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ZimEye.com today brings LIVE coverage of the US congress plenary discussion on Zimbabwe after its elections and below is the submission paper by an unknown businessman called Joseph Mutizwa:

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TESTIMONY TO THE  UNITED STATES SENATE FOREIGN RELATIONS
SUB-COMMITTEE ON AFRICA AND GLOBAL HEALTH POLICY

Submitted
By

JOSEPH MUTIZWA

ARTICULATING PERSPECTIVES OF
ZIMBABWE’S PRIVATE SECTOR
Washington DC, December 6, 2018

TESTIMONY TO THE UNITED STATES SENATE FOREIGN RELATIONS SUB-COMMITTEE ON AFRICA AND GLOBAL HEALTH POLICY

HEARING ON: ZIMBABWE AFTER THE ELECTIONS

UNITED STATES SENATE, WASHINGTON DC, 5 DECEMBER 2018

Preamble
This opportunity to address the Senate Foreign Relations Subcommittee on Africa and Global Health Policy to offer the perspectives of the private sector in Zimbabwe on the situation prevailing in Zimbabwe in the post-election period is greatly appreciated. This dialogue is long overdue. On behalf of the private sector in Zimbabwe, I would like to thank Senator Jeff Flake and members of his Committee for this rare opportunity accorded to us.
As this invitation came at short notice some of my colleagues from the private sector in Zimbabwe were unable to travel to Washington to participate in today’s proceedings. In the short time available to me I was able to solicit the contributions of some-not all –business sector leaders in the private sector in Zimbabwe. The outcome of this consultation is, I believe, a balanced assessment of the state of the macro challenges facing Zimbabwe today as outlined in this written submission.
Zimbabwe is a nation that has experienced economic volatility for the greater part of its post-independence history from 1980 to today. I can say, without hesitation, that the people of Zimbabwe are extra-ordinarily resilient. Over the last two decades they have experienced all manner of deprivations such as; political polarization and violence, record beating hyperinflation, infrastructure decay, staggering unemployment levels and economic decline accompanied by deepening poverty. In recent times we have even been visited by medieval diseases such as cholera.
Despite all these challenges the people of Zimbabwe have largely remained peaceful, hardworking, God fearing and honest. Our work ethic as a nation is second to none on the African continent. Our literacy rates remain among the best in Sub-Saharan Africa. Zimbabwe business leaders occupy positions of high responsibility in iconic corporations across Africa and beyond.
I make this submission in my following capacities: –
i) As the former CEO (2002-20120) of one of Zimbabwe’s largest listed companies (see appendix 1 for my resume).
ii) As the current Chairman of the Zimbabwe Stock Exchange Listed Companies Forum (ZSE Forum) – representing all the 63 companies listed on the Zimbabwe Stock Exchange.
iii) As a Leadership Consultant working with more than 30 private sector companies since my retirement as CEO of Delta Beverages in 2012. This consultancy role gives me unparalleled access to Chief Executive Officers, their boards and executive committees. This puts me in a position to have an in-depth appreciation of private sector perspectives across Zimbabwe. (see appendix 2 for the list of some of the companies consulted for and the sectors they fall into).
iv) As Chairman of the boards of several private sector companies in Zimbabwe.
v) As an independent non-executive director on the Board of the Reserve Bank of Zimbabwe. In this capacity i also chair the important Bank Stability Committee which is charged with supervision of the banking sector in Zimbabwe. I am, therefore, fully cognisant of the challenges facing the private banking sector in Zimbabwe.
The ushering in of the new political dispensation following the resignation of President Robert Mugabe in November 2017 has had a seismic impact on the nation of Zimbabwe. The private sector is a significant stakeholder in the process of building a new Zimbabwe in the post Mugabe era.
This submission will address four key issues which Senator Flake has requested me to focus on. These are: –
1. What is the current state of Zimbabwe’s economy and its impact on Zimbabwean people?
2. What is the private sector’s evaluation of the impact of the July 30, 2018 elections on Zimbabwe’s economy?
3. How does the private sector evaluate of the progress made to date on economic and political reforms by the Government of President Emmerson Mnangagwa?
4. What alternatives does Zimbabwe have should the USA fail to take action to support Zimbabwe’s economy?

I will tackle each question in turn.
In preparing this submission for the Sub-committee on Africa and Global Health
Policy I am guided by a number of considerations that the private sector in Zimbabwe embrace. These are: –
• The over-riding desire for stability in terms of both the economic and political environments. A stable operating environment is conducive to business growth. The converse is true.
• A desire for economic reforms that recognize the role of the private sector as the engine for economic growth.
• The need for an investor friendly environment that encourages and makes it easy for both foreign and domestic investors to conduct business.
• Macroeconomic policy consistency and predictability.
• A stable currency and affordable cost of money.
• Access to affordable international lines of credit to enable the recapitalization and modernisation of plant and equipment for productivity and competitiveness.
• A regulatory framework that is facilitative of business and that improves the ease of doing business and makes Zimbabwe a desirable investment destination.
In concluding this preamble, I wish to state that the private sector in Zimbabwe endeavours to be apolitical. We work with any government in office regardless of its political leanings.
We offer support to ensure success of desirable policies and programs but we also offer constructive criticism to Government where we believe that policies or measures are not in the best interests of the economy.
This submission is guided by the above considerations.
QUESTION # 1

What is the state of Zimbabwe`s economy and what is the impact it is having on citizens?

1. Current state of the economy from a business perspective
1.1. The Challenges
Zimbabwe’s economy is currently in distress exhibiting stress in the following areas;
• Fiscal distress with the budget deficit projected at 11.6% of GDP in fiscal year 2018. The consensus target within the SADC region is for a fiscal deficit around 3% of GDP.
• Current account imbalance with imports projected to exceed exports in fiscal year 2018.
• 80-90% of the economy is informal – reflecting high levels of unemployment in the formal sector.
• Large public debt burden standing at US$18bn and split 54% to 46% between domestic and international debt respectively.
• Currency volatility reflected in multi-tier pricing distortions in the market with significant loss of value of the local currency over the last two months.
• Rising annual inflation climbing to 20.9% as at October 2018 – the highest in the SADC region.
• Infrastructure constraints affecting road, rail, power, water and sanitation among other needs.
• Very high country risk discouraging Foreign Direct Investment. The country risk premium currently stands at over 20-25%. Only US$470m FDI inflows in 2018.
• Deteriorating standards of living for ordinary citizens as savings and earnings have lost value while costs are escalating.
1.2 The Positive Developments in the economy
i) Rise in Manufacturing Sector capacity utilization
Expansionary fiscal measures by government have stimulated recovery in capacity utilization in the manufacturing sector from a low of around 34% three years ago to around 60% before the October 1,2018 policy pronouncements caused a major foreign currency crisis.
The adverse impact of this rise in capacity utilization has been the “overheating” of the economy as demand for production inputs and consumer products has outstripped the economy’s capacity to generate foreign currency earnings to service the increasing appetite for foreign currency.
The above situation reflects the fact that Zimbabwe’s productive sector is highly import dependant – thus contributing to the Current Account Deficit.
ii) Recovery in Agriculture Production
There has been significant recovery in Agricultural production as evidenced by the following:
• A 34% increase in tobacco production from 188.6 million kilograms in 2017 to 252.5 million kilograms in 2018 (the highest output in the history of the tobacco industry in Zimbabwe-exceeding the previous peak of 238 million kilograms reached in 2000).
• A 95% increase in cotton output from 73 086 tonnes in 2017 to 142 761 tonnes in 2018.
• Zimbabwe has achieved food security through the government`s intervention in agriculture during the 2017/18 agricultural season. 1.2 million tonnes of maize are now in the country`s strategic grain reserve putting Zimbabwe in a secure position even if the current rainy season is adversely by El Nino.
iii) Mining Sector Output Growth
• Gold output has increased substantially and could end the year at 34 tonnes or 42% up on the 24 tones achieved in 2017.
• Platinum output is set to expand on the back of a new mine commissioned by Zimplats – the country’s largest platinum producer.
• Diamond output is set to reach three million carats in
2018 up 67% from the 1.8 million carats achieved in 2017.

iv) Reform of Indigenization Laws
A major step forward implemented by the new government has been the repeal of the indigenization laws which required all businesses to have a 51% equity interest in the hands of indigenous Zimbabweans. This made Zimbabwe unattractive to foreign investors. This requirement has now been removed save for the platinum and diamond mining sectors.
V) Closure to Land Tenure
Significant progress has been made on the contentious issue of land tenure with bankable and transferrable 99 year leases close
to finalization.
Another major change has been the decision by the government discontinue the Mugabe era prohibition of leasing arrangements between white farmers who desire to lease and farm productively on farms allocated to black farmers. Joint ventures and leasing arrangements are now in place allowing a significant number of white farmers to return to farm in Zimbabwe.
1.3 Impact of Macroeconomic Developments on the Populace
• Since 2016 there has been a significant erosion in the welfare of citizens. This erosion has been transmitted through higher cost of living, erosion of value of savings and deterioration in service provision. There has been a real fear that the country was heading towards the volatility experienced in the hyperinflation period of 2007 – 2008. Foreign currency shortages have had a severe adverse impact on the availability of essential goods and services in particular, essential medical drugs, fuel and machinery spares and raw materials.
• The cumulative impact of all these developments has been to erode the quality of life of most, it not all Zimbabweans.
• Since October 2018, there has been a deterioration in macroeconomic stability as parallel market rates of exchange skyrocketed leading to speculative price increases that saw prices of basic food items as well as the cost of transport and rentals soaring out of the reach of ordinary citizens whose disposable incomes have been severely reduced by inflation and increased taxation.
• The current level of trust by most citizens in public institutions is still very low given past experiences with hyperinflation ( 2007-2008) when savings were wiped out. As a consequence of this experience confidence is very fragile in Zimbabwe leading to panic and over-reactions when there is any hint of possible loss of currency value.

QUESTION # 2
How did the July elections impact Zimbabwe`s economy?
1.Overview
In the run up to the elections there was a surge of optimism across Zimbabwe generated by a number of developments among which were the following: –
• Ushering in of a new national leadership after the resignation of President Robert Mugabe – in power for 37 years.
• A very peaceful and relatively open election campaign period.
• Expressions of support for Zimbabwe from broad sectors of the international community.
2. Post- Election Violence
The optimism that swept across Zimbabwe was shattered by the discord around the announcement of election results and the post-election violence on August 1, 2018. Confidence was severely undermined and country risk escalated. The expected FDI inflows did not materialize as expected although there are significant numbers of potential foreign investors visiting Zimbabwe to make inquiries. A few key investors have now made commitments.
3. Post -Election Political Polarization
The legal challenges against the election results at the Constitutional Court and the refusal ty the main opposition to accept the legitimacy of Presidentelect Emmerson Mnangagwa has resulted in deep political polarization which has severely dented business confidence for both foreign and domestic investors. While the polarization is a reality it is also a fact that the ruling party emerged from the election with a two thirds majority in Parliament thus giving it a strong mandate to carry out the required legislative reforms particularly those needed to align existing laws to the 2013 constitution.

