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Zim safer for investors: Tsvangirai

http://www.zimonline.co.za/

by Caroline Mvundura Saturday 21 August 2010

NGEZI - Prime Minister Morgan Tsvangirai on Friday called on investors to
acknowledge work done by his unity government with President Robert Mugabe
to stabilise the economy that he said has made Zimbabwe a safer investment
destination.

Tsvangirai admitted that more work needed to be done to ensure certainty in
Zimbabwe's future political direction but said continued vilification of the
country was not a true reflection of developments on the ground.

"This country is still defined as a risk to investors .. that is not a true
reflection of the situation," said Tsvangirai, while opening a US$2 million
shopping complex at Ngezi Platinum Mine, the country's biggest platinum
mine.

"We have removed the foreign currency risk .. the exchange risk is no longer
there. What we should focus on is to create predictability in our politics
to remove uncertainty," added Tsvangirai.

Zimbabwe, still struggling to recover from a decade-long economic collapse
and a protracted political crisis that followed its disputed 2008 elections
pitting then opposition leader Tsvangirai against Mugabe, registered its
first economic growth in ten years last year.

The economy grew by 5.1 percent in 2009 and is this year seen expanding by
4.5 percent.

But unending political disputes between Mugabe's ZANU PF party and the MDC
of Tsvangirai continue to influence perceptions about Zimbabwe, with rich
Western governments and multi-lateral institutions reluctant to provide
badly needed financial support demanding that the Harare collation
demonstrates greater commitment to democracy to get help.

A controversial economic empowerment plan to force foreign-owned firms to
transfer significant stake to local blacks over the next five years has also
raised fresh questions about Zimbabwe's commitment to free enterprise and
property rights among foreign investors.

Many foreign investors have reacted by putting on hold new projects until
there is more clarity on the indigenisation programme.

The Ngezi mine that is situated 140 km south-west of Harare is owned by
Zimplats, a subsidiary of Implats, the world's second-biggest platinum
producer. The shopping complex opened by Tsvangirai was built by insurance
giant, Old Mutual. - ZimOnline.


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Diamonds sale a damp squib for expectant locals

http://www.theindependent.co.zw/

Friday, 20 August 2010 16:43

ZIMBABWE'S much hyped sale of alluvial diamonds has become a damp squib for
locals who were hoping for a windfall that would contribute significantly to
the revival of the country's  economy, which has been in the doldrums for
over a decade.
Zimbabwe sold 900 000 carats of  what Mines minister Obert Mpofu said was
just part of a six million stockpile after a protracted battle to get
certification from diamond regulator, the Kimberley Process Certification
Scheme. Finance Minister Tendai Biti says of the US$45 million realised from
the sale, government pocketed US$15 million.
Government gets 10% from the Marange diamond sales as royalties and 25%
corporate tax on profits while the remainder will be shared by the state-run
Zimbabwe Mining Development Corporation (ZMDC)  and South African companies,
Mbada and Canadile. ZMDC will pay dividends to government.
Economists say even if the entire stockpile was auctioned, the figure would
still be inadequate to ensure immediate, visible development. Reports of
corruption in Marange further worsen the situation, they say.
"We should not expect quick returns from diamond sales. The impact of
diamond sales is not going to be realised in the short-term but in three to
five years," said Witness Chinyama, an economist with a local bank.
The country's underfinanced national budget for 2010 is US$2,2 billion,
while the internal and external debt is estimated at US$5,7 billion.
Multilateral lender, the International Monetary Fund, in July noted that the
extraction of minerals would not result in a dramatic improvement of
Zimbabwe's economy.
Support from the multilateral institutions has been slow despite the
formation of a coalition government in February last year that brought
relative stability. The discovery of a vast field of alluvial diamond rich
land in Marange lifted national spirits and hopes were high that the country
is in for an immediate cash haul.
Politicians from president Robert Mugabe's party, Zanu PF, had celebrated
the sale of the diamonds as the panacea to Western imposed sanctions. But
they could have celebrated too soon, if figures from the maiden sale of part
of a stockpile of Marange stones last week are anything to go by.
For a country coming out of a decade-long recession, and needing over US$45
billion to fully recover, amounts declared to have gone to the fiscus from
last week's diamond auction are nothing more than small change, say economic
commentators.
Zimbabwe is struggling with dilapidated social and industrial
infrastructure, underperforming parastatals and biting electricity shortages
caused by failure to pay for power imports.
The sale of diamonds from Marange was suspended in 2008 after human rights
groups complained of gross human rights violations by the army against
illegal miners. Zimbabwe got the Kimberley Process Certification Scheme nod
to sell two supervised exports of rough diamonds by September after which
the KP monitoring team will decide whether the country has complied with its
standards before being allowed full exports.
Prime Minister Morgan Tsvangirai cautioned against exaggerating the benefits
that could accrue from diamond wealth when he officiated at last week's
diamond sale.
Still, this has not stopped the clamour for a share of the diamond cake.
Civil servants, earning salaries half the poverty datum line, have said
money from Marange diamonds should be used to improve their conditions.
Mugabe, speaking in China last week, said the money should go towards
agriculture, a sector his government in 2000 virtually killed following
violent land reforms.
Economic commentator John Robertson says it is too early to lay claim to
diamond funds, whose quantification is still subject to controversy and
allegations of missing cash.
"It's not clear how much Zimbabwe will get from the diamonds because
authorities are not clear with figures. The government's style of management
is suspicious. They should tell people the correct information concerning
the diamonds' value," said Robertson.
"We need to be cautious and really look at what is at stake for Zimbabwe
from the diamond sales. Whatever little amount is realised from diamonds
should be used carefully. There is no reason to splash billions on civil
servants' salaries when parastatals are bleeding. Government should place
its priorities right," said Robertson, a critic of Mugabe's economic
policies.
Though underpaid, government employees still chew up US$600 million in
salaries per year.
"Why should they (civil servants) get more money when service delivery is
crippled," said Robertson.
Chinyama said new legislation was necessary to plug irregular licensing and
illicit trade if Zimbabwe were to benefit  in the long-term.
"If the diamonds revenue circulate in the country, that would help in
solving liquidity challenges while regulations like the Diamond Act will
increase accountability," said Chinyama. He was referring to Biti's proposal
for a Diamond Act that would make state participation in all alluvial
diamond mining a pre-condition.
Even at its infancy, trade in Zimbabwean diamonds faces resistance in some
of the leading markets, leaving the stones vulnerable to under-pricing.
The New York-based Rapaport Diamond Trading Network, which links global
diamond buyers, has warned that it would shut out of its network any buyer
trading in Marange diamonds. Rapaport claims rights abuses by soldiers
guarding Marange fields are still rampant, rendering the stones dirty.

Brian Chitemba


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Villagers foil anti-outreach militants

http://www.theindependent.co.zw/

Friday, 20 August 2010 16:54

VIGILANT villagers this week stopped a group of axe-wielding militants from
disrupting a constitution-making outreach preparatory meeting in Nyanga
North constituency, according to constitutional reforms boss Douglas
Mwonzora.
Mwonzora, a joint chairman of the Parliamentary Select Committee, also known
as Copac, told the Zimbabwe Independent yesterday that the incident was one
of cases of violence affecting the constitution-making process.
He said seven people, armed with axes, stormed Nyadowa Business Centre, the
venue of the meeting, with the intention of attacking officials and
participants on Sunday.
"There was violence in Nyanga where seven people armed with axes tried to
stop a meeting I was addressing at Nyadowa Business Centre. The meeting had
about 500 people and it was a preparation to public meetings that were
starting this week," said Mwonzora, who is MP for the constituency.
Because of the big crowd at the meeting, he said, the men were apprehended
and were handed over to Nyamaropa Police Station.
Mwonzora's allegations contradicted statements by his co-chair Paul Mangwana
of Zanu PF who this week accused the media of misleading reportage on the
level of constitution-related violence. The Joint Monitoring and
Implementation Committee (Jomic) also dismissed reports of violence in
Bikita.
Police spokesman Oliver Mandipaka, who had promised to verify the incident,
had not done so by the time of going to print. But police officers from the
area who cannot be named because they are not authorised to speak on behalf
of the force confirmed the incident.
Meanwhile, independent monitors, Zimbabwe Lawyers for Human Rights (ZLHR),
Zimbabwe Election Support Network (Zesn) and Zimbabwe Peace Project have
reported more disturbances affecting the process.
The organisations, which have deployed monitors countrywide, said an
outreach meeting was cancelled in Chipinge on Saturday after disagreements
on sitting arrangements degenerated into clashes between Zanu PF and MDC
supporters. Two people were injured during the commotion at Checheche
Primary School and were rushed to the nearby St Peters Hospital.
In Mashonaland West province the MDC-T alleged that rapporteurs were forcing
participants to vote, by a show of hands, on various talking points.
MDC-T Mashonaland West provincial coordinator David Mangezi said some
villagers in Hurungwe and Chegutu said the pattern had left villagers
intimidated and afraid to publicly offer views.
"In areas like at Alpha Farm one person would stand up and say we want
devolution of power and the rapporteurs would ask those who supported this
view to raise their hands voting for his suggestion. The rapporteurs would
do the same with those who disagreed with that particular point," said
Mangezi.
He alleged that a number of war veterans were intimidating villagers in
areas like Kazangarare.
Commenting on the allegations, Mwonzora said no one was allowed to cause
people to vote on any matter.
"It is not allowed. We are not carrying a referendum. People must not be
allowed to vote. Rapporteurs must agree on how to assess the popular
position," he said.

Wongai Zhangazha


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Sanctions to go only after ‘real and tangible’ reforms

