Biglaw Sexual Harassment Lawsuit Alleges Partner Wanted To Be ‘Sugar Daddy’

Another day, another Biglaw gender discrimination lawsuit. The latest case was filed by a former secretary at Troutman Sanders, Jessica Correa, against the firm and former transactional partner Gerald Francese (Francese is now a partner at Locke Lord).

The complaint describes escalating behavior that Correa says left her feeling “uncomfortable, vulnerable, and sexualized.” Francese allegedly began by using pet names for Correa and ogling her. According to the complaint, the increasingly aggressive inappropriate behavior included trying to kiss Correa, offering to be her “Sugar Daddy,” and inviting her to dinner and vacations. As reported by Big Law Business:

Francese, who had a reputation for being “very generous” with the staff, was soon calling her “cutie” and creating situations where he could stare at her breasts, Correa says. He also commented on and offered to adjust her clothing. Next came dinner invitations, which Francese really envisioned as dates, and physical touching, according to the complaint.

While at dinner one night, Francese mentioned Korean prostitutes and later tried to kiss her, the lawsuit says. He loaned her $2,600 when she had personal issues and then offered to be her “Sugar Daddy.” He ultimately kissed her twice against her will and retaliated when she worked up the courage to complain, Correa says.

Correa says when she complained about Francese’s behavior, he badmouthed her performance to HR, which led to her being “constructively discharged” from the firm.

Troutman Sanders and Francese have not yet commented on the lawsuit.


headshotKathryn Rubino is a Senior Editor at Above the Law, and host of The Jabot podcast. AtL tipsters are the best, so please connect with her. Feel free to email her with any tips, questions, or comments and follow her on Twitter (@Kathryn1).

The Best Law Schools In The World (2019)

It’s a good thing lawyers love law school rankings, because there are tons of them. Every year, it seems like there’s a whole new crop of law school rankings to fight about with your friends. Aren’t you getting tired of them? No, of course not. Lawyers love rankings more than they love money (okay, maybe that’s taking it a step too far).

You’ve seen the Princeton Review law school rankings (and like us, you probably wondered why the hell so much emphasis was put on student feedback over actual data). You’ve seen the U.S. News law school rankings (and you watched your deans play the blame game lest they be fired). You’ve seen the ATL law school rankings (and you cheered for realistic, employment-based metrics). You’ve even seen the Cooley law school rankings (and you’re hoping and praying that the school hasn’t gained a sense of shame and will someday put out another edition because it’ll surely be a LOLable work of disingenuous art).

But have you seen a ranking of the best law schools in the world? Here’s your chance.

Before we get to the World Law School Rankings, let’s discuss the methodology used by the Quacquarelli Symonds team at Top Universities (you can explore more in-depth explanations here):

Each of the subject rankings is compiled using four sources. The first two of these are QS’s global surveys of academics and employers, which are used to assess institutions’ international reputation in each subject. The second two indicators assess research impact, based on research citations per paper and h-index in the relevant subject. These are sourced from Elsevier’s Scopus database, the world’s most comprehensive research citations database.

These four components are combined to produce the results for each of the subject rankings, with weightings adapted for each discipline.

We know you want to see if any American law schools cracked the list, so we won’t make you wait anymore. Here they are, the top 10 best law schools in the world:

1. Harvard University
2. University of Oxford
3. University of Cambridge
4. Yale University
5. Stanford University
6. University of Melbourne
7. London School of Economics and Political Science
8. UC Berkeley
9. Columbia University
10. New York University

USA! USA! USA! More than half of the world’s top 10 legal academies are in America! Be sure to grab your ivy and roll around in it, because half of those American law schools are in the Ivy League. Congratulations go out to Harvard for finally coming out on top of both Yale and Stanford in a law school ranking. You already thought you were elite, but now the entire world has to give you a pat on the back.

Farther down the list, but still within the top 25 law schools in the world, you’ll see Chicago (#11), Georgetown (#17), and UCLA (#23 in the world, yet not in the U.S. News T14). Going deeper into the list, but still within the top 50 law schools in the world, you’ll find Michigan (#27), Penn (#30), Duke (#33), Cornell (#35), and Northwestern (#50). But… where’s UVA? Every other U.S. News T14 school has already been listed.