4. Impact on Value of Local Currency
In the period following the resignation of President Mugabe and the July 2018 elections the depreciation of the local Zimbabwe currency (the RTGS or “Real Time Gross Settlement” balance and the “Bond Note”) was around 30-40%. The local currency has significantly lost value in the post-election period – at one point in October 2018 reaching a low of around 500% devaluation before stabilizing at around 340% devaluation in the parallel (or unofficial) market. This is despite an official position putting the local currency at parity with the United States Dollar.
5. Deepening Foreign Currency Situation
The post-election period has seen a deepening of the foreign currency shortage as United States Dollars continue to disappear from the formal markets. The consequence of these shortages have had severe adverse impact on the availability of imported raw materials, fuel and medical drugs. The most severe impact has been felt in the area of medical care as hospitals and pharmacies have run out of imported medical drugs thus putting the lives of many ordinary Zimbabweans at risk
6. Tightening Liquidity and Cash Shortages
Zimbabwe has been experiencing cash shortages in the banking sector since the introduction of a local currency (bond notes) in November 2016. These cash shortages remain in place four months after the July 2018 elections.
7. Significant Increase in Tourist Arrivals
Following the July 2018 elections there has been a surge in the number of tourist arrivals in Zimbabwe. Tour operators and resort hotels are reporting increases of around 25-30% compared to the same period last year. Hotel operators in the Victoria Falls resort area are reporting occupancy levels last seen in the 1997-98 period for the forthcoming festive season with average occupancies around 65%.
8. New Mining Investments
Some long term investors have come on board including two Australian mining companies who have projects in oil and gas exploration in Northern Zimbabwe and a Lithium mining operation near Harare, respectively. A Chinese investor is considering setting up a major steel plant in the Midlands area while another company is planning opening a major platinum mine.
9. Financial Commitments By UK Financial Institutions
Of note has been the financial commitment made by The CDC ( The UK Government`s Commonwealth Development Corporation) to make lines of credit available to the private sector in Zimbabwe. Although of limited amount given Zimbabwe`s significant requirements for financial support , this commitment is symbolic as it represents the first such financial commitment by the CDC in almost two decades.
10. Delegations from EU Governments in the Post-Election Period
The post -election period has also witnessed the visit to Zimbabwe by high powered delegations (combining political and business leaders) from China, Germany and Belgium among others.

QUESTION #3
Is President Emmerson Mnangagwa making any Reform efforts, and if so, what progress is being made? What are some for the hurdles to making economic reforms?
1. Overview
My considered view is that there is a crisis of expectations in Zimbabwe.
The ordinary person expected a very quick turnaround of the economy following the July 2018 elections. These expectations are misplaced. Zimbabwe has been in the grip of misrule for 37 years and the damage done to the economy to the country’s reputation and its institutions will take many years, if not, decades to repair.
It is from this perspective that I evaluate what President Mnangagwa has achieved since the July 2018 elections.
2. Evaluation of Progress
2.1. What has been achieved to date?
i) Cabinet Composition
There was wide support for President Mnangagwa’s decision to let go long-serving party loyalists and bring in fresh talent into a significantly trimmed cabinet. Key new appointments were made in the ministries of Finance, Industry, Mines and Transport-all now headed by technocrats. The private sector in Zimbabwe welcomed these appointments.
This cabinet has only been in office since September 2018. It is too early to objectively evaluate their performance after just three months in office.
ii) Opening up of Political Space
• The Political Space has been opened up significantly. Zimbabweans now express themselves much more openly than during the Mugabe era. Press freedoms are in place for the print media while the state electronic media is still to be reformed and liberalized.
• Political demonstrations are allowed and the recent demonstration by the main opposition on November 29, 2018 is a case in point.
• The move to open to the public and to broadcast live on national television the proceedings of the Constitutional Court electoral challenge hearings as well as the public hearings held by the Commission on the post-election violence of August 1, 2018 are both major milestones in establishing transparency in Zimbabwe.
iii) Anti-corruption drive
• Several prosecutions of high level people are currently underway. While there is perceptions in some quarters that there is political bias in the selection of those to be targeted –
the prosecutions indicate a toughening of the President’s stance against corruption.
• Legislation has recently been passed to toughen measures against money laundering and illicit transactions on the parallel markets.

iv) Change of leadership narratives from focus on politics to focus on the economy
The current government has moved sharply to refocus on economic matters. The mantra “Zimbabwe is Open for Business” is now the mantra of Government. However, the private sector wants to see more action than rhetoric on the ground and continues to press government for accelerated reforms especially in the areas of fiscal reforms and ease of doing business.
v) Articulation of a National Vision and Economic Road Map for Zimbabwe.
The President has articulated Vision 2030 whose goal is to turn Zimbabwe into an Upper Middle Class Economy by 2030 with a per capita GDP exceeding US$3 500 per annum. Zimbabwe is currently a lower middle class economy.
President Mnangagwa’s Government in October, 2018, launched the Transitional Stabilization Plan (TSP) which provides a road map to economic recovery for the next three years. Subsequent to the launch of the TSP the government put together a National Budget under the theme “Austerity for Prosperity”. This budget – announced on November 22, 2018 puts the attainment of fiscal balance as the centre-price of the recovery plan. The key goals are well-articulated and include: –
• Reducing the fiscal deficit to 5% of GDP by 31 December 2018 from a projected 11.6% by 31 December 2018. The intention is to achieve this through cuts in Government expenditure, drastically curtailing issuance of Treasury Bills and desisting from resorting to Central Bank Overdraft Facilities.
• Expanding revenues through taxation measures. Two very significant taxation measures have already been implemented.
• Reducing the current account deficit by compressing imports and collecting import duties on luxuries in hard currencies.
• Shifting expenditure from consumption to capital or productive spending.
• A GDP growth target of 3.1% in 2019 down from a projected 4% growth in 2018.
• An average inflation of 10% by end of 2019 down from 20.9% in October 2018.
• An aggressive timetable for reforming state owned enterprises has been announced.
• Implementation of Debt Resolution Program with international lenders before the end of 2019.
• The Government has embraced the proposal for an IMF Staff Monitored Program ( SMP) which is about to commence.
vi) Aligning Zimbabwe`s Laws to the 2013 Constitution
The perception of most observers is that Zimbabwe is moving too slowly on the road to aligning its statutes to the new constitution.
My investigations revealed that of Zimbabwe`s 299 pieces of legislation 255 of these needed to be aligned to the constitution. To date, I am told, 206 of these statutes have been aligned to the new constitution with only 49 outstanding. Among the outstanding ones are the two controversial pieces of legislation namely, POSA (Public Order and Security Act) and AIPPA (Access to Information and Protection of Privacy Act) which are widely regarded as being curtailing civil liberties.
On enquiring what the way forward is with these statutes I learnt that the reform of these statutes is on the agenda of the current Zimbabwean Parliament.
2.2 Where has progress been less than expected from a business perspective?
i) Reduction in Government Bureaucracy
• While the size of the cabinet was reduced, it is the private sector`s view that much more needed to be done to reduce head-count at the top – at both ministerial and civil service levels.
• Although the President, Cabinet and senior civil servants and executives of state enterprises will take a 5% pay cut from January 2019, the public wants to see more sacrifices borne by top government leaders than is currently the case. This is necessary so as to make the hardships endured by the ordinary citizen more bearable.
ii) Implementation of measures to improve Country
Competitiveness.
• Very high operating costs driven by currency distortions, high cost of utilities and generally high cost of doing business still prevail.
• Although the Government has established a one-stopinvestment authority (ZIDA – Zimbabwe Development Agency), its operationalization is still unclear to the private sector.
• Policy co-ordination across Government agencies requires optimization so as to minimize frustration for prospective investors due to regulatory bottlenecks.
Iii) The Sequencing of Policy Measures has been less than optimal.
• The implementation of taxation measures ahead of government expenditure cuts was very badly received by an already overtaxed population that wanted to see the benefits of the privileged elites in the public sector reduced first before new taxes were imposed.
• The private sector understands the need for Government to create fiscal space through taxation if it is to curtail printing of money. However the sequencing of the measures could have been handled better.
iv) Anti-corruption Drive needs to be more vigorous
The private sector views both private sector and public sector corruption as cancers that need to vigorously attacked otherwise they will frustrate economic reform efforts.
v) Currency Reforms
• There is a significant section of the private sector that wants to see currency reforms done immediately so as to remove the current pricing distortions as well as the system of allocating foreign currency which is prone to abuse.
• Another view, however, is that currency reforms cannot be undertaken without two major issues being tackled first. These two issues are; the need for fiscal discipline on the part of government, and the need to have in place a Foreign Currency Stabilization Fund to stabilize any domestic currency which may be introduced as part of the currency reforms.
2.3 What are some of the hurdles to making economic reforms?
There are two major categories of hurdles that face the Government of Zimbabwe as it embarks upon economic reforms. The first category is that of Economic Sanctions imposed on Zimbabwe by the USA (ZIDERA Act of 2001 as amended in 2018); Canada and the European Union. The second category is to do with the potential adverse consequences of Economic Reforms. Let me address each in turn.
2.3.1 The Impact of Economic Sanctions on the Post-Election Economic Reform Agenda in Zimbabwe
Sanctions continue to retard economic recovery in Zimbabwe in a number of important ways.
i) Trade Sanctions
In Zimbabwe, trade sanctions impact negatively on economic growth through denying the country access to foreign lines of credit, which ordinarily finance external trade and access to markets, particularly the USA market, through exclusion from AGOA. Furthermore, the country’s export competitiveness is adversely affected by negative perceptions of the country resulting in high country risk profile translating into higher country risk premiums.
Due to the above the private sector in Zimbabwe finds it very difficult to access affordable external financing to retool and modernize plant and equipment and access technology.
ii) Financial Sanctions
The Zimbabwe Democracy and Economic Recovery Act (ZIDERA) has proved to be a great obstacle for Zimbabwe to access foreign finance. USA financial institutions are not at liberty to provide well-structured financial support against Zimbabwe’s minerals (gold, platinum, cobalt, lithium, etc.,) due to OFAC compliance rules. The same it for banks in Europe due to compliance, reputation and association risks.
As a result of the impact of ZIDERA on the financial sector, the Zimbabwe banks have lost more than 100 corresponding banking relationships over the past 10 years.
The strong view of the private sector in Zimbabwe is that the imposition of sanctions on Zimbabwe by the US and the EU have branded Zimbabwe and its entire financial linkages with the rest of the world as representing high risk thereby making the country a compelling target for de-risking interventions by leading correspondent banks in the USA and Europe. iii) Economic Sanctions
Due to a combination of sanctions and its own bad track record of debt servicing Zimbabwe is unable to access balance of payments support and credit and technical support from most of the major multi-lateral Financial Institutions (MFIs).
The private sector’s view is that the country’s failure to access long term concessionary funding from developmental institutions such as the World Bank and the African Development Bank (AfDB)-among others, has created an unsustainably large deficit in infrastructure development in Zimbabwe – in particular the rail, road and water related infrastructure. The dilapidated state of all these constitutes a real tax on business by hard-wiring inefficiencies into the entire economy.
Businesses in Agriculture, Manufacturing, Mining, Tourism, Financial Services and others all desire to see sanctions removed so that country risk is reduced and access to affordable long-term credit is restored while access to global markets is opened up.
The private sector’s strong view is that sanctions – although they are supposed to be targeted at certain individuals and entities – have the unintended effect of pulling down the entire economy of Zimbabwe and the welfare of all its citizens. Sanctions do constitute a real stumbling block to the efforts of the current Government to get the country’s economy moving forward again.
2.3.2 The Unintended Potential Consequences of Economic Reforms
In embarking upon Economic reforms that are driven by a desire to restore fiscal and current account balance, and to liberalize the economy through currency and regulatory reforms, the government is caught between a rock and hard place.
While tough economic reforms are unavoidable and long overdue, their impact will cause significant pain on the intended beneficiaries – the citizens – at least in the short to medium term.

