BY PRAISEMORE SITHOLE

A SOUTH AFRICAN economist, Nisha Sewdass, has urged the Zimbabwean authorities to think outside the box and in a disruptive way to rescue the nation from economic rot.
Sewdass made the remarks at the launch of the Zimbabwe National Trade Policy vision and Export Promotion Strategy in Bulawayo on Thursday last week.

The policy was launched at the ZimTrade exporters conference, which was officially opened by President Emmerson Mnangagwa.Sewdass said Zimbabwe needed to urgently devise ways to get itself out of the current economic quagmire.

Sewdass, a professor at the College of Economics and Management Science at the University of South Africa, said businesspeople should engage in disruptive thinking, surprise the market over and over with exciting, unexpected solutions and products or services.

She said according to RMB Investment statistics, Zimbabwe was ranked 34 out of 53 African countries in investment rankings in 2018.

“This is an improvement from 2017 where Zimbabwe was ranked 45 out of 53 marking an improvement with 11 places. In investment rankings, prioritising economic activity, Zimbabwe was ranked 34 out of 53 Africans,” Sewdass said.

She said Zimbabwe, however, had a good reputation and in terms of infrastructure, it was ranked number 20 in Africa, although in ICT development indexes, it was ranked number 136 out of 176 worldwide.

“According to the global competitiveness index 2017/18, Zimbabwe was ranked 124 out of 137 countries. In goods market efficiency, it was ranked 131 out 137 countries, imports percent GDP [gross domestic product] 87 out of 137, exports GDP 97 out of 137, technological readiness 121 out of 137 and in capacity for innovation it was 90 out of 137,” the South African economist added.

She also noted that South Africa remained the largest market for Zimbabwean products, taking 52% of the total exports.

“What if the President of South Africa Cyril Ramaphosa finds cheaper markets elsewhere, what will you do when they start exporting somewhere cheaper? I urge you to diversify,” she added.

“United Arab Emirates takes 18% of the market share; other markets include Mozambique (10%), Zambia (1%), China (1%) and Botswana (1%).

“In 1992, Zimbabwe export market risk was evenly spread across the globe, most export markets were in developed countries. In 2017, South Africa (63%) was now Zimbabwe’s dominant export destination, therefore, there is no spread of risk at all,” Sewdass said.

She added that large import bill on manufactured products, export of jobs and low export earnings, export of raw materials meant that there was no development in the country’s manufacturing sector.

Sewdass warned that mineral resources are finite and continual extraction leads to depletion.
She also urged businesspeople to digitise agriculture through the use of drones as they integrated drone imagery with other data sources to develop and disseminate customised farmer advice.

Sewdass also said such technology had proved effective in Australia, Kenya and Tanzania, among others.

BY VENERANDA LANGA/NUNURAI JENA

GOVERNMENT has been urged to craft innovative and sustainable healthcare financing policies and protect the poor and vulnerable groups through implementing a comprehensive national health financial strategy.

Community Working Group on Health (CWGH) executive director Itai Rusike said this in his 2020 CWGH national health strategy budget paper.

Rusike noted that Zimbabwe’s health sector was grossly underfunded compared to neighbouring countries in the Sadc region to the extent that government in 2019 spent US$41 per capita (per person) on health, which is grossly inadequate.

“Government spends a relatively small share of its gross domestic product (GDP) on health care and the lower levels of per capita health expenditure indicate that health expenditure in the country is insufficient to guarantee adequate access and quality of healthcare,” Rusike said.

“Per capita health allocation stands at about US$41 in 2019 up from US$31 in 2018, while per capita health spending is US$650 in South Africa, US$90 in Zambia and US$200 in Angola, and the inadequate public financing of health has resulted in an overreliance on out-of-pocket and external financing, which is highly unsustainable,” he said.

With the prolonged strike of medical doctors at Zimbabwe’s health institutions, poor people are the worst affected because they can not access medical treatment from private institutions.

Rusike said what made the country’s health situation worse was the fact that most of the health financing was donor sourced, which is unsustainable.

“Development partners are expected to complement the 2019 budget appropriations. The Global Fund, for instance, is expected to provide US$75 million. The high dependency on external financing is unreliable, unpredictable, unsustainable and highly dependent on the political environment, raising concerns on the sustainability of health financing and the vulnerability of government’s budget should external funding be withdrawn,” CWGH director said.

