Zimbabwe police ban another protest against economic woes – The Zimbabwean

The protests were over worsening economic conditions and the jailing of Chief Ndiweni, a known critic of President Emmerson Mnangagwa [File: Philimon Bulawayo/Reuters]

Police in Zimbabwe has banned a planned march by the country’s main opposition in the city of Bulawayo, days after brutally dispersing protesters who defied a similar order in the capital.

Paul Nyathi, spokesman for the police, told reporters on Sunday that a “prohibition order” was issued in Bulawayo “due to security concerns”.

Monday’s now-banned protest, organised by the Movement for Democratic Change (MDC), was over worsening economic conditions and the jailing of Chief Ndiweni, a known critic of President Emmerson Mnangagwa.

Nyathi said various business groups had appealed to the high court “not to allow the march to proceed as a number of these organisations lost their properties in January when similar protests were held”.

In a notice banning the demonstration, the police added: “Ordinary citizens in the country are experiencing hardships so any call for the demonstrations might be taken advantage of by the already agitated citizens and violence may erupt.”

Police imposed a similar protest ban last week after the MDC called for protests beginning in the capital, Harare, over the government’s handling of the economy.

The MDC challenged the ban in the high court early on Friday but judges upheld the order.

Scores of protesters, many of them from the MDC, defied the ban and gathered in a square where the march was supposed to start.

Demanding an end to Mnangagwa’s rule, protesters decried a severe and deepeningeconomic crisis that has led to skyrocketing inflation for basic goods like fuel, while wages have remained stagnant.

Police used batons, whips and tear gas to disperse the protesters, wounding several people. Dozens of people were arrested.

Friday’s protests were the first since Mnangagwa’s decision to increase fuel prices by more than 100 percent sparked nationwide demonstrations in January. At the time, at least 17 people were killed and several wounded when soldiers opened fire.

Nelson Chamisa, leader of the MDC, said on Friday that his party would continue to mobilise against the government but that it wanted to avoid “blood in the streets”.

The demonstrations are viewed as a test of Mnangagwa’s willingness to tolerate dissent in a country with a long history of repression under his predecessor Robert Mugabe, who ruled for nearly 40 years.

Despite Mnangagwa’s campaign promise to revive the economy, Zimbabweans say things have gone from bad to worse with shortages of bread, fuel, medical drugs and other goods and the skyrocketing cost of living.

According to the United Nations, about five million Zimbabweans are in need of food aid.

Statement by Spokesperson for the UN High Commissioner for Human Rights – The Zimbabwean

Rupert Colville

Zimbabwe

We understand that today’s planned protests in Harare have just been called off by the organisers, following a High Court decision to uphold a Government ban. The crowds that had already gathered were dispersed by police, with reports emerging of the use of force against protestors.

With opposition demonstrations still likely to take place in Zimbabwe in the near future, we urge the Government to find ways to continuously engage with the population about their legitimate grievances on the economic situation, and to stop cracking down on peaceful protestors. If demonstrations go ahead we urge the security forces and protesters to ensure they proceed calmly and without any violence.

We are deeply concerned by the socio-economic crisis that continues to unfold in Zimbabwe. While acknowledging efforts made by the Government, the international community and the UN in Zimbabwe to mitigate the effects of the crisis and reform process, the dire economic situation is now impacting negatively on the realization of the economic and social rights of millions of Zimbabweans.

Long-term neglect and structural deficiencies have contributed to hyperinflation, resulting in soaring prices for fuel, food, transport and health services, which is having a dramatic impact on the population, and particularly on marginalized working-class people. The fact that key commodities and services have become less affordable for poor families, means there is an increasing need for strong social protection measures.

The economic crisis is converging with the impact of cyclone Idai that hit Zimbabwe last March, as well as the El Niño-induced drought, to create a rapidly deteriorating humanitarian situation, with the result that around five million Zimbabweans, or one third of the total population of 16 million people, are now estimated to be in need of humanitarian aid.

Ahead of today’s planned protest, which was called off at the last minute, there were worrying reports of threats against citizens who wish to exercise their right to express their opinions of the economic situation via peaceful protests, with allegations of increased surveillance of, and threats against, civil society organizations by State agents.