Alas, it seems that the school was ranked outside of the top 50 law schools in the world. Quacquarelli Symonds didn’t even bother to show UVA’s rank — all we know is that it fell somewhere between 51 and 100. Ouch, how does it feel to have landed in the “rank not published” section of the rankings? Sure, it’s great to be ranked so highly on a world scale, but it must be really disappointing to be the only T14 school left out of the world’s top 50. Better luck next year!

What do you think about these worldly law school rankings? Feel free to congratulate or condemn your alma mater — but be careful, the world is watching.

QS World University Rankings by Subject 2019 – Law [Top Universities]


Staci ZaretskyStaci Zaretsky is a senior editor at Above the Law, where she’s worked since 2011. She’d love to hear from you, so please feel free to email her with any tips, questions, comments, or critiques. You can follow her on Twitter or connect with her on LinkedIn.

Morning Docket: 08.13.19

* Data indicate the average attorney salary has doubled over the last 20 years. Adjusted for inflation though that’s about a 25 percent bump. Meanwhile, if law school tuition over that period only increased 25 percent, schools would be $40K cheaper now. [Law.com]

* Predictably, a staffing shortage is being blamed for Epstein’s death so everyone can start the push to hire a ton more guards rather than revisit overcrowding or reforming fundamental incarceration policies. [Huffington Post]

* Trump goes to war with the bald eagle. Finally, his revenge is complete. [NY Daily News]

* California and New York ban discrimination based on hairstyle almost 30 years after the Paulette Caldwell article pointing out exactly how messed up this practice is. [Law360]

* Biglaw shows up in force to help Burford fight back against short seller. [American Lawyer]

* ‘Space Law and Poop’ is coming to a 3L seminar near you. [Live Science]

* Ninth Circuit shuts down another attempt to get college football players a cut of the money they earn. [Courthouse News Service]

Zimbabwe after Mugabe: The country where pensions have disappeared – The Zimbabwean

Vesta says it saddens her to see husband Teddie sitting in the same place “from morning to night”

Retired couple Teddie and Vesta always imagined they would live out their golden years with dignity.

He is 85, and served one company for 46 years as a cleaner, eventually rising to become a receptionist. Vesta says that increasing inflation has robbed them both of a comfortable retirement.

A year ago Teddie’s monthly pension was worth $80 (£66), it’s now worth $10.

“I am saddened when I see my beloved sitting in that corner from morning to night,” Vesta tells the BBC.

“I would love to give him a banana, an orange or a cool drink. But we can’t afford it. A banana costs $0.40.”

The signs of a failing economy are everywhere. Supermarket trolleys are hardly ever full these days and shoppers linger, contemplating their purchases.

The prices of basics like sugar and cooking oil jumped by 200% in the 12 months to June, according to official statistics. So did the price of healthcare.

Meanwhile the cost of bread has gone up fivefold since April.

As of June 2019, inflation had already hit 98%. In July, the local currency, the Zimbabwe dollar, was reintroduced after a decade of using the US dollar and other international currencies. Annual inflation then soared to 176%.

The local currency’s value has continued to drop but the government has now suspended the publication of inflation statistics, citing the change of currency.

The latest economic crisis comes as Zimbabwe’s President Emmerson Mnangagwa marks his first anniversary as an elected leader.

Robert Mugabe was ousted when his long-time ally-turned-rival swept to power with the military’s help in November 2017. Elections were held on 30 July the following year.

President Mnangagwa has dubbed this era the “second republic” – one based on recovery, entrenching democracy and reversing decades of ruinous policies under his predecessor.

Initially many Zimbabweans believed him.

Zimbabweans were initially hopeful that the ousting of Robert Mugabe would persuade investors to return, bringing much-needed cash injections to local businesses.

But hope has faded and old ghosts have returned.

Fuel is in short supply. The government says it doesn’t have enough foreign currency to buy it. Rolling power blackouts are also back.

