By A Correspondent- The Zimbabwe Anti-Corruption Commission (ZACC) — for long rapped for being a toothless bulldog — now has arresting powers as Government takes a major stride in its quest to tackle the scourge of corruption.
The changes were announced in an Extraordinary Government Gazette published last Friday through Statutory Instrument 143 of 2019.
The new regulations modified the previous legal instrument that deals with peace officers.
Justice, Legal and Parliamentary Affairs Minister Ziyambi Ziyambi has — in terms of Section 2 (paragraph h) of the definition of “peace officer” under the Criminal Procedure and Evidence Act (Chapter 9:07) — included ZACC officers.
In terms of the law, a peace officer refers to any worker of the State, county, or a municipality, a Sheriff or other public law enforcement agency, whose duties include arrests, searches and seizures, execution of criminal and civil warrants, and is responsible for the prevention or detection of crime or for the enforcement of law or orders among other duties.
The new regulations cited as Criminal Procedure and Evidence (Designation of Peace Officers) (Amendment) Notice, 2019 (No. 3) modified Statutory Instrument 227 promulgated in 1997.
Secretary for Justice, Legal and Parliamentary Affairs Mrs Virginia Mabiza confirmed the promulgation of the SI 143 and explained its effect.
“The statutory instrument gives powers of arrest to officers of Zacc,” she said. “This means that in addition to their special powers to fight corruption they can now arrest any person on reasonable suspicion of any other crime having been committed.”
Mrs Mabhiza added: “Peace officers hand over those under their arrest to the police to continue with investigations. Before the instrument, ZACC would simply make recommendations for the police to arrest in terms of the Constitution.”
The Commission is mandated to investigate and expose criminal cases before handing them to the police as outlined in the country’s Constitution.
It also had authority to direct police to investigate criminal cases as spelt out in the Commission’s roles.
Further, the Commission has power to direct the Commissioner-General of police to investigate cases of suspected corruption, to refer to the Prosecutor-General matters for prosecution, as well as to require assistance from members of the police.
ZACC, however, does not have prosecution functions as their function ends with handing any potential corruption cases over to the police for further management.
The Prosecutor-General working in conjunction with Special Anti-Corruption Unit prosecutors have prosecutorial discretion to initiate criminal proceedings.-StateMedia
Vendors and traders have expressed disappointment over government’s failure to protect and secure their operations saying their hopes in the President Emmerson Mnangagwa administration has not yielded positive results as the recently enacted policy to outlaw multi-currency use in the country is hitting hard on their operations.
Addressing the media last week, informal traders including Bulawayo Vendors and Traders Association (BVTA), Vendors Initiative and Economic Transformation (VISET), Zimbabwe Cross Border Traders Association (ZCBTA) as well as Women Alliance of Business Association Zimbabwe (WABAZ) who are all affiliated to the Zimbabwe Chamber of Informal Economy Association (ZCIEA) said that they pinned their hopes on President Emerson Mnangagwa whom they thought would make the informal sector recognized but now have to cope with the day to day cat and mouse chase with municipal police in all Central Business Districts (CBD) across the nation.
“Do not criminalize our work, after all we feel let down by ruling party after July 30 elections, now we want a clear policy on informal work. We thought that for a moment everything is going to be well for us but now we are the most to suffer from the US dollar ban,” President of ZCIEA, Lorraine Sibanda.
Speaking on the abolition of multi-currency regime, Sibanda said any policy changes requires engagement and dialogue before implementation.
“We are in a state of confusion about the government’s move to ditch multi currency use,i will not claim to know about how we, as informal economy traders going to move from here but my thinking is when ever there is change, there is need for engagement and dialogue before a bombshell dropping on citizens,” she added.
Sibanda demanded that workers in the informal sector be protected from the law enforcement agents who are harassing and confiscating their goods.
“We are still working to make sure that as informal economy workers, we have opportunity to work where we can enjoy sustainable livelihoods,” she said.
A man was violently beaten in the casualty waiting area of South Rand hospital in Johannesburg on Saturday
A man was violently beaten in the casualty waiting area of South Rand Hospital in Johannesburg on Saturday‚ allegedly by “thugs” who wanted to “finish him off”.
A video of the incident was shared on social media on Sunday. The footage shows a man who is seemingly injured lying on a bench in the casualty waiting area at the state medical facility‚ in the south of Johannesburg.
Three men are seen arguing with medical personnel through a security gate. One of the men pulls the injured man from the bench and starts kicking him. The two others join in‚ kicking the man who is on the floor. Blood spots are evident on the floor as the men drag the injured man to a safety gate. The attackers then leave the hospital.
“This is so wrong‚ where are the police? Where are the security guards?” a staff member asks. A second staff member is heard saying: “Gone‚ all of them. They ran away.” Democratic Nursing Organisation of SA (Denosa) provincial chairperson Simphiwe Gada said the incident happened in the early hours of Saturday morning.
Gada said a patient went to the hospital with a gunshot wound. He was apparently being pursued by the men.
“When the patient arrived at the hospital‚ those thugs came in and assaulted the patient right inside the casualty waiting area. The security [guards] fled and left the nurses and the doctors on their own.”
Gada said the medical staff were only protected “from the thugs” by a security gate. Gada said they had since visited the hospital to support the workers. He accused hospital management of not taking the matter seriously.
“The precautionary measure that should have been taken is that the patient should have been transferred to another hospital so that those people could not find him at the hospital to finish him off. Workers must work in a safe environment and when these things happen‚ they must be protected‚” he said.
Gada said a similar incident happened at Phola Park Clinic in Thokoza‚ Ekurhuleni‚ last week.
“People were stabbing each other at the clinic and the security [guards] fled.”
The department of health said the hospital’s managers were meeting yesterday morning to discuss the matter. The condition of the victim was not immediately clear by late yesterday.
By Own Correspondent- Government has tightened the belt in public finances management and has devised new measures to govern expenditure and debt.
A key feature of the new regulations — contained in Statutory Instrument SI 144 of 2019, also known as Public Finance Management (Treasury Instructions) 2019 gazetted last Friday — is the barring of expenses related to Government officials travelling with spouses or family while on duty.
Additionally, the regulations set out conditions for payment for trips.
The new regulations seek to supervise the consolidated revenue fund, charges upon consolidated revenue fund, appropriations from the fund, limits of State borrowing, public debt and State guarantees, safeguards of public funds and properties, among 10 of the key deliverables.
SI 144 takes into account the macro-economic framework, Government’s future borrowing requirements as well as domestic and international economic and financial conditions.
On costs incurred by Government officials’ families, the new regulations read: “Government shall not be responsible for costs incurred when officers on official duty travel with spouses, children or dependants.”
The new regulations set up a framework for the management of Government debt which stood at US$16,6 billion as at December 31 last year, of which US$$8,16 billion was external debt.
The bulk of the debt is historical, incurred during the First Republic era, which was notable for its profligacy.
Read the new regulations in part: “Treasury shall formulate a medium-term debt management strategy for managing GoZ (Government of Zimbabwe) debt.
“It is the responsibility of the PDMO (Public Debt Management Office) to prepare and publish the medium-term debt management strategy . . .”
SI 144 of 2019 notes that the strategy shall take into account “the existing
public debt portfolio especially (but not exclusively) the Government component of the public debt portfolio.”
Finance and Economic Development Minister Professor Mthuli Ncube approved the Treasury instruments in terms of section 78 of the Public Finance Management Act (Chapter 22:19).
They shall henceforth replace and supersede all previous instruments.
The new measures are a departure from the previous regime’s practices, and are seen as a huge step towards cutting Government expenditure in line with the 2019 national Budget, which was presented under the theme: “Austerity for prosperity”.
Under the TSP – a national short-term economic blueprint that runs from October 2018 to December 2020 – Government commits to strengthening public finance management systems, and the move to formulate a medium-term debt management strategy is part of the process.
The TSP prioritises strengthening the Public Finance Management System, building on work already being conducted under the World Bank managed Zimbabwe Reconstruction Fund, to roll-out the system to cover all districts.
But analysts say for the TSP to be a success and ‘Vision 2030’ to be attained, there was need for transparency and accountability to stop rent-seeking and corrupt behaviours by ordinary citizens in general and public office bearers in particular.
In the TSP’s preface, President Mnangagwa notes the importance of transparency and accountability when conducting Government business.
“Most importantly, the need for transparency and accountability by all stakeholders and citizens will be key for the transformation of the economy and realising the aspirations of Vision 2030,” notes the President.-StateMedia
Democratic Republic Of Congo squeezed through to the the last sixteen of the African Cup of Nations and stand a good chance of even making it to the last eight, all thanks to a pathetic Zimbabwe Warriors performance on Sunday.
IN just one-and-half hours, the Warriors dragged themselves from the doors of paradise to the gates of hell; transformed their Afcon adventure from being a symbol of hope to a tour of shame and watched as immortality rejected them on a horror night that felt like the end of the world.
AFCON is now an agonising watch for Zimbabwean soccer fans who can’t believe how the promising Warriors slumped so badly when it mattered most.
With or without the Warriors, the tournament moves on and the last sixteen have been confirmed.
Air Zimbabwe has denied that three MA60s acquired from China in 2005, had disappeared.
The airline says the planes are there and not working but what the Auditor General’s office found amiss was the documentation regarding the purchase and ownership of the planes and all paper trail regarding how they were used.
Air Zimbabwe has in the past months been operating using one plane before it added some planes to its fleet recently.
The company is under an Administrator according to the Reconstruction of State Indebted Companies Act.
President Emmerson Mnangagwa appointed ZANU PF Politiburo member Patrick Chinamasa as the sole Board member and Chairperson of the enterprise.
According to an investigate website ZimFact Air Zimbabwe spokesperson Tafadzwa Mazonde said, “For state enterprises, government comes in from time to time to offer shareholder support. In this case, the assets were bought in the name of the Government of Zimbabwe, not Air Zimbabwe. So, when the auditors came, they queried this, they wanted the paperwork, which is with the government. Remember Air Zimbabwe is a separate entity from government, and, from accounting best practice, the auditors want to know the link. There should at least be a lease agreement showing the arrangement, which isn’t there. The planes are there, you can come and see for yourself.”
The Auditor General says in her report that she could not find documentary evidence of the purchase or leasing of the three planes, which the airline was using and deriving economic benefits from.
“The company was using and deriving economic benefits from three MA60 aircraft, which were not accounted for in the company’s financial statements. There was neither a lease agreement nor agreement of sale for the assets hence I could not determine the correct accounting treatment for same.” She said.
Reflections on the National Shutdown-The Case for Urgent, Decisive and Collective ACTION
Promise Mkhwananzi
By Promise Mkwananzi|Tajamuka was created as a coalition of several organizations to carry out peaceful but radical and action-oriented protests and activities. The main rationale was to create an amorphous movement that is less bureaucratic de-institutionalised and thus rapid in its responsiveness to the issues and events on the ground than most highly institutionalised and hierarchical organisations would ordinarily be.
Secondly, it was supposed to compliment both civic society organisations and democratic political parties by being a purely citizen based social movement that could mobilise all people regardless of the political belongings. This mobilisation would be done on the basis of the pursuit of political justice, social cohesion and economic freedom. These would obviously contribute to the broader democratic struggle.
Tajamuka therefore became a natural ally of the broader democratic movement from its inception and many activists and democratic organisations not only identified with it but also actively took part in its spontaneous, instantaneous and radical programs of action.
One of the mischiefs Tajamuka was created to cure was the fact that bigger and bureaucratic organisations could take ages to respond to a pertinent national until the political moment was lost and/or overtaken by events. Thus Tajamuka became the vehicle for rapid response to economic and political events in Zimbabwe and became a household name among the young and the old alike.
This has never changed and is not likely to change in the hearts and minds of the people of Zimbabwe, both in and outside the country, rich and poor, young and old, men and women. It will remain so for the foreseeable future and for as long as Tajamuka remains that social movement it was founded to be.
Towards the end of June 2019, political events began to gather momentum in Zimbabwe. By the 20th of June, events had reached the tipping point and the agitation among the masses was near boiling point. On the 25th of June 2019, true to its form Tajamuka began a rapid response process. A petition was submitted to President Mnangagwa and the Clerk of Parliament giving them a five-day ultimatum to address the issues that were raised, many of them centred on or arising from the constitution of Zimbabwe from the right to peaceful protests to the President and his government.
