The ZIMBABWE Situation | Our
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Exporting producers also have limited access to hard currency due
to
regulations compelling them to surrender half their US dollar earnings
to
the central bank in exchange for Zimbabwe dollars at an
unattractive
official exchange rate.
President Robert Mugabe's
government has maintained the official rate
at Z$824 to the US dollar since
February, but the local currency trades as
high as Z$5 600 on the parallel
market, prompting calls from mining
companies for the rate to be
changed.
The chamber said:
"The amount of foreign
currency being retained by mineral producers is
no longer sufficient to
maintain, let alone grow, the sector."
The industry was also
battling to contain operating costs in a
hyperinflationary environment that
has pushed the prices of inputs to
unsustainable levels.
"It is
no longer possible to undertake long-term planning, an activity
critical to
the survival of the industry," the chamber said.
Figures provided
by the chamber yesterday showed that 50 mines across
the sector had closed
since 1996, mainly because of viability problems.
But the chamber
said it was not aware of any closures directly linked
to the fuel
crisis.
The foreign currency and fuel shortages are symptoms of an
economic
crisis widely blamed on government mismanagement, and also shown in
food
shortages, record unemployment and one of the world's highest rates
of
inflation at nearly 460 percent.
Mugabe denies that his
government has mismanaged the economy and says
the economy has been sabotaged
by local and foreign opponents.
JAG OPEN LETTER FORUM
Email: justice@telco.co.zw; justiceforagriculture@zol.co.zw
Internet:
www.justiceforagriculture.com
Please
send any material for publication in the Open Letter Forum to
justice@telco.co.zw with "For Open Letter
Forum" in the subject
line.
---------------------------------------------------------------------------
Letter
1:
Dear JAG,
After all that has been written on the Forum and
after all the debates that
have taken place, are we anywhere nearer to an
answer? Is there a consensus
emerging, a meeting of the minds, or are
farmers/ex-farmers just doing
their own thing without any plan or moral
principles? At one time we could
sit down as a group, discuss a matter, come
to a decision and each and
every individual would keep to his side of the
bargain and honour the
agreement, often at no little cost to himself. Japie
Jackson once
mentioned salt....... are we still worth our salt?
By way
of a test I would like to outline my scenario and then ask the Ben
Freeths,
the Kinnairds, Dave Jouberts and Willie Robinsons for their
considered
opinions. I must not forget of course the Taylor-Freemes and
Hawgoods of this
world, their views are important too.
Here goes: We were thrown off our
farm last year. Our
neighbours/friends/town-friends were superb; they helped
us in so many ways
morally and physically. We lost considerably, but refused
to make any deals
with the regime. And so we settled in town, our spirits
dented but our
principles intact. We had been able to keep a few cattle back
on a kind
neighbour's farm so we still had a tenuous stake in
farming.
Sometime later I was stopped on the road near the "old" farm by
one of the
war-vet squatters. He suggested I take my cattle back to the farm.
He
wanted me to pay rent for the cattle and at the same time supply water
to
the intruders. I was sorely missing our farm and the prospect of a
partial
return was tempting, but I refused the offer. I firmly believe that
it is
morally wrong to work with these criminals. In any case to do so would
be
to give them a sense of legality and at the same time facilitate
their
occupation of my property. I want them to struggle; I don't want to
make
their stay possible let alone worthwhile.
Question: Am I being
stupid?
Moving on: There were no cattle on the farm. The grazing was
thick and
lush........that was until one of our local entrepreneurs, and one
time
"friend", made a deal with the squatters, without my knowledge, to cut
and
bale my grass. This has been going on for months, he must have
reaped
thousands of bales. At nearly $2000.00 per bale he's made a fortune
out of
my predicament. I had no hesitation in adding his name to the list of
ZANU
PF cadres/war-vets/undesirables etc. who will be summoned to court
when
this saga unfolds.
Question: Am I being unreasonable? Should I
forgive and rejoice in his
ability to survive in such harsh times?
The
final part of my poser arose the other day. One of my "old" neighbours
asked
if he could make an arrangement with the squatters to graze some of
his
cattle on part of my farm. The fact is, I refused .....my very words to
him
were: "I'd rather you didn't." I then suggested he put his cattle on
the farm
where our cattle had been grazing since we were actually in the
process of
disposing of our herd. I have since been vilified by a third
party for using
offensive language and for not helping a neighbour in
trouble. He condemned
me for being "so unchristian".
Question: Did I do wrong? What would you
have done in my place?
I don't want to turn your Forum into "The Dear
JAG, Agony column", but I
would like to hear what other people have to
say.
A.R.B-Walker.
---------------------------------------------------------------------------
Letter
2:
Dear Vanessa,
It is only when we stop**.
stop blaming
CFU
stop pointing fingers at our neighbours for paying off the regime
stop
undermining each other
stop looking behind us
and start looking
forward**.
that we will be able to heal and repair*
Best
regards
Jean
Simon
---------------------------------------------------------------------------
Letter
3:
On a trip to Harare from Mutare I happened to stop in at Macheke
Motors to
buy a drink, out of curiosity I asked the attendant if he had any
diesel
for sale!!! His answer was yes, but only for farmers, I informed him
that I
was a farmer but all I got was an embarrassed grin, of course it is
only
for farmers, but black farmers only, and the price? $200.00 a litre.
What a
sham and a dreadful use of taxpayers' money. How can a farmer like us
ever
hope to survive?
Tessa
Wiggins
---------------------------------------------------------------------------
Letter
4: Harare Anglican Church
If I was Anglican, I am sure I would be working
flat out to have this evil
removed from my church! It would appear that the
Anglicans are doing
absolutely NOTHING about this dreadful blot on their
copybook.
>From The Sunday Times (UK), 26 October
Anglican
bishop grabs white farm in Zimbabwe
Brian Latham and Jon Swain
An
Anglican bishop has seized a previously white-owned farm for himself and
his
family in one of Zimbabwe's prime agricultural districts. In the
process,
Nolbert Kunonga, the Bishop of Harare and a close associate of
President
Robert Mugabe, has evicted more than 50 black workers and their
families to
make way for his own staff. Senior figures believe Kunonga's
actions will
damage the international reputation of Anglicanism. "The
Anglican Church is
going to be compromised by this action. It will
debilitate our authority,"
said a source close to Rowan Williams, the
Archbishop of Canterbury. "Dr
Williams is determined Anglicans should
provide a solution and not a problem
to the crisis in Zimbabwe." St Marnock
's farm, which Kunonga has taken over,
is just 10 miles from the old
stone-clad cathedral of St Mary's in the centre
of Harare, the capital,
from where he officiates. Since his controversial
election in April 2001,
Kunonga has been one of the most wayward figures in
Anglicanism and a worry
for Williams. The archbishop has taken a close
interest in Zimbabwe and was
briefed on the situation there earlier this year
by Pius Ncube, the
Catholic Archbishop of Bulawayo and a critic of Kunonga.
Ncube once accused
the Anglican Church in Zimbabwe of aligning itself with
the "forces of
evil".
Visitors to St Marnock's said yesterday that
Kunonga's son had moved into
the seven-bedroom farmhouse overlooking a dam
and what were once 2,000
acres of wheat and soya bean fields, now abandoned.
"I'd love to get back
there to farm again, but I can't see it happening
soon," said Marcus Hale,
25, the legal owner of St Marnock's, who studied at
the Royal Agricultural
College in Cirencester, Gloucestershire. "There's
nothing happening there
now. The machinery is all lying useless in the sheds
and they won't let me
take it. No one has done anything about planting a crop
for this season."
Hale was kicked off his farm some months before the 49-
year-old bishop
took it over. "I think Kunonga wants the farm because it's so
close to
Harare and he thinks he can use it for property development," he
said. It
is believed Kunonga was given Hale's farm as a reward for his
outspoken
support for Mugabe. He has mocked the president's black opponents
as
"puppets of the West". Mugabe's policy of land seizures, which has
plunged
the country into its worst crisis since independence from Britain in
1980,
is largely being blamed for a two-year hunger crisis that threatens
the
lives of 5.5m Zimbabweans.
Additional reporting: Christopher
Morgan
---------------------------------------------------------------------------
All
letters published on the open Letter Forum are the views and opinions
of the
submitters, and do not represent the official viewpoint of Justice
for
Agriculture.
The Herald
Ticket scam hits NRZ
Herald Reporter
A TICKET scam
has apparently hit the National Railways of Zimbabwe, with
some of the
parastatal’s employees, acting in concert with some printers,
coming up with
fake tickets.
Two employees were arrested after they were allegedly found
with 3 000 fake
commuter train tickets in Harare this week.
The two,
who were supposed to sell genuine NRZ tickets to commuters, were
allegedly
selling fake tickets to unsuspecting commuters at the
railway
station.
According to the police, alert members of the public
provided them with
information that some NRZ employees were selling fake
tickets.
The two were arrested when they had gone to collect the fake
tickets from a
printing company.
They are still in police custody and
are expected to appear in court soon
facing fraud charges.
It is
alleged that the suspects would approach some printers who would
re-print the
original tickets that they would have been issued to sell by
the
NRZ.
"The printing company would copy the original tickets using even the
same
ticket numbers as the originals," said Harare police spokesperson
Assistant
Inspector Memory Pamire.
She said the printers told the
police that the two suspects had approached
them at least four
times.
