Zimbabwe: New face to an old regime

As it stands, Zimbabwe is a fragile climate in which citizens are subjected to harsh police actions and the president has no short-term solutions – Anadolu Agency Source: Zimbabwe: New face to an old regime – Anadolu Agency ISTANBUL  President Emmerson Mnangagwa’s 150-percent fuel hike announcement almost three weeks ago triggered protests, which followed brutal police […]

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As it stands, Zimbabwe is a fragile climate in which citizens are subjected to harsh police actions and the president has no short-term solutions – Anadolu Agency

Source: Zimbabwe: New face to an old regime – Anadolu Agency

ISTANBUL 

President Emmerson Mnangagwa’s 150-percent fuel hike announcement almost three weeks ago triggered protests, which followed brutal police measures. With his words taking immediate effect, the public took to the streets. This was not the hope envisioned for a post-Mugabe government. The unrest continues to escalate each day, and Mnangagwa finds himself increasingly positioned between a rock and a hard place.

The fuel price increase is not a sudden decision but one made after an economic bottleneck caused by a lack of resources left little room for maneuver. Inflation is no stranger to Zimbabwe’s currency, and bond notes could only temporarily hold the crumbling economic pillars. Although Finance Minister Mthuli Ncube has expressed the introduction of a new currency, there has been no substantial progress or clarity as to how much of a change this would bring.

The protests ensued as the police resorted to iron-fist tactics to establish some form of order. Zimbabwean-based independent journalist Frank Chikoware explained that violent nighttime police raids and summary daytime trials were exacerbating the security condition. Furthermore, arrests do not leave enough time for any proper defense to be made. This is combined with an increase in public melancholy over the political affairs and people see the democratic future of Zimbabwe rapidly turning into merely an optimist’s far-fetched dream.

“While Mnangagwa is trying to portray himself as a reformist, he is not walking the talk as he continues to target those with dissenting voices, especially pro-democracy campaigners,” said Chikowore.

Although the president brought a new ruling face in late 2017, it seems rather like a façade masking the old familiar oppressive force whose use of live ammunition had become the standard practice against protest rallies, and crackdowns on dissenting voices have become the terrifying norm.

After Mnangagwa’s failed attempt to convince Russia to invest, the Zimbabwean president had to cut short his foreign financial tour. In a Machiavellian tactical response, the president had to sacrifice investments to protect his rule. A monarchical ruler cannot spend too long outside his kingdom particularly if there is an ambitious opposition waiting for the opportunity to overthrow him. Although the opposition within the ruling Zimbabwe African National Union – Patriotic Front (ZANU-PF) remains minuscule and is at most only partially influential, in Zimbabwe’s delicate atmosphere, it takes but a moment to achieve a political outcome from chaos.

The UN Human Rights Commission has called for the Zimbabwean government to resort to negotiations rather than its current abusive action. The evasion of a dialogue approach is eroding the confidence of foreign investors, who favor stable socio-political climates. Nelson Chamisa, the leader of the opposition Movement for Democratic Change Alliance (MDC), has also been advocating for national dialogue but his calls have so far been to no avail. It seems unlikely for Mnangagwa to adopt a softer stance when using force sets him as the lion of his forest.

However, these ‘jungle cat strategies will just paw the political ball out of his reach’, as it were, unless he somehow manages to secure investment from Russia despite the lack of public approval from them. This grants Putin a more powerful position, rather than appearing as a simple savior who is trying to address his country’s economic woes. The other alternative is for Mnangagwa to appeal to the good relations he established with China during his vice presidency. If China were to decide to extend a helping hand, then Zimbabwe would have to sacrifice more than it wanted to bargain for. These options are not contingent on whether Mnangagwa has a positive global image or not. The art of the deal takes precedence here. Or it might as well take a president to achieve.

Mnangagwa’s announcements on deals with China and Russia have nothing real on the ground, according to Chikoware. It certainly raises the doubts as to whether the new foreign investments would ever reach people or be simply funneled into certain pockets in the process. Total internet shutdowns and a president appalled by televised police abuses give the impression of an almost oblivious leader, which does not bode well for his public credibility.

In addition, the presidency’s claim of innocence has lost credibility since it has pinned the military “misconduct” on Vice President Constantino Chiwenga for far too many times. The blame game depicts a weakness that Zimbabwe cannot afford to have at this time. It needs a clear direction with honest admissions on the country’s problems. However, transparency could reveal a president glued to Mugabe’s throne with the engravings of a past ruler’s calamitous economic policies still damaging a country attempting to recover.

As it stands, Zimbabwe is a fragile climate in which citizens are subjected to harsh police actions and the president has no short-term solutions. If Mnangagwa can initiate a dialogue, he will only find hesitation in his interlocutors because trust must be rebuilt. Using the police force may seem like a quick and easy solution for the president but such decisions will apparently lead to the repetition of what happened as a result of the previous regime’s systemic faults: a president eventually removed.

* Opinions expressed in this article are the author’s own and do not necessarily reflect the editorial policy of Anadolu Agency.

