http://www.theindependent.co.zw/
Friday, 13 April 2012 10:09
Owen
Gagare
PRESIDENT Robert Mugabe returned home from Singapore yesterday
morning after
being away for close to a fortnight but uncharacteristically
chose to remain
tight-lipped on latest reports about his ill-health or why
he was away for
so long, forcing cabinet to be postponed on two
occasions.
Mugabe, who turned 88 in February, arrived on a chartered
flight around 7am,
amid speculation he was critically ill and had been
battling for his life in
a Singapore hospital.
The online
publication which originated or fuelled the reports yesterday
admitted they
were unfounded and apologised to Mugabe and his family while
firing its
editors, although that would not stop the storm of speculation on
his
health, especially ahead of elections. Senior Zanu PF officials close to
him
say he has prostate cancer and other complications.
Mugabe landed at
the Harare International Airport accompanied by his wife
Grace. He was met
by several senior government officials including
Vice-President Joice Mujuru
and service chiefs.
Unusually, Mugabe did not address reporters to
clear the air on arrival,
raising fears he wanted to avoid scrutiny. He
chatted with Mujuru and
officials before being whisked away. Media,
Information and Publicity
minister Webster Shamu remained behind scolding
journalists for spreading
“lies” and wishing the president ill. Shamu on
Wednesday summoned editors
over the issue.
Upon his arrival,
Mugabe proceeded to chair cabinet which did not meet last
week and this week
on Tuesday as scheduled. Ministers who attended cabinet
said he looked
relatively well and largely ignored reports of his failing
health.
“The president was calm and did not raise the issue at
the meeting,” a
senior minister said. “He appeared not bothered at all and
it seems those
stories were just much ado about nothing.”
Another
minister indicated that the media was allegedly “taken for a ride”
by
“cunning intelligence operatives” who wanted to manage the situation
through
spreading intentionally inaccurate or false information.
“This has
happened before. The media was duped. This was a planned and
deliberate act
of deception through spreading false information to manage
Mugabe’s health
situation. It’s called black propaganda and is often widely
used by
intelligence services when they want to deal with certain
situations,” one
minister said. “By so doing they have managed to discredit
the media and, at
least for now, kill the story.”
Mugabe — who has visited the Asian
country eight times last year for medical
check-ups — has often declared
himself as fit as a fiddle after such reports
and ridiculed his opponents.
However, yesterday he did not.
The international media has been awash
with reports that Mugabe was on his
death-bed in Singapore. Most media
houses picked the story from an online
publication, The Zimbabwe Mail, which
yesterday apologised for the
inaccurate report.
Leighton
Mushaninga, the executive chairman of Zimbabwe News & Media (Pvt)
Ltd,
which runs the media house yesterday announced his company had made
senior
editorial changes.
Despite the arrival of the seemingly fit Mugabe,
doubts about whether he
would be a viable candidate for Zanu PF in the next
election have continued
because of the combined effects of advanced age and
ill-health.
Mugabe is understood to be suffering from various
ailments, including
prostate cancer which has spread to other parts of the
body.
Sources this week revealed he had had gone to Singapore for eye
pressure
treatment. Eye pressure is caused by a build-up of fluids inside
the eye.
He has also been spotted with swollen ankles - a condition
medical experts
say is common in the elderly, especially after standing for
a long time.
Despite his advanced age and ill-health, Mugabe and his
backers in the Joint
Operations Command (JOC) and hardline politburo members
want elections held
this year.
JOC brings together the army,
police and intelligence service chiefs who
were widely blamed for the bloody
presidential election run-off in 2008.
One of the reasons Mugabe’s
backers are calling for elections this year is
partly because they fear he
may not be fit enough to run for office if
elections were held next year,
particularly in the third quarter.
Mugabe reportedly ran for office
in 2008 against the advice of his personal
doctor insisting he would retire
after winning the election. His doctor said
to have been flown into the
country to monitor his health during grueling
campaign period as it was
feared he could falter in the process due to
fatigue.
Zanu PF
secretary for administration Didymus Mutasa said Mugabe would remain
the
party’s candidate, insisting he was strong enough to run for another
five-year term.
“If the president was unwell we would be worried
about his health but those
reports are totally false,” said Mutasa. “The
reports of his illness are
exaggerated and nauseating. Those who say he is
ill are the ones who are
sick in their minds. The president is raring to
go.”
Political analyst Ibbo Mandaza believes running again would be
too taxing
for Mugabe. “First of all, I don’t believe there will be
elections this year
because the processes which have to take place before
elections would take
at least a year,” said Mandaza. “When the elections are
held, it’s highly
unlikely that Mugabe would be able to survive the hectic
campaign. In fact,
it is madness for anyone to want him to run,” he
said.
Mandaza said “deep inside” most people in Zanu PF did not want
Mugabe to run
for office in the next election.
Another political
analyst and University of Zimbabwe lecturer Professor
Eldred Masunungure
said Zanu PF was taking a major risk by placing Mugabe as
its
candidate.
“Certainly on age alone, I would imagine that anyone at 88
would have
difficulties running around in a presidential campaign,” said
Masunungure.
“If you consider the rigours in campaigning nationwide,
even for a young
person who is fully fit, it’s an onerous and difficult
task. It’s a mentally
and physically taxing exercise and, therefore,
Zimbabweans are justified to
question if he is capable.”
MDC-T
spokesman Douglas Mwonzora said while it was not his party’s
responsibility
to choose a candidate for Zanu PF, Mugabe was now “too old”
to run.
“The
next election is about the future of Zimbabwe and Mugabe cannot be
trusted
with the future,” said Mwonzora. “At 88, Mugabe represents the past
and this
is how he should be viewed by any serious-minded Zimbabweans.”
http://www.theindependent.co.zw/
Friday, 13 April 2012
10:06
Paidamoyo Muzulu
INSPECTOR-GENERAL of the Zimbabwe National
Army Brigadier-General Herbert
Chingono has allegedly been restricted to his
Concession farm after the army
withdrew his official vehicle and barred him
from using his offices at KG
VI. He faces charges related to the WikiLeaks
cable in which he disparaged
defence forces chief General Constantine
Chiwenga in a meeting with United
States ambassador Charles Ray in
2010.
A WikiLeaks cable revealed that Chingono met Ray in the company of
Brigadier-General Fidelis Satuku in January 2010 and quotes him saying
Chiwenga was a “political general” and has “very little practical military
experience or expertise”.
A close military source said
Chingono’s official vehicle was withdrawn last
month and he was asked to
stop reporting for work while he remained at his
farm until the matter was
finalised.
“The army took away Chingono’s office keys and official
vehicle sometime in
March,” said the source. “He was ordered to remain at
his Concession farm
until allegations against him are
cleared.”
Another source at KG VI confirmed Chingono was no longer
“working” at the
army headquarters but did not give details.Zimbabwe Defence
Forces
spokesperson Colonel Overson Mugwisi could neither confirm nor deny
the
issue and referred all inquiries to army spokesperson Colonel Alphios
Makotore.
“If I comment on the matter I would have jumped the gun,” said
Mugwisi. “Get
a comment from Makotore who handles army issues,” he
said.
However, in September last year, Mugwisi confirmed to the
Zimbabwe
Independent the two army generals were under investigation.
Military
sources then said Chingono and Satuku could be charged with
“treason or
subversion” for secretly meeting Ray to discuss Zimbabwe’s
“sensitive
military issues” and politics in contravention of the Defence
Forces Act,
their code of conduct and ethics.
“WikiLeaks is a new
phenomenon. But in internal matters to do with
discipline, we investigate
and then take appropriate action,” Mugwisi said
then. “Where there is need
for public consumption of the findings, we make
our findings public. In this
case we are likely to do that.”
Contacted, Makotore said he would not
comment over the phone and asked for
questions in writing, but he had not
responded at the time of going to
press. Many senior Zanu PF officials
were implicated in the WikiLeaks
scandal, demanding Mugabe must go.
http://www.theindependent.co.zw/
Friday, 13 April 2012 10:05
Faith
Zaba
ZANU PF has set up a unique campaign team in a bid to woo young
voters ahead
of crucial elections it is desperately pushing for this year,
with or
without a new constitution.
The team, which comprises university
graduates, lawyers and businesspeople,
has already been dispatched to drum
up support for the party, whose future
is hanging by a
thread.
According to documents seen by the Zimbabwe Independent, the
team will work
directly with President Robert Mugabe.
“Zanu PF
has put together a youth-centred election team comprising members
of the
youth league and professionals working for the party to spearhead its
campaign in the forthcoming harmonised elections,” one document reads. “The
team is intending to appeal to the youth vote and counter the influence of
the MDC-T, especially in the urban areas.
“The team will directly
work under President Mugabe and its members and the
President will address
youth-focused star rallies across the country. The
team will also lead
door-to-door campaigns throughout the country.”
Members of the
national youth league in the team include deputy youth
secretary and
politburo member Eddison Chakanyuka, secretary for
administration Leslie
Ncube, political commissar Mike Gava, secretary for
indigenisation Innocent
Hamandishe and deputy secretary for administration
Varaidzo
Mupunga.
The other members are Harare youth league chairman Jim
Kunaka, director in
the office of the secretary for administration Charity
Moyo, director for
indigenisation and economic empowerment Kurai Masenyama,
and deputy director
transport and welfare Balldon Mandengu.
Some
of the people outside the party structures Zanu PF wants to rope in to
the
team are executive director of the Zimbabwe Youth Council Livingstone
Dzikira and Harare lawyer and Hwange board chairperson Farai
Mutamangira.
Zanu PF’s campaign mantra for the general election is
empowerment of
indigenous Zimbabweans –– a message which the party is
preaching to attract
new voters.
To woo young voters, the party
is awarding them state-funded business
ventures. More than 6 000 youths have
so far benefited from the youth
empowerment fund.
Gava told the
Independent this week that: “We hope to change people’s
perceptions that
Zanu PF youths are violent. We want this election campaign
to be done in a
peaceful environment that is why we have included young
professionals and
university graduates in the youth league.
“This team was set up after
the realisation that the youths make up a huge
percentage of the
electorate.”
Following dismal performances by the party’s old guard
in certain provinces
like Matabeleland, Masvingo and Manicaland, Zanu PF is
planning to field
mostly young candidates in a move aimed at winning the
youth vote.
In addition to wooing young voters, Zanu PF has come up
with strategies
targeting churches, businesspeople, women, communal farmers
and urban
dwellers.
The campaign team is being set up amid fierce
infighting in the party ahead
of elections.
http://www.theindependent.co.zw/
Friday, 13 April 2012 10:04
Paidamoyo
Muzulu
THE MDC-T has said it will resist Zanu PF machinations aimed at
forcing it
out of the coalition government through the premeditated snub of
Prime
Minister Morgan Tsvangirai’s Council of Ministers’ meeting last
week.
Zanu PF ministers last week snubbed the Council of Ministers’ meeting
called
by Tsvangirai in a well calculated move intended to prove the
premier’s
impotence in the coalition government.
Party
spokesperson Douglas Mwonzora said the move was meant to provoke
Tsvangirai
with the hope that the MDC-T would disengage from the government
and
therefore opening the way for calling of early elections.
