INTERVIEW: Tatira Zwinoira

The economy is imploding and mostly as a result of the Zimbabwe dollar losing value.

As the country approaches the New Year, NewsDay Business reporter, Tatira Zwinoira (ND) talks to the Reserve Bank of Zimbabwe governor John Mangudya (JM) about plans to stabilise the currency.

ND: A lot of businesses are optimistic about the first quarter of next year. What do you think of it?

JM: That is why we are trying to put our house in order so that the New Year will be a better year for everyone and that we will continue with the spirit of love and discipline so that the economy will move on that pace.

ND: In trying to examine what went wrong with the Zimbabwean dollar as it has failed to maintain its value, what are your thoughts pertaining the issue from the authorities’ side, as Reserve Bank?

JM: I am not sure how the Zimbabwe dollar failed to maintain its value. That question presupposes that the authorities had made a statement on where the Zimbabwe dollar should settle. Where are you coming from yourself?

When you say it’s not getting its value, it sounds as if someone had told you that the Zimbabwe dollar was supposed to settle at a certain level which is not true.

TZ: As the Reserve Bank, did you not have your own expectations?

JM: That is what I am saying that I do not rely on hear-say, which does not have evidence. For you to say it has failed, it means you already had your own objectives over the issue. It seems you had your own predetermined level that you thought the Zimbabwe dollar was supposed to settle.

The best way of saying it is as follows: The economy is in transition and that transition will liberalise under the TSP (Transitional Stabilisation Programme). We liberalised Zimbabwe’s exchange rate/prices and because we liberalised them, it means the exchange rate was supposed to find its level within the market because it is market-determined. In that market determination, our mandate, objective and key focus area was to make sure that the Zimbabwe dollar remains stable at a certain level where it would have to settle.

So the issue now is on how to make it settle where it is so that it would not pass through the effects of inflation. If you ask me whether we believe the exchange rate is now stable, we will say yes because over the past two months up to December, the exchange rate has been stable.

TZ: That’s quite true because I have seen on the interbank parallel market, the exchange rate is now relatively stable, but …

JM: The next question should be what are we going to do to ensure that the rate of the exchange remains where it is as it is relatively stable? So, there are two deliverables that we are going to work on, that is, to ensure that the reserve monetary target is maintained at levels that do not put pressure on the exchange rate and we are also ensuring that we will seek finance through the letters of cash that we are issuing out so that the demand for foreign currency would reduce on the interbank market by the use of debt instruments called letters of credit.

A letter of credit is a debt instrument which makes it easy to plan for cash flow in a manner that helps to reduce pressure on the exchange rate and, therefore, for bulk imports like fuel, maize and cooking oil. By so doing, we are looking for foreign currency through letters of credit to ensure that there is not too much money on the market by making sure that we target our reserve money growth.

In that way, it will pass through the benefits to the inflation so that prices are also stable.
So, our main job, going forward into 2020, is to maintain price stability through the exchange rate stability and to ensure that the public has confidence in the local currency. That has to simultaneously harness as much foreign currency as possible from the people in the diaspora and the exporters so that we improve on the efficiency and the utilisation of the foreign currency in Zimbabwe.

TZ: But governor, don’t you think you should be focusing on trying to get foreign currency reserves to stabilise the currency because, unlike in America, where they use just the confidence in the economy to stabilise their currency, there is no confidence in this economy. You have said it yourself so many times, so don’t you think where there is no confidence in the economy, something should be backing our economy other than the reserve money that you are targeting?

JM: We are saying the same language here. We are saying we are managing our local currency so that we do not put pressure on foreign currency exchange because people have got much money in the market because they increased the rate of the currency.

And we are also saying simultaneously, we are going to harness as much foreign currency as possible from the diasporas and the exports (by) giving them incentives so that the exporters continue to export.

Besides, the market will become competitive and at the same time, the people in the diaspora will bring in money. I am talking about an open market economy.

TZ: So how much foreign currency do you think as the central bank will be enough to sustain our local currency?

JM: Let me put it this way. Once the confidence levels are high and if there is discipline in the market and the love within the Zimbabweans which is the fundamental principle of life, with that, I can tell you that the economy will become so simple and grafted towards the growth in the new year.

I am hopeful that what the Zimbabweans have gone through over the year which has been difficult cannot continue under that context.

This economy requires about US$520 million on a monthly basis for us to be comfortable with our economy and its earning around US$490 million.

If you get more money from the exports and that from the diaspora and if we get more money from the letters of credit and money from the finance, we can bridge that gap of about US$30 million very easily.

Our foreign currency situation is very stable and fundamentals on the foreign side are not that bad.

TZ: As the Reserve Bank, how are you going to build confidence in the economy in 2020?

JM: We are going to focus on a number of things in the New Year. We want to lower to under 5% by year end the month-on-month inflation.

TZ: And with the exchange rate, what level are you targeting?

JM: We are expecting a stable exchange rate, but that one is very difficult to measure, but we expect it to be stable in view of what we are doing on the foreign exchange side to make sure that, as I said, we harness as much foreign currency from within, the diaspora and from the lines of credit.