The Government introduced commuter trains to ease transport
problems in
Harare and Bulawayo. Their fares of $150 for a trip to and from
town, are 10
times cheaper than commuter omnibuses which are charging between
$1 000 and
$2 000.
FinGaz
200 000 policies up in smoke
Staff
Reporter
10/30/2003 8:57:07 AM (GMT +2)
OLD MUTUAL, the
local bourse’s bellwether stock, is taking the unusual
step of prematurely
phasing out 200 000 policies to ostensibly put an end to
an inflation-induced
savage slump in the value of the policies — underlining
the economic fall-out
and sweeping nature of run-away inflation.
This exercise that will
see the insurance giant paying out $15 billion
to qualifying policyholders is
being handled by Old Mutual’s individual life
portfolio whose assets are
estimated at $45 billion.
A company official yesterday told The
Financial Gazette that the
policies that were being phased included all those
over two years old
excluding "market-linked products". This also included
taxed, pure
investment products such as pure endowment policies without life
cover.
The policies to be phased out are generally known as
Reversionary
Bonus policies, usually taken out under various names such as
education
policies or for other specific purposes as raising a deposit for a
house or
similar goals.
"A special actuarially determined payout
value has been worked out.
Depending on the length of time the policy has
been on the books, this
special value could be equal to or less than the
original maturity value.
Obviously, the longer the policy has been on the
books the greater the
value. We believe the special payout value to be fair
to the client," said
George Dire, general manager for Old Mutual Unit
Trusts.
Although the plan is still thin on detail and hazy as to
the
timetable, the move is most likely to leave a nasty taste in the mouth
for
shell-shocked policyholders, waking up to the fact that their several
years
worth of investments are now worthless. It also underscores how
the
hyperinflationary environment is playing havoc with the people’s lives
in
Zimbabwe today .
The deep-seated inflation crisis has been
distressing to investors’
psyches, as it has been exceedingly costly to their
portfolios. Except for
the Zimbabwe Stock Exchange which, being the only
seaworthy vessel for
investors, continues to defy both logic and gravity,
most investment
instruments have realised negative returns against the highly
inflationary
environment.
Government, which itself has been
roundly accused of fuelling
inflation through its insatiable appetite for
funds, has failed to come up
with inflation-beating measures. The rate of
inflation is conservatively
projected at just above 500 percent by the end of
the year.
A significant number of the affected policy-holders might
have taken
out the insurance policies during the rush to buy policies ahead
of
demutualisation in the hope of getting cheap shares. Old
Mutual
(demutualised) changed from a mutual association to a company some
five
years ago. This effectively separated the policyholders or the customer
base
from shareholders.
Market watchers said there was credence
to claims that policyholders
risked having the values of their policies
completely wiped out as the
country grapples with surging inflation. But
policyholders caught between
reality and insecurity could take the news with
a mixture of disgust and
despair as the implications of this surprise move
begin to sink in.
Old Mutual said this week that it was in the
interest of the
policyholders for the company to calculate special encashment
values after
which clients could purchase new products using the funds from
their phased
policies, invest the money in the Old Mutual Group or leave
their policies
as they were but mindful of the implications of inflation on
their values.
The company said to avoid such a situation in the
future, it had now
developed a new generation of products tailor-made for the
Zimbabwean
economy where both life cover and premiums would grow in line with
changes
in inflation. This would ensure that benefits would remain relevant
at claim
stage and also that premiums kept their real value.
Fingaz price up
THE cover price of The Financial Gazette will
increase to $1500 with
effect from November 6, Fingaz general manager Jacob
Chisese announced this
week.
Chisese said the recent huge
increases in the price of newsprint and
other production costs had
necessitated the latest increase from $1 000 to
$1 500. The newspaper’s cover
price was last reviewed at the beginning of
this month.
Chisese
said the latest increases would not immediately affect
existing subscribers.
He said subscribers could renew their subscriptions at
the old rate until
November 6.
FinGaz
Gold tycoon nabbed in SA
Zhean Gwaze
10/30/2003 8:58:02 AM (GMT +2)
A PROMINENT Zimbabwean business
tycoon was arrested in South Africa
last week after he was found in
possession of 144kg of gold worth an
estimated US$2 million (about $12
billion on the parallel market).
Acting on a tip-off, the police in
South Africa arrested the
businessmen and his son (names supplied) on October
17 2003 for possessing
the bullion in their private plane, which had landed
at the Johannesburg
International Airport.
Details of the flight
seem to suggest that the private plane, a Cessna
210, had been flown from
Harare via Beira.
The precious metal and the private plane have
since been impounded
pending investigations as the South African police move
to unravel the
jigsaw puzzle. The net closed in on the businessman as it
emerged that he
has been supplying an average of 100kgs of gold per week to
the South
African-based Rand Refineries.
Sergeant Sanku Tsunke
of the South African Police confirmed to The
Financial Gazette yesterday that
the businessman, who operates family gold
milling centres in Bindura and
Shamva as well as a tyre franchise in Harare,
was discovered with the 144kg
of gold.
Tsunke said the businessman and his son were then summoned
to the
Johannesburg Central Police Station’s gold unit squad for questioning.
The
two were later released after the police recorded
statements.
"The police wanted to confirm whether there were no
illegal dealings
involving the gold. At this stage we cannot say what the
police findings are
because investigations are still going on," Tsunke said
in a telephone
interview.
Police in South Africa have since
widened the investigations to cover
other regional countries, namely Zambia
and Mozambique, amid suspicions that
the two countries which border Zimbabwe
could have been used as springboards
because of their lax
security.
Initial findings by the special South Africa police
suggest that the
export documents, which emanated from Zambia, could have
been forged.
Efforts to contact the businessman at his Harare
offices were
fruitless as an official at his Charter Road branch revealed
that the
businessman was still in South Africa together with his
son.
Police spokesperson Superintendent Wayne Bvudzijena could not
comment
on the issue, saying he had no jurisdiction over South African
police.
The arrest comes at a time when the government,
hard-pressed for
foreign currency needed to import electricity and fuel among
other things,
has launched full-scale investigations into the operations of
gold miners
and merchants.
It is estimated that the country,
which had to suspend bureaux de
change late last year in a desperate attempt
to improve foreign currency
inflows, could be losing at least six tonnes of
gold valued at more than
US$59 million every year through smuggling and other
illicit deals.
While the Reserve Bank of Zimbabwe (RBZ), the gold
squad and the Mines
Ministry have tightened screws on gold leakages, dealers
have found ways of
sidestepping regulations.
Under the existing
arrangement, Fidelity Printers, which is a
subsidiary of the RBZ, is the sole
buyer of the bullion in Zimbabwe. The
mining sector contributes close to half
of the country’s foreign currency
earnings and about six percent to the Gross
Domestic Product.
Mines and Energy Minister Edward
Chindori-Chininga has in the past
hinted that gold mine owners who leaked the
bullion would face heavy
penalties such as the forfeiture of their mines to
the state or compensating
the government with hard cash for money
lost.
FinGaz
Tsvangirai poll challenge misdirected: Mugabe
Cyril Zenda
10/30/2003 9:03:46 AM (GMT +2)
PRESIDENT
Robert Mugabe says Movement for Democratic Change (MDC)
leader Morgan
Tsvangirai is misdirecting himself in trying to challenge the
validity of a
number of laws through an election petition instead of just
concentrating on
challenging the poll results.
In his heads of arguments filed at
the High Court last week in
response to Tsvangirai’s arguments in the
election petition seeking to
nullify his re-election last year, President
Mugabe urged the court to
ignore a number of issues raised by the petitioner
which he said were
irrelevant to the poll challenge.
However, in
his arguments, President Mugabe made no reference to
Tsvangirai’s main
argument that the Electoral Supervisory Commission — the
body that runs
elections in Zimbabwe — was not legally constituted at the
time of the poll
and, therefore, not qualified to conduct the election
in
dispute.
President Mugabe said some of the arguments given by
Tsvangirai in his
election challenge, like a challenge to the
constitutionality of Section 158
of the Electoral Act, were filed way after
the statutory 30 days from the
end of the poll and should therefore not be
considered.
He argued that the court was just supposed to focus its
attention on
whether he was duly re-elected or not and if Tsvangirai had
problems with
various other laws, he was free to raise them separately
instead of doing it
through an election petition.
"The
petitioner, it has been shown, in his misdirected endeavour,
sought to impugn
the various laws using an election petition. This, it has
been shown, cannot
be done," President Mugabe said in court papers filed by
his lawyer, Terrence
Hussein, of Harare law firm Hussein Ranchhod & Co.
He said the
court was only supposed to make a determination on the
order sought in a
court application filed on April 12 2002 and in terms of
Section 102 of the
Electoral Act, not other issues raised after this legal
cut-off
date.
"Once a petition is so filed, only the provisions of the
Electoral Act
and the regulations apply thereto as regards the content of the
petition,
the procedure and ultimately the manner in which the petition
is
determined," he said.
"More importantly, the Act makes it
clear what the court may order at
the conclusion of the hearing. Section 102
states that only one of two
orders may be handed down by this honourable
court, that is, (a) that the
president was duly elected. . .; or (b) that the
president was not duly
elected."
President Mugabe said there was
no room in an election petition for
the court to make other orders,
especially regarding some other laws and
processes that Tsvangirai is
challenging.
He further argued that according to the law, the High
Court can only
nullify presidential elections after a trial, not just a
preliminary hearing
as Tsvangirai is misguided to believe.