http://www.theindependent.co.zw/

Friday, 20 August 2010 16:53

SANCTIONS imposed on President Robert Mugabe and his close associates will
remain until the implementation of democratic reforms in Zimbabwe, the US
ambassador has said.
Charles Ray, the US ambassador, told a roundtable discussion with senior
editors in Harare on Wednesday that his country, the world’s largest
economy, would consider lifting the sanctions only if there was “real and
tangible” reform.
Ray was reacting to the decision by Sadc leaders this week to intensify
pressure for the removal of the sanctions, which they say are hurting
Zimbabwe’s economy.
He described the sanctions, imposed in 2001, as a reaction “to a situation
that was hurting the people of Zimbabwe and when that situation is rectified
then there is no need for them”.
“If you read the language of these various sanctions or restrictive
measures, they all point to the fact that the motivation behind them was the
human rights violations that were violent and blocking progress,” said Ray.
“This part gets ignored. They are sanctions that are designed to try and
influence behaviour that creates a better Zimbabwe for the people.”
Ray’s comments put the issue of sanctions into perspective as some lawmakers
in the US congress have been pushing for the repeal or amendment of the 2001
sanctions law, known as the Zimbabwe Democracy and Economic Recovery Act
(Zidera).
At the beginning of this month, US Senator, Jim Inhofe (Oklahoma) introduced
the Zimbabwe Sanctions Repeal Act of 2010 seeking to lift economic sanctions
imposed on the country.
Inhofe said the government of national unity had resulted in the recovery of
Zimbabwe’s economy and a repeal of Zidera was necessary to fully restore
the economy and assist the transition to
democracy.
Inhofe’s Bill becomes the second proposed legislation aimed at repealing
Zidera. Senator Russ Feingold, supported by two other senators, Johnny
Isakson and John Kerry, introduced a Bill in May this year called the
Zimbabwe Transition to Democracy and Economic Recovery Act to replace
Zidera.
Feingold’s Bill sought to “update US policy and authorities and help advance
genuine transition to democracy and promote economic recovery in Zimbabwe”.
Ray acknowledged the two proposals, but said they were not government policy
as they only represented the views of the sponsors.
Mugabe and long term rival and now Prime Minister Morgan Tsvangirai promised
economic stability and democratic reforms as part of their power sharing
arrangement.
Ray said while there had been progress in some areas such as the elimination
of hyperinflation and reduction of cases of violence, more needed to be done
to open the political and democratic space which he classified as still
closed.
“There is need for more freedom of information, there is need to air
different ideas” said Ray. “Zimbabwe’s situation is not simple, and it does
not lend itself to a simple sound bites solution,” he said. “It requires
very intense and reasoned analysis and a response that takes into account
that there are a lot of people who are involved in the decision-making
process and whose interests have to be taken into account. And my
recommendation in general is let us look at what is in terms of what we
would like to see and not focus on individuals.”
Relations between Zimbabwe and the US deteriorated in the past decade to a
level “of name-calling,” according to Ray, adding that while there was still
“some negative spin” it was less vitriolic than in the past.
“My philosophy is I do not have time for name- calling,” said Ray. “I feel I
am here to represent the interests of the American people and the US
government and in the process to try and help Zimbabweans have a good life.
When little negatives arise, I treat them like a speed hump on the way. I
slow down and drive over.”
He said despite the sanctions, trade between Zimbabwe and the US has trebled
during the first half of the year compared to the same period last year.
“In the first six months of this year, Zimbabwe’s exports to the US were
more than three times higher than in the first half of 2009,” said the
ambassador without giving figures of the volume of trade. “The year-on-year
increase in bilateral trade volumes exceeds 50%,” he said
On possible elections next year, Ray said only Zimbabweans should decide on
the issue, but warned against a flawed process.
“The question whether or not the people of Zimbabwe are ready for elections
is one for the people of Zimbabwe because they are the ones that would do
the voting and live with the outcome,” he said. “There are certainly things
at a minimum that need to be done for an election to be effective. They have
to be free of violence and intimidation.”
Despite frosty relations between the two countries, the US continues to fund
humanitarian projects in the country.
Following a US$310 million commitment for humanitarian assistance made by
President Barack Obama after meeting Tsvangirai in 2009, the US increased
assistance this year by 20% in the budget to fight HIV/Aids.
Ray said the US President’s Emergency Plan for Aids Relief budget for 2011
would rise by US$10 million to a total of US$57,5 million. In addition, the
US would continue to support Zimbabwe’s scale up of antiretroviral
treatment. — Staff Writer.


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‘Parastatals derailing economic recovery’

http://www.theindependent.co.zw/

Friday, 20 August 2010 16:46

STATE Enterprises and Parastatals minister Gorden Moyo has warned that
Zimbabwe’s economic recovery could be hamstrung by poor performance of
loss-making government companies.
Moyo yesterday told delegates attending a convention on best practices in
leading and managing “exceptional” state-owned enterprises and parastatals
in South Africa that Zimbabwe’s recovery from the decade-long recession
could be retarded by a host of problems affecting financially beleaguered
government-owned companies.
“The combined effect of political and economic challenges had a severe
impact on almost all State-Owned Enterprises (SOE) in the last decade and
the consequences could be far more devastating for the country in future
unless appropriate measures are put now,” Moyo said.
Zimbabwe’s parastatals continue to be saddled by a huge debt overhang that
has resulted in serious deterioration of infrastructure due to limited
maintenance.
Investors, according to Moyo, continue to shy away while working capital and
external lines of credit are elusive.
“Our kingpin in turning around the fortunes of SOEs is adopting the global
best practices, especially corporate governance,” he added.
The  minister  said government is at an “advanced stage” of formulating a
Corporate Governance Framework for state enterprises and parastatals.
He said the new measures would, among other reforms, ensure more disclosure
in parastatals and introduce performance-based management.
His remarks come after Finance minister Tendai Biti last month projected the
economy to grow by a modest 5,4%, marking a downward revision from an
initial projection of 7,7%. Biti said the projected growth would be driven
by a rebound in the agricultural sector.
Meanwhile, the ZSE last month asked Indigenisation minister Saviour
Kasukuwere to push for the privatisation of troubled parastatals in line
with the empowerment regulations gazetted earlier this year.
The exchange argued that since independence in 1980, former parastatals,
Dairy Marketing Board now ZSE-listed Dairibord and Cotton Marketing (now
Cotco but trading on the exchange as Aicco) successfully turned around
business fortunes after government weaned off the companies.
The ZSE is targeting parastatals that include power utility Zesa, the Grain
Marketing Board, National Railways of Zimbabwe, unreliable public
transporter Zupco, national carrier Air Zimbabwe, Zimbabwe Iron and Steel
Company, Minerals Marketing Corporation of Zimbabwe and telecommunications
companies NetOne and TelOne.
Government has already categorised public entities into three broad
categories –– those to be commercialised, those to be privatised and those
to be restructured although it remains  tight-lipped on which enterprises
would be affected.
Moyo however said his ministry would ensure “the end of ad hoc approaches to
policies resulting in contradictions and counter production” to the
lethargic privatisation process.

Bernard Mpofu


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Ministers resort to Avenues flats

http://www.theindependent.co.zw/

Friday, 20 August 2010 16:45

SOME cabinet members are living in a block of flats in the Avenues area in
Harare due to shortages of official accommodation, amid reports that former
ministers and senior government officials were refusing to vacate state
houses.
Housing and Social Amenities minister Giles Mutsekwa has since threatened to
evict the ex-ministers in the next two weeks.
The Zimbabwe Independent established that several cabinet members, among
them, Minister of State Enterprises and Parastatals Gorden Moyo, Minister of
Water Resources Samuel Sipepa Nkomo and Minister of Public Works Joel
Gabbuza were living in a block of flats in the Avenues.
The Avenues, an area with little security, is Zimbabwe's centre for red
light vices such as prostitution and drugs.
Mutsekwa last week told the Independent that he was compiling a
comprehensive record of former government ministers and bureaucrats still
occupying state houses.
According to Mutsekwa, ministers were entitled to an official residence
secured by the Police Protection Unit (PPU), an official Mercedes Benz and
personal aides as part of their employment benefits.
He said government was paying exorbitant rentals for serving officials who
did not have official state accommodation.
This, he charged, was because former Zanu PF cabinet members, widows of top
Zanu PF chefs and connected former top government officials were reluctant
to move out and pave way for people who should legitimately occupy the
houses, he said.
"I will evict former government ministers who are living in state
properties. When I evict the ministers, some former government officials
will also be thrown out by officers from my ministry," said Mutsekwa, who
himself does not have an official residence despite his ministry being in
charge of the properties.
Mutsekwa said the cash-strapped government was forking out US$1 000 per
month in rentals for each of the ministers without official accommodation.
"Official residence will cushion the lowly paid civil servants who include
ministers. When we assumed office, we used to stay in hotels but that was
highly costly for the government and we sought alternative accommodation.
"The problem is that those who don't deserve the houses are occupying the
properties and I am saying no to that," he said. "In fact, we are supposed
to have vacant houses but the former government workers took advantage of
lack of records."
Sipepa Nkomo said government should urgently correct the situation because
areas such as the Avenues posed a security risk.
"I am squatting in flats in the Avenues," fumed Sipepa Nkomo, whose
parliamentary constituency is Lobengula in Bulawayo. "I am staying in the
same block of flats with other ministers.
"It is worrying that we are struggling to get accommodation while civil
servants, some of whom have left the country, have given the houses to
relatives and friends."
Moyo said efforts to get a government house were so far unsuccessful.
"I don't have a house and I'm staying in a flat which I looked for because
of a shortage of accommodation although we are told of former ministers and
civil servants living in state properties," he said.
Almost all MDC ministers are without official houses, and the Speaker of
Parliament Lovemore Moyo, an MDC official, is also living in a rented house.
A top MDC-T official said it was worrying that none of the ministers from
his party were allocated a house except for Prime Minister Morgan Tsvangirai
who was allocated a house in Highlands after President Robert Mugabe refused
him access to  Zimbabwe House.
Tsvangirai is still living at his family home in Strathaven because the
Highlands house is undergoing renovations.
"That's a big scandal and something should be done to correct the
irregularity," said another minister, who refused to be named.

Brian Chitemba


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‘Women being silenced in constitution process’

http://www.theindependent.co.zw/

Friday, 20 August 2010 16:44

THE Women’s Affairs, Gender and Community Development ministry has raised
fears that women, who constitute the highest number of participants in the
constitution-making process, are being intimidated into silence at outreach
meetings.
Women make up slightly over 41% of participants to the outreach programmes,
while men contribute 38,7%, with youths making up 19,4%. People with special
needs make up the least number of participants at 0,52%, according to
statistics released by the Parliamentary Select Committee also known as
Copac.
Women’s Affairs, Gender and Community Development Deputy Minister Jessie
Majome said despite an encouraging attendance by women, her ministry feared
that intimidation reduced them to mere spectators.
“The statistics given by Copac are merely attendance figures and that means
we cannot gauge the quality of their participation. Women have a tendency of
not participating in fear of intimidation and would rather just agree to
what the rest are comfortable with,” she said this week.
Political issues such as the separation of powers and presidential powers
and term limits have dominated debate on the constitutional reforms. This,
according to civil society groups monitoring the process, had reduced key
social and gender issues to the periphery.
Majome said the tendency was for men, particularly youths, to threaten women
into silence, including on issues that specifically related to women’s
affairs.
“During outreach meetings there are men who have a tendency of discouraging
women, for example, from opposing a point like ‘we do not want women to wear
trousers’ which instills fear in women resulting in them complying  with
whatever is  suggested  because they fear they will get into trouble if they
go against it,” said Majome.
Majome said women’s affairs were a sector that needed special attention in
the constitutional reforms.
“It is important that when women attend the constitution-making process they
are free to air out their views. This is because some areas like civil
rights, children’s rights and basis of custom and culture need their special
participation,” she said.

