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Source: Russians win US$385 400 salaries case against ZCDC | The Herald March 19, 2019

Prosper Dembedza Court Correspondent
ZIMBABWE Consolidated Diamond Corporation (ZCDC) was last week ordered to pay US$385 438 to 13 Russian nationals after taking their company’s operations and liabilities which included paying its workers’ salaries.

ZCDC failed to pay Victor Kusyla, Belonogova Elena, Fedolaik Anton, Iemelianov Oleskii, Malafev Alexey, Novak Natalia, Novoselov Pavel, Slonov Roman, Slonov Vladimir, Turushev Iurii, Tuz Yaroslav and Vinnim Victor, who are Russian nationals their salaries after taking over the operations of DTZ-OZGEO which employed the Russia.

The Russians, through their legal counsel, lodged a complaint of unpaid salaries at the Labour Court where the arbitrator Ms Brenda Garudza granted an order instructing ZCDC to pay the Russians their outstanding salary balance of US$385 438.

The Russians, through their lawyers, argued that ZCDC must pay them their dues as they had done their work and should be paid their salaries.

“Claimants submit that clause 4.2 of the Memorandum of Agreement states that liabilities together with interest accrued and other amounts payable in connection therewith whether before or after the effective date were conditionally and irrevocably transferred to and assumed by the said transferee, ZCDC in accordance with Section 16 of the act.

“It is the claimants’ submission that respondent is committing an act of unfair labour practice since it has been a year and half after the transfer and this obligation has not been met. The complainant party states that Section 13 (2) of the Act maculates the claim forbidding the respondent from failing to make payments due to service delivery.

“Claimant states that they should be paid their dues as provided for under Article 4.2 of the Memorandum of Agreement,” said the lawyer.

The court heard that ZCDC and DTZ-OZGEO signed a Memorandum of Agreement on May 10, 2017 where ZCDC agreed to pay the Russians their salaries.

It has not been rebutted that respondent took over operations in February 2016 and the parties attended conciliation hearings whereat they failed to reach an amicable settlement.

“The complainants pray that their dues be paid in US$. Respondent argues that there is no justification for same, any recognised legal tender can be used, this tribunal noted that the said liabilities as shown under Clause 4.1 of the agreement are shown in US$ (US$11 262 148).”

“It, therefore, follows that the claim be paid in United States dollars as per agreement. This tribunal found no merit in awarding interest to the said amounts as same shall be paid in hard currency,” said Ms Garudzo in her findings’

However, in passing judgment, Ms Garudzo ordered ZCDC to pay the Russians the outstanding balance forthwith.

“Respondent be and is hereby ordered to pay three hundred and eighty-five thousand four hundred and thirty eight United States Dollars (385 438) to the complainants,” she said.

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Source: Price stability key to economic recovery – NewsDay Zimbabwe March 19, 2019

guest column: Vince Musewe

A more efficient management system of scarce foreign exchange is key to price stabilisation and business growth.

According to the Transitional Stabilisation Programme (TSP), the aspirations of vision 2030 will be realised through five strategic clusters, which are governance, macro-economic stability and re-engagement, inclusive growth, infrastructure and utilities and social or human capital development.

There should be no doubt that sustainable economic and social development can only happen in a stable macro-economic environment.

Macro-economic stability is the absence of currency fluctuations, high debt burden and unmanaged inflation which can result in economic crises and collapse in the gross domestic product.

It also includes minimising our economic vulnerability from both internal and external shocks, including the pursuit of consistent and well-thoughtout economic policies which create predictability and allow effective economic planning and growth.

Fiscal and monetary discipline, as well as a sustainable balance of payments position are, therefore, key.

A key factor which has a systemic impact on macro stability is the issue of price stability, whose preserve largely falls under monetary policy effectiveness.

Price stability implies avoiding both prolonged inflation and deflation.

Inflation is, of course, enemy number one because it complicates the economic decision-making process and slows economic growth, while it results in the decline in the value of money and purchasing power.

Deflation also slows down economic growth as consumption and investment in the economy are both deferred. Price stability, among other things, contributes to high levels of economic activity and growth, improves informed consumption and investment decisions and allocation of resources, increases investment levels and also prevents arbitrary re-distribution of wealth, which can lead to market distortions.

In short, economies grow when prices are stable because people can plan, afford and increase their consumption while businesses can effectively plan and invest more in the economy due to profit predictability.

In Zimbabwe, for many reasons, we have been faced with the lack of price stability and high inflation, which has led to a general reduction in purchasing power of incomes and lack of the required investment levels to increase our production levels.

Our inflation has originated from multiple variable factors, but the two key drivers include:

Excess money supply which creates demand-pull inflation.

he source of this increase is fiscal indiscipline.

A high government budget deficit and unsustainable debt levels have been the key root causes.

This has required specific attention under the TSP and we are beginning to see the positive results as the budget deficit is managed better and month-to-month inflation has begun to decrease.