Four potential unintended risks stand out: –
• Recession Risk
Will the Government’s reversal of expansionary fiscal policies (printing money to support agriculture, for example) tip the country into a contraction phase? If so, for how long?
Will increased taxes (2% on financial transactions and increased fuel duties) suck out too much from people’s disposable incomes precipitating a form of recession?
• Inflation Risk
If market forces are allowed to prevail in the allocation of the scarce foreign currency will there by a deep devaluation causing local prices to run and pushing the country into an inflationary spiral?
To some extent this has already happened as informal markets took a position on the currency. Should the Government mobilize a stabilization fund to support a local currency first before introduction currency reforms. Where does this stabilization fund come from given the current international isolation of the country and the existing sanctions?
• Will the reforms cause socio-political instability?
There is no doubt that in the short term (12-18 months) the reforms will cause a great deal of hardships among Zimbabwean citizens – particularly the vulnerable. Will this cause civil strife in the form of riots and escalating political tensions.
• Will the reforms lead to increased company failures?
As the reforms begin to bite there is every possibility that some companies may fail as disposable incomes drop, as liquidity tightens and as interest rates rise.
All the above pose a significant hurdle to the policy makers in President Mnangagwa’s administration.
The observation of the private sector is that because of the above risks, the proper sequencing and pacing of the reform programme becomes crucial.
A ‘big bang’ approach to economic reforms may have dire unintended consequences given the fragility of the economy. In the absence of significant international financial support, a gradual and nuanced reform process may be more appropriate.

QUESTION #4
What alternatives does Zimbabwe have should the USA fail to take action to support Zimbabwe’s economy?
Overview
It is our view that Zimbabweans are now desperately impatient for real economic advancement. Unless the populace sees progress the pressure on the politicians will be relentless. This can lead to desperate actions on the part of Zimbabwe should the USA and EU fail to respond to Zimbabwe’s request for urgent economic support and removal of sanctions.

4.1 Options available to Zimbabwe
As private sector observers we note that the Government of Zimbabwe is not without options – if it fails to secure USA and EU financial support.
We make no comment on the advisedness or otherwise of these options – but simply to state that these options do exist.
i) Embrace China’s BRI initiative for Africa.
China has placed on the table a potential US$60bn investment package for investment across Africa as part of its Belt and Road Initiative (BRI). Many African countries are scrambling to get a share of these resources. Shunned by the USA and The EU it would be reasonable to assume that Zimbabwe will consider making a strong attempt to access this large pool of investment funds even if this entails mortgaging substantial share of its natural resources to achieve this.
ii) Develop Closer stronger economic ties with Russia
There have already been a number of Russian delegations to Zimbabwe in the recent past – which is indicative of a desire by Russia to forge economic ties with Zimbabwe.
iii) Closer Economic ties with Eastern European Countries such as Belarus.
Our observation is that should the USA and the EU fail to support Zimbabwe these fledging relations will become stronger.
iv) Embrace investors of questionable credentials.
When a government is pushed into a corner there is every reason to believe that it will take any action necessary to enable it to respond to the popular demands of its citizens if the traditional or normal avenues fail to yield results.
V) Revert to ruinous populist policies of the Mugabe era
It is not inconceivable that if the present government fails to secure Support from the international financial institutions despite its commitment to reform it may, in frustration, revert to populism catastrophic consequences for a country with so much promise.
Our view as the private sector is that Zimbabwe’s government desires to strengthen its relationship with its traditional business partners which include the USA and EU. Zimbabwe has already applied to re-join the Commonwealth – a strong indicator that it wants to improve relations with the UK-led grouping and with the West in general. Sanctions present a formidable obstacle blocking the way to the resumption of these partnerships.

Conclusion
Zimbabwe is at cross roads. The Government of President Mnangagwa looks determined to make some tough economic and political reforms. To us in the private sector the President comes across as being sincere in his quest for taking Zimbabwe forward. He appears to have sufficient conviction and resolve to rebuild Zimbabwe and turn it into a successful and proud nation occupying its rightful place among the community of nations. His government recognizes that for Zimbabwe to be welcomed among the community of nations it must acknowledge and settle its debts. It must also put its house in order through better governance and economic management. The government of President Mnangagwa appears to be committed to both.
The President is aware of the huge expectations that the people have. He recognizes that along the way there will be unavoidable pain for the people of Zimbabwe – over and above the traumas they have endured over the past two decades.
As Zimbabwe’s private sector we are fully supportive of the reform programs embarked upon by our Government. We want to see more action and less rhetoric and better co-ordination and sequencing. We will give our Government support in the form of advice and constructive criticism as well as through playing our part in raising production and exports, conserving foreign currency through import substitution and improving competitiveness through cost efficiencies and value addition.
It is the view of most in the private sector in Zimbabwe that the United States government can find in Zimbabwe a worthy and strategic partner. The road to that possibility starts here in the Senate Foreign Relations Sub-Committee on Africa and Global Health Policy.
It is my strong and unambiguous submission, Mr Chairman, that the private sector in Zimbabwe urges the United States of America to urgently repeal Zimbabwe Democracy and Economic Recovery Act ( ZIDERA) of 2001 ( As amended in 2018) .
Zimbabwe is going to be a pivotal nation in the Southern Africa sub-region –a country in whom the United States may find a worthy and strong partner.

I Thank You, Mr. Chairman, for the opportunity to address this Senate SubCommittee at this particular juncture in the history of my country.

Appendix 1

JOE MUTIZWA
Joe is the Founder and CEO of PATHWAYS AFRICA a management consulting company based in Harare –Zimbabwe and working with business organizations within Zimbabwe and Sub-Saharan Africa.
Prior to his current focus Joe spent 32 years in various positions in the Zimbabwe private sector. Joe served for ten years as CEO of Delta Corporation – then Zimbabwe`s largest listed company before taking early retirement in 2012 at age 58.
Joe is Chairman of The Zimbabwe Stock Exchange Listed Companies Forum
(Representing the 63 companies listed on the Zimbabwe Stock Exchange).
He is also Mangwana Capital (a venture capital company) and sugar refining company Starafrica. Joe serves as a non-executive director on several other boards including the board of the Reserve Bank of Zimbabwe..
After retiring from Delta Joe went to Oxford University to pursue a Master’s degree in Leadership offered jointly by Said Business School and HEC-Paris- graduating in June 2014with distinction.
Joe has written seven books on leadership since retiring as a full-time executive. Joe has consulted for 33 organizations since retiring- with a focus on leadership development for CEOs and Senior Executive Teams.
Apart from the Master’s degree mentioned above, Joe has a B.Sc. degree (with first class honours) from LSE (The London School of Economics) as well as an MBA from the University of Zimbabwe.
Joe is married with 3 adult children and 3 grandchildren.

Appendix II
ZIMBABWEAN COMPANIES WHERE JOE MUTIZWA HAS OFFERED CONSULTANCY SERVICES SINCE RETIRINGB FROM FULL TIME CORPORATE EMPLOYMENT IN 2012
1. AMH Holdings – Media
2. Art Corporation – Manufacturing
3. Bindura Nickel – Mining
4. BOC Gases (Zimbabwe) – Trading
5. CABS – Financial Services
6. CIMAS – Medical Services
7. Dairibord Holdings Limited – Manufacturing
8. Econet Wireless Zimbabwe – Telecoms
9. Edgars Group – Retail
10. First Mutual Holdings Limited – Insurance /Property
11. Freda Rebecca – Mining
12. Mimosa – Mining
13. National Building Society (NBS) – Financial Services
14. National Foods Limited – Manufacturing
15. Nedbank – Financial Services
16. NetOne Cellular – Telecoms
17. Nicoz Diamond – Insurance
18. Nissan Clover Leaf – Motor Vehicle Retail
19. NMB Bank – Financial Services
20. NSSA – Insurance & Pensions
21. Schweppes Holdings Africa Limited – Beverage Manufacturing
22. Stanbic Bank – Financial Services
23. Steward Bank – Financial Services
24. TelOne – Telecoms
25. TSL – Tobacco
26. Unilever Zimbabwe – Fast Moving Consumer Goods
27. ZB Bank – Financial Services
28. ZETDC – Power General & Distribution
29. Zimpapers Group – Media
30. Zimplats – Mining

Correspondent|THERE could finally be light at the end of the tunnel for long-suffering Zimbabweans, after it emerged yesterday that President Emmerson Mnangagwa and opposition leader Nelson Chamisa are indirectly engaging each other in talks aimed at ending the country’s decades-long political and economic crisis.

The Zimbabwe Council of Churches (ZCC) has been trying to bring Mnangagwa and Chamisa, who were the main contenders in the July 30 poll, to the negotiating table, but despite both of them insisting they were ready to dialogue, they had managed to remain far apart.

Chamisa has rejected Mnangagwa’s victory despite the Constitutional Court (ConCourt) throwing out his petition challenging the result and has since maintained that he won the election, frequently calling his rival “illegitimate”.

Mnangagwa has reportedly offered an olive branch to his nemesis, saying he has “a vital role to perform in Zimbabwe’s future” and proposed an official Westminster style “Leader of Opposition” post in Parliament for his rival to be part of the national discourse, but insists that Chamisa must recognise his Presidency.

This is a developing story. More to follow…

ZimEye.com today brings LIVE coverage of the US congress plenary discussion on Zimbabwe after its elections and below is the submission paper by an unknown businessman called Joseph Mutizwa:

VIDEO LOADING BELOW…

TESTIMONY TO THE  UNITED STATES SENATE FOREIGN RELATIONS
SUB-COMMITTEE ON AFRICA AND GLOBAL HEALTH POLICY

Submitted
By

JOSEPH MUTIZWA

ARTICULATING PERSPECTIVES OF
ZIMBABWE’S PRIVATE SECTOR
Washington DC, December 6, 2018

