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Zim debts, acid test to Chinese friendship

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Guest column: Paidamoyo Muzulu

ZIMBABWE rarely hosts high-profile guests, especially from the big political and economic powerhouses. However, last weekend was exceptional as Chinese top diplomat Wang Yi was in town on official business that has remained secretive, except a few comments that the two countries are working on strengthening their relations.

This visit is significant in more ways than one. It marked the first high-profile guest from China since the November 2017 coup that ousted the late former President Robert Mugabe, ushering in a new — not so new dispensation that was underwritten by China and the United Kingdom.

In the past decade, Zimbabwe was a beneficiary of Chinese generosity during Mugabe’s turbulent reign that had left the southern Africa nation a pariah State, with no meaningful economic relations with European Union (EU) nations and the United States. China stepped in to fill the breach, pumping in about US$2,2 billion in concessionary loans for infrastructure development.

The Chinese have funded the expansion of the Robert Gabriel Mugabe and Victorial Falls international airports, Kariba South and Hwange power stations, NetOne expansion and the flagship National Defence College.

The cherry on top of this grandiose generosity was the Mahusekwa District Hospital, Bindura High School and the new Parliament Building in Mt Hampden, which were all implemented for free, so we are told.

Yi’s visit came at a time Zimbabwe has been making the waves on privatisation of State resources – minerals and parastatals. Naturally, China, as the all-weather friend, expected a slice of the cake, but Zimbabwean leaders have been bitting the hand that fed them. The lucrative Darwendale platinum project was dished out to the Russians, Chiadzwa diamond fields (that has been used as collateral for Victoria Falls International Airport and the National Defence College) had been nationalised and Chinese firms kicked-out.

The Chinese, for now, have also been locked out of the National Railways of Zimbabwe, NetOne and Zupco partial privatisations. This has been done despite that the Chinese under the Belt Road Initiative have put in a lot of money (US$60 billion) on the table for infrastructure development in Africa. The Zimbabwe regime has kept a blackout on its management of the Chinese debt.

An issue that Parliament never debates in detail, despite the fact that the Finance minister tables the Appropriation Bill each year on the country’s income and expenditure. Tucked in there are the sovereign debts and when they are due.
For those who can read, Zimbabwe’s debts to China are now due after the seven-year grace period. Zimbabwe has to cough up the moola, reschedule the repayment plan or alternatively mortgage more minerals and fire-sale some State enterprises.

These are hard decisions, but the reality is that the Chinese at this point have all the aces. The State-controlled daily, The Herald, had a telling paragraph on the front page of its Tuesday edition: “Minister (Mthuli) Ncube said due to the difficulties of having to service debts and liabilities for Chinese investments into Zimbabwe, they had entered into a currency swap arrangement deal.”

This is a telling sign, an issue that the Budget and Finance Portfolio Committee or even the National Assembly should pursue with urgency. The Constitution is very clear that international agreements and debts should be approved by the House.

Having the agreement tabled in the House would allow the nation to know the exact details of the agreement.

For now, we have to rely on speculation and conjecture.

@Jamwanda2, the Twitter handle supposedly owned by Presidential spokesman George Charamba, on Sunday tweeted, “Among projects discussed was the Batoka Hydro-Electric Project to be sponsored jointly with Zambia and to be executed by Sino-Hydro in partnership with General Electric. The project, once completed, will leave Zimbabwe in a power surplus position.”

As earlier alluded, Zimbabwe has re-opened the Batoka tender for the Chinese, taking a significant chunk of the project from the Americans (General Electric). Will this be enough? Probably more of the nuts and bolts will be released in due course.

What one can take away from Yi’s visit is that Zimbabwe has bad negotiators, people who do not share the investment priorities with the nation. A people who believe they know all and they are doing a favour to the God-forsaken citizens of Zimbabwe. Which projects does Zimbabwe need under the Belt and Road Initiative?

If we had a good regime, this opportunity could have been used to negotiate a public-private partnership development of the Greater Harare light rail system.

