The ZIMBABWE Situation
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Zimbabwe Pays Its Overdue Financial
Obligations to the IMF Under the General Resources Account
Press Release No. 06/33
February 15, 2006
Zimbabwe today made a further payment of US$9 million to the International
Monetary Fund (IMF), thereby fully settling its remaining overdue financial
obligations to the General Resources Account (GRA).1 Zimbabwe still has substantial overdue obligations to
the Poverty Reduction and Growth Facility (PRGF)-Exogenous Shocks Facility Trust
(ESF)2 amounting to SDR 83 million (US$119 million).
The settlement removes the basis for the Managing Director's complaint with
respect to Zimbabwe's compulsory withdrawal from the Fund (see Press Release No.
03/210). Accordingly, the Managing Director withdrew his complaint today,
thereby cancelling the procedure for compulsory withdrawal.
The Executive Board is scheduled to conduct its next regular review of
Zimbabwe's arrears to the Fund on March 8, 2006. At that time, Executive
Directors will have an opportunity to consider Zimbabwe's cooperation with the
Fund on policies and payments, as well as the remaining sanctions and remedial
measures relating to Zimbabwe's arrears. The sanctions include the suspension of
Zimbabwe's voting and related rights in the Fund; ineligibility to use Fund
resources under the GRA; declaration of non-cooperation; and suspension of
technical assistance.
Because GRA and PRGF arrears are subject to separate legal frameworks-the
former under the Fund's Articles of Agreement and the latter under the PRGF-ESF
Trust Instrument-the clearance of GRA arrears by Zimbabwe has no effect on the
application of the Fund's procedures for the treatment of outstanding arrears to
the PRGF-ESF Trust. Zimbabwe, therefore, remains excluded from the list of
PRGF-eligible countries (see Press Release No.
01/40)
1http://www.imf.org/external/pubs/ft/pam/pam45/pdf/PAM45.pdf
2 http://www.imf.org/external/np/exr/facts/prgf.htm
IMF EXTERNAL RELATIONS DEPARTMENT
Public Affairs |
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Media Relations |
Phone: |
202-623-7300 |
Phone: |
202-623-7100 |
Fax: |
202-623-6278 |
Fax: |
202-623-6772 |
Zimbabwe clears IMF debt, expects new aid
Reuters
16 Feb
2006 03:52:57 GMT
Source: Reuters
WASHINGTON, Feb 15
(Reuters) - Zimbabwe has cleared its major debt arrears
with the
International Monetary Fund averting expulsion, the IMF confirmed
on
Wednesday, a step Harare expects will unlock new foreign aid for its
ailing
economy.
"Zimbabwe today made a further payment of $9 million to the
International
Monetary Fund, thereby fully settling its remaining overdue
financial
obligations to the General Resources Account (GRA)," the IMF said
in a
statement.
The IMF said the settlement removed the basis for the
forced removal of
Zimbabwe from the Fund.
"Accordingly, the managing
director withdrew his complaint today, thereby
cancelling the procedure for
compulsory withdrawal," the statement said.
The IMF had threatened to
expel Zimbabwe over debt arrears, but President
Robert Mugabe's government
said it had been making regular payments to the
fund and would clear its
arrears before a March deadline to pay up or risk
expulsion.
Zimbabwe
Television (ZTV) said on Wednesday Harare -- which early this month
said it
had paid up $184 million to the IMF over the last 12 months and
reduced its
arrears on the General Resources Account to $14.5 million -- had
cleared the
debt.
"Zimbabwe has cleared all its obligations under the General
Resources
Account," it said.
"This development gives Zimbabwe the
right to reclaim its voting rights in
the Fund...and should open up new
aid," the station said.
The IMF and many other key Western donors,
including the World Bank,
suspended financial aid to Mugabe's government
more than six years ago over
his controversial political and economic
policies, including his seizures of
white-owned commercial farms for
redistribution to new black farmers.
Critics say the policies have
plunged the southern African nation into its
worst crisis since independence
in 1980, and Zimbabwe's failure to service
its foreign debts forced the IMF
to suspend Harare's voting rights in the
fund in 2003 and sparked the
expulsion threats.
An IMF mission which visited Zimbabwe early this month
said Mugabe's
government must implement comprehensive reforms to help repair
an economy
many once saw as one of Africa's most promising.
The IMF
team, which will now present a report to the Fund's executive board
which is
scheduled to decide Zimbabwe's future in March, demanded that
Mugabe's
government honour a pledge to stop farm invasions that have
crippled
commercial agriculture.
The government has in the past sanctioned the
land invasions, carried out to
back its seizure of white-owned commercial
farms for landless blacks under a
sometimes violent policy launched in
2000.