"The
petitioner is, therefore, with respect, over-ambitious when he
urges this
honourable court, after hearing argument on the initial issues to
invalidate
the election," he argued. "With respect, this is not legally
possible.
Section 102 (2) of the Electoral Act clearly envisages that the
validity of
an election to the office of president may only be determined at
a
trial."
President Mugabe said the constitutionality of Section 158
which
Tsvangirai is making a big issue out of can not be determined as part
of the
election petition because it was filed out of time, but even in the
event
that the court considers it, it will not affect the outcome of the
election.
"It is submitted that in the event that this honourable
court finds
that Section 158 is invalid, the invalidity cannot be
retrospective."
President Mugabe also argues that if Tsvangirai has
problems with the
present interpretation of Section 149 of the Electoral Act,
he can not seek
the courts to change the law for him as the courts are only
there to apply
law, not make it.
Tsvangirai has indicated that
he will argue that Section 149 of the
Electoral Act, which in its present
form, requires a petitioner to
"demonstrate failure to conduct the election
in accordance with the
principles for a free and fair election laid down in
the Electoral Act" and
also to "demonstrate the occurrence of a mistake or
failure which
demonstrably affected the result of the election" is
wrong.
According to Tsvangirai, the Law Reviser, the official with
the
responsibility for publishing legislation passed by parliament, did
not
publish the correct version of the law because the correct version passed
by
Parliament required a petitioner to demonstrate only one of the
defined
shortfalls in an election, not both.
"This honourable
court can not make law or choose between what it
perceives as a good law or a
bad law . . . in any event, it is not proper
for the petitioner to seek the
setting aside of the revision in an election
petition, he should institute
proceedings in the appropriate forum citing
the Law Reviser."
FinGaz
Tungamirai guns for Muzenda’s post
Brian
Mangwende Acting News Editor
10/30/2003 9:06:28 AM (GMT
+2)
RETIRED Chief Air Vice Marshal, Josiah Tungamirai, this week
openly
declared his interest in the Gutu North seat which fell vacant
following the
death of ZANU PF chief strategist vice president Simon Muzenda
last month
although it was not immediately clear whether he will get
sufficient backing
from his ruling party colleagues.
Tungamirai, who served at one time as the chief military advisor to
Josiah
Tongogara, the late Commander-in-Chief of the ZANLA forces, told
The
Financial Gazette this week that there was no going back on his decision
to
occupy the political void left by Muzenda in Masvingo.
"I am
very interested in contesting for that seat and I’ll meet any
challenge that
comes my way," the former air force chief said.
"I was born in Gutu
and soon after I retired from the air force, I
went back to Gutu and told the
people that I was at their service. We had
brushes here and there with the
late vice president, but we reconciled and
buried our differences and started
working well together."
Tungamirai, a member of the party’s supreme
decision-making body, the
politburo, said campaigning for the seat had not,
however, started, adding
that ". . . well, it’s a bit too early since we are
still mourning the death
of the vice president. But, however, there are some
people who are doing
some ground work here and there, but we have not yet
started vigorously
campaigning yet."
On whether the Commander of
the Zimbabwe Defence Forces, General
Vitalis Zvinavashe, whose name is being
touted as the next godfather of
Masvingo and a possible contestant for the
same seat, posed a threat to him,
Tungamirai said he was ready to battle it
out with anyone.
"I am not afraid of any competition," Tungamirai,
a non-constituency
Member of Parliament, said. "Whoever wants to challenge me
must come out in
the open. I am ready to battle it out with
anyone."
Zvinavashe is reportedly set to retire in December and
embark on a
political career laid before him by ruling party bigwigs. But
until he
removes the uniform, the army commander is not legible to contest
the
political seat.
ZANU PF’s national chairman John Nkomo said
it was too early to start
campaigning for the Gutu North seat, seeing that
Muzenda died only last
month.
"It’s still too early for that,"
Nkomo, who has taken up the late
Muzenda’s duties, said. "Besides, what we
would like to see the people of
that province do is to reach a consensus so
we avoid primary elections.
People are allowed to express their interest, but
the party has not focused
on that yet."
Born on October 8 1948
in Gutu, Tungamirai attended Mutero Mission
Primary School and later went to
Chikwingwizha Minor Seminary, Gweru, for
his Ordinary Levels before going to
the then Salisbury Polytehnic for his
Advanced Level education.
He then left the country on a long journey to Botswana, Zambia and
Tanzania
where he received military training before going to the battlefront
with his
first encounter being in Mount Darwin in 1972.
Later he became the
political commissar for Masvingo province before
he was elevated into the
ZANLA high command.
In 1982 Tungamirai transferred to the air force
as air vice marshal
and later air marshal, a position he held until his
retirement in 1992.
FinGaz
Zvobgo still in hospital
Staff
Reporter
10/30/2003 9:07:19 AM (GMT +2)
ZANU PF founder
member and legal supremo Eddison Zvobgo is reportedly
still hospitalised in a
private ward at a clinic in Cape Town, South Africa,
where he was flown last
week to receive specialist treatment on a brain
tumor he developed over the
years.
A high ranking ZANU PF official in Masvingo said Zvobgo,
the
legislator for Masvingo South, was suffering from a brain tumor which
causes
paralysis.
"We are still waiting to receive information
on his progress after the
operation," the official, who preferred to remain
anonymous, told The
Financial Gazette.
Zvobgo, who has been in
and out of the news lately after he was
accused of sabotaging President
Robert Mugabe’s re-election campaign last
year, was meant to appear before
the ruling party’s disciplinary hearing
last month, but the move has since
been suspended indefinitely.
The outspoken politician has since
dismissed the charges as
"demeaning" and a "pack of lies" saying it was the
work of rivals within
ZANU PF in a relentless efforts to remove him from a
party he founded.
President Mugabe controversially won last year’s
presidential election
in a poll marred by unprecedented violence since the
country attained
independence from Britain in 1980 — results which were
rejected by the
opposition Movement for Democratic Change and the
international community.
FinGaz
Doctors strike: Final blow to dying Zim?
Cyril
Zenda
10/30/2003 9:09:25 AM (GMT +2)
THE crippling
industrial action by junior doctors, which has since
been backed by nurses,
could be the final hammer blow on Zimbabwe’s heal-th
delivery system already
teetering on the verge of collapse.
Commentators this week said
industrial disturbances in the health
delivery sector which has since lost a
raft of key personnel that left for
pastures anew and facing a critical
shortages of essential drugs, and
equipment caused by the non-availability of
foreign currency, could
effectively derail efforts to breathe life into the
system.
Junior and middle level doctors went on strike — the fourth
this
year — last week demanding hefty salary increases of up to $30 million
per
month. Health Minister David Parirenyatwa dismissed them at the weekend
as
"black market salaries" that the government could not afford.
Nurses, who have similar grievances about remuneration and poor
working
conditions, this week joined the strike and effectively paralysed
the
country’s public health system in what analysts said could be the last
straw
on Zimbabwe’s decrepit health sector.
"We fully appreciate and it
is in our conscience that we are guided by
ethics in our profession, but
everyone has a breaking point. If one cannot
fend for themselves, how can
they professionally consider another person’s
well-being?"
This
is what Hospital Doctors’ Association (HDA) president Phibion
Manyanga had to
say as doctors and nurses took a decision to forsake the
Hippocratic oath
they took when they joined the medical profession, to go on
strike for the
umpteenth time within the past decade.
The medical workers who were
held in high esteem as trend-setters in
social standards in the 1980s have
over the past decade haplessly watched
their status eroded to leave them in
no better position than semi-skilled
workers toiling in the industries to
survive from hand-to-mouth.
Since 1990, doctors and nurses have had
several strikes, the most
notable one in 1996, which went for a record 49
days resulting in wholesale
dismissals and en-masse resignations, a severe
blow that the country has not
been able to recover to this day.
Social analyst Alois Masepe said unless the government can move in to
find
holistic solutions to the problems bedevilling the whole economy, it
would be
very difficult for it to find solutions to recurrent strikes by the
country’s
medical staff.
"We all know that the government cannot afford to
pay the doctors the
$30 million they are demanding, but a solution has to be
found to keep
them," Masepe said.
"We should know that these
people are very marketable . . . they are
in high demand so we should pay the
price."
"The medical workers have a case which is legitimate
and
understandable," said local economic analyst Lovemore Kadenge. "It is
only a
question of quantum that is debatable because we all know that
the
government cannot afford to meet what they are demanding."
Kadenge said although remuneration and working conditions were
generally poor
within the rest of the civil service, it was important to
appreciate the fact
that doctors and other health workers were in a
specialist group that needed
special attention to retain them.
This, he said, was because the
country cannot afford to continue
losing them to other countries in the
backdrop of the HIV/Aids pandemic,
which is threatening to wipe away an
entire generation.
The analysts said the challenges posed by AIDS
and compounded by
growing poverty made an efficient public health system more
important that
ever before.
"With the growing poverty in the
country, it is very important that
the public health system does not collapse
because very few families can now
afford seeking medical attention from
private practitioners," Kadenge said.
Zimbabwe, with close to 4 000
deaths per week, is billed as one of the
countries with the highest HIV
infections in the world, but has in the past
years continued to lose key
medical personnel to neighbouring and overseas
countries as they flee from
searing poverty at home.
Most of the nurses and doctors are heading
for neighbouring countries
like South Africa, Botswana, Mozambique, while
others are going as far as
the United Kingdom and United States.
