
It is, therefore, critical to
appreciate what a political transition is, the
types of transitions, and the
one that is operating following the signing of
the Global Political
Agreement. Such kind of analysis will assist in
appreciating why Jomic and
the inclusive government have failed to produce
the desired democratic
political transition premised on the rule of law and
the respect for
citizens’ fundamental civil and political liberties.
A political
transition refers to a regime change or simply a change of
governance. A
regime change is a change in the institutional structure of a
given country.
It is the formal and informal organisation of political
power, and of its
relations with the broader society. A regime determines
who has access to
political power, and how those who are in power deal with
those who are
not.
It is possible to have a regime change without changing a leader
but a
regime change is not equal to the change of a leader. For instance, if
President Robert Mugabe loses the next election but the repressive and
totalitarian system remains, then there will be no regime change. So the
usual chorus of Mugabe must go is not good enough to democratise Zimbabwean
politics and its institutions. The Zimbabwe case needs both the faces of the
regime, that is Mugabe and other oppressive elements, and most critically
the system to be overhauled.
There are basically three types of
political transitions:
Transition through transaction –– This happens
when the authoritarian regime
initiates the process of democratisation of
the body politic but remains a
decisive political actor throughout the
transition although opposition
political parties and other players are part
of the process.
Transition via extrication –– This type of transition
occurs when the
authoritarian regime is weakened but not as significantly as
is the case in
the transition by defeat. However, in this situation, the
authoritarian
regime has less power to negotiate as in transition by
transaction. It will
be slowly phased out of power.
Transition
via regime defeat –– This type of transition involves a decisive
defeat of
the authoritarian government leading to the end of authoritarian
rule and
the establishment of a democratic government. This is a very rare
form
transition. It happens in cases where revolutions take place.
From
these three types of transitions Zimbabwe is experiencing transition by
transaction where the three MDC formations led by Prime Minister Morgan
Tsvangirai and the others by Professors Arthur Mutambara and Welshman Ncube
as well as President Robert Mugabe’s Zanu PF are in a compromise agreement
following the signing of the GPA in September 2008. This was after the
international community refused to legitimise the sham June 2008
presidential run-off.
Comparatively, the Zanu PF side of
government has more power in relation to
its partners. That’s why the
outstanding issues can only be resolved at the
pleasure of Zanu
PF.
In a situation where a vanquished political party has total
access to the
state as is the case with Zanu PF, it becomes difficult to
talk about the
effectiveness of quasi-democratic bodies such as Jomic
because what these
bodies attempt to do is to create conditions that will
make sure that Zanu
PF is removed from power. Zanu PF has successfully
blocked most democratic
initiatives.
My argument is that the
nature of the GPA and not Jomic is the one that is
stalling the transition.
What has failed is the GPA and the current
government. It failed from the
start because the negotiators from the MDC
formations did not gain enough
leverage during the talks to enable
transition through extrication as was
the case with Zimbabwe after 1980. The
country experienced transition by
extrication where Ian Smith (pictured) was
defeated in an election, accepted
that defeat and elements of the colonial
regime were axed out of the state
step by step until they were all flushed
out.
To worsen the
situation, Zimbabwe’s problems are compounded by the
undemocratic nature of
post-independent Zimbabwe. Following the fall of the
colonial government,
the nationalist government of Zanu PF did not
democratise the state. The
theory of elite continuity came into effect in
which Zanu PF elements
occupied state positions and structures such as the
security apparatus and
media. Colonial and repressive laws were retained
without democratising
them. The colonial political culture of violence as
well as dictatorship was
taken aboard by the new rulers. Zimbabwe
experienced a false dawn in 1980
and experienced the same following the
signing of the GPA in September
2008.
The critical issue that confronts Zimbabweans is to work to
democraticise
the state and its politics. They need to create rupture from
both the
colonial and Zanu PF systems of governance and make sure that the
state is
democratised. The state’s fundamental role is to protect and
advance the
rights and needs of its citizens. The state must advance rather
than inhibit
the democratic aspirations of the people. This cannot happen
under its
current organisation and leadership.