Number two, under key focus areas, which we are working on as a bank, is to enhance financial sector responsibility to make sure people have got confidence in the financial services sector and that the money remains safe and sound.

The third one is to enhance the functioning of Zimbabwe’s financial markets in support of economic resilience and development.

The fourth, as I was saying, is to ensure they (Zimbabweans) have confidence in the local dollar, currency, and that the cash is disbursed in such a manner that we minimise the premiums that are being charged and that money is available when money is required because that instils confidence in the banking public that they will get their money as and when they need it.

TZ: How are you going to be spending your Christmas, if you don’t mind me asking?

JM: Right now, I am in the office trying to make sure that the economy can keep going forward.

My philosophy in business, Tatira. As you know, in whatever circumstance that you are going through, keep moving forward, whatever the circumstances. So, I want to urge Zimbabweans to know that while we went through difficulties in 2019, we need to keep moving.

ANALYSIS: Moses Matenga

“There are complex challenges in Zimbabwe … We know there are serious and seemingly intractable political factors that might need attention, in fact, that needs attention if solutions are to be effective or implementable. The political formations in Zimbabwe remain at loggerheads and have apparent deep antipathy toward each other which makes joint decision-making and planning extremely difficult,” said South Africa International Relations and Co-operation minister Naledi Pandor on November 18, 2019 at a symposium on the Best Path Towards a Prosperous Zimbabwe at the University of South Africa in Pretoria.

Pandor’s message came exactly two years after Emmerson Mnangagwa assumed power as President in November 2017 following a military coup that deposed long time ruler, the late Robert Mugabe.

Upon assuming power, Mnangagwa premised his message on rebuilding Zimbabwe, insisting on the need to “let bygones be bygones” and his swearing in was attended by Mugabe’s long-time nemesis, Morgan Tsvangirai (the late MDC leader), a clear sign that Mnangagwa meant well.

Two years down the line, all hope is slowly fading, and Mnangagwa is leading a deeply divided nation, plagued with economic challenges that observers insist, require a political solution.

Mugabe’s loyalists, better known as the G40 cabal, including former ministers, Saviour Kasukuwere, Jonathan Moyo, Patrick Zhuwao and Walter Mzembi, among others, remain exiled, fleeing possible persecution and prosecution at the hands of Mnangagwa.

Chamisa is on record describing Mnangagwa as having betrayed Tsvangirai after having earlier agreed to a “transitional mechanism” with him as part of the transition.

“Tsvangirai told me that ‘Chamisa, we are now going to help remove the poverty caused by Mugabe, but the assurance I have is that we are going to have a transitional authority’,” Chamisa was quoted as saying.

“I said to him, this was a good thing, but asked him if he was sure about the people he was dealing with and he said ‘let us give them time’. We gave them time and they betrayed my old man.”

According to a leaked intelligence report in early 2017, Mnangagwa and Tsvangirai allegedly engaged in secret talks to form an arrangement post-Mugabe, with Tsvangirai telling Reuters in June of that year that he would not rule out a coalition with political opponents, such as Mnangagwa, and wanted white farmers to come back into a “positive role”.

Tsvangirai supported the military intervention and Mnangagwa’s takeover, even rallying his supporters for the action at Parliament in the days Mugabe was about to be impeached.

Mnangagwa acted as if he meant well even by visiting an incapacitated Tsvangirai later on at his Highlands mansion, a sign that made many believe, the unifier was in town.

But alas, Mnangagwa pushed for polls and opted to go it alone, and it is that decision observers say which led to the prevailing socio-economic crisis that was to be born out of the unresolved July 2018 elections, and there is no hope for Zimbabwe as it stands.

In Chamisa’s words, had Mnangagwa not betrayed Tsvangirai and implemented the agreed transitional mechanism, the story would have been different.

Mnangagwa’s woes started after the July 31 harmonised elections, where the Zanu PF leader won, but his victory was challenged.

Moyo, a former government spin-doctor, claims Mnangagwa lost to Chamisa and evidence is supposedly contained in his book Excelgate, which was set to be launched last week before suspected Zanu PF supporters interrupted it, chasing out guests, including diplomats.

As Zimbabwe waited for results of the delayed presidential election results, soldiers shot and killed six people in Harare, injuring scores in the process after opposition supporters took to the streets protesting the delay.

A commission of inquiry into the killings led by former South African President Kgalema Monthlante called for unity among political actors and up to now, this and other recommendations are yet to be fulfilled.

Another huge dent on Mnangagwa’s administration was to come on January 14, hours after he sparked a fire that would lead to at least 17 deaths, more than 80 sustaining gunshot injuries, with more than 300 cases of torture at the hands of the police, the military and Central Intelligence Organisation operatives.

Mnangagwa made a surprise announcement of a 150% hike in fuel prices that led to violent protests across the country.

Shortly after making the announcement, Mnangagwa flew to Russia, but had to cut short the trip following the widely condemned attacks on civilians.

The January shootings were to be the beginning of a tough year for Zimbabweans, characterised by week-in, week-out price hikes of fuel, cash shortages, doctors’ and nurses’ strikes and hospital closures, among other challenges.