Rusike said the main sources of health financing in Zimbabwe are employers (28,4%), followed by households (25%), external financing (24,9%) and government at the lowest at (21,4%).

“There is an over-reliance on out-of-pocket and external financing. Out-of-pocket payments by households have driven many households deeper into poverty. The high dependency on external financing is unreliable, unpredictable, unsustainable and highly dependent on the political environment, raising concerns on the sustainability of health financing institutions and the vulnerability of government’s budget should external funding be withdrawn,” he said.

Rusike said donor funding was dwindling owing to global economic constraints, and, therefore, government must respect the Abuja Treaty requirements that health should get at least 15% of the National Budget.

He said high out-of-pocket spending in health has turned many households poor.“The free user-fee policy for pregnant women, under-fives and those aged 65 years and above has not been backed by resources and has resulted in over-crowding at the tertiary institutions. Moreover, the blanket cover does not look at ability to pay,” he said.

Rusike adjudged the health situation in the country as currently in a critical situation due to macroeconomic instability.“Public health sector allocation stood at 8,9% in 2019. Employment costs, however, constitute 66% of the total health budget. The Abuja 15% target remains an elusive target for the country. The sub-Saharan African average is 13%. As of 2015, Rwanda was spending at least 23% of its budget on health care,” he said.

On shortages of health personnel, Rusike said high drop-out rates in public sector health care posts have resulted in vacancy rates of over 50% for doctors, midwives, laboratory and environmental health staff, exacerbated by the fact that Zimbabwe’s nurses’ establishment was last reviewed in 1983 yet the population has increased significantly.

Meanwhile, acting general treasurer of Zimbabwe Hospitals Doctors’ Association Peter Mungofa said most doctors were now considering job opportunities in other countries as government has failed to meet their demands.

“Nothing has changed despite President (Emmerson) Mnangagwa’s chilling threats. What has changed is that doctors are enquiring about going to work outside the country and our fear is that very few doctors will remain in the country,” Mungofa said.

Mungofa said they were shocked by Mnangagwa’s threats when they thought he was going to resolve the issue of salaries and doctors’ conditions of service.

BY winstone antonio

ORGANISERS of the biggest braai event, the Castle Lager National Braai Fest last week unveiled a star-studded line-up of top local entertainers, who are set to add the sparkle at the two-day event set for this Friday and Saturday at Old Hararians Sports Club in Harare.

The popular and strictly no-under-18 fest funded by Delta Beverages through their Castle Lager brand makes a return after it was cancelled last year, following an outbreak of cholera.

Dancehall chanter Killer T and urban groover EXQ will open the festival, taking turns to entertain merrymakers alongside wheelspinners DJ Starvo, Raydizz, Legendary Sounds, Merciless Zimbabwe and Silence Dosh.

The programme of the opening day, according to the fest organisers, will kick-off at 4pm to pave way for other scheduled national events on the same day.

The heat will be turned up on the final day of the fest when dancehall president Winky D shares the stage with fellow chanter Freeman and hip-hop sensation Takura, while Judgment Yard, DJ Storm, Gary B and emcee Templeman, DJ Mbale and DJ Cesh, among others will be rocking it on the decks.

Speaking at the Castle Braai Day internal launch on Friday, Delta Beverages acting general manager Stanley Muchenje said they will be pomp and funfair for meat, beer and music lovers at the fest.

“The concept of this year was a bit different from the usual. You would know that we normally just run one day, but this time around we took it to a number of the key cities in the country so we started with Kadoma, then we went to Chinhoyi, Mutare, Gweru, Bulawayo and Masvingo,” he said.

“It has been running and it will run until we go to the (final Friday and Saturday event). While we have started here, at source, at home with this function today (Friday) we are also not saying you are not invited we want to see you all on Saturday. We are making plans so that every department gets their entry tickets to come and join us.”

In a recent statement, Delta corporate affairs executive, Patricia Murambinda said: “We are calling all braai patrons of all popular braai spot areas in and around Harare to come and enjoy their favourite braai at Old Hararians Sports Club on October 25 and 26.”

“Castle Lager, as the flagship lager beer brand for Delta Beverages, is giving all braai lovers a platform to come together and set their own record braaing, enjoy their favourite lager while listening to good music. We have doubled the fun and doubled activities for our consumers of Castle lager and the event is now bigger, better and we promise a lot of excitement.”