TESTIMONY TO THE UNITED STATES SENATE FOREIGN RELATIONS SUB-COMMITTEE ON AFRICA AND GLOBAL HEALTH POLICY

HEARING ON: ZIMBABWE AFTER THE ELECTIONS

UNITED STATES SENATE, WASHINGTON DC, 5 DECEMBER 2018

Preamble
This opportunity to address the Senate Foreign Relations Subcommittee on Africa and Global Health Policy to offer the perspectives of the private sector in Zimbabwe on the situation prevailing in Zimbabwe in the post-election period is greatly appreciated. This dialogue is long overdue. On behalf of the private sector in Zimbabwe, I would like to thank Senator Jeff Flake and members of his Committee for this rare opportunity accorded to us.
As this invitation came at short notice some of my colleagues from the private sector in Zimbabwe were unable to travel to Washington to participate in today’s proceedings. In the short time available to me I was able to solicit the contributions of some-not all –business sector leaders in the private sector in Zimbabwe. The outcome of this consultation is, I believe, a balanced assessment of the state of the macro challenges facing Zimbabwe today as outlined in this written submission.
Zimbabwe is a nation that has experienced economic volatility for the greater part of its post-independence history from 1980 to today. I can say, without hesitation, that the people of Zimbabwe are extra-ordinarily resilient. Over the last two decades they have experienced all manner of deprivations such as; political polarization and violence, record beating hyperinflation, infrastructure decay, staggering unemployment levels and economic decline accompanied by deepening poverty. In recent times we have even been visited by medieval diseases such as cholera.
Despite all these challenges the people of Zimbabwe have largely remained peaceful, hardworking, God fearing and honest. Our work ethic as a nation is second to none on the African continent. Our literacy rates remain among the best in Sub-Saharan Africa. Zimbabwe business leaders occupy positions of high responsibility in iconic corporations across Africa and beyond.
I make this submission in my following capacities: –
i) As the former CEO (2002-20120) of one of Zimbabwe’s largest listed companies (see appendix 1 for my resume).
ii) As the current Chairman of the Zimbabwe Stock Exchange Listed Companies Forum (ZSE Forum) – representing all the 63 companies listed on the Zimbabwe Stock Exchange.
iii) As a Leadership Consultant working with more than 30 private sector companies since my retirement as CEO of Delta Beverages in 2012. This consultancy role gives me unparalleled access to Chief Executive Officers, their boards and executive committees. This puts me in a position to have an in-depth appreciation of private sector perspectives across Zimbabwe. (see appendix 2 for the list of some of the companies consulted for and the sectors they fall into).
iv) As Chairman of the boards of several private sector companies in Zimbabwe.
v) As an independent non-executive director on the Board of the Reserve Bank of Zimbabwe. In this capacity i also chair the important Bank Stability Committee which is charged with supervision of the banking sector in Zimbabwe. I am, therefore, fully cognisant of the challenges facing the private banking sector in Zimbabwe.
The ushering in of the new political dispensation following the resignation of President Robert Mugabe in November 2017 has had a seismic impact on the nation of Zimbabwe. The private sector is a significant stakeholder in the process of building a new Zimbabwe in the post Mugabe era.
This submission will address four key issues which Senator Flake has requested me to focus on. These are: –
1. What is the current state of Zimbabwe’s economy and its impact on Zimbabwean people?
2. What is the private sector’s evaluation of the impact of the July 30, 2018 elections on Zimbabwe’s economy?
3. How does the private sector evaluate of the progress made to date on economic and political reforms by the Government of President Emmerson Mnangagwa?
4. What alternatives does Zimbabwe have should the USA fail to take action to support Zimbabwe’s economy?

I will tackle each question in turn.
In preparing this submission for the Sub-committee on Africa and Global Health
Policy I am guided by a number of considerations that the private sector in Zimbabwe embrace. These are: –
• The over-riding desire for stability in terms of both the economic and political environments. A stable operating environment is conducive to business growth. The converse is true.
• A desire for economic reforms that recognize the role of the private sector as the engine for economic growth.
• The need for an investor friendly environment that encourages and makes it easy for both foreign and domestic investors to conduct business.
• Macroeconomic policy consistency and predictability.
• A stable currency and affordable cost of money.
• Access to affordable international lines of credit to enable the recapitalization and modernisation of plant and equipment for productivity and competitiveness.
• A regulatory framework that is facilitative of business and that improves the ease of doing business and makes Zimbabwe a desirable investment destination.
In concluding this preamble, I wish to state that the private sector in Zimbabwe endeavours to be apolitical. We work with any government in office regardless of its political leanings.
We offer support to ensure success of desirable policies and programs but we also offer constructive criticism to Government where we believe that policies or measures are not in the best interests of the economy.
This submission is guided by the above considerations.
QUESTION # 1

What is the state of Zimbabwe`s economy and what is the impact it is having on citizens?

1. Current state of the economy from a business perspective
1.1. The Challenges
Zimbabwe’s economy is currently in distress exhibiting stress in the following areas;
• Fiscal distress with the budget deficit projected at 11.6% of GDP in fiscal year 2018. The consensus target within the SADC region is for a fiscal deficit around 3% of GDP.
• Current account imbalance with imports projected to exceed exports in fiscal year 2018.
• 80-90% of the economy is informal – reflecting high levels of unemployment in the formal sector.
• Large public debt burden standing at US$18bn and split 54% to 46% between domestic and international debt respectively.
• Currency volatility reflected in multi-tier pricing distortions in the market with significant loss of value of the local currency over the last two months.
• Rising annual inflation climbing to 20.9% as at October 2018 – the highest in the SADC region.
• Infrastructure constraints affecting road, rail, power, water and sanitation among other needs.
• Very high country risk discouraging Foreign Direct Investment. The country risk premium currently stands at over 20-25%. Only US$470m FDI inflows in 2018.
• Deteriorating standards of living for ordinary citizens as savings and earnings have lost value while costs are escalating.
1.2 The Positive Developments in the economy
i) Rise in Manufacturing Sector capacity utilization
Expansionary fiscal measures by government have stimulated recovery in capacity utilization in the manufacturing sector from a low of around 34% three years ago to around 60% before the October 1,2018 policy pronouncements caused a major foreign currency crisis.
The adverse impact of this rise in capacity utilization has been the “overheating” of the economy as demand for production inputs and consumer products has outstripped the economy’s capacity to generate foreign currency earnings to service the increasing appetite for foreign currency.
The above situation reflects the fact that Zimbabwe’s productive sector is highly import dependant – thus contributing to the Current Account Deficit.
ii) Recovery in Agriculture Production
There has been significant recovery in Agricultural production as evidenced by the following:
• A 34% increase in tobacco production from 188.6 million kilograms in 2017 to 252.5 million kilograms in 2018 (the highest output in the history of the tobacco industry in Zimbabwe-exceeding the previous peak of 238 million kilograms reached in 2000).
• A 95% increase in cotton output from 73 086 tonnes in 2017 to 142 761 tonnes in 2018.
• Zimbabwe has achieved food security through the government`s intervention in agriculture during the 2017/18 agricultural season. 1.2 million tonnes of maize are now in the country`s strategic grain reserve putting Zimbabwe in a secure position even if the current rainy season is adversely by El Nino.
iii) Mining Sector Output Growth
• Gold output has increased substantially and could end the year at 34 tonnes or 42% up on the 24 tones achieved in 2017.
• Platinum output is set to expand on the back of a new mine commissioned by Zimplats – the country’s largest platinum producer.
• Diamond output is set to reach three million carats in
2018 up 67% from the 1.8 million carats achieved in 2017.

iv) Reform of Indigenization Laws
A major step forward implemented by the new government has been the repeal of the indigenization laws which required all businesses to have a 51% equity interest in the hands of indigenous Zimbabweans. This made Zimbabwe unattractive to foreign investors. This requirement has now been removed save for the platinum and diamond mining sectors.
V) Closure to Land Tenure
Significant progress has been made on the contentious issue of land tenure with bankable and transferrable 99 year leases close
to finalization.
Another major change has been the decision by the government discontinue the Mugabe era prohibition of leasing arrangements between white farmers who desire to lease and farm productively on farms allocated to black farmers. Joint ventures and leasing arrangements are now in place allowing a significant number of white farmers to return to farm in Zimbabwe.
1.3 Impact of Macroeconomic Developments on the Populace
• Since 2016 there has been a significant erosion in the welfare of citizens. This erosion has been transmitted through higher cost of living, erosion of value of savings and deterioration in service provision. There has been a real fear that the country was heading towards the volatility experienced in the hyperinflation period of 2007 – 2008. Foreign currency shortages have had a severe adverse impact on the availability of essential goods and services in particular, essential medical drugs, fuel and machinery spares and raw materials.
• The cumulative impact of all these developments has been to erode the quality of life of most, it not all Zimbabweans.
• Since October 2018, there has been a deterioration in macroeconomic stability as parallel market rates of exchange skyrocketed leading to speculative price increases that saw prices of basic food items as well as the cost of transport and rentals soaring out of the reach of ordinary citizens whose disposable incomes have been severely reduced by inflation and increased taxation.
• The current level of trust by most citizens in public institutions is still very low given past experiences with hyperinflation ( 2007-2008) when savings were wiped out. As a consequence of this experience confidence is very fragile in Zimbabwe leading to panic and over-reactions when there is any hint of possible loss of currency value.

QUESTION # 2
How did the July elections impact Zimbabwe`s economy?
1.Overview
In the run up to the elections there was a surge of optimism across Zimbabwe generated by a number of developments among which were the following: –
• Ushering in of a new national leadership after the resignation of President Robert Mugabe – in power for 37 years.
• A very peaceful and relatively open election campaign period.
• Expressions of support for Zimbabwe from broad sectors of the international community.
2. Post- Election Violence
The optimism that swept across Zimbabwe was shattered by the discord around the announcement of election results and the post-election violence on August 1, 2018. Confidence was severely undermined and country risk escalated. The expected FDI inflows did not materialize as expected although there are significant numbers of potential foreign investors visiting Zimbabwe to make inquiries. A few key investors have now made commitments.
3. Post -Election Political Polarization
The legal challenges against the election results at the Constitutional Court and the refusal ty the main opposition to accept the legitimacy of Presidentelect Emmerson Mnangagwa has resulted in deep political polarization which has severely dented business confidence for both foreign and domestic investors. While the polarization is a reality it is also a fact that the ruling party emerged from the election with a two thirds majority in Parliament thus giving it a strong mandate to carry out the required legislative reforms particularly those needed to align existing laws to the 2013 constitution.

4. Impact on Value of Local Currency
In the period following the resignation of President Mugabe and the July 2018 elections the depreciation of the local Zimbabwe currency (the RTGS or “Real Time Gross Settlement” balance and the “Bond Note”) was around 30-40%. The local currency has significantly lost value in the post-election period – at one point in October 2018 reaching a low of around 500% devaluation before stabilizing at around 340% devaluation in the parallel (or unofficial) market. This is despite an official position putting the local currency at parity with the United States Dollar.
5. Deepening Foreign Currency Situation
The post-election period has seen a deepening of the foreign currency shortage as United States Dollars continue to disappear from the formal markets. The consequence of these shortages have had severe adverse impact on the availability of imported raw materials, fuel and medical drugs. The most severe impact has been felt in the area of medical care as hospitals and pharmacies have run out of imported medical drugs thus putting the lives of many ordinary Zimbabweans at risk
6. Tightening Liquidity and Cash Shortages
Zimbabwe has been experiencing cash shortages in the banking sector since the introduction of a local currency (bond notes) in November 2016. These cash shortages remain in place four months after the July 2018 elections.
7. Significant Increase in Tourist Arrivals
Following the July 2018 elections there has been a surge in the number of tourist arrivals in Zimbabwe. Tour operators and resort hotels are reporting increases of around 25-30% compared to the same period last year. Hotel operators in the Victoria Falls resort area are reporting occupancy levels last seen in the 1997-98 period for the forthcoming festive season with average occupancies around 65%.
8. New Mining Investments
Some long term investors have come on board including two Australian mining companies who have projects in oil and gas exploration in Northern Zimbabwe and a Lithium mining operation near Harare, respectively. A Chinese investor is considering setting up a major steel plant in the Midlands area while another company is planning opening a major platinum mine.
9. Financial Commitments By UK Financial Institutions
Of note has been the financial commitment made by The CDC ( The UK Government`s Commonwealth Development Corporation) to make lines of credit available to the private sector in Zimbabwe. Although of limited amount given Zimbabwe`s significant requirements for financial support , this commitment is symbolic as it represents the first such financial commitment by the CDC in almost two decades.
10. Delegations from EU Governments in the Post-Election Period
The post -election period has also witnessed the visit to Zimbabwe by high powered delegations (combining political and business leaders) from China, Germany and Belgium among others.

