Archive for the ‘Economy’ Category

HARARE – Zanu ( PF ) is currently abusing the
government with adverts in newspapers and on
the state radio attacking the so -called sanctions
and people in the country who do no ascribe to
their views , the United States Ambassador to
Zimbabwe Charles Ray said .
Since the launch of the so -called anti -sanctions
campaign, Zanu ( PF ) has been running full
length adverts in the state media with a
government insignia .
” It is very disappointing to see full page ads
from the Zanu ( PF ) Information Department
under the heading ‘Government of Zimbabwe’
and adorned with the great Zimbabwean coat of
arms . Zanu ( PF ) is a political party , which does
not speak for the government of this great
country . Additionally , Zanu ( PF ) , which is part of
the government, has its own symbol that is
quite distinct from the Zimbabwean coat of
arms , ” said Ray .
The former ruling party last week formed an
anti -sanctions committee that is chaired by Vice
President John Nkomo. However , other
members in the Inclusive Government have
distanced themselves from the sham describing
it as a Zanu ( PF ) project .
Acting President Nkomo said in a statement that
thousands of people who were forced to attend
the anti -sanctions launch demonstrated that
they were against sanctions .
” This exceptional support was an emphatic
statement to Britain, the European Union ,
America and to all those interests which have
slapped sanctions against the people of
Zimbabwe,” said Nkomo.
In reality there are no sanctions on the people
of Zimbabwe, but rather targeted measures on
a few individuals . USA, America and Britain in
particular have played a significant role in
extending aid to the people of Zimbabwe.
Many people in both rural and urban
communities have benefited significantly from
USAID and other western donors . Yet Zanu ( PF )
says that sanctions are ” an attack on all
Zimbabweans. “
The United States dispelled the anti -sanctions
rhetoric as unfounded.
Said Ray , ” the ZANU-PF Information
Department is using misinformation and
completely unrelated facts to mislead the
public . The facts are:
1. For more than ten years , Zimbabwe has been
ineligible to receive any type of international
loan , regardless of U . S . and EU opinions, due to
its leaders ‘ failure to make payments on its
debt . Zimbabwe ‘s unpaid debts to the African
Development Bank , IMF , and World Bank put a
stop to lending long before there were
sanctions .
2. Zimbabwe’s current political and economic
environment , including fresh threats from the
President on his birthday to take over
established companies , has a chilling effect on
new investment , both domestic and
international. Banks and other businesses are
responsible to their share holders , and find it
increasingly difficult to justify investing in such a
high risk environment . Only economic
and political sanity will change this .
3. Fewer than 120 Zimbabweans are named on
the legal U . S . sanctions list , almost all of them
Zanu ( PF ) leaders who had a hand in political
violence against their fellow citizens. They may
not travel to the U . S . or do business with U . S .
companies because Americans do not want
them to enjoy the fruits of their corruption on
our soil . This does not hurt other
Zimbabweans. What hurts the rest of the
country is the corruption , mismanagement , and
lack of social investment that has brought
development to a standstill.
The former ruling party has exclusive control of
the state media and abuses it to attack
Mugabe’ s political rivals .

