Guest Column: Brian Sedze

The economic challenges facing Zimbabwe are not about money. Our major issue is deficiency of a supportive government with competencies to design policies that enable innovation and value creation.

The country should also not pin its hopes and aspirations on welfare economics, but rather, it must trade for success. That trade requires new products and solutions instead of benevolence.

National leaders should also disabuse themselves from the fallacy of new money from Bretton Woods, but instead walk into private banks with bankable projects.
The importance of the Bretton Woods institutions should basically be the simultaneous and sequential signalling that the country is not in good hands.

The ‘open for business’ credo, itself a flawed public policy initiative, is premised on foreign direct injection of money. The government expects money without creating a platform for ideas. A country that needs money should be alive to the fact that money chases ideas, not vice-versa. Without ideas, money will not come. Instead, we have to be content with resource robbers.

Creative ideas, intellectual property and new knowledge enable conversations with private banks, venture and private equity firms, among many global funding options. Ideas should be to creatively solve unique challenges, satisfy local demand and for the production of exports to the world.

At the moment, all the government is seized with is trying to solve old problems with new money. New money must be used to create new demand and export orientation.

The government mindset is warped and captured in the old in that they believe the old industries should be resurrected and made to run again. But opposed to that, it should throw away the bravado and have a starting point, where we have to think afresh as if there were no Zimbabwean industries at all.

One Langton Chirinda said:“Zimbabwe should be viewed as completely dead economy-wise and that we have to think afresh as if there were no Zimbabwean industries at all!”

In that respect, we should see the government embark on massive trial and error through research and development budgets! This must be the biggest budget for now — to stir up new thinking that would result in new industries and a new economy!

The government should no longer view itself as this Leviathan that exists to tax existing industries and few employees to the last cent, fix market failures, provide public goods, fund infrastructure and correct industry externalities, but instead drive the next big revolution in innovation and germination of new enterprises.

Let us learn from the Americans and Rhodesians.

The United States became a powerhouse by directly supporting those who were innovative. It often had to move from an innovation policy maker to a player, the reason why the coolest tech companies are American. In fact, some of their great industries germinated within the army. America is great because of innovation, not resources.

Ian Smith made Rhodesia a breadbasket by supporting industries in agriculture. Rhodesian products commanded respect and had demand across the region due to the implementation of quality ideas in agriculture.

In fact, most of the few agricultural products we still export are relics of the colonial government economic initiatives. The country has failed to move forward, nearly four decades later.

Hundreds of manufacturing and service industries post-1965’s Unilateral Declaration of Independence in Rhodesia depended on agricultural inputs to germinate and run.

We are presently producing products and services that our regional peers and trade partners already have a better competitive advantage comparatively. We will not create valuable exports by investing in this old way of thinking.

Import substitution is a great option, but it should be done by creating and leapfrogging new processes and technology. Investing in ensuring that our country is not being taken advantage by neighbours is a start to great import substitution.

The country may leverage on its resources to create more value instead of just deriving national pride from good soils, great weather and minerals. Is it not shocking that upmarket furniture shops in Zimbabwe import from the United Arab Emirates, an arid country without significant forests and cattle?

The crowds that advise the President (Presidential Advisory Council (PAC), Cabinet, government “technocrats” and other informal structures) should start with this very basic new truth. The new truth is that the country doesn’t need economic renewal, but a complete new birth.

With this new truth, the President should start with a national plan, then derive a structure (ministries and State actors) from there. Structure follows strategy, not vice versa.

Zero-based budgets must be implemented: They should be speaking to national strategy of value creation. More resources should be applied in the generation of the new, instead of feeding the same old and non-value adding structures.

A lot of ministries should be disbanded as they were able to only serve the 1980 economic realities, and not those of 2018. The country should have more ministries focussed on re-birth, creating a new economy and a new Zimbabwe with a focus on radical and disruptive initiatives.

The much touted mega deals, unfortunately, are not exactly the answer as they are mostly based on primary resources. Exporting our chrome, gold, tobacco, lithium, gold, coffee and so forth, without a value addition, will build industries in other countries.