QUESTION #3
Is President Emmerson Mnangagwa making any Reform efforts, and if so, what progress is being made? What are some for the hurdles to making economic reforms?
1. Overview
My considered view is that there is a crisis of expectations in Zimbabwe.
The ordinary person expected a very quick turnaround of the economy following the July 2018 elections. These expectations are misplaced. Zimbabwe has been in the grip of misrule for 37 years and the damage done to the economy to the country’s reputation and its institutions will take many years, if not, decades to repair.
It is from this perspective that I evaluate what President Mnangagwa has achieved since the July 2018 elections.
2. Evaluation of Progress
2.1. What has been achieved to date?
i) Cabinet Composition
There was wide support for President Mnangagwa’s decision to let go long-serving party loyalists and bring in fresh talent into a significantly trimmed cabinet. Key new appointments were made in the ministries of Finance, Industry, Mines and Transport-all now headed by technocrats. The private sector in Zimbabwe welcomed these appointments.
This cabinet has only been in office since September 2018. It is too early to objectively evaluate their performance after just three months in office.
ii) Opening up of Political Space
• The Political Space has been opened up significantly. Zimbabweans now express themselves much more openly than during the Mugabe era. Press freedoms are in place for the print media while the state electronic media is still to be reformed and liberalized.
• Political demonstrations are allowed and the recent demonstration by the main opposition on November 29, 2018 is a case in point.
• The move to open to the public and to broadcast live on national television the proceedings of the Constitutional Court electoral challenge hearings as well as the public hearings held by the Commission on the post-election violence of August 1, 2018 are both major milestones in establishing transparency in Zimbabwe.
iii) Anti-corruption drive
• Several prosecutions of high level people are currently underway. While there is perceptions in some quarters that there is political bias in the selection of those to be targeted –
the prosecutions indicate a toughening of the President’s stance against corruption.
• Legislation has recently been passed to toughen measures against money laundering and illicit transactions on the parallel markets.

iv) Change of leadership narratives from focus on politics to focus on the economy
The current government has moved sharply to refocus on economic matters. The mantra “Zimbabwe is Open for Business” is now the mantra of Government. However, the private sector wants to see more action than rhetoric on the ground and continues to press government for accelerated reforms especially in the areas of fiscal reforms and ease of doing business.
v) Articulation of a National Vision and Economic Road Map for Zimbabwe.
The President has articulated Vision 2030 whose goal is to turn Zimbabwe into an Upper Middle Class Economy by 2030 with a per capita GDP exceeding US$3 500 per annum. Zimbabwe is currently a lower middle class economy.
President Mnangagwa’s Government in October, 2018, launched the Transitional Stabilization Plan (TSP) which provides a road map to economic recovery for the next three years. Subsequent to the launch of the TSP the government put together a National Budget under the theme “Austerity for Prosperity”. This budget – announced on November 22, 2018 puts the attainment of fiscal balance as the centre-price of the recovery plan. The key goals are well-articulated and include: –
• Reducing the fiscal deficit to 5% of GDP by 31 December 2018 from a projected 11.6% by 31 December 2018. The intention is to achieve this through cuts in Government expenditure, drastically curtailing issuance of Treasury Bills and desisting from resorting to Central Bank Overdraft Facilities.
• Expanding revenues through taxation measures. Two very significant taxation measures have already been implemented.
• Reducing the current account deficit by compressing imports and collecting import duties on luxuries in hard currencies.
• Shifting expenditure from consumption to capital or productive spending.
• A GDP growth target of 3.1% in 2019 down from a projected 4% growth in 2018.
• An average inflation of 10% by end of 2019 down from 20.9% in October 2018.
• An aggressive timetable for reforming state owned enterprises has been announced.
• Implementation of Debt Resolution Program with international lenders before the end of 2019.
• The Government has embraced the proposal for an IMF Staff Monitored Program ( SMP) which is about to commence.
vi) Aligning Zimbabwe`s Laws to the 2013 Constitution
The perception of most observers is that Zimbabwe is moving too slowly on the road to aligning its statutes to the new constitution.
My investigations revealed that of Zimbabwe`s 299 pieces of legislation 255 of these needed to be aligned to the constitution. To date, I am told, 206 of these statutes have been aligned to the new constitution with only 49 outstanding. Among the outstanding ones are the two controversial pieces of legislation namely, POSA (Public Order and Security Act) and AIPPA (Access to Information and Protection of Privacy Act) which are widely regarded as being curtailing civil liberties.
On enquiring what the way forward is with these statutes I learnt that the reform of these statutes is on the agenda of the current Zimbabwean Parliament.
2.2 Where has progress been less than expected from a business perspective?
i) Reduction in Government Bureaucracy
• While the size of the cabinet was reduced, it is the private sector`s view that much more needed to be done to reduce head-count at the top – at both ministerial and civil service levels.
• Although the President, Cabinet and senior civil servants and executives of state enterprises will take a 5% pay cut from January 2019, the public wants to see more sacrifices borne by top government leaders than is currently the case. This is necessary so as to make the hardships endured by the ordinary citizen more bearable.
ii) Implementation of measures to improve Country
Competitiveness.
• Very high operating costs driven by currency distortions, high cost of utilities and generally high cost of doing business still prevail.
• Although the Government has established a one-stopinvestment authority (ZIDA – Zimbabwe Development Agency), its operationalization is still unclear to the private sector.
• Policy co-ordination across Government agencies requires optimization so as to minimize frustration for prospective investors due to regulatory bottlenecks.
Iii) The Sequencing of Policy Measures has been less than optimal.
• The implementation of taxation measures ahead of government expenditure cuts was very badly received by an already overtaxed population that wanted to see the benefits of the privileged elites in the public sector reduced first before new taxes were imposed.
• The private sector understands the need for Government to create fiscal space through taxation if it is to curtail printing of money. However the sequencing of the measures could have been handled better.
iv) Anti-corruption Drive needs to be more vigorous
The private sector views both private sector and public sector corruption as cancers that need to vigorously attacked otherwise they will frustrate economic reform efforts.
v) Currency Reforms
• There is a significant section of the private sector that wants to see currency reforms done immediately so as to remove the current pricing distortions as well as the system of allocating foreign currency which is prone to abuse.
• Another view, however, is that currency reforms cannot be undertaken without two major issues being tackled first. These two issues are; the need for fiscal discipline on the part of government, and the need to have in place a Foreign Currency Stabilization Fund to stabilize any domestic currency which may be introduced as part of the currency reforms.
2.3 What are some of the hurdles to making economic reforms?
There are two major categories of hurdles that face the Government of Zimbabwe as it embarks upon economic reforms. The first category is that of Economic Sanctions imposed on Zimbabwe by the USA (ZIDERA Act of 2001 as amended in 2018); Canada and the European Union. The second category is to do with the potential adverse consequences of Economic Reforms. Let me address each in turn.
2.3.1 The Impact of Economic Sanctions on the Post-Election Economic Reform Agenda in Zimbabwe
Sanctions continue to retard economic recovery in Zimbabwe in a number of important ways.
i) Trade Sanctions
In Zimbabwe, trade sanctions impact negatively on economic growth through denying the country access to foreign lines of credit, which ordinarily finance external trade and access to markets, particularly the USA market, through exclusion from AGOA. Furthermore, the country’s export competitiveness is adversely affected by negative perceptions of the country resulting in high country risk profile translating into higher country risk premiums.
Due to the above the private sector in Zimbabwe finds it very difficult to access affordable external financing to retool and modernize plant and equipment and access technology.
ii) Financial Sanctions
The Zimbabwe Democracy and Economic Recovery Act (ZIDERA) has proved to be a great obstacle for Zimbabwe to access foreign finance. USA financial institutions are not at liberty to provide well-structured financial support against Zimbabwe’s minerals (gold, platinum, cobalt, lithium, etc.,) due to OFAC compliance rules. The same it for banks in Europe due to compliance, reputation and association risks.
As a result of the impact of ZIDERA on the financial sector, the Zimbabwe banks have lost more than 100 corresponding banking relationships over the past 10 years.
The strong view of the private sector in Zimbabwe is that the imposition of sanctions on Zimbabwe by the US and the EU have branded Zimbabwe and its entire financial linkages with the rest of the world as representing high risk thereby making the country a compelling target for de-risking interventions by leading correspondent banks in the USA and Europe. iii) Economic Sanctions
Due to a combination of sanctions and its own bad track record of debt servicing Zimbabwe is unable to access balance of payments support and credit and technical support from most of the major multi-lateral Financial Institutions (MFIs).
The private sector’s view is that the country’s failure to access long term concessionary funding from developmental institutions such as the World Bank and the African Development Bank (AfDB)-among others, has created an unsustainably large deficit in infrastructure development in Zimbabwe – in particular the rail, road and water related infrastructure. The dilapidated state of all these constitutes a real tax on business by hard-wiring inefficiencies into the entire economy.
Businesses in Agriculture, Manufacturing, Mining, Tourism, Financial Services and others all desire to see sanctions removed so that country risk is reduced and access to affordable long-term credit is restored while access to global markets is opened up.
The private sector’s strong view is that sanctions – although they are supposed to be targeted at certain individuals and entities – have the unintended effect of pulling down the entire economy of Zimbabwe and the welfare of all its citizens. Sanctions do constitute a real stumbling block to the efforts of the current Government to get the country’s economy moving forward again.
2.3.2 The Unintended Potential Consequences of Economic Reforms
In embarking upon Economic reforms that are driven by a desire to restore fiscal and current account balance, and to liberalize the economy through currency and regulatory reforms, the government is caught between a rock and hard place.
While tough economic reforms are unavoidable and long overdue, their impact will cause significant pain on the intended beneficiaries – the citizens – at least in the short to medium term.

Four potential unintended risks stand out: –
• Recession Risk
Will the Government’s reversal of expansionary fiscal policies (printing money to support agriculture, for example) tip the country into a contraction phase? If so, for how long?
Will increased taxes (2% on financial transactions and increased fuel duties) suck out too much from people’s disposable incomes precipitating a form of recession?
• Inflation Risk
If market forces are allowed to prevail in the allocation of the scarce foreign currency will there by a deep devaluation causing local prices to run and pushing the country into an inflationary spiral?
To some extent this has already happened as informal markets took a position on the currency. Should the Government mobilize a stabilization fund to support a local currency first before introduction currency reforms. Where does this stabilization fund come from given the current international isolation of the country and the existing sanctions?
• Will the reforms cause socio-political instability?
There is no doubt that in the short term (12-18 months) the reforms will cause a great deal of hardships among Zimbabwean citizens – particularly the vulnerable. Will this cause civil strife in the form of riots and escalating political tensions.
• Will the reforms lead to increased company failures?
As the reforms begin to bite there is every possibility that some companies may fail as disposable incomes drop, as liquidity tightens and as interest rates rise.
All the above pose a significant hurdle to the policy makers in President Mnangagwa’s administration.
The observation of the private sector is that because of the above risks, the proper sequencing and pacing of the reform programme becomes crucial.
A ‘big bang’ approach to economic reforms may have dire unintended consequences given the fragility of the economy. In the absence of significant international financial support, a gradual and nuanced reform process may be more appropriate.

