Kubatana.net ~ an online community of Zimbabwean activists

Archive for the 'Economy' Category

Revenue from diamond sales is the people’s money

del.icio.us TRACK TOP
Tuesday, November 8th, 2011 by Bev Clark

Most likely Zanu PF will use the revenue from diamond sales to fund their election campaign, and all the violence that will go with it. Their lavish lifestyles also need to be maintained (at the very least). Yeah folks, Zimbabwe was liberated, didn’t yer know.

The Committee of the Peoples Charter recently issued their list of the top 7 priorities for Zimbabwe’s diamond revenue – see below. And Takura Zhangazha has warned against creating ‘diamond oligarchs’ in Zimbabwe.

Committee of the Peoples Charter (CPC) Press Statement On Seven (7) Priorities For Zimbabwe’s Diamond Revenue

The Committee of the Peoples Charter (CPC) notes the recent statements made by the Minister of Mines, Mr. Obert Mpofu on the recent Kimberly Process meeting in the Democratic Republic of Congo (DRC) at which Zimbabwe was given the go-ahead to sell diamonds from Marange to world markets at competitive prices. The Honourable Minister’s announcement that Zimbabwe will be able to make an estimated gross amount of US$2 billion per annum from these diamond sales is a matter that should be further explained with particular respect to the national fiscus and the intended priorities as to how this revenue should be utilized for the public good.

This is particularly important and urgent due to the fact that the Ministry of Finance will present the 2012 national budget this month. It is therefore imperative that this potential revenue be factored into Finance Minister Tendai Biti’s budget for 2012.

In this regard, it is the CPC’s firm view that the revenue acquired by the state via the sale of diamonds must be directed toward the following priority areas of our national economy:

1. The establishment of a social welfare and social benefit grants system for unemployed citizens, women, physically challenged citizens, the elderly and socially/economically disadvantaged children/minors.
2. The reintroduction of free primary school education and the subsidization of all government secondary schools in relation
3. The re-introduction of state subsidized and guaranteed student grants and loans for all tertiary level students
4. The provision of free healthcare for all together with the modernization of all of our referral and provincial hospitals through the purchase of the relevant equipment
5. The refurbishment of our railway lines, trains and coaches to provide public transport for both rural and urban areas.
6. The completion of the dualisation of the Harare-Bulawayo; Harare-Beitbridge highways.
7. The provision of clean and safe water for all citizens through the refurbishment of all urban water supply systems and the expansion of borehole water availability in all rural areas, together with the completion of the Matebeleland – Zambezi Water Project.

Where the government fails to commit diamond revenue to these six priority areas, it will be a travesty of social and economic justice. The CPC will be tracking the usage of this revenue with the intention of bringing the government to account and in order to curb corruption as well as the misplacement of priorities by the government.

Different strokes for different folks

del.icio.us TRACK TOP
Friday, October 28th, 2011 by Marko Phiri

Bulawayo residents held a “peaceful march” yesterday to protest against Zesa for what we already know is lousy service. No police to beat up the marchers apparently. Here is the catch as later reported on national radio: the marchers demanded the resignation of the Parastatals minister and his energy colleague. It ain’t no coincidence that they both belong to the PM’s MDC. Now juxtapose that with previous marches by WOZA protesting about the same bloody shoddy service. One August  headline screamed “28 arrests in Woza demo over Zesa bill.”

And we all know whose resignation WOZA has always demanded!

Too much wealth in too few hands

del.icio.us TRACK TOP
Thursday, October 27th, 2011 by Bev Clark

I think many Zimbabweans feel the same.

This is a banner from Occupy Durham, building on the momentum generated from the Occupy Wall Street movement.

Capitalist N*ggers

del.icio.us TRACK TOP
Wednesday, October 26th, 2011 by Marko Phiri

So, they are at it again, the capitalist n*ggers [apologies to Chika Onyeani, author of the book by the same name], wearing black empowerment caps but having nefarious self-aggrandising hearts. Someone Tweeted the other day about how Robert Mugabe inspired the spirit of hard work in Zimbabwe, but the twit neglected to mention it is economic mismanagement that inspired the so-called hard work that has earned and turned many into veritable entrepreneurs. We all know that there is nothing like “hard work pays” in Zimbabwe, you just have to listen to the stories of the few men and women still in formal employment who have locked up managers, beaten up company executives because of the unpaid hard work they put in but at the end of the month take mouthfuls home empty promises. It is no wonder then that when you talk to anyone, virtually all poor Zimbabweans have dreams about waking up in the morning with stupendous wealth, and this is writ large when you follow the dogfight emerging from the black empowerment band wagon. Argghh, the pomposity with which some of these capitalist n*ggers speaketh.

You just have to recall the visit to the United States a few months ago where the empowerment crusade was taken, and you could see this former journalist dude speaking as if he had all the answers about anything, yet today a firebrand jailbird is giving it to him claiming missing dosh, thanks to these unsanctioned foreign jaunts. It was US acting President Ronald Regean [he was a former actor you see] whose wisecracks have become stuff of legend who quipped, “Hard work never killed anyone, but I figure, why take the chance.” Exactly. No hard work, just claim your economic birth right as a black Zimbabwean and you got it made. It will be recalled the “deposed” AAG president said it loud and proud that Zimbabwean folks gotta strike now for the indigenisation drive will not last forever, “don’t say we will come home to invest when thing are all right, the time is now,” the Muezzin bellowed from the roof tops. Everyone has come to know all claims to black empowerment in the name of spread wealth to the poor is nothing but a smokescreen for government officials and their associates to strip the land of its wealth. You just have to look at the community trusts created in mining areas that have been riddled with controversy as government officials fall over each other depriving toothless grannies of at their right to tea with milk and bread with butter in their twilight years. And what do you know, these are the same people who still insist it is these same grannies who will vote for them in the next election! Upfumi kuvhanu, perhaps the worst misnomer to emerge in Zimbabwe’s post-independence discourse.