However, there are
certain things, under this very constrained political
environment, that
civil society and the democratic forces should insist the
GNU should do. For
instance, to address issues of impunity, the GNU should
be pressured to
deliver justice to victims of the de facto police
state.
International law requiring punishment for atrocious crimes
can provide an
important counterweight to pressure from Zimbabwe’s ruling
elite responsible
for the Matabeleland and Midlands massacres and the
post-2000 human rights
violations.
This will assist in making
sure that citizens know the price of trespassing
the rights of others. It
will make vigilante groups such as Chipangano and
its leaders think twice
before they commit crimes. This will not be done by
Jomic because this body
actually has sympathisers of Chipangano in its rank
and file. It will be
done by civil society and other democratic forces
through piling pressure on
the prosecuting authorities and exposing the
heinous activities of such
groups.
When prosecutions are administered and undertaken pursuant to
the provisions
of both domestic and international law forbidding acts such
as genocide,
crimes against humanity, torture and war crimes, they are less
likely to be
perceived or opposed as acts of revenge.
If Zimbabwe
is to return to democratic legitimacy, the GNU should further
respond to
human rights violations by adopting laws which bar certain
categories of
former government officials and party members from public
employment. Such
measures will not be new to Zimbabwe; they have worked well
in
post-communist governments in Europe and Latin America.
Such elements
are rampant in country’s public service particularly in the
security forces.
Zimbabwe is full of public officials who have been
associated with human
rights violations since Independence and their role in
government is to
block any judicial and political reforms that seek to make
them accountable
for their crimes.
Ruhanya is a PhD candidate Media and Communication
Research Institute at
CAMRI, University of Westminster, London.
http://www.theindependent.co.zw/
Thursday, 24 November 2011 17:35
By Rashweat
Mukundu
OVER the past few weeks, the Zanu PF propaganda machinery has
reached fever
pitch in its attempt to build a case against MDC-T leader
Morgan Tsvangirai
and civil society as agitators of military intervention
and regime change in
Zimbabwe. President Robert Mugabe’s spokesperson
George Charamba who is
believed to be Herald columnist Nathaniel Manheru
started this hysteria
alleging that Tsvangirai is mobilising African
countries and the
international community to do a Libya or an Ivory Coast on
Zimbabwe.
This fear and unfounded paranoia gripping Charamba, as well
as the state
media’s onslaught on the MDC and civil society, must be seen in
light of the
opposition within Zanu PF towards the continued stay in power
of President
Mugabe.
More so there is an increasing awareness and
acceptance within Zanu PF that
Mugabe is no longer a viable leader. This has
prompted desperate attempts by
Mugabe’s supporters like Charamba to rally
everyone behind the faltering
leader using the fear
factor.
Charamba and the state-controlled media have been deployed to
frighten
dissenters in Zanu PF with the possibility of a Western invasion of
Zimbabwe
or jail time for crimes against humanity. In the same vein the
dissenters
are reminded that it is only Mugabe who can protect them. On the
fringes of
this propaganda war and with clear evidence of a struggle with
clarity are
the likes of Tafataona Mahoso who a few weeks ago had Jestina
Mukoko, a
victim of torture by Zimbabwe’s security sector, appear in the
Sunday Mail
against his rambling article which claimed Zanu PF victimhood.
He accused
the West of the very same crimes that Zanu PF and the security
sector are
known for.
This hysteria by Charamba, Mahoso and the
likes of Jonathan Moyo go against
documented sentiments expressed by senior
Zanu PF leaders in discussion with
US government diplomats. This is the
reason for the panic within Mugabe’s
camp hence the diversionary propaganda
war that seeks to identify common
enemies in the MDC and civil
society.
This is an old trick that we have seen in the past which is
doomed to fail
as always. First there is no doubt in the minds of sober,
well meaning and
indeed patriotic Zimbabweans, be they Zanu PF or MDC, that
2012 and 2013 are
watershed years in the political life of
Zimbabwe.