“They hoped
that if they undermined the Prime Minister, the MDC-T would pull
out of the
coalition,” said Mwonzora. “The Prime Minister is not going to
allow such
provocation to push him to make such a decision,” he said.
Zanu PF
has of late been trying to ram the MDC formations into fast-tracking
the
constitution-making process with the aim of holding elections before the
end
of the year and without full implementation of agreed political reforms
under the GPA.
Mwonzora said the MDC-T would only walk away from
the coalition arrangement
after achieving three critical issues the parties
signed the GPA for.
“The MDC-T entered into the coalition arrangement
to ameliorate the economic
suffering, reduce the impunity and violence from
the levels it had reached
in 2008 and to bring in a constitutional
dispensation for the people,”
Mwonzora said.
Zanu PF ministers
have been systematically bunking the Council of Ministers’
meetings since
the formation of the coalition government as well as
deliberately avoiding
implementing agreed reforms to try and collapse the
GPA.
“The
behaviour is basically arrogant and a display of childish indiscipline.
Zanu
PF ministers with the responsibility to bring about the legislative
reforms
are deliberately delaying implementation of agreed issues,” Mwonzora
said.
The MDC-T has also been subjected to systematic political
persecution and
politically-motivated trials with its rank and file members
being frequently
arrested on trumped up charges and refused
bail.
Presently, 29 party activists, including national youth
chairperson Solomon
Madzore, are languishing in remand prison facing murder
allegations.
Mwonzora said the MDC was concerned by the arbitrary arrests
and was
engaging partners in the government on a way forward.
http://www.theindependent.co.zw/
Friday, 13 April 2012 09:53
Chris
Muronzi
ZESA Holdings, which now has a notorious habit of sending
customers
disproportionately huge bills and cracking down on the poor while
allowing
VIPs to consume electricity without paying, has come under fire
from the
Competition and Tariff Commission (CTC) for its exorbitant charges
not in
line with services the utility is offering.
An anti-monopoly
investigation by the CTC unearthed excessive pricing of
electricity by Zesa
which the commission feels has a direct adverse effect
on the operations of
businesses in the country and on consumers’ disposable
incomes.
The CTC launched an investigation into allegations of
abuse of monopoly in
the production and distribution of electricity by Zesa
and its subsidiaries
Zimbabwe Power Company and the Zimbabwe Electricity
Transmission and
Distribution Company ZETDC. Although it charges are
exorbitant, Zesa’s
services are unreliable.
Among some of its
findings, the commission unearthed that the pricing
formula used to
calculate the price of electricity did not inculcate
discipline of
efficiency, and the cost of sales comprised both power costs
from local
power stations and imports.
The investigation also observed that the
figure representing the imported
power component in the calculations was
much higher than the actual costs
because it was based on budgets and
estimates were consistently used even
when actual contract supply prices had
been concluded.
“Operational costs have a very high fixed proportion
with salaries as a high
component,” the report reads. “A more detailed study
would show the
activities which caused these costs and the value they bring.
The impact of
business culture on cost levels is also not known as this
tends to lead to
high costs where transparency is weak.”
“It was
evident during the investigation that assets are operational below
capacity,
the calculation includes all fixed assets yet there was some under
utilisation of the assets.”
The commission says from its
findings, only 47% of established capacity was
being utilised by
Zesa.
“The use of low load factor in calculating the unit cost of
power has the
effect of increasing the unit price charge. This is not in
line with best
practice,” the report says.
Apart from this, the
commission also noted Zesa was not able to account for
the quantity of power
lost during transmission and distribution.
The report says an
analysis of transmission and distribution losses showed
material losses
ranging from 20% to 24% of power supplied.
“The normal acceptable
loss should be 10%. This was explained as being
attributable to old
transformers and power thefts that are not registered in
meters,” the report
says.
“An analysis of cash received by the generating companies and
how it was
applied is quite revealing. For the 18-month period which was
covered by the
investigation, it was observed that most of the cash received
was spent on
Hwange operations even though there was no performance. It
would seem the
organisation was allocating cash to cover fixed costs, mainly
human
resources related costs even though electricity generation was not
taking
place at a reasonable level.”
The report recommends that
tariff levels be determined on the basis of what
the market can
realistically pay for. It also says the tariffs industry and
commerce pay
should also be affordable to enable economic recovery.
“It is
recommended that pricing of services should be decided on a policy
basis and
not left to the companies and organisations on their own,” it
indicates.
“The fact that the organisation can send bills every month
which are known
to be higher than incomes of their consumers, and may not
necessarily be
recoverable, should raise concern. It is notable that
external auditors of
some of these organisations have reasonably forced the
organisations to
provide for bad debts as it is not prudent to account for
some of the debts
as assets carrying value.”
The commission says
there is need for an independent study to restructure
service providers in
order to impose transformational pressure on them to
rid them of poor
practices. Its report notes that while Zesa recovered full
costs, there was
no matching service.
“Bearing in mind that the fixed costs of these
organisations are very high
in comparison with variable costs, it is logical
that fixed costs should
have been trimmed in line with the level of service
that was provided and
the level of economic performance,” it
said.
The commission also observes that the capacity of utility
providers was
designed to support a certain level of economic activity. For
instance,
Zimbabwe’s GPD of US$9 billion in 1999 has not been achieved since
dollarisation with last year’s GDP estimated at US$8
billion.
“Wealth created was therefore not able to support
infrastructure supported
by a GDP of US$9 billion. The utilities are high
fixed cost/ low variable
costs organisations. During the period, fixed
costs, mainly human resources,
were not rationalised to be at the level of
services provided, yet their
tariff structures carried a full load,” it
says.
The CTC has also launched an investigation into allegations
that TelOne, the
state-owned fixed line operator, was also abusing its
monopoly while the
cities of Harare and Bulawayo were abusing their
positions in the water
utilities services and administration of rates and
levies system.
http://www.theindependent.co.zw/
Thursday, 12 April 2012 18:56
Brian
Chitemba
ZANU PF’s mobilisation drive for the next elections has failed
to yield
significant results amid revelations that the party had only
officially
gained 18 000 new members countrywide.
According to a
circular that was recently sent to provincial chairpersons by
the party’s
political commissar Webster Shamu which showed party cards sold,
Zanu PF now
has 597 849 card-carrying members, up from 579 312 announced at
the
December conference in Bulawayo.
Shamu wrote that out of 1
270 000 cards sent to provinces, 672 171 were
returned while 597 849 were
snapped up. The statistics showed that
Matabeleland provinces snubbed the
membership cards while the largest number
sold was recorded in Mashonaland
provinces.
In a central committee report that was tabled at last
year’s conference in
Bulawayo, Zanu-PF sold 9 810 membership cards out of
the 35 000 but the
recent update indicated that the number has only
marginally increased to 10
248, while in Matabeleland North it rose from 8
639 to 8 802. In
Matabeleland South there was also a slight increase from 13
367 to 14 466.
The highest number of cards sold was recorded in
Midlands where the number
increased from 166 032 to 198 532, while in
Mashonaland East 170 326 people
are now official Zanu PF members, up from
101 198.
Shamu wrote that an inter-departmental team would be
dispatched to the
provinces to recover all outstanding cards while he also
warned that party
officials who misappropriated the money would face severe
punishment.
“Again it must be emphasised that 2012 being an election
year, the party
must go into these elections with a leadership that has a
fresh mandate from
the people,” he said, in reference to election of
districts and provincial
executives before the general
election.
It has also emerged that although President Robert Mugabe
is pushing for a
referendum in May to pave way for an early election, Zanu
PF has failed to
beat the February deadline for completion of District
Coordinating Committee
(DCC) elections which was set for end of
February.
In Bulawayo, DCC elections were put on hold due to serious
infighting
rocking the province. The situation is the same in Matabeleland
North.
“DCC elections in all provinces shall be conclusively held
during and within
the month of February 2012 without fail. We appeal to all
provinces to
ensure the successful completion of the DCC elections in
February,” wrote
Shamu in a confidential circular to provincial
chairpersons, party chair
Simon Khaya Moyo, administration secretary Didymus
Mutasa, and Legal Affairs
secretary Emmerson Mnangagwa.
Efforts
to get a comment from Shamu were fruitless as his mobile phone went
unanswered.
http://www.theindependent.co.zw/
Thursday, 12 April 2012 18:54
Gamma
Mudarikiri
AGRICULTURE, Mechanisation and Irrigation Development minister
Joseph Made
said the country’s agricultural sector was losing between 15%
and 25% of its
yearly crop yields due to aging and debilitated storage
facilities.
Made told the Zimbabwe Independent this week that archaic
storage facilities
continued to hamper agricultural growth since most of
them were constructed
during the colonial era and the government had failed
to refurbish or build
new facilities because of limited financial
capacity.
Made said the high cost of electricity coupled with
erratic power supplies
continued to push up operational costs were also
responsible for the
resultant crop losses in the sector.
“It is
practically impossible for farmers to be productive and profitable
with
electricity charges of US$700 per hectare,” said Made. “The charges are
too
high,” he said.
He said in the 1990s the agricultural sector would
pay for electricity twice
a year after harvest through a stop order system
and this was one of the
contributing factors to high productivity during
that era.
He said there was a need for the private sector to invest
in the
refurbishment of agricultural storage facilities and
equipment.
Made revealed that a total of 700 000 hectares of crops
completely failed
this year because of poor rainfall and the untimely
distribution of inputs
to farmers.
He also blamed climate change
saying it had affected rainfall patterns.
The largely drought-ravaged
areas include all the Matabeleland provinces and
some parts of Masvingo,
Manicaland and Mashonaland.
He said this year’s yield would also be
affected bya reduction in the total
planted land.
According to an
Agritex survey,about 247 000 hectares of maize was planted
countrywide by
December 31 last year compared to 379 993 hectares in the
previous
season.
However, Made said Zimbabwe was prepared for the drought and
would soon be
releasing maize from its strategic reserves to affected
regions, but would
also continue importing maize from neighbouring
countries.
There is no meaningful surplus maize in the region.
http://www.theindependent.co.zw/
Thursday, 12 April 2012 18:49
Nqobile
Bhebhe
ZIMBABWEANS living in South Africa sent home about US$847 million
in
remittances last year while trade between the two countries was worth
about
R17,5 billion (about US$2,3 billion) during the same period.
South
African advocacy group People Against Suffering, Oppression and
Poverty
(Passop) says the remittances were one of the most important sources
of
foreign currency inflows for Zimbabwe.
Passop’s findings, which were
submitted to the South African Reserve Bank
and Department of International
Development and Cooperation on Wednesday,
showed that Zimbabwe imported
mainly minerals and fuel worth about R14,5
billion (US$1,8 billion), while
exports to South Africa amounted to R2,9
billion (US$361,3
million).
“Taking into account that an estimated two million
Zimbabweans migrated to
South Africa in the past decade, about R6,8 billion
(about US$847 million)
was remitted in 2011, making remittances one of the
most important sources
of foreign currency inflows for Zimbabwe,” Passop
says.