Freebies for all

del.icio.us TRACK TOP
Tuesday, October 11th, 2011 by Natasha Msonza

Parallels can be drawn between the 1997 cash payouts to the war veterans and the recent disbursement of ‘youth development funds’ to the youth in Zimbabwe. The objectives of both programmes were to ‘economically empower’ ordinary citizens. While the war veteran payouts were just that, the YDF loans to the ‘youth’ are actually expected to be returned at some point. Under pressure from war veterans demanding payment for their role in the liberation struggle, President Robert Mugabe ordered unbudgeted payouts of 50,000 to each. The local dollar subsequently fell 71.5 percent against the greenback while the stock market crashed by 46 percent as investors rushed for the US dollar.

These unplanned payouts to war veterans went down the annals of history as the event that marked the beginning of the collapse of the country’s economy.

The ‘loans’ recently awarded to selected ‘youth’ in Zimbabwe may not accomplish glory of a similar magnitude, but what may follow can be anyone’s guess.

In the spirit of economically empowering the youth in Zimbabwe, the government – through the Ministry of Indigenisation and Empowerment – availed funds to be used in bettering the lives of youth through income generating projects. The funds are being managed through CBZ Bank, and insurance giant Old Mutual is part of a $10 million grant deal to the YDF. It is a big wonder what made the company agree to such an arrangement which stands to undermine its financial position. When companies like Old Mutual start to simply give away their net worth as gifts, we should get worried. But perhaps it is a clever way to escape the 51% remission guillotine.

In the YDF programme, there is no recovery plan, no obligation, and no collateral – just “young people who have benefited from the facility are encouraged to pay back the loans so that the funds can be extended to other eligible youth in revolving mode”. Are you kidding? So the 800+ lucky ‘youth’ whose names were published in recent press releases as beneficiaries are expected to create thriving businesses that will in the short term make profits from which the loans will then be paid back so that others can benefit.

There is no stipulated timeline by which the loans should be returned, so technically these are indefinite loans. There are just too many holes in this programme. As economist Erich Bloch would say it; the indigenization issue is being handled with a “total disregard for all economic fundamentals or principles.”

This could well be a grand scheme by some well placed individuals to throw away populist money and obtain a few kick-backs in the process. Can imagine obscure groups like Upfumi Kuvadiki getting such loans and actually being expected to pay them back, laugh out loud. We are assured that there are no ‘ghosts’ on the beneficiary list. Probably. I personally know someone whose name appeared on that list. To the best of my knowledge and without being judgmental, this person has plans to purchase a residential stand, possesses no entrepreneurial skills and actually got a consultant to develop his business plan that got him the loan. He wouldn’t say exactly how much he is going to get, but he invited me to ‘also apply and stop being jealous and missing out’.

The requirements are that you just fill in a form, submit a business plan, company registration document, identification documents and Bob’s your uncle, literally. You also need to prove that you are ‘legally constituted’ in a partnership; and if you are not, you are expected to ensure this happens within three months after receiving the loan (why bother then?).

Am I missing something here? Or perhaps I am just being jealous? Well, if you can’t beat em join em hey?

This is Zimbabwe.

What’s a fair wage in Zimbabwe?

del.icio.us TRACK TOP
Thursday, October 6th, 2011 by Bev Clark

I feel these gazetted wages are fair on the employee as these domestic workers deserve the best as well. One thing people should realise is out there in SA, the States, Britain etc, hama dzedu mamiads and they have been sending money back home & they tell you kuti ndirikutambira zvinoenderana neni. Isusu muno muZim we feel a maid mumwe munhuwo tinomuoona as a second class citizen. These domestic workers are abused mudzimba umo & on top of that opihwa mari shoma. On the other hand these gazetted wages are not fair on the employer because, the monthly salaries that people are earnign are not enough. One can’t spare a $100 on a maid then arnd $100 for ZESA then another $100 on your water bills yave marii, $300, tell me who can afford to dispose such huge amounts on a monthly basis, apa hatina kutaura rent coz majority of the people are tenants. The equation is just not working out. Hameno ministry of labour kuti ukufugnei but I feel they should adjust these salaries across the board, munhu wese needs an increment.
- Sandra, Kubatana subscriber

In the last edition of our Kubatana newsletter we included the recently gazetted wage increases for domestic workers in Zimbabwe. Pretty much unlivable wages don’t you think?

But the response that we got was unanimous in saying that wages are so low across the board that its unsurprising that employers can’t afford to pay domestic workers more. What do you think?

Government has set wages and conditions of service for domestic workers in a move that will result in the highest-paid such worker earning $100 per month. The new wages and working conditions were approved by Cabinet recently and are with effect from October

Domestic workers – including child minders, cooks and gardeners – will now be paid between $85 and $100. Workers not residing with their employers are now entitled to accommodation, transport, electricity and fuel or cooking allowances. A yard worker or gardener will now get $85 per month or a weekly wage of $19,60, while a cook or housekeeper is now entitled to $90 per month or $20,79 per week.

Those domestic workers looking after the disabled had their wages pegged at $95 per month or $21,94 per week.

Some domestic workers with Red Cross certificates or similar qualification who take care of the disabled and the aged are paid $100 or $23,10 per week. Those who do not stay with their employers are now entitled to monthly allowances of $50 accommodation, $26 for transport, $5 for lights, $5 for fuel or cooking and $5 for water.

~ An extract from The Herald, 29 September 2011