Winfilda Shana


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Poor resource usage: A potential cause of conflict

http://www.theindependent.co.zw/

Friday, 20 August 2010 16:33

RURAL poverty is deepening in Zimbabwe, a country endowed with vast mineral
and other resources. Reports show that more rural people are vulnerable
today than at Independence, increasing the spectre of instability as
resources continue to be plundered ahead of development.
Community-based economies that could provide jobs and improve the lives of
rural people, where the majority of Zimbabweans live, have failed.
A case in point is the Communal Areas Management Programme for Indigenous
Resources (CAMPFIRE) that was launched in 1989 to assist communities in
managing and benefitting from wildlife resources. Communities under the
CAMPFIRE project are supposed to benefit from trophy hunting but in most
instances, local authorities have diverted the funds, taking advantage of
the low levels of literacy and knowledge of financial accounting among rural
folk.
In many instances in Zimbabwe, the problem facing rural communities is
either the lack of will power and capacity to embark on business or a lack
of locally based resources.
Rural communities are generally living on less than a dollar a day despite
sitting on billions of dollars worth of resources, a situation that has
resulted in armed combat in countries such as Nigeria.
In Zimbabwe, the discovery of resources has often led to even deeper
suffering for community members while foreign companies and politically
linked individuals enrich themselves.
Communities have been displaced as soon as resources are discovered in their
areas. Years later, as foreign elements make a mint, local people have
nothing apart from bitter memories to show that they once lived in resource
rich areas. The Marange issue, where families forcibly removed from diamond
rich lands are being dumped at a disused farm only represents the most
recent example of government neglect.
Their situation is reminiscent of that of the Tonga people who, in the
1950s, were displaced to make way for the construction of Kariba Dam, which
today generates electricity for Zimbabwe and Zambia.
Half a century later, many Tonga community members have no access to
electricity and the lucky ones with an extra dollar resort to candles and
hazardous paraffin lamps. Most youths, failing to get a piece of the
lucrative fishing and tourism business generated by the dam, skip to South
Africa. In the streets of Johannesburg, they do menial, low paying jobs and
stay in shacks, forever fearing xenophobic attacks.
In Mutoko, the community wallows in poverty, making a living from poorly
resourced farming ventures. But daily, trucks traverse the dusty, poorly
maintained roads transporting black granite for export.
While Mutoko residents may not have been moved to make way for the
extraction of giant rocks, the same could not be said about the Marange
communities who are cursing the discovery of diamonds in their area.
The manner in which families are harassed by soldiers guarding the fields,
denied employment by private firms mining there, and for some, relocated to
an abandoned farm, exposes how communities are detached from local resources
in Zimbabwe.
Phillip Pasirayi, the executive director of the Centre for Community
Development (CCDZ), an organisation working with different communities
across the country, said it was important for local people to benefit from
resources.
"We are opposed to the siphoning of resources to benefit a few politicians
in government," said Pasirayi. "We want these resources to benefit the local
people who suffer damaged environments."
Pasirayi's organisation has produced a paper on local government reforms
advocating for legislation that explicitly allows local authorities to
benefit from resources found in areas under their jurisdiction.
Pasirayi said his organisation advocated for companies to satisfy minimum
standards of corporate social responsibility before being awarded contracts
to extract resources.
South Africa's state-owned Royal Bafokeng Resources Holdings which partnered
Impala Platinum to extract the mineral from that country's Bafokeng
community provides such an example. The community has a significant stake in
the company and development around the area is visible.
The situation is different in Zimbabwe, where secrecy surrounds the value of
natural resources.
It is not clear, for example, how much diamonds from Marange are worth. The
maiden auction of 900 000 carats last week caused more confusion, as
official figures kept changing.
Analysts say while Zimbabwe's population is largely peaceful, the nature of
resource allocation was unsustainable for the country's long-term stability.
In Nigeria for example, communities mobilise, sometimes militantly, to
demand a share of natural resources.
The dictatorial Sani Abacha regime hanged activist and writer Ken Saro Wiwa
in 1995 for speaking out against the environmental damage caused by Shell
Oil to the Niger Delta. Wiwa brought international attention to Shell Oil,
which had been extracting the precious liquid from the country for 37 years
then, allegedly contaminating the air, water and land used for agricultural
purposes.
There are no Wiwas in Zimbabwe, and communities continue singing the blues
while the fat cats whistle all the way to the bank. Analysts, however, warn
this could be unsustainable.
In a paper presented last year, the Centre for Humanitarian Dialogue, an
independent Swiss foundation dedicated to helping improve the global
response to armed conflict, pointed out that failure to properly manage
natural resources was a potential cause of conflict.
While these issues are especially important in decentralised nations and are
particularly salient in a federal context, they can arise in any state
confronted with demands for increased autonomy over local resources from
individual communities, said the authors of the report, titled Negotiating
Natural Resources for Peace: Ownership, Control and Wealth-sharing.
Under these circumstances, the framework for the treatment of natural
resources can strengthen a nation or cause conflict.
While chances of serious conflict over resources, along the lines of what
happens in West Africa, may be remote in Zimbabwe, the authors said it was
important to include provisions on natural resources in the constitution.
Some local organisations have seized the debate on constitutional reforms to
push for provisions that would guarantee the accrual of benefits to
communities living in resource rich areas.
Shamiso Mtisi of the Zimbabwe Environmental Lawyers Association said there
should be provisions in the founding principles of the constitution that
guarantee transparency and accountability when dealing with natural
resources.
The Bill of Rights should have something that relates to economic rights,
said Mtisi.
The constitution should also guarantee rights to communities and access to
justice in situations where their rights have been violated.

Leonard Makombe


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Zim issue suspiciously blocked from Sadc debate

http://www.theindependent.co.zw/

Friday, 20 August 2010 09:33

ACCUSATIONS of political chicanery at the just-ended South African
Development Community (Sadc) summit in Windhoek, Namibia, have surfaced
following the failure of regional leaders to fully discuss Zimbabwe in their
main proceedings and reflect the issue in detail on the communiqué.
Diplomats and representatives of political parties at the summit say that
the issue of Zimbabwe was abandoned midstream after it was initially
discussed comprehensively by the Sadc troika of the organ on politics,
defence and security at the opening of deliberations  on Sunday. This raised
eyebrows, with claims that President Robert Mugabe had used his influence,
as he did at the Democratic Republic of Congo last year, to block the issue
from a full discussion by the summit.
Those who spoke to the Zimbabwe Independent said the proceedings started
well with the organ on politics, defence and security meeting focusing in
detail on Zimbabwe before the issue was "blocked" from a full discussion by
the regional leaders at the summit.
The Zimbabwe issue was mainly discussed after a briefing to the Sadc organ
on politics, defence and security by South African President Jacob Zuma, the
regional body's facilitator on the matter. Zuma's report was fully adopted
by the organ on politics, defence and security which was chaired by
Mozambican President Armando Guebuza and the summit which met on Monday and
Tuesday.
"President Zuma briefed the organ on politics, defence and security on the
Zimbabwe issue and his report was unanimously adopted. What was supposed to
happen was that Guebuza should have then briefed the summit and the leaders
would have discussed the issue. But the Sadc secretariat blocked the issue
on behalf of Mugabe and as a result it was not fully discussed as it should
have," one diplomat said.
"There was chicanery and as usual the Sadc secretariat was used to ensure
that the Zimbabwe issue was not wholly discussed and proceedings on it not
fully reflected in the communiqué."
A senior politician from the MDC-T said there was "mafia" in the Sadc
secretariat which did a "hatchet job" on behalf of Zanu PF to protect Mugabe
from rigorous engagement by his counterparts at the summit. "The mafia in
the Sadc secretariat intervened and blocked a full and proper debate on
Zimbabwe at the summit level. The same mafia manipulated the communiqué to
downplay the Zimbabwe issue," the MDC-T official said. "But all the same the
issue received full attention at the organ on politics, defence and security
and that is what is important."
MDC-T secretary-general Tendai Biti said his party was "reasonably happy"
with discussion on Zimbabwe in Windhoek, although all the proceedings were
not fully captured in the communiqué.
"There has never been a Sadc so focused on Zimbabwe," he said on Wednesday.
"Most of the issues on Zimbabwe were raised by the facilitator (Zuma) at the
meeting of the organ on politics, defence and security although the
communiqué does not capture everything. The communiqué is just a summary."
Biti emphasised at a media briefing on Wednesday issues raised in Zuma's
report and its recommendations which he said were "endorsed and accepted by
the full summit" rather than the communiqué.
He said it was now "critical for flesh to be put into the summit decisions"
and highlighted the need to fully implement agreed issues in the Global
Political Agreement, strengthen the Joint Monitoring and Implementation
Committee, various reforms including on the economy, electoral framework and
media, and the National Security Council.
However, Deputy Prime Minister Arthur Mutambara had a different view from
Biti on the outcome of the Sadc meeting. He said the most important
resolutions of the Sadc summit were only those "captured in the communiqué",
not "opinions" of political parties after the meeting.
"If you want to know Sadc's position on Zimbabwe and the most important
issues it discussed at the summit just read the communiqué," he said.
"Everything else is just people's views and opinions."
Prior to the meeting there was a battle between Mugabe and Prime Minister
Morgan Tsvangirai to influence events at the Sadc summit. Mugabe wanted the
issue to down-played and it appears in a way he succeeded. Tsvangirai
managed to force a full discussion at the organ on politics, defence and
security, although the communiqué did not capture that.
Mugabe appears to have done his work before the summit, judging by his
spokesman George Charamba's remarks. Charamba was categoric that Zimbabwe
would not be a big issue at the summit.
"It (Zimbabwe) will not be an issue at the summit," he said days before the
summit. "What will happen is that the facilitator (Zuma) will give an update
to the troika (peace and security) which will brief the summit as a point of
information and not of discussion."
Charamba seemed convinced Zimbabwe would be raised "as a point of
information and not discussion" and that seems to have been the case
although there was vigorous debate at the organ on politics, defence and
security. Mugabe is happy with the outcome of the summit as a result.
The meeting of the organ on politics, defence and security started with Zuma
presenting his report in which he chronicled events from up to the time when
the principals agreed on 24 of the 27 outstanding issues. He gave the matrix
of implementation agreed upon by the principals.
Mugabe then thanked former South African president Thabo Mbeki, Zuma and the
organ on politics, defence and security. He said three quarters of what Zuma
said confirmed the narration of events. Mugabe did not initially agree with
Zuma on parts of his report on the "road ahead" although he later concurred.
Tsvangirai raised issues about the need for permanent representatives in
Zimbabwe of Sadc and the African Union as guarantors of the GPA. He
recommended that Sadc second a person to Jomic which he said should now be a
statutory body. The premier said he agreed with the recommendations made by
Zuma.
Mutambara told the organ on politics, defence and security that the meeting
should not be bogged down on a debate about elections but should instead
focus on GPA implementation. Mutambara, with the concurrence of Mugabe, said
there should not be external interference in Jomic. He recommended that
Jomic reports to the principals on the work they are doing. The meeting
lasted less than an hour.
The row over the Sadc summit proceedings and communiqué is likely to raise a
storm at the secretariat in the next few weeks as parties and their leaders
begin to stock and act on what they consider to be "damaging political
shenanigans" that characterised the summit.
Efforts to get comment from Sadc executive secretary Tomaz Salomao on the
issue failed this week.

Dumisani Muleya/Faith Zaba


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‘RBZ must retrench’

http://www.theindependent.co.zw/

Friday, 20 August 2010 09:30

THE Reserve Bank of Zimbabwe board has ordered the central bank to cut —
with or without packages — three quarters of its staff to match its scaled
down operations and avoid a ballooning retrenchment bill.
An International Monetary Fund (IMF) team which was in the country made
similar recommendations when it met RBZ officials on Tuesday, according to
central bank sources.
The IMF team visited the RBZ on Tuesday and was locked in marathon meetings
from morning until 8pm to push for critical reforms.
The sources said the IMF team further recommended an audit of the RBZ
structures following allegations that there are “ghost workers” milking the
bank’s dry coffers.
According to the sources, the board wants to retrench 1 500 workers,
retaining over 500 who will work on the RBZ’s now lean duties.
“There is a concern that if the bank keeps the workers for a longer period,
the package will be ballooning, so they have to go,” said a central bank
insider, speaking on condition of anonymity.
RBZ officials told the Zimbabwe Independent this week that central bank
board members met the RBZ governor and board chairman Gideon Gono and
management in July where they agreed to take the drastic measure. The RBZ
bloated its staff during Zimbabwe’s crisis  when the bank took over the
financing of virtually all of Zimbabwe’s sectors, including parastatals and
local councils.
Finance minister Tendai Biti, appointed to the portfolio in February last
year, stopped the bank’s involvement in quasi-fiscal activities that had
turned into a gravy train for politically connected individuals.
He appointed a new RBZ board in May this year to transform the central bank’s
operations and deal with a plethora of major challenges, including devising
methods to clear a staggering US$1,2 billion debt.
Some of the new board members are deputy chairman Charles Kuwaza, finance
ministry permanent secretary Willard Manungo, retired judge George Smith,
lawyer Modercai Mahlangu, labour expert Godfrey Kanyenze and leading
academic Professor Primrose Kurasha.
Sources at RBZ said retrenchment had been delayed by lack of money to pay
packages for affected workers, the majority of who were hired by Gono when
he assumed office in 2003.
“A clean-up is looming at the RBZ following a board meeting in July that
resolved to lay off workers because they can’t even pay salaries. The RBZ
board said 2 000 employees should lose their jobs in the near future; It’s
not yet clear when the workers would be retrenched but it’s soon,” said an
RBZ official.

