A LOCAL economist Prosper Chitambara has described Finance minister Mthuli Ncube as a scholar, who is not fit to be Finance minister, because he has an academic and theoretical approach to financial and economic matters.
Chitambara made the remarks in Mutare on Monday while addressing the Labour and Economic Development Research Institute of Zimbabwe-organised media workshop.
“I think our Finance minister Mthuli Ncube is a scholar. I believe when he came in as the Finance minister he believed that he knew everything and that was wrong. He has not done well as the Finance minister of this country,” Chitambara said.
“At the same time, it is also difficult to judge him because he might be running someone’s vision. If President Emmerson Mngangagwa said no to a policy, what would he say?” he pondered. When Ncube was appointed to head the Finance ministry in 2018, he promised to turn around the country’s economic fortunes, but has not succeeded.
Chitambara also said the country needs at least US$12 billion for infrastructure development.“The government needs to scale up infrastructure development in the country, mainly targeting rural areas and we will be focusing on agriculture, building roads, irrigation and energy, which is key to any development in the country,” he said.
“We need about US$12 billion to develop our infrastructure into the modern era, but we have a lot of political divisions, we have not yet reached political maturity; leadership should not be feared,” he said
“Development should not divide us, but should unite us. Our resources have not benefited us Zimbabweans.”
Zimbabwe is losing billions of dollars to corruption and has been ranked 160 out of 180 countries in the 2018 Transparency International Corruption Perceptions Index.
FC PLATINUM interim coach Lizwe Sweswe is bracing for a tough Castle Lager Premier Soccer League match against Ngezi Platinum Stars, in which they are eyeing nothing short of a win as they pursue their third league title.
The Zvishavane-based miners sit third on the log table with 46 points, though having the same number of points with second-placed Chicken Inn.Caps United occupy top position, enjoying a four-point cushion with 50 points.
As they play catch up, FC Platinum know that they cannot afford to drop points at this stage with just six rounds of matches left.Their title rivals Caps and Chicken Inn will battle it out with Herentals and Harare City, respectively.
Caps and Chicken Inn’s opponents are also hard-pressed to collect maximum points as they look to avoid dropping to the second-tier league.For Sweswe, today’s match is another test for his pedigree.
The former Tsholotsho mentor told NewsDay Sport yesterday that he is anticipating a tough match against Ngezi Platinum, although he remained positive that his charges will prevail.
“This is a must-win match for us. It is not good to keep dropping points at this stage. If we still want to retain the championship, this match is very important for us, though we have to admit that it will be a tough task,” he said.
Hyperinflation is making an unwanted return to Zimbabwe. We don’t know how bad it is because the government has suspended publishing official figures until 2020. But an IMF mission to the country in August put the rate at close to 300% annually. More recent market estimates based on local currency depreciation imply rates as high as 400%.
This, sadly, is not new to Zimbabwe. Between 2007 and 2009, the country experienced one of the world’s worst cases of currency collapse, with inflation rates as high as 90 sextillion percent year-on-year in November 2008.
But there is an important distinction between now and then. This time hyperinflation is hitting an almost fully digitised monetary economy due to the proliferation of mobile payments in the country. EcoCash, Zimbabwe’s equivalent of Kenya’s better-known M-Pesa system, counts as much as 90% of the adult population as customers. It is an open question whether that scale of digitisation will act as a brake or an accelerant on inflationary forces. But so far it is not looking very beneficial.
Last time, the hyperinflation crisis was eventually tempered by an official transition to a multicurrency framework. This amounted to an informal dollarisation of the economy. By 2016, however, a serious lack of foreign currency in circulation began to threaten the system’s stability. EcoCash, by facilitating demonetisation, may have heightened those pressures.
As it was growing in popularity and serving the unbanked, EcoCash’s nationwide network of agents sucked dollars out of the hands of the population, turning them into digital balances. This amounted to the transfer of foreign cash stock from citizens to the banking system, with the money ending up in the control of the central bank. That is all fine if you trust the core banking system. Not so much if you do not.
The government has also encouraged the demonetisation by paying salaries in EcoCash. As the dearth of dollars intensified over the course of 2016, officials began to experiment with local alternatives to ease pecuniary pressures. The first step was electronic Zim dollars, known as zollars, backed by theoretical US dollar credits on a one-to-one basis. The so-called bond note and bond coin followed. But nobody really trusted the credits were actually there, putting pressure on the dollar peg.