For Tajamuka, this is not a new phenomenon.
In 2016, we sued Mugabe on more or less the same basis. We also participated in several other campaigns and shutdowns including the final march that abdicated President Mugabe. We also participated in the August 2018 protests demanding the timely release of election results, we participated in the January 2019 national shutdown and many others. We did this regardless of who called the action and we will continue to participate and support actions from the broader democratic movement whether called by individuals, organisations, opposition parties or otherwise as long as we are sure that these actions further the broader democratic objectives of the people of Zimbabwe and as long as such actions and activities are democratic, lawful, peaceful and non-violent.
That is why when we called for the national shutdown on Monday the 1st of July 2019, it barely registered in our minds that there was going to be any issues of who had called the action. We acted in the true spirit of Tajamuka which is to seize the political moment and use the flexibility of the movement to kick-start a series of events and activities that we started and had hoped other progressive organisations would support.
Since its formation, Tajamuka has never harboured any other mandate besides that which it has which is to be a citizen based pressure group that mobilises citizens to respond rapidly, radically, but peacefully to the economic and political events on the ground.
On the 1st of July, it was in the same spirit that we called the for the national shutdown. It is evident that the moment and timing were perfect. It didn’t and still doesn’t matter much who had called it, democratic organisations and movements were and are still supposed and expected to seize the moment and provide the leadership that the people of Zimbabwe expect of them.
Surely, we can’t lose a golden political opportunity just to spite Tajamuka or show the world that Tajamuka cannot do it alone. It is common cause that we cannot do it alone and that nobody can do it alone. To borrows from President Barack Obama “The challenges we are facing are greater than the smallness of our politics”.
The time for action and leadership is now. Our groundwork and even the traction and momentum generated towards the 1st of July prove that the political momentum is ripe for such action from both activists and general citizens. This is also evident in the social media were people are clamouring for action. This action ought to come from a collective and selfless effort of all actors and stakeholders.
It doesn’t matter who called it what matters is that it is done and done decisively.
In conclusion, it is our considered view that the political moment still exists for democratic forces to make both an impact and a difference. The call by the ZCTU for action after the expiry of their ultimatum to government is no less an opportunity than the 1st of July and deserves the support of all and sundry who still believe in the struggle for the democratisation of Zimbabwe.
The MDC is and remains the biggest and most formidable political formation in Zimbabwe-arguably even more formidable than ZANU PF itself (barring party-state conflation). It therefore does not make any strategic sense for the MDC to seem to be threatened or in competition with formations that are way smaller than it and that are meant to cushion and complement the MDC in situations and circumstances where the MDC cannot be seen to be on the lead.
This also applies to the ZCTU, a formidable workers union that ought to be working with Tajamuka and other outfits that are better placed to embrace the informal sector to augment the ZCTU owing the depletion of the labour base we knew in the past that passed on due to unemployment and ZANU PF`s economic mismanagement.
We remain committed to a collaborative approach with other pro-democratic forces in Zimbabwe. Founded by more than 43 organisations, collaboration is in the DNA of Tajamuka. As we collectively look to escalate the action against the malpractices of the ZANU PF, we plead the case of unity and collaboration, tolerance and complementarity among the democratic forces. The moment for collective, selfless and decisive action is now. The people of Zimbabwe expect no less from us.
Chief Ndiweni at state house meeting with Mnangagwa
OUTSPOKEN traditional leader, Chief Nhlanhlayamangwe Ndiweni – who has in recent months courted the ire of Zanu-PF apparatchiks with his stinging criticism of the government – has praised President Emmerson Mnangagwa for holding dialogue with chiefs from the Matabeleland region.
This comes as the government is working harder to bring closure to the highly-emotive Gukurahundi issue, which was on the agenda when Mnangagwa met chiefs from the region in Bulawayo on Friday.
Ndiweni, who recently attended and addressed the MDC’s elective congress in Gweru, told the Daily News yesterday that Mnangagwa’s meeting with Matabeleland chiefs was “a positive development” in efforts meant to address numerous problems in the region, including the Gukurahundi issue.
“It was a step in the right direction … towards addressing our various grievances in the region, which has been marginalised for years.
“The engagement was sincere. I didn’t see any problem … considering that I was part of the chiefs who put the document together that we submitted to the president.
“We have the issue of Gukurahundi … it can only be addressed through open discussions like these,” Ndiweni said.
The chiefs and other interest groups, who attended Friday’s meeting, submitted a 22-page document to Mnangagwa in which Gukurahundi atrocities topped the agenda.
Among other things, the chiefs demanded in the document that Mnangagwa apologises over the killings, declares a day of public mourning for victims, and also facilitates the exhumation and reburial of victims.
The traditional leaders further demanded the immediate release of Gukurahundi reports such as the Chihambakwe and Dumbutshena commissions of inquiry into the atrocities.
In April, Mnangagwa announced that his government would okay the exhumation and reburial of thousands of people who died during the Gukurahundi massacres of the 1980s.
Apart from reburying the victims of those atrocities, the government also committed itself to providing birth and death certificates to the children and relatives of the victims who – for decades now – have been facing insurmountable hurdles at the Registrar General’s offices.
The process of exhuming bodies kicked off in the same month, with the first ceremony being held at Sipepa Village in Tsholotsho – where villagers witnessed the interring of Justin Tshuma and his wife Thembi’s remains.
Ndiweni has consistently attacked the government over the past few months, particularly over the unresolved Gukurahundi issue.
Last year, he even wrote an emotive letter to the United Nations, calling for an independent commission of inquiry to be set up to investigate the atrocities.
“We write requesting an independent commission of inquiry be set up to investigate atrocities which occurred in Matabeleland and Midlands in Zimbabwe … between 1981 and 1987 … after the country gained independence from Britain.
“The atrocities escalated into genocide occasioned by an ethnic cleansing agenda targeting the Ndebele people in the western and central parts of the country,” Ndiweni said in a letter he co-authored with Chief Maduna of Filabusi and which was addressed to UN secretary-general Antonio Guterres.
The letter was also copied to Amnesty International, the African Union, Sadc and the European Union (EU) Parliament, among others.
An estimated 20 000 people are said to have been killed mainly in Matabeleland and Midlands when the government deployed the North Korea-trained Fifth Brigade to the two regions, to fight an insurrection.
Unity Day was subsequently set up to commemorate the Unity Accord which was later signed between Zapu and Zanu on December 22, 1987, which ended hostilities between the two parties.
A young aspiring fashion designer’s life was taken away by her boyfriend in Harare on Sunday 30 June 2019. Reports reaching this publication indicate that Angela Dapi, a third year Fashion and Design student at Chinhoyi University of Technology (CUT) was allegedly killed by her boyfriend Richard Nenohwe, who is also an alumni of the same university.
The case shocked many students at CUT and devastated Angela’s family. Angela and her boyfriend had broken up a month ago because of her boyfriend’s wondering eyes. However, the boyfriend refused to accept being dumped. He travelled from a mine in Zvishavane where he worked to Harare on Sunday to try and sort out their relationship. He invited his ex to come and meet with him at Elizabeth Hotel in Harare’s CBD.
It is there that he strangled her between 4.00pm when she entered the hotel and 4.30pm; when he sent a text message to his friend alerting him that he had killed his girlfriend. The police were then informed and had to break down the door to gain access to the hotel room where they found Angela’s lifeless body lying on top of the bed. Richard was found bleeding profusely after he had attempted suicide by slashing his neck and wrists with a broken drink bottle.
He is currently recovering in hospital under police guard. Police investigations are continuing.
This case also brings hotel security into question.
Sources said is highly unlikely that noone from the hotel security could have heard the commotion that possibly went during the struggle. Why did noone come to Angela’s rescue?, some asked.
A young life has been lost unnecessarily. More details are likely to emerge as the case goes through the criminal justice system.- Agencies
By A Correspondent- Four people died and 12 others were injured in an accident which happened at Eiffel Blue turn-off in Kadoma.
The accident claimed the lives of Castasia Charamba (aged 53) of Mafunga Street, Nescar Diza of (47) of Rimuka Infill , Peter Nasho (37) and of Mangwanya Street and Virginia Shonai (age and address not given ).
The deceased were coming from Chinhoyi when the right rear tyre of the Toyota Hiace minibus they were travelling in burst, prompting the driver Ephraim Gusini to lose control of the vehicle which then landed on its roof.
Of the 12 injured, 4 are still recovering at Kadoma General Hospital.
This is a developing story. Refresh this page for latest details.
Despite the Zimbabwe National Army trying to make light the matter of officers pictured standing on late former Vice President Joshua Mqabuko’s grave at the National Heroes Acre, the National Museum and Monuments have declared that they are taking the matter seriously and will be making investigations on it.
National Museum and Monuments Director Dr Godfrey Mahachi emphasised that the National Heroes’ Acre is a very important national shrine and should be treated with respect.
He said his department will investigate the matter and engage authorities at the shrine and the army.
“It’s a shrine where we bury important people who have made tremendous contributions towards the independence of the country. Everybody should respect that,” said Dr Mahachi.
The picture showing two uniformed soldiers and a civilian at the grave of the late former Vice President at the National Heroes’ Acre in Harare went viral on Tuesday attracting huge criticism from all sectors in the country.
In its defence, the army claimed that the picture was photoshopped.
ZNA spokesperson, Lieutenant Colonel Alphios Makotore said that the soldiers on the picture were not in the uniform used by those guarding the shrine making him believe that it was manipulated.
“That picture was photoshopped. The National Heroes’ Acre is guarded by troops from the Presidential Guard and soldiers in the picture are not in the official colours of the Presidential Guard. It’s a doctored picture,” said Lt Col Makotore.
Closer looks at the picture however do not justify the army’s claims which they have to work very hard to prove to the investigators from the National Museums and Monuments.
The late Dr Nkomo, a renowned nationalist and politician, died on January 1 in 1999 and was buried at the National Heroes’ Acre in Harare.
The Zimbabwe Anti-Corruption Commission (ZACC) — for long rapped for being a toothless bulldog — now has arresting powers as Government takes a major stride in its quest to tackle the scourge of corruption.
The changes were announced in an Extraordinary Government Gazette published last Friday through Statutory Instrument 143 of 2019.
The new regulations modified the previous legal instrument that deals with peace officers.
Justice, Legal and Parliamentary Affairs Minister Ziyambi Ziyambi has — in terms of Section 2 (paragraph h) of the definition of “peace officer” under the Criminal Procedure and Evidence Act (Chapter 9:07) — included ZACC officers.
In terms of the law, a peace officer refers to any worker of the State, county, or a municipality, a Sheriff or other public law enforcement agency, whose duties include arrests, searches and seizures, execution of criminal and civil warrants, and is responsible for the prevention or detection of crime or for the enforcement of law or orders among other duties.
The new regulations cited as Criminal Procedure and Evidence (Designation of Peace Officers) (Amendment) Notice, 2019 (No. 3) modified Statutory Instrument 227 promulgated in 1997.
Secretary for Justice, Legal and Parliamentary Affairs Mrs Virginia Mabiza confirmed the promulgation of the SI 143 and explained its effect.
“The statutory instrument gives powers of arrest to officers of Zacc,” she said. “This means that in addition to their special powers to fight corruption they can now arrest any person on reasonable suspicion of any other crime having been committed.”
Mrs Mabhiza added: “Peace officers hand over those under their arrest to the police to continue with investigations. Before the instrument, ZACC would simply make recommendations for the police to arrest in terms of the Constitution.”
The Commission is mandated to investigate and expose criminal cases before handing them to the police as outlined in the country’s Constitution.
It also had authority to direct police to investigate criminal cases as spelt out in the Commission’s roles.
Further, the Commission has power to direct the Commissioner-General of police to investigate cases of suspected corruption, to refer to the Prosecutor-General matters for prosecution, as well as to require assistance from members of the police.
ZACC, however, does not have prosecution functions as their function ends with handing any potential corruption cases over to the police for further management.
The Prosecutor-General working in conjunction with Special Anti-Corruption Unit prosecutors have prosecutorial discretion to initiate criminal proceedings.
State Media|Government is tightening the belt in public finances management and has devised measures to govern expenditure and debt.
A key feature of the new regulations — contained in Statutory Instrument SI 144 of 2019, also known as Public Finance Management (Treasury Instructions) 2019 gazetted last Friday — is the barring of expenses related to Government officials travelling with spouses or family while on duty.