This would deal with the traffic congestion in the capital once and for all. Ethiopia did the same and Addis Ababa today is better for it.

Zimbabwe could have negotiated a deal to have the Chinese have a slice of the pie in the Willowvale Mazda Motor Industry and started producing minibuses and conventional buses for the domestic market and export into Sadc. The country’s central position gives it an advantage just as much as its educated labour force.

To negotiate smarter, Zimbabwe has to deal with the elephant in the room; its unsustainable debt with every credible creditor be it the EU, African Development Bank and the Bretton Woods Institutions where the country’s debts are all in arrears. We wait to see how Zimbabwe manoeuvres out of this one.

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

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Zim songbird eyes top British award

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BY CHELSEA MUSAFARE

UNITED KINGDOM-BASED gospel songstress Nursel Masuka-Mandiopera, who goes by the moniker Nursel Light, has been nominated for an award at the debut edition of the Zimbabwe British Entertainment Awards (Zimbrits) set for February 1 in Birmingham, United Kingdom.

The Zimbrits awards, an initiative to appreciate Zimbabweans who are in the UK diaspora, are meant to unite players in the entertainment industry and highlight their successes.

According to the nominees’ list released by the organisers, Nursel will battle it out with fellow musicians Sharon Manatsa, Obert Mazivisa, Jane Doka and Timothy Ngwenya for the Gospel Artiste of the Year gong.

Speaking to NewsDay Life & Style yesterday, Nursel expressed gratitude for being nominated among talented musicians.

“I feel humbled and honoured to be nominated alongside great, experienced and talented artistes who have been in the music industry for a longer time than myself. I keep learning from them. I am grateful, excited and looking forward to the event,” she said.

Nursel, who will be performing during the awards night, said this year she would tour more and churn out more songs.

“My resolutions for the year are to pass my message of God’s love, hope and joy through my music so that it will reach the entire world. I will be releasing a new video coming out this quarter and more songs and videos throughout the year,” she said.

On the projects that are in the pipeline, the gospel artiste said she will be part of an autism awareness and fundraising event to be held in Bolton early next year.

“The African gala dinner is an autism awareness and fundraising event held every year to service autistic children and their families in Africa. These children have a broad range of conditions characterised by challenges with social skills, repetitive behaviours, speech and non-verbal communication. The event will have live music and African cuisine. I will also be performing at the event alongside other four artistes,” she said.

Nursel, who released a four-track extended play (EP) last month titled Living in Victory, quit her job with a top UK vehicle-manufacturing company to pursue her music career. Her music has both traditional and contemporary styles.

The mother of two, who is married to Bernard Mandiopera, is also a member of the praise and worship team at her church.

Mahendere hints on new album

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BY FREEMAN MAKOPA

CELEBRATED gospel musician Michael “Minister” Mahendere has hinted on a new album titled The Secret Place of Worship scheduled for release in March this year.

The Zvichanaka hitmaker told NewsDay Life & Style that the new offering will be for moments of meditation, adding that it carries a message of hope.

“The Secret Place of Worship is more of an ‘alone time’ with God. It’s a project for those moments of communion between the God Almighty and the creation. It’s a project for those moments of meditation.

“The album carries a message of hope and direction in those moments you might not know what to say in prayer,” he said, adding that the new offering will be targeted at all age groups.

“It targets everyone. There is a song for everyone on this album, but for those who enjoy being in the presence of God, this will be a great addition to your music library.”

Mahendere said besides the new project, he has also lined up collaborations with artistes from three different African countries.

“We are still finalising on the collaborations with some guys from Nigeria, Ghana and South Africa. Of course, in 2020 we will be travelling more again. As I said, I wouldn’t want to spoil the surprise, but maybe you’ll see some collaborations with some of the guys from Nigeria,” he said.

Editorial Comment: NRZ guards have woken up a little late

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Editorial Comment

VIGILANCE and swift action by the National Railways of Zimbabwe (NRZ) security guards who recently arrested copper cable thieves in Chegutu and Gweru should be commended.