The change that will take place can be compared to that of
1980. This
reality is alive in the minds of sober Zanu PF politicians who
have
expressed displeasure with the continued stay of Mugabe in power while
it is
clear that he is no longer capable of running the party, let alone
government affairs.
The attacks on Tsvangirai and civil society
are meant to reorganise and
regroup Zanu PF behind their leader. For this
reason phantom theories of a
Western invasion and jail time for senior party
officials are conjured up to
create panic and anxiety hence support for the
candidature of Mugabe.
Mugabe’s few remaining supporters in Zanu PF need
to be reminded that the
only way out for Zanu PF is to embrace and allow
internal processes of
change, stop violence against the people of Zimbabwe
and return the party to
its founding tenets as a liberation and
freedom-seeking party. They have
been advancing a perverted thinking that
it should be possible and
acceptable for Zanu PF to beat, maim, intimidate
and kill citizens without
consequences.
I am reminded of the
statements by the South African ambassador to Zimbabwe,
Vusi Mavimbela, that
the mere fact of a given nation state being a member of
the regional and
international community means that it has a responsibility
towards the
maintenance of peace and where it fails the region and the
international
community has a role to play to ensure peace.
The power to stop
Zimbabwe being thrust on the international stage as was
Libya and Ivory
Coast is in Zanu PF’s hands. This can be averted by simply
ending violence
and adhering to democratic practices on elections and
observing human
rights.
There is nothing secret about civil society being supported
by the West.
These same Western-funded organisations are assisting in
life-saving
programmes in health, transforming education and supporting the
constitution-making process. The images of the wars in both Libya and Ivory
Coast and now Syria are sickening and no sane Zimbabwean would want that to
happen here. On the contrary, I would want to see Mugabe retire to Zvimba
so as to write his memoirs. Zanu PF must be able to envision a Zimbabwe
without Mugabe because it is coming. That is the natural course of political
life, more so nature.
Mukundu is a journalist and former director
of MISA.
http://www.theindependent.co.zw/
Friday, 25 November 2011
10:25
FINANCE minister Tendai Biti’s national budget presented to
parliament
yesterday showed we have registered significant economic recovery
since the
inclusive government came into being in 2009 following a decade of
recordmeltdown, yet we still have a long way to go. Coming from a low base
after a decade of cumulative economic and hyperinflationary pressures which
left the economy in ruins, the budget demonstrated we have made meaningful
progress towards sustainable recovery even though the process is mainly
concentrated in primary commodity sectors, in mining and agriculture
sensitive to exogenous shocks.
The economy has been slowly but
surely emerging from the woods. As a result
social services have been
restored to a large measure, even if there are
still water and electricity
shortages, as well as infrastructural decay. We
need to revamp our water
systems, electricity generation and supply, public
transport, schools,
hospitals, and other public facilities. Infrastructure
needs repair or
renovation.
For this to happen, the current pace of recovery must be
sustained or even
improved on. Government and stakeholders must come up with
a common vision
and strategy to use all of our collective knowledge, skills
and resources to
tackle prevailing economic and social
problems.
The biggest issue remains that of economic recovery and
real growth to
expand the economy and create jobs. This is what is more
important at the
moment.The progress made so far shows Zimbabwe can fully
emerge from the
doldrums and once again be one of the most thriving
economies in the region.
The key to all this is good leadership and viable
policies.
Despite progress towards full recovery, the size of our
budget alone, given
the country’s rich mineral resource and agricultural
base, tells us a story
that the economy is still far from reaching its full
potential.
Zimbabwe has huge diamond deposits (some claim the biggest
discoveries ever,
although this assertion has not yet been fully
substantiated), the world’s
second largest platinum reserves and other
precious minerals. Almost every
district in Zimbabwe has minerals. The
country is still virgin territory. So
against a backdrop of this, the budget
is still very small. To illustrate
the point, Zimbabwe’s budget presented
yesterday is about five times smaller
than South African’s current R165
billion allocation to basic and higher
education for 2010/2011. Even though
South Africa is the continent’s largest
economy, Zimbabwe can and should
measure up better.