By 2019, the illusion of a peg was long gone. So the government took more drastic action, creating a quasi currency called the RTGS dollar and declaring it official local tender. It also banned the use of foreign currencies except for special-use accounts. All government salaries and official contracts were redenominated immediately.
The exchange rate at that point was set at 8:1 to the US dollar. But the demand for paper US dollars never went away, encouraging a free-market exchange rate that has since reached as much as 21:1 to the US dollar.
And here EcoCash played another destabilising role. As demand for US dollars rose, citizens figured out they could offer EcoCash agents premiums and additional commissions in exchange for hard cash. Outages and glitches became more common.
In September, the government moved to prevent “illegal activities abusing the cash-in, cash-out and cash-back facilities” and the “buying and selling of cash through mobile money agents at high rates above approved charges”. It officially suspended all of EcoCash’s cash-in and cash-out activities. But the move was hugely unpopular, leading the government to reinstate a limited cash-out option with a $100 per transaction cap earlier this month.
Since then, EcoCash’s social media accounts have been inundated with reports of failed transactions and delays. That implies something critical. Mobile money may be a highfalutin fintech innovation, but it’s just as prone to Gresham’s law — bad money drives out good — as the old-fashioned sort. – ft.com
HIGH Court judge Justice Edith Mushore has ruled in favour of the once exiled businessman James Makamba in a long-drawn Telecel Zimbabwe (Pvt) Ltd share ownership battle with a war veterans organisation, Magamba eChimurenga Housing Trust.
In the initial application, Magamba eChimurenga Housing Trust, was claiming 24% shareholding in Empowerment Corporation (Private) Limited, the indigenous group that owns shares in Telecel Zimbabwe.
However, in an order granted on October 18, Justice Mushore dismissed the trust’s application with costs.“Whereupon, after reading documents filed of record and hearing counsel, it is ordered that; the application be and is hereby dismissed with costs on an attorney client scale,” she ruled.
Makamba and his firm, Kestrel Corporation (Private) Limited, Empowerment Corporation (Private) Limited, Jane Mutasa, Indigenous Business Women’s Organisation, Selpon Investments (Private) Limited, Carlton Consultancy (Private) Limited, Harare lawyer Gerald Mlotshwa, Telecel and former Information Communication Technology and Cyber Security minister Supa Mandiwanzira were cited as respondents in the matter.
In its founding affidavit, the trust said the government fostered a thrust to empower its citizens through an indigenisation economic policy and the move allowed indigenous groups and entities to take part in the creation of a third cellular network, which resulted in the formation of Telecel.
“Thus, several indigenous groups and individuals, responded to the government clarion call and empowerment drive for the upliftment of the indigenous businesses in the telecommunications industry,” the trust said in its court papers. It added that the companies that formed part of the business included Kestrel Corporation (Pvt) Ltd, the Zimbabwe National Liberation War Veterans Association led by the late Chenjerai Hunzvi, Indigenous Business Women’s Organisation, Leo Mugabe’s Integrated Engineering Group and Philip Chiyangwa’s Affirmative Action Group, among other entities.
The Andrew Ndlovu-led Magamba eChimurenga had further submitted that the indigenous groups responded to the government quest for indigenisation of the economy in 1997 and that these acted as promoters for the birth of the Empowerment Corporation (Pvt) Ltd, an assertion dismissed by the court.
JOHANNESBURG — Faith “Queen Twerk” Nketsi’s new reality television show, Have Faith, is collecting the star more fans than she has ever had before.
The star’s new reality show made its debut on Monday night and gave fans an inside look into her life and what she is all about.
Although she is surrounded by numerous controversies, Faith aimed to show fans just how easy she is on the eye, especially with that figure to die for!
Just two weeks ago, the Instagram influencer and businesswoman teased fans with the trailer for the series and caused all sorts of confusion on the socials. But fans started to see Faith in a different light after Monday night’s episode.The haters were soon congratulating the 24-year-old hottie on her achievements.
Feeling quite chuffed, Faith shared on Instagram that she was proud to be the first woman to have a reality show on MTV Africa, which airs in 43 countries.