In fact, the companies driving mega-deals are doing exactly what we should be doing. Walk into private banks with business plans to borrow. Not much equity is invested by these companies, rather they invest in ideas.

In their stride, the major idea is that Zimbabweans are sleeping on their laurels and their minerals can be taken after paying a pittance.

To enable creation of the new, the government must entrench fiscal laws that are punitive to exporting raw and a reward system for value adding industries.

Part of the success matrix is to reward technology transfers and local human capital capacitation. Though implemented halfheartedly, value addition proposal in ZimAsset was a step in the right direction.

Beyond the metrics of creating both employment and spurring investment, it is also of strategic importance to have nationals controlling primary resources. The badly negotiated mega-deals disinherits our children.

If we invest in thinking, idea formulation and commercialisation of innovations, we are likely to meet success. This idea of thinking we can just have money without investing in ideas will continue our circle of poverty. We have to create the new.

 Brian Sedze is strategy consultant and president of Free Enterprise Initiative. Free Enterprise Initiative is an advocacy in less government, free enterprise, fiscal and public policy. He can be contacted on brian.sedze@gmail.com

By Farai Matiashe

NEWLY-formed Zimbabwe Total Independence party leader Elias Tapfumaneyi Mbabvu has called for President Emmerson Mnangagwa’s resignation, accusing him of failing to resolve the country’s economic crisis.

Addressing a media briefing in Harare recently, Mbabvu said for the country to progress, Mnangagwa should step down as it was now clear that he had failed to turn around the economy.

He said he does not believe that the country’s economic decay was a result of Western sanctions imposed on the country following the 2000 chaotic land reform programme.

“Mnangagwa must step down for change to take place,” Mbabvu said.

“All these problems the country is facing, from high a inflation rate, unemployment to shortages of basic commodities, in our view, their causes … are not a result of sanctions, but rather, Zanu PF and their leader Mnangagwa.

“Mnangagwa has failed to put the country in order in all aspects, especially in as far as the economy is concerned. The economy is worsening by the end of each day and it is the ordinary person who is suffering. The ordinary Zimbabwean men and women are failing to provide food for their families or sending their children to school. Life in Zimbabwe at this point is unbearable.”

He the declared: “The best leader by the end of the day is the one who can fix the economy and deal with day-to-day inflation levels and the runaway economy which has turned out to be the worst world over.

“There is need to immediately adopt and enforce a genuine national currency which will help in avoiding any further erosion of the personal incomes.”

He added that priority should be given to the regeneration and growth of the industry employing the latest technological trends.

The ZTI leader said the Mnangagwa-led government should refrain from continuous human rights abuses, adding the Zanu PF leader’s actions were clear that he was turning Zimbabwe into a military State.

BY CHARLES LAITON

Former Zanu PF youth leader Kudzanai Chipanga has approached the High Court seeking stay of his criminal trial at the Harare Magistrates’ Court.

Chipanga is being charged together with Innocent Hamandishe and Rodney Dangarembizi for allegedly communicating falsehoods, causing dissatisfaction in the army and undermining public confidence in the Zimbabwe Defence Forces following a Press conference they held at the Zanu PF Headquarters in Harare at the height of the ruling party’s factional fights almost two years ago.

However, Chipanga and his co-accused have argued that they cannot proffer their defences in the absence of a statement by Chiwenga, which formed the basis of their prosecution.

In his court application, Chipanga and his colleagues said the State appeared determined to continue with their trial despite the fact that they made an application for further particulars, which was dismissed after which they filed an application for review at the High Court, which application is still pending.

“On April 23, 2019, applicants (Chipanga, Hamandishe and Dangarembizi) appeared before the second respondent (Edwin Marecha.NO) … On the same day, applicants applied for an order directing first respondent (State) to supply applicants with certain particulars and on May 22, 2019, the second respondent dismissed the application,” Chipanga’s lawyers said in their affidavit.

“The matter was postponed to June 11, 2019 for trial commencement. On June 6, 2019, applicants obtained a copy of the untyped record of proceedings to enable them to file an application for review … as soon as the application for review was issued, applicants filed an urgent chamber application for stay of proceedings.