Thieves and vandals who are busy looting and destroying the little infrastructure left in our troubled land should be arrested and sentenced to rot in jail.

However, it is quite distressing that the NRZ security personnel are only waking up in 2020, decades after thousands of kilometres of cables, as well as other infrastructure vanished under their very watch.

Once upon a time, this now miserable country had electric trains plying the Harare-Gweru route with plans to extend the service to Bulawayo. But organised theft of the cables that powered the electric trains saw the entire more than 300km cables disappear, starting from Harare’s main train station to Gweru’s busy Dabuka shunting junction.

As far as we can recall, not even a single person was ever arrested for the theft, yet the NRZ guards now want to walk with an exaggerated gait, nose pointing to the sky and appearing to be heroes and giving the impression that they are doing sterling work.

Where were they when theft was so rife that it reduced the rail entity into the shell it is today?

It is more than dumbfounding that more than 300km of overhead cables disappeared without trace and yet today the NRZ guards want to act as if they are vigilant.

Unless they want to tell Zimbabweans that all their problems are political.

In all honesty, the cable thieves who these guards are now arresting could be scavenging for the last few strands of copper wire left after the bulk of the parastatal’s wires were looted long back.

Many years ago, we used to be told that train operations were constantly being interrupted by cable vandals, meaning that there are few to none copper cables left along the country’s entire railway line system. In our view, the NRZ guards have woken up a little too late for us to give them a pat on the back.

And as we speak, lengths of railway lines are being looted at sidings of long-distance routes to farms and mining areas.

Wagons are also being stripped bare by thieves. It is even laughable that the parastatal still believes it has security to protect its infrastructure.

Chiwenga divorce opens can of worms

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BY CHARLES LAITON

VICE-PRESIDENT Constantino Chiwenga (pictured)’s divorce proceedings has opened a can of worms with the retired army general disclosing graphic details of how his estranged wife, Marry Chiwenga (nee Mubaiwa), allegedly consulted witchdoctors and sprayed unknown substances on his clothes as she tried to kill him and inherit his vast property empire.

The VP opened the lid on their acrimonious fallout while responding to Marry’s court application where she sought unfettered access to the couple’s three minor children, top-of-the-range vehicles and their matrimonial Borrowdale house. He also claimed Marry, who he customarily married following his divorce with Jocelyn, was “a drug addict”.

“Applicant (Marry) is a very dangerous person who basically wanted to liquidate me (Chiwenga) from the face of this earth. Possibly what saved me was failure on my part to sign a marriage certificate due to incapacity, which if done would have been my passport to death as her possible wish to self-aggrandisement would have been achieved,” Chiwenga said in his founding affidavit.

“While I went out of the country for treatment it has since transpired that applicant’s actions caused my illness, leading to attempted murder charges against her.”

He also claimed to have become aware that Marry had been using “juju” on him when he returned to his Borrowdale residence just after her arrest late last year by the Zimbabwe Anti-Corruption Commission (Zacc) on several allegations – among them externalisation of funds and money laundering.

“It became incumbent on the respondent (Chiwenga) to take the children. I took them on holiday abroad and initially they had signs of trauma as they explained the black magic rituals they were subjected to by the applicant,” Chiwenga said.

“The various tools of trade used by the witchdoctors which were unexpectedly left behind by the applicant after her arrest told a horror story. My clothes in some instances were heaped together and sprayed by applicant with some unknown substance. I had to take the children away to cleanse the memories of the horrors they experienced…witchcraft was all over the house, it is embarrassing in this day and age.”

General (retired) Chiwenga urged the court to revoke Marry’s $50 000 bail granted by the High Court last week, saying she had supplied the court with false information pertaining to her diplomatic passports and her current place of residence.

“Number 614 Nick Price Drive, Borrowdale, Harare is my house of sentimental value awarded to me by High Court judge Justice Mutema. I have no other home,” he said.