“As the first female to have a reality show on MTV Africa airing in 43 countries. I’m done, I can’t, it’s 25 minutes to go till it airs on MTV Africa,” she said in an emotional post. Over on Twitter, the TLs were packed with reaction to the first episode of the show. — TimesLIVE
GOVERNMENT has been urged to renegotiate the social contract with its citizens after it failed to reinvest collected taxes into human development initiatives.
Zimbabwe Coalition on Debt and Development (Zimcodd) revealed that failure by government to rebuild social contract would result in tax non-compliance.
“The issue of the social contract that exist between government as duty bearers and citizens as rights holders is of utmost importance when talking about tax justice issues. When citizens pay tax, they literally expect the government to reinvest that revenue in financing human development initiatives,” the organisation said.
“When the social contract disintegrates, citizens lose trust in the duty bearers and lack of trust and confidence undermines tax compliance much needed in effective taxation. Despite the huge sums of money collected through taxes, the abrogation of citizens’ social and economic rights in Zimbabwe is regrettable and there is need for the government of Zimbabwe to renegotiate the social contract,” Zimcodd said.
The lobby group said there was a strong correlation between sound and transparent public finance management and the enjoyment of basic social services by citizens. “For example, if government uses the 2% tax revenue to invest in healthcare, housing, water and sanitation as well as improving infrastructure, citizens will be more than willing to religiously pay their taxes,” it said.
“Education which is a basic right guaranteed in section 75 of the Constitution, from a tax justice perspective should be free from early childhood development (ECD) to tertiary level, because taxes should be reinvested in funding these critical social service sectors.”
Zimcodd said revenue collected from taxes must be channelled towards national development.Pension funds, for example, that the State collects through worker contributions throughout a certain working period must be invested in strategic sectors of the economy so that when workers reach retirement age, they won’t struggle to lead normal and sustainable lives.
“However, in Zimbabwe normal and sustainable lives for pensioners have remained a pipe dream, as their lifetime contributions were eroded due to the obtaining fiscal regime. This is a glaring tax injustice on the side of an ordinary citizen,” it said.
As the economic crises continue to deepen, Zimcodd said it was critical for young people to be capacitated in order for them to hold the government accountable in the use of public resources and revenue collected through tax.
“This is important because the misuse and abuse of these public funds is largely felt by the youth who constitute over 60% of the population,” the organisation said. “Nevertheless, given the technical nature of taxation there is need to capacitate youths for them to engage meaningfully in knowledge-based advocacy and activism towards a progressive, fair and just taxation system,” Zimcodd said.
Consumers are angry over the Zimbabwe Electricity Supply Authority billing, amid fears that the power utility is charging more than what is being used on the prepaid meter system.
Since the Zimbabwe Electricity Transmission and Distribution Company (ZETDC) hiked electricity tariffs by 320%, the commodity’s lifespan has shortened, consumers say.
Despite the increase, Zimbabwe is already enduring long hours of electricity shortages — up to 18 hours a day, crippling households and industrial operations.
According to consumers, the power duration has reduced and the electricity is switched off unexpectedly compared to the period before the price hikes.
Consumer Council of Zimbabwe (CCZ) chairperson, Philip Bvumbe confirmed that the electricity lifespan has been reduced and it has become a burden on the cash-strapped citizens to buy electricity or use other alternatives.
“For an ordinary citizen to buy electricity or use other alternatives for electricity, it has become very expensive. Come to think of it, a bag of charcoal is costing about $70, to use a generator, fuel is going for $16 per litre, gas is going for $23 per kg and this is very expensive considering the cost of food and other basic commodities,” said Bvumbe
“Assuming 200 units cost $156,43 plus the 6% rural electrification tax, it can amount to $166,42. Zesa has now given a household an electricity lifeline of 50 units, but it won’t last.
The ordinary citizen will find it very difficult to afford such as the electricity is no longer lasting,” he added.
Bvumbe said the consumer basket has downgraded further as consumers can no longer afford to buy electricity.
“In our situation, the consumer basket combining electricity and water is no longer working as there is no water in locations. In the high-density areas a bucket of water is going for $2 and in the low-density that large tank is going for $720. This adds more pressure on the consumer. The consumer basket has downgraded because they cannot afford these commodities,” he said.
He said CCZ was yet to discuss and find solutions to this problem.
“We are going to meet with our stakeholders and discuss if we are going to make two baskets, one for the low income and the other for the middle income,” Bvumbe said.