Additionally, the regulations set out conditions for payment for trips.
The new regulations seek to supervise the consolidated revenue fund, charges upon consolidated revenue fund, appropriations from the fund, limits of State borrowing, public debt and State guarantees, safeguards of public funds and properties, among 10 of the key deliverables.
SI 144 takes into account the macro-economic framework, Government’s future borrowing requirements as well as domestic and international economic and financial conditions.
On costs incurred by Government officials’ families, the new regulations read: “Government shall not be responsible for costs incurred when officers on official duty travel with spouses, children or dependants.”
The new regulations set up a framework for the management of Government debt which stood at US$16,6 billion as at December 31 last year, of which US$$8,16 billion was external debt.
The bulk of the debt is historical, incurred during the First Republic era, which was notable for its profligacy.
Read the new regulations in part: “Treasury shall formulate a medium-term debt management strategy for managing GoZ (Government of Zimbabwe) debt.
“It is the responsibility of the PDMO (Public Debt Management Office) to prepare and publish the medium-term debt management strategy . . .”
SI 144 of 2019 notes that the strategy shall take into account “the existing public debt portfolio especially (but not exclusively) the Government component of the public debt portfolio.”
Finance and Economic Development Minister Professor Mthuli Ncube approved the Treasury instruments in terms of section 78 of the Public Finance Management Act (Chapter 22:19).
They shall henceforth replace and supersede all previous instruments.
The new measures are a departure from the previous regime’s practices, and are seen as a huge step towards cutting Government expenditure in line with the 2019 national Budget, which was presented under the theme: “Austerity for prosperity”.
Under the TSP – a national short-term economic blueprint that runs from October 2018 to December 2020 – Government commits to strengthening public finance management systems, and the move to formulate a medium-term debt management strategy is part of the process.
The TSP prioritises strengthening the Public Finance Management System, building on work already being conducted under the World Bank managed Zimbabwe Reconstruction Fund, to roll-out the system to cover all districts.
But analysts say for the TSP to be a success and ‘Vision 2030’ to be attained, there was need for transparency and accountability to stop rent-seeking and corrupt behaviours by ordinary citizens in general and public office bearers in particular.
In the TSP’s preface, President Mnangagwa notes the importance of transparency and accountability when conducting Government business.
“Most importantly, the need for transparency and accountability by all stakeholders and citizens will be key for the transformation of the economy and realising the aspirations of Vision 2030,” notes the President.
The International Cricket Council (ICC) is expected to announce the fate of Zimbabwe during its annual conference later this week.
This will be in response to the suspension of the Zimbabwe Cricket (ZC) by the government-controlled Sports and Recreation Commission (SRC), replacing it with an interim administration.
The ICC rules are against any government interference.
The SRC also suspended the ZC acting managing director, Givemore Makoni. The SRC argued that it suspended the board in response to the ZC’s failure to abide by a directive the SRC had given the cricket board. Suspending the board, the SRC said:
Taking into account the foregoing and, in particular, the failure by Zimbabwe Cricket to abide by a lawful directive from SRC, issued in terms of the SRC Act Section 19(a) and (b) of the SRC Act as read with Section 20(c) thereof. The SRC has resolved that: (1) The failure by ZC to suspend its elective (and ignore an order of the court) and its failure to comply to the provisions of Section 30(a) and (b) of the SRC Act .
The ICC officials made the Zimbabwe matter the main agenda for the annual conference which will be held in London immediately after the final of the World Cup on July 14.
Zimbabwe faces suspension for its actions and this will have an adverse impact on the team which is scheduled to travel to Ireland this month and to India in January next year before bilateral series against Afghanistan and West Indies.State media
WARRIORS defender Tendayi Darikwa says he feels honoured to represent the country at the 2019 Afcon finals despite the embarrassment.
Zimbabwe crashed out of the ongoing tournament Sunday night after a humiliating 4-0 defeat to DR Congo in their last group stage match.
They had lost 1-0 to Egypt in the opening match before a 1-1 draw against Uganda in their second match. Darikwa, however, highlighted that they tried to produce the desired results under difficult circumstances but it did not go their way.
The campaign saw players threatening to boycott matches twice over unpaid wages and allowances which some believe has distracted the boy’s focus.
The Nottingham Forest defender took to Twitter yesterday to salute the fans who rallied behind him and the team. “Things don’t always go as planned. We tried our best under some difficult circumstances. Thank you everyone for your love and support, it’s been an honour,” he tweeted.
Going into Sunday match, the Warriors were hoping to break the jinx of progressing to the knockout stages.State media
AN image purportedly showing two soldiers and a civilian at the grave of the late former Vice President Dr Joshua Nkomo at the National Heroes’ Acre in Harare was photoshopped, the Zimbabwe National Army said yesterday.
The picture, which went viral on Monday when the nation was commemorating the 20th anniversary of the death of Dr Nkomo, shows one of the soldiers standing on top of the tombstone, while the other soldier and the civilian are sitting on the tombstone pedestal.
It sparked outrage from Zimbabweans on social media, who described the soldiers’ actions as “disrespectful” and “unacceptable”.
The late Dr Nkomo, a renowned nationalist and politician, died on January 1 in 1999 and was buried at the National Heroes’ Acre in Harare.
ZNA spokesperson, Lieutenant Colonel Alphios Makotore, said the picture was doctored.
“That picture was photoshopped. The National Heroes’ Acre is guarded by troops from the Presidential Guard and soldiers in the picture are not in the official colours of the Presidential Guard. It’s a doctored picture,” said Lt Col Makotore.
National Museum and Monuments national director, Dr Godfrey Mahachi said he knew nothing about the incident but emphasised that the National Heroes’ Acre should be treated with respect.
He said his department will investigate the matter and engage relevant authorities.State media
Ghana brushed aside Guinea-Bissau 2-0 in their final 2019 Africa Cup of Nations (AFcon) Group F match at the Suez Stadium in Egypt on Tuesday evening.
The victory saw the Black Stars advance to the Round of 16 as group winners, while the African Wild Dogs bowed out of the tournament after finishing fourth in the group.
Meanwhile, Benin and Cameroon have both advanced into the last 16 of the 2019 Africa Cup of Nations after playing out a 0-0 draw in their final Group F match at the Ismailia Stadium in Egypt on Tuesday evening. — SuperSport.
AN 80-YEAR-OLD Chipinge man hanged himself in an abandoned hut following a dispute with his son who blamed him for his misfortunes.
Manicaland police spokesperson Inspector Tavhiringwa Kakohwa confirmed the incident, which occurred last week in Marenga Village under Chief Garawa.
Samuel Siyadzeya could not contain accusations by his eldest son, Solomon (60), who suggested that he was responsible for his misfortunes. Siyadzeya had a history of suicidal tendencies.
He had tried to kill himself before, but was restrained by his sons. Insp Kakohwa said Siyadzeya used a wire to hang himself from roof trusses.
He appealed to the public to resolve family disputes peacefully. “People should find better ways to settle their disputes than to kill themselves,” said Insp Kakohwa.State media
Jazz musician Bob Nyabinde recently presented an AK47-shaped guitar to Lands, Agriculture, Water, Climate and Rural Resettlement Minister Marshal Perance Shiri who was the guest of honour during the Mazowe Rural District Council investment conference at Mazowe Hotel.
Nyabinde said the guitar symbolises peace. He also sang the song “Zvinoita Hope,” in honour of the minister.
“Zimbabwe is now yearning for peace and we are turning our guns into guitars, instead of releasing bullets we are releasing musical beats,” said Nyabinde. This will bring smiles on many faces in the nation.
“My relationship with (Cde)Shiri is coincidental. People from the Air Force of Zimbabwe approached me about two years ago asking for a unique present for him in the form of guitar resembling an AK47.
“I then designed the gun and asked for a real gun magazine to put on the guitar.
Today I took advantage of the investment conference to show people that these can be made locally and that is why I presented it to the guest of honour, Minister Shiri.”State media
Zimbabwe will import 800 000 tonnes of maize following last season’s poor rains which led to a drought, President Mnangagwa has said.
The country is already in negotiations with potential suppliers, including Tanzania which has promised to help.
Addressing villagers on Monday after officially opening the US$20 million rehabilitated Ngundu-Tanganda Highway in Chipinge, the President said Government will ensure no one starved.
He stressed that food relief will not be distributed along partisan lines. “I want to assure you that this drought did not affect Chipinge alone,” said the President, while speaking in vernacular.
“There were not enough rains throughout the country. Although some areas received some rains, all provinces had some areas where there were not enough rains.” President Mnangagwa said while other provinces had a good harvest, others did not.
“Some provinces had a good harvest and their surplus should be moved to the affected provinces,” he said. “Overall, we need to import around 800 000 tonnes because our principle is that no one should die of hunger.”State media
MASVINGO Provincial Hospital medical superintendent Dr Julius Chirengwa and the entire management committee have been suspended pending investigations into a scandal that has resulted in critical drugs being diverted to private pharmacies for resale in foreign currency.
Most of the drugs were donated to the hospital, while others were sourced from the National Pharmaceutical Company (Natpharm).
Also noted at the institution was the abuse of the procurement process for personal gain, among other corruption-related allegations. This comes amid an acute shortage of medicines and critical equipment at State institutions, which pushes desperate patients to private pharmacies.
Dr Chirengwa was suspended together with a general surgeon, Dr Noel Zulu.Other suspended members of the hospital management committee include Ms Helga Mpande, a former matron at Masvingo Hospital, acting Tutor-in-Charge at the School of Nursing Ms Rosemary Machuwaire, hospital pharmacist Mr Zivanai Zibhenge and pharmacy technicians Messrs William Mamombe and Munyaradzi Thomu.
A general hand in the pharmacy department, Mr Shepherd Hwaire, and another attached to the Equipment Stores and Workshop Department were not spared.
Secretary for Health and Child Care Dr Agnes Mahomva confirmed the suspensions, but could not shed more light.
“Yes, I can confirm that some officers in Masvingo have been suspended pending investigations,” said Dr Mahomva.State media
Farai Dziva| Emmerson Mnangagwa yesterday used the liberation war maxim “pasi navo” to denounce those plotting to stage mass protests.
However political analysts feel the maxim should not be used in the so called new dispensation.
Addressing hundreds of villagers who converged at Kondo Primary School to witness him officially opening the rehabilitated Tanganda-Ngundu Highway, Mnangagwa said demonstrations and stay aways “do not bring any benefit.”
He said focus by all must be on developing the country as demonstrated by the commissioning of the Tanganda-Ngundu Highway, instead of wasting energy on negativity.
“For those with mobile phones, they were saying today (yesterday) you should stay away, stay away.
Stay away yokudii? Muchigara kuitira ani? Anozotambura ndiani kana mukasasevenza?,” said Mnangagwa.
Ko tozodyei kana tisingashande? Saka musaterera mhesva mukono idzi dzinopihwa mari nevanhu varikunze, dzinopihwa mari nevanhu vagere ku South Africa uko vatinoziva vamwe ma criminals akatiza muno varikutsvaga mari kuti kuve nemhirizhonga mukati menyika ivo vagere vachiplanner varimumahotera. Pasi navo! Saka hakuna stay away,” added Mnangagwa.
A Harare man Godfrey Mupanga has filed an application at the High Court seeking to set aside Statutory Instrument 142 of 2019 which scrapped the multi-currency system.
Through Statutory Instrument 142 of 2019, Government announced that it was abandoning the multiple currency regime.
The move was meant to save Zimbabweans who had been disenfranchised by businesses pricing in foreign currency, especially the United States dollar.
Mupanga is, however, seeking an order declaring the legal instrument null and void. He argues that the law was in conflict with the Reserve Bank of Zimbabwe Act.
Mupanga contends that the law was in contravention of Section 134 of the Constitution of Zimbabwe. He wants the court to rule that the decision scrapping the multi-currency system in Zimbabwe is grossly unreasonable.
“The decision by the respondents to ban the multi-currency system in Zimbabwe prescribed by Section 44A of the Reserve Bank of Zimbabwe Act Chapter 22:15 as legal tender is grossly unreasonable,” Mupanga argues in his papers.