Brian Chitemba


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ZMDC executives financial scandal deepens

http://www.theindependent.co.zw/

Friday, 20 August 2010 09:25

THE financial scandal rocking state-owned Zimbabwe Mining Development
Corporation (ZMDC) has deepened amid further revelations that the company's
suspended top managers, including CEO and general manager Dominic Mubayiwa,
invested millions of dollars in the money market while the corporation's
mines were being closed.

A confidential ZMDC report in possession of the Zimbabwe Independent show
that Mubayiwa and his suspended colleagues are being investigated for
investing at least US$9 million in the money market while they let
ZMDC-owned mines shut down due to lack of capital.

As reported in the Independent last week, ZMDC is also is investigating the
suspended Mubayiwa and three other company executives over the alleged
siphoning and shady usage of US$40 million in gold and diamond proceeds.

"Each time they were asked about the US$12 million taken from gold proceeds
to open a diamond mine, the US$30 million raised from diamond sales between
October 2008 and April 2010 and the US$9 million invested in the money
market while mines closed down, they just raised dust and failed to provide
clear answers," a senior ZMDC official told the Independent. "They didn't
provide clear explanations, they just raised bull dust."

Documents show that Mubayiwa and his colleagues invested millions of dollars
in fixed return securities in banks and asset management companies. The
records show that between March and April, Mubayiwa and his team poured
money into Premier Bank, Kingdom Bank, BancABC, Interfin, Fidelity Asset
Management and Premier Asset Management.

"Proceeds from diamond sales were invested with financial institutions
instead of being utilised to capacitate the gold mines," the report says.
"The primary function of the Zimbabwe Mining Development Corporation is to
invest in the mining industry in Zimbabwe on behalf of the State and not to
invest on the money market. Part III, Section 20 of the ZMDC Act clearly
articulates the primary function of the corporation," the official said. \

The report, titled ZMDC - Forced leave: The General Manager Mr Dominic
Mubayiwa and Three Others to Facilitate Investigations into Allegations of
Misconduct, says "thorough investigations into the utilisation of the
corporation's funds are now being carried".

According to the ZMDC report, the investments in the money market included:

    * US$403 176.44 at Fidelity Asset Management invested on 22/03/10 which
had a maturity date of 16/08/10)

    * US$1 064 577.36 at Premier Asset Management put at 15/04/10, maturity
date 30/07/10

    * US$1 064 577.36 at Premier Bank 16/04/10, maturity date 29/07/10

    * US$742 000 at Kingdom Bank invested 22/03/10, maturity date 29/07/10

    * US$1 800 00 at BancABC deposited on 20/04/10, maturity date 29/07/10

    * US$2 000 000 Fidelity Asset Management put on 28/04/10, maturity date
18/10/10 and,

    * US$2 055 000 at Interfin on 27/04/10, maturity date 28/12/10

Repeated efforts to contact Mubayiwa this week over the issue were
unsuccessful.

However, sources said while it was not clear why the ZMDC management chose
to invest in the money market while mines were closing down, usually heads
of state enterprises do that to get the returns from such investments. Mines
were also allowed to shut down so that they could later be sold for a song,
the sources said.

While the suspended ZMDC officials invested funds in the money market, mines
were shutting down. Sandawana mine has virtually closed due to lack of
working capital.

"The management chose to invest on the money market instead of capacitating
the corporation's mines," the report says. "Kamativi mine has proven huge
tantalite and lithium deposits in its dumps. About US$3 million is required
to exploit these deposits. Income generated from selling the minerals will
then be used to fully operationalise Kamativi. However, management chose to
invest in a bank instead of investing in the mines."

ZMDC under Mubayiwa also failed to pay government serious dividends although
it had money in the fixed return securities.

"The first ever dividend of US$1 million was in March 2010 and US$3 million
dividend paid on July 26 2010 was only made after the board insisted to
management that one of ZMDC's responsibilities was to generate revenue for
the fiscus," the report notes.

Dumisani Muleya
 


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Principals clash over elections

http://www.theindependent.co.zw/

Friday, 20 August 2010 09:20

A ROW is brewing within the inclusive government over the timing of the next
elections and the level of Sadc's involvement in any such polls as regional
leaders increasingly view fresh free and fair polls as the way out of
Zimbabwe's decade-long political stalemate.

President Robert Mugabe has made it clear that he wants early elections with
or without a new constitution. Mugabe's position, which he reflected at this
week's Sadc summit in Namibia, is that elections should immediately follow
the referendum of the draft new constitution whose crafting is underway.

The process is expected to be completed in the first quarter of next year.

The Global Political Agreement provides a framework for constitutional
reforms that should lay the basis for future credible elections and
political stability.

Mugabe wants the coalition government to stick to the GPA roadmap, instead
of adopting Prime Minister Morgan Tsvangirai's proposal for Sadc to come up
with a guideline and framework for the next elections. Mugabe is resisting
Sadc's deep involvement in the elections.

Tsvangirai wants elections, but believes Sadc, guarantors of the GPA, should
to play a central monitoring role. The prime minister told diplomats and
civil society in separate meetings yesterday that Sadc should be involved in
Zimbabwe's elections.
The issue of elections which was raised at the Sadc summit left the parties
and their leaders divided.
While Mugabe wants the elections under the prevailing conditions - without
many changes to the status quo and without Sadc's strong involvement -
Tsvangirai wants the elections after the referendum, provided that the
conditions for free and fair elections would have been created.

Tsvangirai's party, MDC-T views the issue of elections which was raised in
South African President Jacob Zuma's report as one of the key outcomes of
the Sadc summit. Zuma is Sadc's facilitator in Zimbabwe.

Zuma's report, on its section of the Road Ahead, flagged the issue of
elections. It said the agreement on outstanding issues and their
implementation would "lay the basis for the conviction to grow that Zimbabwe
can reach her goal of holding free and fair elections whose results would be
acceptable to all".

"The critical issue is to ensure a sustained focus on developments in
Zimbabwe towards elections; the monitoring of the situation and timely
interventions to deal with problems as and when they arise," Zuma said.
"Leading to the elections, the inclusive government should be united in its
effort to ensure everything is in place for the elections. The
constitution-making exercise, as well as the referendum on that
constitution, should be a joint task of all parties in the inclusive
government."

Zuma said the inclusive government should find "an uninterrupted path
towards free and fair elections and the removal of impediments as and when
they arise". He also said the troika of the organ on politics, defence and
security should persuade Sadc to "draw up guidelines for free and fair
elections where intimidation and violence would not play any part and where
the result of such elections would be credible".

MDC secretary-general Tendai Biti emphasised Zuma's report during a press
briefing on Wednesday, saying the report was "endorsed and accepted by the
full summit".

However, Deputy Prime Minister Arthur Mutambara said the issue of elections
was not an important matter as far as Sadc was concerned. He said what was
important at the moment was to fully implement the GPA and create conditions
for free and fair elections, instead of harping on about elections when the
situation on the ground had not changed much.

"The Sadc summit was a victory for the people of Zimbabwe. It was a
statement of acknowledgement of the progress Zimbabweans are making in
implementing the GPA. All important issues discussed at Sadc are captured in
the communiqué. Those that are not in the communiqué are not important at
this stage. The issue of elections is not in the communiqué," Mutambara
said.

"Sadc carefully and deliberately crafted that communiqué. It was not an
accident. The communiqué only contains resolutions on important issues
discussed at the summit. The issue of elections is not there because Sadc
did not put any timeframes and dates for dates for elections.

Whoever says or insinuates there will be elections next year is basically
peddling lies. Some of these things were discussed by the organ on politics,
defence and security but they are not reflected in the communiqué because
they are not important. Sadc agreed that this talk about elections and the
political tensions created thereof will undermine the implementation of the
GPA and thus the prospect of free and fair elections."

Mutambara said political parties should "avoid playing to the gallery and
trying to score cheap and meaningless" on such a "critical issue" as
elections.

"Sadc did not decide anything on elections; the issue was discussed by the
troika but no timeframes were put. Let's not try to score political points
by creating unmitigated confusion over such a clear issue. The question in
Zimbabwe is not when should the next elections be held but what will be the
conditions, the quality and credibility of those elections. The Sadc
communiqué clearly captures what happened at the summit. Political parties
can have their opinions but that should not be confused with the Sadc
position which is clearly stated in the communiqué."

While the parties fight over what Sadc resolved about elections in Zimbabwe,
there are also serious problems within the parties over the polls.

Informed sources told the Zimbabwe Independent that even though Mugabe and
Tsvangirai want elections, their party officials and structures were
resisting.

Sources said most senior Zanu PF officials and MPs were against Mugabe's
position on the need for an early election because they fear he might lose
again. The sources say even the Joint Operations Command, which brings
together army, police and intelligence chiefs, and was instrumental in
Mugabe's disputed re-election, is not convinced by Mugabe's push for early
elections.

Although Zuma said Sadc wanted free and fair elections in Zimbabwe, the
decision on the timing of the polls would be decided government's
principals.

Biti told journalists this week that there was no timeframe set at the
summit but that an election was a process and there certain reforms that
needed to put in place before credible, free and fair elections are held.

"The summit did not define in terms of dates but in terms of sign posts and
landmarks. First there has to be the constitution-making process, then the
referendum," he said. "The other sign posts is to have a fresh voters roll
and we have to do the delimitation - all these things take a long time and
are  small bits that lead to decisive dates of elections. There is also need
for national healing."

Mutambara said harping on the issue of elections instead of creating
conditions for free and fair elections first was counterproductive.

MDC-M secretary-general Welshman Ncube said pronouncements on polls was
misplaced because there was no-one at the summit spoke about elections in
2011. He said elections would only be held after the full implementation of
the GPA, which would ensure conditions for free and fair elections.
Realistically, parties agree that it would appear as if the elections would
be held in 2013 although they do not want to say it in public.

