• MDC PRESS: Mugabe Needs To Add Substance To Mbeki's Encouraging Announcement
• Anti Hijack Trust
• Police probe grain scams
• Soaring inflation forces firms to hike borrowing powers
• Govt relocating illegal Gonarezhou settlers
• Money lenders must come under bank regulator’s ambit
• Is the Zimbabwean economy overbanked?
• Is Chiyangwa’s world collapsing around him?
• RBZ issues alert over increasing bank frauds
• $600 million vehicles for Makwavarara, Chideya
• Zanu PF desperate for urban voters
• Mbeki’s credibility as peace broker at stake
• The pendulum has swung . . . again
• In-fighting looms as Sibanda guns for top post
• Call companies to account
• Survive together — or die alone
• Counter invading ZANU PF turf (Part 2)
• A winning nation has nothing to hide
• Dairibord Embarks On Cattle Restocking
• Fresh Outbreak of Foot-And-Mouth Looms

MDC PRESS

22 January 2004

Mugabe Needs To Add Substance To Mbeki’s Encouraging Announcement 

Today’s comments by President Thabo Mbeki, suggesting that President Mugabe has agreed to enter formal talks with the MDC, are deeply encouraging. Similarly, we were encouraged when Mbeki made the same announcement after his visit to Harare back in December.

Following Mbeki’s comments back in December our initial sense of encouragement has been replaced by a degree of scepticism as to the nature of Mugabe’s commitment to a process of dialogue. 

To date, Mugabe and Zanu PF have taken no steps that would indicate a commitment to entering into a process of formal dialogue to end the country’s multi-faceted crisis. There have been no approaches to the MDC whatsoever. In fact it has been business as usual with court orders being ignored and political violence carrying on relentlessly.

If Mugabe has given President Mbeki renewed undertakings that he is prepared to begin negotiations then Mugabe himself needs to formally announce, to the people of Zimbabwe, that dialogue is to take place. Mugabe and Zanu PF need to demonstrate a tangible commitment to dialogue.

The MDC is ready for dialogue, as we unequivocally stated in December, but while we wait for Zanu PF the people’s suffering continues.

Paul Themba Nyathi

MDC Secretary for Information and Publicity

      1/22/2004 7:09:58 AM (GMT +2)

      THE hyperinflationary environment, which saw annualised inflation
peaking at 619.5 percent in November, has forced most firms to revise
upwards, directors’ borrowing powers as the need to maintain strategic
stocks has become more and more vital to the viability of businesses.

      However, alarm signals have recently been given on account of rising
interest rates that have left firms with high gearing in the lurch.

      Directors of sister companies Radar Holdings Limited (Radar) and
Border Timbers Limited (Border) will early next month seek increased buying
powers at extraordinary general meetings (EGMs) to be held on February 5 in
Harare.

      Radar will seek shareholder approval to increase of directors’
borrowing powers to a limit of $60 billion while Border will seek a ceiling
of $40 billion.

      "The increase in borrowing powers is to maintain parity of borrowing
powers with the aggregate borrowing powers of the company’s subsidiaries and
to make provision for the effects of hyperinflation on the limits of your
company’s borrowing powers," the two firms announced in identical
statements.

      Meanwhile, engineering and construction conglomerate Radar continues
on its aggressive share repurchase trail.

      Radar, which bought back 4 591 580 shares (8.29 percent of the issued
share capital) following an EGM held in August, will once again seek
shareholder approval for a further repurchase of shares.

      Next month’s EGM will consider the approval of the repurchase of 5 541
942 shares (10 percent of the issued share capital).

      This will see a total of 18.29 percent of the group’s issued share
capital being wiped off the register within a quarter.

      Radar, with a total issued share capital of 55 419 420 shares, is one
of the more tightly held stocks on the Zimbabwe Stock Exchange (ZSE) and
these buy-backs will see the counter becoming even more illiquid.

      Radar, whose stock grew by a phenomenal 2 448 percent last year to
close the year at $790, closed last week at $400.

      1/22/2004 7:38:54 AM (GMT +2)

      ARE money lenders a forgotten lot? How many registered money lenders
do we now have? Are they also of no fixed abode? Is there any on-site and
off-site supervision and surveillance or they operate on "auto-pilot"?

      Money lenders must come under bank regulator’s ambit

      ARE money lenders a forgotten lot? How many registered money lenders
do we now have? Are they also of no fixed abode? Is there any on-site and
off-site supervision and surveillance or they operate on "auto-pilot"?