Written by Munyaradzi Dube
Tuesday , 08 March 2011 17 : 41

If there is something that has been nagging at
Zimbabwe’ s politics for the past decade , it is the
issue of sanctions , and yesterday , ZANU PF
whose business has been declared to be the
protection of the country ’ s sovereignty and
independence , unleashed its campaign
machinery tow -ards mobilising against the
sanctions . It is an issue that has dogged the
inclusive government since its inception in
February 2009 . The MDC party formation led by
Prime Minister Morgan Tsvangirai has insisted
the sanctions are mere “ restrictions ” , but Dep-
uty Prime Minister Arthur Mutambara , the
former leader of another MDC formation, has
loudly condemned the sanctions , which the
West argue are targeted against President
Robert Mugabe and members of his inner circle .
“ There is no economic sanctions regime in this
country , there are restrictive measures,” Prime
Minister Tsvangirai told a public accountability
seminar orga – nised by the Media Institute of
Southern Africa ( MISA ) and the Centre for
Public Accountability ( CPA ) last year , adding:
“ We have agreed as principals to tackle the issue
of restrictive measures as this isolation has
affected the lines of credit . ”
But President Mugabe and his ZANU PF party
insist that the sanctions are not targeted but
were rather put in place to accelerate Zimba –
bwe ’ s economic collapse in order to undermine
his government under what ZANU-PF describes
as “ the regime change agenda” .
ZANU-PF began mobilising support for two
million signatures to accompany a petition
against the sanctions by the EU and the US
government yesterday at an event where
President Mugabe was the chief guest. Prime
Minister Tsvangirai and Deputy Prime Minister
Mutambara had been invited to the occasion,
but reports indicate that they snubbed the
event .
In a campaign advertisement, ZANU-PF
highlighted that Article 1 V of the global political
agreement ( GPA ) , the instrument that facilitated
the creation of the inclusive government, had
bound all three political parties in the inclusive
government to fight “ illegal sanctions impo- sed
on the Zimbabwean people by the United
Kingdom , the Europ- ean Union , United States of
Ame- rica and international financial institutions
like the IMF and the World Bank ” .
“ This article of the GPA attests to the direct
connection between these illegal sanctions and
the decline in the Zimbabwean economy; the
non-availability of lines of credit to Zimbabwe;
the negative international perception of
Zimbabwe; and the fall in the standards of living
of the Zimbabwean people, ” read the ZANU-PF
campaign banner .
“ Sanctions do kill! Sign against them , act against
them !” charged ZANU- PF .
Recently , business has come out in support of
measures to withdraw the sanctions , arguing
these had become an unbearable cost to
business and the economy .
It is indeed true that sanctions have been a
factor in Zimbabwe’ s economic de- cline that
ended with formation of the inclusive
government in 2009 , but they were certainly not
the major reason for the sharp decline. With the
economic crisis emerged a sharp decline in
living standards .
For many years , and as most economists and
economic journalists will confirm , the critical
economic story was government’ s budget
deficits which were largely accrued to finance
recurrent expenditure .
There was very little for capital projects , key to
the development of an economy and job
creation .
An economic adjustment programme backed by
the IMF in the early 1990 s had only worsened
the situation . Its intentions had been noble:
There was need for belt tightening as well as
austere measures by government to grow the
economy . But government panicked at the first
signs of upheaval; austere measures meant the
erosion of so -called social safety nets , and free
health care for the poor . As a result, these
reforms were abandoned , and government
argued they had been inappropriate for the
domestic economy.
But the decline in the economy became gradual;
rising commodity prices stoked spontaneous
protects in Harare ’ s urban areas after bread
prices went up in 1998.
Similar protests were to ensue in consequent
years , triggered largely by declining standards of
living and rising unemployment .
These were precisely the issues that triggered
the em -ergence of the opposition in Zimbabwe
in 1999, with the Zimbabwe Congress of Tr -ade
Unions ( ZCTU ) secretary -general , Morgan
Tsvangirai , now Prime Minister of the inclusive
government , emerging the favourite to le- ad
efforts to unseat the inc- umbent government of
Pre -sident Mugabe from power.
But , just th -en, the contentious issue of land
ownership emerged , and ZANU-PF , whose
leadership had always lured voters on the back
of promises to re -distribute land to landless bla –
cks , seized on that issue to win back support
and fend off the threat posed by the opposition .
Unsettled white farmers began bank- rolling the
M-DC formation led by Tsvan -girai , and the
international community — the USA , the EU ,
Australia, New Zealand and a few others outside
the EU block – jumped into the MDC’ s corner.
But that only served to make the MDC’ s struggle
for power a racial affair : President Mugabe
charged that the condemnation of his
government was an issue of “ kith and kin” — the
British , who led the campaign against ZANU-PF
and President Mugabe , were angry with his
government for taking away land from the
whites .
The US first targeted Zimbabwe in 2001 after
the controversial land reform programme that
saw thousands of white -owned farms invaded
and occupied.
The Zimbabwe Dem – ocracy and Economic
Recovery Act ( ZIDERA ) directed that the US
government should oppose the granting of any
loan or financial assistance to Zimbabwe.
President George Bush then expanded the