 

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State to drop charges against Grace’s sister

Source: State to drop charges against Grace’s sister | Daily News HARARE – The State is considering dropping charges against former first lady Grace Mugabe’s sister Shuvai Gumbochuma for fraudulently processing the sale of State land. Gumbochuma appeared before Harare provincial magistrate Vongai Guuriro for routine remand proceedings and was advised of the development. “The accused […]

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Source: State to drop charges against Grace's sister | Daily News

HARARE – The State is considering dropping charges against former first lady Grace Mugabe’s sister Shuvai Gumbochuma for fraudulently processing the sale of State land.

Gumbochuma appeared before Harare provincial magistrate Vongai Guuriro for routine remand proceedings and was advised of the development.

“The accused person’s docket is at the Prosecutor General’s office for further perusal. There’s an opinion on whether to proceed or drop charges against the accused person,” prosecutor Shephered Makonde addressed the court.

The matter was remanded to March 7 pending that determination.

According to the State,  between February 2016 and March 2017 former Local Government minister Saviour Kasukuwere directed allocation of three pieces of land to Gumbochuma for development into residential stands.

The court heard that in 2015, Gumbochuma had applied for land to former minister Ignatius Chombo’s office but had failed to raise $424 426 which was the purchase price.

However, the court heard, Gumbochuma did not have the capacity to pay the amount nor develop the land and created a company called Scanlen (Pvt) Ltd as an alleged means to further her fraudulent plans.

Between August and October 2017 Gumbochuma then sold the land to N-Frays for

$2 060 000 without paying for the land.

The court heard N-Frays then paid the intrinsic land value to the ministry and gave the balance to Gumbochuma.

According to the State, Gumbochuma erred by distorting the value of State land from $424 426 to an inflated value of $2 060 000.

Using the same modus operandi, Gumbochuma misrepresented that Rodonior (Pvt) Ltd was a registered company knowing that it was not.

She reportedly applied for land under that company and was allocated 150 hectares in Good Hope

Checks that were later made with the Registrar of Companies unearthed that Rodonior was not registered.

Using the same company Gumbochuma also applied for land in Chishawasha B in Goromonzi and was granted the request on August 4, 2016.

She was allocated 20 hectares of land but the offer was later withdrawn on September 15, 2016 after it was established that she had used unregistered companies to apply for the land.

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The RTGS smoke screen: where are all our US dollars?

Dear Family and Friends, Source: The RTGS smoke screen: where are all our US dollars? – The Zimbabwean Watching a game show on TV the other day the big prize winning question was how many zeroes are there in a trillion.  Not many Zimbabweans have to think for more than a few seconds to come […]

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Dear Family and Friends,

Source: The RTGS smoke screen: where are all our US dollars? – The Zimbabwean


Watching a game show on TV the other day the big prize winning question was how many zeroes are there in a trillion.  Not many Zimbabweans have to think for more than a few seconds to come up with the right answer. Thanks to our government’s ruinous economic policies when Robert Mugabe was in power, we all learnt to never trust the banks with our money and to count in threes: 3 zeroes is a thousand, 6 zeroes a million, 9 zeroes a billion and 12 zeroes is a trillion. We had  million, billion and trillion dollar notes in our wallets and our bank balances were in  quadrillions, quintillions and septillions. The Zimbabwe government called the money Bearer Cheques and we went shopping with “bricks” – piles of packed notes- stuffed into shopping bags and rucksack while supermarket tellers had cardboard boxes under their counters which they filled with notes every thirty minutes.

That madness all changed for a brief period from  2009 – 2013 while the MDC’s Tendai Biti was the Minister of Finance;  the Zimbabwe dollar Bearer Cheques were scrapped and we traded freely in US dollars and South African Rand. When Mr Biti left so did sanity: US dollars evaporated and before we knew it were back to another made up currency: Bond Notes. In the last year, with Mr Mnangagwa in power, our downward slide has become a plunging free fall and this week we heard that all the US dollars in our bank accounts, along with all the Bond notes and coins in our pockets,  are now called RTGS dollars. RTGS dollars are to be valued against the US dollar at an exchange rate which will be announced EVERY DAY.  The RTGS rate to the US$ will apparently FLOAT depending on supply and demand. The supply will come from exporters (who have to surrender most of their US dollar earnings to the Reserve Bank anyway) and people depositing real US$ into the banks or swopping real US$ for RTGS dollars at whatever the rate is on the day. The demand will come from ten million ordinary Zimbabweans.

In other words, on Wednesday I went to bed with $100 in my bank account. On my bank statement it specifies that my money is: “Currency: USD.”  Today my US$100 is apparently called RTGS$100 and if the exchange rate is 2 Bond to I USD then my RTGS $100 is only worth US$50. If tomorrow the exchange rate has changed and is 3 Bond to 1USD then my RTGS$100 is only worth US$33.33. If by Monday the exchange rate has changed again and is 5 Bond to 1USD then my RTGS$100 is only worth US$20. Simply put, the government of Zimbabwe have, yet again, stolen all our US dollars.