Over half the population is facing starvation caused by drought and a wobbly economy, with ordinary citizens evidently losing faith in the ruling party’s ability to resolve the crisis.

In its latest central committee report, Zanu PF stated that the economy remains a “latent security” threat, but blamed the United States, the MDC, some civic society organisations and even drought for its failure.

“The most latent security threat that has grave consequences is the unstable economy which is largely propelled by the thriving parallel market (black market),” the report by the party’s national security department read.

The report further stated that ordinary Zimbabweans have lost confidence in the direction the economy was going and were “angry”, while government also took to blaming natural disasters for the crisis.

“Formal trading prices are determined by the parallel market exchange rate which has been sharply rising on a daily basis. This has resulted in inflation also rising to unprecedented levels. Prices of all commodities and services have followed suit to unsustainable levels. Most people are failing to make ends meet, so are poverty levels that are rising very much throughout the country. As a result, anger is brewing among the citizens, while there is loss of confidence on the direction the economy is taking,” the Zanu PF central committee report said.

“Owing to the incessant price hikes of commodities, food security situation is exacerbated by the fact that there were poor harvests experienced due to the El-nino induced drought.”

Zanu PF lamented the high unemployment in the formal sector due to company closures, and raised fears that unemployed graduates can be used by detractors to work against the ruling party.

The Crisis in Zimbabwe Coalition blamed all this on the incumbent leadership that focuses on pettiness, giving the much-publicised divorce of Mnangagwa’s lieutenants, Vice-Presidents Constantino Chiwenga and Kembo Mohadi as examples

“The most unfortunate thing that we are lacking as a country is leadership,” Crisis in Zimbabwe Coalition spokesperson Marvellous Khumalo said.

“Instead of the national leadership to focus on addressing the economic challenges that we have, the social, political and other related challenges that are bedevilling the country at the moment, we are witnessing a host of the sideshows taking place. The arrest of Marry Chiwenga, all this is being done and is raking attention from the leadership and the country at large yet we have important things, bread and butter issues to attend to,” he said.

“It is sad.”

Chiwenga is embroiled in a nasty divorce with his wife of eight years, Marry, and so far, a lot has been exposed and the VP is likely to be kept busy at the courts in 2020, joining Mohadi who has had violent confrontations with his estranged wife, Tambudzani, including an incident whereby the Vice-President chased after her at their Beitbridge home, armed with an axe and threatening to kill her.

Chiwenga accuses his wife of wanting to kill him while he was hospitalised in South Africa.
Marry, who is also accused of fraud and money-laundering involving close to US$2 million, was remanded in custody to December 30, but has made a High Court application for bail.

This comes after a lengthy absence from the political scene by Chiwenga, who was receiving treatment in China following suspected poisoning.

In Mnangagwa’s short reign, the police and military have launched a massive crackdown across the country, which has also seen MDC supporters being violently dispersed during gatherings in what the opposition party describe as “an unofficial ban” of the party and closure of the democratic space.

Several people, most of them ordinary Zimbabweans, were injured, while others were arrested last month ahead of Chamisa’s Hope of the Nation Address that was quashed by the police.

Chamisa was to survive an incident in which he claimed to have had gunshots targeted at him last month during a tree planting event in Marondera, although the police claimed otherwise.

But in the entire crisis, Chamisa yesterday said he would push for change in 2020.

Recently, he was also quoted as saying something would happen to change the lives of ordinary Zimbabweans by May 2020.

“My biggest Christmas gift is the hope I see in 2020. Change will come, if it doesn’t come, we go and get it for the people,” Chamisa said.

His statement also comes as former South African President Thabo Mbeki jetted into Harare last week to meet almost all political actors who included Mnangagwa, Chamisa, Political Actors Dialogue (Polad) and also with the churches on a “listening exercise” to understand the challenges affecting Zimbabwe.

Mbeki has promised to come back for more talks before year end.

While Mbeki has brought renewed hope to suffering Zimbabweans, with Chamisa warming up to possible dialogue with his nemesis convened by a neutral interlocutor, Mnangagwa dashed the hope by insisting that there would be no talks outside Polad, a grouping the main opposition party has sworn never to join.

Political analyst Eldred Masunungure thinks it is too early to celebrate.

Mbeki was at the centre of talks between Mugabe and Tsvangirai that led to the Global Political Agreement of 2009 that saw Tsvangirai becoming Prime Minister in Mugabe’s government, an arrangement that led to some brief stability before it ended in 2013.

Meanwhile, Kasukuwere has thrown his hat into the opposition political ring, vowing to challenge Mnangagwa if he chooses to answer to calls by a movement dubbed “Tyson Wabantu” that is pushing for him to lead.

Said Kasukuwere of the situation in the country: “It is not hatred of each other that will take our country out of this challenge, but a need to collectively confront the elephant in the room.
The pain in our society is deep and sharp. Let’s accept our failings and correct our steps. It’s the economy and politics.”

By Kevin Mapasure

FOR two months, the normal angry sounds of mowers manicuring the Harare Sports Club cricket stadium’s green grass were not heard.