Exchange rate fluctuations, primarily fuelled by the parallel market which have created supply side inflation, are another cause.

Because our economy is highly import dependent, characterised by a continuing trade deficit, we effectively import our inflationary pressures.

The pricing of foreign currency to feed the economy becomes key and has, to date, continued to increase costs of production, which are in turn passed onto consumers.

The recently announced Monetary Policy Statement (MPS) by the Reserve Bank of Zimbabwe (RBZ) governor John Mangundya has certainly impacted positively on taming inflationary pressures, stabilising foreign exchange rates and reducing speculative fluctuations in our pricing regime.

The inter-bank foreign exchange market has sought to take the wind away from parallel market sails, thereby redirecting foreign exchange trading to a more formalised and transparent platform. This has had the effect of reducing high corporate demand of foreign exchange from the parallel market, effectively dampening the impact of informal and speculative rates on inflation.

As a result, we have begun to see more stable foreign exchange rates which are likely to further reduce as we get increased foreign exchange inflows.

Currency reforms will also create confidence and stability in the short to medium term as we seek to attract new investment inflows.

Despite the usual typical cacophony which accompanies all policy changes, the market has accepted the RTGS$ as a step towards own currency, but more importantly, as the antidote to a three-tier pricing structure which has been the source of price instability.

One expects that as the budget deficit improves and more foreign exchange trading migrates to an efficient inter-bank market, the economy will begin to turn around as confidence builds and there is more predictability in price structures and foreign exchange availability which should allow for effective planning and subsequent investment in the productive sector.

In my opinion, despite continued scepticism of the role and intentions of the RBZ, more driven by the lack of appreciation of contextual socio-political and economic dynamics than by understanding fundamentals, the RBZ has significantly shifted from previous quasi-fiscal activities to a more facilitative role to create both price and currency stability while sourcing appropriate credit lines for the productive sector.

This should result in economic recovery underpinned by production and not consumption.

The reduction of the trade deficit, however, still remains a clear challenge which can only be addressed by aggressive import substitution. Localised value addition and beneficiation will be key.

The TSP is a two year stabilisation programme which seeks to create a stable foundation for future growth, driven mainly by a highly responsive and productive economy and, as on a ship, most passengers may not realise when the economy is turning. Zimbabwe can, indeed, turn the corner, but it will take bold policy moves.

 

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Source: Victoria Falls to host international wildlife summit | Newsday (News)

BY VENERANDA LANGA

THE Environment and Tourism ministry will in June host a major international environment and wildlife summit in Victoria Falls, minister Priscah Mupfumira told Parliament yesterday.

Mupfumira told the Consilia Chinanzvavana-led Parliamentary Portfolio Committee on Environment and Tourism that the country had made major strides in the tourism sector, where it has been recognised as one of the top 10 must visit countries in the world by National Geographic, as well as the third best country to visit after Sri Lanka and Germany at the just-ended tourism fair in Germany.

She said although the Chinese have been the country’s major all-weather friends, Zimbabwe has not been marketing aggressively to lure them into the country, which is a must-do.

“In June, we will host a major international environment and wildlife summit in Victoria Falls, and at the just-ended tourism fair in Germany we got three awards — Women Achiever of the Year, Zimbabwe as the Best Sustainable Tourism Destination award and Tourism Minister of the year 2019 award,” Mupfumira said.

“Tourism arrivals in Victoria Falls show an improvement, but our challenge is accommodation and connectivity, whereby when a tourist comes to Zimbabwe to see the Victoria Falls, they also want to visit other places like Great Zimbabwe, the Eastern Highlands, but there are no connecting flights to those places,” she said.

She added that although the country was experiencing fuel problems, her ministry managed to ensure that it was adequately available at tourism resorts like Victoria Falls and Kariba.

She said her ministry was currently promoting community-based tourism by ensuring that each province has cultural villages, where tourists can stay in huts and experience rural life and local cuisine.

“We already have the Karanga village, and are in the process of forming the Korekore village, and in Tsholotsho we have another cultural village. We want a cultural village in all the country’s 10 provinces. To ensure it is a reality, we see women playing a key role as women in tourism. We also have youths in tourism and we are going to support them.”

There were also plans to have an animal sanctuary in every province, so that locals can also see wildlife for free.

“At Chinhoyi Caves we have already introduced two lions. We have set up a dedicated director’s desk for domestic tourism. In China, 70% of tourism is by locals. We have also resuscitated the Campfire project, so that people that live in wildlife areas also benefit,” she said.

The post Victoria Falls to host international wildlife summit appeared first on NewsDay Zimbabwe.

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Source: Nango raps suspension of NGOs | Newsday (News)

BY SILAS NKALA

THE National Association of Non-Governmental Organisations (Nango) has rapped government over the suspension of Community Tolerance Reconciliation and Development (Cotrad) and the Zimbabwe Association of Churches and Hospitals (Zach) from carrying out their operations.