The decline has worsened the plight of an economy now in its sixth
year of a
recession shown in chronic shortages of food, foreign currency and
fuel,
soaring unemployment and the world's highest inflation rates -- which
climbed to 613 percent in January.
Mugabe, 82 next week and in power
since independence from Britain 26 years
ago, denies he has mismanaged the
country over the last 26 years, and
charges in turn that the economy has
fallen victim to sabotage by domestic
and foreign opponents of his land
seizures.
(Additional reporting by JoAnne Allen)
2005 a Bad Year for Human Rights in Zimbabwe, NGO Umbrella Group Says
VOA
By Patience Rusere
Washington
15 February
2006
Cases of political violence and human rights abuses nearly
doubled in
Zimbabwe last year from 2004 levels, according to a report issued
Wednesday
by the Zimbabwe Human Rights NGO forum, an umbrella organization
of 17 civil
society groups.
The Forum said the level of abuses was
the worst it had documented since it
started tracking such incidents in
1998. The 2005 report cited 4,200 such
incidents compared with 2,711 in
2004, including four murders and four
rapes, said the group.
The
group said that the persistence of such abuses despite damning reports
on
human rights violations in Zimbabwe from African Union's Commission on
Human
and People's Rights and other organizations is a measure of the
government's
disregard for constitutional protections and its international
human rights
commitments.
The Human Rights NGO Forum noted that incidents surged
despite the ruling
ZANU-PF party's victory in March 2005 general elections
and a weakened
opposition. The Movement for Democratic Change has been
deeply divided since
late 2005 when its leadership clashed over whether to
contest November
senate elections.
Political analyst John Makumbe, a
lecturer at the University of Zimbabwe,
told reporter Patience Rusere of
VOA's Studio 7 for Zimbabwe that he does
not expect to see any reduction in
the level of political violence and human
rights violations during 2006 as
Zimbabweans grow increasingly restive
amidst deteriorating living
standards.
Cahora Bassa Threatens To Switch Off Zim Over US$6
million Arrears
Zim Daily
Thursday, February 16 2006 @ 05:25 AM
GMT
Contributed by: correspondent
Mozambique's
Hydro Cahora Bassa (HCB), which had threatened to
suspend electricity
supplies to Zimbabwe last week over debt arrears, is
believed to have
allowed the country's power utility a grace period of one
month to settle
its arrears, it was learnt this week. This follows
electricity cuts from
South Africa which has forced the country to suffer
erratic power
outages.
Senior officials at the Zimbabwe Electricity Supply
Authority
(ZESA) said the Reserve Bank of Zimbabwe (RBZ) had intervened last
Friday
and offered to help ZESA to clear the debt owed to HCB. They said the
central bank had also assured the Mozambicans that the money would be paid
within a month. The officials told Zimdaily that ZESA management had held a
series of meetings last Friday with Energy and Power Development Ministry
officials and the RBZ, resulting in the central bank agreeing to provide
assistance.
The officials said ZESA executive chairman
Sydney Gata also met
with ministry officials this Tuesday as a follow-up to
Friday's meeting.
ZESA officials said there was a general agreement between
the two power
companies and the RBZ that the arrears could be repaid without
HCB resorting
to power cuts as a way of forcing ZESA to pay up. HCB had
given ZESA up to
Saturday last week to clear its US$6 million arrears or
face power cuts that
could have affected ZESA's ability to meet domestic
demand for electricity.
"We have been given another month by
HCB to pay the arrears and
ZESA is now waiting for funds from the RBZ to pay
our Mozambican suppliers,"
a senior official at the ZESA head office told
Zimdaily. "There was an
agreement from all the parties that despite the long
time it has taken to
pay off the arrears, it was not in Cahora Bassa's
interest to cut us off.
Our hope is that we keep to our promise and make
good use of this deadline
extension."
ZESA declined
comment on the issue and referred questions to
Gata, who was said to be busy
in meetings and would only be available next
week. Zimbabwe, which imports
about 34.6 percent of its electricity needs
from regional suppliers,
receives most of its power imports from HCB, which
supplies the country with
3 198.89 gigawatts of electricity an hour. The
Mozambican power supplier
accounts for more than 26 percent of imported
electricity, with the rest
coming from ESKOM of South Africa, SNEL of the
Democratic Republic of the
Congo (DRC) and ZESCO of Zambia. ZESA benefits
from the 50 percent of
exporters' proceeds that is remitted to the central
bank, but hard cash
inflows have been low since the introduction of tough
new exchange control
measures last November.
Industry officials have urged the
government to support ZESA in
concluding a bilateral agreement it is
negotiating with SNEL, which would
give the Zimbabwean power company the
right of first access to DRC
electricity. Electricity from the DRC is the
cheapest in southern Africa,
while HCB 's supplies are the most
expensive.