Authorities blame ageing power plants, low electricity tariffs as well as the worst drought in 40 years which threatens to shut down the main hydro-electric plant at Kariba.

A constant hum has returned to the city – the sound of generators – as boutiques, restaurants, supermarkets try to stay in business. With a sevenfold increase in fuel costs since January, this too will force prices of goods up and further fuel inflation.

‘No quick fix’

Business representatives say power cuts, sometimes lasting up to 18 hours a day, have cost the country $200m (£165m) in lost revenue.

A child doing his homework by candlelight in Harare, Zimbabwe - June 2019AFP

Newly appointed Energy Minister Fortune Chasi believes there is no quick fix.

Despite a recent 300% tariff hike, electricity is still heavily subsidised by the state. Zesa, the state power firm, is virtually broke.

“The anger and frustration is understandable and should translate into creating a viable entity,” Mr Chasi tells the BBC.

“Our tariff is still below cost-effectiveness and we have a delicate commodity. That is why I keep saying people should pay their bills: Zesa is owed $1.2bn.

“Everyone from every sector owes money.”

Economists say inflation is likely to continue to surge. Local production remains low, causing an over-reliance on imports and a shortage of foreign currency.

Government spending, meanwhile, remains excessive and investor confidence low.

Zimbabwe's President Emmerson Mnangagwa lights the Eternal Flame of Freedom during Zimbabwe Independence Day celebrations at the National Sports Stadium on April 18, 2018 in Harare.President Mnangagwa, seen here lighting a torch on independence day, says he wants to deepen democracy in Zimbabwe

The authorities have introduced austerity measures – these lowered subsidies on fuel, power and healthcare and drove up prices for Zimbabweans. President Mnangagwa believes this is essential to boost production.

“It hasn’t been easy. Good ground worth celebrating has been covered with your help,” the president said in a televised address to the nation, marking a year since his election victory.

“A solid foundation has been laid for more and greater gains in the future,” he continued, “and while the beginning may be painful, the middle- to long-run will deliver more jobs, economic stability, growth and development.”

Austerity bites

Critics of President Mnangagwa say he is flying blind, and rashly implementing ill-considered policies without consultation. They believe he is leading Zimbabwe back to 2008.

That was the year Zimbabwe hit the record books. Inflation peaked at 500bn%. Bank notes from that time, including one for 100 trillion, are now collectors’ items.

Economist Godfrey Kanyenze says the country could be on the brink of hyperinflation.

“Hyperinflation is when month-on-month inflation rises above 50%,” he explains. “In June it was at 39%. We are currently 11% short of hyperinflation, so this is chronic high inflation.”

He doesn’t believe Zimbabwe’s government has a workable, long-term plan for recovery.

BBC

Zimbabwe is experiencing chronic high inflation”

“Most developed countries undertake social impact analysis. Before you implement a policy, you project its likely social impact, then you prepare for it,” Mr Kanyenze says.

“But there wasn’t that preparation, especially in the area of salaries.”

One new measure however has succeeded in cushioning Zimbabweans against rising costs. Public transport subsidies now mean commuters pay about a quarter of what private sector operators charge for the same journeys.

Mr Mnangagwa’s supporters argue that it was always unrealistic to expect a quick fix to dampen a crisis that has been decades in the making.

There is some light, though. Zimbabwe says it has paid some its debt to South Africa’s state-owned power utility, Eskom, paving the way for some imported power.

Meanwhile the government has warned that the economy will contract this year. This is hardly good news for pensioners like Teddie and Vesta.

They don’t want to hear that before things get better for Zimbabweans, they are likely to get worse.

The Motlanthe Commission’s anniversary of shame

Post published in: Business

The Motlanthe Commission’s anniversary of shame – The Zimbabwean

Soldiers stand on and next to an armoured vehicle parked in the central district of Harare, Zimbabwe, 16 November 2017. EPA-EFE/AARON

First published by ISS Today

A year ago on 1 August 2018, Zimbabwean soldiers killed six civilians on the streets of Harare. The date also marks the moment President Emmerson Mnangagwa’s carefully laid plans started to unravel.

