Zimbabwe Business Watch : Week 27

July 3rd, 2009

The end of the first three months of dollarisation has comer to a close. Most companies have moved on from the relief of earlier in the year and the reality of lack of liquidity, competitiveness, imports, costly borrowing and punitive utility bills is the preoccupation. Bank deposits continue to grow but there is still sufficient political risk to ensure that money does not stay long with the banks and then they, in turn, often fail to provide the stipulated credit to borrowers. Those with the money are able to achieve around 12% on the USD and this money is then not available to industry. More and more investors are snooping around. There are suggestions that imports have dropped off again as external lines of credit have been temporarily exhausted.

My day with Gift, a Zimbabwean street-kid

July 2nd, 2009

Street kid living in a ditch

My tour guide is Gift, 18 years old, with fiercely red eyes that stared out from a gaunt sallow face. Gift is from Nyanga originally, he left school in Form one, and has never had a job. He “works” the streets, the systems, watches cars, cleans cars, buys and sells commodities - and he lives in a ditch.

I have watched Gift grow up from a skinny little kid into even skinnier adulthood. There is a home for street kids in Bulawayo run by a wonderfully caring church group, but after Gift’s initial stay with them, he ran away, preferring the freedom of the streets. We took a trip to his “Home” which is not far from his main haunt - a suburban shopping centre in what was once an affluent residential suburb. Not any more!

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“Gone to Egoli”: Economic survival strategies in Matabeleland - a preliminary study

July 1st, 2009

Gone to Egoli - report cover

The second report released yesterday by the Solidarity Peace Trust is titled  ‘Gone to Egoli’. Download the full report from the SPT website, or from Sokwanele’s document archive.

Executive Summary

There is not much likelihood that the formal economy in Zimbabwe will recover any time soon. It is likely to take over a decade before industry begins to recover in any meaningful way, and in the interim, Zimbabwe will continue to lose her youth to the diaspora, and those left behind will struggle to survive. Particularly in rural areas, grinding poverty is likely to be a factor for the indefinite future.

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Walking a thin line: The political and humanitarian challenges facing Zimbabwe’s GPA leadership - and its ordinary citizens

July 1st, 2009

Cover of SPT report: Walking a Thin Line

Solidarity Peace Trust released two new reports yesterday. Download ‘Walking a thin line’ from the SPT website, or from Sokwanele’s document archive.

Executive Summary

The Global Political Agreement signed on 15th September 2008 was an uneasy compromise between the two MDCs and Zanu PF, and was the result of a combination of factors: the weakening of both Zanu PF and the opposition, together with the social and civic forces that supported the MDCs; the disastrous economic and humanitarian descent in the country; pressure from SADC; and growing international isolation of the Mugabe regime. Moreover while for Zanu PF the GPA was a modality to claw its way out of the economic crisis and to begin a normalistion of international relations, the MDCs accepted the agreement as their only viable route to power, and a vital opportunity to begin a process of national political and economic revival.

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Underlying causes of cholera in Zimbabwe remain unattended to

June 30th, 2009

The video footage above shows sewage freely flowing along the perimeter of Lobengula Primary school (Bulawayo) - you can hear children shouting and playing near-by in the background.

It’s cool and dry in Zimbabwe at the moment, but when the rainy season ensues, and the weather turns hot, the threat of a massive cholera epidemic looms large again. This footage, and the images included in this post, clearly show that unhygenic conditions persist.

Rubbish in Makokoba
Rubbish left uncollected alongside a road in Makokoba, a high density residential area

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MDC MP sentenced to seven years on charges of kidnapping - MDC-T

June 29th, 2009

Via MDC Mailing list — The MP for Mutare West in Manicaland province, Hon. Shuah Mudiwa, was on Saturday sentenced to seven years in prison on false charges of kidnapping.

Allegations against the MP are that he and two other MDC supporters kidnapped a 13 year-old girl in his constituency during the run-up to the 27 June, 2008 presidential run-off.

Two and a half years of the sentence were suspended.

Hon. Mudiwa, today filed papers at the Mutare Magistrates’ Courts appealing against his imprisonment.

The MDC views the sentencing of Hon. Mudiwa as an attempt by Zanu PF and other retrogressive forces in the inclusive government to whittle down the party’s majority in parliament.

The MDC is the majority party in parliament after winning 100 seats in the House of Assembly in 29 March 2008 harmonised elections.

Several other MDC MPs are also facing trumped-up charges on various allegations.

Sokwanele note: Veritas warned that MDC-T MP seats could be under threat. Read our earlier blog post here -
MDC-T Parliamentary Seats Under Threat - Veritas

Refugees a target of police corruption in South Africa

June 29th, 2009

This blog was sent to us by a Zimbabwean refugee trying to survive in South Africa. It details the experiences that some foreigners have at the hands of the more corrupt members of the South African police force.