More disturbing still, there have been reports of actual physical attacks on, and arrests and detention of, civil society leaders and activists over the past few months, with one human rights defender and one political activist reportedly temporarily abducted and severely beaten by unidentified armed men a few days ago, apparently because of their role in helping to organize the protests today. In the last few hours, we have heard reports of more such cases and are looking into them. Senior officials have also reportedly issued threats against organisers of demonstrations or against people who take part in them.

State authorities have a duty to ensure people’s rights to freedom of expression, and to facilitate and protect the right to peaceful assembly. In addition, we urge the Senate when reviewing the Maintenance of Peace and Order Bill to protect the essential democratic freedoms of peaceful assembly and demonstration by ensuring the Bill’s compliance with the Constitution, decisions of the Constitutional Court, and international human rights standards.

In January, we expressed concerns about reports of excessive use of force, including live ammunition, by Zimbabwean security forces during protests following the announcement of an increase in petrol prices.  We are not aware of the indictment or prosecution of a single alleged perpetrator of human rights violations committed during or after of those protests. The Government does not appear to have carried out the requisite investigations into the violence, including the alleged excessive use of force by security forces, in a prompt, thorough and transparent manner, with a view to accountability, and we urge it to do so without further delay.

We also urge the Government to redouble its efforts to address the current challenges through a national dialogue, with the support of the international community, and to ensure that civil society organizations, human rights defenders, and activists can carry out their activities in a safe and secure environment without fearing intimidation or reprisals for their work.

Zimbabwe police ban another protest against economic woes
Zimbabwe sanctions: Sadc calls on US and EU to drop policy

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Zimbabwe sanctions: Sadc calls on US and EU to drop policy – The Zimbabwean

Zimbabwe has been reeling with high inflation and shortage of basic supplies including bread and fuel

A group of 16 African countries has called on the US and EU to “immediately lift” economic sanctions imposed on Zimbabwe.

The policy was hurting the region, said Tanzania President John Magufuli, who is also the chairman of the Southern African Development Community (Sadc).

The sanctions were imposed in 2002 when Robert Mugabe was president.

President Emmerson Mnangagwa blames them for crippling development in the country.

He says removing them would attract Western investors to Zimbabwe after close to two decades of economic isolation.

Zimbabwe is reeling from high inflation and shortages of basic supplies such as fuel, power and water.

Inflation is currently at a 10-year high, shrinking salaries and pensions, while the price of bread has increased five-fold since April. About five million Zimbabweans are currently in need of food aid, according to the UN.

In March, US President Donald Trump’s administration extended economic sanctions by a year, saying they would not be removed unless political reforms take place.

Some 141 entities and top officials in Zimbabwe are on the US sanction list, the Reuters news agency reported in February quoting a US official.

President Mnangagwa, who came into office in 2017 after the army ousted his predecessor, has been facing protests against his economic policies.

Last week police violently dispersed anti-government protesters in the capital, Harare.

Police moved in, violently dispersing the protesters

What are the sanctions?

A United States travel and economic embargo remains in place for several senior officials of the governing Zanu-PF, members of the military and state-owned companies.

The European Union continues an arms embargo as well as sanctions against former President Robert Mugabe, his wife Grace and the firm Zimbabwe Defence Industries.

What did Sadc say?

Mr Magufuli, who took over the chairmanship of Sadc at the regional body’s summit in Dar es Salaam, said that the sanctions should be lifted because Zimbabwe, under President Mnangagwa, had opened a “new chapter”.

“These sanction have not only affected the people of Zimbabwe and their government but the entire region. It is like a human body, when you chop one of its part it affects the whole body,” he said.

“Therefore, I would like to seize this opportunity to urge the international community to lift sanctions it imposed on Zimbabwe.

“This brotherly country after all has now opened a new chapter and it is ready to engage with the rest of the world. It is therefore, I believe, in the interest of all parties concerned to see these sanctions removed.”

President Emmerson Mnangagwa speaking at an event in ZimbabwePresident Mnangagwa says sanctions are preventing investment

Sadc members will “collectively voice their disapproval of sanctions against Zimbabwe” through various platforms on 25 October, Dr Stergomena Tax, the body’s executive secretary, announced at the summit.

Last week’s protests in Harare were the first since January, when rallies against increases in the price of fuel ended in deadly clashes with troops in which 12 people were killed.

Mr Mnangagwa’s critics say that life for Zimbabweans is now worse than it was under Mr Mugabe, who ruled the southern African nation for 37 years.

