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


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.

Diasporisation is escalating exponentially, with our sample families reporting a one hundred fold increase in the rate at which family members are leaving, between 1990 and 2009. However, there is not proving to be a corresponding return in remittances for rural families in Matabeleland.

While 59% of Zimbabweans in the diaspora are under the age of 30, only 4% of these send goods or money home on a regular basis – three times a year or more. Goods and money sent home do not lift families out of desperate poverty. 76% of families with members in the diaspora received NO money at all in 2008, and many of the remaining 34% received less than R100 a month. Goods sent home could amount to as little as 2 kg of sugar. When asked to describe the impact of having family members abroad, only 20% spoke of remittances. Most people referred to death, disease, criminal habits, broken marriages and diaspora orphans.

Families have been driven to bartering in the almost total absence of foreign exchange and goods for sale in rural areas. This has been ruthlessly exploited by the unscrupulous and at the end of last year, people in some parts of Matabeleland had to barter cows for 50kg maize meal each. Urban families have also resorted to barter as poverty overwhelms them.

The prospects are bleak for Zimbabwe’s poorest citizens, and for the nation’s youth. The next few years are unlikely to see the massive growth nationally that is needed to create the jobs that could change this reality. What is more likely, is that Zimbabweans will continue to stream across the borders – to be confronted in turn with the hardship of life on the streets in South Africa. Zimbabwe’s poor are getting poorer, and the degree to which remittances from abroad can mitigate against this, has been overestimated when judged against the findings of this study.

12 Responses to ““Gone to Egoli”: Economic survival strategies in Matabeleland – a preliminary study”

  1. chitsidzo
    July 1st, 2009 14:50
    1

    I am tired of negative reports about Zimbabwe, cant you at least say something positive about the progress so far? You make me sick.

  2. Themba
    July 1st, 2009 16:02
    2

    Not true.Its going to take The UK two decades to recover from its economic wooes, that is a fact. As people who work in Zimbabwe this report is very baised, baseless and a complete waste of time. How long is it going to take for the UK economy to rcover, you dont know, but you know how long it will take Zimbabwe to recover. Experts at critising Zimbabwe, but just leave us alone. The US Economy is in a complete meltdown, but none of you are commenting, but you are quick to make crazy, racial analysis of negative reporting about our country. Zimbabwe will recover with or without Europe, because we know Europe’s agenda since 1980s, it hasn’t changed. The reversal of independence of Africa and undermining our intergrity. We are not stupid, ignorant, uninformed people. Please respect us, as its a two way thing. give and take, you are not God

  3. Themba Ndou
    July 1st, 2009 16:15
    3

    After reading your report. Its just wrong. 76% of 13 milion, is 9.88million people out of the country, which leave behind 3.12million people in the country.This is Zimbabwe and just look at what is happening :

    1)ECONET Wireless Zimbabwe has started receiving shipment of equipment worth US$200 million from Sweden and China which, when installed, will avert shortages of lines.
    The consignment comprising base station and core network equipment is expected to arrive in the country this weekend and will be fully installed by the end of this month.Econet, which uses two suppliers for its network in Zimbabwe after splitting its service area into northern and southern regions, is shipping from Ericsson of Sweden and ZTE of China.Econet chief executive Mr Douglas Mboweni confirmed the arrival of the equipment.”We have been waiting for the arrival of these shipments because as you know it takes quite some time for a company like Ericssons to manufacture this type of equipment once they receive an order.”This equipment will all go into the northern region of our network,” he said.Mr Mboweni described the shipment as only the first part of the shipments that are due in the next few months.”This equipment is less than 15 percent of what we have in the pipeline, because we are working towards taking the network to 5 million subscribers by the end of next year,” he said.Equipment for the southern region, which is supplied by ZTE has also begun to arrive along with Chinese construction contractors who are responsible for installation.The bulk of the US$94 million order from China is expected to arrive before the end of July, with installation taking up to the end of the year.Meanwhile, Mr Mboweni said efforts to clear the backlog of pre-paid lines were now at an advanced stage.Econet is currently selling more than 30 000 Buddie lines per week, while contract lines are available on demand.He said queues were gradually beginning to disappear outside Econet shops and that the black market had also collapsed.