The Police in Johannesburg have introduced the stop and search operation which only sees it targeting foreigners. This is suppose to be a good move because it was introduced to offer safety for the Confederations Cup (soccer) that is underway and 2010 World Cup that is to be held next year but the police are abusing the move for their personal gains.

Everyday I move around because I am not working. It is difficult for some South Africans to get a job in their country, but more for us as foreigners. The law here in South Africa allows companies to give first preference to locals and later it may be given to foreigners. So to get employment is just like trying to match lotto numbers, very difficult.

One day when I was going to watch a match in Joubert Park where there is a big television screen for everybody to watch for free, it was Bafana Bafana playing against Iraq. Bafana Bafana is the name given to the South African football squad.

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Constitution Watch 4 : Presidential Powers in the “Kariba Draft Constitution” - Veritas

June 29th, 2009

Presidential Powers in the “Kariba Draft Constitution”

Background

On 30 September 2007 at Kariba, the Minister of Justice and the Secretaries-General of the two MDC formations agreed upon a draft Constitution to replace the present Constitution of Zimbabwe. The draft, which is known as the Kariba Draft, was the culmination of secret negotiations between the parties sponsored by the then President of South Africa, Mr Mbeki. The draft was never implemented but in Article 6 of the Inter-party Political Agreement [IPA], which deals with the constitution-making process, the parties “acknowledged” it and it was an annexure to the IPA.

MDC-T Minister of Constitutional and Parliamentary Affairs Eric Mr Matinenga has said that the Kariba Draft is one of several draft constitutions that will be made available for reference, but he also said “Nobody owns the Kariba Draft and it is where it belongs – Kariba”. At its extraordinary National Executive meeting on Tuesday, the MDC resolved “to reject any attempts to have the Kariba draft, one of many drafts available, adopted as the Alpha and Omega of the constitution-making process”.

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Diamonds in the Rough: Human Rights Abuses in the Marange Diamond Fields of Zimbabwe

June 26th, 2009

Cover - Diamonds in the Rough, HRW report

Human Rights Watch have released a report today into the abuse of human rights in the Marange Diamond Fields in Zimbabwe. It’s a damning report, highlighting the central involvement of the military in the diamond mines and accusing them of being involved in a litany of abuses, including forced child labour and the torture and abuse of villagers living in the area (who are also forced to work in the fields). The report’s summary (included in full below) also raises hard questions for the new power sharing government. It says:

While Zimbabwe’s new power-sharing government, formed in February 2009, now lobbies the world for development aid, millions of dollars in potential government revenue are being siphoned off through illegal diamond mining, smuggling of gemstones outside the country, and corruption. The new government could generate significant amounts of revenue from the diamonds, perhaps as much as US$200 million per month, if Marange and other mining centers were managed in a transparent and accountable manner. This revenue could fund a significant portion of the new government’s economic recovery program, which would benefit ordinary villagers like the residents of Marange.

You can download the report from the Human Rights Watch website here, or from where we have archived it on the Sokwanele website here.

Please use our e-card to spread the word about the abuses taking place. It’s a national disgrace.

Blood diamonds e-card - Zimbabwe

Report Summary

Zimbabwe’s armed forces, under the control of President Robert Mugabe’s Zimbabwe African National Union–Patriotic Front (ZANU-PF), are engaging in forced labor of children and adults and are torturing and beating local villagers on the diamond fields of Marange district. The military seized control of these diamond fields in eastern Zimbabwe after killing more than 200 people in Chiadzwa, a previously peaceful but impoverished part of Marange, in late October 2008. With the complicity of ZANU-PF, Marange has become a zone of lawlessness and impunity, a microcosm of the chaos and desperation that currently pervade Zimbabwe.

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Take part in the new constitution-making process

June 25th, 2009

Please make sure you are a part of the new constitution making process.

Provincial consultative meetings for input into the agenda of and selection of delegates to the First All-Stakeholders Conference are taking place around the country. 27th June at 10 am – in Bulawayo, Lupane, Gweru, Masvingo and Gwanda . Venues are being advertised in the press - The Chronicle listed the City Hall for Bulawayo’s venue.

Please spread the word to everyone.

Zimbabwe Business Watch : Week 26

June 25th, 2009

GDP growth for the year 2009 is predicted to be between 4 and 6 % which, given negative growth for preceding years, is a positive indicator of revival. Quite where this improvement will occur is unclear but the retail sector is performing well, and Services is likely to recover, both at the expense of manufacturing.

Many industries have now moved onto short working weeks and some larger enterprises work alternate weeks. Demand for goods is increasing but the financial squeeze continues to deny industry the chance to re-stock and re-finance. The wrangle over exorbitant utility bills continues further reducing the competitiveness of Zimbabwean business within the region.