A United Nations Development Programme-funded study released this
year
estimates that doctors, nurses and pharmacists constitute about 25
percent
of the 500 000 Zimbabweans in the diaspora.
"The country
has become uninhabitable so that is why they are leaving.
It is a very
difficult decision to leave one’s own country but at times
circumstances will
force you to do it," Masepe said.
The country has just about 800
doctors, way below the required number
of about 2 200.
In the
face of increasing exodus of medical staff to other countries,
the government
has relied on its links with Communist Cuba and the
Democratic Republic of
Congo to bring in expatriate medical staff, mainly
doctors, to maintain a
semblance of order at most of its hospitals.
"It is not sustainable
to continue bringing in expatriate doctors from
other countries. There are
problems like language and even experience so you
will still need to have
local locals," Kadenge said.
The analysts said it was also
important to appreciate that apart from
poor remuneration, what is also
fuelling the current exodus of medical
personnel from the country are
frustrations resulting from all-round
shortages in hospitals, which make it
difficult even for the most committed
practitioner to deliver.
Zimbabwean public hospitals are now synonymous with shortages of
almost
anything, from drugs, to syringes, to blood, to gloves and all
other
essentials due to swingeing budget cuts.
The Ministry of
Health is seeking a massive $555 billion in the 2004
budget, up from a budget
of $122 billion it got this year, an amount, which
it blew out in no
time.
Masepe, however, said the government should simultaneously
address
problems being faced by all other members of the public service such
as
teachers, lecturers and uniformed forces.
FinGaz
New monetary policy only expected after budget
Godfrey Marawanyika
10/30/2003 9:08:09 AM (GMT +2)
A NEW
monetary policy, which would be another attempt by the central
bank to deal
with ravaging inflation, is now expected to come through after
the
presentation of the watershed 2004 national budget pencilled for
November
20.
Analysts said the Reserve Bank of Zimbabwe (RBZ) could
have
deliberately delayed announcing the new policy since June this year in
order
to synchronise its monetary response with the outcome of the
national
budget.
The overriding objective of the monetary
instrument, said analysts,
would be to rein in excessive money supply growth
and curb inflation. The
statement should also outline strategies to end the
cash crunch that has
destroyed confidence in the banking system.
But without a substantive RBZ governor, it could be difficult for the
central
bank to assure the market that they would be consistency in the
application
of policies.
The bank has been without a substantive RBZ boss since
the retirement
of Leonard Tsumba in June this year.
A
restructuring of the bank is also on the cards, a situation that may
also
unnerve the market.
Lovemore Kadenge, president of the Zimbabwe
Economics Society (ZES),
said it was almost certain the new monetary policy
would be presented after
the announcement of the budget.
He
said: "Some of the issues that could be addressed by the monetary
policy
should include the exchange rate, inflation, tourism, price controls
and our
relations with the international community."
Among the major
highlights of the current monetary policy introduced
by the then RBZ governor
Tsumba in November last year was the dual interest
rate policy.
Tsumba also cancelled intra-day credit limits to banks, which
effectively
meant that banks wishing to borrow from it to cover their
liquidity positions
had to use repurchase agreements, whose rates would be
market
determined.
The ZES president said containing inflation from the
current 455.6
percent could prove to be a difficult task for the central bank
because of
underlying inflationary pressures.
Sentiment on the
market is that the Zimbabwe dollar is currently
over-valued and has to be
devalued to promote exports and to attract foreign
currency inflows from
non-official channels.
Any devaluation of the currency would have
the double-edged effect of
improving earnings in Zimbabwe dollar terms, while
at the same time making
imports expensive, which is also
inflationary.
The government has kept the official exchange rate
pegged at $824
against the greenback, but the same unit is fetching as much
as $6 000 on
the illegal parallel market.
An investment manager
with a local bank said the RBZ was unlikely to
digress from its current
expansionary monetary policy because it needs cheap
money for its principal —
the government.
Since 2001, the government has kept interest rates
low by flooding the
money market with funds as part of efforts to contain the
cost of servicing
the domestic debt. The debt now exceeds $600 billion, more
than half of
Zimbabwe’s total budget for 2003.
Farai Zizhou, the
acting chief executive of the Confederation Zimbabwe
Industries (CZI), said
the monetary policy has always been linked to the
budget
statement.
"We cannot have a monetary policy on its own since
reference has to be
made to the budget statement. So, the monetary policy
would have to come
after the budget," said Zizhou.
The acting
CZI boss said the new policy should stimulate industrial
production, which is
expected to decline by 30 percent this year, adding
that it should also be
consistent with the fiscal side.
The major problem facing Zimbabwe
has been the huge budget deficit,
which basically means that the government
has been spending what it does not
have.
The economy has been in
decline, while inflation has soared close to
500 percent, resulting in
overall savings tumbling to levels below 9.2
percent of the gross domestic
product.
Best Doroh, a senior economist with the Zimbabwe Financial
Holdings
Limited, said the monetary policy should be clear on interest
rates.
"As it is right now, you cannot tell whether the government
is for low
or high interest rates, which has resulted in markets not having a
proper
key on how things are," he said.
Doroh said although the
government has been under pressure to devalue
the local unit, it is likely to
ignore the call.
"If at all they wanted to devalue, they could have
done it before the
end of the tobacco selling season," he said.
"The government is facing serious pressure from mining, horticulture
and
other sectors of the economy that rely on foreign currency. If ever
they
devalue, maybe it would be something to only $1 500 against the
United
States dollar, but I doubt if they would do that."
FinGaz
Tobacco industry must not die
10/30/2003
8:54:25 AM (GMT +2)
ALREADY suffering ill health after having
slipped over every economic
banana skin imaginable, Zimbabwe seems headed for
another disaster.
Elsewhere in this issue we have a story which makes for
some pretty dismal
reading on facts and figures on the performance of the
tobacco industry in
the just ended selling season.
At the risk
of stating the obvious, it seems that it is all gloom and
doom in the tobacco
sub-sector, which is geared for the unmanufactured
international leaf market.
Yet, we cannot over-emphasise the importance to
the economy of the tobacco
industry, a premier earner of the greenback which
is in demand as the reserve
currency worldwide.
At US$183 million, tobacco export earnings have
plummeted by a
staggering 51 percent compared to the preceding year. Only
half of last year
’s crop was produced during the just-ended season. This is
a worrying trend
which bodes ill for the country’s economy already mired in
stagflation — a
situation where rising inflation is accompanied by falling or
static
industrial production and employment.
Opinions on the
reasons for this disturbing trend are starkly divided.
But the two that have
gained a lot of currency are: 1) The land reform
programme ostensibly meant
to address historic injustices and inequality but
is now threatened with
being reduced to a gravy train benefiting mostly
influential politicians and
their cronies. 2) Shortage of critical inputs
emanating from lack of planning
on the part of the government.
Once called the "golden leaf",
tobacco previously earned well over
US$600 million only five years ago when
the economy was in fine fettle,
firing on all cylinders. And as stated
earlier, the faltering of the tobacco
industry will not only have serious
ramifications for the economy, but could
see Zimbabwe losing its long
established lucrative international market.
It is true that locally
produced tobacco has had a wonderful footprint
on the international market.
Having had established a reputation for
quality, Zimbabwean tobacco has
enjoyed a customer pull — there has always
been a gap for the local leaf
especially for blending purposes by cigarette
manufacturers.
Be
that as it may, international buyers need guaranteed supply because
they are
in for the long haul and do not buy tobacco on an ad hoc basis.
They will
therefore look elsewhere for fear of being wrong-footed in the
event of the
local industry collapsing.
Without being alarmist, we have to point
out that there is real danger
that having assessed the Zimbabwean situation,
international buyers could
already be casting around for alternative
suppliers to avoid disruptions to
their operations due to the Zimbabwean
drag. That should be cause for
concern because it will not be easy to
recapture these markets once we have
lost them.
That the
imminent collapse of the tobacco industry will rip through
the economy is an
understatement of significant proportions especially for a
country that lost
crucial balance-of-payments support when the International
Monetary Fund
slammed the door on it over policy differences.
In fact, plummeting
tobacco export earnings have set the stage for an
even weaker-than-expected
showing from the rest of the economy. Already as a
nation, Zimbabwe is going
through a severe crisis of confidence and allowing
sectors such as the
tobacco industry to collapse will only help make the
situation worse by
accelerating the economic meltdown.
FinGaz
Hypocrisy and confusion rule the roost in
Africa
10/30/2003 9:23:12 AM (GMT +2)
HAVING in
previous contributions discussed the various perspectives as
to Africa’s
political and economic future, it is critical now to see how
these
perspectives come to bear on the Zimbabwean question, culminating in
the
supposed support the Zimbabwean government has been getting from
other
African countries and President Mbeki’s quiet diplomacy.
Apart from the other schools of thought already discussed, NEPAD
itself,
which is the continent’s "official" development strategy, does not
seem to
enjoy the legitimacy and loyalty of a significant number of
African
countries. This would mean by implication that these countries are
therefore
free to experiment with their own social theories and strategies,
and
unfortunately, our leaders seem inclined to listen to any among
themselves
who comes up with what appears to be a solution.
The
Zimbabwean government has not come out clear with its position in
regard to
NEPAD but what is discernible is that they despise the project but
only
pretend to support it because they know that President Mbeki’s support
is
crucial for their own survival.