While the power utility has been deducting a certain percentage of the debt from the amount charged on the prepaid meters, consumers feel Zesa is charging more than the gazetted rate.
Zesa spokesperson Fullard Gwasira was not available for comment yesterday.
ZETDC said they had intensified their revenue collection, whose proceeds will be used to pay for imported electricity, local coal generation and spares for network maintenance. In its recent statement, ZETDC advised defaulting consumers who are on the post-paid system to settle their electricity bills without further delay to avoid power disconnections to allow the company to recover unpaid debts amounting to $1,2 billion.
“ZETDC would like to thank all those customers who have been paying their bills timeously, and also those who have been honouring their payment plans, for their valued contribution in keeping the lights on. We urge those customers currently not paying to follow suit,” ZETDC said.
The electricity tariffs are now at 162,16 cents (10,61 US cents), an increase from 38,61 cents.
United States ambassador Brian Nichols says the country’s sanctions do not prevent American companies from doing business in Zimbabwe.
Nichols (BN) told Alpha Media Holdings chairman Trevor Ncube (TN) on his platform In Conversation with Trevor, that Zimbabwe’s economic problems have nothing to do with Washington’s restrictive measures.
The American envoy said instead corruption, poor governance and poor business conditions were behind Zimbabwe’s economic collapse. Below are excerpts from the interview.
TN: What was your imagination about this country, what were your expectations?
BN: Well, it’s a country that Bob Marley sang about it.
It captured people’s imaginations. A number of senior policy makers in my country and around the world have done their theses and dissertations on Zimbabwe. It’s a country that was a great focus in terms of US and international policy.
The chair of my confirmation hearings was Senator Jeff Flake who lived here, did his Masters’ degree thesis on Robert Mugabe.
So that focus and the moment I was entering into that crucial election up to that point when it was generally free of violence and intimidation, things seemingly going relatively well and this could be a moment where there’s a real springboard for Zimbabwe becoming a much more democratic, prosperous and transparent country.
TN: So you then land, presented your credentials on the 19th of July, elections were on the 30th, has that imagination, the hope that you have in this country, have you been disappointed or what?
BN: Well, I have been incredibly impressed with the people of Zimbabwe.
This is a country with incredibly talented people, very well educated, very hardworking.
When you look at Zimbabweans in the diaspora, they are successful all around the world and that should be the case here.
In the week of the election on August 1st, I was in President (Emmerson) Mnangagwa’s office with Senator Jeff Flake and at that moment we were congratulating him on the progress in the elections and while there were some flaws in the process overall, it was a vast improvement over prior votes and then later that day I was in my office and there was gunfire in the central business district.
International election observers were wondering what’s gone wrong, what it means.
The process that Zimbabwe went through with the creation of the [Kgalema] Motlanthe Commission, the fact that those recommendations have not been implemented even more than a year after the August 1 violence, the crackdown by security forces even after August 1, people going into the high-density suburbs, security forces beating people up.
It was quite shocking. We want to give this government space to address those issues, implement the agenda that President Mnangagwa campaigned on and as we heard at the state of the nation address not too long ago, much of that agenda has still not been passed.
Many of the reforms this government has campaigned on, alignment of the constitution, repealing of repressive legislation like AIPPA, POSA that has not happened. TN: Why do you think that this has not happened?
BN: I think there are entrenched interests that are resisting reform here and reform is not easy, but it is important.
When you see the trajectory in the country is now, where inflation is on the hundreds of percent. We measure a basket of 16 basic items in our embassy: mealie meal, bread, cooking oil, petrol, basic vegetable etc, that’s up to 641% year and year as of mid-September.
So the things that most people need are incredibly very expensive.
We have seen very disturbing incidences of abductions of civil society members; we have seen the protests in January, the violence that followed turning off the internet.
Those things were deeply concerning to the international community and to every Zimbabwean.
So that reluctance to take on reforms that could move this country forward is what’s holding it back.
Look at where Zimbabwe is today and where it was five years ago, there is need to make irreversible reforms to address the challenges that this country faces.
TN: Clearly from what you are saying political reforms are not happening, economic reforms are not happening as fast as you want. Tell me in a nutshell, as far as political reforms are concerned what are the three critical aspects of those political reforms that you want to see coming through?