Delta Beverages has been running the festival through their Castle Lager brand since 2016, with the inaugural edition setting a record, where over 12 000kg of meat were consumed in one day.

The second edition of the braai fest, held in 2017, saw a staggering 15 000kg of meat going on the braai stands with proceeds from the event being channelled towards charity.

NewsDay

JOHANNESBURG — Cassper has reflected on his struggles during the come-up, detailing how he was evicted from his flat and had to move in with a friend on the sly.

The rapper has always been candid about his broke days and in a birthday shout-out told a story about being kicked out of his place because he couldn’t afford the rent.
“If you’re a true fan, you would know this story. About 10 years ago I was evicted from my flat because I couldn’t pay rent.”

He said he told a friend, Nissy, about his situation and she offered to let him move in with her … on the low.

“I was busy crying telling my friend what was happening in my life and she immediately says ‘no man, speesh’, as she would call me, ‘don’t cry my brother, come move in with me until you find your feet’. She did this without her father’s knowledge even though he was paying for the flat so we would have to hide it from him every time he would visit, for about a year.”

He said they managed to keep it a secret by locking Cassper’s room. It got so intense that people even thought they were dating.

“The other bedroom would be locked so he doesn’t notice. She did this out of the goodness of her heart because she loved me and believed in my dream. We became so close that people thought we were dating.

“Not once has she ever reminded me of what she did for me, but when I hear her name, I feel like crying because she saved my life and my career as she would always gas me up saying you’re the greatest bro, one day they will know.”

Tapiwa Gomo

The debate on sanctions imposed by the United States is once again hogging the limelight and polarising the nation. Sanctions under the Zimbabwe Democracy and Economic Recovery Act (Zidera) is an Act passed by the US Congress which imposed economic sanctions on Zimbabwe, allegedly to provide for a transition to democracy and to promote economic recover.

The passing of the Act was a culmination of various and emerging political conditions between 1999 and 2001 in Zimbabwe which included, among others, political violence, violations of human rights and a complete disregard for global norms of governance.

Contrary to the narrative being spread by the government that the sanctions must be lifted as they are hurting ordinary people, the US government has perpetually argued that they are targeted, which means they only apply to the entities and individuals on the list of sanctions related to Zimbabwe.

Against a blitz of public relations, diplomatic engagement and lobbying by the Government of Zimbabwe, in March this year, US President Donald Trump extended the sanctions by another year arguing that “President Emmerson Mnangagwa has yet to implement the political and economic overhaul required to improve the country’s reputation with the community of nations, and with the United States.”

This has not discouraged the Zimbabwe government, who have used every opportunity to remind the world that the US must lift its sanctions on Zimbabwe. They mobilised some Sadc countries to call for the removal of sanctions at the 74th United Nations General Assembly in New York in September this year. The regional body has agreed to declare October 25 a day to campaign against the same sanctions.

Where is the conundrum? The conditions that necessitated the introduction of the sanctions have not improved with some arguing that the situation has actually deteriorated, a situation which is working against government efforts to get the sanctions lifted.

“The actions of the targeted individuals continue to undermine Zimbabwe’s democratic processes,” noted a statement by the US government in March this year.

Another puzzle is that the US government’s argument that the sanctions are targeted is porous because they are stifling the ability of government officials on the targeted sanction list to do business with the US and its wider global network of corporates and institutions.

For that reason, the government of Zimbabwe has argued that sanctions are hurting ordinary citizens. It is both a farfetched and convoluted argument.

Nonetheless, both governments of the US and Zimbabwe — in their recriminations — concur that ordinary citizens are vulnerable and being hurt by the policies and actions of the other and not theirs hence the reluctance to yield. In fact, each of them view their actions — sanctions or their lifting — as an attempt to help Zimbabweans.

And yet on the ground, as the nearly two-decade stand-off persist, Zimbabweans’ destitution continue to deepen. A nation is caught between a hard rock and a hard surface.

Several explanations and arguments have been thrown around. While not denying that sanctions at minimum disrupt a country’s ability to progress, they are not the main reason Zimbabwe is where it is today. The country is where it is today because of obscene corruption, mismanagement and poor governance.