      I think they also need to come under the ambit of the bank regulator
otherwise we have another case of an " accident-in-waiting". It has been
noted with concern that some of the registered money lenders are deposit
taking. They are also undertaking a number of banking activities for which
they are not licensed to do. It is the sincere hope of the writer that the
regulations governing the operations of these institutions be revisited,
focusing on such issues as to who administers the legislation. How many
registered moneylenders do we now have? Physical location etc.

      Basically it’s that information that is readily available for most if
not all registered financial institutions. The people who borrow from money
lenders as well as those who put their trust by making deposits with money
lenders need protection from the state. Protection in this regard refers to
protection from complete loss following the collapse of a moneylender or
protection from unfair possession of collateral in the event of a dispute
arising between the parties. Chimbadzo is sore and normally people end up
borrowing from them when they HAVE TO!

      One of the instruments used to tighten monetary policy is the deposit
ratio that has been increased by 10 percent for the traditional
institutions, including the introduction of this policy to other
institutions that have been traditionally exempted. While this is a good
measure of addressing the inflation challenge, sight should not be lost of
the fact that this remains an indirect tax to financial institutions (FIs)
since such resources do not earn interest.

      The introduction of other institutions that were previously exempted,
such as building societies, is a welcome move that would ensure resources
are directed to core business such as financing the development of housing
and property in general. In general, the measures are welcome as they level
the playing field in the financial sector.

      This is another piece of good news brought by the governor in his
monetary policy statement. Simplified, the auction market simply refers to
the means through which buyers and sellers of forex are brought together in
order to facilitate the smooth and orderly transfer of foreign currency.

      What the governor has done is total elimination of the risks
associated with trading forex on the informal market, such as in dark
alleys, at Roadport etc; elimination of the risk of buying fake money which
has been making rounds in the economy, leaving honest forex seekers in tears
after they had been duped by forex conmen.

      The informal parallel market, black market as others would prefer, has
been eliminated and what is now in place is a formal forex market where
rules of the market will be clearly defined. This is a market that is safer
than the "underground" one where people even risked losing all their money.

      The successful operation of the currency market will therefore depend
on a number of factors, some of which are discussed below. The Currency
Exchange Market should be:

        a.. A market where buyers and sellers can transact at a price
justified by market forces. Where necessary, intervention by way of
regulating the market to avoid unscrupulous traders would be necessary. This
will keep the market of traders or speculators who can mop the entire market
with the hope of reselling at the "sellers price"; or those who can mop the
entire market for purposes of financing illicit trade such as drugs or as
part of any other white collar crime.

        a.. A market that provides members or participants with timely and
accurate information on such indicators as volumes traded, settlement price,
price of past transactions, bid and offer prices etc. The ZSE has good best
practice to offer from which something similar could be emulated or improved
on;

        a.. A market that is fairly liquid and continuous i.e. one without
large price changes between trades, where a liquid market is defined as one
where forex could be bought or sold quickly at a price that is close to
prices for previous transactions;

        a.. A market with reasonably low transaction costs in relation to
the value of the trade e.g. brokerage costs, cost of transferring the forex
etc;

        a.. A market that responds and adjusts quickly to new information,
especially that information which has something to do with supply and
demand.

      While the implementation modalities are not very clear to many, it is
presumed that the Currency Exchange Market will also pick best practice from
our local stock exchange, which I think is rated high in the region and
elsewhere.

      I see similarities between the Currency Exchange and the stock
exchange with the difference lying in the product on offer, albeit the
implementation modalities are not necessarily going to be the same. Lest we
forget, the mistakes that contributed to the closure of the Zimbabwe
Agricultural Commodity Exchange (ZIMACE) should be taken as lessons not to
be repeated otherwise an inefficient market only invites the undesired
policy reversal by government.

      The Monetary Policy Statement is being applauded for a number of
factors, some of which include the following:

        a.. The positive steps taken of bringing discipline into the
financial sector is applauded as the benefits are already filtering down
into the economy through prices of money, forex, commodities etc. This may
be too quick to say but the indications seem favourable so far;

        a.. There is partial liberalisation of the interest and exchange
rates especially through the introduction of the currency exchange market
where currency will be auctioned. We hope this will kill the black foreign
currency market that has been thriving to the extent of threatening the
viability of the real sector;

        a.. The challenge of controlling the "impossible trinity" of
interest rates, exchange rate and inflation rates has been partially
attended to as there is now hope that inflation will come down over time on
condition there will be no stop-go policies or another policy reversal;

        a.. There is evidence of wide consultation. However, there may be
some who feel left out and such are encouraged to stand up and have their
voices heard;

        a.. Efforts to ensure a healthy and ethical financial sector
complement RBZ efforts to achieve price stability and stable value of our
currency. The governor is trying to bring DISCIPLINE into the financial
sector, so where rules of the game are not observed, it is vital that the
regulator does his job. All he needs is the support of every one.