Faith Zaba


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Zimbabwe’s route to recovery

http://www.theindependent.co.zw/

Friday, 20 August 2010 16:25

IN July, both the fiscal and monetary authorities laid down blueprints which
embodied various policy proposals for the economy and the monetary sector.
At face value, a country with an estimated unemployment rate of over 80%, a
debt overhang estimated at over US$6,7 billion, and manufacturing industry
operating well below full capacity, the pronouncements in those manuals
might be considered kindergarten solutions to the country’s economic
problems. The case of Zimbabwe’s economic recovery remains debatable in
public opinion where several advocates of economic growth and development
have continued to suggest differing solutions for the economy.
Several economic blueprints such as Sterp 1 &2, as well as the three year
Macroeconomic Framework, were introduced after the formation of the
inclusive government in a bid to resuscitate the ailing economy. But the
success of these roadmaps is being retarded by lack of funding. However,
notable progress has been made since the introduction of the multicurrency
system and the signing of the global political agreement  with the country
recording real GDP of 5,7% and improvement from 9-digit to single digit
inflation (June 2010 year on year was 5,3%).
For quite some time the country has been internationally isolated because of
various factors which are part of country risk ratings. Thus, the next
question would be: Does Zimbabwe’s economic condition defy universally
agreed economic principles? Across the world, each economy has a pivot
industry, for example, agriculture has always been the leading sector for
Zimbabwe before the economic malaise started. From recent budget review
figures, projected growth in the mining sector has overtaken agriculture in
total contribution to GDP.
In 2010, agriculture is expected to grow by 18,8% whilst mining is projected
to grow by 31% in 2010. In the mining sector the talking point currently is
the discovery of alluvial diamonds in Chiadzwa with some economic agents
saying that proceeds from exports could be a major contributor to the
national income, going forward.
The recent sales which generated $56 million have already raised
expectations in the country with the most notable one being suggestions by
certain sections of the civil service for the proceeds to be used to
increase salaries. While it is within any employee’s right to demand a raise
from the employers, it is regrettable that rather than prioritising growing
the economy, many are actually seeking just to boost their current
consumption. Although the National Treasury has been resolutely declaring
that ‘‘what we gather is what we eat’’, it will be imperative also to invest
what we gather to enjoy increased benefit later.
Part of the anticipated revenue streams should be deliberately channelled
towards the financial sector to enable banks to spread it to needy sectors
with the overall objective to increase productive capacity beyond 50%.
Critical areas such as energy also need to be prioritised in the deployment
of any revenue because it is difficult to grow the economy without adequate
and stable power supply.
Seesaw in business confidence, “business as usual mindset”, debt servicing
difficulties, policy discord and inconsistency in business law enforcement
add to the pool of factors which have deprived the country of foreign direct
investment , liquidity and foreign currency inflows thus corroding the
country’s economic growth engines. Mining, agriculture, manufacturing and
tourism have their targeted growth forecasts but high cost of funds and
shortage of capital has been problems for these sectors since the
introduction of the multicurrency system.
It is acknowledged that the pendulum had swung too far for Zimbabwe, but
there are various overlooked simple things which make us continue to revise
GDP or other economic growth indicators downwards. There is need to refocus
our own fundamentals which repel foreign direct investment, for instance,
and the ease of doing business in Zimbabwe. This refocus is a recovery
prescription for attracting foreign currency inflows in fragile economies
where low GDP levels reduce reliance on votes of credit.
Revenue generation enhancements measures which do not cripple industry and
investment promotion activities are important factors to achieve sustainable
economic recovery.
As the Finance minister Tendai Biti rightfully said, “Foreign direct
investment and indeed domestic investment are essential in expanding the
production base, thereby; creating headline employment, aggregate demand and
surplus rent which is the basis of savings and more investment.”
Recently, privatisation has been tabled, with the intention to
simultaneously boost revenue and improve efficiency in parastatals.
Privatisation of public utilities is commendable and has some success
stories but it has to be supported by comprehensive and consistent
privatisation law for it to be a success.
For the year 2010, growth was originally forecast at 7% but was revised down
to 5,4% by  Biti . The budget review coming with real GDP sweeteners and a
recast of the underlying fundamentals which propel us to reduce growth
forecasts is important. It might be an uphill task to achieve the forecast
without such a review given the already downgrade of 1,6 percentage points.
This would mean that we scout for another solution to improve foreign
exchange inflows essential for economic growth. Therefore, the road to
recovery may not require complex metrics as it is neither bumpy nor slippery
but rather in need of much more straightforward remedies.

Jealous Chishamba


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Lower prices hit late tobacco deliveries

http://www.theindependent.co.zw/

Friday, 20 August 2010 16:15

TOBACCO farmers keen to make a killing by holding onto their crop until the
end of the selling season have been caught out as prices have depreciated by
US52 cents since the beginning of the season.
According to figures at hand, prices fell as deliveries improved on the
auction floors.
Farmers had hoped to cash in on stronger prices of the crop owing to poor
crop supplies but prices have fallen from an average US$3,45 to US$2,93 per
kg. The downward trend on prices began in week five.
Zimbabwe has earned US$331,1 million from the sale of 113 million kgs of
flue-cured tobacco in both contract and auction systems since the beginning
of the 2010 tobacco marketing season, figures released by the Tobacco
Industry Marketing Board (TIMB) this week show.
Tobacco sales nearly doubled the 58 million kgs valued at US$174,4 million
sold during the same period last year.
Prices of tobacco have over the past two weeks been relatively lower than
last year, with the seasonal average at US$2,93 per kg against US$2,98 per
kg over the same period last year.
Presenting the 2010 mid-term fiscal policy, Finance minister Tendai Biti
said tobacco sales would contribute significantly to the revival of the
economy. He projected that 120 million kgs of tobacco would
have been sold by the end of the selling season.
In a telephone interview this week, TIMB acting CEO, Meanwhile Gudu, said
his company was yet to announce a date for the closure of the auction
floors.
"(Tobacco) Deliveries are still arriving; we want to find out how many
farmers are still on their way before we announce a cut-off date. Once that
is taken care of, we will then announce a date," said Gudu.
Tobacco deliveries have considerably increased from an average of around 420
000 kgs a day in the first two months of the season to an average 1,4
million kgs in June and July.
According to TIMB, the increase in deliveries has resulted in the national
output target for this year's crop being revised to 114 million kgs, from
the initial target of 77 million kgs.
According to TIMB, the first statistics were drawn from an early crop
assessment where most of the tobacco crop was affected by the dry spell that
hit most parts of the country.
A total of 1 350 422 bales have been sold compared to 697 313 during the
same period last year.
This year, 122 666 bales have so far been rejected compared to 44 407 last
year.
Government hopes that internally generated sources of funding such as
tobacco, diamonds and other metals' sales will play a critical role in
improving market liquidity and stabilising interest rates.

Paul Nyakazeya


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Gukurahundi, Lobengula raids worlds apart

http://www.theindependent.co.zw/

Friday, 20 August 2010 16:37

THERE is some fiercely contested perspective in Zimbabwe which has resulted
in a lunatic fringe that argues President Robert Mugabe must not apologise
for Gukurahundi atrocities until the Ndebeles themselves apologise for King
Mzilikazi's and his son Lobengula's raids in Mashonaland during their reign
prior to 1890.
I am aware that by exploring this issue I am treading on a minefield as by
Zimbabwean socio-political tradition, the subject is often
emotionally-charged and shrouded in great controversy; hence any attempt to
explore it can be easily misinterpreted or deliberately distorted.
Nonetheless, my instinct tells me that ignoring such a burning issue will be
tantamount to scholastic cowardice and burying our heads in the sand.
Perhaps the time has come for a constructive national debate on this topic
because we cannot go on like this, that is, if we are to continue calling
ourselves an independent country. We need to be independent politically,
economically and intellectually.
I can confidently say that while most Zimbabweans today feel Mugabe has
presided over a brutal regime that persecuted MDC leaders and supporters,
not much attention is being paid to atrocities before 2000, including
Gukurahundi massacres. Political violence in Zimbabwe did not start in 2000.
It has a long history.
Minister Sekai Holland claims the culture of violence was brought by
Mzilikazi, but that sort of claim can only come from conflict entrepreneurs
or merchants of lies.
The issue of Zimbabwe's political violence and atrocities must be understood
in its context, space and time.
There are those who claim the Gukurahundi massacres were a revenge for
Mzilikazi's and Lobengula's historical raids in Mashonaland region. By this
logic, it is claimed Mzilikazi and Lobengula committed atrocities in
Mashonaland hence Mugabe's retribution mission via the deployment of the
murderous Fifth Brigade to Matabeleland and Midlands areas where its killing
machine left 20 000 civilians dead.
Of course, Mzilikazi was not the architect of mfecane and attendant violence
(the time of trouble and mass migration) and the concomitant territorial
wars. Mfecane was there before Mzlikazi but it was fuelled by the rise of
Tshaka who triggered mass movements across the sub-region, from present day
South Africa across Swaziland, Lesotho, Mozambique, Botswana, Zambia, Malawi
and Tanzania.
Prior to the arrival of Mzilikazi in Zimbabwe there were fierce territorial
wars between the Shona and other tribes and among the Shona themselves. So
Mzilikazi did not introduce violence but struggled for survival within the
context and circumstances of the time where the politics of the spear and
assegai ruled in the absence of constitutional orders and the rule of law,
international laws and conventions to promote peace and stability.
Which brings me to the point that the Mzilikazi era which was precipitated
by the rise of Tshaka and mfecane belongs to the primitive era where there
were no nation-states and constitutional orders as we know them today. The
period was defined by the law of the jungle -- survival of the fittest --
and everyone fighting against everyone while the Gukurahundi era falls under
the modern era governed by international laws, including four Geneva
Conventions of 1949. The primitive territorial wars were obviously backward
and they happened under a completely different situation and different
circumstances.
It was only after 1945 that the world properly defined codes of conduct for
the army or any security agents to prevent primitive-style raids and wars.
These codes were put in place to assure the modern world that lessons have
been learnt and standards have now been set.
According to Gutman and Rieff (1999), the codes were intended to be a
firebreak between civilisation and barbarism. The difference between the
Mzilikazi era and the Mugabe period is like chalk and cheese in terms of
political order and international law; they clearly belong to different
epochs of civilisation.
The Nuremberg tribunals of 1945 set down the principle that there were such
things as crimes against humanity, systematic crimes against civilians that
can occur inside a country but that might be tried anywhere else.
After 1945, which became the fire break between civilisation and barbarism,
the power centres of the world went further and intertwined the country's
human rights record with the performance of the economy.
The Genocide Convention of 1948 gave legal meaning and force to the worst
crime in the lexicon. The 1949 Geneva Convention codified and advanced the
rules governing wars between states, differentiating legal conduct from
illegal acts of war.
Together with the two Additional Protocols of 1977, the Geneva Conventions
are the central summation of the agreed rules governing the conduct of war.
Perhaps it is important to know that at the heart of the international
humanitarian law are grave breaches such as targeting non-combatants or
civilians. These grave breaches or serious crimes are found in the four
Geneva Conventions of 1949 and the first Additional Protocol of 1977.
The Additional Protocol 1 of 1977 states that the civilian population as
such, as well as individual civilians, shall not be the object of attack.
Acts of threats of violence, the primary purpose of which is to spread
terror among the civilian population, are prohibited."
However, this law turns out to be customary because even if Zimbabwe has not
ratified it, its provisions are universally applicable. This probably
explains why President Mugabe cannot retire despite signs that he is too old
and tired. He knows that these international provisions can be easily
applied on him.
Most importantly, the post-1945 world, particularly the international
humanitarian law makes it illegal for anyone to support a mass-murderer --
doing so one can be easily branded an accomplice of mass murders.
It has been suggested in a certain vein of contemporary thought that if
scars of the past are hidden away there will always come a time when those
scars will suppurate and become a poison that will engulf all of us even the
future generations.
As a student of restorative justice versus retributive justice, I am an
advocate of psychotherapy and symbolical healing which comes in various
packs such as openly discussing burning issues that continue to blight our
beloved nation, Zimbabwe.
There is crystal clear evidence that Zimbabwe today is a deeply-divided
nation among the black community than it was before independence, hence the
need to come up with mechanisms to establish a stable country that functions
in compliance with the international humanitarian law.
I wonder how Mugabe wants to be remembered long after he is gone. The fact
that the Ndebele/Shona tribal tension has become intergenerational is
symptomatic failure of our politics and more so an indictment on our
leaders. It also reveals that our politics has for far too long thrived on
ethnic grounds, if not catalyse it. To be precise, our brand of politics has
suppressed public debate on burning issues such as the one under scrutiny
here.
Those who say Mugabe should not apologise and redress the Gukurahundi
situation until Ndebeles (who among the Ndebeles) apologise for Mzilikazi's
and Lobengula's raids are clearly politicising and tribalising an issue
under which remedies can be found under national and international law.
I find this argument not just absurd and myopic, not only because it
encourages tribal hostilities and more massacres in future but also on
account its lack of grounding in current national laws and international
conventions.
This irrational argument (which reeks of ethnocentricism and not an
intellectual discourse at all) suggests that all Shonas (not Mugabe and his
murderous regime) were responsible for Gukurahundi. Of course this is
ridiculous. The Shona people did not commit massacres in Matabeleland, it
was Mugabe and his regime who were certainly motivated by the pursuit of
political consolidation and hegemony to achieve their one party and
socialist state agenda. The campaign had ethnic undertones, no doubt, but to
make it appear as if it was a Shona versus Ndebele conflict is not just a
dull and awful discourse but clear bigotry.
For sure, there are serious questions to be asked about the role of
ethnicity in Zimbabwean politics and Gukurahundi. We know for certain that
ethnic politics are alive and well elsewhere in Africa. Most of the
conflicts in Africa today have an ethnic dimension. Ethnicity is usually
harnessed by bigoted and reckless politicians to win political power and
access to state resources. So it is legitimate to ask what has been the role
of ethnicity in African politics?
What has been the role of tribal politics in Zimbabwe's past civil strife,
including Gukurahundi? What was the role of ethnicity in Mugabe's rise to
power? These are issues which we should be able to debate freely without
fear or favour! We also don't have to reduce an intellectual discourse
around such issues, including Gukurahundi, to an Us versus Them dichotomy
and mentality.
By refusing or fearing to confront our past honesty and bravely in the
community and national interest, are we not just perpetuating the problem?
Are we not guilty of moral indifferences by ignoring such dangerous signs of
an angry society? British criminologist Steven Box (1983) has argued that
someone who is indifferent to causes of harm displays more disdain for
humanity in general. Those who support Mugabe and his atrocities for
whatever reason are clearly showing cold disregard for humanity. If the law
doesn't, then history will judge them harshly.
l Tshuma is a journalist currently wrapping up his PhD in poverty and social
justice in transitional nations in the United Kingdom.