“When I came back from China I had no other home to go to. I went there after the arrest of the applicant and have been staying thereat. I am a State witness and in other charges I am a complainant. She surely cannot stay where I am staying. Since her release from prison, she is staying somewhere in one of her houses. She must stay there so as not to interfere with a State witness and a complainant.”

The Vice-President added: “She is one of the causes of the predicament I endured in India, South Africa and China leading to her being barred to visit me in China.”
He claimed Marry had two diplomatic passports.

“She has surrendered one diplomatic passport, yet she has two. She is not a candid person. By lying she should have her bail revoked….applicant has become a dangerous person to me and by extension to the children,” Chiwenga said.

Chiwenga said Marry only owns a Range Rover (Autobiography) and other vehicles in South Africa but the rest of the cars she wanted to lay her hands on were owned by the State.

“Again and furthermore, I note that the ancillary relief sought is for vehicles and clothes, which vehicles do not belong to her but to the State. The certificate of urgency does not state how she acquired and came to own six vehicles belonging to the State, some of which were my package from the army when I left to enter political office,” he said.

“The Toyota Lexus belongs to the respondent allocated to him (Chiwenga) under the Command Agriculture programme, to supervise the programme countrywide. Mercedes Benz S400 is a Ministry of Defence vehicle purchased for use by the respondent when he was Commander Defence Forces (CDF).

Chiwenga said Marry was not suitable to be granted custody of the couple’s children.

“There is evidence to suggest that the applicant is unfit to look after the children. While this is a subject of another hearing, Annexure D herein attached to her bail application shows how unfit she is to have custody. The medical affidavit on page 12 is very clear. The doctor concluded that she should be under the care of a physician, a surgeon and a psychiatrist,” he said.

“It is indicated that she has flashbacks, suffers from lack of sleep and has difficulty breathing, symptoms of illicit drug abuse. This abuse also caused swollen limbs and arms due to pricking needles. Applicant cannot be trusted with children in the circumstances.”

The matter is pending.

Is Bitcoin Really Getting Expensive in Zimbabwe?

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Some reports suggest that Zimbabweans would have to pay US$76,000 to get their hands on just one bitcoin. But is that true and what’s the real story?For anyone trying to keep up with the tremors and earthquakes in the crypto world, they could be led to believe that Zimbabwe is a pending fintech hub. Cryptocurrency in Africa is interesting because it has a real possibility to make a significant change, giving banking access to mass populations often denied financial services – and a chance to improve the economy.

Zimbabwe also falls within this category because its economy is flailing with repeated bouts of inflation. Cryptocurrency has significant potential in the country and many locals have realised that, especially now that foreign currencies have become banned – more on that below.

Lots of Zimbabweans use exchanges like Luno to own a bitcoin wallet and acquire their bitcoin via their platform, but having reliable services is not enough to prevent barriers to participation because the latest reports are suggesting traders are seeking over $50,000 to sell locals just one BTC. So, is this true and what’s the story behind it?

A Background on Zimbabwe and Money

In 2009, Zimbabwe, Zimbabwe abandoned its local fiat currency the Zimbabwe dollar (Z$) and chose to use both the South African Rand and the US dollar. This was because of hyperinflation. In fact, at the time of scrapping the Z$, it was worth so little that you would need around 35 quadrillion of them to buy a single US$.

Due to these changes, Zimbabwe largely became a cashless society and technology was needed to manage the flow of monies. This has also helped it take well to cryptocurrency as most locals already have a habit of using apps to manage their finances.

In February 2019, there was another shift with all electronic money becoming RTGS, which has since become the new official Zimbabwe dollar. As a result, Zimbabwe has tried to protect its new official currency by banning trading with foreign currencies, including the US dollar.

This has resulted in national protests because locals do not trust a local fiat currency and often choose to seek shelter with cryptocurrencies.

So, Is Bitcoin Really That Expensive in Zimbabwe Now?

The answer is yes and no. There have been screengrabs and people sharing stories on social media of traders seeking astronomical amounts to sell their Bitcoin in Zimbabwe. One particular screengrab shows the price set at US$76,000 – a 600% premium rise.

