Kubatana.net ~ an online community of Zimbabwean activists

Archive for the 'Economy' Category

Foot in the motor mouth

del.icio.us TRACK TOP
Thursday, January 13th, 2011 by Marko Phiri

“The country’s policies on indigenisation will not be there forever, hence the need to grab the chance now and not wait. There is no reason to wait as opportunities might elude you…the challenge I see with most people is that they want to commit to investing home when things are OK, but when things are OK, there would be no opportunities to talk about,” Affirmative Action Group president Supa Mandiwanzira, Business Chronicle, 11 January 2010.

And when Zanu PF critics say the party goons smelt their exit with the advent of a vibrant political opposition and went on looting overdrive, who will argue when Mandiwanzira openly makes such declarations? If all is okey-dokey it means you have a functioning state with checks and balances that make looting criminal, so strike the iron while it’s hot; use bad laws to create wealth; loot as much as you can such that when good men appear on the horizon to take charge, who gives a shit, coz dude, we got it made!  And the rest of the “lumpen proletariat” who continue to wallow in misery? Well, they empathised with the enemy and chose not to heed the call to arms, that’s what Mandiwanzira and his confederates will say when asked by St. Peter to justify how they got so fabulously wealthy and forgot the old Christian stricture “what does it profit a man…?”

Scouting for money

del.icio.us TRACK TOP
Tuesday, January 11th, 2011 by Elizabeth Nyamuda

The statement below published by the Bulawayo Agenda will be a shocker to many Zimbabweans. If you thought traffic police were chasing after commuter omnibuses to get bribes to line their pockets you might want to think again . . .

Traffic police in Bulawayo have virtually closed all entrances into the city centre from the suburbs. Commuter omnibus crews had to drive around the city in a bid to gain entrance. Some commuters were dropped out of town as crews avoided being arrested by the police, who were on both feet and on patrol vehicles. Some allege that the police have been instructed to raise money for elections, which President Mugabe wants as soon as possible.

(Bulawayo Agenda is a civil society organisation that conducts advocacy on issues of democracy. It is committed to providing an apolitical platform for people to express their views and debate on matters that affect their lives. It has active chapters in Gweru, Gwanda, Plumtree, Victoria Falls, Matopo, Hwange, Binga, Nkayi, Lupane and Tsholotsho.)

New Year Message from Chairman of Zimbabwe Power Company

del.icio.us TRACK TOP
Monday, January 10th, 2011 by Bev Clark

Information on the power situation in Zimbabwe:

1700 hours  8th January 2011

I address this message to users of electricity in Zimbabwe and all other stakeholders who may be interested.

Recent Status of Generation in Zimbabwe
Over the Christmas period the country experienced a much improved availability of power. All six units at Kariba were working as were five of six units at Hwange and Munyati Power Station was generating between 20 and 40 MW. In addition, with much of industry taking a well deserved break, there was additional power on the grid for those customers on line.

Shortly after Christmas one of the, larger, units at Hwange was lost due to failure of certain components. On the 28th of December we had to take out a unit at Kariba for two weeks of routine maintenance. On the night of the 5th January we had to take out a second unit at Kariba which twins with the unit already under maintenance. These two units share a transformer on which components had to be replaced – this was planned for this period.

In summary customers will be experiencing excessive load-shedding in contrast to  the Christmas period, as  there has now been a sharp drop in generation just as industry is coming back to work.

Looking ahead over the next two weeks. Every effort is being made to bring the unit lost at Hwange back to service during this weekend. The fifth unit at Kariba should be on the grid on Monday with the sixth returning to service by mid-January.  This should bring the country back to a “normal load-shedding regime” by the middle of the month.

Looking ahead this year
It is important to advise customers of the realities at Hwange Power Station. The supply out of Hwange remains fragile in spite of significant progress having been made to stabilise supply during 2010. We still need to undertake major works on: the raw water supply line from the Zambezi River, work on the two large raw-water reservoirs at the station is underway; urgent and significant work will be undertaken during the first quarter of this year on the Ash disposal system (a new specialised pipeline has been ordered and is under manufacture).  Further to this, the units themselves at the station need ongoing work to optimise their output. To assist us with this “project related work” as well as to train and mentor staff at the station we have engaged a blended team from India and Zimbabwe under the management of WAPCOS – a highly respected Indian-based organisation in the energy field. This team will be on-station early in February. We are optimistic that there will be a consistency in supply out of Hwange Power Station by the end of the first quarter 2011 followed by a gradual increase through the year.