The High Court is yet to set down the matter for hearing.- state media
A new pharmaceutical manufacturing plant is set to be constructed in Mt Hampden, about 20km north-west of Harare, in a development expected to cut reliance on foreign drugs and create more jobs for citizens.
Africure Pharmaceuticals Zimbabwe plans to construct the pharmaceutical manufacturing plant in collaboration with Innovata Pharmaceuticals Limited of South Africa.
The value of the project could not be ascertained by the time of going to print. The critical project would be undertaken, but only after an Environmental Impact Assessment (EIA) has been obtained.
Africure Pharmaceuticals Ltd has contracted the Scientific and Industrial Research Development Centre (SIRDC) to conduct an EIA study for this project.
Reads the notice: “Africure Pharmaceuticals Zimbabwe in collaboration with Innovata Pharmaceuticals Ltd intends to construct a new pharmaceutical manufacturing plant in Mt Hampden, Zvimba District, Mashonaland West Province.
“The proposed project site is Lot 1 Shamwari Road. In addition to the manufacturing plant, other structures to be constructed on site include effluent treatment plant, offices, warehouses and other ancillary facilities.” – state media
Farai Dziva|Government sources who claim to be close to ailing Constantino Chiwenga say the former army general was poisoned through water.
Chiwenga is said to be battling for his life at a South African hospital.
Government sources say Chiwenga who is now unrecognisable is critically ill.
Government sources further revealed Chiwenga was poisoned using radioactive Polonium-210.
“Chiwenga was poisoned through water that was delivered to his luxurious mansion in Borrowdale.
Due to the difficulty of drilling boreholes at the mansion’s hilltop location, the VP’s house was previously serviced by water bowsers and bottled water.
He (Chiwenga) is in a major fight for his life.
He has told those close to him that he believes he was poisoned through water delivered to his home.”
Farai Dziva|Former ZBC presenter Ezra Tshisa Sibanda has accused “junior army officers of disrespecting the late nationalist Joshua Nkomo.”
Pictures of soldiers- seemingly making awkward gestures at Father Zimbabwe’s grave- have gone viral on social media.
An irate Sibanda said: ” Who are these low people mocking and standing on the tombstone of the Great Founding Father of our nation, Joshua Mqabuko Nyongolo Nkomo?
This is meant to be a museum and should be accessible to the general public and tourists but remains a no go area.
Please help identify these disrespectful clowns and hopefully authorities will take action.”
Simba Nhivi and Godknows Murwira are this week expected to return to Dynamos as the club seeks to strengthen after a poor start to the season.
Nhivi is a free agent after being released by Ngezi Platinum Stars over allegations of inciting other players to strike for an adjustment to their salaries and bonuses.
Murwira is pushing for an exit from FC Platinum after failing to nail a starting berth since moving there at the end of last year. He has spent most of the time either on the bench or on the terraces.
The Platinum Boys are, however, reluctant to let him go but the player is pushing hard and a breakthrough is most likely to be made this week as negotiations between the two clubs are going on.
Forgotten midfielder Archford Gutu has already completed his return to Dembare and is expected to commence training this week together with Nhivi and Murwira.
Meanwhile, Dynamos coach Tonderai Ndiraya has been lamenting lack of quality and experience in the squad which was assembled by his predecessor Lloyd Chigowe who was sacked after taking charge of just three league games.Soccer24Zimbabwe
By Own Correspondent- The Zimbabwe Republic Police has said a 16-year-old boy died at Dikili Line, Chief Gampu area, Tsholotsho on 1 July 2019 after he was assaulted by 4 men all over the body with a switch.
The boy who was being accused of stealing a pair of shoes in the neighbourhood was tied to a tree where the suspects assaulted him.
After the assault, his legs and hands were tied with a rope and he was detained overnight in a hut.
His condition deteriorated and he died the following morning. All the accused persons fled from the village on realising his death.
We are urging members of the public to desist from meting out instant justice on people and seek assistance from the police with a view to applying the due process of the law.
By Own Correspondent- Vendors and traders under various banners have expressed anger over the manner in which they are being treated by authorities.
The various informal traders affiliated to the Zimbabwe Chamber of Informal Economy Association (ZCIEA) addressed the media in Bulawayo last week.
President of ZICHEA, Lorraine Sibanda said:
Do not criminalize our work, after all, we feel let down by ruling party after July 30 elections, now we want a clear policy on informal work.
We thought that for a moment everything is going to be well for us but now we are the most to suffer from the US dollar ban.
Sibanda also bemoaned the government’s failure to engage vendors before the abolition of the multi-currency regime.
She said:
We are in a state of confusion about the government’s move to ditch multi-currency use, I will not claim to know about how we, as informal economy traders going to move from here but my thinking is whenever there is change, there is a need for engagement and dialogue before a bombshell dropping on citizens.-263Chat
By Rumbidzai Madhibha|Delta Corporation has partnered with World Vision Zimbabwe to support families affected by Cyclone Idai which hit the Eastern part of Zimbabwe on March 15, leaving a trail of destruction and over 300 people dead.
The devastating natural disaster to ever occur in Zimbabwe and caused widespread damage stirred the hearts of many corporate leaders and individuals to support communities affected by Cyclone Idai.
In an interview with ZimEye, World Vision Zimbabwe Communications Manager Andrew Shamu said:
“As part of the 30-day Response Strategy, World Vision has partnered with Delta Corporation to provide support for households in Chipinge and Chimanimani which are two of the most affected areas.
“Delta Corporations’ generous donation of US$ 130, 000 has helped to provide these communities with access to water, hygiene and sanitation support.
The interventions included repairing of boreholes in schools and communities and disinfecting existing water points in communities and schools.”
World Vision also prioritized the production and distribution of Information, Education Communication (IEC) materials and re-orientation of Village Health Workers on Participatory Health and Hygiene Education (PHHE), especially on point-of-use water treatment.
With a sustained presence in Chimanimani since 2007, World Vision Zimbabwe is one of the leading development partners that is transforming communities through long term development initiatives in the areas of Water and Sanitation, Livelihoods, Health and Nutrition, Education, and Child Protection.
In Chimanimani, World Vision has funds committed for asset-based community development srretching up to 2032, guaranteeing the sustainability of all investments.
Interventions are spread over 11 out of the 24 Wards in the District, reaching out to most of the most vulnerable areas in the District.
In response to Cyclone Idai, World Vision recently launched its early recovery programming which also includes immediate and long term interventions.
Spokesperson of the National Patriotic Front (NPF), Jealousy Mawarire sensationally claimed that the decision to reintroduce the Zimbabwe Dollar was not made by the Presidential Advisory Council (PAC) and not by Cabinet or Finance and Development Minister Mthuli Ncube.
Mawarire alleged that the decision was made by the Presidential Advisory Council on Sunday 23 June.
He said:
Am reliably informed the decision to reintroduce Zim$ was pressured on ED’s junta govt, thru PAC, by the IMF team which came in to assess the Staff Monitored Program. The team wasn’t impressed by the drastic rate at which RTGS$ was losing value both on parallel & interbank markets.
Attempts at exchange rate stabilisation were then promulgated by PAC, based on, inter alia (a)Intro of Z$ (b) Dialogue involving @nelsonchamisa (c)Injection of US$600m to enable RBZ & banks to partly settle historical (Pre Feb 22) invoices at 1:1. The invoices amount to US1.2bn.
The decision to reintroduce the Zim$ was then made by PAC on Sunday 23 June 2019 without Mthuli Ncube, cabinet or parliament approval. PAC then recommended that in order for the Zim$ reintroduction to work, President Mnangagwa should, immediately, dialogue with @nelsonchamisa.
It comes as no surprise that the most sycophantic social media supporters of the Zim$ reintroduction are Trevor Ncube, Shingi Munyeza & Busisa Moyo, PAC members active on Twitter. Trevor Ncube also used his NewsDay Zimbabwe to announce that ED was prepared to meet Chamisa.
The envisaged dialogue between President Mnangagwa & Nelson Chamisa hasn’t been, curiously, ridiculed by people like Trevor Ncube despite his very public disdain 4 the youthful MDC leader. Instead, Ncube has used his papers to subtly advocate 4 the dialogue, a PAC obligation he has to execute
By Own Correspondent- President Emmerson Mnangagwa’s junior, Vice President Constantino Chiwenga has reportedly been flown to South Africa for medical attention.
Sources privy to the developments said Chiwenga was flown to South Africa on June 23. He has not seen in public for over a month now.
He was airlifted to India for treatment last month, which was the second time he had been to the Asian subcontinent this year.
The cause of his illness has remained a mystery as the Chiwengas have preferred to keep the issue under wraps revealing that they are suffering from an unnamed ailment.
However, there are reports suggesting that VP Chiwenga was poisoned although details regarding the issue have also not been confirmed.
VP Chiwenga was on 18 June appointed the Acting President when President Emmerson Mnangagwa left the country for Mozambique.
However, the former army commander was not at the airport to see off the President. Even on President Mnangagwa’s return, the VP was also absent.
Chiwenga is reportedly in a critical condition and has changed physically.
By A Correspondent- The Zimbabwe Congress of Trade Unions (ZCTU) has said that protests are ongoing despite threats by the government.
ZCTU president, Peter Mutasa said while trade union leaders’ lives were at risk, that there is no kind of threat that would deter them from protesting against the ban on the multicurrency system by president Emmerson Mnangagwa’s regime.
This came after the government, through Statutory Instrument 142 of 2019, banned the use of all foreign currencies for domestic transactions.
Last week, ZCTU leaders gave Mnangagwa’s government up to tomorrow to reverse the SI saying their members would take to the streets if the powers-that-be do not capitulate. Speaking to the Daily News, a defiant ZCTU president Peter Mutasa said:
Trade union leaders are not safe currently considering the arrests and reported abductions. I don’t feel secure also but what can I do? Our lives are in the hands of the Lord, He decides whether I live or not.
Zimbabwe is the only country we have and we are carrying out a legitimate function that is provided for at law. Strikes are also guaranteed in the Constitution.
The ZCTU boss bemoaned the deterioration in living standards of citizens as a result of the soaring inflation. He added that any responsible government would not brutalise citizens for raising genuine concerns.
ZANU PF political commissar, Victor Matemadanda, responded to Mutasa’s remarks and said that security personnel will be ready to deal with any violent protest. He said that everyone had a right to demonstrate peacefully.
Economic Freedom Fighters (EFF) leader Julius Malema was confronted at a press conference in Braamfontein on his recent defence of the party’s secretary general, Godrich Gardee, after a video emerged showing him involved in a fist-fight at the party’s headquarters last year.
At a June 16 lecture at the University of Fort Hare, Malema defended Gardee, saying he was “performing his revolutionary duty” and that he would have done worse himself.
“In terms of the video, I reiterate, I would have done worse. Those who have served with me know that I do not take any nonsense,” he responded on Tuesday afternoon when questioned at the presser.
“Any one who comes here who wants to threaten the peace of this nerve centre of the revolution is not welcomed. Our constitution says we will use any means necessary to protect the revolution.
“For the revolution we do anything. If you are a member and you do not like it, go join ACDP.
“Our members know that what the [secretary general] did is consistent with what the leadership of the EFF would have required when the headquarters are put under threat,” Malema said.
He then justified his party’s use of violence under certain circumstances.
“We must define the EFF’s morality and not the white man’s imposed morality on what the revolution should be,” he began.
“Where there is a need to use violence, to stop violence; we will do it. We never start violence, we are always provoked,” he continued.
In June, CCTV footage of the fist fight was widely circulated. The video footage turned out to be from July 11, 2018.
News24 reports that the individual that Gardee is seen fighting with is a former EFF member and that some have linked the scuffle to divisions within the party’s students command.
It was reported that Gardee defended his actions by saying that Abednego “Msholozi” Mathole was being provocative because he had been declared persona non-grata at the party’s premises.
Gardee reportedly said that people would reach their own conclusions because the video footage did not have audio and so they would not know what had transpired.
The EFF SG reportedly did not want to give clarity on the issue and was quoted as saying “silence is golden”.
The Zimbabwe Republic Police has reacted to serious allegations that Prophet Walter Magaya sexually abused a young female congregant and impregnated her.
This follows a wide ZimEye.com exclusive coverage of the parents accusing Magaya of abusing their daughter since last week.
There was an unprecedented plot twist in the matter when the alleged victim came out in a video dismissing the allegations against Magaya and denied that she was abused.