Yet, numbers like these are not a genuine reflection of premiums that Zimbabweans have been subject to. Moreover, this is inflation which will not be recognised by the local government. It can also be argued that talk of 600% premium rates is a reflection of the USD black market rate that is being held in EcoCash as the government has frankly made this worthless.

Zimbabwean crypto fans should not expect to have to pay these astronomical fees to purchase bitcoin in the future, which will enable the nation to continue its progress within the bitcoin movement.

Gold miners demand 80% payments in US$

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by Stephen Chadenga

SMALL and medium-scale gold miners are now demanding that at least 80% of their gold sales to the central bank be paid for in the more stable United States dollar to enable them to sustain their operations.

Confederation of Zimbabwe Miners (CZM) president, Advance Rangani Chauke said such an arrangement would improve the operations of miners since the bulk of their consumables are imported.

“We would prefer a situation whereby we are paid 80% in US dollars and 20% Zimdollar cash for our gold,” Chauke told NewsDay Business yesterday.

“Such an arrangement would help us keep afloat as we have to purchase most of our consumables from outside the country. The mining sector contributes a lot in terms of generating foreign currency and we feel government should also cushion us from the costs we incur.”

Recently, the Reserve Bank of Zimbabwe lowered the forex retention threshold for small-scale miners from 70% to 55%.

The central bank argued that the move was largely informed by the fact that traditional sources of US dollar cash had shut their doors on Zimbabwe.

Miners, however, argue that the current retention threshold would cripple miners’ operations.

Gold production subsequently nosedived last year and failed to meet the projected 40 tonnes as players preferred to sell gold at attractive prices offered on the black market.

Zimbabwe, which is endowed with vast natural resources seeks to create a US$12 billion mining industry by 2023.

Under the US$12 billion mining roadmap, gold is expected to contribute US$4 billion, platinum US$3 billion, while chrome, iron, steel diamonds and coal will contribute US$1 billion.

Lithium is expected to contribute US$500 million, while other minerals will contribute US$1,5 billion.

Forex shortages stall NRZ/Russia deal

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BY MTHANDAZO NYONI

FOREIGN currency shortages have reportedly stalled a deal between the National Railways of Zimbabwe (NRZ) and Union Wagons of Russia (UWR) for the supply of wagons and locomotives, an official has said.

Last year, NRZ board chairman Martin Dinha told the State media that NRZ had signed the deal with UWR for the supply of 5 000 wagons and 70 locomotives, adding that the first batch of 100 wagons was expected to arrive in the country this month.

However, Dinha was singing a different chorus last week.

“So our dilemma is that we must quickly look for foreign currency to pay for the wagons, the down payment. That’s where we are at the moment. Once we raise the money and pay US$1,5 million, we will secure our first consignment of 100 wagons.”

The deal, according to Dinha, was meant to capacitate NRZ, which currently has only about 3 500 wagons.

At its peak in the 1990s, the company used to move about 14,4 million tonnes of freight against an installed capacity of 18 million.

Last year, it moved a paltry 2,8 million tonnes of freight.

The parastatal requires about US$1,9 billion for its recapitalisation programme and rehabilitation of its track, information communication technology and acquisition of new wagons and locomotives.

Previous efforts to revamp the rail transporter failed to bear fruit due to lack of seriousness on the part of the major shareholder — government.

Last year, government cancelled a US$400 million NRZ recapitalisation programme signed two years ago between NRZ and the Diaspora Infrastructure Development Group after the latter reportedly failed to comply with contractual timelines.

Meanwhile, NRZ general manager Lewis Mukwada said the parastatal grossed more than $400 million in revenue in 2019 after moving about 2,8 million tonnes of freight.

“In terms of volumes, we have been on an upward trend. We did 2,7 million tonnes in 2016; 3,1 million in 2017 and 3,4 million in 2018 and last year we had expected to maintain that trajectory, but we ran into a number of challenges,” he said.