His government has defended his economic policies, saying that they were “painful but necessary”.

Statement by Spokesperson for the UN High Commissioner for Human Rights
Constitution ignored – Zimbabwe Vigil Diary

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Constitution ignored – Zimbabwe Vigil Diary – The Zimbabwean

As usual, peaceful people were beaten and tear-gassed by the police for their temerity in protesting against the government. Among them were women singing protest songs. One helpless protester was repeatedly kicked. But they escaped comparatively lightly considering that half a dozen human rights activists had earlier been abducted and tortured.

Interestingly, the government blamed the abductions on CIO agents loyal to Mugabe – just as they blamed the Harare killings by soldiers in January on people who had ‘stolen’ military uniforms.

This time the MDC was forewarned by wild police allegations that the opposition was planning violence and they finally called off the protest to save unnecessary bloodshed.

But the damage to the government’s reputation is inestimable. The UN human rights office said the government should heed the people’s legitimate grievances over the economic situation and stop cracking down on protesters.

Who is going to take seriously Zimbabwe’s ‘open for business’ message when the constitutional rights of the people are trampled underfoot like this? Even Mugabe is so disaffected that he says he doesn’t want to be buried in Heroes’ Acre, prompting Mnangagwa to immediately send a delegation to Singapore to warn Mugabe that he had no option but to accept the badge of shame.

Heroes’ Acre badly needs Mugabe – and, for that matter, Mnangagwa and the rest of the Zanu PF leadership. As it is, hardly anyone bothered to go to the annual ceremony there on Monday.

Like Disneyland, it needs some new attractions. Fill up Heroes’ Acre as soon as possible.

Other points

  • A large group of Zimbabweans including Vigil activists joined an MDC demonstration outside the Embassy on Friday.
  • More congratulations to those who raised funds from their sponsors for the fundraising walk on 27 July: Abigail Chidavaenzi £483, Simbarashe Jingo £100, Alice Majola £10, Tatenda Mandiki £65 (in addition to £64 he has already contributed), Dambudzo Marimira £245, Patricia Masamba £110, Tarisai Matambanadzo £10, Esther Munyira £100 and Sikhumbuzule Sibanda £100. A special thank you to Esther Munyira for her hard work in collecting and accounting for all the contributions.
  • Thanks to those who helped set up the front table and put up the banners today: Nathan Chiyanja, Beaulah Gore, Alice Majola, Netsayi Makarichi, Tatenda Mandiki, Dambudzo Marimira, Nyarai Masvosva, Joyce Mbairatsunga, Mary Muteyerwa, Farai Mutumburi, Tsitsi Nyirongo, Hazvinei Saili and Ephraim Tapa. Thanks to Margaret Munenge and Joice for looking after the front table, to Farai, Nyarai, Hazvinei and Netsayi for handing out flyers, to Mary for drumming and to Tatenda, Netsayi and Tapiwa Muskwe for photos.
  • For latest Vigil pictures check: http://www.flickr.com/photos/zimb88abwevigil/. Please note: Vigil photos can only be downloaded from our Flickr website.

FOR THE RECORD: 20 signed the register.

EVENTS AND NOTICES:

  • ROHR Beach Barbecue. Sunday 25th August. Venue: Frinton-on-Sea, Essex CO13 9DN. Tickets: adults £20, Kids £10. Contact: Patricia Masamba 07708116625, Heather Makawa 07716391800, Esther Munyira 07492058109 and Daizy Fabian 07708653640.
  • The Restoration of Human Rights in Zimbabwe (ROHR) is the Vigil’s partner organization based in Zimbabwe. ROHR grew out of the need for the Vigil to have an organization on the ground in Zimbabwe which reflected the Vigil’s mission statement in a practical way. ROHR in the UK actively fundraises through membership subscriptions, events, sales etc to support the activities of ROHR in Zimbabwe. Please note that the official website of ROHR Zimbabwe is http://www.rohrzimbabwe.org/. Any other website claiming to be the official website of ROHR in no way represents us.
  • The Vigil’s book ‘Zimbabwe Emergency’ is based on our weekly diaries. It records how events in Zimbabwe have unfolded as seen by the diaspora in the UK. It chronicles the economic disintegration, violence, growing oppression and political manoeuvring – and the tragic human cost involved. It is available at the Vigil. All proceeds go to the Vigil and our sister organisation the Restoration of Human Rights in Zimbabwe’s work in Zimbabwe. The book is also available from Amazon.
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Zimbabwe sanctions: Sadc calls on US and EU to drop policy
Chief Ndiweni must be set free unconditionally

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Looming food insecurity in Zimbabwe – economist – The Zimbabwean

Wandile Sihlobo

Hardships due to Zimbabwe’s poor maize harvest are exacerbated by unstable economic conditions in the country, according to Wandile Sihlobo, chief economist of the Agricultural Business Chamber of South Africa (Agbiz).