By Admore Tshuma


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The facts get in the way at the Herald

http://www.theindependent.co.zw/

Friday, 20 August 2010 16:36

THE Herald has once again demonstrated why it cannot be trusted to provide
balanced news and information of national interest.
We were able to get another insight of the paper's culture of deceit in its
Tuesday issue.  While reporting on Sadc's deliberations in Namibia, the
paper told us that leaders of the regional bloc had hailed Zimbabwe leaders
for "setting aside sectarian interests for nation building".
The paper did not tell us that the Sadc Organ on Politics, Defence and
Security had expressed its unhappiness on the failure by the same leaders to
resolve outstanding issues of the global political agreement (GPA). The
propaganda broadsheet unashamedly decided to conceal public information by
ignoring to tell its readers that the inclusive government was directed to
come up with a roadmap leading to free and fair polls.
We would have wanted The Herald to tell us that the Sadc Council of
Ministers was also unhappy with Zimbabwe's refusal to obey rulings by the
Windhoek-based Sadc Tribunal on land disputes.
The incoming chairperson of the Sadc Council of Ministers Hage Geingob, who
is also Namibia's Minister of Trade and Industry, did not have kind words on
Harare's refusal to obey rulings that declared the land reform programme
illegal and racist.
"When the ruling was made from here about the farmers, people were saying
the Windhoek ruling as if Windhoek owns the Sadc Tribunal. The court is your
court that is based here," Geingob told journalists.
"People say Namibians are against Zimbabweans or President Mugabe, but we
signed the Sadc Treaty, Zimbabwe signed and if you sign, there are
obligations that come with signing and we will say this to Zimbabwe, but
diplomatically of course."
Justice minister Patrick Chinamasa should have heard this. We have heard him
and his colleagues say the tribunal's rulings are a "day dream" and he
continued singing the same hymn this week.
Chinamasa and the hardliners went on to declare the country was no longer
going to be bound by any of its rulings.  Are the chickens coming home to
roost?
Despite Chinamasa's machinations aimed at misleading Zimbabweans about the
tribunal, we all know the regional court was formed in 2003 by a Sadc Treaty
signed by regional governments. Its duty is to provide legal recourse to
issues from aggrieved regional citizens who would not have received
satisfactory court rulings in their own countries.
The Sadc Council of Ministers now fully understands why the European Union
and other Western countries have imposed sanctions and other punitive
measures on Mugabe and his inner circle. They do not observe the rule of
law, pure and simple!
Can Chinamasa tell us what was suspended in Windhoek? Was it the Sadc
Tribunal or deliberations on Zimbabwe snubbing the tribunal's rulings?

Despite that glaring evidence of Zimbabwe's inclination to ignore the rule
of law, Sadc will, for the sake of the suffering masses of Zimbabwe,
continue to make great efforts to have the sanctions removed.
A United States senator now also wants the punitive measures removed. Jim
Inhofe, who sits on the Foreign Relations Committee, has proposed that
Congress come up with the Zimbabwe Sanctions Repeal Act of 2010 that seeks
to lift economic sanctions and travel restrictions against Mugabe and his
inner circle imposed in 2001.
We hope Mugabe and his Zanu PF party will complement these efforts by
playing their part, restoring democracy in Zimbabwe and ensuring people's
liberties are respected. This includes allowing Zimbabweans to freely
contribute their views during constitution-making outreach meetings in the
countryside.
Fearful villagers in Chipinge and Nyanga have devised a whistle strategy to
combat increasing attacks from Zanu PF thugs and war veterans, as the police
standby, refusing to come to their aid.
"Local people have now devised this strategy of whistling, so that they
mobilise each other in the event of an attack. This is because the attacks
are being done by very few people who do not have the local support. There
is strength in numbers," said Douglas Mwonzora, the national co-chairperson
of the Constitutional Parliamentary Committee, on Monday.
"Once a person is attacked or an attack is imminent, they whistle; those who
hear the whistle also whistle while advancing towards the location of the
first whistle, so there will be a lot of whistling. Firstly it puts off the
attacker and confuses the attacker. It then mobilises people towards the
person being attacked."

It seems The Herald reporters never miss an opportunity to distort
information in service of their handlers even when such information is
provided in front of witnesses. A case in point was the press luncheon given
by the Ambassador of the Republic of Indonesia Eddy Poerwana last Wednesday.
Responding to a question from a Newsday journalist on whether he thought the
Western envoys who walked out of the burial ceremony of Sabina Mugabe were
correct, the Ambassador said in terms of diplomatic etiquette the envoys
were wrong to walk out the way they did, but added that so was President
Mugabe for using a solemn occasion such as a funeral ceremony to make a
political statement of the nature he made. But, of course, it would have
been expecting too much of The Herald that they could include the last part
of Ambassador Poerwana's remarks. The Herald report last Thursday simply
stated that Poerwana had slammed his Western colleagues for walking out of
the funeral ceremony.

Why are Swazi authorities persecuting a youth activist for reading and
making photocopies of an article that was carried by a South African
newspaper on a raging sex scandal rocking the royal family?
Authorities in the tiny kingdom are desperate to put a lid on the scandal in
which a cabinet minister was caught red-handed making love to Inkhosikati
LaDube, one of the 13 wives of King Mswati III.
The minister, Ndumiso Mamba, a close ally of King Mswati, has since been
forced to resign as Minister for Justice and Constitutional Affairs.
Sibusiso Mhlanga, a member of the banned Swaziland Youth Congress (Swayoco),
was arrested in Manzini as he tried to make copies of the article which
appeared at weekend in the City Press newspaper. This shows how backward the
royal family is. Caught in a time-warp, King Mswati's minions think that
they can destroy evidence of royal indiscretions by intimidating civil
society. They have not heard of facebook and twitter where the saga was
kicking big time. Mswati is a victim of his own doing. This is what happens
when you display to the world hidden secrets of your conquests. There are
others waiting for a closer look.

Muckracker liked the piece by NewsDay deputy editor Brian Mangwende
questioning the credentials of some of the rogue war veterans moving around
threatening villagers in the countryside.
It would be interesting if Jabulani Sibanda or Joseph Chinotimba would tell
their liberation war credentials, not the 2000 and 2008 land and
presidential election run-off jambanjas.
Did anyone read the article which appeared in The Sunday Mail claiming
Rwandan secret agents had "sneaked" into Zimbabwe hunting down fugitives of
the 1994 genocide believed to be hiding in Zimbabwe?
The paper claimed reports from the Rwandan capital, Kigali,  confirmed that
security agents from the tiny central African nation sneaked into the
country early this year to hunt down two suspects - Charles Bandora and
Protais Mpiranya - apparently without the knowledge of Zimbabwean
authorities.
The paper did not tell us it plagiarised the story from some websites. Talk
of professionalism. We hope next time they lift stories from other
publications the Sunday Mail will give attributions.
 


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Eric Bloch: Industrial reform urgently needed