The police had this to say
The ZRP is concerned with unconfirmed reports of young girls and women being abused by some traditional healers, prophets, church leaders and lecturers.”
“Members of the public are therefore urged to report these cases without delay for the law to take its course.”
The police further urged victims to report cases at the victim friendly units
By Own Correspondent| South Africa’s power utility, Eskom said that it had received the much-talked-about US$10 million from the Zimbabwe Electricity Supply Authority (ZESA).
In a statement issued on Tuesday (today), Eskom said:
Tuesday, 02 July 2019: Eskom confirms that the payment made by Zimbabwe is reflecting in its account today.
Discussions will continue with the Zimbabwe Electricity Supply Authority (ZESA) to find a mutually beneficial solution to the outstanding debt.
Eskom is a commercial operation and will be guided by the contracts we have in place with ZESA.”
Protesters march against Zimbabwe’s new bond notes as a currency, in Harare, Zimbabwe.
In a surprise turn of events, last week, the Zimbabwe government announced the end of its multi-currency regime after 10 years.
In this edition of Business Day Spotlight, we focus on what this move means for the Southern African state and possible effects on the region.
Our host Mudiwa Gavaza is joined by Tara O’Connor, founder and executive director of Africa Risk Consulting (ARC) — a firm that advises on pre-investment and expansion strategies for countries such as Algeria, Angola, the Democratic Republic of Congo (DRC), Nigeria, SA, Zambia and Zimbabwe; and regions such as East Africa and the franc zone (as a region), among others.
According to the Reserve Bank of Zimbabwe and the country’s finance ministry, the Zimbabwe dollar is now legal tender. Zimbabweans can no longer trade in the US dollar, SA rand, British pound or Botswana pula, as they have done in the past.
Many questions still remain about what this will mean for foreign investment, confidence in the currency, and people’s savings.
The decision comes as the country’s inflation rate has reached as much as 95% month to month, says O’Connor, adding that this was a move in the wrong direction for the country headed by President Emmerson Mnangagwa.
“History is our best teacher,” she says, referring to the hyperinflation and economic turmoil experienced in Zimbabwe over the past two decades.
Zimbabwe’s issues should be the concern of the region as a whole, particularly SA, O’Connor says. A net importer for a number of years, SA is Zimbabwe’s largest trading partner. The country is said to owe embattled power utility Eskom more than R300m for electricity previously supplied.
O’Connor says leaders in the region, such as President Cyril Ramaphosa, may have to take on the role exhibited by former president Mbeki in 2009, who helped bring about a government of national unity in Zimbabwe with the opposition MDC party, which led to five years of economic growth before Zanu-PF took back the reins in 2013.
Listen in to hear thoughts around these and other questions.
Zimbabweans will be allowed to withdraw up to $1000 (about R14000) in cash a day from foreign currency accounts, said Finance Minister Mthuli Ncube yesterday, as the country prepares to relaunch its own currency after a decade of dollarisation.
The surprise announcement will ease fears that the central bank might raid foreign currency accounts, as happened during Robert Mugabe’s rule in 2008. Central bank governor John Mangudya said people and companies in Zimbabwe currently held $1.3billion in foreign currency accounts.
Mangudya told a parliament committee that individuals would be allowed to withdraw up to $1000 a day from their foreign currency accounts without restrictions but that companies would have to talk to their banks if they needed cash dollars.
The southern African nation, whose crops were scorched by a drought this year, is in the grip of foreign currency and fuel shortages and daily electricity cuts lasting up to 15 hours.
President Emmerson Mnangagwa, who replaced long-time leader Mugabe after an army coup in November 2017, is trying to repair an economy ruined by hyperinflation and a long succession of failed economic interventions.
In May, his government agreed a staff-monitored programme with the International Monetary Fund to help Zimbabwe implement coherent economic policies. But a hoped-for turnaround is yet to materialise, and many Zimbabweans are distrustful of Mnangagwa’s promises.
Last week, the government renamed its interim currency, the RTGS dollar, the Zimbabwe dollar and made it the country’s sole legal tender, ending a decade of dollarisation and taking another step towards relaunching a fully-fledged currency.
Mangudya said yesterday that the country would initially print 400million Zimbabwe dollars to be gradually introduced into circulation to plug the gap left by the end of dollarisation.
Ncube had earlier told the same committee that individuals would be allowed to withdraw US dollars in cash from their foreign currency accounts. He defended the surprise manner of the announcement and promised that Zimbabwe would not fall into money-printing of the kind that caused hyperinflation in 2008.
With inflation close to 100% last month and desperate levels of unemployment, Zimbabweans are impatient for progress but are fearful that abandoning dollarisation will cause a new surge in prices. Unions are threatening strikes if Mnangagwa’s government does not overturn the policy.
Zimbabwe Congress of Trade Union, (ZCTU) president Peter Mutasa
Zimbabwe workers have vowed to continue fighting to be paid in United States dollars despite a government move to outlaw multi-currency regime which effectively ended the official use of the greenback in the country.
Zimbabwe Congress of Trade Union, (ZCTU) president Peter Mutasa accused the government of repeatedly lying to the nation citing Finance Minister Professor Mthuli Ncube’s assurance that the Zimbabwean dollar will only be issued once macro-economic fundamentals are in place.
“Before banning the US dollar, Mthuli had assured the nation a day before that the Zimbabwean dollar will only be introduced when macro-economic fundamentals are in place.
“The government has been taking its people for granted for quite some time now, when it introduced bond notes in 2016 that they were adequately backed by lines of credit from the AFREXIM Bank,” said Mutasa.
“Clearly in all records, the working people of Zimbabwe have lost substantial value in their earnings as they work in the fast depreciating RTGS,” said Mutasa.
The combative trade unionist vowed to proceed with the demand for workers to be remunerated in US dollars saying the Statutory Instrument 142 of 2019 will not be an impediment to their push for better working conditions.
The scrapping of the multi-currency regime by government is widely believed to have been a calculated move to pre-empty civil servants’ demand for US dollar salaries, something the Finance minister Prof Ncube openly said was unsustainable.
Yesterday, Reserve Bank of Zimbabwe Governor Dr John Mangudya told the parliamentary committee on Finance and Economic Development that the multi-currency regime had outlived its purpose and was responsible for the economic problems currently facing the country.
POWER utility Zesa could soon embark on massive disconnections in an effort to recover over $1,2 billion owed to it by defaulting customers, most of whom are Cabinet ministers and top civil servants.
Energy minister Fortune Chasi has called on Zesa to cut its loses and start switching off all those who are failing to settle bills as the nation plunges into darkness owing to a critical electricity shortage.
“Zesa has a legal obligation to cut its loses, it cannot continue to supply power to people who do not pay. Switching off not paying customers is a real option, be warned, this is regardless of what or who you are,” Chasi said on Twitter.
The warning from Chasi comes amid revelations that government ministers and many top Zanu PF leaders owe Zesa large sums of money.
The power utility has been unable to recover debts from the ministers, government institutions and farms owned by high level party members resultantly forcing Zesa to default on its own debts with Mozambique and South Africa power utilities.
Zimbabwe owes close to US$80 million to both South Africa and Mozambique, who have since cut off power supplies to the country, leaving the nation to endure prolonged hours of load-shedding.
Zesa spokesperson Fullard Gwasira said the minister was the principal who administers the power utility and his word was final.
“If the minister says it, we will implement. Zesa is a parastatal administered by the minister, he is the principal so if he speaks we implement,” he said.
Gwasira said he was unable to comment on how the disconnections will be conducted, referring further questions to the minister.
“That information will be best answered by the person who said it. It will be unfair for you to ask me that question,” he said.
Simba Nhivi and Godknows Murwira are this week expected to return to Dynamos as the club seeks to strengthen after a poor start to the season.
Nhivi is a free agent after being released by Ngezi Platinum Stars over allegations of inciting other players to strike for an adjustment to their salaries and bonuses.
Murwira is pushing for an exit from FC Platinum after failing to nail a starting berth since moving there at the end of last year. He has spent most of the time either on the bench or on the terraces.
The Platinum Boys are, however, reluctant to let him go but the player is pushing hard and a breakthrough is most likely to be made this week as negotiations between the two clubs are going on.
Forgotten midfielder Archford Gutu has already completed his return to Dembare and is expected to commence training this week together with Nhivi and Murwira.
Meanwhile, Dynamos coach Tonderai Ndiraya has been lamenting lack of quality and experience in the squad which was assembled by his predecessor Lloyd Chigowe who was sacked after taking charge of just three league games.Soccer24Zimbabwe
Farai Dziva|Former ZBC presenter Ezra Tshisa Sibanda has accused “junior army officers of disrespecting the late nationalist Joshua Nkomo.”
Pictures of soldiers- seemingly making awkward gestures at Father Zimbabwe’s grave- have gone viral on social media.
An irate Sibanda said: ” Who are these low people mocking and standing on the tombstone of the Great Founding Father of our nation, Joshua Mqabuko Nyongolo Nkomo?
This is meant to be a museum and should be accessible to the general public and tourists but remains a no go area.
Please help identify these disrespectful clowns and hopefully authorities will take action.”
By A Correspondent- The acting general manager of the government drugs supplier, the National Pharmaceutical Company (NatPharm), has been freed on bail pending appeal after he was jailed for raising the prices of drugs.
Justice Moses Foroma of the Harare High Court said Newman Madzikwa, jailed by a magistrate for an effective 14 months last week, had good prospects of success with his appeal against both conviction and sentence as he freed him on ZW$1,000 bail.
Madzikwa was convicted of criminal abuse of office by Harare magistrate Hosea Mujaya for hiking drug handling fees from four percent to 15 percent.
As part of his bail conditions, Madzikwa was ordered to report to the police every Friday and surrender his passport.
Madzikwa maintained during his trial that the decision to raise the cost of handling medicines on behalf of government hospitals and dispensaries had board approval.
But his trial magistrate labelled his decision a “bad crime” and “corruption”. Madzikwa is represented by Harare lawyer, Harrison Nkomo.
Farai Dziva|Government sources who claim to be close to ailing Constantino Chiwenga say the former army general was poisoned through water.
Chiwenga is said to be battling for his life at a South African hospital.
Government sources say Chiwenga who is now unrecognisable is critically ill.
Government sources further revealed Chiwenga was poisoned using radioactive Polonium-210.
“Chiwenga was poisoned through water that was delivered to his luxurious mansion in Borrowdale.
Due to the difficulty of drilling boreholes at the mansion’s hilltop location, the VP’s house was previously serviced by water bowsers and bottled water.
He (Chiwenga) is in a major fight for his life.
He has told those close to him that he believes he was poisoned through water delivered to his home.”
By Own Correspondent- The Zimbabwe Congress of Trade Unions (ZCTU) says that it will continue agitating for workers to be paid their salaries in US dollars.
The labour body made the call despite the fact that the government recently outlawed the use of the multi-currency system in domestic transactions.
ZCTU president Peter Mutasa said that the government of Zimbabwe has been taking workers for granted for a long time.
He said:
Before banning the US dollar, Mthuli had assured the nation a day before that the Zimbabwean dollar will only be introduced when macro-economic fundamentals are in place.
The government has been taking its people for granted for quite some time now when it introduced bond notes in 2016 that they were adequately backed by lines of credit from the AFREXIM Bank.
Clearly, in all records, the working people of Zimbabwe have lost substantial value in their earnings as they work in the fast depreciating RTGS.
The government last week promulgated Statutory Instrument 142 of 2019 which banned the multi-currency regime while at the same time reintroducing the Zimbabwe Dollar.
The move was met with mixed reactions with some sections of society viewing it as a stroke of genius while in some quarters it set the country on the path towards the 2008 scenario.
By Own Correspondent- Spokesperson of the National Patriotic Front (NPF), Jealousy Mawarire sensationally claimed that the decision to reintroduce the Zimbabwe Dollar was not made by the Cabinet or Finance and Development Minister Mthuli Ncube.
The Robert Mugabe-linked party spokesperson said that the decision was made by the Presidential Advisory Council (PAC) on Sunday 23 June.
Said Mawarire:
“Am reliably informed the decision to reintroduce Zim$ was pressured on ED’s junta govt, thru PAC, by the IMF team which came in to assess the Staff Monitored Program. The team wasn’t impressed by the drastic rate at which RTGS$ was losing value both on parallel & interbank markets.