BN: Number one is the low hanging fruits. Implement the electoral reforms called upon by five different international observer missions as well as the domestic electoral observers across multiple elections.
That’s something that almost these observers reports would agree on, the governments has previously said it had plans to do so, they have retreats, they had discussions. You’ve heard all sorts of people come back from these international missions to participate, they’ve got a nice grid, all the blocks are filled in and there’s no reason why that can’t go forward.
The second one would be media reform, I think that the media space in Zimbabwe is very narrow and I congratulate you for maintaining one of the few independent voices here, but it should be broader.
This is a country with only one television station. That even a small town in most countries has more than one television station and having an independent voice in radio or television.
There have not been any licensing of new radio stations in communities or national.
TN: So the media reforms have not happened to your satisfaction. Which is the third issue as far as political reforms are concerned?
BN: Well, I might have to do more than three but I think security force reform is a crucial issue.
One of the deep concerns, I think the people of Zimbabwe have and the international community have is that the security forces continue to resort to excessive force in dealing with protests. You’ve got over 50 abductions that have not been investigated, you have the violence surrounding protests as I mentioned in January and then August again.
That’s something that is crucial, the over-arching issue that I think is very important is a broad inclusive national dialogue to address the concerns that Zimbabweans have.
I think the [fact that the] Zimbabwe Council of Churches call for such a dialogue is a very important one.
It’s something that has the potential to overcome all of these issues bring people together to face the country’s problems in a united way
TN: Is there a creative way that the diplomatic community, that our international friends could come up with, that lowers the temperature, facilitates an engagement of the parties that are currently floating, can we do that.
BN: The international community can play an important role in that regard. An international actor is going to want to see some level of positive will from the key parties and stakeholders in Zimbabwe.
It needs to be an African-led solution, ideally southern African countries playing a major role in that.
Sadc in the past has played an important role in mediating disputes.
Those are the players that are vital. Once you go further afield, it becomes more complicated.
I think the African Union plays an important role throughout the continent and could be supportive in this area.
TN: I am asking this question with the Kenyan situation among it, where the late Kofi Annan with the international community did make something happen there because the problem is we have entrenched interests and entrenched positions on both sides. We need someone to move both sides to the centre with something that is creative.
BN: In the wake of these elections we had Kofi Annan as member of the Elders here in Harare, meeting with people, getting to play a role with Mary Robinson at that time.
We have subsequently had former President Robinson and Graca Machel to follow up with the Elders.
I think that’s an important initiative and could yield positive results.
Sadly as we all know, the former secretary general passed on. You wonder want could have happened if he had been able to intensify those efforts a year and half ago.
TN: Congratulations on your big building. The embassy is beautiful. Is that a sign of the confidence that you have about the future of this country, building that huge beautiful building?
BN: Let’s put the beautiful before the huge. Yes we spent US$292 million building that embassy and we put a presence here and consolidated our presence.
We haven’t increased our staff but that’s a matter of the faith that we have, that this country can progress. There is a bright future for Zimbabwe if it reforms, if it takes the steps.
But I think most Zimbabweans know it needs to move forward.
TN: This country has been under United States sanctions for the past 17 years, since the first Zimbabwe Democracy and Economic Recovery Act of 2001, which was then amended in 2018. There is an argument that these sanctions are targeted but as you and can see what’s happening out there. In reality, these sanctions are devastating to the poor person, to the majority of the companies in the country. What’s your view about these sanctions and what’s the future?
BN: Well, I categorically reject that argument. What Zidera does is that it instructs the executive directors of international financial institutions not to vote in favour of new loans or debt forgiveness for Zimbabwe unless a series of conditions are met.
Broadly, economic and democratic reforms and respect for human rights.
Those executive directors, the board members, the World Bank, IMF, African Development Bank, have never had a vote on Zimbabwe because this country’s own failure to reform has prevented it from ever reaching consideration for debt relief or new lending.
So as a practical matter Zidera has never come into play.
In 2003 the executive branch added Zimbabwe sanctions programme, which is a targeted programme that currently has 141 persons and entities on it.
That is point 0.006% of the population roughly that’s covered.
That does not prevent trade with Zimbabwe. I have brought Fortune 500 companies to Zimbabwe to promote our economic relationship.
I have been in meeting with GE Africa and the president.
I hosted the minister of Health at a trade reception in my home.