      As I invite debate on issues arising from the Monetary Policy
Statement, I wish the authorities would consider the following as the
implementation of policy rolls out:

      1. Complementarity between fiscal policy and monetary policy is of
vital importance. At least monetary policy should not continue to do
fire-fighting for fiscal policy;

      2. Need for capacity building within the department responsible for
bank supervision. The supervisor should have capacity to assess unacceptable
levels of risk and capacity to assess and compare state-of-the-art risk
management models used in the banking sector;

      3. A healthy economy depends on a healthy financial system and the
banking system in turn depends on a healthy economy. We should not forget
that even healthy banks can be pushed into a crisis by macro-economic
instability;

      4. The Reserve Bank should minimise the moral hazard effect that
arises e.g. if bank management is aware that the RBZ will bail them out
should the bank become insolvent, that bank management may take additional
risk with the bank’s investment portfolio.

      5. Need for extensive public disclosure of financial institutions’
status;

      6. RBZ to ensure that banks have strengthened their internal
governance to address risk of losses from fraud as well as strengthen
management controls in banking;

      7. Is there a default consensus that the RBZ is the bank regulator, as
in bank supervisor? International best practice has evidenced the
establishment of an autonomous body solely responsible for bank supervision.
Probably this area needs national consultation and national consensus before
settling for a default arrangement;

      8. There is need to harmonise some policies in both the banking and
non-banking sector. For instance, who supervises money lenders and how many
are they by the way? I presume whistle-blowers have a job to do here but am
not sure if they will be rewarded too, since a lot of dirty work is taking
place in this sector that is now operating like a mini bank;

      9. Ensure prosecution of criminal behaviour and willingness by the
authorities to take robust action including closure against offending banks;

      10. No information is given on how whistle-blowers would communicate
their information. The sooner that information is made available the better
because some of us are raring to blow the whistle! Information required
includes physical location of the office, hotline? Payment modalities etc
and more importantly, no risk of victimisation.

      11. Deregulation of interest rates, if it goes unchecked in the
inter-bank market, may lead to excessive increase in real interest rates,
which could also lead to distress borrowing and inelastic demand for credit.
A hands-off policy by the RBZ on inter-bank borrowing may precipitate a
crisis shortly because of the risks that accompany that increase.
Institutions with large exposure to long-term assets that are funded by
short term liabilities may be adversely affected by excessively high
interest rates;

      12. Loans to directors, insiders, fraud, mismanagement, loans to
political interests etc tend to cause a concentration of risk, banking
difficulties and banking failures. Such practices should be kept under check
otherwise they do not only bring down banks but can threaten the viability
of the entire economy;

      13. With increased freedom of entry into the financial sector and
freedom to introduce new instruments, e.g. derivatives, options etc, (that
again tend to go unregulated for a while until there is a crisis), there is
a tendency that market players will take excessive risk, hence the need for
prudential legislation and supervision. By the way, where is the Securities
Bill? This has taken too much time and I hope it is for the good of the
economy, otherwise, a lot is happening and since there is no legislation to
prosecute imprudent behavior in the Money Market, Capital Market and now the
Currency Exchange Market.

      CONCLUSION

      To conclude, it is vital to note that both the market and the
authorities have a role to play in ensuring a sound banking environment
through prudent policies e.g. some which specify limits on credit,
liquidity, interest rates and foreign exchange risk. Everything should not
be left entirely to the market especially where the market seems to come up
with outrageous indicators e.g. 1000% interest rates in inter-bank
borrowing. This can kill the consumer who gives life to the bank. Remember,
where two elephants fight, it’s the grass that suffers. The consumer is the
grass in this case and it should not be the case, hence the call for
consumer protection. Policymakers and bank supervisors should continue to
pick best practice from banking sectors in other countries. Borrowing the
Zambian idea of auctioning currency is one such good example. We should not
try to re-invent the wheel unless it is really necessary.

      The council is battling funding problems, which have resulted in its
failure to acquire spare parts and water treatment chemicals.

      1/22/2004 7:49:31 AM (GMT +2)

      BULAWAYO — Zimbabwe National War Veterans Association (ZNWVA) leader
and former ZANU PF provincial chairman for Bulawayo, Jabulani Sibanda, has
set his sights on reclaiming the provincial chairmanship where he had an
inglorious exit after being booted out last year.