Even the usual tsk tsk tsk sounds of sprinklers spitting away to quench and nourish probably the most spoilt grass in the country had disappeared and was replaced by dead silence.

The common sight of men in work suits or overalls and wellies working away on that grass each day was not there anymore.

Instead, this customarily well-pampered surface was starting to look like a deserted mine stadium.

The grass that had never known thirst or lack was starting to show distress and frailty.

This situation at the Harare Sports Club between the months of July and August mirrored how the game in Zimbabwe was teetering towards its death as office bearers at Zimbabwe Cricket (ZC) and the Sports and Recreation Commission (SRC) board haggled over the control of the game in the country.

The first episode of the soap opera, which has turned out to be the major highlight of 2019, saw the SRC writing to ZC barring them from conducting their elective annual general meeting (AGM).

ZC defied the order and went ahead with their AGM where Tavengwa Mukuhlani won another term at the helm of the game in the country.

What followed that in summary was the near death of the game in the country after SRC suspended the ZC board on June 22 to replace them with an interim administration led by former managing director Vince Hogg.

ZC workers responded by staying away from work and some of the consequences included the non-processing of salaries from the month of June onwards.

The two months in question were characterised by a lot of fight through letters, in meetings in the mainstream media as well as on social media.

Meanwhile, the International Cricket Council watched with keen interest until June 19 at its board meeting when the world governing body suspended Zimbabwe.

The SRC had sought for the ICC to endorse its decision to suspend ZC, but instead Zimbabwe was suspended over allowing government interference.

As all this happened, the workers and players’ nostro account bank balances had started to hit all-time lows for some.

ZC players are some of the most pampered workers in Zimbabwe and have never known lack. Yet here, they were getting a glimpse into the world of poverty.

The ICC had given a deadline for Zimbabwe to put its house in order, otherwise the consequences would be dire.

With time running out, there was pressure on SRC and ZC to find common ground for the game to avoid the threat of extinction.

There was a threat of ZC losing its full membership altogether and with that missing out on the yearly inflow of millions of United States dollars.

Jobs would be lost, players’ careers were in jeopardy and something had to be done.

The Sports ministry got involved and meetings were convened until an agreement was reached between the warring parties for the SRC to lift ZC’s suspension ahead of the ICC board meeting in October.

By the time the ICC convened its meeting, the senior men’s national team had lost out on participating at the ICC T-20 World Cup qualifiers and, likewise, the women’s team.

Solomon Mire had seen enough and decided to walk away from international cricket. Several others including Sikandar Raza were threatening the same.

But in all this, the players were also divided, with some backing the SRC action, while the majority were against it.

The October meeting was crucial and Zimbabwe waited with bated breath to here the outcome and on October 14, the ICC announced that they had lifted ZC’s suspension.

The news thrilled cricket followers that things world get back to normal, yet for the players and workers at ZC, it didn’t necessarily mean the nostro accounts would start ticking again as they had to wait for a process that would take months until they finally got their six-month bonanza’s in December.

Stalwart Chingoka dies

The death of former ZC board chairman Peter Chingoka was one of the low points of the year, with the 65-year-old breathing his last on August 22.

Chingoka had been part of the administration from 1992 until 2014 when he stepped aside for then vice-president Wilson Manase to take over.

Chingoka received a grand send-off on the day he was buried, with current and former cricket players, coaches administrators, former national team footballers and coaches, among them Sunday Chidzambga, David Mandigora, former Harare mayor Muchadeyi Masunda as well as former government and serving ministers gracing his memorial mass at St George’s College in Harare as well as his burial.

Mukuhlani said that Chingoka had shaped Zimbabwe cricket for success.

“Him having been in the cricket circles for long, he took it upon himself to mentor me and many others,” Mukuhlani said.

“He lived half of his life in cricket administration. He cultured ZC in a way that we see it today. His belief was to see the game spread to all the corners of the country, which saw an increase in the number of provinces from five to the 10 that we have today. Of course, it brought about the increase in the number of black players participating and moreso black administrators.
He represented Zimbabwe well at international level from 1992 to 2014. Today, we have good relations with India and that foundation was laid by Peter.”

Hamilton’s flourishing farewell innings

Then Zimbabwe captain Hamilton Masakadza announced that he would retire from all forms of cricket in September. He was to play his last innings at a triangular series that featured hosts Bangladesh and Afghanistan from September 13 to 24.

Zimbabwe struggled in the series, with the hosts and Afghanistan making it to the finals as they started tuning up for the T-20 global showcase that will be staged in Australia this year.

But in fitting style, in Zimbabwe’s last match and Masakadza’s final innings, he batted his way to a half tone in thrilling fashion.

This was his day and he surely made it his own with a man of the match performance which saw him hit 71 runs off 42 balls, featuring four boundaries and five maximums, as Zimbabwe cantered to a seven-wicket win.

He received a lot of tributes from all over the world and back home as he finally hung his bat after playing 38 Tests scoring 2 223 runs (five centuries and eight half centuries), 201 one-day internationals (ODI) where he made

5 658 runs (five centuries and 34 half tons) as well as 66 T-20 Internationals with figures of 1 662 runs (11 half centuries).

