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Archive for the 'Economy' Category

Little hope for the future if we don’t stop repeating the past

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Thursday, September 16th, 2010 by Amanda Atwood

The Economist Group today held a one-day conference on “The Future of Zimbabwe.” The high power meeting brought together business leaders, economists and political analysts to explore the question “When will Zimbabwe see a real recovery.”

One of the panel sessions was on Agriculture and food security, and the panelists included Sam Moyo of the African Institute for Agrarian Studies, and John Worsley-Worswick of Justice for Agriculture.

Ironically, the conference was held just two days after the farm house on Twyford Farm in Chegutu was burnt down. According to a report from the farm:

This farm is protected by a French BIPPA and a High Court order in my favour from 2007 and despite all that, I was ordered on the 18th March 2010 to pack all my belongings and fined $200 for illegally occupying the farm. Since then, my home has not been occupied by Jamaya Muduvuri who has an Offer Letter on Twyford. In February last year 30 thugs, led by Muduvuri, occupied the farm and Muduvuri proceeded to steal all my crops, farming equipment and vehicles. Yesterday he finished gutting the farm completely by burning the main homestead. It has taken one year for my profitable farm to become a totally abandoned land where no crop has been planted and the home has been destroyed. Furthermore, Muduvuri already has 4 farms to his name and mine was the 5th one.

What happened on my farm has NOTHING to do with any kind of land reform: the land has not been utilized, the equipment and crops have been stolen, all my animal stock has been slaughtered and finally my home has been burnt.

I look forward to hearing what the conference concluded. But surely we can’t have much hope in the future if we keep on reliving the past?

Pity the University Students and Graduates

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Tuesday, August 24th, 2010 by Marko Phiri

Everyone knows by now that Zimbabwe’s education has deteriorated to levels that will be tough to reverse without any radical policy changes. Other commentators have however opined that until there is a new political dispensation, we cannot expect any real change for the better, which could in effect rather ominously mean these woes will be with us indefinitely – of course with the post-September 2008 political power games being read as pointers to predict the country’s future. Others have pointed at the diamond windfall as just what the doctor ordered to fix the abject education and health services, but inveterate pessimists who know gemstones in the hands of an African politician are not holding their breath.

There still is unabated brains flight in the country’s once awed institutions of higher learning as academics apply for or are offered staff development programmes outside the country but never return to their varsities. And with good reason, some would say. Meanwhile, students who graduate with what have been mocked as unbaked degrees return as teaching assistants, something that would be frowned upon by serious academics. But then this can be found all over the whole education sector here where unqualified teachers are taking children for their O’ and A’ level classes and straight to university!

As we speak, for the umpteenth time the opening of some varsities has been pushed further and some students are already saying they are imagining the academic year may well begin in December when classes should have begun this month. I know a number of National University of Science and Technology students who have left for South Africa as they say they cannot just sit and wait for the unknown. While they have said they will be coming as soon as they are informed that classes have started, such stories have been heard before with many abandoning their studies altogether after having found jobs during their sojourn. All this despite the fact that once upon a time getting an opportunity to study at university was literally embraced with both hands as it was a guarantee that one was set for life. Now students abandon their studies without any second thoughts, after all they are failing to pay their fees, so why pay the exorbitant fees only to have lecturers absent from their posts? It makes sense then to exchange one’s academic cap for hustling in the mean streets of Johannesburg when a degree ought to provide one with a middle class lifestyle – at least in a normal economy.

Zimbabwean students themselves attending university here are witnessing how standards have gone down and one quipped that while some are quitting their studies and complain that they is no learning going on to give weight and meaning to “degree”, she will stick it out as long as in the end she gets that piece of paper that says she went to university and has “qualifications.” But the circumstances of young people who have university education become heart-rending when other countries we always thought viewed our education with awe become “suspicious” of these university degrees and have second thoughts about employing a Zimbabwean graduate.

A young man told a sad story recently about how his “degree” failed to get him a job in South Africa. You see, he got a degree from one of the “state universities” that were once teacher training institutions, but prospective employers in South Africa told him they did not recognise his institution and therefore his degree. He reports he was told the only Zimbabwean degree these people would accept would be from the University of Zimbabwe, but also with reservations. And their reasons? There is no meaningful education going on in Zimbabwe’s universities! How’s that coming from a bunch of people whose education standards is something people here have always mocked?  Now the young man is back in the country clueless about what to do with his future despite having invested four years of his life studying toward his now useless degree. The superiority of Zimbabwean education is no doubt under scrutiny not just among Zimbabweans themselves, but also in the region if not across the globe and the unfortunate part is that young people who enter university and those who acquire other tertiary qualifications have their sights set on regional and overseas job markets as there are no employment opportunities here to match their “qualifications.” So where does that leave them? Skills development is no doubt every nation’s richest investment that overlaps generations but Zimbabwe’s circumstances raise the spectre of diminished returns, after all students are already virtually teaching each other and graduates being produced out of those “interactions.”  The list of top 500 universities in the world was released recently and some watchers did not even bother to check where ours are placed.