Asked sometime last year if
Zimbabwe would participate in NEPAD
against a background that the political
situation in the country has become
a threat to the very essence of the
project, Professor Jonathan Moyo was
evasive and said: "The question of
whether or not Zimbabwe will participate
does not arise because NEPAD itself
is still an idea."
On several occasions, Moyo has made statements
contemptuous of the
NEPAD initiative and President Mbeki’s conception of the
African
Renaissance, which he has, however, subsequently denied as having
been
quoted out of context. But for a careful listener, the patterns of
implicit
meaning that emerge are so evident.
Presently, the
Zimbabwe government is capitalising over the confusion
and hypocrisy that
reigns in Africa on what should be the way forward to
address the problems of
poverty and under-development. Out of political
expediency they have evolved
their own voodoo socio-political theory, which
is neither coherent nor
systematic, but which is supported heavily
ideologically by the President and
the Minister of Information and
Publicity. Regrettably, these experiments
with socio-political theories are
being done at the expense of the masses of
our people.
Since the time of the liberation struggle, ZANU PF has
been perceived
as a great liberating force in Africa, having accomplished
heroic exploits
against colonial subjugation. After independence, the ZANU PF
government
proclaimed the historic policy of reconciliation and
reconstruction,
professed to follow the socialist road of development and
marketed itself as
the champion of the dispossessed workers and peasants — a
people’s party so
to speak.
In its foreign policy, President
Mugabe’s government demonstrated a
strong Pan-African tradition. You may
recall Zimbabwe’s role in the
restoration of peace and stability in
Mozambique, Angola, Somalia, the DRC
and even South Africa, to mention just
but a few.
In recent years, despite its increasingly oppressive,
repressive and
suppressive domestic policy, the Zimbabwean government is
masquerading as
the champion o the rights of Third World countries where
President Mugabe’s
anti-globalisation and anti-imperialist messages find
greater resonance.
It is part of President Mugabe’s successful
response to the crisis
that he confronted, as President of the country and a
first secretary of the
ruling party, to be able to politicise poverty and
persuade a large section
of the world that the crisis in Zimbabwe is a land
crisis and that,
therefore, it is a bilateral dispute between Zimbabwe and
its former
colonial master, Britain. An international dimension was added by
arguing
that this problem is not only unique to Zimbabwe but is a common
phenomenon
across all former British colonies, which is, of course, true.
This is why
the Commonwealth has had difficulties in dealing with the
Zimbabwe question.
Mugabe has also been exceptionally tactical in
exploiting the race
card. However, it must be noted that the fundamental
dichotomy in today’s
world is no longer between black and white but between
the propertied and
dispossessed classes. As a matter of fact, as is evident
from the dynamics
at play in the Zimbabwean question, the black-white
dichotomy may be used to
obscure the more fundamental class
conflict.
However, Zimbabweans know better that the crisis in
Zimbabwe is not a
land crisis and that is why they fail to understand why the
hypocritical and
treacherous scheme of quiet diplomacy should be employed
towards Zimbabwe.
It is really puzzling to many Zimbabweans that in spite of
their grounded
realities, there could be other people of relatively high
regard like
President Mbeki and others who still hero-worship the regime
here.
Zimbabweans know that the crisis in this country is a crisis
of
governance. When students and workers rose in 1997-1998, it was not
about
land; when the war veterans rebelled against the government in
1997
resulting in the President awarding them unbudgeted for gratuities which
in
turn affected the economy, it was not about land; when in 1997
the
President, without parliamentary approval, decided to deploy our troops
in a
hugely expensive war in the DRC which resulted in further collapse of
the
economy, it was not about land; when civil society organised itself to
lobby
for constitutional reform from 1997, it was not primarily to legalise
land
acquisition, but to carry out an audit of the government’s democracy
and
human rights record; when the government’s draft constitution was
rejected,
it was not because of the land provisions therein, neither was it
because
white commercial farmers and Britain urged people to vote
"no".
These are issues of governance that are at the core of the
crisis in
this country.
President Mugabe’s ability to reduce the
governance crisis in this
country to a land crisis demonstrates the capacity
of an authoritarian
regime in a crisis to repackage itself as champion of
Third-World rights in
a global situation. Regrettably, this is just an
attempt by him and his
likes to champion an agenda long after they have
exhausted their capacity to
do so.
With his eloquence and
unprecedented courage, President Mugabe has
managed to re-direct global
political discourse to focus on the economic
relationship of Third World
countries and the developed world. He has
menacingly challenged the supremacy
of the North and the weakness of the
South. Having realised that his
perfomance is better internationally than
nationally, Mugabe now directs most
of his energy to global politics and has
been able to raise critical issues
which earned him considerable global
impact.
His perfomance at
the World Summit on Sustainable Development in South
Africa last year, the
support of the African Caribbean-Pacific (ACP)
countries at the EU-ACP Summit
in Brussels,the selective support of the
African American Diaspora, the
support of the Commonwealth Troika on
Zimbabwe, SADC and the African Union;
his election as deputy chairperson of
the AU and his recent performance at
the 58th session of the United Nations
General Assembly has had enormous
symbolic significance for the regime. It
has made it difficult to isolate
ZANU PF internationally and allowed the
party to subordinate issues of
governance democracy and human rights in
Zimbabwe to its global and
continental agenda.
To put President Mbeki’s quiet diplomacy in
perspective, it would
appear that while Zimbabweans are primarily concerned
about the
democratisation of their political system, Mbeki and other African
leaders
are pursuing a "grandeur agenda" which seeks to challenge the
unjust
international economic system and to (re)position Africa on the
global
political scene, and paradoxically, Robert Mugabe, with his courage
and
eloquence, has to them become almost indispensable in the pursuit of
this
grandeur agenda and that explains his unanimous election as
deputy
chairperson of the African Union. Like the old prophets, he is
honoured
elsewhere but not in his home country.
What this means
is that it is less likely that South Africa, SADC and
the African Union can
ever abandon President Mugabe, at least not in the
near future. If the United
Nations tries to by-pass SADC and the AU and
intervene directly in Zimbabwe,
this will cause serious problems. So when it
comes to democratic struggles in
this country, Zimbabweans, we are on our
own.
The sooner we
realise this the better, because we will not spend our
energies on
futilities, but rather, on consolidating our structures,
broadening our
national base of operation and gearing up for our struggle in
a determinedly
clear manner, always keeping in mind our fundamental
principles.
We must always remember that in President Mugabe we are dealing with a
wily
and crafty character with considerable intellectual depth. The man is
more
cunning than any of the Third-World dictators known to this world. His
regime
stays in power not through the more open acts of violence and
repression, but
by the symbolic power it has constructed as the bearer of
the liberation
legacy and as the sole heir and broader champion of the
Pan-Africanist and
Third World cause.
Take, for instance, the President’s speech at
the 58th session of the
UN General Assembly. Who would doubt that the
democratisation of the UN
structures is long overdue. Nor can anybody
disagree that the IMF and World
Bank have become subject to the whims of the
major powers and that their
economic prescriptions and conditionalities have
invariably proved to be a
disaster in practice. It is also true that the UN
Security Council does not
have, under the current structures, the capacity to
deal with any of its
members who has become a threat to world peace and
security, like what seems
to be the case with the US and their British
counterparts.
The man was just hitting the nail on the head and the
viciousness with
which he attacks the neo-colonial order is unsurpassed, and
he has become a
hero to many African leaders, in spite of all that is going
on in this
country.
It is as if President Mbeki’s tactical and
strategic approach to the
West, which is at the core of quite diplomacy, is
that, "you must hear
Mugabe first before you can listen to me". If the
"grandeur agenda"
hypothesis is convincing, it would appear that the idea
behind it is that if
the West is going to commit itself to such diplomatic
initiatives as NEPAD
and become less stingy and thus pledge realistic amounts
to the project,
they should first hear the radicals and extremists of
Africa.
They should first hear the socialists who advocate for a
world wide
revolution against European and American capitalism/imperialism.
They should
first hear the reparations activists who threaten to unleash a
series of Law
suits against colonial governments, companies and banks (some
of these suits
are already before the courts). They should first hear and see
Robert Mugabe
’s violent style of addressing colonial imbalances. Indeed they
should first
hear these radical perspectives because what they represent are
options
which Africa may consider if diplomatic initiatives fail to make
headway.
However, the Zimbabwean government must realise that the
supposed
support they are getting from African leaders will only help to
postpone the
inevitable. While the President might have won to his side one
or two people
because of his ant-globalisation and anti-imperialist rhetoric,
this is only
temporary because if this rhetoric is not transformed into
practical
policies on the ground, it will only earn him the resentment of the
masses.
He may attend the CHOGM in Abuja in December and indeed many
other
international meetings and shout, "another diplomatic victory, and
yet
another diplomatic victory; and yet another . . ." but if these
"diplomatic
victories" do not become concrete, they will soon be hollow and
the chickens
will come home to roost. Already it is clear that the
government does not
have a clear, sustainable national development strategy
to take us out of
the current political and economic crisis.
For
African leaders to side with the regime here in the name of
Pan-African
solidarity called quiet diplomacy is simply African oppression
dressed in
Pan-Africanist robes, and this sort of oppression is no better
than imperial
and neo-colonial oppression.
It is ironic that African leaders,
most of whom have no clear record
of democracy and good governance, should be
at the forefront of calling for
the democratisation of the major world
bodies. It is equally ironic for the
United States and Britain to condemn
African leaders for lack of democracy
while on their part, they resist firmly
the democratisation of global
institutions which they dominate.