To encourage investment, Mnangagwa had intended to show a commitment to democracy through an election in July 2018 which would pass as halfway respectable. He almost succeeded, until violent protesters took to the streets of Harare demanding the immediate release of the election results.

Under the command of Brigadier-General Anselem Sanyatwe, soldiers were deployed to contain the situation. They did so by firing live ammunition at fleeing and terrified civilians who happened to be in the city centre at the time. When the smoke cleared, the six dead lay in pools of blood before the cameras of the international media who had gathered to report on the polls.

Everyone wanted to know who was to blame for the deployment of armed soldiers against civilians, presenting the administration with a dilemma. If government admitted that this was the decision of defence minister and former Zimbabwe Defence Forces commander Constantino Chiwenga, who had led the November 2017 “coup” that brought Mnangagwa to power, this would be to throw an important ally under the bus.

Under Zimbabwe’s new constitution, the military can only be deployed for public order purposes with the authority of the president. Without such authority, Chiwenga’s decision would have been unlawful. If presidential authority had been given, the blood of the six was on Mnangagwa’s hands.

Mnangagwa remained silent on the question of authorisation, avoiding such awkward questions by moving quickly to establish a commission of inquiry. He appointed seven commissioners who would be required, in part, to investigate his own conduct. To give the commission a veneer of respectability, four of the seven were from outside Zimbabwe.

The commission was headed by former South African president Kgalema Motlanthe. That the commission’s task was damage control was made apparent by the inclusion among the commissioners of well-known Zimbabwe African National Union-Patriotic Front apologist Charity Manyeruke, and by the fact that one of the terms of reference of the commission was to determine what “necessitated” the deployment of soldiers thus foreclosing inquiry into a crucial aspect of the events.

The result was a report tailor-made to Mnangagwa’s requirements. The report commences by contrasting Mnangagwa’s calls for peace before the elections, with what is called ‘overwhelming video evidence’ of Movement for Democratic Change-Alliance (MDC-A) leader Nelson Chamisa inciting violence.

As an example, the report references a video of a rural rally addressed by Chamisa and, presumably, this video was selected as being the most illustrative. Clicking on the link given in the pdf of the report takes one back to the report online and not to the expected video clip.

A video of the entire rally is, however, available on YouTube. Chamisa speaks entirely in Shona, so only the three Zimbabwean commissioners could have understood what he said. Chamisa does not say the words ‘quoted’ in the report or anything even remotely similar.

Other video evidence in this regard referred to by the commissioners is similarly defective. Yet this “evidence” clearly informed the finding by the commission that the MDC-A was responsible for the violent demonstration and that it was pre-planned.

This isn’t the only key finding based on patently fabricated evidence. The commission found that the troops had been deployed in accordance with constitutional requirements. For this, they accepted a paper trail supplied by the government.

This comprised a letter by the district police chief on the ground to the provincial police chief; a letter from the commissioner-general of police to the home affairs minister; and then a letter from the home affairs minister to Chiwenga as the defence minister. These letters all followed the procedure set out in a section of Zimbabwe’s public order legislation – a section rendered void by the later constitutional requirement that presidential authority was necessary.

The government dealt with that problem by adding three more letters: one from Chiwenga to the president seeking the necessary authority; a second from Chiwenga to the commander of the Zimbabwe Defence Forces stating that he had obtained the necessary presidential authority, copied to the home affairs minister; and a third from the latter to the police chief advising of the authorisation. Note the gap in the paper trail at this point.

There is no letter from the president, so we just have Chiwenga’s word for the authorisation, leaving it open to Mnangagwa to deny this if necessary. The troops were deployed at 2.30pm. The request for deployment was made at 1pm. So the commissioners were asked to believe that all six letters were written, printed and hand-delivered in the space of 90 minutes.

That is 15 minutes per letter, with the letters containing citations of the relevant sections of the law and constitution and setting out the events of the morning. Three of the four letters requesting deployment contain the same grammatical error. They were obviously generated ex post facto and, it seems likely, on the advice of the attorney-general.

