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Archive for the 'Economy' Category

Political power in Zimbabwe is about acquiring and retaining wealth

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Wednesday, July 25th, 2012 by Bev Clark

An interview with Farai Maguwu, the director of the Center for Research and Development (CRD).

Could you explain who currently controls the diamond industry in Zimbabwe? How is this source of wealth likely to factor into the upcoming national elections?

The official view is that all mining is done through joint-venture partnerships between the Zimbabwean government and private enterprises. However, in practice there are several private companies involved in mining activities in the Marange diamond field. For instance, the deputy mines minister recently revealed that Anjin Investments, which is by far the biggest diamond mining company in Marange, is controlled 50 percent by the Chinese, 40 percent by the Zimbabwe National Army through its subsidiary company Zimbabwe Defense Industries (ZDI), and 10 percent by another company linked to the army. This militarization of the extractive sector in Zimbabwe, where the generals have become company directors and shareholders on behalf of the government, is extremely worrying.

More from Freedom House

Travel 100ks to sort out a bill?

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Friday, July 13th, 2012 by Bev Clark

Community Radio Harare included this article in their latest newsletter, Talking Harare:

Some Norton residents are travelling 100km to Kadoma in a bid to resolve ZESA’s disputed estimated bills. An investigation by Talking Harare following a tip-off from Harare Residents Trust (HRT) showed that some households in Katanga, Knowe and Govans are receiving monthly ZESA bills of about $100.

If they approach the local ZESA office they are being asked to go to Kadoma where the ‘responsible District offices’ that have the authority to deal with such queries are located.

Kadoma is about 100km from Norton and residents have to pay $10 for transport alone and this does not guarantee them the reversal of the high bills. Residents who have been affected by this anomaly told Talking Harare that sometimes they are forced to make several trips to Kadoma and no solution is offered.

Others said they end up paying the high bills fearing to be disconnected of electricity or ending up spending more money.

In Knowe suburb, residents are also complaining that each household is being forced to pay US$2 as education levy to the Norton Town Council, irrespective of whether or not one has a child attending council school.

Selective Application of the Indigenization Policy

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Friday, July 13th, 2012 by Bev Clark

Excerpted from the Southern African Parliamentary Support Trust bulletin number 31:

Selective Application of the Indigenization Policy

Hon Fani Munengami (MDC-T Glen View North) enquired on whether it was government policy to apply the Indigenization Act selectively as Chinese companies appeared to be spared as evidenced by ZIMASCO in which the Chinese had 73% ownership. The House was informed that the law was not being applied selectively and ZIMASCO had submitted its proposal even though management was arguing for exemption on the basis that Chinese were friends of Zimbabwe.

Should they go, or should they stay?

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Friday, July 13th, 2012 by Bev Clark

A comment from the streets on the lifting of sanctions:

The EU has decided to lift targeted sanctions imposed on Mugabe and his cronies? No doubt to become major players in the economic life of Zimbabwe, no doubt to vie with the Chinese in resource plunder. Right time 4 them but betrayal for Zimbabwe. Oil the Zanu-PF machine and what future 4 democracy with a rejuvenated gerontocracy. With friends like these… truly sad. – Samir

ZESA’s woes worsen

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Tuesday, July 10th, 2012 by Amanda Atwood

Three headlines in today’s Herald newspaper paint a dark (sorry) picture for Zimbabwe Electricity Supply Authority (ZESA), already struggling with electricity demand that far outstrips supply, and frustrated customers who believe ZESA over charges them on bills – and under delivers on power.

  • ZESA takes PM’s brother to court over bill (He’s certainly not the only one who hasn’t been paying,and ZESA complains that unpaid bills is part of why they can’t deliver service.
  • ZESA workers threaten to switch off power (The lowest paid ZESA worker currently earns just $190 / month. They argue management has received pay increments, but not lower grade employees)
  • Debt cripples Kariba Power Station ($21 million in debt, with $7.5 million in interest. Ouch. Meanwhile, outdated equipment at the power station runs up ever higher maintenance and repair bills.)

Global Witness Report: Financing a Parallel Government?

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Tuesday, June 26th, 2012 by Bev Clark

New report by Global Witness:

Financing a Parallel Government?
The involvement of the secret police and military in Zimbabwe’s diamond, cotton and property sectors

Global Witness has run pioneering campaigns against natural resource-related conflict and corruption and associated environmental and human rights abuses. Their work has revealed how, rather than benefiting a country’s citizens, abundant timber, diamonds, minerals, oil and other natural resources can incentivise corruption, destabilise governments, and lead to war.

The latest Global Witness report reveals how Zimbabwe’s feared secret police, the Central Intelligence Organisation (CIO), appears to have received off-budget financing from Sam Pa, a businessman based in Hong Kong; and how members of the CIO are directors of a group of companies, Sino Zimbabwe Development, registered in Zimbabwe, Singapore and the British Virgin Islands.

The report also exposes how a Zimbabwean military lawyer owns half of Anjin Investments (Pvt) Ltd, the biggest diamond company in Zimbabwe’s controversial Marange diamond fields, on behalf of Zimbabwe’s Ministry of Defence.

Access the Global Witness Report online here