Passop notes the remittances made up between 11% and 15% of
Zimbabwe’s gross
domestic product (GDP). However, it has also pointed out
that the mass
deportations being carried out by the South African government
posed a
serious threat to the livelihoods of up to two-thirds of the
Zimbabwean
population.
“South Africa’s renewed practice of mass
deportations is therefore a serious
threat to the livelihoods of thousands
of families in Zimbabwe who are
dependent on remittances,” it
says.
According to Passop findings, three quarters of migrants
preferred using
informal channels such as cross-border bus drivers and
friends to remit
money, rather than through formal channels.
Only
15% of surveyed migrants said they used primarily formal remittance
channels, such as official money transfer operators (7%), postal orders
(7,5%) and bank transfers (0,5%).
The Passop report says
calculating the ratio of remittance inflows to GDP
and based on the
International Monetary Fund (IMF)’s GDP projections, this
meant worldwide
remittance flows to Zimbabwe currently amounted to between
28% and 40% of
Zimbabwe’s GDP. The report says in the South Africa-Zimbabwe
corridor,
remittance flows are considerable, in large part due to the big
number of
Zimbabwean migrants in the neighbouring country.
“The most commonly
used approach in the existing literature estimates
remittance flows as a
product of the stock of migrants abroad, the
percentage of these migrants
that remit, and the average annual amount that
they remit. Given this simple
framework, the assumptions for each parameter
can be deduced from survey
results and estimations,” the report says.
“The total number of
Zimbabweans living in South Africa is estimated to be
between 1,5 million
and two million. Based on this and other studies done,
we assume that 85% of
Zimbabwean migrants in South Africa remit. Finally,
estimations based on
this and other survey data suggest that the average
annual amount remitted,
including both cash and the value of goods, is about
R4000. Given these
assumptions, the rough estimate of the likely size of
remittance flows from
South Africa to Zimbabwe last year amounts to between
R5,1 billion to R6,8
billion or equivalent to between US$680 million to
US$905
million.”
Taking into account that at least a third of Zimbabwean
migrants live in
other foreign countries, predominantly the United Kingdom
and Botswana,
according to the United Nations Development Programme (UNDP),
the total
remittance flows into Zimbabwe are likely to be between R7,5
billion to
R11,3 billion (US$1 billion to US$1,5 billion).
This
estimate is supported by a working paper published by the UNDP, which
put
the figure at US$1,4 billion.
The IMF forecast for private cash
transfers, which includes an estimate of
informal flows but excludes in-kind
transfers, was US$971 million for 2009.
Given that slightly over 40%
of flows are likely to be in-kind transfers,
the IMF prediction falls well
within this range.
“Finally, considering that a recent study of
remittance behaviour of
Zimbabweans living in northern England, it is
estimated that US$940 million
was sent from the UK alone in 2007. This rough
estimate of the overall
volume of remittance flows to Zimbabwe might still
be on the conservative
side.”
http://www.theindependent.co.zw/
Thursday, 12 April 2012 18:45
THE Cold
Storage Company (CSC) is now targeting regional markets in a move
aimed at
resuscitating its sluggish operations after exports to the European
Union
(EU) were banned in 2001 following an outbreak of foot-and-mouth
disease.
At its peak, CSC boasted an annual export quota of 9 100 tonnes
of beef to
the EU market earning the country about US$45 million a
year.
Officials at the parastatal said this week planned exports to
regional
markets could resume in the next few weeks.
“Preliminary
scouting of markets in the region reveal that Mozambique,
Angola and the DRC
are areas which could be worthwhile to explore,” the
company
said.
Initial exports are set at 50 tonnes of beef to the three
markets. After a
two-month trial run, CSC would make a firm commitment to
supply the markets
on a regular basis.
CSC’s role in the local
beef industry marginally picked up last year as a
result of close to 45 000
Botswana cattle slaughtered at the company’s
Bulawayo premises after the
governments signed a memorandum of understanding
allowing for the
importation of cattle for immediate slaughter to curtail
the spread of
foot-and-mouth disease, particularly along the border between
the two
countries.
CSC used to operate southern Africa’s biggest slaughter
plants but ran into
problems in the mid-1990s when its market share
significantly plummeted
after the government ended its
monopoly.
From 1988 to 1996, CSC’s market-share declined to 45% from
88% before almost
completely surrendering the market to private
players.
Controversial agrarian reforms pursued by the government in
2000 also
plunged it into further decline after hundreds of productive
white-owned
commercial farms, which provided more than 70% of beasts for
slaughter, were
expropriated by the government for
resettlement.
Although the company is now set for commercialisation,
the government has
never entertained the notion of loosening its grip on the
poorly-performing
parastatal by bringing in technical and equity partners to
inject fresh
capital into the business. –– Staff Writer.
http://www.theindependent.co.zw/
Thursday, 12 April 2012
18:41
Tendai Marima
IT’S incredible that in less than a decade,
China has overtaken the United
States as Africa’s single largest trading
partner.
By 2009 roughly six years after adopting a more aggressive
expansionist
policy, Sino-Africa trade stood at about US$90 billion,
surpassing US and
European markets which at the time were battling a global
recession. While
the West struggled to save banks and industry from the
devastating impact of
the economic downturn, African economies grew and
continue to grow rapidly —
thanks in part to China. This confirms a growing
belief that Africa is going
to be the future centre of global growth, like
China currently is.
All over the continent China’s industrial
footprint can be seen in the
construction, energy and mining sectors, but
along with the successful
Chinese model of development come serious
problems.
From Sudan, Cameroon, DRC to Angola, down to Zambia and
Zimbabwe, stories of
problematic Chinese-African labour relations have made
headlines. Often
Chinese employers, who are used to cheap labour practices,
are accused of
overworking, under-paying and ill-treating their
employees.
While disputes are a common feature of labour under
capitalist conditions,
what draws global media attention to China in Africa
is the sometimes brutal
boss-employee model practised by the continent’s new
imperial masters.
Although China has come a long way in its domestic
labour relations, mass
social unrest, worker exploitation and walkouts over
pay show the ugly side
of the Red Dragon’s rapid
industrialisation.
Cheap labour has entrenched exploitative labour
practices which are now
being exported to different countries around the
world, some of which have
poor labour records of their own. China is no
longer just exporting mainly
cheap goods, but also cheap labour
practices.
Chinese exploitation and ill-treatment of workers,
sometimes like slaves, is
rampant across the continent, from Cape to
Cairo.
For instance, in October 2010, two Chinese managers opened
fire on hundreds
of protesting Zambian miners at Collum Coal
Mine.
The managers claimed it was in self-defence and the case was
dropped.
The decision not to pursue the matter implied that there was
no justice for
Zambians demonstrating against the US$4 per day wage and
unsafe working
conditions because China invests more than US$1 billion a
year in
infrastructure projects in Zambia.
In Zimbabwe a similar
pattern of brutal iniquity exists between the workers,
the ruling elite and
the Chinese investors and their managers.
Arguably, the most
well-known case involves Anjin Investments, a
controversial diamond venture
between Zimbabwe’s security establishment, the
army, police and intelligence
services and Chinese investors.
Through Anjin, top political and
security figures have reportedly staked
their claim to Marange diamond
fields. This has contributed to lack of
transparency and accountability in
the Marange diamond mining activities.
Diamonds’ contribution to the fiscus
remain low due to lack of
accountability.
Commenting on the
structure of Anjin’s management, Farai Maguwu, director of
the Marange-based
Centre for Research and Development once said: “Some very
senior military
personnel and well placed politicians are directly involved
in the mining
operations of Anjin. The involvement of the army in diamond
mining in
Marange is the saddest thing that has happened to the find of the
century.”
Extensive research by international organisations such
as Human Rights Watch
(HRW) and Global Witness shows that since its mining
venture began in
Zimbabwe in 2009, a litany of abuses have also
characterised Anjin’s
operations.
In a report released in August
2011, HRW noted with concern that “Zimbabwe
police and private security
guards are shooting, beating and unleashing
attack dogs on poor, local
unlicensed miners”.
It’s alarming that such violent methods of
policing mines have become
habitual practice in Marange since 2008 when 20
000 small-scale miners
invaded newly-discovered fields before being removed
by military force.
They were forcefully removed by soldiers and
police and rights groups claim
an estimated 200 people were killed, but the
government strongly denied
this.
Deny it as they might, when thousands of
people are violently displaced to
make way for companies which now control
the majority of output in Marange,
it signifies a treacherous alliance
between a self-serving government and
investors which have no interests of
the poor at heart.
This is now the face of Anjin Investments and
other diamond mining companies
in Marange.
On the labour
relations front, Anjin management recently ended a two-day
strike by
agreeing to a 25% wage increase for miners.
An unidentified
representative from the striking workers committee was
quoted in the local
press saying: “We are getting between US$188 and US$266
as monthly pay, yet
at other mines workers are getting a minimum basic of
US$600.”
According to Zimbabwe’s National Employment Council for
Mining’s salary
guide for 2010, the minimum wage for the lowest grade miner
is US$175 for
gold producers and US$188 per month for non-gold
producers.
A 25% increase from US$188 may be acceptable to the
strikers for now, but
US$235 is peanuts compared to the US$500 minimum wage
reportedly paid by
Mbada Diamonds.
Wage disputes and industrial
action against poor working conditions have
plagued companies like Anjin
since in Zimbabwe which are likely to face more
industrial action as long as
remuneration is low and Chinese bosses
“randomly beat up people” as workers
allege.
In a separate incident workers at a glass-making factory in
Harare accused
its Chinese owner of forcing them to work overtime for as
little as US$1 per
hour.
Disturbing claims of racism have also
been made against the employer by
Leonard Moyo, a former employee. Moyo told
NewsDay that his former boss
“uses his own separate toilet, which he doesn’t
share with blacks and if a
worker uses a water glass that he uses, he breaks
it and throws it away”.
Surprisingly, the report alleged that the
police were not investigating the
matter.
It’s widely accepted
that racism and beatings are not the norm in
independent Zimbabwe’s business
culture, but it appears some
politically-connected Chinese firms are
exempted from abiding by the country’s
laws.
Maintaining good
diplomatic relations is crucial to sustaining US$500
million worth of
Chinese investments in Zimbabwe, but when the “great friend
of Africa” also
starts to look like a brutal extractor of wealth, protecting
the rights and
interests of ordinary Africans becomes critical.
The model of
brutality and racism being exported by some Chinese firms and
endorsed by
many African governments sets a dangerous precedent for the
continent
expected to become the new centre of global growth led by Brics.
http://www.theindependent.co.zw/
Thursday, 12 April 2012 18:00
THE mining
sector is expected to contribute US$2,6 billion to national
exports this
year but the figure could be higher if beneficiation plans come
to fruition,
a chamber of mines official has said.
Chamber of mines tax economist Isaac
Kwesu said last week , mining
contributed US$2,1 billion to national
exports, representing 50% of total
exports in 2011.
If
beneficiation is added to minerals, then the mining sector would account
for
60% of total exports, Kwesu said.
According to the Finance ministry,
exports are expected to rise to US$5,3
billion from US$4,3 billion in
2011.