      Buoyed by his election as the ZNWVA boss in December last year,
Sibanda has since announced his intention to fight for the top ZANU PF
provincial post in the country’s second largest city, a development that
could once again re-ignite infighting within the ruling party. "I will be
taking part in the elections for a new provincial executive," Sibanda said.

      "There is nothing that can stop me. Those who have a problem with my
contesting the elections for a new executive, it is their problem. It will
be wrong for anyone to try and bar me from contesting and reclaiming my
post," said the former bodyguard of the late Vice President Joshua Nkomo.

      Sibanda was unceremoniously booted out from the ruling ZANU PF and
from the local ZNWVA chapter over allegations of graft and gross
insubordination.

      Investigations by The Financial Gazette revealed that Sibanda remained
expelled from ZANU PF, as the Politburo, the ruling party’s supreme
decision-making body, is yet to receive his appeal against dismissal. A new
executive for both Bulawayo and Harare provinces is expected to be put in
place before December this year when ZANU PF holds its congress, held after
every five years.

      — Staff Reporter

      1/22/2004 7:37:20 AM (GMT +2)

      INVESTMENT advisors have for a long time now always had financial
counters, the hitherto remaining seaworthy vessel for equity investors, as
their key picks among blue chips and mid-caps. But in a cruel twist of fate,
the glitter has just vanished and the financials are no longer in vogue.

      Although the stock market has broadly been in a manic-depressive mood,
it is mostly the financial counters that have grabbed investor attention for
the wrong reasons and hence have come off in a big way. And the Zimbabwe
Stock Exchange (ZSE) has since been forced to suspend three financial
counters until they issue cautionary statements clarifying certain pertinent
issues in the face of the unfolding financial sector crisis.

      This should be applauded as it could help put an end to the counters’
savage two-week slump and protect shareholders who today look at the
financial stocks, the real-turned-fool’s gold, with a mixture of disgust and
despair following their breathtaking losses. The counters’ terrifyingly
swift retreat was understandable after the financial sector hit stormy
waters. We have said it before that there is always this dark side to
runaway stock prices because as the market overheats, it becomes less
tolerant to the slightest whiff of bad news.

      Although it could be too early to say whether the financials will
overcome the three-week wobble, whipsawed investors, who must surely be
feeling that investing in shares is more like shooting craps, should have
been told the extent to which the all-embracing malady in the financial
sector impacted on these companies’ operations.

      The mind boggles therefore as to why the concerned entities had to be
forced by way of suspension to issue cautionary statements. Is this not one
of the basic requirements of the ZSE? These companies should know that the
only expectations they should live up to are shareholders’. They have
fiduciary obligations to the shareholders. Nothing less.

      It is the right of shareholders to demand full disclosure on such
issues and they must get it. They should not be deprived of this pertinent
information because remaining mum, as did the three, is somewhat misleading
to the shareholders. Good judgment should, therefore, have led the three
companies, which as it has turned out, were right at the scene of this
financial accident, to issue cautionary statements.

      It is this height of arrogance and total disregard for the bourse’s
requirements by the option-rich company executives which, if we might add,
has added strain to corporate credibility, that underline the need for a
radical shareholder agenda through the judiciary system and an overhaul of
the ZSE’s listing requirements to give the stock market more teeth.

      It goes without saying that, although generally speaking most
investors are risk-averse, risk is, however, an avoidable consequence of
investing in equities. Investing in shares entails all the advantages and
disadvantages of ownership especially insofar as both common stock owners
and preferred stockholders are concerned. It is a relatively risky
investment because the investors could lose money if the companies in which
they hold shares do not do well or even go bankrupt.

      This is why it is imperative that shareholders are kept abreast of
events that might have a material effect on their investments. Anything less
is unacceptable.

      1/22/2004 7:39:58 AM (GMT +2)

      FRIENDS of mine are rushing off to the rural areas to secure for
themselves plots of land where to grow crops to stave off hunger and
starvation. These are professional media workers retrenched for political
reasons or made redundant when their publications folded up in our shrinking
economy.

      They hardly expect to become rich. They merely hope to survive and be
able to feed their families.

      Some have tried their luck in South Africa or Botswana and come back
disillusioned and poorer than they went. Others still dream of making big
money overseas, queueing at foreign embassies for ever more expensive visas
and trying to overcome increasingly higher bureaucratic hurdles.

      You phone a friend and say: "See you next week". By next week he is
gone. There is enormous social disruption. People use you as long as they
think that your "influence" can help them, and walk away when your
"influence" has not produced results. "Everyone for himself, and the devil
take the hindmost".