Zimbabwe on high alert against bird
flu
People's Daily
Zimbabwe is on high alert against the bird flu epidemic
that has swept
across the European continent and was recently detected in
Nigeria, Health
and Child Welfare Minister, David Parirenyatwa, said on
Wednesday.
"The country is on a very high alert over the bird flu.
We want to
ensure that there are no transmissions from infected birds to
humans. We are
just hoping that the situation does not come to that," he
said.
He was speaking during a meeting with a visiting delegation
from the
US Global AIDS Fund, led by US Ambassador to Zimbabwe, Christopher
Dell.
Parirenyatwa said a health task force had been set up to
implement
measures needed for early detection of the bird flu virus should
it hit the
country.
Recently the United Nation's Food and
Agriculture Organization
reported that the deadly bird flu was more likely
to spread to Africa
between last December and next spring, raising concern
about the continent's
lack of readiness to counter the threat.
Meanwhile the Department of Veterinary Services has introduced an
awareness
program to educate farmers on the deadly effects of the avian
influenza on
poultry. The department is encouraging poultry producers to
improve
bio-security so as to reduce contact between wild birds and domestic
poultry.
The department's director, Stuart Hargreaves, said on
Wednesday
Zimbabwe would next month host a meeting for the Southern African
Development Community to strategize on ways to combat the disease should it
emerge in the region.
African countries such as Ghana, Kenya,
Senegal, Sudan, Tanzania and
Uganda have since banned imports of poultry
from parts of Asia.
The H5NI strain that causes the bird flu first
emerged in Hong Kong in
1997, causing death and destruction of 1,5 million
birds and killing six
people. It reemerged in 2003 in South Korea and has
now spread to China,
Vietnam, Thailand, Laos, Indonesia, Turkey, and Romania
and recently to
Britain.
Source: Xinhua
U.S. grants 26 million dollars for Zimbabwe on AIDS
fight
People's Daily
The U.S. government has pledged 26 million U.S.
dollars to support the
Zimbabwean government in the fight against the deadly
HIV/AIDS pandemic
which claims the lives of about 2, 500 Zimbabweans each
week.
Visiting U.S. Global Fund AIDS deputy coordinator and chief
medical
officer, Mark Dybul, said on Wednesday that the U.S government was
aware of
Zimbabwe's successes on the AIDS front and was committed to
compliment the
county's efforts.
"President (George) Bush and
the White House are quite aware of the
successes the country has made in
fighting HIV/AIDS," he said, adding that
these included the reduction in the
prevalence rate and the provision of
antiretroviral treatment
programs.
Zimbabwe's HIV/AIDS prevalence rate stands at 21 percent,
down from
24.6 percent in late 2005 and 29 percent in 2000.
Dybul, who arrived in the country with his team on Monday, said
Zimbabwe was
endowed with talented experts and had a lot the world could
learn
from.
He said their visit was meant to draw lessons from the
various
programs implemented in the fight against HIV/AIDS for adoption by
other
countries worst affected by the disease.
"The main
purpose of the visit was to learn from the programs the
country has
implemented so that we could share the information with the rest
of the
world," he said.
He said Zimbabwe had grabbed international
attention through the
dramatic reduction of the HIV/AIDS prevalence rate.
"This is the story being
told to the world," he said.
The
visiting U.S. team, which is expected to leave later on Wednesday,
had
visited satellite programs where rollout programs to counter HIV/AIDS
were
being implemented, he said.
Meanwhile, Health and Child Welfare
Minister, David Parirenyatwa, said
the country's success story had come
about as a result of condom use and
faithfulness.
"We have
always preached the gospel of prevention and more
prevention," he
said.
For years, he said, the country was the epicenter of HIV
infection in
the world but had managed to significantly lower the incidence
of AIDS
through a multisectoral approach that included the National AIDS
Council,
schools, churches, traditional healers and
parliamentarians.
Zimbabwe appreciated the contribution made by the
Global Fund and
hoped this would be scaled up and bilateral relations
between the two
countries improve, he said.
"We need to work
together despite the political play at the top. HIV
is a global issue that
needs a global response," he said.
The U.S. Global Fund was set up
by President Bush to help developing
countries in the fight against the
HIV/AIDS pandemic. For years Zimbabwe did
not benefit from the grants until
last year.
This year, 14 billion U.S. dollars has been set aside to
benefit 15
developing countries, Zimbabwe among them. Meanwhile, moved by
the magnitude
of the AIDS crisis in Zimbabwe, the Global Fund for AIDS,
Tuberculosis and
Malaria last year finally considered the country for
funding and released
10.3 million U.S. dollars to the government to fight
the pandemic.