“Applicants, thus, seek an order for stay of their prosecution pending finalisation of the review proceedings in the High Court. Should the trial proceed, the application for review will be rendered academic should the application for review succeed.”

The former Makoni West MP and his co-accused are being represented by Mbizo, Muchadehama and Makoni.

Guest Column: Fr Oskar Wermter SJ

THE Soviet army rolled over Germany in 1945. My home province, in the extreme east of the country and a direct neighbour of Soviet territory, became Russian and Polish. 19th century nationalism and chauvinism had torn Europe apart.

As a small boy, three years old, I became a refugee, without a home, the youngest of five children, brought up by my widowed mother — my father lost in Adolf Hitler’s war against Russia, a country so vast, nobody had ever conquered it, neither Napoleon Bornaparte nor Adolf Hitler. This war, the Second World War, left us homeless, turned us into orphans, migrants seeking refuge on alien soil.

I grew up feeling a deep horror of any kind of war or warfare and armed violence. I observed American and British bombers dropping from the sky their lethal load of bombs, rockets and grenades. The city where we had landed after crossing borders from east to west consisted just of ruins and devastation. After three wars between France and Germany in less than 100 years, we did not want to see another war.

This city was rebuilt, and is now more wonderful than it had ever been. Let it not be bombed to smithereens again!

“No more war!”

Nationalist fanaticism was out, a new order, the European Union, was in. The common market and the economic union was supposed to bind European nations, indeed of the whole world together in the United Nations, and thus to make war impossible. The new leaders of France, Italy and even defeated Germany agreed: “No more war!”

Greedy, power-hungry fascists and anti-semites were no longer in power, but Christian leaders determined to bring back peace to their homelands.

I came to help build a young Church in Africa, and free society from racism and fratricidal violence. Nationalism and a people’s war were considered the answer to colonial oppression.

At the moment, I am back with my family, and meet old school friends and colleagues. It is a time of reflection and remembrance of the last 50 years, in Europe, as well as in Africa.

I am alarmed that the slogans: “No more war”, “No more nationalism and chauvinist selfishness” are beginning to fade away and lose the power to convince. The young generation has never known war. What was built in 50 years, a political and economic union of 28 European states, is no longer so attractive, the enthusiasm of my generation for it is gone. “Brexit” (Britain to make an exit) is threatening unity and constructive cooperation.

Extreme right-wingers shed hot tears and walk the streets in fascist anger to bring back nationalism and poisonous chauvinism, put up fences and walls again, only 30 years after the collapse of the infamous Berlin Wall.

New fascist parties in so many countries refuse entry to political and economic refugees. The “United States of Europe” seems now an unrealistic dream, more remote from reality than ever before. “Make America strong again. We need rearmament and more weapons” is the new slogan, and Russia, while free from Communist tyranny, is still far away from a new democratic order. They long for the old glory of the past which was achieved by endless wars and bloody conflicts.

Asian nations building up an ever bigger arsenal of nuclear weapons to threaten the rest of the world. Are we to invent even more sophisticated and more lethal weapons for Word War Three?

Whether it is the glory of the American Wild West, the superiority of American military technology or the sentimental longing for the return of British imperial glory, nationalism and fascism frighten me.

Nationalist propaganda, noisy and terrifying in so many parts of Europe just now, calls for the dismantling of the European Union in favour of national sovereignty and very selfish policies which undermine the achievement of peace over the last 50 years. It frightens me and spoils my holiday with my sisters and brothers. Our refugee past is always present in our minds, and we can never forget.

Where does this experience leave us in Zimbabwe, in southern Africa and on the continent as a whole? Can we learn something from the failures and political disasters of our neighbours north of the Equator and the Mediterranean Sea?

In four weeks’ time, I will be back in Zimbabwe. Friends and colleagues will ask: What have you brought us? Do I have a good message for them? Nation States obsessed with safeguarding the power of their political class without regard for the common good, and the welfare and prosperity of Africa as a whole, will soon be in violent conflict with each other again. National sovereignty is the idol which we worship, much to the detriment of “united nations and international unions”.