      Mairos Mubvumbi believes that if you have God on your side, all will
be well with you. "God, being the senior covenant partner who owns
everything there is, has the obligation to bless, protect and provide for
the believer."

      But surely that cannot be the solution to our general malaise? Surely
it is not enough that a few using their divine "influence" will be blessed
while the godless masses remain in their misery? I do not recognise in the
God who is so particular about his friends the God of Jesus Christ who
socialised with "sinners and tax collectors", and other disreputable
characters.

      He does not allow us to escape from the general misery while leaving
the less fortunate behind: "When you obey God, He will bless your line of
business and you will be surprised by the financial increase that results
from obedience." That is the Pharisee talking (Luke 18: 9-14) who tries to
strike a business deal with his God.

      I do not hear in it the voice of Christ who commends the Samaritan
rebel attending to a suffering stranger, while frowning on the law-abiding
priest (Luke 10: 29-37), and who holds us responsible for our sick,
imprisoned and famished fellow human beings (Matthew 25: 31-46).

      Not the people who win the rat-race will be blessed, but those who
drop out of the race altogether and pick up the stragglers.

      We will save this country only if we all of us pull together and
accept responsibility for the life and well-being of everyone, even of the
white "enemy of the state", the displaced Malawian farm labourer, the person
dying of the unspeakable disease and the "traitor" supporting the wrong
party, raped and tortured.

      We will save this country only if we are once more able to act in
solidarity. That means as much as saying: your trouble is my trouble, what
hurts you, hurts me, when you are imprisoned I cannot be free either.

      Prosperity is never just for me. Wealth is never just my private
fortune and good luck. There is no absolute right to private property (that
is the element of truth with which one could have tried and justified our
"land redistribution" before it went so disastrously wrong and turned into
an orgy of greed). Whatever gifts I have — knowledge, skills, health, talent
for leadership, capital, land — I am given for the up-building of the
community.

      God never blesses just me, but always us. And maybe the rest of us
through me: if I play my role and serve them in whatever way I can, their
lives will be saved. If I fail them, they will be lost. God makes us
dependent on one another and responsible for one another. He does not
interfere with signs and wonders, dropping gift parcels from heaven.

      Government and the striking doctors jointly are responsible for the
many people who are at present dying — nobody will ever be able to exactly
identify them all, but I know personally at least a number of them — as a
result of government hospitals being at a standstill. God will not let us
off the hook by working miraculous cures to save them. We all of us together
have the power to stop this awful suffering, and we will be asked why we
have not done so.

      We have the technical means and the skills to eradicate almost all
infectious diseases. If we acted in true solidarity worldwide we could do
it. Why don’t we? Why do we spend more on arms, on the military and security
(often a euphemism for political oppression) than on public health care
(e.g. our budget for 2004)?

      Before I try to strike a deal and offer God my "perfect obedience"
(Mubvumbi) in return for my personal health and prosperity, we should ask
ourselves what we are doing to promote health for all in a healthy,
productive economy.

      If our leaders stopped all those wars which are destroying communities
and families on our continent, we could tackle AIDS in earnest. You cannot
fight this disease with a dilapidated economy like ours. Dying of AIDS is
not an act of God. It is due to human neglect.

      If we used all available human resources, skills and experience, we
could face the common enemy. Instead greed and jealousy divide us and turn
fertile fields into wasteland. We either join forces and survive. Or we go
it each alone and die.

      People’s power that crosses all ethnic and national boundaries will
give us prosperity. The land is not our prosperity. It gives us merely weeds
unless our ploughs touch it.

      Individuals being blessed by "financial increase" is not enough. Where
there are many losers there must be at least some winners. What is our
hyper-inflation but one vast confidence trick?

      I do not believe that God blesses the prosperity of those lucky few
while the country as a whole sinks still further. There must be an increase
in production in real terms for the country to prosper. And all its people
must have access to that newly created wealth, not just those who make the
correct political choice or pray in the right way.

      Fr Oskar Wermter SJ is a Catholic priest based in Mbare and a writer.

      1/22/2004 7:40:41 AM (GMT +2)

      After fortifying its traditional support base as we saw last week,
ZANU PF is now making some very interesting manoeuvres to try and win back
the loyalty of the country’s intelligentsia and the urban electorate, which
is the MDC’S traditional support base.

      Last week, I discussed how ZANU PF is consolidating its support
structures ahead of the next general elections by patronising, in addition
to the war veterans, the war collaborators, ex-detainees and restrictees,
using the liberation war legacy as its trump card. I suggested that the best
way for the opposition to deal with this complexity is to start by
reclaiming the liberation war legacy, which has been privatised by ZANU PF.