The Fund had sidelined Zimbabwe for no apparent
reason since 2000, the
year the government embarked on the land reform
program to resettle the
landless through acquiring farms from former white
commercial farmers.
According to United Nations HIV/AIDS statistics
on Zimbabwe, one in
every three people is HIV positive while one in every
five pregnant women is
also infected. About 90 percent of the infected
people are not aware of
their status while 600,000 of those carrying the HIV
virus have the signs
and symptoms of AIDS and require varying degrees of
care and support.
Source: Xinhua
Tobacco production to drop in
Zimbabwe
People's Daily
The Zimbabwe Tobacco Association ( ZTA) said
Wednesday it projected a
30 percent drop in tobacco output this year to
around 50 million kg, citing
a range of production problems.
ZTA president, James Delafargue, said lack of funding, especially by
small-scale producers, was one of the main reasons why tobacco output would
drop from 73 million kg last year.
He also cited lack of inputs
at some farms associated with land
reforms, and viability. But the ZTA boss
said a good quality crop was
expected from farmers, as well as average
prices of around two U.S. dollars
a kilogram for the top leaf.
"We are expecting a 30 percent drop (in output) because of a number of
problems, but the quality is good and must be able to fetch good prices,"
Delafargue said.
"I think after the season, we need to sit down
as a country and look
at why production is dropping and find ways to reverse
this," he said.
Until recently, tobacco was Zimbabwe's biggest
export, but has since
surrendered the title to cotton.
Source:
Xinhua
State Should Stop Commercialising Children's Basic Right
To Quality Education
Zim Daily
Thursday, February 16 2006 @ 05:25 AM
GMT
Contributed by: correspondent
By Fidelis
Mhashu
The hike in fees at tertiary colleges is yet another
blow to an
already battered education system that has failed to address the
nation's
needs. Colleges increased their fees by over 100 percent this term
against a
backdrop of low incomes and inadequate student payouts. The MDC
believes the
right to education is a right for every child. What the
state-owned tertiary
colleges are simply doing is to commercialize our
children's basic right to
access quality education which should help enhance
national development.
The MDC believes the right to tertiary
education should not be a
preserve of relatives and children of tycoons and
dealers---the nouveau
riche---but should be accessible to everyone
regardless of their social
standing. It shows this government has a
Rhodesian hangover, in which
education was a preserve of the elite. It makes
a mockery of the liberation
struggle if our children have to suffer the
ignominy of playing second
fiddle to the rich and powerful when it comes to
accessing tertiary
education.
But the government's
creation of bottlenecks to make sure that
the economically challenged
students do not access tertiary education does
not come as a surprise. The
children of Cabinet ministers and senior
government and Zanu PF officials
are in colleges in Europe, the Americas and
other continents around the
world and these charlatans do not care a hoot if
our children fail are
unable to go to our own local colleges and
universities.
We also note with dismay that the new fee structure was only
announced last
week and some students have been asked to pay the fees before
month-end,
well before their pittance that serves as their payouts has been
disbursed.
This is a recipe for disaster and is likely to spark student
unrests, which
have been the hallmark of our colleges ever since this regime
lost touch
with the students in the late 1980s. This regime's gripe with the
students
is understandable. In 1988, the students rallied the nation in
thwarting
this regime's desire to establish a one-party state in
Zimbabwe.
The new fee structure is just one area
characterizing the rot in
the entire education system. The rot manifests
itself in the shortage of
textbooks in our schools and colleges, the low
morale among our teachers and
lecturers over inadequate salaries and poor
working conditions, as well as
the chaos and corruption at ZIMSEC. Our
national universities and colleges
have become a collective source of
national shame, again characterized by
dilapidated buildings and halls of
residence, dysfunctional ablution and
sewer systems, poor libraries and low
staff and student morale.
What this government is doing is
against the spirit of global
and continental initiatives such as NEPAD, the
Millennium Development Goals
and the United Nations Charter, which
acknowledge the right to education as
a basic and fundamental
right.
The MDC believes in academic freedom as well as
quality
education that is affordable to our children regardless of their
social
background. We believe that our children's basic rights such as
education
should never be compromised for political expediency. We believe
in people
power to pressure this regime to pave way for a new Zimbabwe and a
new
beginning.
Fidelis Mhashu is the MDC Shadow minister
for Education
Chamber Of Mines Disagrees With Govt Over 50%
Shareholding For Locals
Zim Daily
Thursday, February 16 2006 @ 05:22 AM
GMT
Contributed by: correspondent
The Chamber of
Mines of Zimbabwe says that neither the
government nor locals can afford to
purchase the 50% empowerment stake put
in place to empower locals in the
existing mining concerns in the country.