“It was a special feeling going through that guard of honour that the guys put up for me. I just got a lot of emotions going, but obviously, in the end, I am happy that I have pretty much done what the team needed from me, to get them into a good position to challenge Afghanistan for the win. I am very satisfied today,” he said after his final innings.

“I started tearing a little bit in the morning, trying to get through the team talk with the boys. I am not someone who wears his heart on his sleeve, but I think this is the one thing that brought a few emotions out of me. Even when I tried to tell the guys and the team before I made the official announcement, I barely got through three sentences, so it’s been a really emotional time for me.”

After ending his career, there was always suspicion that this was not the end of the story and so it was proved, as he was to be appointed director of cricket on October 31.

Bruised and battered all year

The national team struggled on the international stage, losing series in Netherlands and Ireland as well as at the tri-series in Bangladesh.

Zimbabwe were whitewashed in an ODI series by hosts Netherlands before they also lost the T-20 series.

Another ODI series whitewash followed in Ireland before the drawn T-20 series.

Before that, they hosted United Arab Emirates at home and won all matches, raising further anguish at the way the team crashed out of contention for a place at this year’s World Cup finals after losing to the minnows last year.

The national women’s team won the first phase of their World T-20 qualifiers, beating Namibia in the final, but the journey towards a place at the finals was cut short by the boardroom squabbles that took up much of the time and space.

President Emmerson Mnangagwa (in scarf) during the weekend tour of his Sherwood Farm in Kwekwe, where he showed off his prowess to his Political Actors Dialogue members

BY EVERSON MUSHAVA/MOSES MATENGA

OPPOSITION MDC leader Nelson Chamisa yesterday took a swipe at President Emmerson Mnangagwa over a video that went viral on social media of him feeding his fish at his Kwekwe farm at the weekend, saying the Zanu PF leader had misplaced priorities at a time millions of Zimbabweans are in urgent need of food aid.

The United Nations estimates that 7,7 million citizens are in urgent need of food aid, while US$300 million is required to supply some 240 000 tonnes of handouts.

The MDC president said he was going into the Christmas holiday depressed knowing that millions of Zimbabweans will be without food, fuel, power and freedom.

“Any serious and credible leader’s core business is the well-being and interest of the people they lead. On that score, I walk into the Christmas holiday depressed, challenged and burdened because my thoughts, mind and conscience are with the people of Zimbabwe who are suffering. They are suffering because we have deprived them of happiness and merrymaking. They are without cash, without fuel, without electricity, without water and even without freedom,” Chamisa said.

He said it was a difficult period for Zimbabweans, and he hoped that “this will be a vivid reminder of the urgency of our situation, the extraordinary circumstances”.

“I wish I could have the luxury of feeding my fish at the farm with my friends, but I can’t. It is just impossible. We must feed the people not the fish,” Chamisa said, in apparent reference to a video that featured Mnangagwa, MDC leader Thokozani Khupe and other Political Actors’ Dialogue (Polad) platform leaders at Mnangagwa’s farm.

Mnangagwa met Polad members at his farm at the weekend.

Chamisa said he sympathised with the people of Zimbabwe who will miss the usual delicacies usually associated with the festive season.

“I sympathise with the people and feel with them, the definition of a sensitive leader. The way Zimbabwe is suffering, high school fees, dysfunctional hospitals; in other countries, people are busy having their best meals, their delicacies on Christmas and visiting best places. But in Zimbabwe, the situation is different. I was in Germany, I could feel the sense of Christmas, but that is not the situation in Zimbabwe. (A) sad indictment of those in leadership. Instead of dispensing love, they are dispensing agony and sorrow,” Chamisa added.

BY VENERANDA LANGA

PRESIDENT Emmerson Mnangagwa was on Friday last week grilled over corruption at schools and the sending away of school children who fail to pay fees, as well as withholding of their results.

This happened at the anti-corruption event organised by the African Parliamentarians Network against Corruption (APNAC), in conjunction with Zacc and the Transparency International Zimbabwe to commemorate the Anti-Corruption Day symposium last Friday.

The issue was raised by the Speaker of the Junior Parliament, Christopher Mutasa, who said there is corruption in the country’s education sector.

“After the Grade 7 results came out, most parents were unable to get places at schools because of high fees, and those who had not fully paid fees for the previous term were denied results,” he said.

“However, there is an education policy in this country that if a child cannot afford to pay fees, they must not be sent away from school and schools cannot withhold results from them, but all these policies are not being implemented.”

The Speaker of the Child Parliament said, as youths, they feel such policy inconsistences must be resolved because they were the leaders of tomorrow and education was important for their
generation.

“We need to revisit these policies because it seems we just have them on paper and there is lack of implementation,” he said.

Harare Residents Trust director Precious Shumba also told the President that another form of corruption which was affecting children was failure to access birth certificates, whereby some guardians are asked to pay bribes in order to get the documents.

“It means that children from marginalised families cannot get identity documents,” Shumba said.
In his response, Mnangagwa maintained that Zimbabwe still had the best education despite the problems experienced by parents and school
children.