Kariba Power Station should remain at full capacity except for the isolated occasion when the station is forced into “sudden shut-down” due to exogenous shocks which can occur on the grid – these can emanate from the region or sudden failure of local transmission lines.

All three Small Thermal stations (Harare, Munyati and Bulawayo) will be brought back into service during the first quarter of this year. The cost of generation from these stations is high due to both the distance from the coal fields and, in some cases, the need to use higher quality coal. As a consequence power from these stations can only be sold to those companies who have dedicated power lines and who are willing, and able, to pay the higher tariff. However this additional power will help boost the economy and create additional employment in the process.

Beyond 2011
It is important to note that once we have achieved stability in supply and optimised our present installed-capacity the supply of electricity will still remain below demand. Ongoing efforts are being made to increase the importation of additional power from the region by our sister company, ZETDC. But there is a regional scarcity. In addition our economy will grow and hence demand for electricity. The only way to close this demand-supply gap is to build extra generation capacity, which will take at least three and a half years from the time funding has been secured.

ZPC’s planning and preparation are well advanced such that its can approach relevant investors and/or partners in pursuit of adding capacity at Hwange Power Station (top priority as a  “base-load” station) and Kariba (to add to “peaking demand”). We have the full and emphatic support of our ultimate shareholder to secure investment for the generation sector. In addition we plan, over the next two years, to retrofit the Small Thermals in a bid to increase the energy sent out and lower the costs.

In Closing
I take the opportunity to thank the entire staff of ZPC for their commitment, hard and long hours of work during 2010 – most often with constrained resources. Particular gratitude is extended to those who worked over the Festive Season – day and night. I also extend a note of thanks to our Ministry for their candid, progressive and demanding support.

I thank all our customers for your patience and understanding. I encourage you all to keep paying for the units of electricity that you use. In addition please could we all take all possible measures to reduce our usage – it is good for your pocket and for the Nation.

Best Wishes The Board and management of ZPC are determined to stabalise and increase the generation levels in 2011 to well above those levels achieved in 2010.

I wish you all, users of electricity and the staff of ZESA as a whole, a safe and fulfilled 2011.

R. Maasdorp Chairman ZPC     (chairmanZPC ( @) gmail.com)

Only relevant and constructive emails will be replied to from this address.
All other queries should be directed to the Zesa email address of: pr ( @ ) zesa.net
For daily updates on the generation and load-shedding status visit the home page of www.zesa.co.zw

All sorts of change is needed in Zimbabwe

del.icio.us TRACK TOP
Friday, January 7th, 2011 by Bev Clark

The article below, published by IRIN, will hit a nerve in most Zimbabweans. Treated like shit at the polls, like shit at government institutions such as the passport office, like shit at road blocks by surly, bribe seeking policemen and like shit in shops where retailers run establishments that can’t and won’t work out how to give their customers change.

We’ve all been there . . . accepting the most ridiculous items like 3 minute noodles in lieu of what we really want, and what is owed to us, our change in Money. When I’m out shopping I do my level best to make sure that what I’m buying adds up to a round number. When it doesn’t I pay it backwards, giving my change to the next person in the check out queue. I figure this is better than getting a “credit note” that will get lost, or fade before I get home.

Enough is very much enough:

Short-changed and angry

People in Zimbabwe are becoming angry about the lack of small denominations in circulation and tempers are fraying as a result: A policeman recently shot dead a taxi assistant for failing to give him the correct change.

After the formation of a coalition government in February 2008, the hyperinflation-afflicted economy was dollarized – with the US dollar and South African rand most widely used, but the Botswana pula, the Zambian kwacha and the Mozambican metical also in common use.

To avoid disputes, taxis now give out travel vouchers when they run short of change – and the problem is not just in the transport sector.

Sipho Mpofu, a public sector employee, went grocery shopping last week and was given a brown voucher instead of change. “When I asked them what it was for, they told me that they could not provide me with change and the voucher worth five rand would allow me to use their toilets for free. I threw away the offending piece of paper because I knew I was being ripped off.”