The recommendations of the commission are no less disingenuous. They include that the perpetrators of crimes on 1 August be prosecuted. In the context of the report, this refers to the demonstrators who destroyed property. And the soldiers who killed people? They are to be regarded as in “breach of discipline”, to be identified by ‘internal military processes’ and “sanctioned”. Even this much has not happened.

Before 1 August 2018, such was the eagerness of the western international community to see an end to the Zimbabwe crisis that it appeared prepared to accept cosmetic changes intended to signal a move towards reform. No more. The United States has ignored the commission’s actual recommendations, and demanded implementation of the report through the criminal prosecution of the soldiers responsible for the killing.

To mark the anniversary, and in the absence of any action by the Government of Zimbabwe, they have slapped a travel ban on Sanyatwe who commanded the soldiers. The commissioners should be marking the anniversary by hanging their heads in shame. DM3

Derek Matyszak is a senior researcher; Peace Operations and Peacebuilding, ISS

Zimbabwe after Mugabe: The country where pensions have disappeared
Children suffer from Zimbabwe’s economic turmoil

Post published in: Featured

Children suffer from Zimbabwe’s economic turmoil – The Zimbabwean

“I am not a street kid. I come here to sell my things, go home and use the money to buy food,” said Tanyaradzwa, who did not give his last name to protect his privacy.

With power cuts lasting 19 hours per day, debilitating water shortages, inflation at 175 percent and many basic items in scarce supply, Zimbabwe’s children are the silent victims of the once-prosperous southern African country’s debilitating economic downfall.

For his family of six to eat, Tanyaradzwa must hang around the bar at the popular Elizabeth Hotel in hopes of cashing in on afternoon drinkers and passers-by who want to buy cigarettes, he said.
His parents run a small vegetable stall in Glen View, a working class residential area, but what they make is hardly enough to pay the bills, let alone buy food, he said.
Many people can no longer afford to put food on the table without the help of their children — no matter how young.

Children are forced to juggle between school demands and supplementing the family income through street vending or selling at small stalls.
“These holidays just mean more work. There is no break, because I now have no excuse not to work every day,” said Tanyaradzwa.

On the adjacent, busy street named after former longtime ruler Robert Mugabe, children joined elders pushing fruit and vegetable carts. Some kids held cardboard boxes selling items ranging from cigarettes, cell phone airtime, sweets and clothing.

According to Mercy Mpata, a teachers’ representative, the demands are taking many children’s focus away from school.

“There is a lot of absenteeism because the children have a lot on their plate,” said Mpata, the spokeswoman for the Association of Rural Teachers of Zimbabwe.

“Even if they come (to school), they are either sleepy or, instead of concentrating on school work they are busy thinking ‘Where will we get the next meal if I don’t sell enough items after school today?’“
Teachers have their own grievances. They are paid the equivalent of about $50 a month and, like the rest of the civil service, say they cannot live on those wages, which they call “slave salaries.”

“We live in the community. We interact with these children and their parents. They are like family. That’s why we always try to give it our all … but hungry teachers teaching hungry children, that’s tough,” said Mpata.
The food situation is dire in Zimbabwe, with about a third of the country’s 17 million people being food insecure due to drought and the worsening economy, according to a report released this month by UN agencies, international aid organizations and the government.

President Emmerson Mnangagwa declared the drought a national disaster on Tuesday. On the same day, the UN launched a $331 million appeal to mitigate the unfolding disaster. Children, according to the appeal, are some of the hardest hit. Close to 160,000 children and adolescents will need welfare and child protection services, according to the UN.

“There is a risk that children and adolescents will increasingly experience psychosocial distress as some are likely to drop out of school, pushed away from home to seek employment,” said the UN in its appeal for funds.
Expectations were high that Zimbabwe’s economy would grow following Mugabe’s departure at the end of 2017. But the economy did not take off and will contract 3 percent this year, Finance Minister Mthuli Ncube, said this month.
After inflation reached a decade-high of 175.6 percent last month, Ncube suspended the country’s monthly inflation reports, saying that last year’s prices were in US dollars and now they are in Zimbabwe’s currency, introduced in June, so they are not comparable.