He endorsed the fees policy, saying parents must pay fees for their school children, but acknowledged that the socio-economic environment prevailing in the country was to blame for parents’ failure to meet their obligations.

“You have to pay fees, but the concerns that you have raised are that children are being denied certificates because they failed to pay school fees. We have policies and the challenge is that government must find ways to assist those that are unable to comply with these fees policies,” Mnangagwa said.

“The policy is correct, but it is the socio-economic environment which is making families unable to pay fees. However, government has come up with policies such as the Basic Education Assistance Module (BEAM) as part of the safety nets to assist disadvantaged children. We have supported more than 3 million kids through BEAM and this year we increased the BEAM budget to support poor kids.”

He said if there are policies that are not implemented by the government bureaucrats, then Zimbabweans were free to report the issues to him.

“I am a listening President and if you feel that certain policies are not being implemented, then you must inform me. The weaknesses of government may be as a result of ministers that are not doing their job. We are supposed to serve our people,” the President said.

Mnangagwa said if government was not effective, then there was a risk of being voted out, adding that he was still interested in ruling.

“We are supposed to service our people. Who wants to be voted out? I want to make sure that we do things well so that we continue ruling,” he said.

BY EVERSON MUSHAVA

ZANU PF yesterday wished all Zimbabweans a merry Christmas and prosperous New Year, urging motorists to respect the sanctity of life and drive carefully during the festive holidays.

Simon Khaya Moyo, the spokesperson of the ruling party, said Zimbabwe was one family and people should learn to be merry together.

“We wish all the people a merry Christmas and a prosperous New Year, and I am saying all Zimbabweans. This is not about Zanu PF, but the nation. Let it be a central message to everybody that we say to all, have a merry Christmas,” Moyo said.

“People must love each other. They must respect each other. They must merry together as a Zimbabwe family and avoid mixing personal issues with the greater good of what Christmas means to everybody.”

Zimbabwe is experiencing its worst economic crisis in a decade characterised by diminished buying power due to hyperinflation, collapsing health care and education systems, shortages of critical commodities such as fuel, electricity and maize meal, among others.

Most people have blamed President Emmerson Mnangagwa’s ruling party for the economic crisis that has denied them merry-making this festive season.

Many have failed to travel to various destinations for Christmas after failing to access cash.

The prohibitive fuel and transport costs also stood in the way of Zimbabweans, who usually spend the festive season at their rural homes.

“Motorists should be very careful and avoid drinking and driving. We don’t want to lose lives at all. Drivers must be mindful that they are not carrying firewood, they are carrying people. The sanctity of life must be respected,” Khaya Moyo added.

Regarding the cash crisis that has resulted in long queues at banks, Khaya Moyo said he had hoped that the people responsible for monies, the financial institutions, Finance ministry and the Reserve Bank of Zimbabwe would work on some measures to address these challenges.

“The issue of money is not a party matter; it affects everybody, irrespective of the party one belongs to. It is a national matter,” the former Energy minister said.

But leader of opposition Transform Zimbabwe, Jacob Ngarivhume, said Christmas has lost its lustre due to poor governance by Zanu PF.

“The traditional jostling and bustling festive atmosphere has been stolen from most Zimbabweans. Many have failed to travel to see relatives and friends during this Christmas period due to a myriad of reasons such as lack of fuel, lack of money to spare and lack of cash at the banks,” Ngarivhume said.

“Traditionally, the Christmas period has been associated with receiving, giving and sharing among relatives, friends, church mates and workmates, a period of thanksgivings. This has all been stolen by government austerity measures which have driven everyone, except the well-connected, into abject poverty! The Zimbabwean spirit of Christmas has been lost in this maze of socio-economic challenges.

“The year has been very brutal as the government austerity measures took their toll on many people. Salary increments have not caught up with price increases of commodities. The economy remained in the informal sector with most service providers completely ignoring the government’s call to outlaw the use of foreign currency for local trading.

“Nothing else, but the grace of God has brought us to the end of 2019 as a nation. Each passing day came with a new heavy load upon our shoulders.”

MERRY CHRISTMAS … No Christmas break for vendors, whose business peaks during the festive season, as this vendor tries to sell a Christmas tree to motorists in central Harare yesterday

BY MOSES MATENGA/HARRIET CHIKANDIWA/RUTENDO MATANHIKE

CHAOTIC scenes characterised Christmas Eve as thousands of people jostled to get cash from their banks to finance their travelling, food and other necessities, but were left disappointed.

A survey by NewsDay in Harare, Bulawayo and other cities witnessed the rush for cash, which however, was in short supply, making it one of the worst ever festive holidays in independent Zimbabwe.

While government ministers and officials took time to rest either at their farms or on holiday in foreign lands, long queues at the banks characterised the Christmas Eve, with many saying they were failing to travel to their home areas because they had no cash, while shopping in a hyper-inflationary environment was proving to be
difficult.

Motorists were queuing for fuel, which is in short supply across the country, while some workers had to endure the festive holidays without salaries.