The big question is can I, as an individual go into the bank and say I want to withdraw my RTGS $100  as US dollars at whatever the rate is on the day? I know I’m going to lose half or three-quarters of the value if I do this but hey, a real US dollar note is a real US dollar note and I can use it anywhere in the world, unlike the RTGS invisible bank note which I can only use in Zimbabwe. For the past three years (since the Bond note was introduced in 2016) withdrawing our money from the banks has been virtually impossible. Sometimes, on a  very good day we may have been able to withdraw one crisp green US$20 note; mostly we’ve been lucky to be able to get 20 Bond dollars or 20 dollars worth of Bond coins. So can I go and withdraw my RTGS$100 in US dollars at the rate on that day? That’s not yet clear but the Reserve Bank statement says: “Foreign Currency from the Inter-Bank Market shall be utilized for bonafide foreign payment invoices,” and that at a Bureau de Change I can only get US dollars if it is for: “ foreign subscriptions, business and personal travel.”

Tendai Biti who a decade ago made sanity from Zimbabwe’s currency mess said that the Reserve Bank Governor: “is a thief because he has  effectively devalued people’s salaries to the extent that if you earn $500, it means you now earn $100.”

Global economist Prof Steve Hanke said: “Zimbabwe’s Min. of Fin. Mthuli Ncube has just officially blessed a huge devaluation in Zim quasi-currencies and said they will float. He should have added that they won’t float on a sea of tranquility, but sink.”

And the saddest thing of all is that it’s the ordinary people of Zimbabwe whose earnings, be it from bananas on the roadside or low paying jobs in the private and public sector, are already just withering away and nothing’s being said about them. In the past four months prices have gone up by 200% but wages and income have not. The huge queues in supermarkets have disappeared because people can’t afford to buy groceries anymore and our highways are wide open as people can’t afford to travel  anymore either.

As I end this letter the military are still in our towns and on our highways, there is yet to be any accountability for the people killed by armed soldiers in the January protests, people are still being abducted from their homes at night (two young men this week in Mutare) people are still  in hiding, still in prison cells, still haven’t been tried in court.  The RTGS Dollar nonsense has provided a convenient and very thick smoke screen to the horrors of the past few months in our country and to the question everyone still wants to know: where did all our US dollars go?.  Until next time, thanks for reading this letter and my books about life in Zimbabwe, love cathy

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Shareholding squabbles scuttle Zisco deal 

Source: Shareholding squabbles scuttle Zisco deal – NewsDay Zimbabwe February 23, 2019 BY XOLISANI NCUBE A $1 BILLION Chinese deal to resuscitate the Zimbabwe Iron and Steel Company (Ziscosteel) is facing collapse after government changed its shareholding offer to Zhang Li, the president of Guangzhou R&FA, NewsDay Weekender has learnt. The Chinese billionaire, who is […]

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Source: Shareholding squabbles scuttle Zisco deal – NewsDay Zimbabwe February 23, 2019

BY XOLISANI NCUBE

A $1 BILLION Chinese deal to resuscitate the Zimbabwe Iron and Steel Company (Ziscosteel) is facing collapse after government changed its shareholding offer to Zhang Li, the president of Guangzhou R&FA, NewsDay Weekender has learnt.

The Chinese billionaire, who is into real estate development, had until last month been pushing to start work on the collapsed steel giant.

But early this month, according to sources, the investors started to pack their bags after they failed to agree on the shareholding structure.

“At first, the Chinese guy was offered 100%, but then it later changed to something like 48%. The Chinese team did not like the new deal,” a source from the Industry ministry
said.

Industry minister Nqobizitha Mangaliso Ndlovu was not answering his phone yesterday.

In January last year, President Emmerson Mnangagwa promised that Ziscosteel and Shabani Mashaba Mines would begin operations within his first 100 days.

However, no activity has yet started at the two entities, which used to provide thousands of jobs and other downstream benefits into the economy at their peak.
Ziscosteel, which at its peak had a 5 000-strong workforce, officially closed its doors in 2016 and laid off its remaining workers without terminal benefits.

Most of its infrastructure, equipment and spares have either been vandalised or looted over the years of the company’s redundancy.

In 2006, Indian firm Global Steel Holdings Limited courted Ziscosteel and was to inject $400 million in a rehabilitate, operate and transfer arrangement.

In 2011, Essar Africa Holdings’ bid to take over in a deal worth $750 million also hit a brickwall due to bickering in the then inclusive government.

“Already, equipment which was being assembled on site has been dismantled and there is no hope for the revival of the mine in the near future,” another source said.

Ziscosteel’s revival is expected to trigger growth in Hwange Colliery Company Limited, National Railways of Zimbabwe and other companies.

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CULTURE FUNDS DRY UP

CULTURE Fund of Zimbabwe Trust grants for the arts sector
are now a thing of the past  as artistes
are now having to explore fresh avenues for funding.

The trust will for the third year in a row not be calling
for arts practitioners to submit thei…

CULTURE Fund of Zimbabwe Trust grants for the arts sector are now a thing of the past  as artistes are now having to explore fresh avenues for funding. The trust will for the third year in a row not be calling for arts practitioners to submit their project proposals. Key financiers of Culture Fund have pulled the plug on the arts funding establishment citing global economic instability.