Due to stronger policies and a relatively
favourable environment, we remain
firmly on the right track, although
politics still cloud the horizon.
Elections and political uncertainty are
negatively affecting economic
recovery. Although the current coalition
arrangement has restored
macro-economic stability, a legitimate government
is still needed to run the
show and take us forward.
We need a
properly-elected government to restore Zimbabwe’s position in the
international community, come up with a coherent economic policy framework
and development programmes, attract investment and stimulate growth to
creating jobs and improve the standards of living.
The current
situation is not sustainable. Although there has been some
progress under
the inclusive government, there are serious capacity problems
in leadership,
policy and direction. For instance, disagreements on
indigenisation and
alluvial diamonds show this government is largely
dysfunctional, although it
is serving a useful purpose of trying to organise
free and fair
electionsexpected to yield a legitimate government.
There are still
economic challenges to be dealt with. Despite recovery thus
far, structural
impediments still weigh heavily on manufacturing and
utilities, which used
to be the locomotives of growth and employment
creation. Manufacturing
companies and parastatals need to be revived to
create jobs and accelerate
recovery. Although, real GDP grew by an estimated
6% in 2009, 9% in 2010 and
an expected 7% or more this year, growth benefits
have not fully trickled
down to many ordinary Zimbabweans outside the public
sector and the growing
segments of the formal private sector, thus poverty
remains widespread. The
majority of people remain outside the realm of the
multicurrency
economy.
And the road might be even more difficult given that global
economic
problems. Economic activity has weakened and confidence has fallen
sharply
recently, while downside risks are growing. Given all this and local
challenges, it is clear that we still have a long way to go.
http://www.theindependent.co.zw/
Friday, 25 November 2011
10:23
Constantine Chimakure
SILLY season is upon us! President
Robert Mugabe on Wednesday was back to
his old ways of double speak,
throwing once again into opacity the country’s
indigenisation policy.
Officiating at the launch of the Tongogara Share
Ownership Trust at Unki
Mine, Mugabe decreed that foreign firms resisting
the controversial
indigenisation drive should “leave the country now”.
Mugabe’s stance
is a sharp contradiction to what he preached last month when
he launched a
similar scheme –– the Zimplats-facilitated
Chegutu-Mhondoro-Ngezi-Zvimba
Community Share Ownership Trust –– where he
exhibited rare pragmatism by
calling for rapport in implementing the widely
condemned indigenisation
programme, which many view as a drive to rob Peter
to pay
Paul.
In October, Mugabe abandoned the populist rhetoric in which he
had
threatened to nationalise mines and instead spoke about the need for
partnerships with foreign companies in empowering locals.
He
claimed that the indigenisation policy wasnot meant to chase away foreign
companies, hence Wednesday’s pronouncement came as a shock to the firms and
would-be investors.
This flip-flopping is unacceptable since it
comes from a head of state with
the power to effect those threats.
Not a
single firm has resisted the indigenisation and empowerment
programme.They
have been calling for a win-win situation.
Foreign companies have
been questioning the modus operandi of the policy,
especially on thresholds,
which they argued were unreasonably high and not
attractive to investment.
They argued that indigenisation should be
incremental and on case-by-case
basis, not a one-size fits all approach.
These calls ware initially
resisted by government, but were later embraced
with Saviour Kasukuwere, the
Indigenisation and Empowerment minister,
inviting companies to submit their
indigenisation and empowerment plans,
which led to the launch of community
trusts. It was commendable.
But Mugabe’s volte face is a drawback. He
should urgently realise that we
need flexibility and rapport if the
empowerment programme is to succeed.
Even Mugabe’s friends from the East
cannot invest in the country when this
policy is as murky as it
is.
Investment is timid, it goes where there is guarantee for a
return and where
property rights and the rule of law are
upheld.
We have said it before and we will say it again:Investors are
very sensitive
to all the incoherence and confusion that has characterised
the announcement
and implementation of the regulations. Until the channels
are clear, they
will steer clear of the country. Mugabe and company would do
well to take
heed.