Attempts at exchange rate stabilisation were then promulgated by PAC, based on, inter alia (a)Intro of Z$ (b) Dialogue involving @nelsonchamisa (c)Injection of US$600m to enable RBZ & banks to partly settle historical (Pre Feb 22) invoices at 1:1. The invoices amount to US1.2bn.
The decision to reintroduce the Zim$ was then made by PAC on Sunday 23 June 2019 without Mthuli Ncube, cabinet or parliament approval. PAC then recommended that in order for the Zim$ reintroduction to work, President Mnangagwa should, immediately, dialogue with @nelsonchamisa.
It comes as no surprise that the most sycophantic social media supporters of the Zim$ reintroduction are Trevor Ncube, Shingi Munyeza & Busisa Moyo, PAC members active on Twitter. Trevor Ncube also used his NewsDay Zimbabwe to announce that ED was prepared to meet Chamisa.
The envisaged dialogue between President Mnangagwa & Nelson Chamisa hasn’t been, curiously, ridiculed by people like Trevor Ncube despite his very public disdain 4 the youthful MDC leader. Instead, Ncube has used his papers to subtly advocate 4 the dialogue, a PAC obligation he has to execute.”
The cruelty that is inherent to this ominous threat is inimical to the rule of law and to the social democracy that Mnangagwa has repeatedly claimed to the world defines his so-called new dispensation & reform agenda. The gukurahundi-like threat is unpresidential & unlawful! pic.twitter.com/PUI33qxTtn
By Own Correspondent- The Zimbabwe Congress of Trade Unions (ZCTU) on Monday said that protests are ongoing despite threats by the government.
ZCTU president, Peter Mutasa said that there is no kind of threat that would deter them from protesting against the ban on the multicurrency system by president Emmerson Mnangagwa’s regime.
This came after the government, through Statutory Instrument 142 of 2019, banned the use of all foreign currencies for domestic transactions.
Last week, ZCTU leaders gave Mnangagwa’s government up to tomorrow to reverse the SI saying their members would take to the streets if the powers-that-be do not capitulate.
Speaking to the Daily News, a defiant ZCTU president Peter Mutasa said:
Trade union leaders are not safe currently considering the arrests and reported abductions. I don’t feel secure also but what can I do? Our lives are in the hands of the Lord, He decides whether I live or not.
Zimbabwe is the only country we have and we are carrying out a legitimate function that is provided for at law. Strikes are also guaranteed in the Constitution.
The ZCTU boss bemoaned the deterioration in living standards of citizens as a result of the soaring inflation. He added that any responsible government would not brutalise citizens for raising genuine concerns.
ZANU PF political commissar, Victor Matemadanda, responded to Mutasa’s remarks and said that security personnel will be ready to deal with any violent protest. He said that everyone had a right to demonstrate peacefully.
By Own Correspondent-NetOne’s managing director for the Mobile Financial Services (MFS) unit Nkosinathi Ncube has resigned with immediate effect.
Ncube reportedly left the State-owned Mobile Network Operator (MNO) on Tuesday (today). However, the reasons for his resignation have not yet been confirmed.
The publication was told that Ncube handed in his resignation letter this week.
Said a source:
Mr Ncube tendered his resignation this week.
As we speak, Mr Ncube’s credentials have been disabled by the IT guys today a few hours ago including all passwords and staff line and he is no longer an employee of NetOne.
Netone Corporate Services and Marketing executive Dr Eldrette Shereni was not reachable for comment as her mobile phone was unreachable.
Farai Dziva|Warriors captain Knowledge Musona is now weighing options regarding his international future following Zimbabwe’s disappointing campaign at the 2019 AFCON Tournament.
The national side made an early exit from the tournament, blowing off the opportunity to advance to the knockout stages in their final Group A game against DRC on Sunday.
The team lost 4-0 to record their worst Afcon defeat ever.
Musona had hoped to use the tournament to improve his wanning form following a difficult debut season at Anderlecht.
According to The Herald, the skipper had seen his Warriors future stretching far beyond, but after the Afcon adventure, the 29-year old now thinks he has some tough decisions to make before the start of the 2022 World Cup qualifiers in September.
“The last time I said I am likely to be around for about 10 more years, well, things have changed and we will see in the coming days,’’ he said.
Farai Dziva|MDC leader Nelson Chamisa is in Highfields, Harare to assess the plight of the residents in the area.
“At a Borehole …I’m in the townships ..In Highfields to listen to people’s life stories and assess their living conditions.
Zimbabweans are suffering.We must together end this,” tweeted Chamisa.
Chamisa is seen in a video footage helping residents (to) pump out water from a borehole.See video:
At a Borehole …I’m in the townships ..In Highfields to listen to people’s life stories and assess their living conditions.Zimbabweans are suffering.We must Together end this! pic.twitter.com/IvKh3PYJWZ
Full text of the statement by the Zimbabwe Republic Police:
Members of the public should feel free to move from one place to another as police are providing adequate security to business, schools, colleges and residential areas.
In the same vein, supermarkets and shops are implored to display commodity prices in order to allow.members of the public to access goods and services in an environment which gives them room to plan, coordinate and buy the items freely without any form of manipulation by unscrupulous dealers.
The ZRP warns all those who are charging commodities in United States dollars that they risk being arrested as the law will be applied without fear or favour.
Members of the public should report such people to any nearest police station or the National Complaints Desk on telephone numbers 0242-703631 or WhatsApp number 0712800197
By Own Correspondent- Opposition leader Nelson Chamisa (Tuesday) brought the high density suburbs of Highfield and Glen Norah to a standstill as he toured retail and wholesale shops across the capital assessing the prices of basic commodities.
Chamisa went to OK Machipisa and OK Glen Norah bringing the townships to a standstill as people jostled to get a glimpse of the “People’s President”.
Said Chamisa:
At a Borehole …I’m in the townships ..In Highfields to listen to people’s life stories and assess their living conditions.Zimbabweans are suffering.We must Together end this! pic.twitter.com/IvKh3PYJWZ
Farai Dziva|The Castle Lager Premier Soccer League action returns this weekend in Match-day 13 following a two-week breather.
Six games are scheduled for Saturday with the encounter between Ngezi Platinum Stars and Highlanders being the major highlight of the round.
The tie will see Ngezi coach Erol Akbay facing his former club for the first time since returning to Zimbabwe.
Here are the Match-day 13 Fixtures:
Saturday, July 6
Ngezi Platinum Stars vs Highlanders (Baobab Stadium)
ZPC Kariba vs CAPS United (Nyamhunga Stadium)
FC Platinum vs Manica Diamonds (Mandava Stadium)
Chicken Inn vs Mushowani Stars (Luveve Stadium)
Yadah vs Black Rhinos (Rufaro Stadium)
Herentals vs Triangle United (NSS)
Sunday, July 7
Dynamos vs Chapungu (Rufaro Stadium)
Hwange vs Bulawayo Chiefs (Colliery Stadium)
TelOne vs Harare City (Luveve Stadium)
By Own Correspondent- President Emmerson Mnangagwa has said government was not aware that the Zimbabwe National Road Administration (ZINARA) generates lots of revenue revealing that government was however not aware of where the generated income was being “taken to”.
Addressing delegates at the commissioning of the Ngundu- Tanganda highway, Mnangagwa said:
“We have a department called Zinara, which is under (Transport and Infrastructural Development) Minister (Joel) Matiza. When Minister Matiza was appointed to the ministry, he found Zinara in place.
All along we did not know that Zinara generates lots of revenue. We wonder where the money was going. We have resolved that money from tollgates must rehabilitate roads. As we speak, roads in all provinces are being rehabilitated by Zinara.
We asked them in all these years where was the revenue generated by Zinara going but we did not get any satisfactory response. No response, tonhooo! We will, however, not live in the past. We look forward. We are keeping our eyes on all money generated by parastatals.
It is not Zinara alone. There are other companies I will not mention. We are keeping an eye on them to see how they are using funds.”
Farai Dziva| Seasoned Warriors coach Sunday Chidzambwa has accepted the blame following the team’s exit from 2019 AFCON Tournament.
Zimbabwe suffered a humiliating 4-0 defeat to DRC on Sunday which blew away their prospects of reaching the knockout stages of the tournament for the first time.
Speaking on the Sunday’s result, Chidzambwa admitted that the technical team needs to adopt a different approach on selecting the players next time.
“If you look at our game, we were very slow. So there was that element and we were chasing the game and couldn’t come back.
“I take the blame and maybe in the near future we need a different approach. The players we picked must deliver, so we take the blame,” Chidzambwa said.
Farai Dziva|MDC youth assembly chairperson Obey Sithole has said members of party’s youth wing who were involved in an accident are safe and out of danger.
In a statement Sithole said:”Thank you for your concern and prayers. I can confirm that we were involved in an accident this evening(last night)
We were travelling from Kadoma to Harare when our vehicle was hit by an oncoming vehicle and veered off the road.
We remain grateful to the Almighty for saving us from the worst. I was travelling with 2IC, Cecilia; Sarkozy the Mouthpiece; Mafaiti and Air Marshal Beni. No serious injuries have been recorded but the vehicle is badly damaged.”
“Hard and honest work will give you respect today and tomorrow and after your death you will be remembered for being a hard working Zimbabwean who was honest.”
He urged citizens to report cases of corruption to the police.
Farai Dziva| Emmerson Mnangagwa yesterday used the liberation war maxim “pasi navo” to denounce those plotting to stage mass protests.
However political analysts feel the maxim should not be used in the so called new dispensation.
Addressing hundreds of villagers who converged at Kondo Primary School to witness him officially opening the rehabilitated Tanganda-Ngundu Highway, Mnangagwa said demonstrations and stay aways “do not bring any benefit.”
He said focus by all must be on developing the country as demonstrated by the commissioning of the Tanganda-Ngundu Highway, instead of wasting energy on negativity.
“For those with mobile phones, they were saying today (yesterday) you should stay away, stay away.
Stay away yokudii? Muchigara kuitira ani? Anozotambura ndiani kana mukasasevenza?,” said Mnangagwa.
“Anozotambura marega ndiani nekuti shoko raJehovha rinoti iro nokutadza kwamaita kudya muchero uyu muchararama necheziya. Zvino umwe woti iye aiwa ngatiregei kushanda. Ko tozodyei kana tisingashande?
Saka musaterera mhesva mukono idzi dzinopihwa mari nevanhu varikunze, dzinopihwa mari nevanhu vagere ku South Africa uko vatinoziva vamwe ma criminals akatiza muno varikutsvaga mari kuti kuve nemhirizhonga mukati menyika ivo vagere vachiplanner varimumahotera. Pasi navo! Saka hakuna stay away,” added Mnangagwa.
Farai Dziva|Transform Zimbabwe leader Jacob Ngarivhume has accused Emmerson Mnangagwa’s government of “robbing citizens in broad daylight.”
See Ngarivhume’s statement on the ban on the use of the United States dollar as legal tender in Zimbabwe:
A single currency is not wrong but the finance Minister just applied a bandage on a septic wound without any anti-biotics. Issues that led to the multi currency were not addressed and that ommission will fertilise the local currency and promote it to hyper inflation and empty shops.
The government through its reckless expenditures which include hiring expensive jets for ED, purchasing fancy vehicles for officials and purchasing useless USD$1000 police uniforms, has drained the foreign reserves it had access to.
Because Zim is currently an unproductive nation, there is no export earnings or capital inflows into the nation, which means real forex supply is dropping by the minute. The only forex flowing into the nation is in the form of remittances by friends and relatives to their loved ones in the nation.
Whether you do it through the blackmarket or bank is of no consequence, either way, one way or the other the money will end up in their hands.
They will harvest every single forex in the nation to fund their reckless and impulsive expenditures.
Because this policy was so abrupt, panic and fear caused the unsuspecting and stranded citizens to sell their forex to meet their day to day expenses, which by laws of supply and demand naturally caused the exchange rate to drop. But this is only temporary, a mere calm before the storm. The real effects are yet to be seen.
The main reason business were now transacting in USD is to simplify their access to forex which is essential for their sole survival as it enables them to meet their international obligations which include paying their suppliers for raw materials and in the case of shops, purchasing new stock to meet their customers demands.
With this new law, the government has created a serious bottleneck in the businesses access to forex, which will sooner rather than later reflect in the businesses performance.