Zimbabwe’s maize harvest is currently estimated at 800 000 tonnes, down by 53% from the previous year, according to data from the US Department of Agriculture.

The World Food Programme estimates that more than one-third of Zimbabwe’s rural population – about 3.6 million people – will face food insecurity by October 2019. By January 2020, the figure is expected to increase to 5.5 million.

“Zimbabwe’s maize prospects — its staple crop — are not in good shape because of a drought which delayed plantings at the start of the 2018/19 production season. And when it finally rained, it became rather excessive, as was witnessed during Cyclone Idai at the start of the year,” Sihlobo explains in the latest Agbiz newsletter.

He adds that droughts or floods always have a devastating impact on agriculture. However, in economically unstable countries – like Zimbabwe – the impact of an event like a drought usually continues for months after the end of the period of extreme weather conditions.

“Had Zimbabwe been an economically stable country – with efficient markets, policy and infrastructure – the effects of lower agricultural output would have been buffered by imports and government assistance to a certain extent,” says Sihlobo.

“But this is not the case in Zimbabwe. The economy, political environment and state resources remain fragile. The maize markets cannot function efficiently.”

According to Sihlobo, it is estimated that Zimbabwe still needs to import about a million tonnes of maize in order to fulfil its annual needs.
In his view, South Africa, Zambia and Mexico could be the potential suppliers of white maize to Zimbabwe.

“Aside from white maize, there are a number of countries that can potentially supply yellow maize to Zimbabwe, with the most likely ones being Brazil, Argentina, Ukraine and the US,” concludes Sihlobo.

Moral Authority is a pre-requisite for Good Governance
Zimbabwe police ban another protest against economic woes

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Chief Ndiweni must be set free unconditionally – The Zimbabwean

The MDC stands firmly by the side of Chief Ndiweni and the people of Ntabazinduna against the unjust attack and intimidation by the rogue regime.

Indeed, the MDC as the legitimate people’s movement will do everything in its power; legally, politically and diplomatically to make sure that the outspoken Chief Ndiweni is freed as soon as possible.

The unjust victimisation and persecution of the outspoken Chief Ndiweni has now added yet another justified reason for all the people of Bulawayo to actively join the people’s Free Zimbabwe march on Monday 19th August 2019.

Chief Ndiweni is the Voice of the Voiceless! He is a popular people’s chief, who is clearly now being victimised by the increasingly intolerant rogue regime for speaking the truth to power and also speaking out on behalf of the people.

Like the people of Zimbabwe, Chief Ndiweni must also be set FREE unconditionally.

lndeed, it is clear that under ED, Zimbabwe is NO longer open for freedom, justice or democracy!

Instead, Zimbabwe is now open for despotism and dictatorship!

Zimbabwe is now worse than the colonial regime under Ian Smith that the people of Zimbabwe fought against and finally defeated in April 1980.

The time has now come for the people of Zimbabwe to stand up and fight for their freedom once again.

As such, on Monday, the people of Bulawayo will now be marching for both their own freedom and in solidarity with Chief Ndiweni.

MDC: Change that Delivers

Daniel Molokele
MDC Spokesperson

Tobacco Wars: More footage emerges, this time showing attempted hit on cigarette baron Adriano Mazzotti – The Zimbabwean

Adriano Mazzotti. (Supplied)

New footage has emerged of what appears to be yet another attempt on the life of a cigarette industry boss, following a hit on Gold Leaf Tobacco Corporation’s Simon Rudland this week.

Rudland survived after being shot three times by a gunman as he was arriving for a meeting at the Fair Trade Independent Tobacco Association (FITA) offices in Oaklands, Johannesburg on Wednesday morning.

The shooter opened fire as Rudland pulled into the driveway in his Porsche Boxster. He managed to drive himself to hospital and is recovering.