The indigenisation regulations are premised on
the wrong grounds as they are
not premisedon fostering wealth-creation but
on grabbing what is already
there.
It is an anti-entrepreneur
policy whereby, instead of encouraging the
formation of new companies and
businesses, local investors are being egged
into parcelling out shares from
operating firms.
There is no doubt that Mugabe is bullying foreign
firms to capitulate to his
and Zanu PF’s demands ahead of anticipated
elections next year or in 2013,
like they did with the chaotic land reform
in 2000.
Mugabe and Zanu PF want to radicalise the political-economic
environment
with promises of benefits to the electorate through
indigenisation and
empowerment.
History has shown that only a
cabal of elites benefit from policies such as
indigenisation as they usually
cannibalise the companies, leaving them as
mere shells.
While
indigenisation is necessary, it can only be beneficial if the
methodology is
right.
In its current format, the policy threatens to reverse the
slow progress
made in the economy and precipitate a decline that could take
years, if not
generations, to recover from.
http://www.theindependent.co.zw/
Friday, 25 November 2011
10:20
Itai Masuku
THE 2012 budget announced by Finance minister
Tendai Biti offers a glimmer
of hope from one perspective, that there is
unlikely to be a general
election next year.
At least that’s what we
picked up from his budget presentation yesterday. He
referred to putting
aside a budget for the constitutional process and
referendum and also sprung
a national census slated for next year.
Although we had not
received the full text of his presentation by the time
of going to press, we
did not hear him talking about putting aside money for
a general election,
unless this is buried under the vote for the parent
ministry of the Zimbabwe
Electoral Commission.
In fact we didn’t hear any mention of funds for
the reform of the electoral
laws, which is part of the fundamental GPA
requirements. It might therefore
be safe to assume that this would be
covered in the context of the new
constitution. That being the case, the
economy can heave a sigh of relief in
the interim and be rest assured that
any talk of elections during 2012 is
mere politicking.
More
importantly, industry still has at least one more year in which they
can try
and consolidate the gains made over the past three years, this year
included. Biti’s forecast of GDP growth of 9,4%, which is just a basis
point higher than this year’s budgeted 9,3 % may be achievable, other things
being equal. This assumes that the GDP growth target for this year is
achieved. But it also signifies economic growth rates coming to a plateau.
As we’ve always said in the past, we’re still talking of recovery here
before clawing back to 1997 levels.
Thereafter we shall be
talking of real growth. A rather disturbing feature
of next year’s budget
still remains the heavy dependence on the mining
sector, which continues to
account for more than 50% of output. This is
particularly worrying given the
cyclical nature of commodity prices.
As Biti pointed out, the top
performers were platinum and gold, whose prices
shot up exponentially
between last year and this year. What always has to be
borne in mind is that
these same prices can similarly plummet in a much
shorter space of time in
this volatile global economy that has this year
been dogged by the eurozone
debt crisis. Ferrochrome, which came in as the
number four contributor,
might be the first victim, given the dip in Chinese
manufacturing; the
biggest consumer of base and industrial minerals over the
past decade or
so.
The minister put in earnings from diamonds in third place, and if
it’s true
that these are forever, that might provide a hedge for the
minerals.
However, that only US$80 million from the sales of the gems
found its way
into the fiscus leaves a lot to be desired but will be given
benefit of the
doubt prior to last month’s Kimberley Process suspension.
Biti says he now
expects US$600 million diamond revenue in 2012, putting his
budget outturn
for the same at US$4 billion.
Sadly, three fifths
of this simply go towards the recurrent expenditure in
the form of the civil
service. It’s difficult to say whether we have a
bloated civil service that
needs rationalising but if that’s the case, the
money would be better
mobilised for severance packages. What we do know is
that the civil service
does lack capacity in many respects, hence
retrenchments may worsen the
government’s capacity to deliver the much
needed services. Whatever the
case, the target of 20% as the standard for
civil service salaries should
have been adhered to.