Margins are slender within the prevailing forex driven market conditions. Previously the Zim Dollar provided the luxury of trading in conditions which allowed a lot of room for manoeuvre.

Business has raised concerns about the increase in fuel prices which do not correspond with world oil price rises. This is having a very negative effect on the ability of local companies to compete as such costs make up a considerable proportion of the value of the end product. Prices have risen from USD 0.65/l in February to USD 1.30 now and rumoured to go to USD 1.60 USD.

‘Mugabe and the White African’ wins award for World Feature at SILVERDOCS

June 24th, 2009

Mugabe and the White African - film poster

From the SILVERDOCS website:

This year’s SILVERDOCS Sterling Award for a World Feature goes to MUGABE AND THE WHITE AFRICAN directed by Lucy Bailey and Andrew Thompson, which explores, through the lens of a 74-year-old white farmer, Zimbabwe President Robert Mugabe’s deeply controversial land seizure program, which intended to re-distribute white-owned farmland. The director will receive $10,000 cash.

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MDC-T Parliamentary Seats Under Threat - Veritas

June 23rd, 2009

Extract from Veritas Bill Watch 21/2009 - An MP or Senator convicted of an offence and sentenced to six months or more imprisonment is immediately suspended from Parliament and will eventually lose his or her seat unless the sentence is reduced or set aside on appeal [Constitution, section 42]. Consequently, the seat of any legislator accused of a serious offence must be regarded as under threat. There are 6 MDC-T seats currently in this category:

Mathias Mlambo, MP for Chipinge East – sentenced to 10 months’ imprisonment for obstructing the course of justice. He has been granted bail pending the hearing of his appeal. His suspension as an MP continues despite his release on bail [Constitution, section 42].

Shuwa Mudiwa, MP for Mutare West – in prison awaiting sentencing on 27th June on a charge of kidnapping. His lawyers have already said the conviction will be challenged in the High Court, claiming the charge is unfounded and politically motivated. As the maximum sentence for kidnapping is imprisonment for life, so a sentence of more than 6 months is conceivable – which would mean suspension and, depending on the result of the appeal, possible loss of seat for Mr Mudiwa.

Meki Makuyana, MP for Chipinge South – on trial for kidnapping.

Blessing Chebundo, MP for Kwekwe Central – arrested on a charge of rape and on bail awaiting trial. [The maximum sentence for rape is imprisonment for life.]

Trevor Saruwaka, MP for Mutasa Central – facing political violence charges.

Senator Roy Bennett – due in court on 1st July on charges of possessing arms of war [which might also attract a heavy sentence in the event of a conviction].

Lynette Karenyi, MP for Chimanimani West’s case is slightly different – her right to the seat is being challenged in a High Court civil case by her March 2008 ZANU-PF opponent, on the basis of her conviction for involvement in the forgery of a nominator’s signature on her nomination paper [the sentence imposed was insufficient to trigger section 42 of the Constitution].

MDC activists’ case referred to Supreme Court

June 22nd, 2009

High Court Judge, Justice Tendai Uchena, today granted an application by four MDC activists to have their case referred to the Supreme Court where they will contest that their constitutional rights were violated when they were abducted by State security agents last year.

Concillia Chinanzvavana, the MDC Mashonaland West province Women Assembly chairperson, 72-year old Fidelis Chiramba, Zvimba South district chairperson, Violet Mupfuranhewe, district Women’s Assembly secretary and Collen Mutemagawu, district youth chairperson are facing trumped-up charges of banditry.

The trial of the four started on 6 June 2009 but the MDC lawyers filed a petition to refer the case to the Constitutional Court because the rights of the accused had been violated. The lawyers argued that before the accused’s trial proceeds, the Supreme Court must deal with their abduction and subsequent torture.

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‘Change’ is not enough: Zimbabweans want more

June 22nd, 2009

Zimbabweans are very good at voting: more Zimbabweans turn out to vote than citizens in  many other strong western democracies. Last elections, the message from the MDC-T over the last ten years has been very simple: Vote for change. The party’s rallying call is ‘Chinja!’ - Change!

Who could argue with this? The country’s despotic regime had driven us into extreme levels of unemployment and poverty and imposed hellish conditions on all of our lives where terror and fear  thrived. ‘Change’ - no matter what it was - was bound to be better than the misery we were all struggling to survive under.

So, as we all know, people turned out and voted overwhelmingly for change - year after year - until last year, when ‘change’ finally arrived. It perhaps wasn’t what we dreamed of or thought we’d get when we voted the Zanu PF party out of power, but the situation we have now in the form of the GNU is still different to what we had before: like it or not, it is a form of ‘change’.

But is it enough of a political promise fulfilled? Clearly not.

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