Those who spoke to NewsDay said there was nothing to celebrate this Christmas because of the crises.

“We cannot say there is a festive season this Christmas because I cannot afford to buy anything. I am even struggling to buy basic commodities. Prices have been rising drastically and my salary is not tallying with the prices. I also have to be preparing and saving for school fees for my children, therefore, I am only buying few things and focusing on 2020 basic needs,” Nomsa Mapara, from Harare, said.

Spiwe Chuma, a vendor, also said she could not tell if it was Christmas or not because she was just trying to make ends meet.

“Hatina chatinacho (we have nothing). Things are not adding up. I’m only a vendor and there is no profit,” she said.

Small business and boutique operators said the festive season had been a let-down and were facing huge losses.

“Compared to last year, this year’s sales are low. Last year around the same time, we could not be entertaining anyone because this place would be packed with last-minute customers. Business is generally low and we are not expecting to make much profit. After today, we are not looking forward to making any profit,” Joachim Tamburai said.

The Zimbabwe Congress of Trade Unions confirmed that a number of workers were going for Christmas empty-handed after their employers failed to pay salaries.

Most parts of Harare were without water and electricity ahead of the holiday, killing the celebratory mood.

Harare’s ward 16 councillor, Denford Ngadziore, fumed at council management for failing to plan ahead of the festive season, a situation that has led to Harare’s taps running dry.

“Failure to have water in most suburbs in Harare during the festive season is a clear testimony of failure to plan by the council management. Heads must roll. Someone should be answerable and accountable,” he fumed.

“When we closed last week at the last full council meeting, we were promised that all was well, both workers’ salaries and the water situation. This is pure negligence and incompetence and what is surprising is there is no official statement explaining the situation to residents.”

Despite all the pessimism and lamentations, President Emmerson Mnangagwa yesterday claimed he was fully aware of the people’s suffering.

“I know that many of you still suffer. I am not blind to your situation, nor am I deaf to your cries. I commit to you that we will continue to reform with an eye on the long term; for we must not reform only for ourselves, but for our children and our children’s children,” he said in his Christmas message.

“We are undertaking deep, broad and meaningful reforms. We have put the economic fundamentals in place. We have balanced the budget. We are engaging the world. We are continuing to open up the political and media spaces. We are clamping down on corruption. And we are building a new Zimbabwe (in which) the people come first.”

Mnangagwa urged Zimbabweans to “look forward not backward, inwards not outwards”.

“Let us focus on how best we can look after our families, our communities and our nation. How we can make Zimbabwe a better place for all,”he said.

“I wish you all a peaceful and merry Christmas. God bless you all and God bless the nation of Zimbabwe.”

BY MISHMA CHAKANYUKA

Business leaders have warned government to desist from excessive money printing, as it is negatively affecting real growth.

Inflation happens if the money supply grows faster than economic output because there would be a lot more money chasing fewer goods, which leads to price hikes.

“For a prosperous and successful 2020, CEO Africa Roundtable, therefore, calls upon the government to desist from excessive money printing, which is negatively affecting the real sector through influencing interest rates,” CEO Africa Round table chairman Oswell Binha said in a statement.

“Too much money printing has far greater consequences for the preservation of currency than any other variables in the universe. Therefore, the most important policy measure to give the currency a fighting chance is firm determination to control money supply growth.”

Government reintroduced the local currency in June and declared it the sole legal tender, but has seen its value plummet on the interbank market and the parallel market due to lack of support in the form of foreign currency reserves and market confidence.

As of yesterday, the rate stood at US$1:$17,14 on the formal market and US$1:$22 on the informal one.

Government has said it would convert excess electronic money into hard cash, but Binha advised that the central bank should ensure that annual money supply growth was below 10%.

“In doing so, the government has the obligation to consult key stakeholders before it introduces key policy changes,” he added.

Binha said there was urgent need for an efficient interbank foreign exchange market, which will channel resources into the formal market and moderate the pressure for parallel market drift.

“The parallel market has surfaced and has continued on an upward drift, driven by fears, expectations, rumours and money growth. This will continue to feed through to inflation.

Therefore, there has to be one price for foreign currency, a uniform exchange rate that applies for all foreign currency transactions in Zimbabwe,” he said.

Binha also called on government to allow businesses to retain 100% of their foreign currency to enable them to preserve value and guarantee current and future planning of business survival.

Currently, manufacturers are allowed 80% retention on foreign currency from exports, gold producers (55%); all other minerals (100%); tobacco and cotton merchants for input schemes (80%); agriculture and horticulture (80%); and transport and other services (80%).

“While the monetary authorities have committed to avail 50% of the foreign currency retention to the interbank market … I am unequivocally calling for immediate lifting of surrender requirements,” Binha said.

The consumptive nature of the economy requires most businesses to have foreign currency to import mostly raw materials to produce goods.

The CEO Africa Round Table is a platform for corporate chief executive officers and senior executives, in both the private and public sectors, created to engender critical economic and business knowledge in and around Africa.

BY TATIRA ZWINOIRA

THE Rainbow Tourism Group (RTG) has chosen to forego US$12 million in potential revenue at its flagship Rainbow Tower Hotel in Harare to allow for refurbishments.