However, that has not stopped schools from feeling the pinch of rising prices and eroding incomes. For the coming school term, some boarding schools are asking parents to provide food instead of paying school fee increases.
But that’s just for the fortunate children who still have parents and guardians able to afford such boarding facilities.

For many children such as Tanyaradzwa, juggling between school and eking out a living takes a toll, even as they desperately hold on to bouts of hope.

“I have dreams, big ones,” he said, smiling. “I want to be a lawyer.”
To achieve that dream, he is sacrificing much of his childhood.
“There is no time to play with friends,” he said. “The work, the school, it takes all of my time.”

Zimbabwe businessman: My shelves are empty – The Zimbabwean

13.8.2019 8:36

Victor Gurajena’s business in Zimbabwe is struggling in a dire economic environment.

Victor Gurajena

He imports cosmetics and medical supplies but with limited access to foreign currency, his warehouse remains empty.

Fuel shortages and a lack of power also make life very difficult for the Harare-based businessman.

Video producer: Tendai Msiyazviriyo

Children suffer from Zimbabwe’s economic turmoil
Zimbabwe gets loans to boost electricity supplies

Post published in: Business

Zimbabwe gets loans to boost electricity supplies – The Zimbabwean

Since May, many children have been doing their homework by candlelight because of blackouts

The government announced that the finance minister had concluded the loan agreements in the last few months, the paper says.

But the $23m and $19.5m loans obtained from the Export-Import Bank of India are unlikely to immediately ease rolling blackouts.

The paper says the loans are for upgrading power plants in Bulawayo and Hwange.

Since May, power has only been available in Zimbabwe for seven hours each day, coming on late at night.

Business representatives believe the blackouts have cost the country $200m in lost revenue.

The government has blamed a drought that has led to low water levels at the major hydro-electric dam, Kariba.

It also has little financial capacity to import all its power needs.

Zimbabwe’s prisoners bear full brunt of economic meltdown

Post published in: Business

Zimbabwe’s prisoners bear full brunt of economic meltdown – The Zimbabwean

“I don’t remember when I last ate meat,” says Tobias Gomba, an inmate serving a lengthy prison sentence at Zimbabwe’s main prison, Chikurubi Maximum Prison on the outskirts of the capital, Harare.

“This winter has been the worst for us here as we hardly have any blankets at all. We know we are prisoners, but conditions here make it more than a double punishment for us,” continues the 34-year old who still insist that he was wrongly convicted for a livestock theft charge. He has served three out of the mandatory nine-year sentence that the crime carries.

Gomba is one of the nearly 21 000 citizens of Zimbabwe that find themselves incarcerated at the country’s 46 prisons at a time when the economy is deteriorating so fast that even those citizens fortunate enough to make it into the country’s small working class are now resorting to sleeping at work because their salaries can now barely cover basics.

The government on its part government cannot pay it’s own workers, let alone providing essentials to hospitalsschools and other social services. In such a situation of dire economic crises, one can only shudder to imagine what the plight of the country’s prisoners could be like.

Chikurubi Maximum Security Prison, just like all other prisons in the country, is facing serious overcrowding in addition to worsening shortage of medicines, food, clothing and other essentials as the economically-crippled government struggles to fulfil even the most basic of its duties.

Convicts and wardens at Chikurubi prison – where there has been no running water for more than a decade – bemoan packed cells and shortages of food, clothes and bedding are commonplace. In the prison hospitals, basic painkillers and antibiotics are hard to come by for those prisoners unlucky to fall sick, resulting in some of them succumbing too easily treatable conditions.

“We don’t have drugs for… ailments like pneumonia and meningitis. We need a functioning X-ray machine. As of now, our machine is down and yet this is a basic tool required for diagnosis,” Blessing Dhoropa, a doctor at Chikurubi prison hospital, told legislators who toured the facility in June to see for themselves the harrowing conditions under which convicts serve their sentences.