“Our performance is down to about 2,7 or 2,8 million tonnes. We are still finalising the figures, but we have regressed in terms of the previous trajectory that we have been following. Financially, in terms of our projections, subject to confirmation by external auditors once our accounts have been audited, on total revenue we are looking at over $400 million,” he said.

Mukwada said total expenditure, without exchange losses, was $388 million.

“Previously, we have been trading in the negative in terms of gross profit. Last year we had a gross profit rate of 27%, but there are quite a number of distortions that come with inflation.”

Court quashes man’s 12-year jail sentence

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BY Nkululeko Sibanda

BULAWAYO High Court judge, Justice Thompson Mabhikwa has freed a 34-year-old city man who was in 2016 slapped with a 12-year jail term on 49 counts of fraud.

In his judgment obtained by NewsDay yesterday, Justice Mabhikwa said that it was “sheer coincidence” that all institutions that claimed to have received payment from Audriane Ndebele had all issued receipts which had been presented in the lower court and said to be fake.

“In a long judgment, the trial magistrate reasoned, in the main, that the complainants are many and varied. They also operate independently. She resolved that apart from the utility/service providers such as Zesa and the Bulawayo City Council, institutions such as CBZ and Zimra also operate independently of each other,” he said.

“She (the magistrate) thus reasoned that when they all contend that they did not receive the monies supposedly paid to them despite receipts and deposit slips produced by the accused which they all claim do not originate from their institutions, it is more than sheer coincidence.”

Justice Mabhikwa said the High Court was convinced that the evidence produced by the State witnesses was of no evidential value, thus could not build a strong case against Ndebele.

The judge also said that it was surprising that in 14 of the 49 counts, there were no cash slips but the lower court, in its wisdom, saw it fit to jail Ndebele despite the absence of evidence to nail him down.

It was the State case at the time that Ndebele was employed by various complainants as a messenger.

His duties among others included going to the bank to make deposits, making payments at the Zimbabwe Revenue Authority (Zimra) as well as utility bill payments at the Bulawayo City Council on behalf of the complainants.

The State further alleged that in his capacity as a messenger, Ndebele received varying sums of money from a host of complainants for banking and payment of utility bills.

However, the State alleged then that Ndebele, on 49 occasions, converted the money to personal use.

The State averred that Ndebele would, after commission of the said crimes, allegedly present fake receipts which he claimed were proof of payment.

Bulawayo-based lawyer, Maqhawe Mpofu of Samp, Mlaudzi Legal Attorneys represented Ndebele.

‘Lupane courts construction to be completed by year-end’

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BY SILAS NKALA

The Judicial Service Commission (JSC) is working to complete the construction of the Lupane Magistrates Courts by the end of the year while work on the Gwanda Provincial Court has begun after stalling for years due to shortage of funds.

This was revealed by Deputy Chief Justice Elizabeth Gwaunza when she officially opened the 2020 legal year at the Bulawayo High Court on Monday.

“Last year, we embarked on an aggressive infrastructure refurbishment and construction programme as part of our access to justice initiatives. I am happy to report that despite the fiscal pressure which dealt our projects a heavy blow, commendable progress was made at Lupane and Gwanda Magistrates’ Courts,” Justice Gwaunza said.

She said at Lupane, all the preliminary work was finalised and construction commenced during the last half of 2019.

“The progress at the site is very encouraging. At that rate of progress, it is projected that the courthouse will be ready for occupation by the end of 2020,” she said.

“The construction of Gwanda Provincial Court which had stalled during the course of the year under review is back on course.”

She said while the project may not be completed by the end of the year, significant progress is expected to have been made by that time.

Justice Gwaunza lamented that some people in remote rural areas were travelling long distances to access justice as there were no courts close to their places.

“We acknowledge that residents in places such as Bulilima, Insiza, Umguza and Mangwe still travel long distances to access justice. It is a priority for the commission to establish at least one resident court in each district of the country in the not-too-distant future,” she said.

“The decentralisation of the High Court is a continuous process. The commission is currently considering the modalities of implementing the next phase, after Masvingo and Mutare.”