RTG closed its bookings and hotel rooms from December 18, 2019 to January 31, 2020 to complete a refurbishment of the hotel’s rooms at a cost of US$3 million to bring it to international business standards.

“We are traditionally in our low season. From mid-December to even end of January to mid-February, city hotel occupancies come down. It picks up in resorts, but obviously, it’s for a couple of days such as Christmas and all that,” RTG operations director Tichaona Hwingwiri told journalists during a media tour on Tuesday.

“So we took advantage of that low season to say why not close in and commit to giving the contractors space. On an average, this hotel makes about US$14 million a month in terms of RTGS value, so I would say, on average, we are foregoing about US$12 million for the refurbishment period.”

This comes as part of a wider strategy to refurbish other properties under the RTG group ahead of the new year, as it seeks to boost its occupancies.

However, during this period, the hospitality group expects to leave its restaurants and conference halls open.

Currently, hotels are dealing with low occupancy rates as a result of shrinking disposable incomes resulting in hospitality firms seeking to upgrade their establishment to boost bookings.

“Next year, we will be able to finish Kadoma (Rainbow Hotel) and we will also start on the New Ambassador Hotel (Harare). Again, it will be in phases, whereby we will not necessarily need to close the hotel down, at least the other hotels that we are looking at,” RTG spokesperson Pride Khumbula said.

“You will be aware that in the first quarter of the year, we did the plumbing of Bulawayo Rainbow Hotel, which was done from January to February. And more recently, it was Victoria Rainbow Hotel … Obviously, what is critical is to minimise any inconvenience to our guests so we will try to be very strategic in terms of the placing of when we actually do the refurbishments.”

Guest Column: Paidamoyo Muzulu

Santa Claus the mythical Northern Hemisphere man who brings presents at Christmas is now world famous. Every year, each Christmas, the young and the old look forward to the exchange of gifts, but for Zimbabweans — Santa has forgotten the forsaken land. In my travels, I saw desolation, blank stares and empty begging bowls. A few diaporans made a cheap imitation of the merry festivities; a braai here, some dancing there, but generally the spirit was long gone.

The year that began with the shock deployment of the military to quel civil unrest comes to an end with people bereft of hope, their souls crashed.

We saw the price of bread spiral, the cost of meat and mealie-meal skyrocket. Fuel became scarce, and even service stations selling the commodity in forex have intermittent supplies, causing many to draw and redraw their festive season plans.

The rolling power cuts have not ceased and potable water is still not available to most urban residents. They now survive by drawing the special commodity from some backyard wells. Many look up to the unyielding skies, hoping the storm clouds would gather, but the scorching heat is withering their hopes and heightening their trepidation about the future.

Somewhere, the First Lady Auxillia Mnangagwa gave the aged and less fortunate some temporary respite by cleaning the houses of a luck few and giving them a decent lunch cooked over open fires. They danced and ululated, but today, Christmas Day, they are as desperate as they were before the hour the First Lady came.

It touched the hearts of many who read the State-controlled newsoapers and watch Zbctv. She got the best optics, endeared herself to the masses and bagged some 2023 votes for her husband, President Emmerson Mnangagwa. The crude joke was missed by many that Zimbabwe has been reduced to a country of two tenses — the past and the future. Zimbabwe no longer has a present tense. It is just one big void no leader is willing to fill. In short, no leadership for today exists.

Yesterday, State media led with Mnangagwa going through the motions of Santa Claus in his home town of Kwekwe. He visited the vending sites and the main bus termini. One lucky lady sold the President some groundnuts, maize and matohwe.

We hear Mnangagwa was told about the hardships citizens are going through. Just like the people — and probably in the sense of Chinua Achebe’s Man of the People — Mnangagwa used crispy Zimdollar notes to pay for the goods.

And for good measure he received some change. I wonder what the change was, considering the lowest note is $2 and the highest is $5. If he got 50cent coins I wonder where he would use them next, seeing the market has since demonitised coins.

For Kwekwe, their most eminent son had returned triumphantly — riding his highend motorcade, sirens and armed soldiers in tow. He saw and heard their problems, smiled with understanding and empathetic face, but the most he could do was promised to look into their issues — no immediate (now) solution.

It goes without saying that a week from now it would be New Year, a year that starts with Mnangagwa on his annual leave and citizens scratching their heads about how to pay schoolfees, commute to work if they are luck to have a job. These are people with incomes Finance minister Mthuli Ncube says are too low to be taxed Paye. However, they are not too poor to be spared paying 2% mobile money transactions and 14% Vat for their daily purchases.

Santa, Mnangagwa, came to Kwekwe, but forgot the goodies — for now the people have to survive on hope for a good future just like all other citizens across the country.

Maybe 2020 will restore the elusive present tense into our collective lexicon — yesterday and tomorrow are short of making us complete citizens like other nations. Hoo-Hooo Merry Christmas.

Paidamoyo Muzulu is a journalist and writes here in his personal capacity. He can be contacted on muzulu.p@gmail.com