Prisoners murmur about the thin diet of maize porridge without salt or sugar for breakfast, followed by a thicker version of the same porridge, a local staple known as sadza, which is served with boiled cabbage or beans for lunch and dinner. There is no meat protein in the diet.

Zimbabwe is going through yet another round of severe economic hardships similar to that which the poorly managed southern African nation went through over a decade ago when its inflation breached the 500-billion mark, in the process wiping away citizens’ incomes and savings alike.

“If allowed to go unchecked, the situation in the prisons are likely to return to those of 2008/9,” said Tsitsi Fadzaniso, a member of a local religious organization that regularly visits inmates to assist them spiritually and materially. “It should not be allowed to get out of control.”

Zimbabwe’s prison facilities are designed for 13 000 inmates, but they are carrying close to 21 000 people.

A study of the country’s prisons carried out last year by the Zimbabwe Human Rights NGO Forum, an amalgamation of human rights NGOs in the country, concluded that prison conditions in Zimbabwe do not comply with basic local and international standards.

The Zimbabwe Lawyers for Human Rights (ZLHR) also condemnedsuch “deplorable” conditions, which it said, “exposes inmates to illnesses and psychological trauma”.

In The Midst Of Economic Challenges, Zimbabwe Finds A New Ally In The UAE – The Zimbabwean

Zimbabwe's President Emmerson Mnangagwa looks on as he arrives ahead of the inauguration of incumbent South African President on May 25, 2019 at Loftus Versveld stadium in Pretoria. (Photo by SIPHIWE SIBEKO / POOL / AFP) (Photo credit should read SIPHIWE SIBEKO/AFP/Getty Images)

Zimbabwe’s President Emmerson Mnangagwa looks on as he arrives ahead of the inauguration of incumbent South African President on May 25, 2019 at Loftus Versveld stadium in Pretoria. (Photo by SIPHIWE SIBEKO / POOL / AFP) (Photo credit should read SIPHIWE SIBEKO/AFP/Getty Images)

Zimbabwe is going through an unbelievable socio-economic crisis and is slowly reaching a tipping level. With skyrocketing inflation, a biting Forex crunch and failing institutions among the myriad issues the leadership of President Emmerson Mnangagwa is grappling with, many investors are scrambling for safety. And yet, the United Arab Emirates is making bold overtures to invest in the country’s economy and is exploring new areas of partnership with the Southern African country.

Last December, Sheikh Khalifa bin Zayed Al Nahyan, the President of the UAE, issued a decree to establish an Embassy for the UAE in Zimbabwe. The UAE-government has also donated millions of dollars worth of medical equipment to the country and delegations of prominent businessmen from the Arab emirate have been visiting Zimbabwe recently to explore opportunities there.

Zachary Campbell Smith, a Washington D.C.-based, Emerging Market geopolitical analyst has long documented African investment opportunities and in association with Senior Fellows at the Arcadia Foundation, Zimbabwe opportunities and challenges. I recently caught up with him in New York where we discussed the co-operation between the United Arab Emirates (UAE) and Zimbabwe’s new, struggling government.

MN: For decades, while under the rule of former President Mugabe, the Republic of Zimbabwe suffered tremendous socioeconomic challenge. Freedoms were stifled, heavy taxation on foreign integration coupled with indigenization policies drove away foreign investment; over the course of years, each election to potentially bring about change to this set of circumstances drew controversial results, keeping his ZANU-PF Party in control. However, you’ve since been following the administration of President Mnangagwa and in particular, his promotion to the world that under his leadership, Zimbabwe is once again open for business.  The President is a long-time member of the ZANU-PF. In your opinion, can we expect more of the same or is there real potential for the President’s developmental agenda to bear fruit?

ZS: There’s no question that the international community needs to take a fresh look at the Republic of Zimbabwe. Unlike Robert Mugabe, President Mnangagwa has dedicated his Presidency to redefining ‘business as usual’ in the Sub Saharan African potential economic power player and has been making his rounds internationally to incentivize trade and investment with Zimbabwe. A few intrepid nations such as the UAE have taken note of this tangible difference in leadership, the openness of his Administration to accept the realities of the Republic’s geopolitical situation, his work to rehabilitate the quality of life for Zimbabwean people (putting Party politics aside) while at the same time, acknowledging the Administration’s renewed drive to leverage the nation’s vast natural resources and trade potential that have drawn attention historically.