http://www.theindependent.co.zw/

Friday, 20 August 2010 16:35

AS Zimbabwe strives for economic recovery, a key focus area must be a
transformation of the manufacturing sector.  Innumerable and diverse
measures and actions are a prerequisite for any substantive economic
recovery, including rescission of negative political agenda and policies in
respect of the agricultural, mining, commercial, tourism, financial and
services sectors, as well as many other facets of Zimbabwean law. However,
one of the key areas that require major positive actions and reforms is
manufacturing.
Zimbabwe’s manufacturing sector was, and can once again be, a major
contributor to economic wellbeing. At one time, Zimbabwe had the second
largest and developed industrial infrastructure in all of Southern Africa.
It was Zimbabwe’s  second largest employer of labour after agriculture,
generated considerable foreign exchange through substantial exports to all
countries in the region and further afield, had a major beneficial impact
upon the downstream economy, and was a significant contributor to the
fiscus. Tragically, that is no longer the case.  The sector has contracted
markedly, with great reductions in numbers employed, and massive decreases
in volumes of production. Many in the industry have wholly discontinued
operations, and most of those still in operation have no alternative but to
downsize to a major extent in a desperate struggle to survive.
Radical, dynamic and innovative actions are  necessary if the manufacturing
sector is to be set on a path to recovery and growth. To some extent, those
actions must be pursued by the sector itself, aided therein by other
economic sectors, but the overriding need is for government to pursue,
urgently and vigorously, measures that are facilitative of that recovery.
Although not exhaustively so, among the key issues that need to be addressed
are:
Appalling low levels of productivity.  The intense decline in volumes in
recent years is due to  numerous factors, but one of the main reasons is the
exceptionally low morale of most workers.  With their incomes generally
being far below the Poverty Datum Line, most workers are not focused upon
achieving necessary volumes of production, but instead are continuously
thinking about their financial stresses.  However, in so doing they
exacerbate those stresses, for the lower the levels of production the lesser
is the ability of employers to enhance wages, and the greater the risks of
business closure and consequential loss of employment.  Employers and
workers need to pursue productivity growth and, as an aid to that objective,
there is a need for intensified recourse to performance-related worker
remuneration.
Compounding the poor levels of productivity is the ongoing erratic supply of
energy to industry.  On the one hand, the Zimbabwe Electricity Supply
Authority (Zesa) needs to prioritise energy supplies to economic sectors,
albeit to the prejudice of residential areas and, on the other hand, Zesa
must ensure adherence to its published load-shedding schedules, save in
unavoidable instances of infrastructural breakdowns, thereby enabling
industry to coordinate production schedules with energy availability.
A key requirement for the revitalisation of the manufacturing sector is
access to working  capital. Almost without exception, all industrial
enterprises are grievously under-capitalised.  The extreme hyperinflation
that prevailed in 2008 seriously stripped the majority of manufacturers of
working capital resources.  Such diminished resources that remained were
then almost wiped out by the demonetisation of the Zimbabwean currency in
February 2009.  If industries thereafter had any residual working capital,
that capital was decimated by the operational losses of 2009 and 2010.  Due
to the lack of capital, most manufacturers are unable to fund a continuing,
timeous availability of manufacturing inputs, thereby further hindering
attainment of survival levels of productivity.
In normal economic environments, working capital inadequacies are addressed
by recourse to money markets, or by accessing new capital investment.  This
has hardly been possible in recent times in Zimbabwe.  The money market has
an exceptionally limited availability of funds, in part due to the
reluctance of many to utilise the banking system for fear of non-access to
their funds when required, and to a large degree due to the paucity of
international lines of credit.  The miniscule availability of credit is
primarily due to a sense of lender insecurity because of Zimbabwe’s unstable
political and economic environment, and due to recurrent confrontational
statements by the political hierarchy.  For like reasons, there is a
pronounced scarcity of investment funds, and such limited funds as are
available are possessed by bargain-hunters seeking investment acquisitions
against payments far below fair value.
Yet another constraint afflicting the manufacturing sector is the
difficulty in being price competitive in export markets, further impinging
upon attaining viable productivity levels.  High utility charges, at levels
many times greater than prevailing elsewhere in the region, higher wages
than apply in the countries competing with Zimbabwean exports, steep
finance charges on the limited  availability of funding, and low levels of
productivity preclude most manufacturers from being able to price
competitively in export markets.  Moreover, they have to compete against
recipients of considerable export incentives and subsidies, such as those
accorded by China to its manufacturers, whilst Zimbabwe fails to provide its
manufacturers with any incentives or subsidies.
Not only does Zimbabwean industry face major constraints in achieving high
volumes and fair value, but concurrently it faces great competition in its
domestic market, that competition emanating from imported products. Those
imported products are massively price competitive, partially due to the
export incentives and subsidies accorded them by their countries, but also
due to many of them escaping the import duty net.  Innumerable products
manufactured in the Far East enter Zimbabwe with falsified documentation and
packaging imputing that the origin is actually Sadc or Comesa, and therefore
not subject to importation imposts.  Others enter through unlawful channels,
thereby escaping the imposition of duties.  Whilst Zimbabwean industry must
be prepared to confront import competition, this should be on a level
playing field where the key criteria should be quality, price and delivery
reliability.
A critical need for the recovery of the manufacturing sector is the
refurbishment, modernisation and upgrading of plant, machinery and
equipment, but capital inadequacy presently precludes this need being
effectively addressed.  Concurrently, the sector desperately needs to obtain
skills to replace the thousands lost through the “brain drain” of the last
decade.
The manufacturing sector can be a key contributor to the wellbeing of the
Zimbabwean economy, as it was in the past, but much reform is needed, driven
by government creating an enabling environment.

By Eric Bloch


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Mugabe the major deterrent to tourists

http://www.theindependent.co.zw/

Friday, 20 August 2010 16:32

TOURISM was initially intended to be a major source of revenue for Zimbabwe
during the World Cup, but negative press took its toll on the country's
ability to draw tourists. Those who chose to travel around Africa before or
after the Cup seemed to develop the uncanny ability to avoid Zimbabwe by
going through Mozambique and Tanzania, or Botswana and Zambia. It was
initially estimated that 30% of these travellers would pass through
Zimbabwe; obviously this wasn't the case.
As one of the few tourists who ventured to Zimbabwe during this time, I was
disappointed to see the tourist spots and markets so quiet. I experienced a
warm, welcoming side of Zimbabwe, one which is unexpected considering the
impression imparted by negative coverage in the West. I couldn't help but
wonder where all the other tourists were and, in my opinion, they were
missing out. But then, having pleasant people and unique tourist attractions
doesn't necessarily make a country attractive to travellers.
For a tourist, the place which most vividly illustrates the differences
between Zimbabwe and other Southern African nations is Victoria Falls.
Comparing the two sides of the Zambezi River is a stark reminder of the
losses suffered by Zimbabwe's tourism industry and its potential to rise
again. The Victoria Falls Hotel, overlooking the Zambezi, is testament to
the heritage of Zimbabwean hospitality and tourism. It's a good example of
what Zimbabwe lost and what it could someday gain back. Travellers to Africa
used to flock to the Zimbabwe side to take advantage of what most people say
is the best view of the falls. Now the town of Victoria Falls, on the
Zimbabwe side, is run down and seemingly deserted. People sell 100
trillion-dollar bills as souvenirs to the odd tourist who comes through.
And where Zimbabwe once flourished, now Zambia is the main beneficiary of
the tourism generated by the world famous water fall. The town of
Livingstone is prosperous and receives a healthy trade from the travellers
who crowd the backpackers and hotels.
But why do so many tourists shun Zimbabwe, preferring instead to travel to
other countries which seemingly offer more to tourists?
In 1999, Zimbabwe hosted 1,4 million tourists, earning US$250 million in
revenue. By 2005, the figure had dropped to only US$40 million in tourism
revenue. During these first years of Zimbabwe's decline, potential
travellers, who would once have considered Zimbabwe as a travel destination,
were now fearful of the violence they saw on their TVs and newspapers. The
land reform programme and pre-election violence was widely publicised and
the coverage did long-term damage to the Zimbabwean economy in terms of
tourism and investment. Political instability seems to be the major factor
in Zimbabwe's lack of credibility as a tourist nation and senior figures in
the Zimbabwe Tourism Authority have long claimed that the key to prosperity
in the industry is a climate of political stability.
Since the formation of the unity government there have been signs that a
perceived increase in political stability has encouraged tourists. A modest
rise in the revenue gained from tourism came soon after the new government
took power.
While it is likely there was a perception that the unity government was a
more stable form of leadership for Zimbabwe and therefore the country itself
was a safer bet for travel, it could also be the case that the West's
distaste for Robert Mugabe is a contributing factor. The image of Mugabe and
Zanu PF was diluted upon the formation of the coalition between the two
parties and accordingly and Zimbabwe became more palatable to the Western
traveller.
While political instability and negative coverage in the West have been a
good enough reason for many Western travellers to stay away, there are now
more practical and simple reasons for tourists to avoid Zimbabwe. Power cuts
are a chronic short coming in rural areas and even the cities.
During my time in Harare power cuts occurred on an almost daily basis. I
witnessed desperate residents digging trenches and laying new cables
themselves rather than waiting for someone who may or may not fix the
problem. This ingenuity is impressive to any outsider, but the fact that
Zimbabwe's government puts its public in a position where they have to use
their ingenuity in order to survive is not.
Wild animals, once so abundant in Zimbabwe, have now become scarce. Driving
from South Africa the difference is obvious when the Limpopo is crossed. On
the South African side the wildlife can often be seen at the road side but
once the border is crossed scarcely an animal is seen. The fact that they
have been snared by villagers to feed their families is once again down to
mismanagement at government level and it's precisely this sort of tragic
situation which turns travellers away.
Yet the potential is there. The eastern highlands, Great Zimbabwe, Lake
Kariba, Victoria Falls and Hwange National Park all wait for the changes
which will see them bustling with tourists once again. The hunting and
fishing industries still draw large numbers of wealthy tourists and,
increasingly, Zimbabwe is being seen as a desirable safari destination.
Since the formation of the unity government, articles and advertisements for
Zimbabwe have begun to pop up in travel magazines. They show mainly safari
trips, cruises down the Zambezi, a week in a lodge living with African
wildlife. It's not exactly the real Zimbabwe and you could be forgiven for
seeing a certain amount of self interest in the promotion of tourism in a
country with such a government record of human rights violations and
corruption. Those who travel here will seldom see the extent of the poverty
faced by the population or the violence used by Mugabe to consolidate his
rule. But the message that tourists should consider Zimbabwe as a travel
destination is not intended only for safari companies to line their pockets,
but for the population of Zimbabwe to find its feet.
By the time the tourism industry is at the height it once was, Zimbabwe will
be well on the way to a full recovery. Tourism itself cannot save Zimbabwe
but it can at least be part of a process which leads to the eventual
recovery of the country. For this recovery to take place certain changes
need to come about. The image of Mugabe and Zanu PF is such in the Western
world that for Zimbabwe to appeal to tourists, as it has done in the past,
Mugabe must not be at the helm. In basic terms he is the major deterrent to
tourists.
During my time travelling through Zimbabwe the questions I was most often
asked when I told someone I was from New Zealand was "why would you want to
come here"? It's a hard question to answer but the truth is Zimbabwe has
something special about it which I can't put my finger on. The people are
particularly warm and cheerful, the streets are safe compared to the likes
of South Africa.
I hope for the sake of Zimbabwe that next year's possible elections are free
and fair and tourists are once again attracted to the beauty of the people
and the land in great numbers.

Sam Gregory is a foreign journalist who recently visited Zimbabwe.

By Sam Gregory


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Review of Zim’s mineral wealth urgent

http://www.theindependent.co.zw/

Friday, 20 August 2010 16:31

THERE are too many rumours circulating about where and when diamonds were
discovered in Chiadzwa and by whom. The responsible minister was quoted in
some media reports as having said the diamonds were “discovered” by
villagers.
The Herald columnist, Nathaniel Manheru, fuelled speculation two weeks ago
by suggesting that the then ruling party, Zanu PF, was at fault for not
having known all along that Chiadzwa was diamond rich. And in other rumours
the name De Beers has been thrown into the fray. The accusation being that
perhaps De Beers knew all along of the diamond deposits and did not want to
disclose them until a time suitable to themselves.
And then again there is also speculation that even the colonial state knew
of these diamonds in the 1970s but did not want a majority government to
know about it.
The list of various conspiracy theories may go on.  The point however is
that they must now be investigated, and not only for diamonds.
The Zimbabwe National Anthem, for those who might not know all of its
lyrics, extols our soil and the minerals under it.   Various presidential
addresses to parliament have also lauded the fact that we have minerals of
various shades.  The only problem is that no one has bothered to fully
assess what is where, and in what quantities.  Even if they have, there must
be an explanation as to why it is secret to the public and /or to some
quarters of government. This is because since Independence the government of
the day has tended to be in the thrall of the big mining companies that they
allowed to prospect, give a verdict, and in most instances depart without
full disclosure.  The diamond saga is only the latest known incident of this
nature.
According to statements reported in the media citing government sources,
there was some prospection at Chiadzwa, perhaps by De beers or Anglo
American. Whichever company it was, it left without full disclosure or
perhaps it genuinely made a mistake and did not find any evidence of
alluvial diamonds.  The government of the day accepted its verdict until, as
Mines minister Obert Mpofu says, villagers “accidentally” discovered
diamonds. Why the government is not even embarrassed by this baffles the
mind. And it leads one to question what do we really know, through our
government, about the minerals dotted elsewhere in the country?
For example, does Bikita Minerals only mine lithium or are there other
minerals that occur with it? Alternatively does the Hartley Platinum Mine in
Selous and Ngezi only get platinum or are there other minerals that are
being taken from there as well?  And what is the geological spread of these
minerals? In other countries they talk of diamond belts, of which I am
pretty sure we might have one in our country, but the debate has not even
begun to touch on this issue.  What we have is a newly emergent political
culture of “we eat what we gather” which does not always seek a broad
understanding of realistic and structural issues concerning the mineral
wealth of the country. It instead emphasises “hand to mouth” politics
without thinking of the long term.  Because diamonds are high value
minerals, the government seems to have forgotten that it has other minerals
that need to be put to use for the public good.  These are still silently
being mined without anyone raising a furore.  Even where the Finance
ministry has been seeking to increase the taxation of mines and minerals,
its argument is not so much the usage of this revenue.  Instead it is
seeking to acquire the revenue and determine usage later, a proposition
which is more technical than it is political.
The inclusive government must change its approach to mines and minerals in
Zimbabwe.  Firstly it must outline clearly the purpose of the revenue
acquired from not only diamond sales but all valuable minerals.
To give vague statements such as “for the benefit of all” is inadequate.
If, for example, they mean that in the next two years minerals should
establish a functional public health system, they must put it in black and
white.  And this should be done through the public endorsement of a Zimbabwe
Mining Charter that outlines the fundamental uses of all acquired mineral
wealth.
Secondly the inclusive government, parliament and civil society must
immediately set up an independent commission of enquiry into the mineral
wealth of this country.  Such a body would then assess the geological
surveys at hand, measure their weaknesses, look at the history of the mining
concessions and prospection done since Independence and establish a
framework for present and future mining/mineral prospection and ownership.
This framework would take into account the fact that previously government
has failed to prospect its own land and does not have adequate information
on the country’s resources. Thirdly, this independent commission must review
the nature in which citizens lose their land to mines and mining companies
after the discovery of a mineral.