"With the value of the mining
industry businesses at more than US$20 billion
it is also the perception
that neither the government nor Historically
Disadvantaged Persons (HDPs)
can raise the amount to purchase 50%
shareholding in existing mining
companies," Chamber of Mines president Jack
Murewa said in a confidential
document to the Minister of Mines, Amos Midzi.
The document
is the industry's first official response to issues
raised by both the
government and central bank governor Gideon Gono, who
accused miners of
gross gold smuggling last month. Murewa said the
perception in the industry
is that the government wants participation by
itself and/or Historically
Disadvantaged Persons (HPDs) in current mining
companies to the extent of at
least 50% shareholding.
It said the perception is in the
absence of adequate information
from the Mines Ministry and based on the
policy framework published by the
Department of Indigenisation and
Empowerment in the President's Office. "If
the government is to meet this
stated objective of participating in every
mining company ion Zimbabwe, it
can only do so through expropriation,
cession or legislated
nationalization," Murewa said.
It said with this perception,
both potential foreign and local
investors have stopped committing borrowed
and equity funds towards
exploration, expansion and Greenfield projects for
fear of losing both
control of the business and a big portion of their
investment. The Chamber
also responded to government moves towards greater
monitoring of the mines,
saying there is no need for further policing in the
mining industry as this
would add no value.
Gono said
last month the government had brought in Israeli
experts to investigate
smuggling from the gold mines. Government officials
have blamed last year's
decline in official gold production from 23 million
grammes in 2004 to 13
million grammes in 2005 on smuggling. "As the Chamber
of Mines we believe
that there is adequate policing in the industry and
additional policing
would yield no marginal value."
It said that if perpetrators
have been identified, efforts
should go towards prosecuting the offenders
and not to spend time and
efforts stifling all producers with additional
bureaucratic procedures.
Arnold Tsunga, Jenni Williams Nominated For International
Human Rights Award
Zim Daily
Thursday, February 16 2006 @ 05:21 AM
GMT
Contributed by: correspondent
Two prominent
Zimbabwean human rights defenders and a Democratic
Republic of the Congo
national have been nominated for the prestigious
Martin Ennals Award 2006.
The Jury of the Martin Ennals Award for Human
Rights Defenders (MEA) have
announced that Anorld Tsunga and Jenny Williams
are in the running for the
award together with Golden Misabiko.
Tsunga is the
chairperson of the Zimbabwe Lawyers for Human
Rights while Jenny Williams
heads Women of Zimbabwe Arise, a pressure group
based in Bulawayo. In their
citation, the jury said Tsunga has been
representing victims of human rights
abuses and campaigning for greater
respect for human rights in Zimbabwe. "He
has repeatedly denounced the
undemocratic system of justice. He has been
threatened, detained, and is
constantly harassed.
On
Williams, they said she "continues to organise and lead
peaceful protests
against the ongoing erosion of human rights, in spite of
having been
arrested and beaten by the police." Ironically the nomination
comes at a
time when both the two are being troubled by the police. Williams
spent the
night in cells last night after being arresting while taking part
in a
demonstration on Valentine's Day. Together with 180 other women, she
demanded 'bread and roses' for Zimbabwe which is facing its worst economic
and political crises since independence.
Tsunga who is a
trustees of a radio station, the Voice of the
People, is out on remand after
being charged for Broadcasting without a
licence.
The other
nominee from the DRC, Misabiko has equally excelled in
denouncing human
rights violations in his country for the past 20 years. "He
was tortured in
2001 and had to flee the country in 2002 in view of death
threats. He came
back in 2005 and since then he has been detained several
times and
consistently harassed," noted the jury.
An Iranian national
Akbar Ganji, jailed for expressing publicly
his desire for democratic
reforms is also in the running for the top award.
The jury said; "He has
been tortured and ill-treated. Since 2000 he has been
charged of
"undermining national security and propaganda against
institutions of the
Islamic State". His supporters fear for his life. In a
statement, the jury
said they had decided to publicly announce the leading
candidates as they
were all in urgent need of protection.
" The four were
retained after careful selection by the ten
human rights organisations that
constitute the Jury. On 23 May, the Jury
will announce the final MEA
laureate at a conference in the Carter Centre in
Atlanta, USA. Among the
organisations involved are Amnesty International,
German Diakonie, Human
Rights First, Human Rights Watch, International
Alert, International
Commission of Jurists and the International Federation
for Human
Rights.
Reviving commercial agriculture in Zimbabwe
New Zimbabwe
By Dr
Alex Magaisa
Last updated: 02/16/2006 09:03:49
THE decline in agricultural
productivity over the last six years ought not
to be a source of
surprise.