I meet with American business associations in Zimbabwe to promote their efforts.
The CEO Roundtable Zimbabwe is going to the US.
I have met with them a couple of times to encourage them to do business here.
John Deere just had a cabinet approved sale of US$51 million worth of tractors to Zimbabwe.
We have several US government supported investment projects and the US Department of Commerce has approved formal advocacy for these companies and they are working on early stages of development right now.
So, we are working hard to encourage business and two-way trade between our countries for the benefit of both our peoples.
When you look at the cause of the economic problems in Zimbabwe number one is corruption.
Corruption has cost this country billions of dollars, the low estimates is a billion dollars a year.
Just the recent Auditor General’s report on command agriculture: there was nearly US$3 billion unaccounted for in the audited period which is between 2017 and 2018.
Just in June to August of this year you had pay-outs to Sakunda Holdings for command agriculture and other purposes at a preferential rate, which increased the money supply in Zimbabwe by 50%.
You wonder why the exchange rate collapsed and inflation spiked between June and August of this year.
It’s that type of operation of illicitly giving people insider sweetheart deals to the detriment of the people of Zimbabwe.
Look at today’s paper, the story on Zinara and its former head involved in illicit activities as part of a larger scandal where someone is paid as much as US$71 million.
Zesa, the transformers and other equipment that are never delivered.
You have international businesses coming here putting in bids, winning the bids be at the verge of the signing a contact and virtually someone inside is parachuted in and they get the contact and then never deliver the products.
This happens over and over again. You see it every single day.
Look at health sector, the procurement of the pharmaceutical sector, the corruption is going around .
People are paying three or four times the US$ price for pharmaceutical products where in many cases free products donated by the international community are available.
Look at the budget of any ministry here and you will find that there are tremendous financial leakages here.
Zimbabwe is near the bottom of the transparency international corruption perceptions index.
It’s near the bottom of the ease of doing business index and the World Economic Forum just put out the numbers I think yesterday.
Zimbabwe is I think 127 out of 141 in the WEF rankings. So, these are what drains this country.
TN: And nobody can argue against any of the stuff that you have said. Here is the one thing that complicates issues as far as this is concerned. The litany of issues of corruption that you have outlined are facts, that’s reality, that’s happened and regrettable. What one wonders why America is not even-handed in dealing with Zimbabwe. Let’s look at Pakistan, Pakistan gets a lot of support from America, from the IMF, US$6 billion to support the IMF staff-monitoring programme. Egypt, with abuse of human rights, 800 people are killed gets US$12 billion for their staff monitoring programme. Why is there no even handedness?
BM: Our focus is on the welfare of the people of Zimbabwe.
Zimbabwe has never qualified for the lending associated with an IMF staff monitoring programme.
When they had the last IMF process here in 2016 it turned out that the government had been cooking the numbers and just as that programme was ending with the introduction of the RTGS we heard revelations that there was off book spending to the tune of hundreds of millions of dollars that the IMF missed when they were doing the accounting and certainly that was a shock to the international community.
I want to stress that the idea that the US is not providing support to Zimbabwe is false. The US is that largest donor, bilaterally to Zimbabwe. Since 1980 we have provided over US$3.2 billion of assistance to Zimbabwe.
TN: Since 1982.
BM: Beginning with independence we have provided US$3.2 billion in assistance. In 2019 we have provided over US$300 million in assistance for the upcoming lean season as we are refer to it, so rolling over into 2020 for food security humanitarian assistance, US$86 million in additional funding over baseline corporation programme.
TN: My argument is that would Zimbabwe’s economy, industry and commerce be in a position to perform in a manner that brings much the money the Americans are bringing in? So, my point is the damage that has been inflicted on this economy by the perceptions and the reality of the American sanctions is hurting the country much more than the development assistance that the Americans are giving.
BM: The perception of the issues in Zimbabwe is driven by the actions, the government of Zimbabwe in the wake of the elections in the 2018.
A lot of companies were calling and inquiring about investing in Zimbabwe and there had been no change to our legislation or executive orders at that time.
As I mentioned to you I brought Fortune 500 companies here to do business, in search of deals and the issue is when people get here and they realise that it’s very difficult for them to find an impartial (hearing) into business disputes.
If they are trying to set up a business here, one small medium businessperson who wanted to establish a lifestyle media company here and when the internet was turned off in January he said how can an internet based lifestyle magazine work here when you turn internet off.