The point can never be over-emphasised that the fundamental
restructuring
taking place in Africa stands little chance of success without
democratic
governance. The flaws and erroneous assumptions so evident in the
NEPAD
project could have been minimised had African leaders opened up
democratic
space in their undividual countries and allowed the masses to
debate it and
make their input. We need the input of the masses because they
are the ones
who will make things happen at the end of the day.
African
countries must democratise and empower civil society by
putting in place
democratic constitutions and legislation that facilitates
rather than
obstruct or hamper the activities of civic organisations. We
must create "an
ideological free market of ideas" where our people from all
walks of life
engage in critical debate about our problems and the
possibilities that we
may pursue in search of solutions, otherwise Africa
will remain a "dark
continent".
FinGaz
Political meddling in power pricing under fire
Staff Reporter
10/30/2003 10:20:32 AM (GMT +2)
SUSPENDED
Zimbabwe Electricity Supply Authority (ZESA) chief executive
officer, Simba
Mangwengwende, says political interference in the pricing of
power will
scuttle the critical expansion of the industry before the expiry
of existing
arrangements in 2007.
Mangwengwende, who has been on forced leave
for the past five years
but still claims to be the ZESA boss, poured his
heart out on the power
supply situation in the latest issue of The Zimbabwe
Engineer.
Over the years, the power supply situation has
worsened because of the
shortage of foreign currency needed to augment local
supplies.
Investors courted into the industry have also remained
seated on the
fence, citing the deteriorating political environment and
lethargy in the
privatisation of ZESA.
The disgruntled ZESA
boss, who has worked in the power industry since
1981, said the industry
should charge competitive prices to attract
investors and improve the
viability of the parastatal. Poor tariffs have
been the major reason for
ZESA’s failure to develop new power stations.
He said there has
been political resistance to increasing tariffs to
reflect long run marginal
costs that have hamstrung the privatisation
process and the extension of
existing power stations or development of new
ones.
"In an
attempt to break this cycle, ZESA introduced an automatic
tariff adjustment
formula in August 1999 following extensive consultations
and agreement with
customer representatives.
"This restored the profitability of ZESA
to such an extent that in
less than 16 months, the organisation recovered
from a record deficit of
over $6.5 billion to a record profit of over $700
million for the year 2000.
"The highest price of electricity of
3.85 United States cents per
kilowatt since 1990 was also achieved in 2000.
Unfortunately, this level of
profitability triggered fresh political
interference," he said.
Mangwengwende said contrary to popular
perception, Zimbabwe has
actually saved foreign currency because of its heavy
dependence on imports,
adding that the country should continue to make use of
surplus power from
the Southern Africa Power Pool (SAPP) for as long as it is
available at a
cost below that of developing new power stations.
"At present, indications are that such surplus capacity is available
for
another four years to the end of 2007. By then, the existing surplus
capacity
in the SAPP will not only be exhausted, but the country will also
have
sufficient time to develop new generation capacity assuming
macro-economic
stability is achieved soon," he said.
"Practically, the long run
marginal cost is the price at which
electricity must be sold in order to make
the expansion projects viable.
This is a fundamental issue that is dependent
on the ownership structure of
the industry.
"Whether the
government or private sector own and develop the existing
and new power
stations, the country cannot escape from the need for tariffs
to be increased
significantly to reflect the long run marginal costs," he
said.
On the Electricity Regulatory Commission that is provided for in the
new
Electricity Act of 2002, he said it should demonstrate a record
of
accomplishment, professionalism and independence for investors to
underwrite
the investments required to avoid any future power
shortages.
ZESA operates five power stations namely Kariba, Hwange,
Harare,
Bulawayo and Munyati, which can only send out 1 620 megawatts against
annual
energy demand which has been hovering at around 10 000GWh by the
beginning
of the nineties.
Mangwengwende said only a restoration
of macro-economic stability and
the establishment of a regulatory framework
that makes it possible to
achieve and sustain profitability in the
electricity supply industry will
provide a permanent solution to the power
supply situation.
"Until then, the country needs to implement
several load management
options as a matter of national urgency," he
said.
The foreign exchange crisis has affected Zimbabwe’s ability
to meet
its electricity import requirements while efforts to attract
private
investors into electricity generation have also failed.
Over the past 20 years, Mangwengwende said, several options have
been
discussed to expand power generation.
One of the options
involves the installation of two 150MW units at
Kariba South costing an
estimated US$200 million and two 300MW units at
Hwange costing an estimated
US$550 million.
The options which have been studied extensively
include the 1600MW
hydroelectric scheme at Batoka South on the Zambezi
between Victoria Falls
and the upper reaches of Lake Kariba estimated to cost
US$1 100 million for
the first 800MW stage.
The other option is
the 1400MW coal-fired plant at Gokwe North
estimated to cost US$1 200
million.
"Existing surplus power from the Southern African Power
Pool, expected
to last up to 2007, is estimated at 1 100MW, with 600MW being
from South
Africa, 300MW from the DRC and 200MW from Zambia.
"After 2007, the amount available for import would depend on new
power
station developments in these and other neighbouring
countries.
"It should be noted that the full output of Cabora Bassa
is contracted
to ESKOM and EDM, the national electricity utility of
Mozambique. Our
present contract is a concession from ESKOM due to expire on
31 December
2003.
"As we would require another concession from
ESKOM to go beyond this
date the additional imports are therefore deemed to
be from South Africa,"
he said.
FinGaz
National cattle herd further depleted
Zhean
Gwaze
10/30/2003 9:07:00 AM (GMT +2)
THE Cattle Producers’
Association (CPA) says several hundreds of
cattle valued at an estimated $675
million died last week due to the rains
and shortage of pasture, a
development that has led to a further decline in
the national cattle
herd.
An official from CPA told The Financial Gazette that reports
received
from throughout the country indicated that up to 900 cattle died
last week.
"Cattle have been dying especially in the Lowveld due to
the shortage
of grazing pasture and last week we had several death reports
because of
changes in the weather pattern".
"Cattle cannot cope
with sudden changes from severe heat to a cold
environment," 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, foot-and-mouth disease,
shortages of stock
feeds and destocking by most farmers due to the land
reform programme.
The official said most farmers could not afford
to buy stockfeeds,
which were pegged at about $750 000 per tonne and cost up
to $2 million to
import.
Sources in the industry also said
several hundreds of dairy cattle
have died in the Beatrice area because the
new farmers lack expertise
knowledge.
Zimbabwe, once a key
exporter of beef to the lucrative European Union
and regional countries, has
since stopped because of the depleted national
herd and the prevalence of
foot-and-mouth disease.
The CPA, however, did not say how much land
it lost to the settlers
who moved in at the height of the chaotic land
reforms.
The CPA official said the country was still exporting
limited beef to
the Democratic Republic of Congo but could not give exact
figures.
FinGaz
Allow free marketing: farmers
Staff
Reporter
10/30/2003 9:09:37 AM (GMT +2)
THE government
should allow free marketing on agricultural commodities
as an incentive for
farmers to farm in the 2003/04 agricultural season,
farmers’ representative
groups warned this week.
The government controls the sale of wheat
and grain through the Grain
Marketing Board under Statutory Instrument 387 of
2001.
Commercial Farmers Union president Douglas Taylor-Freeme told
The
Financial Gazette that the government should immediately
introduce
incentives that will boost the agricultural sector, which is on the
verge of
collapsing.
"My organisation believes that free
marketing of agricultural produce
is the biggest incentive for farmers to
produce.
"We experienced a boom in the production of wheat and
yellow maize in
the 1990s when the products were decontrolled."
The call comes at time when the country is expected to produce only
44
percent of national maize requirement this year due to the biting
shortages
of inputs. Taylor-Freeme said member of his association were
reluctant to
farm this year due to uncertainties of the land reform
exercise.
Indigenous Commercial Farmers Union president Davidson
Mugabe agreed
decontrolling agricultural produce would increase the number of
players in
the sector.
FinGaz
Market liquidity to continue setting interest rates
10/30/2003 9:14:35 AM (GMT +2)
AS the date
for the presentation of the 2004 National Budget on
November 20 2003 draws
nearer, most investment effort has virtually stopped
as people want to know
the government’s policy direction so as to be able to
make informed
investment decisions.
Equity investors, for example, are keen on
knowing the future
direction of interest rates, as it is key in determining
their investment
strategies. If the monetary authorities manage to put in
place a mechanism
that will make market rates move towards policy rates of
around 57 percent
(yield on the 91-day Treasury Bills), then we know that
equities would have
been given a boost.
However, if the
authorities continue with their fight to control
interest rates by rejecting
higher bids by banks, then it means policy rates
will just become symbolic as
money rates will continue to be determined by
liquidity.
This
mechanism is basically the authorities’ ability to deal with the
market
shortage that currently stands at around Z$84 billion. If the
authorities do
not do anything on the market liquidity shortage, then market
rates will
continue to firm. But if they take measures to clear it, then
rates will fall
significantly. This week, I take a look at these money
market developments
and see if some interest rate direction can be
discerned.
On the
money market, although there was some activity on the Treasury
Bill (TB)
primary market recently when the Reserve Bank of Zimbabwe (RBZ)
managed to
sell some TBs to the market, the general outlook is that the
market wants
higher rates on those TBs. As a result, the Reserve Bank has
been rejecting
most of the bids by banks at its traditional weekly TB
tenders and other ad
hoc ones. Although the yield at the last successful
tender came out at 56.47
percent, the rate is not consistent with market
expectations, which are based
on inflation developments. On the other hand,
these rates are in line with
what the RBZ has been showing since May 2003 as
the 91-day TB yield has been
hovering between 55 and 57 percent.