    2)Minister Biti said he was hoping that the relationship between Zimbabwe and China transforms from one based on humanitarian assistance to one that is based on transformatic matrix.”I hope that two years from now we will be at a ceremony to cut the ribbon to open the Harare-Bulawayo or Harare-Beitbridge highway with your successor,” he said.Industry and Commerce Minister, Welshman Ncube said Government was committed to ensuring that capacity utilisation in industry increases to 60 percent by year-end as enunciated in the Short-term Emergency Recovery Programme.He said Government would continue to engage various stakeholders to try and address concerns of industry that are hindering growth in capacity utilisation.

    These are just two examples of what is happening on the ground in Zimbabwe, not what Europe thinks. In matter of fact, we are our own masters, not you.

  4. Tsitsi
    July 1st, 2009 16:31
    4

    June 15, 2009

    Who is groing the food then, since everyone is sick in the country as according to your report. Sad to say, sad and exciting times for us, as the hand and wishes of Europe have just become clearer to us.

    HARARE – Zimbabwe could emerge from its perennial food shortage after increasing three-fold its grain production this season, a United Nations agency claims in a new report.
    The UN Office for the Coordination of Humanitarian Affairs (OCHA) reported in a fresh report Friday that this year’s grain production had nearly tripled over the previous harvest, with an estimated 1.5 million metric tons of grain having been produced, compared with about 564,000 metric tons harvested in 2007-2008.“The increased yield will, however, not meet the country’s food requirements,” OCHA warned, noting that “a cereal shortfall of 670,000 metric tons will have to be imported”.(Negative again) Before there was nothing, instead of saying why there was a poor harvest previously, its ignored, because there is the story which mut be told, Mugabe took the Land from the White farmers.The UN report dovetails with another report by the US-funded Famine Early Warning System Network, (FEWSNet) which states that “food security in Zimbabwe is improving”.

    “However, 2008/09 harvests are unlikely to completely cover national cereal requirements,” the FEWSNet report states.

    During a recent tour of Harare and Parirenyatwa hospitals Mutambara heard that support from the Ministry of Finance had already made a significant difference to their operations.Harare hospital chief executive officer Jealous Nderere said with the recent injection of US$1 million from government the hospital has managed to make “a few but significant improvements”.Nderere said the Ministry of Finance promised the hospital US$2.4 million for its day-to-day operations and that the US$1 million it received was part of that money. He said the amount has allowed the hospital to buy a heavy duty laundry machine, complete renovations on two operating theatres, food supplies, repair some life-saving equipment and improve security and lighting at the hospital.Nderere said security was important because the hospital has lost a lot property through thefts and vandalism. The hospital also conducted pauper burials for at least 500 unclaimed bodies that were cramped in the hospital’s mortuary whose capacity is 80.Drug and surgical supply situation had improved to at least 80% although the supply of vital drugs remained low. Nderere said when the hospital reopened in February bed occupancy was 20% but said with improved service delivery it is now 50%.”Although there are many outstanding issues because many things had been left undone for years because of poor funding, we are very grateful for the support that government has given us,” Nderere said.At Parirenyatwa hospital, chief executive officer Thomas Zigora said the institution had been bailed out by the Ministry of Finance after the National Blood Transfusion Services cut off blood supplies to them over a US$241 000 debt.”We are quite happy that when we knocked on the door of the Ministry of Finance they were able to quickly respond to our need,” Zigora said. “We appreciate such a relationship where matters of life and death are concerned.”Zigora said although the drug supply situation had improved to at least 48%, through the National Pharmaceutical Company.
    Zigora said the hospital needed at least US$4.9 million to beef up its drug supplies, US$3.9 million to replace and repair equipment and at least US$220 000 for linen. Zigora said the issue of human resources for a specialist hospital like Parirenyatwa required address by the government urgently.”This government has the people at heart and we will do everything within our means to provide for the people of Zimbabwe. Without health there is no economy to even talk about because production comes from a healthy nation.”