FITA has decided to release footage of a separate incident targeting controversial businessman Adriano Mazzotti in June. Mazzotti is the director of cigarette company Carnilinx, which is also a member of FITA.

Simon Rudland, co-owner of Gold Leaf Tobacco Corporation and member of Fair Trade Independent Tobacco Association (FITA), was seriously injured in an apparent assassination attempt in Johannesburg on Wednesday morning.

There have also allegedly been death threats against Amalgamated Tobacco Manufacturers (ATM) bosses Yusuf Kajee and Paul de Robillard.

FITA’s chairperson Sinenhlanhla Mnguni says they believe they are dealing with something more sinister than they first thought.

“FITA decided not to release the footage of this incident at the time as we thought it was just a random criminal act, similar to those experienced by many South Africans on a day to day basis. But after the Rudland shooting, and death threats to FITA member Yusuf Kajee and his business partner, it is clear that FITA members are being targeted by far more sinister forces.

“For that reason, FITA members have now agreed to release the footage of this attack on one of our members. We feel it is in the public interest and we’re calling for information from the public at large in relation to these incidents clearly meant to intimidate our members. We are also calling on law enforcement agencies to intervene and protect FITA members from these criminal elements,” says Mnguni.

Mazzotti: ‘Similarities are sinister’

The latest released CCTV footage captures an incident which occurred on June 22, when Mazzotti was visiting his 88-year-old mother at his sister’s house in Illovo.

The video shows Mazzotti being ambushed by gunmen in a white VW Golf. He rams his vehicle into the Golf and the suspects flee. Initially, he thought it was a random hijacking attempt but has since changed his mind. The shooters in the attack on Rudland were also in a white VW Golf.

“The similarities are sinister and obvious, I thought it was random until the Simon incident. It was a quiet Saturday morning and I picked up on what was happening, and as they stopped behind me and I saw the firearms being pointed at me, I put the car in reverse and slammed into them twice.

“The guy closest to me got a bit crushed, I think, and the guys getting out the car on the other side got knocked off their feet. One of them ran to my window and pointed a firearm at me, but he looked in shock and seemed to be trying to pull the trigger and shouted ‘Move your car!’

“The whole thing was over in seconds,” says Mazzotti.

The tobacco baron is no stranger to controversy. Earlier this year, SARS obtained a High Court warrant to attach his movable property to the value of just over R33m, to pay his company’s debt to the tax man.

He’s accused of smuggling cigarettes and SARS claims he owes over R70m in VAT and excise duties. He has also been linked to funding political parties like the EFF, and the NDZ 2017 campaign for the ANC presidency.

FITA members targeted?

Commenting after the failed attempt on his life this week, Simon Rudland pointed the finger at his colleagues within FITA.

“I’m 100% sure it’s one of the [FITA] members. It’s such a cowardly act that they can’t confront me directly. My belief, and it’s only speculation, the coincidences of what has happened are going through my mind. With Gold Leaf being the biggest competitor, they have to protect their share of the market,” said the Zimbabwean national.

But FITA’s Mnguni insists the threat is coming from outside the organisation.

“We have discussed with Mr Rudland the issue of comments attributed to him in the media regarding the incident on 14 August 2019. He is rightfully upset given the circumstances, but we have cautioned him against making bold public statements at such an early stage in the investigations into the shooting incident.

“Rudland expressed that he simply wants whoever is responsible for the cowardly act perpetrated against him and his attorney to meet the full might of the law. In this regard, we give Mr Rudland our full support and backing collectively as an organisation.

“At this stage, we have decided to allow the police to conduct their investigations in relation to the aforementioned incident. We want whoever is responsible for this senseless and evil act to be apprehended and prosecuted swiftly,” says Mnguni.

Tensions have long been simmering between the smaller independent tobacco producers and the so-called “big boys”, the major producers who are affiliated with the Tobacco Institute of South Africa (TISA).

These heightened tensions have also been exacerbated by the recent release of a tell-all book about the clandestine black ops and violence associated with the industry, written by former tax sleuth, Johann van Loggerenberg. In Tobacco Wars, Van Loggerenberg details the dirty tricks, espionage and threats allegedly employed by FSS, the private security arm of TISA.