The perception of the monetary
authorities now seem pretty certain —
they do not want interest rates to
rise. The reasons are clear — to support
the productive and export sectors of
the economy and keep Government debt
low through low interest
payments.
Although the Government’s view on interest rates is clear
as noted
above, what is happening on the ground is different from the
policy
intentions. In a bid to buttress the low interest rate policy by
keeping
policy rates low, the Reserve Bank has been rejecting higher bids by
banks.
This fight for the control of interest rate direction
between the
monetary authorities and banks has seen a significant reduction
in TB
holdings by the banks. This progressive thinning of TB holdings by
banks has
seen them being unable to access cheaper funds at the Central Bank
through
the overnight window. If a bank has the security of TBs, it can
borrow from
RBZ at 70 percent, that is, five percentage points above the repo
rate of 65
percent. If it does not have security, it can borrow at 75
percent, that is,
10 percentage points above the repo rate.
Now
the trick lies in the unsecured borrowing. The RBZ is not offering
the
unsecured window meaning that it is not performing the
lender-of-last-resort
function. As a result, given that banks do not have
enough TBs to pledge as
security when they go to borrow from the RBZ for
overnight accommodation as
they have been unable to access them due to the
myriads of unsuccessful
tenders, they have no option but to go to other
banks for
accommodation.
Given that the market is very short due to lack of
TB maturities
which, in turn, is a result of lack of successful TB tenders as
the RBZ
rejects higher bids by banks to press for low interest rates, market
rates
have risen significantly. This means that any bank that has no security
of
TBs and by implication fails to access money from the RBZ at 70 percent
will
have no option but to get it from the market at rates as high as
130
percent.
This increase in the cost of funding for the banks
has seen them
revising upwards their minimum lending rates to more than 120
from 90
percent in August.
We do not expect the current
situation on the money market to change
in the near future unless the RBZ
decides to offer unsecured accommodation.
This, however, is unlikely as it
means an injection of money into the
economy that is not backed by an
underlying asset, which implies an increase
in inflation. An increase in
money supply that is not inflationary should
only be allowed if it is backed
by an increase in GDP.
However, if the RBZ does the unthinkable of
injecting liquidity into
the money market, then market rates will fall and
gravitate towards policy
rate levels of 70 percent for accommodation rates
and 57 percent for
medium-term rates.
This means a weakening of
monetary policy, which implies an
uncontrolled increase in inflation. This
will be good news for the equity
market and other inflation-hedged
investments like property and foreign
currency markets including parallel
markets.
If we assume that the RBZ will not offer unsecured
overnight
accommodation, then interest rates will continue to be determined
by
liquidity conditions.
It is against this background that
Treasury managers need to watch
closely their maturity profiles and be able
to forecast future liquidity
developments to help them in asset pricing. In
the meantime, it is safe to
play at the short end of the market so as to be
able to quickly turn the
portfolio in case there is a sudden policy change
that may see interest
rates moving in either direction.
FinGaz
Mazoe threatened with loss of land
Staff
Reporter
10/30/2003 10:26:32 AM (GMT +2)
Mazoe Citrus
Estates, currently experiencing acute water shortages, is
further threatened
with continued loss of land and irrigation equipment to
new
settlers.
The nation’s sole citrus producer has said it has since
lost
significant hectarage traditionally planted under maize, soya and
wheat.
The loss of land affected produce in the last season for the
estate,
which remains listed for acquisition under the land reform
programme.
The situation was further complicated by the fact that
irrigation
equipment lost to settlers within the occupied areas was not
recovered.
The resultant loss of production volumes may have a
marked effect on
future earnings for the Zimbabwe Stock Exchange-listed
Interfresh, which
owns the group.
A shortage of water has
further crippled the future production volumes
for Mazoe Citrus Estates, with
demand by resettled farmers downstream along
the Mazoe river, taking its toll
on overall water supply.
"The situation on the ground has now been
exacerbated by the acute
water shortage in the dam, currently sitting at only
21 percent," Interfresh
said last week.
The company did not,
however, say how much land it had lost to the
settlers who moved in at the
height of the fast-track land reform programme.
The chief executive
officer of Interfresh, Evan Christophides,said "I
cannot comment on the
issue" when asked to indicated the amount of land the
company had lost to
settlers.
"We continue to pursue positive dialogue with government
at all
levels, in an attempt to map a mutually beneficial way forward for
all
stakeholders on the estates," he said.
FinGaz
Parks Authority in huge anti-poaching campaign
Staff Reporter
10/30/2003 10:27:10 AM (GMT +2)
THE Parks
and Wildlife Management Authority (PWMA) has embarked on an
anti-poaching
campaign which saw the arrest of more than 100 poachers in the
month of
September alone.
The authority has since acquired 21 Land Rover
vehicles at a cost of
over $8 billion. Nine of these vehicles are already in
use with the rest
expected in the country before the end of the
year.
"We are aiming at purchasing about 120 Land Rovers and we
hope to make
the purchase in the coming months. Land Rovers are ideal for
maintaining the
much-needed security within the parks," said Morris
Mtsambiwa, the managing
director of PWMA.
Zimbabwe is
experiencing a resurgence in poaching and an estimated 2
355 people are
needed to ensure security within the parks. The authority
has, however, so
far recruited 1 615 of which 600 are rangers.
The authority, which
owns 59 of the national parks and fishing
resorts, is planning to renovate
infrastructure in a bid to ensure a viable
transport network to its locations
around the country.
Cyclone Eline and Cyclone Japhet destroyed
roads and bridges beyond
repair, mostly in the Eastern Highlands.
SABC
Africa should solve Zimbabwe problem: Fischer
October 30, 2003,
07:17 PM
Africa should solve the Zimbabwean problem in the interests of
that
country's people and the continent as a whole, Joschka Fischer, the
German
Vice-Chancellor, said today. "What we try to do is to encourage all
our
friends in Africa to solve this problem, this crisis, based on common
values
and in the interests of the Zimbabwean people," he told reporters
in
Pretoria. "We will continue with these discussions because we believe
that
with Zimbabwe on a democratic track, on a track of development, the
positive
influence (for) this region but also for the whole continent will be
very
important."
Fischer was speaking after co-chairing the fourth
session of the South
Africa-German bi-national commission with Jacob Zuma,
the Deputy President.
He said Germany believed that South Africa and the
southern African region
should be the cornerstone for peace, stability and
development in Africa.
South Africa was one of the most important, possibly
even the most
important, voice in Africa and the world, Fischer said.
"Zimbabwe could be
in a similar situation. Its potential is great and it is a
pity, a real
drama, the situation in which the country is."
He
declined to go into the details of discussions held on the issue. Also on
the
agenda was the role of German pharmaceutical companies in ensuring
easier
access for people in developing countries to HIV/Aids drugs. "We have
the
political but also the moral responsibility to do the utmost and to
bring all
the pharmaceutical possibilities to the developing countries,"
Fischer said.
Other issues discussed included the need for effective
multi-lateralism and
United Nations reform, the New Partnership for Africa's
Development, regional
and international conflicts, and co-operation between
European Union and
African Union. Both men described the talks as positive
and fruitful and not
mere lip-service. - Sapa
Don't Panic, Investors On Zimbabwe Stock Exchange Advised
The
Herald (Harare)
October 30, 2003
Posted to the web October 30,
2003
Brian Benza
Harare
STOCKBROKERS have advised the investing
public not to panic because of the
volatile trends on the market that have
largely witnessed bearish trading.
They maintained that the trends were
merely a passing phase because of the
large number of speculators who have
invaded the market.
Most investors, who have realised significant profits
during the bull run,
have offloaded their stocks and shifted the funds to the
more secure money
market in order to preserve the value of their
investments.
This is also characteristic of the last quarter of the year
when the
national budget is presented and investors generally park their
money in the
money market and go on holiday awaiting any policy
changes.
"The weakening in the equities market is due to the selling
pressure as
investors reap on earlier gains while others remain on the
sidelines
pondering their next move as we approach the announcement of the
2004
national budget.
"Most of the investors remain in the safety of
the money market where they
feel they can preserve the value of their money
in the next six weeks before
they can start coming back to the stock market"
said a weekly report from a
stockbroking firm in Harare.
With no clear
indication as to the direction interest rates will take, the
market is hoping
that the budget will give some guidelines on money market
returns.
In
the meantime, the market rates will continue firm on the back of tight
market
liquidity.
The equity market is expected to continue fluctuating as
investors take
profits in counters that would have risen significantly and
re-invest in
other counters or shift to other investment
vehicles.
There is still great upside shift in the equities market,
though.
"If there is to be a comparison between the rate at which the
inflation rate
is going up with the performance of the local bourse, the only
major worry
at the moment is the 2004 national budget.
"Investors are
anxious to know what the new monetary policy will be and its
effect to the
investing public. We, however, feel that there will be no
material effects as
the major factors that drove the equities will still do
so going forward" the
report added.
Other stockbrokers have urged the investors to take
positions in those firms
that have good looking future prospects such as
those that are going through
some restructuring in order to maintain value
and unlock shareholder value.
Examples of such firms include Mashonaland
Holdings, Clan Holdings, British
America Tobacco, Tedco Holdings and Radar,
among others.