      For instance, rather than having a simplistic blanket criticism of the
allowances given to the war veterans, the MDC could advocate for means
testing of all assistance given to the ex-fighters.

      This would mean that only ex-fighters who are unemployed, destitute,
poor and landless should receive support. War veterans who are gainfully
employed, in charge of the armed services, running the government, or have
successful businesses, either as beneficiaries of the land reform programme
or various other indigenisation and black-empowerment schemes surely do not
need any assistance. This should also apply to war collaborators and their
sister organisations.

      If the MDC is not careful, it will further alienate itself from this
powerful force in Zimbabwean politics and will further lose grip on the
liberation war legacy much to the detriment of the party.

      If means testing is applied to all the allowances given to the war
veterans now, the total expenditure on the ex-fighters can be reduced by
more than 60 percent. The fact that the chief criminals in abusing funds
meant for the war veterans were the undeserving elites running the armed
forces and the government is an instructive departure point. It is totally
unwise for the opposition to push simplistic and opportunistic ant-war
veteran rhetoric without properly understanding the dynamics at play.

      Of course, there are individual war veterans and collaborators inside
and outside government structures who, for personal benefit, are behaving
like paid mercenaries and prostitutes on behalf of ZANU PF. However, this
does not warrant surrending the entire liberation war legacy, lock, stock
and barrel to the ruling party. ZANU PF does not deserve the liberation war
advantage that it is being given on a silver platter by the opposition.

      Newly resettled farmers also constitute a very fertile ground for ZANU
PF support. Government has set aside $64 billion in this year’s Budget to be
disbursed to the new land-owners through the Land Bank for input
acquisition. If this money is not abused by bureaucrats within the party and
it gets to its intended beneficiaries, we have a situation whereby it will
be extremely difficult for the MDC to win the loyalty of these people.

      The opposition must see to it that the $64 billion is disbursed
transparently and to deserving people, otherwise that money will be used for
ZANU PF campaign purposes. If there happens to be any misallocation or
embezzlement, it is the duty of the opposition to expose such anomalies and
malpractices and put them within the broader framework of our struggles.

      In an effort to invade the MDC’s traditional support base, the
government has awarded a 250 percent salary increment to all civil servants
across the board with effect from this month. It should be realised that
government is the biggest employer and this move could cripple efforts by
the Zimbabwe Congress of Trade Uunions (ZCTU) to stage mass demonstrations
in protest against the state of the economy, high cost of living et cetera.

      If this is conceptualised within the context of the monetary policy
announced by Reserve Bank Governor Gideon Gono, the implications could be
great. A lot has already been said and written about the monetary policy and
its unprecedented efforts to rationalise Zimbabwe’s macro-economic
fundamentals, particularly in the financial services sector.

      If there happens to be an improvement in the economy as is already
evident in the form of increased inflows of foreign currency on to the
official market, reduction of the hyperinflationary rate and an increase in
the disposable income of urban workers, then the government might get
substantial support from the urban electorate. The government’s success or
failure in this regard depends on how the opposition will react and on
whether or not they will be offering better alternative policies.

      The first real fruit of the monetary policy is the increased inflows
of foreign currency onto the official market, resulting in our dollar
getting a bit of strength against the world’s major currencies. The
crackdown on corruption and laxity in the financial sector can also improve
things even further. The opposition must be pragmatic and argue that the net
against corruption must be cast wider.

      It cannot be doubted now that there is rampant corruption in all
sectors of the economy. What with recent developments in the ENG saga,
multiple ownership of farms and the tractor scandal, the impasse between
medical aid societies and doctors, corruption in the judiciary and
God-knows-what.

      There must be a holistic approach to corruption involving the setting
up of an independent anti-corruption commission, with powers of
investigation, search, seizure, arrest and other ancillary powers, rights
and privileges that naturally fall within that ambit.

      This is what the opposition should be pushing for. They have got their
parliamentary seats and popular support to their side so there is nothing to
fear. The refusal by the government to institute major anti-corruption or
anti-graft drive in the face of all these scandals would be itself
scandalous for it would mean, by implication, that they also have some
skeletons in their cupboards and this is where the opposition should make
the most noise.

