‘Mugabe vandalised mining sector’

Source: ‘Mugabe vandalised mining sector’ – DailyNews Live

STAFF WRITER      13 December 2017

HARARE – Former president Robert Mugabe’s government presided over moral
decay in the once vibrant and productive mining sector, a study has

A comprehensive research contained in a book, recently launched in the
city titled Corruption risk assessment mining awards in Zimbabwe, carried
out by the Transparency International Zimbabwe exposes what has
contributed to the underperformance of the mining sector in the past three

In the analysis, the research highlights the political, economic,
regulatory, technological and social and environmental factors that have
thrown the sector to its current unenviable status.

Mugabe’s 37-year stay in power decimated mining sector performance.
“Zimbabwe is a deeply divided fragile state. The country has been presided
over by one person … Mugabe and one party, Zanu PF, since independence
from minority rule in 1980,” reads part of the report.

The report indicates that the style of government employed then was
characterised by patron-client relationships and state capture for example
where formal institutions were kept purposefully weak and private and
public spheres were not easily separable.

The report also notes that President Emmerson Mnangagwa was a victim of
Mugabe’s factionalism tactics which affected economic development.

“Party factionalism directly affects State institutions including the
military. Party factions frustrate and sabotage the efforts of the other,
both within and between ministries.

“An example is the sabotage of the … Mnangagwa backed investment
agreements with Aliko Dangote, in cement manufacturing, coal mining and
power generation,” the report says.

On the economic front, the report highlighted royalties which are the
highest in the region and unstable and a tax system that is fragmented.

“Ground rentals are high; there are insufficient tax incentives to reduce
the risks of exploration.

“The additional profits tax on special mining leases is burdensome and
this militates against big expenditure.”

However, corruption is cited as the biggest culprit in the performance of
the mining sector.