The businesses demand for forex will not decrease by being forced to sell in Zim dollars, they will still demand forex to purchase new stock and raw materials.
In addition, though the Zimbabwe Dollar may work as a means of exchange and unit of account as a currency should, the Zim Dollar fails miserably on the 3rd and most important function of money which is being a good STORE OF VALUE.
This alone means that even after business transactions, a business or person who wishes to preserve his/her real income will do so in a currency which is a good STORE OF VALUE, and in Zimbabwe this can only be done through forex.
So forex will continue to be on demand, but because of the new law it will be in much lesser supply than it was. The RBZ will not be able to meet the forex demands of business as is already the case, which will leave the blackmarket as the only source.
All these factors coupled with the laws of demand and supply will sooner rather than later see exchange rate rising way highier than they were before. The foreign exchange blackmarket will grow, and there will be no limit in the rise of the exchange rate.
Businesses that shall fail to meet the blackmarket rates to purchase sufficient forex for continued business operation shall soon find themselves out of business, which raises risk for chronic shortage of essential commodities within the nation.
Our advice to the nation in this light is to hold on to your forex if you can. Change only that which is necessary for your immediate need and preserve the rest. Families should also gather as much household basic commodities as their resources permit to guard against the looming shortages. If possible, for those with access to diasporan remittances, it is even better to have part of the money to be sent in form of basic food stuff and toiletries.
In conclusion, the failure of Zimbabwe is the failure of leadership. The short sightedness of this regime will land Zimbabwe in a greater economic quagmire than we have now. Nothing positive can be genuinely expected of this policy for the people of Zimbabwe.
By Victor Bhoroma| As the country enters the last half of the year and warms up to the re-introduction of the Zimbabwean Dollar, it is now evident that the economy is swiftly sliding into a recession. In 2018, the economy grew by an estimated 4%, driven by growth in agriculture, mining and record exports of commodities. The current year started on a grim note with January inflation hitting 56.9% before expanding to 97.9% in May 2019. The June inflation figure will eclipse 100% to confirm the re-admission of the local economy into the recession mode for the first time since 2008. The International Monitory Fund (IMF) predicted that Zimbabwe’s economy will contract by 5.2% before revising the figure to 2.1% in line with the deliverables in the Staff Monitoring Programme (SMP). The World Bank points that the Zimbabwean economy is now in recession and will shrink by 3.1% in 2019. The major constraints for the economy emanate from structural challenges in governance being met in implementing economic reforms, hyperinflation, foreign currency liquidity shortages, power outages, political instability and the prevailing drought among others.
A recession
is a significant decline in economic activity spread across the entire economy,
lasting more than a few months and normally visible with a drop in Gross
Domestic Product (GDP), real income,
consumer demand, employment, industrial production and company closures.
The symptoms of a recession in Zimbabwe have mainly been visible on loss
of value for the local currency which affects real incomes for labour and
businesses. The Zimbabwean Dollar (Formerly RTGS Dollar) has lost more than
150% of its value since the interbank market was launched in February 2019. The
average civil service salaries have gone below US $80.00 (using prevailing interbank
rates) and below US $35.00 if the black market rates are used. The same applies
for wages in the private sector and business earnings for local producers. Company
closures have also started to creep in with massive industrial layoffs, though
the major push factor there has been foreign currency shortages and power cuts.
Industrial capacity utilization has declined to less than 40% and may end the
year at about 35% if those two production factors are not addressed.
Zimbabwe’s last recession cycle was from the year 2000 to 2008 where the local
economy contracted at an average of 7.41% in each year. The period saw massive
de-industrialization, company closures, foreign investor flight, job losses,
decline in agricultural productivity and rise in poverty levels. The economy
bounced back to growth in 2009 after the introduction of the US Dollar which
stabilized inflation, boosted private sector investment and cut the central
bank print run which was responsible for fueling inflation. However the local
industry had lost competitiveness due to de-industrialization, decline in
agricultural production, obsolete equipment and lack of capital to retool. The
local industry has not been competitive in the region largely because of those
key constraints. However the key take outs from the 2009-2013 record growth
cycle is that confidence, political stability and prudent public funds
management are key to the growth of the local economy. Zimbabwe’s economy grew
by an average of 10% between 2009 and 2013.
On the 24 of June 2019, the Zimbabwean government gazetted a new
regulation that outlaws the charging of multiple currencies for local goods and
services while re-introducing the Zimbabwean Dollar, parked since 2008. The
return of the Zimbabwean Dollar through the gazetting of Statutory Instrument
142 of 2019 might be a positive aspect for the local industry provided the
foreign currency to import raw materials is available on the interbank market
or local banks access foreign currency to oil their Nostro accounts. Now that
the country has an official local currency, banks can now trade currencies on
the international platform with limited central bank control. However failure
to secure foreign currency for local producers might lead to empty shelves and
production stoppages. The informal market will therefore remain very relevant
as goods in short supply in the shops can be found on the black market for any
currency the traders deem fit. Even though the Zimbabwean Dollar is the legal
tender, SI 142 does not state any penalties for trading in multiple currencies
or criminalize those found in possession of foreign currencies. Strict
enforcement of the local currency through price controls will lead to market shortages
for all imported commodities especially medicine, basic foodstuff and
industrial equipment. The government is likely not going to temper with price
controls.
Black market activities and runaway inflation are not likely to be cooled
by the return of the Zimbabwean Dollar in the long term as fears of rampant
money printing by RBZ are high. The USD and South African Rand will remain very
vital for informal trade, savings and property disposals as sellers will likely
adopt a wait and see attitude in the coming weeks. Foreign currency will now be
traded illegally in dark corners at high premiums.
The much hyped FCA account will remain relevant for industrial importers
mainly. Non-Governmental Organizations (NGOs), foreign embassies and corporates
that transacted using FCA transfers will no longer be able to do so. Foreign
currency deposits with local banks will definitely take a knock going into end
of year. Similarly all labour costs will be settled in a local currency unless
if the central bank specifies otherwise. Foreign currency remittances are most
likely going to be treated as free funds to ensure the remittances corridor is
left open and International Money Transfer (IMT) agencies can import US Dollars
into Zimbabwe.
In terms of the value for
the Zimbabwean Dollar, the government has no absolute control on that front.
The value of the local currency will depend on securing reserves to back the
fiat currency, liquidity levels on the interbank market, confidence levels in
the economy and government itself, export and import parity (current account
position), inflation levels and general economic performance. Currently all
these fundamental necessities are not positive, therefore the value of the
Zimbabwean Dollar is likely to plummet against major world currencies. After
assessing the government’s currency reforms, it is clear that the introduction
of the Zimbabwean Dollar was necessitated by the government’s need to have control
on money printing in the local economy. The slide into dollarization took this
key function away from the central bank. The central bank also wants
flexibility in paying local debt and responding to government expenditure demands
for economic intervention.
Major constraints remain
the economy with key gaps in supplies of fuel, maize, soya and wheat; foreign
currency shortages on the interbank market; power cuts; confidence deficit and production
bottlenecks. Inflation still remains the country’s number one enemy and
managing it remains the key performance indicator for treasury and central bank
authorities. Exports will be slightly below the $4.23 billion mark achieved in
2018 due to foreign currency retention outcries from key producers such as
tobacco farmers and miners. The IMF monitored Staff Monitoring Programme (SMP) remains
key in cutting government expenditure, curtailing borrowing locally or offshore
and restructuring of State Enterprises and Parastatals (SEPs). Though the
agreements in the program are now under threat from civil service salary hikes.
Civil servants are likely going to get 50 to 100% increments in the next month
though their satisfaction will largely be determined by the inflation rate.
Victor Bhoroma is business
and economic analyst. He is a marketer by profession and holds an MBA from the
University of Zimbabwe (UZ). For feedback, mail him on [email protected] or alternatively follow
him on Twitter @VictorBhoroma1.
Some MDC Alliance councillors in Marondera are reportedly illegally selling residential stands in Hunyani Timberlands to unsuspecting home-seekers, sources have said.
This paper is reliably informed that the councillors are collecting money from people, promising to give them residential stands in Hunyani Timberlands, the same piece of land that is currently being eyed by an investor who is set to construct 17 000 housing units once the deal is approved by Cabinet.
According to a reliable source, the MDC Alliance leadership in Marondera has been notified of the actions by some of its councillors.
“The party leadership was notified of the actions by some of the councillors who are collecting various amounts of money from residents on the pretext that there will be stands in Hunyani Timberlands. The leaders in Marondera are seized with the matter and have since warned the culprits,” said the source.
Marondera district MDC Alliance spokesperson Farai Nyandoro said it was a criminal for councillors to collect money from home-seekers.
“I am not sure as to the authenticity of the claim or allegation of such rumours. It is, however, a criminal act for any councillor to go about collecting money from desperate home- seekers as councillors are not council employees,” he said.
Marondera mayor Chengetai Murowa yesterday blamed individuals who he said were there to tarnish the image of the councillors.
“We are a law abiding party, whoever is doing it must be dealt with according to the law. I don’t think there are councillors doing that, but individuals who want to tarnish the councillors. There are some wayward individuals misleading the general public and I want to tell the public not to give money to anyone, but to council and be on the waiting list. We are not a mafia council, but a local authority which respects the rule of law,” Murowa said.
The illegal land dealings hardly after another scam that left thousands of home-seekers duped after being promised stands in 2015 during Zanu PF campaigns.
The residents parted with $1 500 for the stands in Elmswood and up to date none have been delivered. Some of the victims have on numerous occasions threatened to invade and allocate themselves land at Hunyani Timberlands.
By Own Correspondent- PRESIDENT Mnangagwa yesterday officially opened the US$20 million rehabilitated Ngundu-Tanganda highway, in a development expected to spur economic activity.
The road, which was badly damaged due to years of neglect, links Manicaland and Masvingo provinces via Chiredzi.
The road also links the Eastern Highlands to South Africa, Zimbabwe’s major trading partner.
President Mnangagwa noted that the road had fallen into a state of disrepair.
“I remember when the new administration took over we were told by then Minister of State for Manicaland Provincial Affairs Monica Mutsvangwa that a number of accidents were occurring here. We were told a section of the highway had become a black spot. We ordered that the area be rehabilitated. It was rehabilitated under Phase One. After the rehabilitation of that phase we continued to record accidents along this highway,” said the President.
He said resource constraints delayed the rehabilitation of the road.
“As Government we resolved that we channel the little resources we had towards the rehabilitation of this road in Chipinge. I come here today as your servant and you are my people. I love you all and I do not care about those who do not like me. We have completed this road, but it does not end here. We have other areas that were affected by Cyclone Idai in Chipinge and Chimanimani which need our attention. Roads, bridges and schools were destroyed there,” he said.
Jane Mlambo| Vice President Constantino Chiwenga is reportedly in a critical condition and has been airlifted to South African hospital where he receiving treatment, a ZimEye source has revealed.
Chiwenga who has not been seen in public for over three months now is battling an unknown ailment that has also seen him frequenting Indian hospitals seeking medical attention.
A ZimEye source revealed that the powerful former Zimbabwe National Army commander could have been poisoned though further details on how it happened could not be obtained.
President Emmerson Mnangagwa has warned that he will deal with his corrupt officials in Zanu PF without fear or favor.
Addressing hundreds of villagers who converged at Kondo Primary School in Chipinge to witness him officially opening the rehabilitated Tanganda-Ngundu Highway on Monday, Mnangagwa spoke to recent revelations by ZANU PF youth that some senior ruling party officials were highly corrupt and needed to be kicked out of the party.
“Hard and honest work will give you respect today and tomorrow and after your death you will be remembered for being a hard working Zimbabwean who was honest,” said President Mnangagwa.
He said citizens knew corrupt individuals and must report them to the police.
The ZANU PF youth league last week circulated a list of senior government and party officials they claimed were very corrupt and destroying the country.
Top on the list was ZANU PF Secretary for Administration Obert Mpofu. Mnangagwa has since promised to set up a commission of inquiry into the corruption allegations.
The nation eagerly awaits to see the commission through and action which Mnangagwa will take there after.