We had companies who are one or two looking into the manufacturing sector here and when they see the problems of customs at Beitbridge they realise that how am I going to deal with this issue, how am I going to deal with corruption, will it delay my truck if I don’t pay a bribe?
Some one sits in a queue for two days to cross into Zimbabwe and if somebody greases a palm their truck goes ahead.
We have had stuff stolen ..warehouses under customs’ control here. The list goes on and on you look at the Zinara.
TN: The list does goes on and on. To run off this issue the list runs on and on but if you look at the two countries that I have raised, Pakistan and Egypt. The list is even bigger there and my question was around the even-handedness about dealing with that. But that being the case the perception about the effect of American sanctions is that we have lost a lot of corresponding banks from 2016 and the perceptions and the reality of the US sanctions is making a lot of banks leave the country because of the fear that if they do business with Zimbabwean banks they are going to be punished by the Americans.
That’s the point and the reality and the perception of the sanctions hurting the Zimbabwean economy. What do you say?
BN: Deal risking is a global phenomenon. Settling the post-September 11, 2001 era, the customer requirements increased globally, there were many countries that have had to confront deal risking issues.
But I think if you want to look at where Zimbabwe can help itself from deal risking there are a number of reforms that the financial intelligence unit and the financial task force within Zimbabwe and globally there are partners have called for the need to be …to increase transparency in the financial sector.
One of the biggest challenges is you see, for example, the low portfolios with non-performing loans that move for …into RBZ, the central bank without real scrutiny of how that was happening continued linkage in certain banks that had to be recapitalised [and] that generates a lack of confidence.
I think in the financial sector above the issue of derisking and know your customer, many countries around the world including major countries like Nigeria and Saudi Arabia have dealt with derisking issues as well and the challenge for Zimbabwe as a small market US$26 billion economy to 16 million people population.
If you don’t have clear transparency measures in place, the benefits for the financial sector internationally with engagement don’t match the risk and that’s when you having issues with derisking.
And I think that solution is well within the government of Zimbabwe’s ability to address.
TN: Lets us look at the issue around president Donald Trump’s administration and its interest in Africa. They have just legislated for better utilisation of investments leading to the Build Act, which is in place. Are we going to see more interests and investments in perhaps prepared markets in Africa, is that going to happen?
BN: It absolutely has that potential. We think that this is good initiative, which brings a new
$60 billion market capitalisation of all our investments and development agencies from the United States government together under one roof so that we can offer comprehensive suite of tools for American businesses that are looking for partnerships and relationships around the world.
TN: Any ideas of where this is going to be deployed, which countries, sectors?
BN: Well that is the beauty of our policy which is that it is going to be driven by the market and the private sector.
We want to make sure that these initiatives support our overall development goals for our partner countries but it is going to depend on the different countries being interested in doing a deal, finding a market and then we bring them things like market feasibility studies, investment insurance which is very important particularly in countries like Zimbabwe where you have forex risk.
Namesakes are commonplace the world over and when one shares the same name with a public official it usually becomes an interesting scenario indeed, especially if that official is the subject of either ridicule or praise.
For Gweru’s 17-year-old Mthuli Ncube, being a namesake has turned out to be more of a curse than a source of pride. The Midlands based teenager believes sharing the same name with the Finance Minister has turned to be a real curse for him.
A tale of the two Mthuli Ncubes is how one sums it up. The other one is an accomplished professor and trending politician upon whose shoulders lies the hopes of millions of Zimbabweans. The other one is no high flyer at all. He is a poverty stricken figure confined to the rural backyard of Vungu constituency in Lower Gweru.
On the day this paper met him, during the World Food Day celebrations held at Insukamini Irrigation Scheme, the young Mthuli was putting on shoes without laces. Of course, the richer Mthuli might not even bother about what a shoelace entails because that is obviously the last thing on his mind.
The new dispensation saw the appointment of Mthuli Ncube the professor and technocrat as the Finance minister. The nation welcomed him with anticipation as people thought that he was going to be the saviour sent to resuscitate an economy that was left in a comatose by the late former president Robert Mugabe-led government.
Before his swearing in, Ncube seemed to have had all the solutions to the economic problems that have bedevilled the country on the finger tips. However, he has become public enemy number one because of his austere measures.