QUESTION #4
What alternatives does Zimbabwe have should the USA fail to take action to support Zimbabwe’s economy?
Overview
It is our view that Zimbabweans are now desperately impatient for real economic advancement. Unless the populace sees progress the pressure on the politicians will be relentless. This can lead to desperate actions on the part of Zimbabwe should the USA and EU fail to respond to Zimbabwe’s request for urgent economic support and removal of sanctions.

4.1 Options available to Zimbabwe
As private sector observers we note that the Government of Zimbabwe is not without options – if it fails to secure USA and EU financial support.
We make no comment on the advisedness or otherwise of these options – but simply to state that these options do exist.
i) Embrace China’s BRI initiative for Africa.
China has placed on the table a potential US$60bn investment package for investment across Africa as part of its Belt and Road Initiative (BRI). Many African countries are scrambling to get a share of these resources. Shunned by the USA and The EU it would be reasonable to assume that Zimbabwe will consider making a strong attempt to access this large pool of investment funds even if this entails mortgaging substantial share of its natural resources to achieve this.
ii) Develop Closer stronger economic ties with Russia
There have already been a number of Russian delegations to Zimbabwe in the recent past – which is indicative of a desire by Russia to forge economic ties with Zimbabwe.
iii) Closer Economic ties with Eastern European Countries such as Belarus.
Our observation is that should the USA and the EU fail to support Zimbabwe these fledging relations will become stronger.
iv) Embrace investors of questionable credentials.
When a government is pushed into a corner there is every reason to believe that it will take any action necessary to enable it to respond to the popular demands of its citizens if the traditional or normal avenues fail to yield results.
V) Revert to ruinous populist policies of the Mugabe era
It is not inconceivable that if the present government fails to secure Support from the international financial institutions despite its commitment to reform it may, in frustration, revert to populism catastrophic consequences for a country with so much promise.
Our view as the private sector is that Zimbabwe’s government desires to strengthen its relationship with its traditional business partners which include the USA and EU. Zimbabwe has already applied to re-join the Commonwealth – a strong indicator that it wants to improve relations with the UK-led grouping and with the West in general. Sanctions present a formidable obstacle blocking the way to the resumption of these partnerships.

Conclusion
Zimbabwe is at cross roads. The Government of President Mnangagwa looks determined to make some tough economic and political reforms. To us in the private sector the President comes across as being sincere in his quest for taking Zimbabwe forward. He appears to have sufficient conviction and resolve to rebuild Zimbabwe and turn it into a successful and proud nation occupying its rightful place among the community of nations. His government recognizes that for Zimbabwe to be welcomed among the community of nations it must acknowledge and settle its debts. It must also put its house in order through better governance and economic management. The government of President Mnangagwa appears to be committed to both.
The President is aware of the huge expectations that the people have. He recognizes that along the way there will be unavoidable pain for the people of Zimbabwe – over and above the traumas they have endured over the past two decades.
As Zimbabwe’s private sector we are fully supportive of the reform programs embarked upon by our Government. We want to see more action and less rhetoric and better co-ordination and sequencing. We will give our Government support in the form of advice and constructive criticism as well as through playing our part in raising production and exports, conserving foreign currency through import substitution and improving competitiveness through cost efficiencies and value addition.
It is the view of most in the private sector in Zimbabwe that the United States government can find in Zimbabwe a worthy and strategic partner. The road to that possibility starts here in the Senate Foreign Relations Sub-Committee on Africa and Global Health Policy.
It is my strong and unambiguous submission, Mr Chairman, that the private sector in Zimbabwe urges the United States of America to urgently repeal Zimbabwe Democracy and Economic Recovery Act ( ZIDERA) of 2001 ( As amended in 2018) .
Zimbabwe is going to be a pivotal nation in the Southern Africa sub-region –a country in whom the United States may find a worthy and strong partner.

I Thank You, Mr. Chairman, for the opportunity to address this Senate SubCommittee at this particular juncture in the history of my country.

Appendix 1

JOE MUTIZWA
Joe is the Founder and CEO of PATHWAYS AFRICA a management consulting company based in Harare –Zimbabwe and working with business organizations within Zimbabwe and Sub-Saharan Africa.
Prior to his current focus Joe spent 32 years in various positions in the Zimbabwe private sector. Joe served for ten years as CEO of Delta Corporation – then Zimbabwe`s largest listed company before taking early retirement in 2012 at age 58.
Joe is Chairman of The Zimbabwe Stock Exchange Listed Companies Forum
(Representing the 63 companies listed on the Zimbabwe Stock Exchange).
He is also Mangwana Capital (a venture capital company) and sugar refining company Starafrica. Joe serves as a non-executive director on several other boards including the board of the Reserve Bank of Zimbabwe..
After retiring from Delta Joe went to Oxford University to pursue a Master’s degree in Leadership offered jointly by Said Business School and HEC-Paris- graduating in June 2014with distinction.
Joe has written seven books on leadership since retiring as a full-time executive. Joe has consulted for 33 organizations since retiring- with a focus on leadership development for CEOs and Senior Executive Teams.
Apart from the Master’s degree mentioned above, Joe has a B.Sc. degree (with first class honours) from LSE (The London School of Economics) as well as an MBA from the University of Zimbabwe.
Joe is married with 3 adult children and 3 grandchildren.

Appendix II
ZIMBABWEAN COMPANIES WHERE JOE MUTIZWA HAS OFFERED CONSULTANCY SERVICES SINCE RETIRINGB FROM FULL TIME CORPORATE EMPLOYMENT IN 2012
1. AMH Holdings – Media
2. Art Corporation – Manufacturing
3. Bindura Nickel – Mining
4. BOC Gases (Zimbabwe) – Trading
5. CABS – Financial Services
6. CIMAS – Medical Services
7. Dairibord Holdings Limited – Manufacturing
8. Econet Wireless Zimbabwe – Telecoms
9. Edgars Group – Retail
10. First Mutual Holdings Limited – Insurance /Property
11. Freda Rebecca – Mining
12. Mimosa – Mining
13. National Building Society (NBS) – Financial Services
14. National Foods Limited – Manufacturing
15. Nedbank – Financial Services
16. NetOne Cellular – Telecoms
17. Nicoz Diamond – Insurance
18. Nissan Clover Leaf – Motor Vehicle Retail
19. NMB Bank – Financial Services
20. NSSA – Insurance & Pensions
21. Schweppes Holdings Africa Limited – Beverage Manufacturing
22. Stanbic Bank – Financial Services
23. Steward Bank – Financial Services
24. TelOne – Telecoms
25. TSL – Tobacco
26. Unilever Zimbabwe – Fast Moving Consumer Goods
27. ZB Bank – Financial Services
28. ZETDC – Power General & Distribution
29. Zimpapers Group – Media
30. Zimplats – Mining

FORTY-two-year-old Nokuthula Sibanda was on Tuesday crowned Miss Zanu-PF Bulawayo Metropolitan province at a ceremony held at Davis Hall.

The modelling contest that saw a 70-year-old making it in the top three, was held to select the province’s representatives for the national finale.

The finale will be held during Zanu-PF’s 17th National People’s Conference in Esigodini that will run from December 10 to 15.

Sibanda beat six other contestants relegating Ruth Shelton (33) to first princess and Evelyn Nyambe (70) to second princess.

Following her crowning, Sibanda, who is Zanu-PF’s provincial secretary for transport, said she would do her best to represent the province at the national finals.

“I’m confident that I’ll bring the national crown home. The competition was very stiff as there were many talented ladies on stage who could’ve won the top prize,” said Sibanda, a mother of three.
She urged more women to participate in the revolutionary party’s pageant.

“This pageant encourages us to be clean and confident as women. I recommend more women to participate in these pageants organised by the party in future,” said Sibanda.

The competition was a mixture of old and young with winners being drawn from two categories, Youth and Women’s League.

The judging panel comprised Memory Baye, Helen Charimari and Dominica Mringi.

The judges also selected the Top Youth League model and Women’s League model.

The top youth model was Shelton with Sibanda being the top women’s league contestant.

According to Mringi, Sibanda took the crown because she was well dressed and confident on stage.

“When we were looking for a queen, we looked at a woman who walked with confidence and had stage presence. In all categories, the queen took the cup — her attire was on point and you could see that she matched everything from her shoes to dress and jewellery,” said Mringi.

Ahead of the national finals, Mringi said Sibanda and her princesses would be taken for grooming and deportment lessons at the Ministry of Women’s Affairs, Gender and Community Development offices at the Mhlahlandlela Government complex in Bulawayo.

Among the delegates who watched the contest were Zanu-PF Bulawayo provincial Women’s League chair Cde Eva Bitu, central committee members Cdes Molly Mpofu and Anna Ngwabi.

State Media

Zimbabwe is fast degenerating into a regional security threat as its economic situation worsens, the opposition MDC party said yesterday and announced plans for more demonstrations against government.

Last week, the party petitioned the Southern Africa Development Community (Sadc) and African Union (AU) to intervene to stop the situation from worsening and spokesperson Jacob Mafume said more needed to be done to bring Zimbabwe’s situation under control.

“We will go on a regional offensive in the Sadc region whereby we will definitely discuss with regional leaders about the situation in Zimbabwe,” Mafume said.

“The economy is deteriorating and it will become a security threat to the whole region. We believe the leadership in the region; in particular, the Namibian President [Hage Geingob] must be seized with this matter as he is currently the head of Sadc.

The MDC spokesperson said they resolved to take their demonstrations out of Harare as their supporters from outside the capital are also calling on the party leadership to help them register their dissatisfaction with the country’s state of affairs.

“The party resolved to embark on a series of actions in all towns within the country. We will do demonstrations similar to those that we had in Harare; people outside Harare want to express themselves. This will be done before the Christmas break.”

Mafume said the party had also discussed the recently concluded commission of inquiry into the post-election violence of August 1, in which the military allegedly killed six civilians, headed by former South Africa President Kgalema Motlanthe.

Conflicting statements coming from government and the commission itself raised questions about the credibility of its report, he added.

“(The commission)’s results are now taking the form and nature of the Zec results – at some point they say it’s a full report while on another they say there is no report and we are now worried that the report will be doctored should it come out. There are now too many speaking for that commission, one George Charamba (Deputy Chief Secretary to the President and Cabinet) and the commission is also speaking on its own behalf.”

Mafume said there were no issues against MDC deputy president Elias Mudzuri despite a public humiliation at the party’s demonstration last week. Mudzuri did not attend the meeting following a family bereavement, he said.

NewsDay

By Own Correspondent| Justice minister Ziyambi Ziyambi today torched a storm in parliament when he refused to answer questions from opposition legislators arguing that the MDC should first recognise the presidency of the appointing authority Emmerson Mnangagwa.

The development followed complaints from opposition legislator Job Sikhala that ministers were bunking parliament despite knowing that Wednesday was question time.

However Ziyambi said:

“I am unable to respond until they (MDC) recognise the appointing authority who is President Mnangagwa.”

Watch the videos below for this and more:

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HARARE – Rural teachers are set to embark on a 250 km march from Mutare to Harare in a protest to demand salaries in United States Dollars and demanding higher bonus payment.