sanctions by declaring a national emergency to
deal with the Zimbabwean threat in 2003 .
Meanwhile , the opposition ’ s cup ran over, with
massive financial packages from the West –
President Mugabe had to be removed from
power , and the only viable option was the
emergence of Prime Minister Tsvangirai and his
MDC party which they bankrolled with reckless
abandon . Today , senior activists within the MDC
can be counted among US dollar multi –
millionaires through this money , yet village
activists maimed for the struggle against ZANU-
PF have been neglected, in fact shunned by a
party whose struggle has massively enriched a
So , while the economy had already been on a
downward trajectory , and required a miracle to
be salvaged from that course , it was also clearly
the intention of the West to ensure Zimbabwe
was isolated in order to undermine President
Mugabe ’ s government and buttress a surging
opposition through economic sanctions .
Although denying that there were economic
sanctions in place , Prime Minister Tsvangirai,
however , noted that “ the issue of restrictive
measures” was a form of economic “ isolation
( that ) has affected the lines of credit ” into the
country .
Which , put in other words , essentially means
sanctions on President Mugabe and his cabal of
associates were not necessarily smart or
targeted but general economic sanctions which
were meant to have a bearing on the economic
performance .
How does banning individuals of a detested
government from travelling to the EU or the US
achieve democratic reforms unless those
individuals ’ lives depended on visiting those
countries ? The truth is it is Zimbabwe ’ s economy
that depends to a significant extent on financial
interaction with the EU block and the US , rather
than President Mugabe and members of his
government . Besides, the squeeze on
companies targeted under the regime of
sanctions for allegedly propping President
Mugabe ’ s former government have hundreds of
employees dependent on them , and also
interact with many other economic players for
the growth of the Zimbabwean economy . The
management of Zimbabwe’ s economy had
indeed an effect on Zimbabwe ’ s credit
worthiness , but ZIDERA and other sanction
measures gave a cue to financial institutions on
how they had to deal with even private sector
players in the crisis- torn economy.
Yet even without ZIDERA, Zimbabwe had
become unqualified to access balance of
payments support from the IMF because of
protracted arrears.
A US embassy spokesperson in Zimbabwe
indicated in a recent response to an article by
The Financial Gazette that ZIDERA , signed into
law in 2001 , and provisions contained in
subsequent appropriations acts , restricted the
ability of the United States to cast its vote in
support of assistance to Zimbabwe in
international financial institutions ( IFI ’ s) , except
for programmes that meet basic human needs
or promote democracy .
But indeed Zimbabwe was already ineligible for
multilateral loans before ZIDERA due to its
arrears to the IFIs . But ZIDERA made it a law
that the US did not have to support financial
support that could result in a positive turn to
Zimbabwe’ s struggling economy under President
Mugabe ’ s regime .
To many watchers, ZIDERA and indeed other
forms of sanctions against President Mugabe
and his allies are not an obstacle to Zimbabwe’ s
economic recovery , as observed by the recovery
experienced over the past two years . Yet their
removal is indeed an integral part of the GPA,
and indeed full implementation of that political
agreement also includes removal of sanctions .
“ The United States advocates full
implementation of the Global Political
Agreement , an accord brokered by SADC and
signed by each of the three parties represented
in the transitional government , and the holding
of free and fair elections that will reflect the will
of the majority of Zimbabweans ,” the embassy
spokesperson had noted in the statement to this
newspaper .
The spirit of any democratic system is that
political power should be vested in the people,
and if the US , the EU and their allies are sincere
about building a democratic Zimbabwe free of
exogenous influences , they must remove the
sanctions to give the contending political players
equal chances on the ballot .
This is not to say violence , electoral fraud or
human rights abuses from any of the
contending forces should be condoned ; but , it is
certainly not the reason why the US , the EU and
their allies have kept sanctions against President
Mugabe and so-called members of his inner
circle .
The West has stuck to regimes whose leaders
won power through fraudulent elections . Until
the recent protests that triggered the flight of
Hosni Mubarak from power in Egypt , that Arab
country was the single largest recipient of
financial support from the US .
There West has done business with despotic
regimes across the globe , including China ,
whose prominent dissident , Liu Xiaobo, a jailed
Chinese rights activist , won the 2010 Nobel
Peace prize last year , as well as the Equatorial
Guinea or Gabon whose violation of human
rights is equally detestable . Muammar Gaddafi
was until the recent protests viewed as a
“ rehabilitated dictator” after he had agreed
access to Libya ’ s oil resources to the west.
So , even if the sanctions on Zimbabwe might be
a token of apprehension by the West over
Zimbabwe’ s human rights record, they risk being
deduced in racial terms because of the
inconsistent application of that measure by the
West .
This is why regional leaders , including South
Africa’ s President Jacob Zuma , have urged their
withdrawal and patently shown sympathy to
President Mugabe because of the perception
that he is a victim .
To allow for meaningful reforms , these
sanctions have to go and the political gladiators
have to then agree to meaningfully level the
political playing field .