But Vungu’ Mthuli Ncube is a different story altogether.
Dressed in white pants, brown shoes without laces and a matching black shirt, the boy wonders all over the place and no one even bothered to look at him. To many he was just a teenager perhaps chasing after girls at an event that attracted scores of villagers from the surrounding area.
But here is a teen who bears the name with Zimbabwe’s finance minister. He is called Mthuli Mark Ncube or just Mthuli Ncube.
The young Mthuli has a sad story to tell. A school dropout, who lives with his mother and uncle, Mthuli shared how the name has caused him a lot of trouble with fellow villagers.
“Some people jokingly say that I bear the name of someone who is causing them to suffer. I have encountered such moments here in the village. My name is Mthuli Ncube and that cannot change,” he said.
The young man who failed to sit for O’Level examinations at the nearby Insukamini Secondary School for his own reasons said he doesn’t know much about the finance minister though he confirmed how life has become tougher back in the village since the removal of Mugabe from power.
“I do not know much about Mthuli Ncube — all I hear is that he deals with money. However, life is tough here, the economy is bad and people are suffering. Life is unbearable to all,” he said.
The country is currently grappling with massive price hikes of basic commodities with citizens being hit hard. The hospitals are no longer places to seek health as doctors and nurses have downed tools because they earn too little to allow them to perform their duties well. They say they are incapacitated.
However, it is in Vungu where Mthuli believes his life has come to an end at such a tender age. Perhaps one day he will own a pair of decent shoes and be able to complete his O’Levels. Meanwhile, about 320km away from his village his namesake lives a lavish life, often flying to a faraway country to visit his family at government cost.
Mthuli the minister drives in luxury cars, stays in expensive hotels and travels abroad frequently in private jets. The world is indeed sometimes a cruel place to live. The tale of the two Mthuli Ncubes is a sad reality and an example of the gap between the rich and the poor.
President Emmerson Mnangagwa has been asked to help resolve the wrangle over Waverley Blankets after a relative of the company’s founder allegedly seized control of the textiles giant through corrupt means.
The children of Victor Cohen, who owned at least 13 companies, allege that their nephew Aron Vaco pushed them out of the business empire through fraudulent means.
Cohen’s daughters Amanda Berkowitz and Belynda Halfon have since written to Mnangagwa imploring him to intervene, saying their efforts to recover the assets are being frustrated by corrupt institutions.
“It is worrying that the people who are supposed to fight against corruption and fraud are the same people who are working with the people who are heisting our father’s companies,” Berkowitz said.
“We have reported some of the fraudulent activities at the police and National Prosecution Authority (NPA) after discovering fake documents and it’s now more than a year, but nothing is moving.
Berkowitz said they first reported the case to the police last year and they were referred to the NPA, but there has been no movement in the case.
“The fake documents, which I showed the NPA were the letter purportedly signed by the late Cohen ceding his fake shares of Waverley Plastics to Aron Vico,” she added.
“This particular document was pathetically executed, written on the wrong letterhead.
“However, the NPA did release a directive to the police’s commercial crimes division to obtain the original copy for forensic investigations, but we were told by investigation officer one Blessing Hove that Vico refused to surrender the original document.”
Berkowitz said the same fraudulent documents were used to change the ownership of the company and to open new bank accounts.
“I informed the police that the CR14 Vico is using to prove directorship and open bank accounts was totally irregular,” she said.
“I offered proof but was totally ignored. This follows a disturbing trend where fraudulent documents were likewise overlooked during a High Court hearing presided over by Justice Happius Zhou despite evidence by forensic specialists that proved the documents were fake.”
Berkowitz said she is left with no choice but to approach Mnangagwa to intervene.
Halfon accused Vico of using his political connections to plunder Cohen’s estate.
“No one believes my father left us nothing, we have been told categorically that our shares are worth nothing and my father left no cash,” she said.
“We are trying hard to get justice and Berkowitz met most of the decision makers but was consistently blocked in such a way that Vico was favoured even if we had proof of evidence.”
Halfon said some of her father’s companies were fraudulently changed into individual names and that was not her father’s wishes.
The sisters said they have opened cases with the police under criminal numbers CID CCD HC CR377/03/19 for Waverley Plastics and another case for companies namely Erica, Blankets for Africa, Colourfast Textiles and Printers.