In a letter to Finance minister Mthuli Ncube, Amalgamated Teachers Union of Zimbabwe secretary general Robson Chere said they are going to walk for a staggering 10 days from
December 9 to 19 from the eastern city to the capital Harare.
“In terms of section 59 of the Constitution , teachers are going to march demanding that their salaries be paid in US dollars and that their
bonuses be paid in full. Teacher’s salaries are being paid in RTGS, contrary to the 2012 negotiated agreement that salaries would be paid in United States dollars.”
Chere said the teachers will camp at the ministry’s offices until their issues are addressed.
“The teachers will camp at the ministry of Finance and Economic Development offices until their grievances are met,” he said.Daily News

Zanu PF’s Mashonaland West political commissar Simon Solomon appeared before Harare magistrate Rumbidzayi Mugwagwa on charges of illegally selling a farm for $12 000.
He was arrested yesterday and detained at Kadoma Central Police Station before appearing in court today where he filed a bail application.
The state, represented by investigating officer Elizabeth Muzorodza opposed the bail application saying the accused has so many pending cases at Kadoma CID and he is capable of interferring
with the witnesses.
“Solomon is an influential person in Kadoma therefore if he is given bail, witnesses might be victimised,” Muzorodza said.Daily News

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HARARE – With factionalism refusing to die in Zanu PF, anxious power-brokers in the party are scheming to keep President Emmerson
Mnangagwa at the helm of both the former liberation movement and the government for the next decade, the Daily News can report.
Well-placed sources who spoke to the newspaper yesterday said the move by influential Zanu PF officials in its provincial structures was intended to keep at bay “ambitious” party bigwigs who stand accused of harbouring “unwelcome presidential ambitions”.
All this comes after one of Mnangagwa’s two deputies in the party and in government, Constantino Chiwenga, recently told Zanu PF supporters that Mnangagwa was “the chosen one” — in a surprising public re-endorsement of
the president which fired anew raging speculation that a faction in the former liberation movement
wanted the Zanu PF leader to serve only one term as president.
It also comes after Mnangagwa himself had, from the blue, hinted in September that he would serve his two terms as the country’s president,
in line with Zimbabwe’s new Constitution.
What makes all these developments more interesting is that Zanu PF will hold its annual conference in Esigodini, Matabeleland South, next
week — where Mnangagwa will address party delegates for the first time since he dramatically assumed the leadership of the former liberation movement last year.
One of the sources who spoke to the Daily News said provinces were “stampeding” to nominate Mnangagwa as the party’s candidate for the country’s 2023 presidential elections — a mere four months after the Zanu PF leader began his first term as head of the country following the hotly-disputed July 30 polls.
In this regard, Harare, Bulawayo, Mashonaland West, Mashonaland East, Matabeleland South and North provinces, had already endorsed
Mnangagwa as their 2023 presidential candidate.Daily News

FORTY-two-year-old Nokuthula Sibanda was on Tuesday crowned Miss Zanu-PF Bulawayo Metropolitan province at a ceremony held at Davis Hall.
The modelling contest that saw a 70-year-old making it in the top three, was held to select the province’s representatives for the national finale.
The finale will be held during Zanu-PF’s 17th National People’s Conference in Esigodini that will run from December 10 to 15.
Sibanda beat six other contestants relegating Ruth Shelton (33) to first princess and Evelyn Nyambe (70) to second princess.
Following her crowning, Sibanda, who is Zanu-PF’s provincial secretary for transport, said she would do her best to represent the province at the national finals.
“I’m confident that I’ll bring the national crown home. The competition was very stiff as there were many talented ladies on stage
who could’ve won the top prize,” said
Sibanda, a mother of three.
She urged more women to participate in the revolutionary party’s pageant.
“This pageant encourages us to be clean and confident as women. I recommend more women to participate in these pageants
organised by the party in future,” said
Sibanda.
The competition was a mixture of old and young with winners being drawn from two categories, Youth and Women’s League.State media

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The State has set January 28, 2019 as trial date for former Foreign Affairs minister Walter Mzembi who is accused of various corruption related charges.

Mzembi is standing trial for allegedly misappropriating funds meant for the 2013 United Nations World Tourism Organisation General Assembly. He is also accused of disposing of 16 PVA television screens by means of donating, loaning or hiring them to various institutions and church organisations without approval from the Finance ministry.

Initially, the State had set November 19 and 29 as Mzembi’s trial dates. However, trial failed to commence when Mzembi fell sick and travelled to South Africa to seek treatment.

Last week, his Lawyer Job Sikhala told the court that the former Tourism minister is critically ill with colon cancer and is undergoing chemotherapy in South Africa.- Daily News

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By Farai D Hove| ZANU PF leader Emmerson Mnangagwa was during the day trapped as a court received demands for the much awaited Motlanthe report.

Prosecutors working under Mnangagwa have pursued a case against Mr Wisdom Mkhwananzi who police arrested during the Motlanthe commission held in Bulawayo while giving his witness statement. Two other citizens were also arrested at the commission hearings a few weeks before.

In a statement, the MRP spokesman, Mr. Njabulo Ngwenya, said the Wisdom Mkhwananzi’s case failed to kick start today at Tredgold Court 1 in Bulawayo. The state tried frantically to have Mkhwananzi remanded to a latter day, pending authorization of the case by the Prosecutor General.

“Mkhwananzi, who is a victim of the ethnic Gukurahundi genocide was violently arrested after testifying before the Kgalema Motlanthe Commission of inquiry into the August 1 killings in Harare.

“Mkhwananzi pointed at the portrait of the President of Zimbabwe, Emmerson Mnangagwa as the person who had contributed to him being an orphan.
Mkhwananzi has been harassed by state security agents since the day of his arrest and his case will proceed by way of summons.

“The other three MRP activists who were arrested at the same function for instilling violence, had their case Postponed to the 18th of December, after the defence led by Maqhawe Mpofu and Dumisani Dube of Abammeli Lawyers for Human Rights, demanded the footage of the proceedings of the day in question and the report of the commission.

“We applaud all those who came in numbers in support of our harassed activists. Our gratitude goes to the few brave ex ZPRA freedom fighters who rendered their valued support.

Sisonke Sibambene Singu Mthwakazi Sizokulungisa.”

FORTY-two-year-old Nokuthula Sibanda was on Tuesday crowned Miss Zanu-PF Bulawayo Metropolitan province at a ceremony held at Davis Hall.

The modelling contest that saw a 70-year-old making it in the top three, was held to select the province’s representatives for the national finale.

The finale will be held during Zanu-PF’s 17th National People’s Conference in Esigodini that will run from December 10 to 15.

Sibanda beat six other contestants relegating Ruth Shelton (33) to first princess and Evelyn Nyambe (70) to second princess.

Following her crowning, Sibanda, who is Zanu-PF’s provincial secretary for transport, said she would do her best to represent the province at the national finals.

“I’m confident that I’ll bring the national crown home. The competition was very stiff as there were many talented ladies on stage who could’ve won the top prize,” said Sibanda, a mother of three.
She urged more women to participate in the revolutionary party’s pageant.

“This pageant encourages us to be clean and confident as women. I recommend more women to participate in these pageants organised by the party in future,” said Sibanda.

The competition was a mixture of old and young with winners being drawn from two categories, Youth and Women’s League.

The judging panel comprised Memory Baye, Helen Charimari and Dominica Mringi.

The judges also selected the Top Youth League model and Women’s League model.

The top youth model was Shelton with Sibanda being the top women’s league contestant.

According to Mringi, Sibanda took the crown because she was well dressed and confident on stage.

“When we were looking for a queen, we looked at a woman who walked with confidence and had stage presence. In all categories, the queen took the cup — her attire was on point and you could see that she matched everything from her shoes to dress and jewellery,” said Mringi.

Ahead of the national finals, Mringi said Sibanda and her princesses would be taken for grooming and deportment lessons at the Ministry of Women’s Affairs, Gender and Community Development offices at the Mhlahlandlela Government complex in Bulawayo.

Among the delegates who watched the contest were Zanu-PF Bulawayo provincial Women’s League chair Cde Eva Bitu, central committee members Cdes Molly Mpofu and Anna Ngwabi.

Below are pictures of ZANU PF leader Emmerson Mnangagwa in Harare today as he preached about outward cleanliness. He tweeted: ”

“It was an honour to take part in the National Clean-up Campaign, which seeks to galvanise us as a society to protect and preserve our environment.

“We need to keep our villages, towns and cities clean and hygienic for this generation and generations to come.

“We must therefore practice good environmental and waste management through increased advocacy, education, training and awareness. We must do this from a place of pride, not just necessity. A clean environment contributes to a strong, healthy nation, with a high quality of life.

“Keeping our environment clean is therefore a duty, a moral responsibility and a patriotic act!”

Own Correspondent| At least two people died and seven others left in critical condition after succumbing to pressure during a 10 km run that was a pre-requisite in job recruitment at the Civil Aviation Authority of Zimbabwe (CAAZ) in Harare on Tuesday.

Inside sources said that twelve people who were listed candidates for security personnel posts, fainted during the course of the 10km run around mid-day on Tuesday.

The source said the twelve were rushed to Parirenyatwa Group Of Hospitals and two of them later died.

The source said the possible causes of death includes heat, hunger and exhaustion.

“The twelve were part of about 1200 people who had responded to a CAAZ job offer for positions as security guards.

“Due to the overwhelming response the recruitment exercise was delayed and the potential recruits ran in the sweltering afternoon heat.”

ZimEye.com efforts to get an official comment from the CAAZ were not successful at the time of writing.

Own Correspondent|The Acting British Ambassador to Zimbabwe Simon Thomas today made a courtesy call on opposition MDC President Nelson Chamisa at his Morgan Tsvangirai House offices in the capital.

Details of the private meeting have not been made public but Chamisa indicated excitement at meeting with the ambassador.

“Great and fantastic engagement with the British Acting Ambassador, Simon Thomas at Morgan R Tsvangirai House today,” said Chamisa on Facebook.

By Own Correspondent| Opposition MDC has raised the flag over a judgement by a High Court judge, Justice Musakwa where he has given a four year sentence to Zanu PF murderers in a case that has left Mudzi residents and the Magura family dumbfounded.

Zanu PF’s Chimukoko ward 3 chairperson, David Chimukoko and his secretary Graciano Kazingizi were sentenced to four years in jail, one year which was suspended on condition of good behaviour, for the murder of 67 year old Cephas Magura, the MDC Ward 1 Chairperson, in 2012.

Said the MDC in a statement:

“In passing the sentence, Justice Musakwa said the case cannot be classified as murder or culpable homicide but qualifies as a case of public violence; therefore the accused will serve just three years.

The same High Court, slapped Last Maengahama and Tungamirai Madzokere with a 20-year sentence on trumped up charges of fatally stoning Petros Mutedza at Glen View 3 shopping Centre during an MDC rally in May 2011. The only difference is one is Zanu PF and the other is MDC!

Sekuru Cephas Magura, died from injuries sustained during an assault by David Chimukoko and Graciano Kazingizi at Chimukoko Business Centre. The MDC had organised a rally there with permission from the police.”

MDC Communications Department

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In a sudden twist of events, Vice President Constantino Guvheya Nyikadzino Chiwenga is reportedly planning to resign from his post after the Esigodini December congress it has been reported.