Dumisani Ndlela , Deputy Editor – in- Chief
Friday , 04 March 2011 12 : 56

The United States ambassador to Zimbabwe,
Charles Ray , has poured cold water on President
Robert Mugabe ’ s anti -sanctions drive saying the
campaign will not have any significance if
people remained suppressed .
On Wednesday President Mugabe officially
launched his Zanu PF party ’ s anti – sanctions
campaign , blasting the US , United Kingdom and
their allies for imposing sanctions against him
and his inner circle to effect regime change .
The 87 -year old veteran leader said the
sanctions were a form of violence which had
hurt the economy and impoverished
In retaliation , he threatened to seize companies
linked to countries that have maintained
sanctions on Zimbabwe.
President Mugabe and his lieutenants signed an
anti -sanctions petition .
But Ray said the petition was a “ wretched thing ”
when only one section of the population was
allowed to demonstrate .
“ Petitions are great things ,” said Ray in a
statement .
“ On any given day , thousands of petitions are
circulating in the US . But a petition becomes a
wretched thing when only one section of the
population is allowed the right to express its
views publicly , while others seeking the right to
assemble , petition , and demonstrate are
arrested and tortured. ”
Ray said Zimbabwe’ s current political and
economic environment , including fresh threats
from the President on his birthday to take over
established companies , had a chilling effect on
new investment , both domestic and
international .
“ Banks and other businesses are responsible to
their shareholders , and find it increasingly
difficult to justify investing in such a high risk
environment . Only economic stabilisation and
political sanity will change this , ” Ray said .
“ For more than 10 years , Zimbabwe has been
ineligible to receive any type of international
loan , regardless of US and EU opinions, due to
its leaders ’ failure to make payments on its
debt . Zimbabwe’ s unpaid debts to the African
Development Bank , IMF , and World Bank put a
stop to lending long before there were
sanctions . ”
Ray said restrictive measures imposed on
Zimbabwean leaders did “ not hurt other
Zimbabweans. What hurts the rest of the
country is the corruption , mismanagement , and
lack of social investment that has brought
development to a standstill ” .

18 : 35

Renowned academic and educationist Phineas
Makhurane has said Zimbabweans continue to
live in abject poverty despite having a good
education system and highly -skilled manpower .
Makhurane was addressing delegates at the
launch of the Zimbabwe Economics Society
( ZES )’ s Policy Options for a Pro -Poor Economic
Development: Strategies in Zimbabwe report at
a local hotel on Tuesday .
The report follows research funded by the
United Nations Development Programme .
ZES president Lovemore Kadenge said the
research focused mainly on Bulawayo and
Harare .
The former National University of Science and
Technology vice- chancellor said while the ability
of Zimbabweans to acquire knowledge was
undoubted, it was shocking that poverty still
haunted the country .
“ It is clear that in Zimbabwe there is poverty
which is increasing and it seems cannot be
eradicated completely . Many people here fall
below the poverty datum line and all of us are
touched by poverty directly or through our
extended families.
“ We have a big problem here , a big problem of
poverty. I have never doubted the ability of
Zimbabweans to acquire knowledge or skill even
where poverty is concerned . I can testify that
ours has been the best system of education in
the whole world although we could have done
better in fostering an entrepreneurial education .
“ The question then is , why in light of this
knowledge and skills capacity , are we still poor ?
As a nation we lack one crucial thing , which is
the correct attitude, that is the willingness to
implement our know-what and our know-how .
Knowledge, skill and the correct attitude do not
overlap in our case,” he said.
Zimbabwe Commercial Farmers ’ Union
president Donald Khumalo said :
“ From a civic society ’ s point of view , it is
important that people own their destiny, drive
programmes and decide what they want in their
communities . It is important to get to the
bottom of the problem with the poor
communities than to prescribe solutions from
above . ”
Bulawayo East MDC-T MP Thabitha Khumalo
said from a Matabeleland perspective, there
were leaders who relished in the under –
development of some regions in the country .
“ In Africa, we are rich in natural resources, but
we are very poor . Europe has no resources, but
their people are living in comfort . Why ? The only
buildings constructed in Bulawayo after
independence are the ones that were built by
pension funds.
“ There is a deliberate exclusion of Matabeleland
in terms of infrastructural development . It ’ s
either they forget we are there or they don’ t like
us. We have rulers who believe that some parts
of this country should not be developed for
reasons best known to them , ” Khumalo said .