A country that does not respect the sovereignty of its neighbours will not be recognised as a sovereign State itself. If our leaders do not respect the citizens as sovereign owners of the land, and do not preserve their lives, as protected by the Constitution and bill of rights, the country they lead will not have its sovereignty respected and preserved, either.

The vision of African unity and good neighbourliness among nations promises a future full of hope. But nationalistic pride will destroy countries where there is much antagonism and strife between regions and parties. Brexit? No, we want the unity of a prosperous Europe. For us, more weapons systems, more soldiers, more military force will not serve the common good and give our children education and work. Where there is no determination to bring about reconciliation and peace, we cannot hope for workplaces for our children and an adequate income for their future families.

Our future does not lie in Europe, but in ourselves, and salvation will be found in our own Africa. I went to see families and friends. I was not trying to seek refuge in the old country. Neither do I believe that Europe or America are the fulfilment of our dreams.

Our skills and our learning, our intelligence and our creative ideas will transform Africa, not the prosperity found among aliens overseas. I came 50 years ago to bring a new spirit to this country which wants to stand on its own feet again in freedom. I have not given up my project. A “Brexit” closes a door, it does not open new ones.

A united Africa, and a Zimbabwe where we are good neighbours and share our troubles (and do not build walls and put up fences as symbols of mutual hostility), give us confidence, trust and courage.

Europe was devastated, millions having perished on the battle fields, during 100 years of war and bloodshed; peace and unity, for example, in the European Union, restored the old continent in 50 years, admired by the whole world and attracting immigrants from “failed States”.

I hope we can avoid a “Zimexit” and isolation. We should, instead continue reconstruction on the ruins of past wars and heal their wounds.

Fr Oskar Wermter is a social commentator. He writes here in his personal capacity.

Novuyo Seagirl

BY SINDISO DUBE

BULAWAYO House musician Novuyo Seagirl was forced to abort her act after she was booed and pelted off-stage during an Econet Wireless Ziyawa KuEcocash monthly draw at the City Hall car park in Bulawayo on Saturday.

The songbird opened her set with her new song, Bambelela, and when she launched into the award-winning hit, A.E.I.O.U, insults from fans grew louder, forcing the master of ceremonies to intervene and ask the fans to give her time.

Fans calmed down for just a moment before they resumed their rowdy behaviour, leading to Seagirl prematurely ending her act.

This was the second time the musician suffered such a fate in just two months.

“It’s very unfortunate that this is always happening to me, I won’t give up and will keep doing what I love doing. One day, the fans will accept me and also accept our music in Bulawayo. For now, I will stay hopeful and determined. One day, we will strike the right chord,” she told NewsDay Life & Style after the show.

Seagirl was introduced before Jah Prayzah’s act, but from the very moment she stepped onto the stage, irate fans started shouting unprintable words, calling the singer to leave the stage.

Her slot came after performances by Winky D, Mzoe 7 and IYASA.

The last time she was pelted off the stage was at the ZITF shutdown gig at Queens Sports Club, resulting in her angrily insulting the fans and accusing them of not supporting their own local artistes.

Some fans blamed one of the female MCs for hyping up and enticing fans after she said the stage was set for Winky D’s appearrance, yet they were bringing in Seagirl.

“I think one of the female MCs might have misled fans into thinking that they were bringing in Winky D, when they were bringing in Seagirl.

“She (the MC) was heard shouting are you ready for Winky D, sending fans into wild cheers, but thereafter brought in Seagirl, something I think angered the fans, who were expecting the Harare-based artiste,” one of the fans said.

The organisers had to add more Bulawayo acts after the Mthwakazi Republic party wrote to the telecommunications giants, ordering them to call off their gig if Winky D and Jah Prazyah — both of who are from Harare — were going to be the headline acts, without local representation.

BY NUNURAI JENA/JAMES MUONWA

The MDC Alliance has slammed the violence that broke out at the weekend during the Kadoma ward 2 by-election which saw several party activists being injured.

Violence allegedly broke out after suspected Zanu PF activists attacked MDC Alliance supporters using machetes, in full view of police officers.

The opposition party is furious that no arrests have been made following the incident.