A central committee member from Mashonaland East who spoke on condition of anonymity revealed the alleged plot being planned by the Vice President.

“I can tell you mukoma that there has been a twist of events in the power matrix of the Revolutionary party,” the source said.

They added: “some comrades close to the General have been involved in a plan to convince him to resign from the Vice Presidency position so that he can have more power and free movement towards succeeding Number 1 (President Mnangagwa).”

“The feeling among the cdes especially from Mashonaland East is that now the General is overshadowed by number one in terms of his discharge of duty because most of the things that he is during has to be reported to or sanctioned by number 1. So, when he resigns but remains in the politiburo, he will wield much power and will have much time in planning the succession map.

“Recently there were reports that Number 1 and the General had buried the hatchet, yes that was true, but it was only true to the extent that they are now working together very well hence you see the show of unity in public events. But I want to assure you that, that does not take away the plan that is there to make sure the General assumes the post that is rightfully his.

“However, I would also want to be frank to you that there are some us who feel that when the General is there, he is much closer to the throne and controls the levers of power. We will have a problem if the General resigns and then Madam Oppah (Muchinguri-kashiri) takes over the post because she is friends with Mutsvangwas and you may not be sure what plan they may hatch. So we are toting to convince the General not to resign.

“The other thing also that you may want to take note of is the stampede to endorse Number 1 as the Presidential candidate for 2023 just 90 days after the harmonised elections. You are clearly seeing a panicking group of people within the revolutionary party who are not open to healthy democracy. We are not about to groom a dictatorship again, lets allow the congresses to elect the leadership that people deserve without duress”

Recently there were reports that President Emmerson Mnangagwa and Vice President Constantino Chiwenga have found each other ahead of the December ZANU PF conference.

ZANU PF is reportedly planning to effect a number of changes to the party’s constitution and a clause that will recognize former President Robert Gabriel Mugabe as the founding Father of ZANU PF.

ZANU-PF has tentatively set December 11 to 16 as dates for its 17th Annual National People’s Conference to be held in Esigodini, Matabeleland South Province, where 5 000 delegates are expected to attend.

Source: Byo24 News

Terrence Mawawa|Prominent social media analyst Antony Taruvinga has described Victor Matemadanda’s remarks about adjusting the Presidential age limit as perilous and reckless.

See below Taruvinga’s statement:
The anti-Chamisa Amendment could draw the fiercest battle ever witnessed in the history of Zimbabwe. We will not continue to be spectators and bystanders while idiots masquerading as war vets play dices with our lives.

Battle lines have been drawn and as it stands we are at war with Zanu PF.
Zanu PF and the ‘war vets’ have now become a threat to our national security.

That section of the Constitution (term limits) is good as it is. If anything, amendments must be made to bar the old people from running for the Presidency. The
Amendment should have a lower limit of 30 years and upper limit of 65 years, not the nonsense Matemadanda is exuding.

And the Amendment, which is crucial to all and sundry, must go through a referendum so that the ordinary men who constitute the majority decide for themselves. It is now clear that the old people in Zanu PF have destroyed this economy.

We don’t need old minds to run a modern economy.There is nothing Mnangagwa can do torevive the battered economy. He is watching helplessly while the country is burning.Very old,clueless and unelected military man.

Mnangagwa’s appetite to eliminate Chamisa from the race is a clear testimony and an indication that Nelson Chamisa won the 30 July 2018.

By Own Correspondent| Parents with learners at a Masvingo Boarding School, Riverton Academy are in shock amid indications that the institution is set to hike school fees for the first term of 2019 to $9 600.

According to a leaked post-dated letter addressed to parents with children at the boarding school, fees will now be denominated in United States dollars while those paying in local currency will have to part with at least four times more the amount paid in US dollars.

Below is the letter:

However, an official at the school who refused to disclose his name telling the ZimEye reporter to send questions via email to the school said the institution had not hiked its fees.

“I am not aware of the purported communication you are talking about because our fees remain the same?” said the official.

“People can play around with letter heads and i am yet to see the letter which is proposing the fees hike.”

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By Own Correspondent| In a shocking development, two minor boys aged 16 and 17 from Epworth  in Harare have been arrested for the murder of an Avenues hooker, Samantha Hlahla.

Samantha, who was a known lady of the night was discovered brutally murdered in her apartment at room 25 Trocadero Court in the Avenues area of Harare two weeks back.

Her acquaintances said that some of Samantha’s property was missing as there were two television sets which could not be accounted for and the apartment appeared to have been ransacked, indicating that robbery also took place.

After sterling work, detectives from the Criminal Investigations Department (CID) managed to locate and arrest the two teenagers who were relaxed at their Epworth base.

The detectives then took the two suspects to Samantha’s former apartment so that they could explain and reenact what had happened on the fateful day.

When Samantha’s friend, acquaintances and former work colleagues learned that the detectives had brought the suspects to Samantha’s apartment they thronged the apartment to catch a glimpse of the killers and to hear what happened.

According to sources who were close to the ground, the two teenagers murdered Samantha for ritual purposes after they had consulted a traditional dealer in Mbare, who gave them money making charms, known in the vernacular as “kuromba”.

The teenagers are alleged to have been asked to collect human blood and when they were arrested detectives discovered calabashes of blood in their house.

The two suspects had previously consulted the same n’anga for love potions and when the potions seemed to have worked according to plan, they decided to go a step higher and get money making charms.

According to friends and associates, the two were Samantha’s regular clients which is why they were able to enter her apartment easily. They are expected to appear in court soon.

Samantha was buried at Zororo Cemetery along Seke Road. Her friends and workmates hired a commuter omnibus to ferry the deceased’s colleagues in the trade to Mufakose where mourners were gathered before proceeding to the cemetery for burial.

The ladies of the night reportedly caused chaos by exhibiting their skills of the trade and reenacting how the deceased used to earn her living.

By Own Correspondent| Progressive Teachers’ Union of Zimbabwe (PTUZ), Raymond Majongwe said that the opposition should not take lightly the utterances made by war veterans secretary-general Victor Matemadanda.

Matemadanda stroked a raw nerve yesterday when he called on Parliament to amend the constitution so that the minimum age for a Presidential candidate be raised from the current 40 years to 52 years.

The war veterans did not explain why they settled for 52 years and this has been construed as a way to block MDC president Nelson Chamisa from contesting in the next presidential election since he will be 45 years old in 2023.

Writing on microblogging site Twitter, Majongwe said:

“Cdes,Matemadanda is not just an ordinary Warvet. He was instrumental in removing Mugabe so his statements cannot be dismissed as hogwash. Take those statements seriously.”

We note with great concern the statements issued on the 4th of December 2018 by the Zimbabwe National Liberation War Veterans Association (ZNLWVA) on the revision of the constitutional provision of the presidential age limit from 40 years to 52 years.

It is unfortunate that such statements come at a time when the political legitimacy of the incumbent Mr Mnangagwa is still unresolved. We as the youth of the MDC see these statements as undemocratic, discriminatory, unprogressive and exclusionary tactics to silence the People’s President Advocate Nelson Chamisa and impede on the will of the Zimbabwean people.

It is thus very clear that they know that the People’s President Advocate Nelson Chamisa won the presidential election and they can’t stand the humiliation and fear another election so they would rather exclude him on disqualification.

We would like to remind the ZNLWVA and reiterate with great emphasis that this country is not a personal property of either Zanu PF or the War Veterans which they can take for granted at will.

It is clear that the youth of this country are nowhere near any agenda of Zanu PF and our future is not their priority. We advise the War Veterans Association that we as the youth, the future of Zimbabwe, will do everything possible to fight the advancement of such a proposal from every front, be it political, social, constitutional or otherwise, to safeguard our democracy and the future of this country.

These dictatorial power retention tactics have no place in the Zimbabwe we want to build and it is a pity that this is and has always been the focus of Zanu PF regardless of the fact that Zimbabweans are suffering as a result of their maladministration, bad governance and strategy deficiency.

Let it be known that we are prepared to safeguard and continue to advance the democracy that our liberation heroes fought for.

We are Vigilant enough, confident enough, alert enough and united enough to complete this change.

We will define, defend and secure our future.

Behold the New. Change that Delivers.

Brian Dube
MDC National Youth Spokesperson

ZANU PF leader, Emmerson Mnangagwa today appointed his wife, Auxillia, the Patron and Ambassador of the National Clean Up Campaign.

The campaign is aimed at eradicating littering, promoting cleanliness, recycling & waste management.

Mnangagwa officially launched the National Clean up campaign in Highfield early Wednesday morning.

More to follow…

By Own Correspondent| A movement for youths, #GenerationalConsensus is set to hold a press briefing in response to a statement by war veterans seeking to ammend the Constitution and make 52 years the minimum age for one to contest for presidency.

The movement, said their presser is in response to the “archaic, reckless, shocking and idiotic utterances by the Zimbabwe National Liberation War Veterans Association (ZLWVA), regarding amending the Zimbabwean Constitution in relation to the minimum qualification age limit for the post of President from the current 40 years to 52 years.”

ZimEye will be livestreaming the presser.

Refresh this page for this and more.

“…thanks to the Commission of Inquiry furore there is a new reading of AIPPA and I hope the responsible ministry takes note.”

Zanu PF leader, Emmerson Mnangagwa’s spokesman, George Charamba has told Zimbabweans who are angry over his boss’ hiding of the Motlanthe report on the 1 August military terrorism, to “cool it.”

Charamba said his boss, Mnangagwa made the undertaking way before the constitution of the Commission of Inquiry and before the Commissioners were even identified.

“Zimbabweans must cool it and take it easy. There is no need for excitement. Let us avoid the feat of crossing the river when we are still at the summit of a hill,” Charamba told the state media.

“I sit in several meetings involving emissaries of foreign governments and, more particularly, involving the President and the UN Secretary- General. In all those meetings, the President made an undertaking that both processes and outcomes of the Commission will be an open affair. That was well before Commissioners had even been identified, certainly well before the Commission had been sworn in.

“He does not need any modicum of motivation by twimbos to do the right thing. It’s a decision which he took a long time ago well before the Commission was constituted. That decision and commitment does not trash processes and formalities of receiving and digesting the findings of the Commission. That was the gist of my intervention, all of which was conveyed in simple, comprehensible English.

“The current furore over the issue is doubly needless in that it misreads a simple communication from Government. Secondly, it elides time and processes.”

Mr Charamba said Government picked up some critical lessons from the debate raised over the matter.

“But every cloud has a silver lining. There is a lot be bought from this mighty storm in the teacup,” said Mr Charamba.

“It gave everyone a peep into national mind, particularly a predisposition to suspect the intentions of the Government no matter how unfounded. The big gain is that from it we have inadvertently built a huge momentum against post-election violence and we should as a people harness that to very good effect for future elections.

“Secondly, it appears there is more sharpened reading of the law. I read someone saying somewhere that the Commissions of Inquiry Act is a colonial relic. Well and good, let’s deal with that so that we update our laws. More critically, I read someone saying Section 62 of our Constitution which gives citizens right to information is, in fact, echoed by Section 5 of AIPPA. What this says then is that at long last and thanks to the Commission of Inquiry furore there is a new reading of the Access to Information and Protection of Privacy Act. What this says then is that at long last and thanks to the Commission of Inquiry furore there is a new reading of AIPPA and I hope the responsible ministry takes note.”