Masvingo district administrator, Roy Hove on March 11 ordered Cotrad to cease operations pending investigation on its registration, while Zach was also barred from holding any activities in the district because they were allegedly operating illegally.

“This development is regrettable considering the contribution these organisations are making to the district. We feel that these organisations are being victimised for the wrongs that are not clear. Nango has written to the district adminstrator to schedule an appointment to deliberate on the matter in view of finding a better solution that will not jeopardise development within the district,” Nango said in a statement.

“Nango will promptly update constituents on the outcome of this meeting. Cotrad, a member of Nango, is a trust registered with the Ministry of Justice, Legal and Parliamentary Affairs. The youth-oriented organisation was formed by a group of former student activists striving to promote informed and positive participation of youths and reintegrate victims of political violence into the mainstream society.”

Nango said Cotrad values respect for human rights and the desire to have Zimbabwe youth participating in the build-up to sustainable justice, freedom, peace, development, democracy, rule of law and security of all persons.

Cotrad on Thursday last week filed an urgent chamber application at the Masvingo High Court challenging government’s decision to suspend its operations.

“Zach is a non-profit-making membership-based association formally registered in 1974. It is registered under the Private Voluntary Organisations Act (Chapter 17:05). Zach consists of 126 members countrywide covering hospitals and clinics. The association links heads of Christian denominations, the Ministry of Health and Child Care and health providers and other agencies,” Nango explained.

“Nango is the officially recognised coordinating body of NGOs operating in Zimbabwe. It is the largest umbrella body for non-governmental organisations and was established in 1962. It is a non-partisan, non-profit-making organisation and non-denominational coordinating body of NGOs in Zimbabwe.”

The organisation said it was mandated by its membership to coordinate NGOs activities, represent the NGO sector and strengthen the voice of NGOs in Zimbabwe. The NGOs’ suspension came weeks after President Emmerson Mnangagwa, during a Zanu PF rally in Mwenezi district, said government will descend upon civil society organisations perceived to have influenced the violent January fuel protests. On February 15, 2012, then Masvingo Provincial Affairs minister Titus Maluleke also read the riot act to NGOs operating in the province and indefinitely suspended 29 of them from conducting operations.

The post Nango raps suspension of NGOs appeared first on NewsDay Zimbabwe.

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Source: Parly ratifies free African trade pact | The Herald March 19, 2019

Minister Ziyambi

Bulawayo Bureau
PARLIAMENT has ratified the African Continental Free Trade Area (AfCFTA) which seeks to create a single market for goods, services and movement of persons in order to deepen the economic integration of the African continent.

By ratifying the AfCFTA, Zimbabwe joins about 15 other member states that have since ratified the agreement which is in accordance with the Pan-African Vision of “An integrated, prosperous and peaceful Africa”, enshrined in Agenda 2063.

President Mnangagwa signed the agreement brokered by the African Union (AU) in March last year and 44 of its 55 member states also signed it.

Leader of Government Business in Parliament, Justice, Legal and Parliamentary Affairs Minister Ziyambi Ziyambi presented the motion on AfCFTA on behalf of Foreign Affairs and International Trade Minister, Dr Sibusiso Moyo in the National Assembly last week.

Minister Ziyambi moved the motion in terms of Section 327 (2) of the Constitution of Zimbabwe, which provides that: “An international treaty which has been concluded or executed by the President or under the President’s Authority: does not bind Zimbabwe until it has been approved by Parliament; and does not form part of the law of Zimbabwe unless it has been incorporated into the law through an Act of Parliament.”

In presenting the motion on ratification, Minister Ziyambi said the 25th Ordinary Session of the Assembly of Heads of State and Government which was held in June 2015 in Johannesburg, South Africa launched the African Continental Free Trade Area negotiations with an indicative deadline of 2017.

“Subsequently, on March 21, 2018, an African Union (AU) Extraordinary Summit launched the African Continental Free Trade Area (AfCFTA) and signed the Agreement establishing the AfCFTA in Kigali, Rwanda,” he told legislators.

Minister Ziyambi said some of the objectives of the AfCFTA are to create a liberalised market for goods and services through successive rounds of negotiations, contribute to the movement of capital and natural persons and facilitate investments building on the initiatives and developments in the State parties for the eventual establishment, at a later stage, a continental customs union and a continental single market.

He said the AfCFTA also strives to “promote and attain sustainable and inclusive social and economic development and structural transformation of the State parties; enhance the competitiveness of the economies of State parties within the continent and at the global market and promote industrial development through diversification and regional value chain development, agricultural development and food security”.

Minister Ziyambi said the Consolidated AfCFTA Agreement comprises an agreement establishing the AfCFTA; protocol on trade in goods; protocol on Trade in services and protocol on Rules and Procedures on the Settlement of Disputes.

The agreement will come into force once 22 member states have ratified it.

To date 15 states have ratified while four others have received parliamentary approval for ratification.

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