The Mashonaland directors are proposing to recapitalise the
company by way
of a rights offer to raise approximately $26 billion which
will be utilised
to acquire properties. The initiative will transform
Mashonaland Holdings
into a property investment and development
company.
Stock market analysts have recommended that shareholders vote in
favour of
the proposal and follow their rights at an extraordinary general
meeting to
be held today.
National Economic Consultative Forum (NCEF) Convenes Crucial
Meeting
The Herald (Harare)
October 30, 2003
Posted to
the web October 30, 2003
Leonard Makombe And Brian
Benza
Harare
SPIRALLING price increases of commodities have forced
Government, labour and
the business community to convene a crucial
meeting.
The meeting aims to find ways of alleviating the suffering of
ordinary
people whose disposable income cannot match the ever increasing
prices.
The meeting, to be held next week under the auspices of the
National
Economic Consultative Forum (NECF), will consider several issues,
among them
the macro-economic situation prevailing in the country.
It
comes at a time when Government, labour and the business community
are
disagreeing on the best way forward in stabilising
prices.
Government is anxious to ensure that prices of basic commodities
are
stabilised while labour is pushing for higher disposable incomes to
increase
the purchasing power of ordinary workers.
However, the
business community has continued to ignore calls by Government
to keep prices
at affordable levels citing increases in operational costs.
Consumers got
a reprieve at the beginning of the year when Government,
labour and business,
under the banner of the Tripartite Negotiating Forum
(TNF), signed the Prices
and Incomes Stabilisation Protocol.
It was spelt out in the protocol that
prices would only be increased after
negotiations by the three
partners.
However, the TNF was immobilised after labour, withdrew
accusing Government
of making unilateral decisions.
Labour's bone of
contention was that the 200 percent increments in April
were made without the
matter being discussed by the three partners.
The vice chairman of the
National Economic Consultative Forum, Mr Nhlanhla
Masuku, confirmed that a
meeting of major players would be held next week to
discuss the issue of
prices.
Mr Masuku said they were frantically trying to get labour back to
the
negotiating table.
He expressed optimism that trade union leaders
would not miss the
opportunity of finding ways of alleviating the suffering
caused on their
members.
"We are very concerned about the increases in
prices of almost all products.
It is in this vein that a meeting has been
called to discuss strategies that
may lead to the stabilisation of prices of
basic commodities.
"The meeting will be attended by a variety of
players," said Mr Masuku.
Mere anarchy has been unleashed on the market
by unscrupulous businesspeople
with some prices now doubling or even trebling
every week or fortnightly.
The unprecedented price increases come at a
time when most of the workers
last had a salary increase in July after the
collective bargaining exercise.
A labour expert, Mr James Mugwere, said
some companies were, however, trying
their best to alleviate the suffering of
their workers by regularly
reviewing their salaries.
"Quite a few
companies are adjusting the salaries of their workers on a
monthly or
quarterly basis.
"The review is quite necessary, as it will cushion the
workers against the
ever-increasing prices," he said.
An investigation
by The Herald Business indicated that supermarket workers
were now assigned
to change prices almost on a daily basis.
"We are just asked to change
the prices and in most cases there is no
justifiable
reason.
"Actually, managers decide as and when to change the prices and
most of us
do not understand the actual reasons behind the increases," said
one worker
at a city-based supermarket.
A kilogramme of meat now costs
an average $15 000 up from around $5 000 in
June this year. Increases of
similar margins have been witnessed on other
products.
Dairy products,
especially milk, have also increased from $1 200 for 500
millilitres of fresh
milk at the beginning of the month to $1 800.
The price of a loaf of
bread increased last week from $1 200 to $2 000.
Other bakery products have
followed suit.
Retailers say the price increase is a chain reaction to
increases which
would have been effected at the production
level.
Consumers have different views.
"The major bone of
contention are unscrupulous businessmen who increase
prices willy-nilly,
including on old stock.
"There should be a system in place for monitoring
the prices," said Mr
Patrick Nhari, a consumer.
He blasted the
Consumer Council of Zimbabwe for its indifference at a time
when consumers
badly needed the organisation.
Some analysts said it made sense to
increase the prices but it was
irrational to increase them by large
margins.
Price increases are not only restricted to foodstuffs as other
goods such as
kitchenware, clothes, footwear, electrical appliances,
furniture and motor
parts have also shot up in recent weeks.
There
were others who said if prices continue to increase at the prevailing
rate,
then it would not be long before they reached a point of saturation.
A
point of saturation is when consumers cannot afford to buy some of
the
commodities and would opt to use alternatives.
This would see the
prices either stabilising or drop.
Officials from the Ministry of
Industry and International Trade could not be
reached for comment at the time
of going to press yesterday.
ZBC
Nurses call off strike
31 October 2003
Nurses who had been
on strike in Harare and Bulawayo are back at work,
ending three days of
industrial action.
Vice president of the Zimbabwe Nurses Association, Mrs
Oslinah Tagutanazvo,
said nurses had resolved to call off the strike after a
meeting with the
Minister of Health and Child Welfare, Dr David
Parirenyatwa.
She said Minister Parirenyatwa promised to look into their
grievances, thus
the calling off of the strike.
The strike affected
operations at most referral centres such as Parirenyatwa
and Harare hospitals
in Harare and Mpilo and United Bulawayo hospitals in
Bulawayo.
Dr
Parirenyatwa commended the decision taken by the nurses saying his
ministry
will look into their grievances as a matter of urgency.
Meanwhile,
striking junior, middle and casualty doctors who were supposed to
meet at
Parirenyatwa hospital have postponed the meeting.
Hospital Doctors
Association president, Mr Phibion Manyanga, confirmed that
the meeting had
been postponed.
The government has however urged the striking doctors to
return to work
while they look into their grievances
Propaganda Blitz Futile
Financial Gazette
(Harare)
OPINION
October 30, 2003
Posted to the web October 30,
2003
Harare
Before being booted out of power in multi-party
elections in 1994, Malawian
dictator, Hastings Kamuzu Banda, attended a
summit of the Non-Aligned
Movement in an Asian country.
Banda, who was
in his 90s, had been ailing for sometime and because Malawi
was a closed
society at that time, no official information had been released
to the press
pertaining to the state of his health.
As a result, there were all
sorts of rumours, including that the autocrat
had died.
Consequently,
when he showed up at the NAM summit, his mere presence was a
big news story
in its own right.
I remember watching a news clip on television in which
a reporter commented
rather uncharitably that while the rest of the delegates
were grappling with
important issues, the Malawian nonagenarian's main
objectives was to prove
that he was still alive!
The report was
accompanied by film footage showing the tiny, stooped figure
of Banda leaning
heavily on a can, seeming unsure where he was and why he
was
there.
What a shame, I thought at the time, that by clinging to power
into his
dotage, the only impact Banda could make on the international stage
was
merely to be present at the venue of a conference.
Sad to say, six
years after the Malawian strongman's death, the absurd and
aimless quality of
his irrelevance to international discourse now applies to
my own
country.
Apart from the serious issues that have earned Zimbabwe the
embarrassing
distinction of being a Pariah state, the country is also now
best know for
its belligerent, unremitting propaganda which is characterised
by torrents
of denunciations, threats and declarations of
invincibility.
These usually reach a crescendo in the build-up to
important intentional
gatherings such as the Commenwealth Heads of Government
Meeting in Abuja in
December, from which Zimbabwe has been
barred.
Don't get me wrong. The point I am trying to make is not that
Zimbabwe has
no right to present its case and be judged accordingly.
I
am merely arguing that the thrust of its propaganda campaign should
involve
the communication of facts and opinions that are credible and
realistic
enough to enable, as John Milton once said, "the truth to emerge
in the
market place of ideas."
Novelist and essayist, Aldous Huxley in
Propaganda in a Democratic Society
highlighted the power in all human beings
to respond to reason and truth,
not subterfuge and contrivance.
The
problem I have with the propaganda offensive mounted on behalf of
this
country by Jonathan Moyo is that it is limited to harping on
entirely
irrelevant themes, such as the machinations of the West and
Zimbabwe's
sovereignty. If past experience is anything to go by, we should
get ready to
cringe in embarrassment in the coming weeks as we are bombarded
with boasts
on what countries support Zimbabwe, which racists are plotting
against it
and why inspite of what everybody else says, the government of
Zimbabwe is
right to adopt its stubborn stance.
That most self-evident
fact, this country's sovereignty, will be advertised
ad nauseum as though it
were something unique.
The Vatican, with a total area of 108.7 acres and
the principality of
Monaco, which measures 0.75 square miles, are two of the
smallest states in
existence.
Yet both are confident enough of their
moral standing in the world to submit
to international scrutiny (even the
Pope is criticised) without ducking
behind the smokescreen of
sovereignty.
Zimbabwe is not in trouble because anyone is questioning its
sovereignty but
because of serious issues for which its own citizens and the
international
community demand answers.
These include human rights
abuses, lawlessness, lack of democracy, muzzling
of the press and suppression
of dissent.
The country's propaganda machinery should throw some light on
what
improvements have been made in these critical areas instead of
bombarding us
with inane slogans like "Howard the Coward" or any of the tired
anti-Tony
Blair barbs.
Former United States Senator William Fulbright
has been quoted as saying,
"There is something basically unwise and
undemocratic about a system which
taxes the public to finance a propaganda
campaign aimed at persuading the
same tax payers