Given the way the state handled matters pertaining to
agriculture, it was
always foreseeable that problems would arise. The
question is whether these
challenges can be overcome in the foreseeable
future. First however we need
to acknowledge and understand the
circumstances leading to this sharp
decline. Not that there is much
investigation that needs to be done - it is
whether we are honest and have
the necessary political will to accept the
shortcomings, most of which are
of our own making. There can be no solution
when a nation, especially the
leadership is in denial. No amount of sunshine
journalism, exemplified by
the usual grand predictions in the state media of
"bumper harvests" or
"normal rainfall season", can change the reality when
it is clear that
productivity has been in sharp decline.
Let us look at some of the
statistics as recently reported in the media. The
Daily Mirror of 8th
February 2006 quoted research conducted by Chemplex
Corporation, the
fertiliser manufacturer, on agricultural productivity in
Zimbabwe since
1999. Almost all statistics point toward sharp decline in
hectarage and
production. For example in respect of tobacco, the prime cash
crop,
hectarage declined from 86 000 in the 1999-2000 season to 46 000 in
2002-03
season and stands at 35000 this current season. This is less than
half of
the hectarage for the major foreign currency earner before the
invasions
leading to the land redistribution exercise. In respect of
commercial maize,
the hectarage declined from 155000 in the 1999-2000 season
to 60000 during
the current season - decline of more than half. Yields have
declined and the
pattern is set to continue. The same holds true in respect
of other
commercial crops, dairy and beef farming. Since agriculture was the
main
driver of the economy, it is unsurprising that its decline has impacted
heavily on the economic fortunes of the country. It is a classic case of
killing the goose that lays the golden eggs.
There are a number of
factors that account for this sorry state of affairs:
Much has been said
of the problematic land issue. Clearly, the post-2000
land policy lies at
the heart of this phenomenal decline. The purported
redistribution has only
effectively benefited a few well connected
individuals resulting in a simple
forced transfer from the white farmers to
privileged blacks most of whom are
multiple farm occupiers which exposes the
fallacy of the principle of
equitable redistribution used to justify the
exercise. The President himself
has spoken against those who took more than
one farm. Yet nothing has been
done to resolve the situation. The result is
that much of the prime land is
in the hands of a few people, with multiple
interests and less attention
toward farming. The so-called new farmers are
simply not putting land to
full and efficient use. To a large degree land
was taken from those who used
it efficiently for farming purposes and given
to those of privileged status
who hold it simply for sentimental reasons or
when time permits, to use it
as braai- spots. Instead of empowering people
and land being the driver of
the economy, its misuse has become the
principal cause of economic decline
and therefore the disempowerment of the
generality of the population. And
yet some old heads still persist with the
land displacements.
Second,
the current legal structure pertaining to land tenure does not
support
commercial agriculture. The government does not seem to appreciate
the
factors that made commercial farming so successful before. They probably
never did any research to understand why commercial farming was a viable. It
was not simply that the farmers had rich land - that is just one factor
among many that have been ignored. For example, the legal structure enabled
commercial farmers to pursue farming as a proper business. The crux of the
matter is that in any business you need access to capital and to achieve
that you need to offer security to the source of capital. That is where the
system of property rights played a crucial role. With secure property rights
farmers could create relationships with the finance industry to provide
capital and other resources necessary to support their businesses. Loans,
leases of equipment, insurance, et al form part of the core legal and
financial architecture that is necessary to help farming a viable business
venture. These cannot be available in a scenario, as is now the case, in
which there is so much insecurity and uncertainty over property rights. Many
financial institutions lost huge chunks of their assets related to loans and
facilities they had advanced in their relationships with the farming
industry. How can the state persuade the commercial institutions to return
to the agricultural sector when the situation of property rights is not
clarified? This probably explains why the Reserve Bank has imprudently
turned into a quasi-commercial bank, dishing out loans to support the
agricultural sector, a task that is well suited to commercial financial
institutions.
The good thing about giving proper title to land is
that it builds one's
personal responsibility for that property. To be sure,
government subsidies
may be necessary to build capacity and help new farmers
with teething
problems. Indeed, state support was also necessary to build
agricultural
capacity during the colonial period. Nonetheless, unless
closely monitored,
cheap finance creates a dependency syndrome and builds
complacency. The
moral hazard is that land users will tend to lose
responsibility and will
instead place over-reliance of the state. "Mari
yehurumende" (Government
loans) is a much-abused phenomenon. We have heard
many call it "imari isina
munhu" - that is, the money is free for all. It is
not surprising that the
central bank's assistance has been abused and used
for corrupt activities.