2011 10 : 35

Business leaders have said if any elections were
to be held in Zimbabwe, they should not be
allowed to disrupt the economy and that could
only happen if conditions under which the polls
are conducted were agreeable to all contesting
The president of the Confederation of Zimbabwe
Industries ( CZI ) , Joseph Kanyekanye , said last
week elections were really not necessary at the
moment .
“ Industry feels the country must first attain full
economic stabilisation before any election is
held , ” Kanyekanye said in a statement .
“ If elections are held now , they are likely to
affect the progress that industry has made . ”
Politicians have indicated elections were likely to
be held sometime this year .
Economic analyst Eric Bloch said if elections
were held they would have to be free and fair .
“ Elections are not a problem as long as they are
free and fair . If they are not free and fair , the
economy is likely to go backwards,” Bloch said .
Bloch said the process and outcome of the
elections would affect foreign investment .
“ The manner in which the elections will be held
and the outcome will greatly determine foreign
investment and support,” he said.
“ It is critical that whatever happens does not
chase away potential foreign investments into
the country . ”
Business has spoken with one voice on the issue
of elections .
CZI said the coalition government had made
progress which had seen the stabilisation of the

STAFF WRITER – Feb 27 2011 18 : 14

Zimbabwe should stop “ crying ”
about sanctions and focus on
socio- economic recovery as an
immediate priority , African
Union Commission officials in
Addis Ababa said recently .
In separate interviews , officials
in the Political Affairs
departments on Human Rights
and Elections and those on
Peace and Security , who
preferred anonymity , said
Zimbabwe should learn from
China and India , which charted
their own economic
development paths by focusing
on national priorities , such as
investment in basic sectors and
the development of science and
“ They ( Zimbabwean
government) do not need to cry
about Western sanctions . By
crying over those sanctions , the
West is getting more and more
convinced that its sanctions are
biting deeper into the pockets of
Zimbabwean politicians, ” said
one official urging President
Robert Mugabe and Prime
Minister Morgan Tsvangirai not
to lose sight of what was
“ Surely, why can ’ t Mr Mugabe
and Mr Tsvangirai open their
eyes and minds to see and learn
from the Chinese and Indian
ways of making Western
sanctions redundant ?”
On elections , the officials
challenged African leaders at
the summit to persuade
President Mugabe not to rush
into them .
They pointed out that
conducting polls in Zimbabwe in
2011 would be disastrous .
“ Those AU members states and
those at the AU Commission,
who are convinced that
Zimbabwe is about to author its
own tragedy by getting into an
election in 2011 , should really
beat the drums louder and
louder for Mr Mugabe and Mr
Tsvangirai to change course .
There is no need to hurry into
an election that would bring
more problems,” said another
official .
“ South Africa, as the mediator
in the Zimbabwe crisis , should
also help Zimbabwe to avoid the
blunder of rushing for elections
in 2011 . In some cases , the AU
is putting member states at a
disadvantage by clinging to a
culture of silence over wrong
things . Let us call a spade a
spade . Rot is rot and it cannot
taste like sugar . ”
When approached , the AU
Commissioner for Political
Affairs Ambassador Julia Dolly
Joiner shook her head and
walked away, while another
official Ambassador Emile
Ognimba said he could speak
on any other issue except
“ The only person that can speak
on Zimbabwe is the
chairperson . I am sorry but if
you want anything else, we can
talk ,” he said.
When NewsDay finally managed
to corner AU Commission
chairperson Jean Ping , he just
smiled and referred all
questions to his spokesperson ,
who kept saying : “ We will talk
later . ”