Is Someone Thinking of an Energy Plan for Zimbabwe?

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Tuesday, August 24th, 2010 by Catherine Makoni

When I left work at 2pm on Friday I carried some work home with me. You see, l foolishly intended to do some work over the weekend. Foolishly, because like most Zimbabweans, l live with the reality of load shedding. Some have it worse than others. Like most Zimbabweans, the electricity goes when it goes and comes when it comes. According to the ZESA schedule, I was not supposed to have load shedding over the weekend, but at noon on Friday, it was lights out in my neck of the woods. It remained lights out until Saturday at about 3 pm. We had electricity all of 30-40 mins before it was lights out again, throughout the rest of the day and into night. Sunday morning came and went with no electricity. It only came back at about 3pm on Sunday. Needless to say, I could do no work; I was busy fretting about the putrefying veges and leftovers in my fridge.

I have relatives living in peri-urban Gweru. This used to be a thriving farming community before the farmers were “liberated” of their farms. These farmers would deliver tank loads of fresh milk to Dairibord, among other produce. Now of course that doesn’t happen anymore. The merry (in a manner of speaking) band of stragglers who resettled on some of these farms struggle to produce enough maize to feed themselves from one season to the next. Of course, the region is not a good maize growing region. But that’s another story. The story is that for the few remaining dairy farmers, the power outages have really hit them hard. On a typical day, it’s lights out at 5.30 and back in the evening or as late as 10 pm. How is anyone expected to maintain any level of productivity when you don’t have electricity for the main and productive part of the day? Think of the wheat farmers who cannot irrigate their winter wheat crop because there is no power. To think this is a story that is being repeated even as our long comatose manufacturing industry tries to sputter to life. It is being repeated in hundreds of thousands of homes where young people are trying hard to study for their “O” and “A” Level exams. It is being repeated in the hospital wards, labs and theatres where doctors and nurses are failing to give patients proper care. I would imagine the story is the same in the mining industry. As for business, you would be well advised to have your office in the CBD. Go 2 km out of the CBD and you are fair game for power cuts. It seems ZESA is determined to kill off what few businesses remain viable after the last ten years of madness in Zimbabwe.

What I am not hearing in all this talk of power (the political kind) is any talk of an energy plan. The truth of the matter is that the sub region is heading for a power crisis (of the electrical kind!). I hope for all our sakes, someone is alive to this reality or else we are doomed to be a nation of noisy, air polluting generators. City of Harare it would seem, has woken up and smelt the er…sunshine. They have started installing solar traffic lights. So how about streets lights to stop the muggings?

And who says, we should only have one power utility company in Zimbabwe?

Cars and them

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Wednesday, August 18th, 2010 by Marko Phiri

There is a certain class of people that has always existed among Africa’s urban populations ever since independence came to these shores and that sought to stand apart from the rest of the impoverished populations typical of urban Africa. Historians and critics point out that their attitudes, mannerisms and all that pretentious jazz was inherited from settler colonialists who set visible economic benchmarks of “the life” around material wealth. While it will be agreed that the settler and even the present day white man took economic empowerment and its attendant trappings as an entitlement never mind how it was acquired based on notions of racial superiority, the present post-independence Blackman has taken the possession of wealth and material trappings as something that has to be flaunted – also never mind how this was acquired – to ridiculous heights.  You only have to look at politicians to see how wealth among starving masses ought to be celebrated.

With the fall and fall of Zimbabwe’s economy, there emerged a class of people who blazed the trail as the nouveau riche making sure everyone was left in no doubt about what economic rungs they occupied in an otherwise economically wretched society with no wealth to speak of. For example, for these people, owning a car especially became a symbol of undisputed middle class trappings which defined their economic worth and they came to typify their ideal financially sound Alpha African male. Now, because that worth was being measured against the backdrop of other Zimbabweans singing the blues as they were caught up in an economic vortex that rendered yesteryear middle class’s paupers, it left no doubt then that they were better off despite their obvious intellectual paucity, as the envious mocked them. And they in turn equally and brutally mocked those claiming superior intellectual clout that their education had turned them into paupers. “We are buying teachers beer,” they would brag – bearing in mind of course that teachers once upon a time formed what were seen as Zimbabwe’s educated minds that could afford to buy houses, cars, beer and of the finest women – but not necessarily in that order. You can see them everywhere you look – deep pockets, shallow minds, others say rather bluntly.