If one does not suffer personal loss there is very
little incentive to do
the right thing and bear responsibility. If these
people who have generally
abused the facility stood to lose out on their
land holding or other
personal assets, there is every chance that they would
allocate the
resources efficiently. Clearly the current legal structure in
relation to
land is inimical to any efficient allocation of resources that
is necessary
to support commercial agriculture.
In addition, the
necessary support industries that help to sustain
commercial agriculture are
either redundant or in a very poor state. I have
already argued how the
finance industry is a linchpin in commercial
agriculture. But farming also
needs industries that provide inputs such as
fertiliser, seed,
agro-chemicals, equipment, etc. Chemplex reported a drop
in the national
production of the essential Ammonium Nitrate fertiliser from
550 000 tonnes
in 1999 to 300 000 tonnes this season due among other things
to a lack of
foreign currency. Those that are available are expensive and
out of the
reach of many farmers. Now clearly, these shortages are directly
connected
to the poor economic and political conditions prevailing in the
country.
Unless the political challenges are overcome it is highly likely
that the
economic difficulties will continue to escalate. The unavailability
of these
inputs will therefore remain a problem for the foreseeable future.
Clearly,
the success of agriculture hinges in large part on overcoming in a
sober and
reasonable way the existing political challenges.
Much has also been said
about the effect of the unpredictable weather
conditions. In particular, the
government often blames drought for the poor
state of agriculture. While the
effects of drought cannot be dismissed in
some parts of the country, they
have also been overstated, to the point
perhaps of diverting attention from
the key shortcomings that have
debilitated the agricultural sector, most of
which are objects of human
construction. There are ways to deal with the
drought such as building
sufficient water reservoirs and developing crop
varieties that are suitable
for the conditions. These and other mechanisms
have always been put to use
in the history of commercial agriculture in
Zimbabwe. The poor weather
conditions are not new to Zimbabwe and while
commercial agriculture has
suffered during the bitter droughts such as in
the early 80s and early 90s,
farmers generally managed to cope during other
low rainfall seasons because
they had made preparations for such
eventualities. For as long we blame
drought for all the difficulties in
agriculture, we can never develop
because the weather patterns are likely to
remain unpredictable if not worse
in the coming years. The challenge is to
learn how commercial agriculture
devised ways of mitigating the effects of
drought.
Furthermore, there is also a dearth in research and development.
The
research stations around the country have done well in research and
development to serve agriculture over the years. As with any industry it was
realised long back that there is need to continually innovate and develop
new ways in agriculture. From seed and equipment to techniques, research
stations have played a key role and need to be supported by the industry and
the state. A chief element of R&D is the expertise, which continues to
drain
away as people leave for pastures new. I refer here to the farmers,
the
research scientists and experts in related industries who have been
driven
away by the political and economic difficulties. If the state is
serious
about reviving agriculture, there is need to swallow some
unnecessary pride
and bring back or retain the expertise that is necessary
for the success of
agriculture.
In a nutshell, the state must
recognise that commercial agriculture is
essentially a business venture and
like any other business requires
appropriate conditions for success. We do
not need to return to subsistence
farming. We spent years toiling and trying
to get out of that system. The
legal and financial architecture must be
designed in such a way as to
support agriculture from a business
perspective. The colonial system had its
problems, but perhaps a few lessons
could be drawn on how to support and
build commercial agriculture.
Unfortunately, some people take farming as a
hobby and do not take it
seriously as commercial business. Sadly, this fall
has led some people to
suggest that black Zimbabweans are generally
incapable of farming. That is
not true. The lazy and greedy people who
grabbed multiple farms are a
mockery to the hard working and suffering
peasant who toiled on poor land
for years, producing enough for himself and
his family, and with better
opportunities could have achieved more. The
peasant farmer was willing to
learn and knew that the land provided for his
survival. In many cases he
even had a fruitful relationship with the
commercial farmer, learning new
techniques and improving his lot. All he
ever needed was a share of the good
land and better resources but he has got
nothing. But the man of high rank,
his wife, his son, his daughter, his
grandchildren, his nephew, his aunt,
his distant cousin and his wives, sons
and daughters have each got a decent
farm . and they are doing nothing on
it.
Time must come when people
replace the sentimental value they attach to
land, with the commercial value
that it must be rightly accorded.
Ultimately, everything depends on whether
those wielding power have the
necessary political will to effect the
necessary changes to return to the
golden days of agriculture. I do think
that it is possible to learn from
past mistakes and start on a clean slate.
Where there is a will, there is
hope.