Mashonaland West police spokesperson Inspector Clemence Mabgweazara confirmed that Kadoma deputy mayor Tendayi Kokera, one of the victims of the violence, had lodged a report of assault, but no arrests had been made because investigations were still in progress.

“Yes, I can confirm that Kokera made a report at Rimuka Police Station and we have another report of threats, but no arrests have been made as investigations are in progress,” he said.

The MDC Alliance reclaimed the seat after its candidate Svorai Chiwara romped to victory after garnering 780 votes against Zanu PF’s Lloyd Nyambo who polled 361 votes.

The assailants reportedly targeted Kokera, who is also MDC Alliance Mashonaland West vice-chairperson and six party activists, leaving them nursing injuries.
MDC provincial spokesperson, Blessing Mandava condemned the violence.

“We shall never bow down to these bullish antics by a bunch of maggots which are holding this nation to ransom,” he said.

Mandava said the victory was a clear testimony that the electorate had confidence in the Nelson Chamisa-led MDC party.

The seat fell vacant following the imprisonment of councillor Michael Gore, who was convicted of inciting MDC Alliance supporters to torch the Kadoma Zanu PF district offices in protest over fuel price increases that triggered a wave of price hikes of basic commodities early this year.

Chiwara is Gore’s wife.

Kokera, who sustained body injuries from the beatings, alleged that some police officers impounded a vehicle and arrested some youths suspected to be the perpetrators of the bloody clashes.

BY MTHANDAZO NYONI

BULAWAYO City Council (BCC) is struggling to carry out its road maintenance programmes across the city due to the unavailability of fuel and financial resources, a report has revealed.

According to a report by the environmental management and engineering services committee, 70% of Bulawayo’s road network is in bad state and needs urgent attention, but the city council does not have the resources to rehabilitate them.

BCC engineering services director Simela Dube said their efforts to rehabilitate the roads were being constrained by inconsistencies in fuel deliveries.

“Even though there was an allocation of tar from their sources, the deliveries were erratic. Further, road maintenance was affected by fuel shortages. Most of the diesel acquired was being channelled towards water,” the report read.

Initially, Dube said council had agreed to do 5km per ward, but the cash-strapped municipality was, however, unable to meet their promise.

“The budget is limiting progress to only five wards per year, hence the programme will stretch to 2021.”

The report also advised councillors to revisit the programme so that they reduce the roads rehabilitation stretch from the proposed 5km to about 2,5km per ward. That, the report said, would increase the number of wards to be covered per year.

“He (Dube) pointed out that 70% of roads were currently in bad shape and needed urgent attention. The unavailability of diesel was a major constraining factor on all road maintenance programmes.”

Bulawayo needs capital investment to the tune of $69 million annually for the rehabilitation of road infrastructure.

Environmental management and engineering services committee chairperson Alderman Norman Hlabani said the state of the economy was affecting progress on the rehabilitation of roads.

BY Business Reporter

ZIMBABWE’S local currency, the Real Time Gross Settlement (RTGS) dollar, has plunged by 140% to trade at US$1:ZWL$6 on the official interbank market, nearly four months after its introduction in February this year.

The Reserve Bank of Zimbabwe (RBZ) introduced the currency after scrapping the discredited 1:1 dollar peg for the surrogate bond notes and electronic dollars, merging them into a lower-value transitional currency called the RTGS dollar as part of monetary policy measures to address the country’s currency challenges.

The RTGS$ debuted at ZWL$2,5 to the greenback, while on the parallel market the rate was as high as US$1:ZWL$4 back in February. As of Wednesday the black market rate averaged US$1:ZWL$8,70.

Monetary authorities insist that the two markets will eventually converge stressing that there isn’t enough RTGS dollars in circulation to sustain the continued run of the parallel market rate.

Recently, Delta Beverages, which had previously complained of failing to access currency on the interbank market, said the platform had become more liquid and open.

Last Friday, President Emmerson Mnangagwa said the country will have a new currency by year end, adding uncertainty to an already unnerved market.

Most businesses are now pegging their prices in US dollars and use black market rates to calculate RTGS dollar prices.