ETHIOPIA – Feb 02 2011 19 : 29

HARARE , Zimbabwe – –
Zimbabwe’s state statistics
agency says the poverty line for
maintaining a family of five rose
to $467 each month last year
without increased earnings to
cover the 8 percent rise .
The nation ‘s 240, 000 civil
servants, teachers and
government workers are
planning to strike to protest
average monthly incomes of
around $ 200. With massive
unemployment, most
Zimbabweans survive on the
equivalent of about $1 a day .
Two million people are set to
receive food aid in coming
months , according to the United
Nations .
The former regional
breadbasket is struggling to
emerge from political gridlock,
economic collapse and
international isolation and
sanctions after President Robert
Mugabe ordered the seizures of
thousands of white -owned
farms in 2000 , disrupting the
agriculture- based economy.

The Associated Press
Monday, January 31 , 2011; 5: 54

Harare city councillors have
criticised the way municipal
police round up street vendors
across the city and saying
methods that the city ’ s law
enforcers were employing were
too barbaric.
Council should , instead , spend
resources used to round up the
illegal vendors to put up
structures where the vendors
could trade their wares , the
councillors said .
This came up after complaints
from vendors who said they
were being treated like
criminals yet they were trying to
survive .
NewsDay witnessed municipal
police rounding up vendors
including car – washers , airtime
vendors and those selling
vegetables around the city.
Most of the vendors were
handcuffed, thrown in a tractor
and driven away .
Their wares are confiscated by
the municipal police and taken
to unknown places although
some vendors contend the
council police share the goods
among themselves.
Chairman of the committee on
environment , Councillor Herbert
Gomba said council was not
happy with the manner
residents continue to be
harassed .
Gomba said as the committee
responsible, they had tasked the
chamber secretary , Josephine
Ncube , to assist in reviewing city
by -laws .
“ We have been discussing as a
committee responsible for
crafting by -laws. We have noted
with concern the manner
municipal police have been
harassing residents ,” he said.
Other councillors said the
behaviour of the municipal cops
was “ uncalled for” .
Councillors argued that there
was no reason to harass
vendors when there was no
alternative place to put them .
“ We should understand that the
by -laws have overstayed and we
must take cognisance of the
fact that there is a high rate of
unemployment. It is just
unnecessary to harass people
trying to make an innocent
living, ” said Gomba .
Vendors yesterday said the
heavy-handedness of council
police would push them to
retaliate . Battles between
municipal cops and vendors
have at worst resulted in the
death of the fleeing vendors .
Meanwhile , Harare City Council
says it has no solution to the
squatter problem that has seen
informal settlements popping
up in areas like Vainona ,
Kuwadzana, Gunhill and other
parts of the city.
Harare City Council spokesman
Leslie Gwindi told ZBC News in
a telephone interview that the
local authority has no
manpower to deal with the
problem as the illegal settlers
resist eviction.
About 20 households located in
Gunhill vowed to stay put until
the local authorities provided
land for them to build their own
houses .
“ We will not go anywhere until
council gives us land to build
our own houses . As for me I
have a wife and two children ,
where do you expect me to go
if I am evicted ?” said one man
who is a squatter in Gunhill .

Jan 28 2011 17 : 07

I AM a strong proponent of the
Zimbabwe brand and have
experienced her last 34 years of
development both from within
and without .
I am now based in South Africa
and Finance minister Tendai
Biti’ s call to the international
community to become pro
rather than reactive to calls for
some input . Africa on a broad
scale still relies on both direct
and indirect international
community support and
investment .
There are thousands of UN
troops in place in various
countries including the Ivory
Coast, there are numerous
NGOs and other support
mechanisms in place within
African countries which are all
supplied and financed by the
international community. My
question is when will Africa
stand on its own two feet?
When will the political,
economic and social prowess of
Zimbabwe be realised?
It is her responsibility and hers
alone to ensure her
development. We should
appreciate the very real and
difficult challenges Zimbabwe is
under but also know we have to
stand on our own two feet.

Colin J Fryer ,
Harare .