Government has said it came up with incentive schemes for
beneficiation in
the platinum, gold, lithium and dimension stones
sectors.
In the region, only diamond-rich countries such as Angola
and Botswana have
got mineral export contributions at 90% and
83%respectively, while Zambia —
which has rich copper mines — is at 80%.
However, South Africa, which has a
diverse economy, has a mining sector
contribution of 35% compared to the
Sadc average of 55%.
The
Zimbabwe mining sector contributes over 13% to GDP and accounts for over
50%
of total exports. However, there are other indirect benefits from the
sector
such as it being a catalyst for infrastructure and rural development,
employing over 45 000 people directly. By 2016 the mining sector is
expected to employ 54 000 people.
Speaking at the Chamber of
Mines seminar last week, Kwesu said even though
direct contribution is at
13%, the indirect multiplier effect which would
include backward and forward
linkages such as transport, supplies and
electricity generation, would take
the contribution to about 18,4% of GDP.
In terms of foreign direct
investment, the mining sector accounts for more
than 50% of total fixed
investment and 75% of total private sector
investment.
Last year,
the total tax paid by the mining sector to government is believed
to be
around US$311 million, which is about 12% of the revenue collected by
government. However, the contribution would increase to around 18% should
diamond revenues be incorporated.
In total, Kwesu said government
takes up to 17% of mining industry revenue
and 60% of the sectors
profitability or effective tax.
In terms of the distribution of the
revenue last year, salaries and wages
took up 15% with local and foreign
supplies at 36%. Tax payments to
government accounted for 17% while other
operating expenditures were at 21%.
Profit after tax was 11%.
The
figures however do not include diamond revenues. Total dividends
received
from diamonds last year were US$150 million while the mineral is
expected to
contribute US$600 million.
Namibia’s mining sector has a 20%
contribution to government; Zambia 13%,
South Africa 12,2%, while Tanzania
is at 10%.
Kwesu, however, said there were high stake-holder
expectations coupled with
gross misunderstanding of the mining economics,
adding this piled pressure
on the sub-optimal mining sector. This is
because the sector requires
US$5-7 billion in the next five years in order
to boost capacity
utilisation. — Staff Writers.
http://www.theindependent.co.zw/
Thursday, 12 April 2012 18:00
MINING companies are
subject to a greater number of taxes than other
companies in Zimbabwe,
Deloitte managing partner for Zimbabwe Tawanda Gumbo
said.
Speaking at a
Chamber of Mines seminar in Harare last week, Gumbo said mines
have three
extra taxes. These being additional profits tax, royalties and
marketing
commissions but are however exempt from paying the Aids Levy.
At the
beginning of the year, government raised mining fees by 5 000%.
According to
Statutory Instrument 11 of 2012, published on January 27 2012,
registration
of diamond claims increased from US$1 million to US$5 million
with a new
ground rental fee of US$3,000 per hectare per year.
Application fee
for prospective coal investors has been increased from US$5
000 to US$100
000, while the registration or renewal fee is set at US$500
000.
Mines minister Obert Mpofu said the new fees structure is to
discourage
holding of exploration and mining ground for speculative purposes
as well as
enable release of ground for exploration and development by
serious players.
However the major reason behind the increase in the
taxes is that the
government had set a US$2,4 billion contribution target
and Mpofu said the
question facing the ministry is how to achieve this. The
intention of the
new fees is to increase capacity utilisation.
In
Zimbabwe royalties are between 1-15%. Diamond and platinum attracts the
highest charge at 15%, precious stones at 10%, gold at 7%, base metals and
industrial metals each at 2% while coal stands at 1%. The range puts
Zimbabwe on top of the list of countries charging the highest royalty rate,
particularly with regards to gold, platinum and diamonds.
Gumbo
said the royalty regime has an effect of skimming off the top-line
rather
than profits. It should be read in the light of quality of
resources.
“The level of royalty payments implies that miners are not
fully unlocking
the potential of beneficiation locally as royalties are
rebated to the
extent of local beneficiation or where the minerals are sold
locally,” said
Gumbo.
http://www.theindependent.co.zw/
Thursday, 12 April 2012 17:57
Chris
Muronzi
WHILE recently presenting Chemco’s financial results, TSL CEO
Washington
Matsaira confirmed what many in the market had known and feared.
All is not
well in the country’s manufacturing industry.
Owing to high
costs of production and general lack of competitiveness,
Matsaira made the
bold decision to stop manufacturing at Chemco’s Agricura
division, a once
established agrochemicals manufacturer and distributor.
A month
later, TA Holdings CEO Gavin Sainsbury came to the market with more
worrying
news; Sable Chemicals would mothball its electrolysis plant and
import
ammonia. Although Sable Chemicals had generally been struggling over
the
years largely due to outdated technology at the plant — a development
that
meant the company incurred huge electricity bills — many had not seen
Agricura going that route.
And with false hope emanating from
last year’s CZI manufacturing survey that
envisaged capacity utilisation
rising to 80% by 2015 and restoration of
manufactured exports to 50% of
total exports by 2015 in line with the
Industrial Development Policy of
2012-2016, it seemed the manufacturing
sector was on a recovery
path.
Among its findings, CZI noted that the cost of production
remained high with
continued rises in costs of labour and utilities. The
high cost of
production coupled with low levels of capacity and inferior
product quality
largely rendered Zimbabwe’s manufactured products
uncompetitive on
international markets, the CZI said.
At the
second Buy Zimbabwe conference, CZI president Joseph Kanyekanye also
said
that labour costs are not consistent with productive capacity.
“Why
are we required to pay 100% wages when companies are operating at 60%
capacity?” Kanyekanye asked. “Why can we not benchmark the wage at 60% and
then the 40% becomes performance related?” he suggested, arguing that labour
costs were a hindrance to competitiveness of Zimbabwean
goods.
Consequently export levels remained depressed, with export
destinations
limited to the Southern Africa region.
Apart from
lack of competitiveness, working capital remains a major
stumbling block and
is one of the key factors negatively impacting on
business performance given
the need to retool.
The survey reads in part. “This (working capital)
has hampered the retooling
of the manufacturing sector. Even though the
survey results show an
improvement in the number of firms that have
undertaken capital investments,
the level of investment still falls far
short of what is required. The MTP
document clearly states two policy
targets for the manufacturing sector,
these are: increase capacity
utilisation to 80% by 2015; and restoring
manufactured exports to 50% of
total exports by 2015 in line with the
Industrial Development Policy of
2011-2015,”
At its peak, the manufacturing sector contributed a total
of 22% to GDP and
accounted for 37% export earnings. Currently it is
estimated that the sector
contributes 13% to GDP and 27% of total
exports.
Analysts now fear more manufacturing companies might go the
Agricura and
Chemco route. Capital is still a long way to come and with the
indigenisation drive gathering momentum is not going to help the situation,
they say.
With unemployment rates as high as 80-90%, analysts say
this could present
bigger problems for the economy, pointing to even higher
unemployment levels
and a worsening balance of payments
position.
Currently Zimbabwe imports more than it
exports.
UZ economics professor Tony Hawkins alluded to the same
scenario; issues of
balance of payments, foreign and domestic debt, the
imbalance between
consumption spending and savings and investment and
attempts to restructure
capitalism without capital.
Hawkins said
government needed to address lot of unanswered policy questions
which
include rationalising land redistribution, indigenisation,
debt-relief,
currency regime, privatisation, public sector reform and the
rule of
law.
He said it would be difficult to expect sufficient investment to
sustain an
economic growth rate of 8% without convincing rational answers to
these
policy questions.
Hawkins sees economic growth slowing down
this year owing to anticipated low
agricultural output and an uncertain
global economy.
“More likely in 2012 is below trend growth of around
4% - 5% at best because
of the reportedly-low level of agricultural
plantings, the uncertain global
economy, tight market liquidity conditions
and domestic political tensions,”
said Hawkins.
In his monetary
policy statement, Reserve Bank of Zimbabwe chief Gideon Gono
said while
exports grew 30,2% to US$4,3 billion last year, imports had grown
by 23,3%
to US$6,365 billion in the same period.
“This development culminated
in the recurrence of an unsustainable current
account deficit estimated at
US$1 887 million in 2011, representing 23,4% of
GDP. The financing of the
current account balance has, however, remained a
challenge in the backdrop
of subdued capital account inflows,” he said.
Gono said although the
capital account is estimated to have improved from a
surplus of US$617,5
million in 2010 to a surplus US$1 219,6 million in 2011,
the inflows remain
inadequate to finance the current account deficit
projected for
2011.
Accordingly, he said, the overall balance of payments (BOP)
position would
remain “precariously difficult”, particularly in view of
“reserve inadequacy
and sluggish growth in manufactured
exports.”
As such, Zimbabwe continues to finance the
balance-of-payments deficits
through the accumulation of external payment
arrears.
This exceptional mode of financing the balance-of-payments
militates against
initiatives geared at securing longa-term offshore
financing to support
sustained economic recovery, he said.
http://www.theindependent.co.zw/
Thursday, 12 April 2012
18:35
Wongai Zhangazha
WHEN Theresa Jena enrolled to study
sociology at a local state university
she had every reason to celebrate
because she was going to fulfill her dream
of acquiring a university
education.
She was even more excited upon completion of her studies and
looked forward
to putting her newly-acquired knowledge and skills to
practical use at the
workplace, but that has all remained just a pipedream.
Her hopes and
ambitions have bitterly evaporated and been replaced by
choking frustration
and despair.
Four years after graduating,
Jena remains under-employed and languishing in
poverty. After initially job
hunting in her field of study, she finally
settled for work in fast-food
outlets and supermarkets with the hope of
eventually finding a breakthrough,
somehow.
Now Jena believes her dreams have all but been shattered and
has lost all
hope of ever finding a job in her chosen profession in an
economy which is
struggling to recover from effects of a meltdown and
hyperinflation which
reached record levels in 2008.
Jena is just
one of millions of Zimbabwean youths who are either
under-employed or
roaming the streets in search of work. Most of the youths
have now joined
the burgeoning informal sector where their education is not
being fully
utilised. Estimates say above 80% of Zimbabweans are unemployed.
Millions
have left the country for neighbouring countries, mainly South
Africa, and
overseas in search of jobs mostly after 2000 when the economy
went into a
tailspin.
Due to lack of jobs graduates, for instance in accountancy,
have found
themselves driving taxis and working at fast-food outlets —
something they
never imagined while still at university. This is the grim
reality facing
tens of thousands of local graduates whose parents invested
heavily in
education but cannot get the expected retains as their children
are unable
to find appropriate jobs.
With the coalition
government failing to secure economic recovery and tackle
unemployment,
analysts say this has become a crisis that could overtake the
HIV/Aids
pandemic in terms of its impact on youths.
When Zanu PF and the two
MDC formations formed the inclusive government,
they agreed to embark on a
comprehensive economic programme aimed at
resuscitating the economy and
tackling unemployment.
However, the unemployment issue seems to have
dropped off the government’s
agenda as the three political parties
concentrate on power struggles and
squabbling over elections.