Mnangagwa’s comments echo Finance minister, Mthuli Ncube’s position who has stressed that the southern African economy needs to regain its monetary policy as a means of dealing with the country’s macro-economic problems.

Following a devastating bout of record-setting hyper-inflation which rendered the country’s currency worthless,in 2009, Zimbabwe adapted the United States dollar and other currencies such as sterling and the South African rand.

BY NUNURAI JENA

About 50 000 pensioners have not received their pension payouts with unclaimed pension funds now amounting to more than ZWL$27 million, the industry regulator has said.

Speaking during a meeting with funds trustees in Chinhoyi yesterday, Insurance and Pension Commission (Ipec) spokesperson, Lloyd Gumbo, said the regulator was worried about the substantial amount that is lying idle while the owners are probably wallowing in abject poverty.

“The commission is concerned with the number of pensioners who do not know that they have money in pension funds, while they are probably suffering,” he said.
Gumbo appealed to all those who contributed pensions in their lifetime to approach pension funds or their former employers.

He said the money will remain with the pension fund for five years and then transferred to the Guadian Fund where it will be kept for 30 years.

Speaking at the same meeting, Zimbabwe Congress of Trade Unions’ health and welfare officer, Nathan Banda, said it was alarming that such a number of pensioners and amount of money remains unclaimed while most pensioners led poor lives.

“In most cases we find out that workers who were contributing all their lives being told that they were not contributing due to poor records keeping and another problem is of employers not forwarding contributions to pension funds,” Banda said.

During the meeting, some workers raised concern over the monthly payouts pensioners were getting considering that their contributions were in United States dollars, but payouts were being made in Real Time Gross Settlement (RTGS) dollars.

Zimbabwe Diamond and Allied Mineral Mine Workers Union representative, Prince Mpala, who attended the same meeting, said inflation had rendered the pensioners’ benefits.

“Our concern is that pensioners who contributed in US$ are now getting their dues in RTGS$ without being rated…there is need to craft policies that protect pensioners in such situations,” Mpala said.

BY VENERANDA LANGA

SECRETARY for Lands and Agriculture Ringson Chitsiko was yesterday taken to task in Parliament over a spate of fresh farm invasions, including the one in which Manicaland Provincial Affairs minister Ellen Gwaradzimba’s son attempted to grab a Chipinge coffee plantation owned by a retired Swiss banker, Richard Le Vieux.

Chitsiko was grilled after he appeared before the Lands Parliamentary Portfolio Committee where MPs wanted to know why Gwaradzimba’s son Rememberance Mbudzana occupied Le Vieux’s farm, which exports coffee, avocados and macadamia nuts, bringing in the much-needed foreign currency.

Confirming that indeed Mbudzana was indeed allocated Plot 1 of Farfell Coffee Estates, Chitsiko said: “What happens is that an offer letter might be given to an individual, but in due course, it is realised that, in fact, such offer letter should not have been given. The process of reversing is that the holder of the unintended offer letter is given notice to withdraw and should respond within seven days, but in this case (of Mbudzana), it was not a case of illegal resettlement and the individual in question had an offer letter. The offer letter to Mbudzana must have been issued sometime at the beginning of this year.”

Chitsiko also added that applications were made at provincial level and then signed by the Lands minister. He said in the case of Mbudzana, he was offered the land by the Manicaland provincial lands committee.

But Mount Darwin West MP Barnwell Seremwe (Zanu PF) and Chipinge East MP Matewu Mlambo (MDC Alliance) said the manner in which Mbudzana was given the offer letter should be investigated to find out if he was the first on the waiting list or if it was because he was the son of a minister.

Chitsiko said everyone who invaded and occupied land from 2005 to date is being considered as an illegal settler and would be removed.

“Those who occupied land in the years 2000 to 2004 during the period dubbed jambanja do not hold legal permits, but we are now regularising those. But unsanctioned settlements on land from 2005 to date are considered as illegal settlers and will be removed,” he said.

According to Chitsiko some people resettled themselves in villagised models (A1) and A2 resettlements without authorisation and, in some cases, encroached into grazing land or reserved open spaces, which has resulted in a lot of pressure on natural resources causing soil erosion, loss of vegetation and siltation of rivers and dams.