Whether the flowing cash was thanks to remissions from friends and family in the Diaspora, it was – and actually still is – woe betide him who had no claim to a relative domiciled abroad as an economic refugee. But then came the global economic recession and the remissions thinned or slowed down, and the envious rubbed their hands in glee as the reality of being just an impoverished neighbourhood chump set in. However, as the country trudges along on its rather long road to its economic Damascus, there remain folks who still use rather dubious benchmarks as their economic barometers. Capitalism has always emphasised a work ethic that demands that you only get as much as you put in despite the inherent imbalances that have denied well-bodied and intellectually astute individuals to realise their full potential within that system. Yet you see a guy who still thinks in this day and age for example driving a car – any car – is a symbol of economic attainment, especially among peers who still “walk on the ground like lions” as they are fond of reminding the drooling class.

I saw a guy driving a literally rotten car behaving behind the wheel as if he was behind the “popemobile” feeling as haughty as the typical African who has recently picked some cash when others are wallowing in dire poverty. The neighbourhood guys are supposed to envy such “attainments” and you tend to wonder: is that what African aspirations have been reduced to by the economic hardships that have stalked us for so long? Get into a little cash, buy a car and no one is left in doubt, and this in a country where doctors, teachers, lawyers cannot afford cars and houses of their own!

The other day I saw another guy blasting real loud music from his car radio as he screeched to a halt outside a drinking spot. It was supposed to be some grand entrance – as if people care – as all eyes were turned on him who was polluting the air with such uninvited ruckus. The guy killed the engine but left the music blaring as he went in to buy the green beer imported from South Africa – another plebeian sign of financial clout – but when he came back and turned on the ignition so that no doubt he could screech and kick dust into the eyes of the drooling class, the vehicle refused to budge. What does the guy do? He is soon opening the bonnet “to fix” the problem. And it took him long enough for all to point and laugh!  When the drooling class has a laugh, be sure it lasts longest – literally.  Why think driving a dead car to the pub will mark you out as better off financially, the cynics ask.

Zimbabweans have over the years been forced by their unfortunate economic circumstances to flaunt wealth they do have as there no any culture of saving or investment. But they have their reasons after many lost their lifetime savings to insane inflation. Not many look into the future anymore and say, okay, I am going to invest in the stock market, in this or that enterprise but the cash in my pocket must be seen bulging in the here and now or else no one will know anyway that I have the cash. Others have been heard saying that they do not keep money in the bank because they are afraid the RBZ will wake up one day and just take it – yes, the masses believe their money is not safe after the RBZ was accused of sponsoring Zanu PF. So they now go on and buy rotten cars that become exhibits that they do not need relatives abroad to afford to drive. It is the same guy for whom buying a house, investing in real estate, building a nest egg fro the kids is a proposition that has no place in his order of things but seems to think sleeping in a car is fashionable!

These behaviours must be pondered over by every thinking man who must interrogate the circumstances that engendered the death of working class rungs.

How did the dollar die? What kind of people has its death spawned? A bunch of people with no aspirations beyond owning a car? That’s exactly why Zimbabweans who settle abroad become parodies when they are awestruck by possessions the natives have embraced as part of their daily routine not a sign of deep pockets.

Here the masses have been tempted to live on borrowed time imagining that the country’s economic woes have presented them with opportunities to have it made despite their painfully palpable intellectual want such that all things being fair, they contribute to the betterment of their country and fellow man. But then in a country where everyone seems to be dreaming of one day waking up a millionaire but without losing a sweat for it, it is expected that measurement of economic worth becomes that which does not obtain in countries like South Africa for example where driving a car is expected of every working man and not interpreted as a sign of anything – just a sign of having a decent job that’s all.

City of Harare in a mess

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Monday, August 16th, 2010 by Bev Clark

The Harare Residents’ Trust (HRT), and many others, are rightly fed up with how our city is being managed. They make the following recommendations to improve service delivery and cash-flows to the City of Harare:

1. The Urban Councils’ Act (Chapter 29:15) should be amended to ensure that local authorities are led by elected mayors, who derive their mandate from the residents, and not from their political parties.
2. Mayor Masunda should desist from making statements that undermine the concerns of residents with regards to transparency, accountability and governance at Town House.
3. The City of Harare should make the necessary adjustments to its huge salary bill, in line with the Government’s directive.
4. Residents of Harare, industry and business should pay justified rates and rentals and not allow themselves to be held at ransom by Mayor Masunda and his colleagues in the top management of the City of Harare who take home 70 percent of the city’s revenue in salaries and allowances against service provision of 30 percent.
5. The mayor should drop his attitude and listen to the voice of stakeholders who have repeatedly expressed concern at the city’s rates and services.

What’s up with Misihairabwi-Mushonga?

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Monday, August 16th, 2010 by Bev Clark

We featured an article on aid and NGOs in one of our Kubatana newsletters recently. Seems like the MDC’s Priscilla Misihairabwi-Mushonga wants the government to monitor and audit the activities of NGOs in Zimbabwe.