The
youth unemployment rate in the formal sector rose from 70% in December
2009
to 80% in December 2010 and this was blamed on lack of job creation and
continued retrenchments by many companies. Statistics from the United
Nations Office of the Coordination Humanitarian Affairs say 480 000 people
were formally employed in Zimbabwe in 2008 out of a population of about 12
million.
Governance specialist David Takawira said the
inconsistency of the
government in implementing economic policies had
resulted in its failure to
come up with a model economic blueprint which can
ensure economic growth and
translate into job creation.
Takawira
said the current job market has not expanded enough to cater for
new
graduates and given the already high unemployment rate, there is an
emergency need for the government to engage key industries and individual
companies to boost employment creation.
Zimbabwe Youth Council
director Livingstone Dzikira recently said youth
unemployment and
underemployment had the potential to trigger social
instability and chaos if
not addressed. This is a threat facing many
countries around the
world.
Besides the economic cost, high youth unemployment and
underemployment also
have social ramifications as some frustrated
job-seekers resort to crime and
prostitution.
“Africa, Zimbabwe
included, is currently facing demographic challenges with
most of its young
people aged between 15 and 24 years failing to secure
jobs,” said
Dzikira.
The 2012 national budget proposed that government sets up
three funds to
tackle unemployment, namely the youth fund, jobs fund and a
small-to-medium
enterprises fund.
However, it is unclear if these
funds are operational or just another case
of empty rhetoric designed to
make it look as if the government is doing
something about
unemployment.
The alarming rise in unemployment has been largely
blamed on the government’s
lack of vision and policy failures. Poor
leadership and economic
mismanagement are also part of the
problem.
Social commentator Tabani Moyo said the “password” for
curbing unemployment
is economic growth.
Moyo said the government
needs to actively address unemployment by luring
massive capital and
investment into the economy, while tackling the collapse
of infrastructure
and service delivery as well as the deterioration of
education
standards.
He said government, unable to collect enough revenues
through taxation due
to unemployment, was burdening 5% of those in formal
employment with
supporting the unemployed.
Unemployment and
underemployment have also caused demographic challenges as
youths migrate
from rural to urban areas, into the region and
overseas.
Rural-to-urban migration causes imbalances and has negative
social
implications.
The strengthening of partnerships for youth
development between government,
the private sector, civic society, churches,
youth organisations and other
groups through intensified compulsory
apprenticeship programmes and a
complete overhaul of the educational
curricula is crucial in tackling youth
unemployment.
In the
meantime, Jena and tens of thousands of other unemployed youths now
feel as
if they have to wait for a miracle for them to emerge out of
unemployment
and misery.
http://www.theindependent.co.zw/
Thursday, 12 April 2012
18:29
THE Herald on Tuesday claimed that the MDC-T had “hijacked” peace
prayers
and turned them into a “platform for the gospel of regime
change”.
The Herald goes on to cite a “source” who alleged that the prayers
were
being organised at Harvest House, “making them a regime change agenda,
which
is not neutral”.
“It has turned into a false messianic
partisan platform,” we are told.
The MDC-T, the Herald sources said,
had recognised that churches are key
opinion makers.
“The idea is
to go in subliminally in the holy hope to catch Zimbabwe
politically
off-guard,” he said.
That is what Zanu PF was doing all this time and
the MDC-T is only trying to
play catch up.
In 2010 President
Robert Mugabe, despite being a Catholic, donned the white
robes of the
Johane Marange Apostolic Faith sect in a bid to woo support.
This past week
Zanu PF officials were in overdrive popping up in church
conferences and
services across the country. Information minister, Webster
Shamu, who was a
guest of honour at a Guta RaMwari (Zvimiso) Church in
Nyazura, also found
time to perform at Emmanuel Makandiwa’s “Judgment Night”
vigil at the
National Sports Stadium last Friday.
Clearly hapless churchgoers will
have no reprieve from the wolves in sheep’s
clothing that have invaded their
neck of the woods.
And what do you think
of a politician who thinks his path to glory lies in
admiring the worst
dictator that ever walked the earth. Is he unaware of the
six million Jews
murdered on this man’s orders? Hitler is hardly a role
model for Zimbabwe’s
youth. He represents everything that is evil and
despotic. Saviour
Kasukuwere quotes with approval Mugabe’s 2003 statement
that he is “still
the Hitler of his time”.
“This Hitler has only one objective: Justice
for his people; sovereignty for
his people; recognition of his people and
their right to their resources. If
that is Hitler then let me be a Hitler
tenfold.”
That is populist demagoguery at its worst. It is sick. And
it deserves
scrutiny by those misguided mining companies that think survival
lies in
cosying up to dictatorship. Zanu PF must be the only party in the
world that
believes emulating Hitler is a clever move!
Muckraker
can deduce, from Kasukuwere’s overzealousness, an attempt to atone
for his
indiscretions revealed by whistle-blowing website WikiLeaks. The
website
revealed that Kasukuwere allegedly met former US ambassador to
Zimbabwe, Tom
McDonald, in November 2000 and called for leadership renewal
in Zanu
PF.
He stated that President Mugabe and his cronies must be “phased
out” of
their leadership role adding that the two vice presidents at the
time should
step down as a first
step.
Muckraker tries not to
watch ZTV. It makes the blood boil. It is nothing
more than a clumsy
propaganda tool which abuses its connection to the former
ruling party to
attack the proponents of change and reform.
But it occasionally and
unwittingly provides some light entertainment. A few
weeks ago a panel of
three “experts” were complaining bitterly about South
African constitutional
expert Hassen Ebrahim advising Copac on what changes
were needed. Why was a
South African expert hired when there were so many
Zimbabwean professors who
could do the job, the panel members headed by
“European” Chivaura wanted to
know as they waxed indignant on the issue. “We
have the most educated people
on the continent,” we were told.
But none of the panellists stopped
to consider the record of Zimbabwe’s fine
academics. What the panel needed
to do was remind viewers that the GPA was
put in place with the help of our
neighbours to create stability and growth,
not to see one party crush
another.
If the forthcoming poll is accompanied by violence and
electoral
manipulation it will carry no more credibility than the last one
(2008).
That in turn will see investment and aid dry up.
So there
is no point to a poll that does not create a national consensus on
recovery.
That notion doesn’t seem to have taken root with our political
class
including those who once enjoyed our admiration and respect but are
now
heartily loathed. We need an independent and respected law-enforcement
system if people are to respect electoral outcomes.
We need to
hear from the Human Rights Commission, the electoral commission,
and other
bodies set up in the ambit of the GPA. At present they are
conspicuously
inactive.
ZBC also reports that legal
“expert”, Tazvitya Mapfumo, has challenged the
parties in the inclusive
government to go to the polls without any condition
as there is no guarantee
that there will be an agreement in the foreseeable
future.
Mapfumo said calls for reform in various sectors, as a
condition for holding
elections, are “immaterial” as it is evident that the
political parties in
the inclusive government come from divergent political
and ideological
backgrounds and will not agree on certain matters of
principle.
What kind of legal expert advocates for the holding of
polls without
adhering to a legal document –– the Global Political Agreement
–– signed by
the major political parties and which spells out the minimum
requirements
for elections?
Mapfumo’s curious sentiments were
also echoed by Zanu PF Secretary for
Information and Publicity, Rugare
Gumbo, who mendaciously claimed that Prime
Minister Morgan Tsvangirai had
“finally” conceded to elections this year.
This is despite Tsvangirai
stating last week that: “There have been
misguided pronouncements about
dates for elections and the holding of the
referendum. I wish to state those
dates will be determined by a process and
not by a resolution of any organ
of a political party.”
“It is unfortunate,” Gumbo opines, “that he
(Tsvangirai) is still putting
some conditions which are just a way of trying
to delay the process.”
We wouldn’t want to accuse Cde Gumbo of being
a peddler of (mis)information
but he needs to get his facts right if we are
to take him seriously.
Nomatter
Tagarira alias Rotina Mavhunga, who made headlines in 2007 after
duping
President Robert Mugabe and other prominent Zanu PF politicians that
she had
powers to extract diesel from a rock, was recently released from
prison, the
Standard reports.
We can’t help but chuckle at the “diesel n’anga”
fiasco, which saw President
Mugabe appoint a special committee of
high-ranking officials to look into
the diesel “find”.
Mavhunga’s
aides duped the officials who included Didymus Mutasa, Sydney
Sekeramayi and
Kembo Mohadi, by using a pipe lodged between rocks at the
summit of Maningwa
Hills to pour diesel down where the ministers were
gathered to witness the
“spectacular” event.
The committee reported back to President Mugabe
that she was indeed able to
produce fuel out of a granite
rock.
The Zanu PF government planned to use the diesel and gold
findings to boost
the national wealth and thumb their noses at the West for
the imposition of
“illegal” sanctions.
However, in keeping with
the popular trend these days, Mavhunga has also now
become a
Christian.
“Indeed she is now a converted believer and is attending
AFM church after
our preaching sessions at the prison,” a prison official is
quoted as
saying.
We wouldn’t be surprised if, in a few months, Mavhunga
would re-surface as a
pastor. Many people who have been squeezed out of the
feeding trough seem
to have “turned to God” at the suspiciously right
time.
Despite being new to the faith, they are more than keen to take
the mantle
of pastoring, a seemingly lucrative field.
Even former Zifa
CEO, Henrietta Rushwaya, has threatened to become a pastor.
This
comes after her failed bid to seek political office, as well as being
implicated in a football match-fixing scandal, left her
jobless.
“I am turning to God and becoming a born-again Henrietta. I
intend to go for
pastoral training at a Theological College,” Rushwaya had
said.
Meanwhile the relentless
onslaught by Local Government minister, Ignatius
Chombo, on MDC-dominated
municipalities continued unabated with the
suspension –– without pay –– of
Gwanda mayor Lionel De Necker.
De Necker’s misdeed was his refusal to
appoint an alleged Zanu PF
functionary, a Mrs P Nkala, as a Gwanda
municipality chamber secretary.
As a result, Chombo accused De Necker of
insubordination and defying his
orders leading to his
suspension.
The Standard reports that Chombo’s deputy, Sesil Zwidzai,
said the former
was abusing the Urban Council’s Act in a bid to reverse Zanu
PF’s electoral
defeats in municipalities.
“Chombo is going wild,
shooting at everybody using the Act. The guy still
can’t face the reality
that his Zanu PF party is no longer running the
country’s urban councils,”
said Zwidzai.
Chombo also suspended Mutare mayor, Brian James, early
this year on
allegations of misconduct.
Chombo claimed the
suspension of James was in the interest of ensuring
“sound local governance”
for effective and efficient service delivery in
Mutare
City.
Chombo should be the last person to bleat about “sound local
governance”
when he has presided over the worst spell for municipalities in
this
country.
In a story we carried last month, De Necker complained
about the
polarisation and meddling wrought by
Chombo.
“Disruption is from all corners; from the minister and some
employees who
are loyal to Zanu PF. These people take orders from outside
resulting in a
direct confrontation and councils are heading for disaster if
this trend is
not abated,” De Necker had said.
De Necker also
told VOA Studio 7 that his removal was unfair since he had no
executive
powers to impose Chombo’s choice on the Gwanda municipality after
it
rejected his directive.