The lack of change angers many consumers, who are now trying to make purchases in round numbers. Shops use items such as tomatoes, matches, eggs, potatoes, candles, bananas, sweets, pens, pencils or vouchers in lieu of change.

Mpofu said the use of “unwanted” grocery items was a “huge inconvenience”.

“Right now I have a huge pile of matches, candles and sweets which I have no use for. In fact, they pose a threat should they be set alight accidentally.” He said he had to hide the sweets from his children.

Financial journalist Paul Nyakazeya said consumers were effectively being forced to buy items they did not want.

“At the end of the day, when calculations are made, it may be discovered that the goods consumers end up taking as change… make up a substantial percentage of their monthly groceries… The best way out of this quagmire for the consumers would be the widespread introduction of an electronic system to purchase commodities.”

But, with frequent power cuts, especially in rural areas, Nyakazeya acknowledged it would be very difficult to make such a system work.

Economist David Mupamhadzi told IRIN the authorities urgently needed to introduce smaller currency denominations, especially for the South African rand: Many service providers round up the bill, making goods and services more expensive, eroding disposable incomes and boosting inflation, he said.

Are Zimbabwe’s diamonds financing Zanu PF’s next election campaign?

del.icio.us TRACK TOP
Friday, December 10th, 2010 by Bev Clark

The US embassy said Marange could be a bonanza for battered Zimbabwe, perhaps generating sales of $1.2bn (£760m) a year. Instead it had become a “curse” . . . The Telegraph following up on WikiLeaks cables on diamonds in Zimbabwe.

A day in the life of …

del.icio.us TRACK TOP
Thursday, December 9th, 2010 by Thandi Mpofu

In an effort to raise awareness for International Human Rights Day (10 December), Elvis Blue, South African Idols 2010 winner joined other celebrities worldwide to support the Barefoot Against Poverty Campaign. Despite his heavy schedule, he leapt at the idea of trading places with someone less fortunate than himself and agreed to experience life as a beggar. In a Press Release issued by Civicus (7 December), Blue understandably described his experience as “the hardest thing” he’d ever done. However, he also found walking in a less fortunate person’s shoes humbling and he believed that he had been made a better person for it.

Today (9/12) is International Anti-Corruption Day and I thought I could mark the day by adopting a concept similar to the Barefoot Campaign. Unlike Blue, I do not delight in the thought of subjecting myself to hardship and so I decided that I’d spend an imaginary day in the fantastic life of a GNU. HON. MP. CDE. & EOS. (Ever Obedient Son).

Not that their jobs are easy. Keeping this country moving forward and away from the detractors’ clutches demands an early start. To ensure that my strength is kept up throughout the day, at 10am I have a large breakfast (which includes a years’ supply of bacon, kindly donated by a friend). My physician (who is so kind as not to charge me for consultations) says is the most important meal of the day. In fact, a look at my form reveals that I consider all my meals important and so they are all justifiably of generous proportions.

I arrive at the office to find a pile of messages and mile-long list of things to do. With over 20 years in office I’ve acquired superior prioritisation skills and immediately get on the phone to touch base with my “father”. As his humble and obedient servant, I owe everything I am to him and I often like to share my good fortunes with him as a token of my gratitude.

The next few hours are spent meeting with or calling my accountant, my bankers, several of my farm managers, numerous business associates to convince them to make some mutually beneficial investments, some friends to thank them for their kind gifts and my realtors who manage all my houses, both big and small.

It’s almost 3pm and I prepare to leave the office to catch a chartered flight (a complimentary gift from a friend) to some remote place where I was scheduled to address some villagers at midday. On my way out, I promptly sign a scathing letter to stingy Kimberly, admonishing her for her cumbersomely correct process. Unlike my friends, she is definitely neither kind nor generous.

It is too late to return to the capital and so I check into a luxury hotel room that has efficient room service and a well-stocked mini-bar (for which I’m not being charged thanks to a good friend). I reflect on the day and am quite satisfied. I’ve accomplished a lot, managing to visit all my enterprises in the area. They are all flourishing due to the overwhelming support from my numerous friends. I was also able to make new friends who are eager to make a contribution to the cause. My address to the villagers went on well and they know what they must do to receive reward. As I fall asleep, I am quite convinced that indeed, I am a heavyweight in this game.