Takura can be contacted on kuurayiwa@gmail.com This e-mail address is being
protected from spambots. You need JavaScript enabled to view it .

By Takura Zhangazha


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Candid comment: Time for govt to demystify the diamond issue

http://www.theindependent.co.zw/

Friday, 20 August 2010 16:42

THE certification and subsequent sale of diamonds last week came as relief
to most Zimbabweans after years of wishing for divine intervention in the
resolution of the country's economic meltdown.
Prior to the certification of the diamonds, government and industry
officials had thrown around jaw-dropping figures that would have accounted
for the national budget. The average Zimbabwean reckoned this would bode
well for government's cash budgeting system, especially in a situation where
the cash would be at hand.
However, no sooner had the nation been informed that the first diamond sale
had generated US$72 million than the Minister of Finance, Tendai Biti,
slashed the figure to US$42 million. Mines minister, Obert Mpofu, later
revised the figure to $56m. Of the amount, the fiscus was expecting a measly
US$15 million, meaning that government would need a hundred times more than
the carats that were sold to finance the budget from diamonds. Minister Biti
said the paltry figure due to the exchequer was because the miners had
invested in machinery and associated production costs. He did not explain
how the figures relating to the costs were arrived at, what machinery had
been invested in (at what cost) and whether this expenditure would diminish
with time.
Further, the nation deserves to know the timeframe within which the money
that is due to government is paid. It is common knowledge that government is
entitled to royalties and "dividends" from the Zimbabwe Mining Development
Corporation (ZMDC) but the time-frame within which these are
deposited into the exchequer remains anybody's guess.
According to information at hand, government is supposed to get 10% as
royalties and 25% corporate tax on profits while the remainder will be
shared by the state-run
ZMDC and South African companies,
Mbada and Canadile, with ZMDC paying dividends to government.  And, going by
the standard practice among parastatals, the dividends might never come,
thanks to the incompetent managers presiding over most of them.
Examples of parastatals that should be cash-cows for government abound.
Apparently, the managers have been allowed to entrench a culture of failure
to the extent that competence has become the exception. It is therefore
imperative that government officials realise that this is not business as
usual; Zimbabweans take the diamonds issue seriously. Politicians who do not
realise this will reap rewards, come election time.
It is also incumbent upon the government to build trust in the owners of the
diamonds - Zimbabweans - who have very high expectations from the glittering
stones. Already, civil servants have expressed their desire to be awarded
pay increases based on diamond revenue and the man in the street expects
some form of benefit, such as reduced income tax or value added tax that
would leave them with more disposable income. Although it is comforting to
know that parliament, through the chairman of the Parliamentary Portfolio
Committee on Mines and Energy, Edward Chindori Chininga, has emphasised the
need for transparency and closing pilfering holes, mere rhetoric is not
enough. The rhetoric becomes even less convincing when the pilferage
involves as much as US$30 million disappearing with no trace. It is
surprising that up to now, government, with its glut of bureaucrats, is yet
to announce a formula for diamond income.
According to Chininga, Biti and his Mines ministry counterpart, Mpofu, are
still agonising over the "structures of how the transactions should be
worked out." There is also need for government to state which companies are
doing what on the diamond fields. The secrecy surrounding the exploitation
of the national resource gives the impression that it is only the privileged
few who should know what is happening. This creates room for the kind of
corruption that has characterised diamond mining.

Edwin Dube


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Editor's memo: Democratic institutions first, elections later

http://www.theindependent.co.zw/

Friday, 20 August 2010 16:41

THE Sadc Organ on Politics, Defence and Security Cooperation met in
Windhoek, Namibia, on Sunday to deliberate on the Zimbabwe political crisis
and recommended that the only way out of this calamity is free and fair
elections.

The troika's resolution was reached after facilitator, South Africa
President Jacob Zuma, tabled a sagacious report on the state of political
affairs in Zimbabwe under the shaky inclusive government.
Zuma made three recommendations that were, without alteration, adopted by
the organ - the parties in the unity government should resolve outstanding
issues of the global political agreement (GPA) within one month as part of a
confidence-building measure; "should find an uninterrupted path towards free
and fair elections and the removal of impediments as and when they arise"
and that the troika "should persuade Sadc to help Zimbabwe to draw up
guidelines for a free and fair election, where intimidation and violence
would not play any part and where the result of such elections would be
credible".
No timeframe for the proposed elections was set, although over the past
month there has been a crescendo call for the polls to be held next year
from the two main protagonists of the country's body politic - the MDC-T and
Zanu PF.
While there is no doubt that the election trajectory would be the panacea to
our political quagmire, the challenge is whether our leaders have the
capacity to create the conducive environment for violent and
intimidation-free elections given that they have close to two years failed
to adhere to the GPA they cobbled out of their own volition.
Do our leaders have the will to abandon the tussle for the political turf
for the sake of the nation when they are still in the trenches fighting for
positions of political influence, such as that of provincial governors, the
Attorney-General and the central bank governor, just to mention a few?
It is naive to suggest that if Sadc draws up election guidelines, the polls
would be free and fair. It is also naive, a suggestion from the MDC-T, to
say that Sadc should come up with a commission to be stationed in Zimbabwe
six month before and after polls to ensure security of citizens.
History is on my side. Zimbabwe's first democratic elections in 1980 were
held under international supervision and monitoring, but they were the most
tense ever in this country. President Robert Mugabe escaped several
assassination attempts in the countdown to the poll and his Zanu PF party,
according to Lord Soames, won mainly because of violence.
Though Lord Soames had wished to see "the freest, fairest elections possible
in this country", he lamented that "intimidation is rife, violence is rife".
Lord Soames was transitional governor of Rhodesia and was empowered to
enforce law and order in the then divided country, oversee fair elections
and help form a government to advance the state to independence.
The argument is that we do not need election guidelines and commitments from
political parties our future elections to be free and fair. What we need as
a matter of urgency are strong democratic institutions to be put in place
before contemplating fresh elections.
These institutions should be etched in a new constitution.
Institutions of coercion and brutality must be disbanded. The police, the
Central Intelligence Organisation and the army should be reformed for them
to serve the interests of the country, not a particular political party.
Another important move would be to open up the democratic space, allow
various players room to facilitate, for example, voter education, which
could be done within the confines of the law. It is also vital that voter
registration and the voters' roll be cleaned up to have a true reflection of
who is eligible and where they would cast their ballot, unlike now where
there are thousands of ghost voters.
Besides my suggested reforms, do Zimbabweans want an early election? The
answer is an emphatic "no".
The electorate is wary of early polls and would need time to heal from what
they went through and witnessed in June 2008 when alleged security agents,
Zanu PF militia and war veterans unleashed an orgy of violence throughout
the country.
The MDC claims that at least 200 of its supporters were murdered and
thousands injured and displaced during the jambanja to secure the presidency
for Mugabe.

Constantine Chimakure


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Comment: Sadc summit churns out more deception

http://www.theindependent.co.zw/

Friday, 20 August 2010 16:40

WE are not keeping our fingers crossed. And, unlike Prime Minister Morgan
Tsvangirai's party, we are not jubilant either about this week's Sadc Heads
of States and Governments summit held in Namibia.
President Robert Mugabe and Tsvangirai are said to have agreed on 24 of the
27 outstanding issues as part of an exit strategy for a troubled and
dysfunctional Government of National Unity.
President Zuma, the mediator in Zimbabwe's crisis and his Sadc colleagues
are certainly congratulating themselves for "breaking" Zimbabwe's political
impasse.
But a closer look at the Sadc summit resolutions betrays the purported
agreements as a façade. It is one big pretence that has become
characteristic, not only of our coalition government, but of Sadc.
Successive Sadc meetings that have touched on Zimbabwe have, in vain, tried
to paint a picture of progress in dealing with Harare's stalemate.
In the latest turn of events, coalition government partners have settled for
an implementation matrix that should result in the implementation of the 24
issues agreed on within a month.
So, within 30 days we are supposed to see the establishment of an
Anti-Corruption Commission, a National Economic Council and a Land Audit
Commission. During the same period, Justice minister Patrick Chinamasa is
expected to pilot the completion of electoral amendments while a new
Broadcasting Authority of Zimbabwe and Zimbabwe Broadcasting Holdings board
should be appointed.
Jomic is expected to have started doing its job and the Home Affairs
ministry, the parent ministry for Zimbabwe's partisan police, should have
worked means to end violence and ensure the security of persons. Are these
not the issues Mugabe and Tsvangirai agreed to when they signed the Global
Political Agreement on September 15, 2008?
And are these not the very same issues that they have pledged to work on at
successive Sadc meetings, notably the January 27 2009 extra-ordinary summit
in Pretoria and the Troika meeting in Maputo on November 5, 2009. The Troika
meeting's 15-day deadline turned into a six-month marathon of disagreements
that have stunted economic growth and heightened political instability.
This week's Sadc summit, to most Zimbabweans, presented yet another display
of failure and attempt to hoodwink Zimbabweans by leaders bent on protecting
one of their own.
It is hard to believe that coalition government partners who have failed to
agree on substantive issues since the formation of their administration in
February last year will suddenly find the currency to resolve these matters
before the expiry of their term, let alone in 30 days.
It is good when regional leaders nudge their colleagues to agree to work
together for the common good of the nation. But it is another thing for a
club of associates - for that is what Sadc is about-to lie to a whole world
that things are moving again in Zimbabwe.
We have known that Sadc meetings provide a platform to legitimise Mugabe,
and present him to the world as if he is doing something about Zimbabwe's
problems.
But it is incomprehensible that Tsvangirai, whose party still publicly
points to harassment of its officials as an example of unfulfilled GPA
commitments, is part of those leading Mugabe's cleansing ceremony. Maybe he
is out of touch with his party, but then that would be an example of bad
leadership. His Harvest House information people were sending communication
to the media this week on continued arrests of MPs and the alleged abduction
at gunpoint of seven activists in Chimanimani. What assurances has
Tsvangirai received that makes him party to such deception by Sadc and
Mugabe?

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