    Last year in October state hospitals shut down after a work boycott by health workers seriously crippling operations and leaving many people stranded.

    Zimbabwe is a country on the move without the negative European opinions, which are calling for US$15billion to be given to the white farmers. Madness at its highest order.

  5. Sokwanele
    July 1st, 2009 16:43
    5

    Both reports blogged today were written by Solidarity Peace Trust, a highly respected organisation with a proven track record of producing factual credible information about the situation on the ground in Zimbabwe. These are not reports written by Sokwanele.

  6. alisdair budd
    July 1st, 2009 17:17
    6

    After ten years of denial by absolutely everybody in Africa, Zimbabwe is a “dressed up Somalia”. And people like the above are still in denial about how much of a mess it is and that now both the MDC and ZANU are just lying to get money out of everybody foreign to pay the youth militia to keep ZANU happy and then they might throw crumbs at the MDC in the form of cars to the MPS whilst the country starves.

    WHy did you think ZANU was trying so hard to prevent any journalists getting into the rural areas to find out the truth of what is going on and the actual situation?

    Zimbabwe no longer exists as a country, it is a small offshot of the Congo where ZANU warlords run their own private armies paid out of embezzled foreign aid and illegal mining operations.

  7. Statistics 101
    July 2nd, 2009 13:15
    7

    @Themba Ndou – Its 76% of the people in the diaspora you dimwit not 76% of the Zim population. If you can’t undrestand such basic statistics, don’t respond and make an idiot of youeself. I could not even continue after that!

  8. Ants
    July 2nd, 2009 13:50
    8

    “There are none so blind as those who will not see!”

    Zim may apparently be turning on paper, but only once it starts producing excess – be it food or goods – can it be said that it is really on the road to recovery.

    So, luckily we do not have to humour The Blind Denialists any further. The proof will be when the Diaspora start returning of their own volition. They have their families back home to tell them what the truth is, and my observation thus far is that the truth is still damn ugly. Whether the truth stings or not – it is still the truth.

    This is a solid comment from Moeletsi Mbeki – http://www.mg.co.za/article/2009-06-29-african-capitalists-parasites-not-creators

  9. Daniel
    July 6th, 2009 17:36
    9

    I suspect even in light of the billion-dollar loan from China that there’s little hope of growth. The current government will soak up the majority of it, leaving little for the people. There’s a reason they couldn’t get support from the west.

    As quoted at Newsy.com, “Western donors crucial for Zimbabwe’s recovery from a ten-year economic crisis have said that aid would only flow to the southern African country when political and economic reforms are implemented.”

  10. True Grit
    July 6th, 2009 23:11
    10

    What some appear to be saying is that Zimbabwe has been stripped bare by the European curse of plenty. I agree with Ants: When stumbling over the truth, the trick is not to just pick yourself up and hurry off as if nothing had happened, but to face it squarely. It is a great man indeed who can draw from the heart of suffering itself the means of inspiration and survival.

  11. Majanx
    July 8th, 2009 15:53
    11

    @chitsidzo
    Wat you mean when you say ‘cant peolpe say something positive bout Zim’?Dude,I suggest you take a good look around you.Can you not see the millions of peolpe who die every day jus cause they cant afford the basic facilities that ‘all’ humans are entiltiled to?Can you not see the violence and the abductions of peolpe who want nothing but change?You say people who notice and decide to talk bout these things make you sick right?Well ‘YOU’ my friend are an embarrassement to the human race and I really do hope that you get what you deserve!!!!!!

  12. Majanx
    July 8th, 2009 16:02
    12

    @alisdair budd -
    I totally agree with you Budd.It seems like these people are so used to poverty they are now completely blinded.Im African myself,Infact Im Zimbabwean and I dont understand why these peolpe cant jus open their eyes and accept the fact that Mugabe has to go and that people should come together and look for a way forward on how to improve the country’s situation. Zimbabwe is in MELTDOWN.The sooner these ignorant ranters accept this fact,the sooner the country is likely to be saved!

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