CiZC Youth Chairperson, Pride Mkono Remanded in Custody

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CiZC Youth Chairperson, Pride Mkono Remanded in Custody – The Zimbabwean

18.8.2019 5:07

Pride Mkono, the Crisis in Zimbabwe Coalition Youth Committee Chairperson has been remanded in custody to 29 August 2019. He appeared today at the Harare Magistrates Court around 2:30 pm in a case where the State alleges that he attempted to subvert a constitutionally elected government. Magistrate Mambanji advised him to seek bail at the High Court.

Pride Mkono

He is currently held at Chikurubhi Maximum Prison and joins Tajamuka leader, Promise Mkwananzi who is facing two counts of similar charges.

Pride presented himself to the police on 15 August 2019 after the police requested to interview him. He was accompanied by his lawyers from the Zimbabwe Lawyers for Human Rights who are representing him.

Mkono joins a list of 22 civil society leaders and human rights defenders and opposition leaders who have been charged with subversion since the beginning of the year.

More details to follow….

Press briefing note on Zimbabwe 

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Press briefing note on Zimbabwe  – The Zimbabwean

Rupert Colville

We understand that today’s planned protests in Harare have just been called off by the organisers, following a High Court decision to uphold a Government ban. The crowds that had already gathered were dispersed by police, with reports emerging of the use of force against protestors.

With opposition demonstrations still likely to take place in Zimbabwe in the near future, we urge the Government to find ways to continuously engage with the population about their legitimate grievances on the economic situation, and to stop cracking down on peaceful protestors. If demonstrations go ahead we urge the security forces and protesters to ensure they proceed calmly and without any violence.

We are deeply concerned by the socio-economic crisis that continues to unfold in Zimbabwe. While acknowledging efforts made by the Government, the international community and the UN in Zimbabwe to mitigate the effects of the crisis and reform process, the dire economic situation is now impacting negatively on the realization of the economic and social rights of millions of Zimbabweans.

Long-term neglect and structural deficiencies have contributed to hyperinflation, resulting in soaring prices for fuel, food, transport and health services, which is having a dramatic impact on the population, and particularly on marginalized working-class people. The fact that key commodities and services have become less affordable for poor families, means there is an increasing need for strong social protection measures.

The economic crisis is converging with the impact of cyclone Idai that hit Zimbabwe last March, as well as the El Niño-induced drought, to create a rapidly deteriorating humanitarian situation, with the result that around five million Zimbabweans, or one third of the total population of 16 million people, are now estimated to be in need of humanitarian aid.

Ahead of today’s planned protest, which was called off at the last minute, there were worrying reports of threats against citizens who wish to exercise their right to express their opinions of the economic situation via peaceful protests, with allegations of increased surveillance of, and threats against, civil society organizations by State agents.

More disturbing still, there have been reports of actual physical attacks on, and arrests and detention of, civil society leaders and activists over the past few months, with one human rights defender and one political activist reportedly temporarily abducted and severely beaten by unidentified armed men a few days ago, apparently because of their role in helping to organize the protests today. In the last few hours, we have heard reports of more such cases and are looking into them. Senior officials have also reportedly issued threats against organisers of demonstrations or against people who take part in them.

State authorities have a duty to ensure people’s rights to freedom of expression, and to facilitate and protect the right to peaceful assembly. In addition, we urge the Senate when reviewing the Maintenance of Peace and Order Bill to protect the essential democratic freedoms of peaceful assembly and demonstration by ensuring the Bill’s compliance with the Constitution, decisions of the Constitutional Court, and international human rights standards.

In January, we expressed concerns about reports of excessive use of force, including live ammunition, by Zimbabwean security forces during protests following the announcement of an increase in petrol prices. We are not aware of the indictment or prosecution of a single alleged perpetrator of human rights violations committed during or after of those protests. The Government does not appear to have carried out the requisite investigations into the violence, including the alleged excessive use of force by security forces, in a prompt, thorough and transparent manner, with a view to accountability, and we urge it to do so without further delay.

We also urge the Government to redouble its efforts to address the current challenges through a national dialogue, with the support of the international community, and to ensure that civil society organizations, human rights defenders, and activists can carry out their activities in a safe and secure environment without fearing intimidation or reprisals for their work.