Take for example, the year 2006 witnessed a mineral rush to Chiadzwa in Marange district where diamond reserves in that area were thought to be one of the world’s richest deposits. Billions of dollars in diamonds were siphoned out of the country from the hugely prolific fields regarded by some experts as the world’s biggest diamond find in carats in more than a century. The Marange field was, at the time, regarded as the largest diamond producing project in the world, estimated to have produced 16,9 million carats in 2013 alone, or 13% of global rough diamond supply.

Sanctions did not impede the siphoning and trade of the Marange diamonds at all to any part of the world until early this month when the US government banned trading of diamonds from Zimbabwe. The country is expected to produce 4,1 million carats of diamonds this year, up from 2,8 million carats in 2018.

At the peak of production, the earnings from just one mine — the Marange fields — would have transformed the whole country. But no. It leaked via obscene corruption, mismanagement and poor governance. If it were not for these, that money too would have helped circumvent the effects of sanctions and the sanctions story would have been irrelevant to our lives today.

The country would have boosted its industry, collected taxes from a thriving industry, sustained basic services, paid civil servants well and ensured that unemployed youth do not spend their time demonstrating in the streets. Our leaders would be sleeping peacefully with the knowledge of a thriving economy — just like Botswana whose economy is largely sustained by diamonds.

While sanctions are not condoned, there is zero guarantee that if they are lifted, they will result in any meaningful improvement in the lives of ordinary people because the Marange situation typifies the character of the rot that has destroyed our country. The insincerity is evident in government’s approach to push the US to lift sanctions. Instead of seeking to address the issues raised by another sovereign country, the US in this case, before re-engage them, the Zimbabwe government has chosen a political route to arm-twist the minds of the US leadership to lift the sanctions.

The US is a sovereign country that enjoys the right to choose who to engage with and the fact that they have chosen not to deal with Zimbabwe should surely not be the end of the world.

BY TAFADZWA MHLANGA

Banc ABC says it has set aside funds to benefit farmers in the 2019/20 farming season.This comes after the 2018/19 farming season was greatly affected by poor rainfall, resulting in a serious drought. Lack of funding for irrigation and horticulture also contributed to the poor harvests.

“We are very aggressive in providing funding in various sectors and we are going to fund the agricultural sector more, so that the country recovers from the drought that we experienced in the previous farming season,” Banc ABC managing director Lance Mambondiani said, without disclosing the amount.

According to the 23rd Southern African Regional Climate Forum, the country is expected to receive normal rainfall from October to December and normal to below normal rainfall between January and March next year.

Due to this forecasted rainfall pattern, farmers have been encouraged to consider irrigation in order to avoid another crop failure.

Mambondiani said the bank had already started funding some agricultural projects in a bid to improve the country’s imports and revive the economy.

“We have also started funding the agricultural sector and other sectors that we feel require assistance for them to go to the next level. We are funding them especially for the reasons of improving the country’s exports to revive the country’s economy,” he said.

“If you know the Chiredzi sugarcane farm, where sugar cane production is done, we are already working with them, funding their operations among other projects. We believe more in impact rather than profit, profit will always come after impact. We use the little opportunity that we have to be a key player in this sector,” he added

Zimbabwe was for many years known as the breadbasket of Africa, exporting wheat, tobacco, and corn to the wider world, especially to other African nations and is yet to return its former glory.

In the past, farmers have struggled to access credit, risk mitigation products and well-functioning farming machines because they have had no collateral security, among many other requirements by financial institutions.

Mambondiani said the bank was taking advantage of being part of the pan-African banking institution by using their financial strengths to fund institutions that are lagging behind in this economic environment.

“We are privileged to be part of the pan-African banking institution and we are building in several other markets. We kind of leverage on the strengths of our colleagues in the region to give us the strengths we require to become the strong financial institution we are,” Mambondiani said.

The managing director said the bank believes in partnerships with like-minded organisations to cut operational costs in this harsh economic environment.

“It’s extremely tough operating in this environment, not only for this bank, but for all businesses that are operating in this environment, but we strongly believe in partnerships. We believe that when things are hard you don’t have to build anything on your own. Make sure that you are holding hands and partner with like-minded people who kind of allow us to reduce costs a little and scale-up as quickly as possible, (instead of building) things on our own,” he said.

The financial institution also partnered with the Harare City Council to help solve the water and refuse collection problems in the capital and improve service provision.

BY MTHANDAZO NYONI

WORKERS in the general agriculture sector have been awarded an 84,62% salary increment, which will see the lowest paid employee getting $360 a month.