* Dr Magaisa is a financial
services lawyer and can be contacted at
wamagaisa@yahoo.co.uk
Zanu PF factions battle for Harare
New Zimbabwe
By Lebo
Nkatazo
Last updated: 02/16/2006 09:03:56
A FACTION of Zimbabwe's ruling
Zanu PF party led by retired army general
Solomon Mujuru this week lost its
bid to control the City of Harare after
their point man and President Robert
Mugabe's relative Chester Mhende, was
sacked as the city's turnaround
strategist on allegations of
insubordination.
A power struggle
erupted at Town House three weeks ago, pitting Mhende and
town clerk Nomutsa
Chideya, with the former saying he was in charge of the
town's
affairs.
Mhende, a Zanu PF politician from Norton, Mashonaland West,
whose job was
not provided for by the Urban Councils Act, was handpicked by
Local
Government minister Ignatius Chombo, the province's
kingmaker.
Sources said the Mujuru faction had seconded Mhende to Chombo
as they had a
belief that commission chairperson; Sekesai Makwavarara also
from
Mashonaland West, was in the Emmerson Mnangagwa camp.
Zanu PF
sources told New Zimbabwe.com: "The Mujuru camp is re-strategising.
They
have now resolved to see to it that Makwavarara goes and their chosen
candidate takes over Harare.
"Mujuru's group want to be in charge of
everything in Zanu PF. Makwavarara
is considered as a political turncoat who
belongs to Mnangagwa."
The sources added that although problems at Town
House came to the fore last
month, cracks began to emerge in September last
year.
Commissioners who resolved to fire Mhende rejected his turn around
strategy
saying it was economically unsustainable. Instead, they settled for
another
document crafted by Tendai Mahachi.
Mhende's blue print
consisted of radical prescriptions such as firing all
council workers and
asking them to reapply on an individual basis.
Mhende's sacking comes at
a time when government has shot down a bid by
Makwavarara to buy herself
furniture worth $35 billion for her use at the
mayoral mansion which she
currently occupies.
The importance of public support in fight
for Press Freedom in Zim
zimbabwejounalists.com
By Selbin Kabote
THE
support of members of the public is proving without any doubt to
be one of
the most important weapons, needed in the continuing battle to
sustain media
freedom in Zimbabwe.
Journalists and other Zimbabwean writers need
to win and keep the
support of the public by continuing their vigorous
campaign against
violations of media freedom and free expression. A veteran
South African
journalist, Allister Sparks, who was the winner of the 1996,
Media Institute
of Southern Africa-MISA Press Freedom Ward, pointed out when
he received his
award that: "The protective clauses in our constitutions
mean nothing
without public support".
With this statement in
mind, what is most worrying in Zimbabwe today
is that media freedom and
freedom of expression is being eroded, despite the
existence of a
constitution guaranteeing freedom of expression? Moreover,
the escalating
crisis in Zimbabwe is not just about media freedom, but the
mounting abuse
of human rights in general, hence the need for Zimbabwean
writers to be
credible in the eyes of the public, by intensifying the press
freedom
battle.
Media workers need to be very much aware of Media freedom
issues,
since common sense dictates that if media workers do not understand
the core
values of media freedom and freedom of expression, then their
audience - the
general public - is unlikely to understand and fight for
these freedoms
either. If the majority of members of the public in Zimbabwe
clearly
understood the importance of press freedom, then Zimbabwe's media
lawyer,
Beatrice Mtetwa would not be fighting a lone battle today, as she
defends
the six trustees of the Voice of the People-VOP- radio
station.
If the general public in Zimbabwe fully embraced their
rights to be
properly informed, we would be witnessing mass demonstrations
for press
freedom at Zimbabwean courts today, when Journalists go on
trial.
Police raided VOP's Harare offices on the 15th of December
last year,
confiscating equipment and files. They arrested three staff
members, who
were released after the chairman, David Masunda and director
John Masuku
reported to the police.
Despite the severe economic
hardships which our people are facing at
home, "Journalists included", there
is now a great need than before, for
Zimbabwean Journalists and other
writers at home and abroad, to write their
own stories, instead of allowing
themselves to be shut down by poverty and
repression.
Members of the public need to be sensitized about their right to be
informed
through courageous and defiant writing, as our nation continues to
battle
its way through yet another round of monolithic authority.
Against
this background, it is without any doubt, the responsibility
of all
Zimbabwean writers to express their own views on the calamity of post
colonial Zimbabwe and tell the world their version of the despotic rule, and
mayhem that has occurred on the beautiful land and former bread-basket of
Africa.
If Zimbabwean journalists stop chronicling how a black
and not a white
government is being accused of savagery, then as writers we
will never get
the support of the public in the battle for press freedom. If
we fail to
inform members of the public about their rights to be informed,
history will
certainly blame us for ignoring our responsibilities.