VOA Studio 7 reports that Chombo has also
sent a team to probe the Bulawayo
City Council. Clearly Chombo’s crusade
needs to be stopped in its
tracks.
Zanu PF politburo member,
Jonathan Moyo, was at the receiving end of some
stinging vitriol from fellow
Zanu PF member and Constitutional Parliamentary
Select Committee (Copac)
co-chair, Paul Mangwana.
The Daily News reports that Mangwana
lampooned Moyo for alleging that the
constitution-making process had been
hijacked by the “mafia” bent on
effecting regime change.
“From
the way he (Moyo) has been ranting about Copac week-in, week-out it
gives an
impression that he has got some ulterior motives or is motivated by
someone
with a sinister agenda,” Mangwana seethed.
“However, we will not be
distracted by hopeless people,” he added.
As if that was not enough,
Copac officials, who included Mangwana and Jessie
Majome, also said Moyo’s
views smacked of panic and were from an “idle mind”.
Something for
the not so good Prof to chew on as he mulls writing another
humdrum and
unnecessarily long article!
http://www.theindependent.co.zw/
Thursday, 12 April 2012
18:26
TOURISM can become a significant element of Zimbabwean economic
recovery.
The potential for considerable growth in the numbers of tourists
to
Zimbabwe, and therefore a substantial contribution to the economy, is
immense. Very few countries offer as many, and as diversified, attractions
to tourists as Zimbabwe.
There is the magnificent Victoria Falls, while
the wildlife viewing at
Hwange National Park, Matusadona, Gonarezhou,
Antelope Park and many other
locations in Zimbabwe is spectacular. Very
little can compete with the
grandeur of the Matopos, the mystic of Great
Zimbabwe, the tranquil beauty
of Chimanimani, Vumba and Nyanga and Mana
Pools, or the magnificence of Lake
Kariba (and, especially, the sunsets on
the Lake).
These are but a few of the country’s foremost tourist
attractions. In
addition, Zimbabwe possesses outstanding museums, art
galleries and tribal
art centres. The country’s cities and towns, and
prime tourism sites have
outstanding hotels, lodges, bed and breakfast
facilities, as well as
exceptionally located and serviced caravan parks and
rest camps.
However, there are major deterrents to Zimbabwe
maximising her tourism
potential and these constraints need to be vigorously
addressed. If this is
done, tourists to Zimbabwe will increase
exponentially, with benefits to the
downstream economy, creating
much-needed employment, and revenue inflows
to the fiscus. Factors
requiring the urgent and effective action by
government
include:
The horrendous delays at Zimbabwe’s border posts in general,
and Beitbridge
in particular. Touts demanding high facilitation fees. (The
delays at the
border posts are also worsened by excessively authoritarian
immigration and
customs officials, some of whom seek bribes, although
commendably the
Zimbabwe Revenue Authority is actively curbing such corrupt
actions).
Exiting the border posts the tourist may believe that
authoritarian hazards
are over, but soon discovers that is not so. There are
repeated police
roadblocks (frequently being 10 or more within a distance of
less than
500kms). Generally, the police manning those roadblocks are very
courteous,
but there are occasions when they are overly officious, and often
demand
bribes.
A recent example is the absence of a luminous
vest in the car — a
requirement as yet to be gazetted. Other issues
arising at many of the
roadblocks are the demand to see a valid driver’s
licence, a fire
extinguisher or red reflective triangles. (Why is it
impossible for the
police to issue the motorist a dated, coloured sticker,
as evidence that he
and his vehicle are law compliant, thereby enabling
rapid transition at
subsequent roadblocks?).
The valiant efforts
of Air Zimbabwe’s management to keep the airline
operational despite its
lack of capitalisation by the Zimbabwe government
(and formerly that of the
Rhodesian government) ultimately became futile.
Without reasonable and
realistic funding, the airline cannot function. The
solution is to privatise
the national airline so it can offer the required
domestic , regional and
international services.
Another tourist deterrent is the high fees
and charges for access to such
tourist sights as Victoria Falls, Matopos,
the diverse game and wildlife
reserves, museums, and elsewhere that tourists
desire to go to. This is
especially so of the charges levied upon
non-residents of Zimbabwe, who are
obliged to pay extensively greater
admission fees than Zimbabwean residents.
The excessive charges by the
Ministry of Environment and Tourism and other
government entities is
emulated by private sector tourism operators in
general, and hotels in
particular, being yet another factor which causes
falling foreign tourist
arrivals.
The tardiness of governmental infrastructure development
further impacts
negatively upon tourism sector patronage. It is now
virtually nine years
since government embarked upon developing the Joshua
Mqabuko Airport in
Bulawayo as an international airport, yet it is still not
completed. Until
construction is complete, tourists are forced to use a
“temporary”
converted hanger, with insufficient seating and passenger
handling
facilities, inadequate ticket facilities, lack of secure and
sufficient
vehicle parking facilities, and catering
resources.
Similarly, Zimbabwe’s roads to tourist destinations are
poorly maintained,
with innumerable potholes, lack of essential road signs,
faded road
markings, derelict vehicle lay-bys and other
deficiencies.
Bureaucratic delays points of entry that is air termals
are a further
deterrent to tourists.
Due to invasions of farms
and urban properties, Zimbabwe has an
international perception of being an
insecure tourist destination; many are
discouraged from experiencing the
magnificence that Zimbabwe has to offer.
The absence of stringent
enforcement of respect for property and human
rights has reflected
negatively upon expectations that Zimbabwe is a safe
and secure
destination.
Admittedly, in recent years, Zimbabwe has enjoyed growth
in tourist
arrivals, and in their contribution to the still ailing economy,
but that
growth is minimal compared to what it could be (and hopefully one
day will
be).
http://www.theindependent.co.zw/
Thursday, 12 April 2012
18:23
Clive Mpambela
ZIMBABWE’S manufacturing sector’s
contribution to Gross Domestic Product
(GDP) has continued to decline
despite the introduction of various
programmes and measures to stem the
contraction and boost resuscitation of
industry.
Since Independence in
1980, the government has never run out of blueprints
to support industrial
development, but these well-meaning documents, which
are often not
implemented, have not done much to stem the decline of the
sector and help
its revival in the context of the current economic recovery
programme.
One of the main functions of government is to ensure
economic development
which basically refers to sustained, concerted actions
of policy-makers and
communities to promote standards of living and
prosperity.
The process involves quantitative and qualitative changes
in the economy.
Some of the issues which are part and parcel of the process
include
development of human capital, critical infrastructure,
competitiveness,
literacy and social inclusion. All these factors must
eventually help
economic growth which is a function of productivity and rise
in GDP, a key
aspect of economic development.
Policy intervention
aimed at economic growth and the social well-being of
the people is a
critical element in economic development.
A series of blueprints have
been produced but none of them fully implemented
largely due to leadership
and policy shortcomings in government. This has
created scepticism in
government’s commitment to its policies and economic
progress.
The latest document, the Industrial Development Policy
(IDP) 2012-2016,
issued by the Industry and Commerce ministry last week,
seeks to restore the
sector’s contribution to GDP from the current 15% to
30% by 2016, while the
share of exports is expected to rise from 26% to 50%
in the same period.
The policy framework predicts an average GDP
growth rate of 7%, but like its
predecessors, the blueprint either lacks
clarity or is rather silent on a
number of key issues, making it susceptible
to failure.
The policy document does touch on some issues in brief
and makes only
fleeting references to others. Of particular interest is the
new policy
framework’s silence on the roles of the Industrial Development
Corporation
(IDC) and other players such as the National Social Security
Authority
(NSSA),the Infrastructure Development Bank of Zimbabwe and the
Zimbabwe
Manpower Development Fund (Zimdef), which have been on the back
burner, not
playing their full part in promoting the industrialisation of
the economy.
A key pillar of any industrialisation programme is an
enabling environment,
infrastructure and communications system. The policy
document pertinently
identifies the infrastructure challenges the country
faces, particularly
with regards to energy, acknowledging that there can be
no meaningful
industrialisation if the current power shortages are allowed
to persist.
It would be wishful thinking to have a thriving
industrial sector when Zesa
is failing to guarantee power supply. Apart from
this, there is also the
need for an overhaul of roads, railways, airports
and other key
infrastructure. Analysts say Zimbabwe’s industrialisation
should actually
begin with energy sector reforms and thus the new policy
cannot be divorced
from the urgent need to first upgrade current electricity
generation and
distribution capacity in the country to levels that actually
support
continuous efficient production based on power uptime and lower cost
per
kilowatt.
One of the most notable examples of policy failures
not acknowledged in the
blueprint is that in 2011, the country spent almost
US$1,2 billion importing
motor vehicles. Ironically, this staggering amount
was spent mostly on
second-hand vehicle imports.
The industrial
policy does not seem to address such key issues like how to
attract
investment in the area to create a sustainable motor trade industry
and help
to rebalance exports and imports to address the issue of the
balance of
trade and balance of payments.
Another institution that has a key
role to play but has been singled out for
sitting on the fence on industrial
development matters is NSSA. The
authority’s mandate is to collect and pool
compulsory pension contributions
and to invest on behalf of pensioners. NSSA
is expected to play a key role
as a financier of infrastructure projects and
in the
Small-to-Medium-Enterprises (SMEs) sector. The SME sector is the new
engine
for growth for different economies and if NSSA plays this role well,
nascent
industries can be developed, positively impacting on broader
industrialisation and development.
Although NSSA has been funding
some development projects, its resources have
not always been properly
deployed as some have been wasted through unviable
investments and
corruption.
Industry and Commerce minister Welshman Ncube’s policy
framework correctly
identifies the need for institutional capacity-building
and training to
strengthen institutions such as the Consumer Council of
Zimbabwe and the
Standards Association of Zimbabwe, but does not mention the
role key
institutions such as Zimdef, whose mandate is to promote manpower
development that supports long-term skills supply for industry through
vocational training.
Whilst Ncube stated in his policy framework
that he supports indigenisation,
he acknowledges the role of a vibrant
agricultural sector, a key supplier of
raw materials and critical inputs
into the manufacturing sector.
A sound industrial policy can only be
underpinned by a strong, well-run, and
well- financed agricultural sector.
The industrial policy does not deal with
the present day-to-day challenges
facing agriculture in Zimbabwe following
the land reform programme which
ruined the sector, the economy’s base, and
spawned low productivity on the
farms and shortages –– which naturally led
to imports.
Given the
ongoing onslaught on mining firms, the same can be said about the
mining
sector and industries that form backward and forward linkages with
mining
activities as higher perceived risks would lead to low investment
levels in
the sector, thus economic growth.
However, the policy does bring into
focus the sub-sectors Zimbabwe has a
distinct or potential competitive
advantage in such as the manufacturing of
pharmaceuticals and other
chemicals from ethanol extracted from sugar cane
and development of emerging
industries such as diamond mining in Marange
which can lead to the creation
of a vibrant jewelry-making sector or
manufacturing of diamond tools using
abundant industrial diamonds.
Zimbabwe also has a potential
competitive advantage in the manufacture of
fertiliser given its huge
coal-bed methane gas reserves and the new policy
thrust should see
government trying to exploit this, especially when a
favourable regulatory
framework is already being put in place.