      It may be wise for the MDC to resume political activity now focusing
on issues of the economy with particular emphasis on corruption and
vigorously supporting those positive aspects of the monetary policy. The
current cosmetic anti-corruption move by the government is just an attempt
to win back the International Monetary Fund (IMF) thump of approval between
May and June this year when the fund embarks on its routine Article iv
consultations with the Zimbabwean government, and to hoodwink the urban
electorate into voting for ZANU PF in the next general elections in 2005. At
least that’s my interpretation of it until and unless better political will
and commitment to fight corruption is exhibited.

      I have a feeling the governor of the central bank will soon be stopped
by very heavy political hands and I just hope he wont be assassinated. Oh
yes, it can be that nasty. My perception of corruption in Zimbabwe is that
it is all-pervading. It is like a complex spider’s web and to attack any
part of this anomalous and fossilised structure would mean, by implication,
to attack every other part, including executive power itself.

      In that case, it is tactical for the MDC to support the monetary
policy and what it seeks to achieve and they must always be vigilant and
ensure that no-one use their "economic and political muscle" to scuttle
investigations. Of course, this is assuming that the party’s cadreship is
not also privy to some of these unfolding shady deals. If the governor’s
monetary policy is implemented untempered with, ZANU PF may be hoist with
its own petar because in as much as the government has complained of
economic sabotage, it is becoming apparent that the biggest saboteurs are
from within the system.

      If the MDC stands aside and watch without making any input, ZANU PF
and the government will again claim to have solved the economic mess that
they are widely believed to have wrought on the nation. If the economy
recovers, the government might as well decide that there is no more need for
any POSAs and AIPPAs and thus democratise. Once they democratise, they will
then claim to have solved both the land question and the democracy and human
rights questions so dear to the MDC, in addition to its monopoly over the
liberation war legacy.

      If the MDC is not careful, it will soon be rendered irrelevant. The
party has to learn to be combative and pragmatic in using ZANU PF strategies
against ZANU PF itself so that the party gets hoist with its own petar.

                  1/22/2004 7:36:33 AM (GMT +2)

                  IN the late 1980s to the early 1990s, South African
industrialist Clem Sunter became a household name because of the dynamic
lectures he gave on South Africa’s options for a brighter post-apartheid
future.

                  I remember being a great fan of Sunter, whose High
Road/Low Road Scenarios made him a one-man think-tank for South Africa and
any other developing countries that cared to borrow from his philosophy.

                  But if the truth be told, I admired Sunter’s forward
looking and perceptive thinking in a rather smug way. I felt that Zimbabwe
was so far ahead of South Africa and many other countries in Africa with
regard to the fundamentals for development spelt out by Sunter that it would
take decades for them to catch up.

                  How wrong I was! Things have changed so much for the worse
in Zimbabwe since the on-going political turbulence began in 2000 that I
have had to eat my words. Recently while rummaging through my papers, I came
across a newspaper cutting of a report on one of Sunter’s lectures and read
through it again. I was shocked to discover that Zimbabwe was now at the
bottom of the heap on aspects which I had previously proudly marked with a
star to indicate my country’s sterling performance at that time.

                  Sunter gave a long list of pre-requisites for a "winning
nation", but I have picked a few which show why our country has gone to the
dogs.

                  lCLEAN GOVERNMENT: Sunter said: "For this, you need a
multi-party system and plenty of elections to give citizens an opportunity
to vote out bad politicians. Beyond a certain level of corruption, people do
not work because they are totally disillusioned."

                  It is ironic that all our current troubles stem from a
refusal by the ruling party to accept that anyone else except ZANU PF has
the right to govern this country. While in Sunter’s scenarios, elections are
supposed to protect the electorate; in Zimbabwe’s case, their sole purpose
seems to be to protect the ruling party by hook or crook to ensure that it
remains in power perpetually.

                  lSOCIAL HARMONY: Sunter said: "If people fight and kill
one another, you cannot have a winning nation. People must use energy
constructively and there must be a strong sense of social justice running
throughout society."

                  The complete opposite has happened in Zimbabwe because of
the political violence and lawlessness that has dominated events since the
people voted "NO" in the 2000 constitutional referendum.

                  lMONEY: Sunter said: "You cannot create something out of
nothing, savings equal investment. We must bring inflation to single
figures …"

                  Zimbabwe’s money troubles have been more than obvious even
to the most economically uninitiated. The ongoing turmoil in the finance
sector more than proves Sunter right. As for inflation, the new Reserve Bank
Governor Dr Gideon Gono’s goal is to bring the country’s hyper-inflation to
a lower three figure rate of 200 percent by the end of this year. Reaching
single digits will be a miracle. Will we ever be a winning nation again in
that department?

                  lWHAT MAKES A WINNING NATION: Sunter said: "In the 1960s
‘losing’ nations benefited from international aid, but now that world banks
have had their fingers burned, losers don’t get a cent."