MN: What are some of the key factors that have influenced the strengthening of bilateral ties between the UAE and Zimbabwe?

ZS: The UAE is clearly setting a milestone in global investment in Africa for others to follow. The strengthening of bilateral ties can, in part, be credited to the economic liberalization policies and policy implementation efficacy of the new Administration of Zimbabwe President Emmerson Mnangagwa. The Zimbabwe I see today has rapidly reversed from the indigenization act and longstanding overregulation and financial mismanagement when Zimbabwe’s government overstretched its roles in key economic sectors and created conditions which stifled foreign investment and integration. This hindered their own prospects for mutually beneficial global partnerships and stifled growth.

MN: Can you share some more details with our readers on how this cooperation with the UAE is shaping up?

ZS: Looking at the big picture, there is a myriad of activity right now that should raise eyebrows. Firstly, the UAE are clearly looking for ways they can apply technology and social development to be of immediate use to the Zimbabwean people. They take health care very seriously, and that’s why they recently contributed $2 million in equipment and medicines to Zimbabwe’s National Pharmaceutical Company, NatPharm, with an eye on working together even more directly to open a production facility in-country.

Second and perhaps, as I mentioned, one of the reasons that we find the UAE investing in such a major way in the future potential of this country is due to Zimbabwe’s drive to privatize a huge number of assets. Zimbabwe is making great strides to reduce its budget deficit from 12% to 5% of its GDP, cut bureaucratic red tape and concurrently encourage foreign direct investment (FDI). To accomplish these initiatives, they have recently been privatizing once-nationalized institutions, such as the country’s two main telephone and internet operators, TelOne and NetOne.

Zimbabwe is creating a more conducive climate for open investment and the UAE, quite frankly, have the versatility and political stability to quickly and effectively take them up on the opportunity.

MN: Sounds like a win-win for both countries.

ZS: The UAE are really demonstrating to the government of Zimbabwe and its people what their capacities are and also where their values lie. When the two work in concert, they can achieve great things. The UAE are a major player in global commerce and in step with their 2017-2021 African Investment Agenda, they clearly see tremendous opportunity in working together with Zimbabwean companies. That means building a healthy relationship that works both ways. In 2017, Zimbabwe registered a $307.6 million trade surplus with the UAE. The business interests of companies from the UAE run the gamut, from information technology, to minerals, renewable energy, and – importantly – agriculture, tourism and health. Let me emphasize the fact that the UAE really envisions an opportunity for Zimbabwe to once again become the “breadbasket of Africa” with the right investment and the right technology.

MN: It sounds like you’re envisioning the concept of their economies growing together – quite literally?

ZS: You’re right. The places where the two countries complement each other are the places where they both can succeed. This is a principle that has helped drive Dubai and the wider UAE to become the place it is today.

MN: How has the UAE’s relationship with the relatively new Government of President Emmerson Mnangagwa been so far, in your view?

ZS: I’m told (and can endorse) that the UAE have noticed a tangible difference in the kind of synergetic relations they’ve built with President Emmerson Mnangagwa and everyone in his Administration to date. There’s a new energy in Harare, and a real commitment to more deeply integrate Zimbabwe with key players in the global economy. This comes from the new Government’s visible desire to accelerate the pace of economic improvement in Zimbabwe, and to us, that’s a very good sign. The signing of Double Taxation and Bilateral Investment Protection Agreements has also been instrumental in lifting the bilateral relationship with the UAE.

MN: Is there anything on the horizon you can forecast?

ZS: Expect more cross-sector investment. I don’t want to sound overly optimistic as there are still real challenges in the country, but there is good reason to believe that we will see a doubling, if not tripling of the kind of investment launched by UAE in the very near future. The world should receive the message loud and clear that Zimbabwe is open for business again.

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Post published in: Business