While it has a lot of
limitations, the new industrial policy is a good
attempt at
industrialisation, although the challenge lies in implementation
and
attracting investment to boost growth and development.
http://www.theindependent.co.zw/
Thursday, 12 April 2012 18:20
Dumisani
Nkomo
A FEW weeks ago Reserve Bank Governor Gideon Gono controversially
urged the
business community in Bulawayo to engage in non-violent protests
if ever
they wanted to access the Distressed Industries and Marginalised
Areas Fund
(Dimaf). It is critical to discuss the viability and
effectiveness of
non-violent mass action as a tool of delivering political
and economic
change.
Zimbabweans have been reduced to passive
spectators in the transformation
agenda of their nation. We have delegated
the responsibility of bringing
about change to Sadc and its facilitator in
the Zimbabwe question, South
African President Jacob Zuma, the African Union
(AU) and the international
community.
We have outsourced
our problems to others. We seem to have invested a lot of
energy and time on
regional and international mobilisation and advocacy at
the expense of
internal engagement. The primacy of external factors over
internal action is
evident in the approach of mainly the two MDC parties.
This strategy
has been effective to an extent, although it is premised on
the imperative
of influencing the mediation process facilitated by Zuma and
Sadc rather
than direct engagement with the system. Our hopes seem to be
pinned on Zuma,
Sadc, the AU and the international community. But the
question is whether
this hope and belief are justified, and whether we
should continue to place
all our collective expectations on the shoulders of
others without
pro-actively playing a direct role in shaping and influencing
democratic
change and social transformation?
Zimbabweans need to start seriously
exploring non-violent mass mobilisation
as a strategy of advocating for
political, social and economic reform.
I have argued previously that
Zimbabweans are too fatigued to engage in non-
violent mass action but then
no condition is permanent and different
contexts require different responses
which are relevant to that time, and it
all depends on circumstances
prevailing at a particular period. Non-violent
mass action cannot therefore
be entirely dismissed in the Zimbabwean
context. People need to take
responsibility for their situation.
The two MDC formations have
failed to move Zanu PF on certain issues simply
because they do not have
enough leverage to do so. The power relations
between the negotiating
parties determine the outcome.
During the Lancaster House talks in
1979, PF Zapu and Zanu PF were able to
push their agendas effectively —
although they did not get all they wanted —
because of the leverage they had
in the form of their gains in the armed
struggle and their guerrilla armies,
Zipra and Zanla, respectively.
For the record, I am not advocating
for an armed resistance. The two MDC
parties have good negotiators and
arguments in their negotiations with Zanu
PF, but that is not what
influences outcomes. It is power relations or
leverage.
Non-violent mass action is an option that could be
considered to deal with
the government’s chronic incompetence and failure to
deliver. However,
non-violent mass action is a not an end in itself but a
means to an end
since it is really meant to build pressure and apply
leverage in a
negotiation process. Poorly-conceived mass action can result
in more chaos
as we have witnessed in Egypt and Libya where the revolution
has become a
cycle of violence, anarchy and confusion.
Secondly,
it must be understood that non-violent action as articulated by Dr
Martin
Luther King and Mahatma Gandhi is a philosophy based on solid
principles of
transformation. Non-violent action seeks to free both the
oppressor and the
oppressed.
Thirdly, non-violent mass action should not be taken as
the only viable
action to bring change, but as an action which supports and
complements
other actions such as advocacy, negotiation, mediation,
litigation and
arbitration.
Non-violent mass action could bring
change but in the Zimbabwean context,
non-violent mass action may have the
following challenges:
The possibility of apathy and lack of popular
support as evidenced in the
failed stay away of 2008;
Mass action
can be hijacked by sinister political or criminal elements which
may play
into the hands of military hawks who may declare a state of
emergency,
suspend all rights, dissolve the inclusive government and arrest
opposition
and civic leaders. At worst this may give opportunity for
military hawks to
take over under the guise of restoring order, and the
process could
effectively result in an end to civilian
government;
Commercialisation of activism which may result in people
expecting or
wanting to be paid for participating in mass
action;
Contraction of the economy has resulted in the decline and
emasculation of
the labour movement which traditionally has been at the
forefront of
positive direct action;
Informalisation of the
economy may result in people refusing to participate
in projects that
disrupt their income-generating activities.
Overdependence on donors
and the international community. Civil society has
come to believe action
is impossible without donor funding. Whilst
resources are critical they
should be used to support what people are
already doing, and not to control
their agenda.
Despite all these problems, risks and obstacles,
non-violent action is still
a viable option because:
It applies
pressure directly on government and service providers;
Makes ordinary
people part of the solution;
Takes the initiative from the state
apparatus;
There are over 200 non-violent methods to choose from
and
Non-violent mass action has a contagion effect and multiplies
people’s
courage.
Timing is however critical in the execution of
non-violent mass action as
wrong timing, poor planning and fear can result
in abysmal failure.
Zimbabweans must take charge of their own struggle for
democratic change and
not outsource it to others. Sulking at home without
doing much to shape and
influence change is unhelpful and
futile.
Nkomo is a political analyst and CEO of Habakkuk Trust.
He writes in his
personal capacity. Email: dumisani.nkomo@gmail.com
http://www.theindependent.co.zw/
Thursday, 12 April 2012 18:16
Ray
Chipendo
IN July 2008, Forbes magazine carried an article headlined
“Africa — The
last investment frontier”. With a rate of return on foreign
investment
higher than in any other region, Africa has eventually managed to
shrug off
the tag of a hopeless continent, a description carried on the
front page of
The Economist in March 2000.
The inclusion of South Africa
to the Brics (Brazil, Russia, India, China and
South Africa) economies in
2010 has been a welcome stamp of approval of this
promising continent,
although many African countries would have loved South
Africa and other
African countries going in there as a bloc, say as Sadc or
sub-Saharan
Africa.
It would be interesting to look into what Zimbabwe’s place is
in this
emerging continent which may be the future centre of global growth,
like
China has now become.
Short-lived commodities
bubble
Now that the once nascent signs of a slowdown in China are
becoming evident,
African countries that have been riding on China’s
craving for resources
like coal, platinum, diamonds, oil and commodities
ought to rethink their
economic growth models. The reality is that the
Chinese economic growth rate
is slowing down and will perhaps continue to do
so. A couple of weeks ago
China’s Premier Wen Jiabao signalled that the
growth rate could go down to
7,5% from its historic average of
9%.
Muted commodity demand is the inevitable consequence of this
slowdown and
will leave nations such as Zimbabwe with no other meaningful
option but to
rebalance their economies. After being hit by external demand
shocks two
times in the last three years, China is now anxiously looking at
a growth
model driven much more by internal private consumption than by
investment
and exports.
Admittedly, China will not stop importing
commodities soon and certainly not
in the short-to-medium term. However, new
developments in China indicate
signs of a waning appetite for commodities.
This could serve as a signal to
mineral resources-based countries such as
Zimbabwe that they have a 20-year
window period to diversify their
economies.
As the New York Times noted in May 2011: “The timing for
when China’s growth
model will run out of steam is probably the most
critical question facing
the world economy”. Respected economist Nouriel
Roubini believes China’s
high reinvestment rates nearing 50% are indicative
of an economy nearing
overcapacity.
Zimbabwe has reasons to be
worried, especially if government and its
policy-makers ignore this trend
and fail to plan ahead.
The Fung Global Institute in Hong Kong
believes the pattern of growth in
China has been remarkably industry and
investment-heavy. Private sector
consumption as a share of China’s GDP has
actually declined over the past
decade, falling from 46% in 2000 to 33% in
2010, and probably remained at
around that level last year. Stories of a
40km highway on the sea, empty
bullet trains and ghost towns hastily built
as part of economic stimuli
support the theory that China’s growth has been
predominantly driven by
state infrastructure spend.
Putting this
into perspective, China’s urban expansion is said to currently
consume half
of the world’s steel and concrete production. Arguably, growth
that is
promoted in this fashion is not sustainable, which is why economies
that
have benefitted from China’s economic surge need to be cautious.
The
envisioned Zimbabwe
History has taught us not to hastily dismiss
grand goals as mere dreaming.
So, even the recently proposed vision by
Finance minister Tendai Biti to
grow Zimbabwe’s economy to US$100 billion in
40 years deserves attention. To
attain such a goal, the economy would need
to grow at a compound rate of 10%
per year for 40 years. Certainly, for an
economy that had contracted by
above 40% in the last decade, there is
potential for it to pick up at 10% in
the short-run during the recovery
period.
But over the long-term, say 40 years, 10% may not be
impossible but it will
be a marathon of short sprints. It is likely that
without the suggested
rebalancing, the economy is most likely to choke due
to subdued commodity
prices.
In light of this, what then should
constitute Zimbabwe’s grand plan in
making its mark on the
continent?
A CEO’s grand plan
A good place to start is
identification of the nation’s competencies or
those things we do or have
potential to do better than others. Strategy
expert, Bruce Henderson, argues
that your most dangerous competitors are
those who look and act like you. In
Zimbabwe’s case there are clearly such
competitors across Africa in Kenya,
Zambia, Uganda and many others. Zimbabwe’s
challenge would be to identify
its unique and competitive advantages.
In supporting the notion of
rebalancing the economy, Michael Porter, a
professor at Harvard Business
School and an authority on competitive
strategy and international
competitiveness, says the abundance of natural
resources is not the most
important comparative advantage of a country.
Instead, he believes,
conditions in the economy, firm strategy, and related
supporting industries
contribute more to the competitive advantage of a
nation. The journey of
discovering our competencies could begin with a
study of the prominent
companies that have sprung from Zimbabwe onto the
regional or global
scene.
Applying Porter’s framework, the Nordic countries fared well
on factor
conditions such as skilled labour and infrastructure. Appreciative
of their
relative small size, Sweden, Finland, Belgium, Denmark and Iceland
coexisted
as a connected bloc riding on their competitiveness. Even the
mighty and
low-cost centre, China, has not succeeded in snatching the
components
industry from these competitive nations.
Taking
gradual steps
While cognisant of how sound economic planning will
always clash with
populist policies in Zimbabwe, the country’s journey down
this road is
unlikely to be an easy one.
The “Ease of Doing
Business” rankings by the World Bank currently rank
Zimbabwe 172 out of 183
countries. Among the criteria considered is the ease
of starting a business
where Zimbabwe ranks 144. According to the rankings,
it takes 90 days to
get a company registered in Zimbabwe against one day in
New Zealand and 19
days in South Arica. One wonders what it is that which
needs to be done in
a quarter of a year for a company to be registered. A
painfully long
registration process is not only a tax on entrepreneurial
development but a
major deterrent to foreign direct investment.
Apart from bureaucratic
impediments, there is also the issue of policy
inconsistency and
uncertainty. Policy consistency means businesses can make
long-term plans
and commit resources to investments. One investor once
remarked: “If you are
going to screw me up, please tell me so in advance,
that way I can
prepare.”
These are small but game-changing steps that must be
taken. But more
required are leaders long on implementation and short on
promises.