                  Sunter’s comments seem spot-on for Zimbabwe in view of our
troubles with the World Bank and the International Monetary Fund.

                  lVALUES: Sunter said: "By 1985 the world was moving away
from ideologies towards ‘systems that work’. People are fed up with
ideologies such as Marxism and apartheid as well with anyone who comes up
with a single idea claimed to be the answer."

                  In Zimbabwe, we urgently need the levelling of the
political playing field so that people from all walks of life can contribute
to political discourse. This should not be the preserve of members of the
ruling party only.

                  lBE A GLOBAL PLAYER: Sunter said: "The last requirement
for a winning nation is to be a global player — to look outwards. Outward-
looking economies grow three times faster than inward-looking ones and
export their strengths."

                  Zimbabwe’s illogical drive to make itself an island doing
things its own way culminated in the country’s sulky withdrawal from the
Commonwealth towards the end of last year. One of the reasons given by the
leadership for this unwise move was that this would forestall the
Commonwealth’s efforts to monitor Zimbabwe and get the government to attend
to issues raised by the grouping. What a tragic development this is.

                  A winning nation should not have anything to hide and
should take pride in being transparent. The world has truly become a global
village and to deny the inter-dependence that goes with this phenomenon is
unrealistic and unreasonable.

                  When I last read about Clem Sunter, he was about to take
over as chairman of Anglo American’s Gold and Uranium Division.

                  But while writing this article I have found myself asking,
where are you, Clem Sunter? Could you perhaps come up with a winning formula
to help our politicians develop an open mind and the ability to change? To
tell them all is flux — that nothing is static except a skeleton.

Financial Gazette (Harare)

January 22, 2004
Posted to the web January 22, 2004

Harare

DAIRIBORD Zimbabwe Limited (DZL) has embarked on an ambitious cattle
restocking prog-ramme under which the company will fork out $2 billion to
farmers for the importation of dairy cows.

DZL chief executive officer Anthony Mandi-wanza said this was part of his
group's efforts to rebuild the country's national herd.

"Farmers can now access this facility to import additional dairy cows,"
Mandiwanza said.

The country has lost a big chunk of its dairy cows to diseases such as the
foot-and-mouth.

In its unaudited interim financial results for the six months ended June 30
2003, DZL said the volume of raw milk received declined by 27 percent due to
diseases and the chaotic land reforms.

Focus, DZL said, would be on increasing the dairy herd so as to produce more
milk as well as non-milk products.

Financial Gazette (Harare)

January 22, 2004
Posted to the web January 22, 2004

Zhean Gwaze
Harare

ZIMBABWE risks a fresh outbreak of the dreaded foot-and-mouth disease (FMD)
after the government failed to source enough foreign currency to buy the
vaccines necessary to eradicate the disease.

Zimbabwe needs about one million doses of vaccines a month to completely
wipe out the disease which threatens to reduce the country's cattle herd.

The vaccines are imported from neighbour-ing Botswana's Vaccine Institute.

The Department of Veterinary Services has of late indicated that a national
vaccination programme was required to combat FMD, but this has not been done
due to foreign currency constraints.

Zimbabwe has partially managed to contain the disease through paltry doses
of vaccines sourced through appeals from international donor organisations
such as the Food and Agriculture Organisation, European Union and the
Southern Africa Development Community.

An official in the farming sector this week told The Financial Gazette that
another outbreak of FMD was looming, warned against uncontrolled movement of
livestock because of a shortage of pasture precipitated by poor rainfall in
most parts of the country.

"The government has failed to erect the 600 square kilometre fence in the
areas most affected by FMD due to forex shortages and as a result, it should
put measures to administer a national vaccination programme before the
cattle herd is depleted," the official said.

The national herd is said to have dwindled from 5.1 million in 1998 to 250
000 this year due to drought, FMD, an acute shortage of stockfeed and
destocking by most farmers because of the chaotic land reforms. FMD
outbreaks have impacted negatively on Zimbabwe in recent years as thousands
of cattle have died.

The country has stopped exporting beef to the European Union and regional
countries because of persistent foot-and-mouth outbreaks and a decline in
the national herd.

The country was still exporting limited beef to the Democratic Republic of
Congo. The quantities could not be established by the time of going to
press.

Zimbabwe had an annual export quota of 9 100 tonnes of beef to the EU which
used to earn the country about US$2 billion annually.

The government is said to be trying to seal a deal with China to establish a
FMD vaccination production plant facility locally and save the country
billions in foreign currency.