By Victor Bhoroma| As the country enters the last half of the year and warms up to the re-introduction of the Zimbabwean Dollar, it is now evident that the economy is swiftly sliding into a recession. In 2018, the economy grew by an estimated 4%, driven by growth in agriculture, mining and record exports of commodities. The current year started on a grim note with January inflation hitting 56.9% before expanding to 97.9% in May 2019. The June inflation figure will eclipse 100% to confirm the re-admission of the local economy into the recession mode for the first time since 2008. The International Monitory Fund (IMF) predicted that Zimbabwe’s economy will contract by 5.2% before revising the figure to 2.1% in line with the deliverables in the Staff Monitoring Programme (SMP). The World Bank points that the Zimbabwean economy is now in recession and will shrink by 3.1% in 2019. The major constraints for the economy emanate from structural challenges in governance being met in implementing economic reforms, hyperinflation, foreign currency liquidity shortages, power outages, political instability and the prevailing drought among others.
A recession is a significant decline in economic activity spread across the entire economy, lasting more than a few months and normally visible with a drop in Gross Domestic Product (GDP), real income, consumer demand, employment, industrial production and company closures.
The symptoms of a recession in Zimbabwe have mainly been visible on loss
of value for the local currency which affects real incomes for labour and
businesses. The Zimbabwean Dollar (Formerly RTGS Dollar) has lost more than
150% of its value since the interbank market was launched in February 2019. The
average civil service salaries have gone below US $80.00 (using prevailing interbank
rates) and below US $35.00 if the black market rates are used. The same applies
for wages in the private sector and business earnings for local producers. Company
closures have also started to creep in with massive industrial layoffs, though
the major push factor there has been foreign currency shortages and power cuts.
Industrial capacity utilization has declined to less than 40% and may end the
year at about 35% if those two production factors are not addressed.
Zimbabwe’s last recession cycle was from the year 2000 to 2008 where the local
economy contracted at an average of 7.41% in each year. The period saw massive
de-industrialization, company closures, foreign investor flight, job losses,
decline in agricultural productivity and rise in poverty levels. The economy
bounced back to growth in 2009 after the introduction of the US Dollar which
stabilized inflation, boosted private sector investment and cut the central
bank print run which was responsible for fueling inflation. However the local
industry had lost competitiveness due to de-industrialization, decline in
agricultural production, obsolete equipment and lack of capital to retool. The
local industry has not been competitive in the region largely because of those
key constraints. However the key take outs from the 2009-2013 record growth
cycle is that confidence, political stability and prudent public funds
management are key to the growth of the local economy. Zimbabwe’s economy grew
by an average of 10% between 2009 and 2013.
On the 24 of June 2019, the Zimbabwean government gazetted a new
regulation that outlaws the charging of multiple currencies for local goods and
services while re-introducing the Zimbabwean Dollar, parked since 2008. The
return of the Zimbabwean Dollar through the gazetting of Statutory Instrument
142 of 2019 might be a positive aspect for the local industry provided the
foreign currency to import raw materials is available on the interbank market
or local banks access foreign currency to oil their Nostro accounts. Now that
the country has an official local currency, banks can now trade currencies on
the international platform with limited central bank control. However failure
to secure foreign currency for local producers might lead to empty shelves and
production stoppages. The informal market will therefore remain very relevant
as goods in short supply in the shops can be found on the black market for any
currency the traders deem fit. Even though the Zimbabwean Dollar is the legal
tender, SI 142 does not state any penalties for trading in multiple currencies
or criminalize those found in possession of foreign currencies. Strict
enforcement of the local currency through price controls will lead to market shortages
for all imported commodities especially medicine, basic foodstuff and
industrial equipment. The government is likely not going to temper with price
controls.
Black market activities and runaway inflation are not likely to be cooled
by the return of the Zimbabwean Dollar in the long term as fears of rampant
money printing by RBZ are high. The USD and South African Rand will remain very
vital for informal trade, savings and property disposals as sellers will likely
adopt a wait and see attitude in the coming weeks. Foreign currency will now be
traded illegally in dark corners at high premiums.
The much hyped FCA account will remain relevant for industrial importers
mainly. Non-Governmental Organizations (NGOs), foreign embassies and corporates
that transacted using FCA transfers will no longer be able to do so. Foreign
currency deposits with local banks will definitely take a knock going into end
of year. Similarly all labour costs will be settled in a local currency unless
if the central bank specifies otherwise. Foreign currency remittances are most
likely going to be treated as free funds to ensure the remittances corridor is
left open and International Money Transfer (IMT) agencies can import US Dollars
into Zimbabwe.
In terms of the value for
the Zimbabwean Dollar, the government has no absolute control on that front.
The value of the local currency will depend on securing reserves to back the
fiat currency, liquidity levels on the interbank market, confidence levels in
the economy and government itself, export and import parity (current account
position), inflation levels and general economic performance. Currently all
these fundamental necessities are not positive, therefore the value of the
Zimbabwean Dollar is likely to plummet against major world currencies. After
assessing the government’s currency reforms, it is clear that the introduction
of the Zimbabwean Dollar was necessitated by the government’s need to have control
on money printing in the local economy. The slide into dollarization took this
key function away from the central bank. The central bank also wants
flexibility in paying local debt and responding to government expenditure demands
for economic intervention.
Major constraints remain
the economy with key gaps in supplies of fuel, maize, soya and wheat; foreign
currency shortages on the interbank market; power cuts; confidence deficit and production
bottlenecks. Inflation still remains the country’s number one enemy and
managing it remains the key performance indicator for treasury and central bank
authorities. Exports will be slightly below the $4.23 billion mark achieved in
2018 due to foreign currency retention outcries from key producers such as
tobacco farmers and miners. The IMF monitored Staff Monitoring Programme (SMP) remains
key in cutting government expenditure, curtailing borrowing locally or offshore
and restructuring of State Enterprises and Parastatals (SEPs). Though the
agreements in the program are now under threat from civil service salary hikes.
Civil servants are likely going to get 50 to 100% increments in the next month
though their satisfaction will largely be determined by the inflation rate.
Victor Bhoroma is business
and economic analyst. He is a marketer by profession and holds an MBA from the
University of Zimbabwe (UZ). For feedback, mail him on [email protected] or alternatively follow
him on Twitter @VictorBhoroma1.
Energy Minister Fortune Chasi has taken to the social media to try and clean himself after misleading the nation last week claiming that government had paid $10m to South African power producers Eskom.
Eskom quickly dismissed the minister’s claim leaving him exposed to the fury of Zimbabweans who attacked him for lying to the nation.
Chasi this morning published a proof of payment for the amount only generated yesterday, the 1st of July, a week after his sensational claim absolving himself from being termed a liar.
After showing off the payment, Chasi went further to indicate that the payment of the $10m out of $40m owing to Eskom will result in immediate removal of loadshedding.
Zimbabweans, whilst we have paid 10m$ this is no guarantee for power. We need to negotiate. The public owes 350 million. It must be paid.
ZIMBABWE’s economic and political crisis is putting pressure on South Africa’s ability to deliver services to its people, MDC vice president has claimed.
Biti was speaking in a panel discussion at the Southern African Political Economy Series (Sapes) Trust last Thursday.
The former Finance Minister claimed some 20% of the children being delivered in South African hospitals in areas such as Soweto were Zimbabweans.
“You read the first quarter results of the South African economy, the economy has shrunk by volumes it has never done in 45 years. We are going to feel it because in many ways, the South African economy has been subsidising us.
“If you go to a hospital in Soweto, 20% of mothers giving birth are Zimbabweans. So the Zimbabwean crisis is putting a premium on the South African economy and indeed other economies in the Sadc,” said Biti.
Official figures indicate that about 600,000 babies are born in Soweto each year.
An estimated two to three million Zimbabweans are said to be staying in South Africa with most of them undocumented immigrants trying to escape economic and political turmoil in their country.
The Harare East MP said the only way Zimbabwe could avoid going back to the 2008 situation where inflation reached alarming levels and there were massive shortages of goods was by de-dollarising or joining the Rand Monetary Union (RMU). He however admitted it could take as much as four years for this to happen.
“Joining the RMU is not a walk in the park, you need a window of at least four years because there has to be both fiscal and monetary convergence because if there is no convergence, we will export into the region our unique abnormality and disequilibrium,” said Biti.
He said there was need for structural adjustments to the country’s fiscal and monetary policies before joining the union that includes regional economic power South Africa, Namibia and eSwatini so as not to upset the working system.
Biti accused international multi-lateral institutions of going into bed with President Emmerson Mnangagwa’s government that the opposition has refused to recognise after last year’s elections.
“That will force serious structural reform which the International Monetary Fund (IMF) cannot impose on Zimbabwe but is busy cosying up and cuddling with this erratic regime.
“The South Africans, the Namibians and eSwatinis have a real stake in that union so they will insist on huge structural reform to make sure that key indicators are all converged. That is why I am in favour of it,” the former Treasury chief said.
Finance Minister Mthuli Ncube last week announced new fiscal measures that abandoned the multi-currency system in favour of a mono-currency in which the local dollar was designated as sole legal tender for all domestic transactions.
This has angered the opposition and other pressure groups who have been agitating for the adoption of the US dollar or the Rand.
Warriors goalkeeper Elvis Chipezeze actually made his much publicised apology for his pathetic showing at the African Cup of Nations in Egypt only after being bombarded by fans for an initial outburst that somewhat showed no remorse for his heartbreaking act.
Making the apology on his Twitter page, Chipezeze had deleted and retracted on his earlier post about his performance in the 4-0 loss to DRC before a lot of people had seen the post.
The 29-year-old posted on Twitter hitting back at people who are criticising him for the school boy blunders he made which resulted in all the four goals against the DRC.
In the tweet, Chipezeze said: “Even if people criticise or judge me, I have learnt from these incidents. We are humans and we make mistakes, but learning from them is what makes a difference… Gutted with the performance.”
The post showed no remorse in some ways and it left several fans agitated.
That’s a much better, heartfelt apology Elvis than the earlier, remorseless one. Mistakes a cruel part of the game. Hope you indeed learn and rise from this. I was hard on you earlier and justifiably so. If you look for me when back, I can help you with something. Not juju????
The Warriors performance at the most critical moment when they needed just a one goal win left many people believing that the boys may have thrown the match for financial gains.
The team according to critics, exposed itself to match fixing moguls when they continuously fought with the Zimbabwe Football Association authorities over allowances in between every match they played.
Their final match against the DRC was a far cry from the brave performance they put up against the much tougher host Egypt side which is favoured to clinch the title.
A group of South African fruit sellers claim Zimbabwean hawkers in the area are stealing their customers by offering lower prices
“I want to survive like them. They must leave me alone,” says fruit seller in Port Elizabeth
Ever Chingobe, 33, sells fruit and vegetables on the corner of Russell Road and Govan Mbeki Avenue in Port Elizabeth.
She was one of about 30 Zimbabwean hawkers whose stalls were ransacked by a group of South Africans on Friday afternoon. The group, who also sell fruit in the area, claim to be losing customers to the Zimbabwean traders selling goods at lower prices.
“I want to survive like them. They must leave me alone,” Chingobe said.
She said, “A group of women stormed my shop. They told me that whatever I sell should cost R15, instead of R10. I asked the women, would they go to Shoprite and force them to sell fruit at R15?”
Another hawker, Blessing Ziumbe, said, “They suddenly arrived and told us to go … There was no agreement about selling fruit at R15 … We used to sell pirated CDs and DVDs but after we were arrested and fined by the police, we then introduced fruit.”
Ziumbe said they were not given an opportunity to resolve the price dispute.
On Friday afternoon, hawkers were seen shouting insults at one another. One of the South African hawkers shouted, “Take your goods and leave. Don’t drag your feet. Pick them up now,”
He was shouting at a Zimbabwean woman kneeling on the ground as she wrapped her goods in a sheet.
South African hawker Maureen Skhwentu sells fruit and vegetables from a kiosk she rents from the Mandela Bay Development Agency (MBDA). “We are aware that Zimbabwean hawkers also have families, children to look after – like us. But it is hard to make money that would feed me and my children and cover the R90 rent bill [for the kiosk] because of foreign people,” she said.
MBDA Operations Manager Mcebisi Ncalu said no permits had been issued. “It is just through arrogance, disrespect and disregard of law that these foreign illegal traders forced their way into the subway [area to sell],” said Ncalu.
The MBDA is contracted to keep the central city clean and to monitor and issue permits to hawkers.
Ncalu said that the “action by the mamas” on Friday had come about because law enforcement officers had not done their job enforcing the City’s laws.