Zimbabwe needs more investment and competitive enterprises to grow
and
realise its full potential but for this to happen there must be
political
stability and policy certainty.
Chipendo is a
management consultant at a Johannesburg-based firm, as well as
managing
partner for Emergent Capital Management, a niche investment
management
company on the ZSE and JSE markets. Email:
rayc@emergentcapital.co.za
http://www.theindependent.co.zw/
Friday, 13 April 2012 10:26
PRESIDENT
Robert Mugabe returned home yesterday after a week of speculation
about his
health and resultant controversy sparked by apparently unfounded
reports
that he was critically ill in Singapore.
So beyond stories about
Mugabe’s“ill-health”, the veteran leader and his
diehards are certainly
going to intensify their campaign to wind up the
constitution-making process
and force early elections this year, with or
without a new
constitution.
Although there are many issues such as economic
recovery, indigenisation,
controversial diamonds mining in Marange and the
Global Political Agreement
(GPA) to watch on our national political diary,
the constitution-making
exercise and how Mugabe wants to seize control of it
is critical. This issue
is clearly linked to Mugabe’s health, age and
succession.
The biggest question is: Will Mugabe be allowed to get
away with it again?
This question is significant and will assume greater
meaning in the weeks
ahead. Currently the situation is undecided and
uncertain.
Mugabe recently demanded the constitution-making process
be completed next
month so that he can announce the route towards polls. His
rivals and
critics said the plan for early elections was impractical and
likely to stir
violence and chaos. However, Mugabe has vowed to go ahead
with elections
after May. Analysts insist political reforms, including
constitutional
changes, are necessary to “level the playing field” and avoid
upheavals and
violence seen during the last 2008
elections.
They have warned early polls would breach GPA terms
and the supplementary
elections roadmap drafted by Sadc facilitator, South
African President Jacob
Zuma.
Mugabe has already fired shots
across Zuma’s bows by threatening to “remove
him in broad daylight”,
claiming he had warned him about this. Zuma has been
expected in Harare
since the last Sadc summit in Luanda in August last year,
but seems to be
taking his time to intervene to save the GPA.
For now, Mugabe appears
determined to plough ahead on a unilateral course.
If he abridges the
constitution-making process, calls for elections this
year, with or without
a new constitution, that would be a slap in the face
for his GPA partners
and Zimbabweans as a whole.
Secondly, it would be a repudiation of
Sadc and the African Union as the
guarantors of the agreement. And thirdly,
it would be a brazen challenge to
the international community. With
political stakes being so high, it would
be interesting to see whether
Mugabe would be allowed to get away with it
again. For more than 10 years
now, he survived an onslaught against his
rule, although it seems he is
reaching his wits’ end despite his
determination. However, given his
political experience and survival tactics,
it would be folly for anyone to
underestimate him.
So far Mugabe has managed to stall transition and
reform by refusing to
fully implement the GPA and the supplementary roadmap
endorsed by Sadc.
Nothing significant has changed in the past year since the
Livingstone Sadc
troika summit in March last year where it appeared regional
leaders had
drawn a line in the sand.
The promise that Sadc
would take a more robust stand following the
Livingstone summit has not yet
been adequately borne out. Although the MDC
parties welcomed the hitherto
more proactive engagement Zuma, nothing much
has been achieved. Zanu PF,
despite its growing internal strife, is still
frustrating GPA implementation
and reforms.
Now Mugabe is calling for elections on his own terms and
nobody is springing
to action to stop him. Last year Sadc managed to reject
his claims that
conditions for free and fair elections had been met but now
he seems to have
regained the upper hand.
Sadc, as guarantors of
the GPA with the AU, needs to secure tangible
progress on several key issues
if elections are ultimately to be held in
conditions that are sufficiently
free and fair. The divisive security and
law and order issues have
essentially been ignored or avoided and thus
remain contentious. The
regional organisation needs to find a way to change
this.
Its
strategy to reduce the GPA’s reform agenda to a more manageable set of
priorities and strengthen monitoring of implementation has not worked. The
GPA, which must remain the elections roadmap, must be implemented to ensure
Zimbabwe develops a credible political system that enables both cooperation
and responsible competition between the political parties, and to cope with
security issues during and after the elections.
http://www.theindependent.co.zw/
Friday, 13 April 2012
10:23
Dumisani Muleya
UNTIL yesterday when President Robert Mugabe
returned home from Singapore
where he had officially gone to make further
studies arrangements for his
daughter and apparently also spend the Easter
holidays, a storm of
speculation over his ill-health and whereabouts was
raging.
The sensational reports –– which one of the online
publications, the
Zimbabwe Mail, helped to start and fuel –– reached fever
pitch a few days
ago when it was claimed Mugabe was on his “deathbed” and
“undergoing
intensive treatment” at a hospital in Singapore.
The
reports sought to provide a vivid account of the situation by further
claiming Mugabe’s relatives had flown to Singapore in a private jet to be
with him at a clinic as his situation was critical.
In
journalism, reporters who want to be believed always try to provide a
vivid
account to enhance the credibility of their stories. A vivid retelling
not
only increases chances of people remembering the account, but also tends
to
increase emotional reactions.
This is what the reports on Mugabe’s
ill-health sought to do and succeeded
in a way as shown by resultant anxiety
and angry reactions which
subsequently followed. The reports caused havoc
and confusion on a somewhat
global scale. Certain instructive issues arise
out of the reports and what
transpired afterwards.
The first one
is the authenticity of the reports. Now that we know the
reports were false
and that The Zimbabwe News & Media (Pvt) Ltd, which owns
the Zimbabwe
Mail, has admitted as much and apologised, we can only express
dismay and
disgust at those stories.
Although most people still do not trust
online publications largely because
of their lack of professionalism and
accountability, it is important to note
websites are important sources of
news and information, especially in this
age of social media.
So
when they start writing inaccurate or false reports, unleashing confusion
on
a grand scale, it becomes rather worrying. For us in the media, what is
disturbing about this emerging phenomenon of mendacious reporting is the
damage which such reports inflict, not just on the platforms concerned, but
on the profession. It must be stated even though an apology has been issued,
the damage had already been done.
The trouble with this is that
it makes it difficult going forward for other
media organisations to cover
what is otherwise a legitimate story in the
public interest. Mugabe’s health
is unquestionably in the public interest
and there is no problem with the
media covering it. What is important is to
always ensure the reports are
accurate and balanced. Yes, reporters make
mistakes but that’s why we must
verify our stories before publishing. Had
that been done on the current
saga, this embarrassing situation could have
been avoided.
The
other thing is Mugabe’s advisors and spokesmen must also talk to the
media
on this issue to avoid fuelling speculation and damaging ripple
effects.
Instead of always waiting to react to reports about Mugabe’s health
situation, it would be useful for them to clarify this issue once and for
all.
While government last year issued a statement, saying Mugabe
was travelling
to Singapore for an eye surgery as he had cataracts, it was
not enough,
especially when it was prompted by reports of his ill-health and
shuttling
between Harare and the Far East in the first place.
On
the current occasion, even if it was announced he was going to look for a
university place for his daughter, subsequent reports, although baseless,
showed people do not believe Mugabe’s spokesmen and in fact sometimes
speciously think the opposite of what they say is true. It shows they have a
credibility problem.
On Wednesday, we had a meeting as editors
with Information minister Webster
Shamu at his request (although it turned
out he only wanted to talk to the
NewsDay and Daily News) and discussed this
issue. It was a friendly
encounter although he expressed grave concerns
about how Mugabe’s health
story was being covered. We made our positions
clear the issue is in the
public interest but agreed with him coverage must
be factual and
responsible.
But there is also another dimension
to this. Who is behind the latest
reports on Mugabe’s ill-health? Is this
not disinformation by intelligence
services which want to manipulate the
media and people by discrediting
certain information or supporting false
conclusions for political purposes?
It would be worth investigating
this to see whether this was not black
propaganda. Some say it is
disinformation to manage Mugabe’s very real
health problems and gullible
reporters fell for the intentionally false
reports spread deliberately to
discredit the media and “kill” the niggling
story ahead of elections. Let’s
find out.
dumisani@zimind.co.zw
http://www.theindependent.co.zw/
Friday, 13 April 2012
10:21
Dingilizwe Ntuli
WHY should consumers waste money on a more
expensive product by buying
Zimbabwean-made goods and services when there
are cheaper ones of more or
less the same quality from outside?
Although
the ostensible economic benefits of buying any locally-produced
products and
services helps create more income and employment, Zimbabwean
companies
should learn to compete on quality instead of trying to force
consumers to
spend their hard-earned cash on the substandard.
Some captains of
industry who attended the Buy Zimbabwe Conference and
Experiential Expo,
which ends in Harare today, tried to guilt consumers into
buying inferior
locally-made products by saying imports were ballooning the
country’s trade
deficit. The trade deficit is about US$2,6 billion.
The Buy Zimbabwe
initiative seeks to promote the consumption of locally
produced goods by
discouraging imports through campaigning for tariffs and
other measures that
would help protect local industry.
Confederation of Zimbabwe
Industries president Joseph Kanyekanye urged the
government to address
existing liquidity problems by normalising relations
with the international
community to unlock lines of credit. He also felt
that local companies were
overpaying workers saying the resultant wages
contributed to the high costs
of doing business in Zimbabwe.
Others called for laws to protect
local industry by forcing companies to
procure a certain percentage of
locally-made goods and services.
Only Employment Confederation of
Zimbabwe president Anthony Mandiwanza
cautioned against protection saying
local industry should address the issue
of productivity because the economy
was producing more consumers instead of
jobs. He defended consumers’ rights
to retain their choice between local and
imported
goods.
Listening to the various contributions at the conference, one
is left to
conclude that companies want to rely on protectionism rather than
encouraging competitive procurement by providing good products and services
or a good experience.
Protectionism generally does not promote
good brands but encourages
substandard products and sometimes lousy service.
Goods and services should
not simply be bought because they are “made in
Zimbabwe” even without
demonstrating value.
Buy Zimbabwe
indicates that the shopping baskets of a majority of Zimbabwean
consumers
contain 80-90% foreign goods, but why don’t those local companies
clamouring
for high tariffs on imported goods make it easier for consumers
to identify
quality local products.
Should shoppers be looking for “made in
Zimbabwe” goods in shops or local
companies should make it easy by producing
high quality products? Patriotism
is a primarily political act which doesn’t
usually work when it comes to
quality of goods and services. It’s true that
if consumers were to purchase
the majority of their products and services
locally, it would help stimulate
the economy and create job opportunities,
but Zimbabwean companies must
address the issue of limited investment which
affects the quality of
locally-manufactured goods.
Very little
investment has been made in Zimbabwean companies yet they all
expect high
returns. How can they expect to make profits when they do not
plough back
any investment in their businesses? Obviously the quality of
goods and
services will not improve as long as companies fail to invest in
new
equipment and continue using archaic machinery inherited from the
colonial
era.
Yes, buying locally puts more money into the economy, but the
goods and
services must match the quality and cost of the product. It’s
simple, if the
quality of local cheese is not up to scratch, consumers will
be forced to
buy South African cheese.