According to the collective bargaining agreement seen by NewsDay Business last week, the highest paid employee would now get $720 from $390.
Before the adjustment, the least paid employee was earning $195.

However, the new wage adjustment, which became effective on October 1, has been described as too little to cushion workers from the prevailing economic hardships.

Inflationary pressures have seen the cost of living rising beyond the reach of many in the southern African nation as prices of basic commodities have more than quadrupled in recent months, resulting in the poverty datum line for an average family of five skyrocketing to $1 617 in July.

The wage agreement, signed on October 18, was reached by the parties which included Zimbabwe Agricultural Employers Organisation, Zimbabwe Commercial Farmers’ Union, Zimbabwe Farmers’ Union, Commercial Farmers’ Union, Zimbabwe Tobacco Association, General and Plantation Workers’ Union of Zimbabwe and Horticulture General Agriculture and Plantation Workers’ Union of Zimbabwe as well as Horticulture General Agriculture and Plantation Workers’ Union of Zimbabwe.All amounts were rounded off to the nearest $1, the agreement reads.

“An establishment or employees may apply to the National Employment Council within 14 days for an exemption of partial exemption or review from paying wages as set up in the above schedule, stating the reasons why that application should be considered,” reads part of the memo.

Progressive Agriculture and Allied Industries Workers’ Union of Zimbabwe general-secretary Raymond Sixpence accused workers’ unions, who took part in the negotiations, of conniving with the employers to impoverish workers.

“It’s still the same wine in a new bottle. There is nothing to cheer or celebrate. We are going to negotiate for a living wage on the farms with each individual employer. These unions are betraying the workers. They are sleeping in bed with employers,” Sixpence said.

“None can survive with this paltry wage. We are allowed to negotiate in terms of the Labour Act chapter 28:01,” he added.

At its peak, Zimbabwe’s agricultural sector used to provide 45% of the country’s exports, 60% of all raw materials used by local industry and 70% employment.

But now the figures have plummeted, due to a combination of challenges such as recurrent droughts that have preceded chaotic land reform programme in the wake of unavailability of cheap agriculture funding, among other constraints.

BY CHARLES LAITON

Women’s Comfort Corner Foundation (WCCF) director Rita Marque-Mbatha has petitioned President Emmerson Mnangagwa, seeking his intervention in a matter in which a Chitungwiza woman, who scalded a six-year-old girl with hot water causing her first degree burns, was sentenced to 210 hours of community service despite the gravity of the injuries inflicted on the victim.

WCCF raised the issue after Pamela Chipile was sentenced to perform 210 hours community service by a Chitungwiza magistrate following her conviction on charges of physical abuse and negligently causing serious bodily harm.

Chipile scalded the minor following a verbal showdown with the girl’s mother.Marque-Mbatha, who is also the vice-president of the International Alliance of Women (IAW), which advocates for the elimination of violence against women and children, also wrote to the Prosecutor-General (PG) Kumbirai Hodzi complaining about Chipile’s “lenient” sentence.

“Reference is made to a plethora of letters written to you (PG) by Ms Rita Marque-Mbatha and to date we have not received any update. We still aver that the sentence (community service) meted out to Ms Pamela Chipile the accused was grossly disproportionate to the offence committed considering that the doctor averred that the first degree burns on the six-year-old child were very serious and a possibility of a permanent damage abounds,” WCCF said in a letter dated October 11, 2019, addressed to Hodzi.

Marque-Mbatha accused the PG of delaying responses, yet Mnangagwa, despite his busy schedule had promptly responded to her letter.

“A letter written to His Excellency, the Honourable President of Zimbabwe, but despite his busy schedule, he responded to the letter within three days and same delivered to our offices in Hatfield,” Marque-Mbatha said.

“In working with professionals inside and outside the criminal justice system, we seek to improve outcomes for victims and pursue accountability for their assailants. Our goal is to protect the victims and prevent future attacks, counselling and to keep our communities safe thus communication is of paramount importance and we are concerned about the inordinate delay in responding to the concerns of our client in the instant matter.”

On July 30, 2019, Mnangagwa’s principal private secretary, one W Gwatiringa assured the women’s organisation that the President had referred the matter to Hodzi for possible appeal.

“Thank you for writing to his Excellency the President on the above subject. Kindly be advised that His Excellency the President referred the matter to the Prosecutor-General for a possible appeal,” Gwatiringa wrote.