CiZC Youth Chairperson, Pride Mkono Remanded in Custody
Zimbabwe commission asks FIFA to fire soccer bosses

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Zimbabwe has a plan to end 20-year standoff with creditors – The Zimbabwean

Mthuli Ncube

In an exclusive interview with Bloomberg News on Thursday, Finance Minister Mthuli Ncube dismissed rapidly accelerating inflation as “wage compression” and warned the country will have to endure four more months of economic pain. On Friday morning, police in the capital violently dispersed demonstrators protesting over the hardship his austerity measures have spawned.

“The big macro-economic decisions should be complete by year-end,” Ncube, 55, said in an interview at his office in central Harare. “In December, everything stops in terms of the big decisions. Beyond that, we focus more on jobs, growth, productivity and development.”

Almost a year into the job, Ncube, a Cambridge-university trained economics professor, has reined in state spending and boosted tax revenue. But his introduction of a new currency in June, accompanied by a ban on the use of the dollar, has seen the rapid erosion of spending power with the Zimbabwe dollar trading at almost 10 to the dollar. Its predecessor, a quasi-currency known as bond notes, was officially said to be at parity as recently as February.

Extreme poverty

Now many of the country’s 400 000 civil servants, who form the bulk of the middle class, are earning less than the $1.90 a day, defined by the World Bank as the line below which people are living in extreme poverty.

Zimbabwe’s annual inflation, the release of which has been suspended for six months, is officially 176% and shortages of fuel and bread are widespread. The government’s inability to pay for adequate electricity imports has crippled the economy with power outages of as long as 18 hours a day. The measures, which Ncube conceded were painful for citizens, are necessary if the country is to regain a sound economic footing, he said.

There’s a growing risk that the economic hardship may trigger unrest similar to violence that took place two decades ago, said Japhet Moyo, the head of the Zimbabwe Congress of Trade Unions, the biggest labour federation.

“We will experience the 1999 scenario, which had no co-ordinator and riots broke out spontaneously,” Moyo said in an interview.

At least one person was injured when police charged a group of protesters in Harare’s city centre, leaving a woman lying motionless on the street before she was taken to hospital by Red Cross personnel. More demonstrations are planned next week in major cities including Bulawayo, Mutare and Gweru.

While Ncube has won praise for imposing financial discipline on a notoriously profligate government, his comments on inflation strained the credulity of some analysts.Ncube said annual inflation data showed that wages haven’t adjusted quickly enough to the new exchange rate, and not that the country is heading for hyperinflation.

‘Economic gobbledygook’

“What people are feeling is really wage compression,” he said. “Prices adjusted instantly to the exchange rate, but wages have been too slow to catch up with the adjustment. The issue is about wage adjustment and I’m a big champion of wage adjustment.”

The finance minister is talking “economic gobbledygook,” said Steve H. Hanke, a professor of applied economics at the Johns Hopkins University in Baltimore. “By my measure, Zimbabwe’s inflation is the second highest in the world at 570%.” Venezuela has the world’s highest inflation.

Ncube planned reforms include establishing a nine-member Monetary Policy Committee that will reduce interest rates from 50%. Within 12 to 18 months, the nation plans to sell domestic bonds with a duration of as long as 30 years to fund infrastructure. In time, it will approach international markets, he said.

The reforms are aimed at restructuring the country’s $9 billion of external loans. Under a debt settlement plan, which Ncube said he’s discussing with creditors, Zimbabwe would complete an International Monetary Fund Staff-Monitored Program in January. It would then:

Borrow the $1.9bn it owes the World Bank and the African Development Bank from the Group of Seven industrialized nations immediately win $1bn in relief from the two lenders, which would be paid back to the G7 creditors

Expect so-called Paris Club creditors, to whom it owes $3.8bn in bilateral debt, to take a “haircut. “IMF Resident Representative Patrick Imam said conditions are not yet in place for the fund to provide financial support for Zimbabwe. The IMF’s SMP is being used to support economic and governance reforms in the country.

“Zimbabwe needs to build a track record to prove that it can implement reforms to tackle deep-rooted problems, as the hurdle rate for a financially supported program is high,” Imam said. Even Ncube’s supporters say that if his measures work, there is a lot more hardship in store for Zimbabweans.

“This situation is something which can persist for anything between three to five years of pain,” said Lloyd Mlotshwa, head of equities at IH Securities in Zimbabwe, who praised the finance minister for raising fuel and power prices that were previously subsidized by the government. “What can shorten this period is if there are funds poured in to the plug the gap.”

Update on the Arrest of CiZC Youth Chairperson

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