All well and good but surely it should work both ways? When do Zimbabwean citizens ever encounter any accountability and transparency from the Unity Government? Like, for example, audited accounts of how revenue from toll gates is used? Or how revenue from City of Harare advertising is used?

Donors require strict financial and programming reporting from the beneficiaries of their funding. If NGOs don’t comply or perform to these high standards they lose their funding. Meanwhile, the Unity Government of which Ms Misihairabwi-Mushonga is a part of, seems to believe that they stand apart from any checks and balances.

Some of our subscribers responded like this:

Why does government all of a sudden want donors to account for its money? Do we know how government uses its funds; which by the way, come from tax payers? Why would government expect donors to be accountable to them when government itself is not accountable to its own citizens? I do not think this is a good move on the part of government, especially now when there is a dire need for funds and government is failing to meet its obligations. NGOs are providing the much-needed food, clean water, agricultural inputs to citizens. Government has clearly failed to meet its obligations. Look what happened in 2008 when we had the cholera outbreak. UNICEF and other NGOs moved in and provided clean water and treatment. Right now clinics are functioning, obviously thanks to NGOs, which ever ones they are. So, is this another example of government shooting itself in the foot?  It does not make sense for a man to start harassing someone who is feeding his family when he has no capacity to do so himself. Minister Misihairabwi-Mushonga should tell us the real reasons for this requirement; she surely does not expect us to believe that this is the norm everywhere in the world? Even if it is, other countries are normal with normal governments. We on the other hand, have a dysfunctional government and one would hardly describe our situation as normal. I hope the Minister does not think that we are all so stupid we would think government is worried about us-we know they are not, ZANU PF or MDC.

I do agree  with Jona Mapako who responded on ZimIand forum saying . . . I think the minister has lost it. The government can only decide where its own money goes. The fact that there are donors reflects failure on government’s part to care for its citizens. This however is very true . our country has made head lines not because of anything but our corrupt politicians whose corrupt minds and actions led to the fall of the Zimbabwean dollar. Channeling all funds to the government will only misuse this money just as they always do. Chakatanga ndicho chakachenjedza to hell with them wanting to own everything. Minister Priscilla is beginning to sound  Zanu pf or has she been promised something in all this. Is she being controlled by someone? “We try to put aid where it’s most effective, and I don’t believe having a rule that says everything must be one way or another. As it stands right now the bulk of our aid goes directly to communities and goes through NGOs,” as said. By the US Ambassador is very true. I believe there is nothing wrong with this. Even the Bible says there is more joy in giving than in receiving but rest assured if your efforts are directed to the wrong destination then you simply have not achieved your goal which is to help. My conclusion is NO to government control over the funds. Them controlling the NGO’s is okay but not their activities and funds.

I think the minister is very right, the government should know who the donors are dealing with, in a way it’s a matter of national security. This is our country Zimbabwe and it is the government which acts as custodian of our safety, our peace, and our resources. It is therefore prudent for them, as custodians, to know everything that transpires within or outside the boarders of Zimbabwe as long as it has a bearing on the life of any Zimbabwean. Whether it is aid or what, the government has to know because they are answerable to us, citizens of this beautiful country, Zimbabwe.  I salute the stance taken by Madam Honourable Minister.

I second the notion that the Minister, (Misihairabwi-Mushonga) has lost it, and has lost it big time. I am sure she has come along a saying which goes like, “beggars are not choosers”.Honestly , have they thought of what would happen if those donors decide to pull out?

Decision on NGOs threatens Western aid

A government decision to police non-governmental organisations working in Zimbabwe threatens future support from Western countries whose funds have been critical in curbing humanitarian disasters, a top diplomat has said.

Regional Integration and International Cooperation minister Priscilla Misihairabwi-Mushonga said the government last week told donors and ambassadors from donor countries that they should inform government of their activities, total funding into the country and the non-governmental organisations (NGOs) that they were working with.

But the United States (US), which is one of Zimbabwe’s biggest donors, warned yesterday that such a move would be disastrous, mainly because it was not practical to make such demands when donors were doing their best under the current environment where their options were limited due to restrictions levelled against some people in the inclusive government.

However, Misihairabwi-Mushonga insisted that donors and NGOs should abide by the rules and regulations government has set out for donor funding. Misihairabwi-Mushonga, who chairs the recently set up Government Development Forum in which 10 ministers sit with donors and ambassadors to discuss policy and problematic issues regarding donor funding, said government should be the dominant player in aid co-ordination and aid-distribution. She said she would soon be compiling a database of the total number of donors and the NGOs in the country, programmes that they finance, size and quantity of funding and the criteria they use to select their beneficiaries.

“It is the government that defines where aid should go. We now require everyone in the country to inform us about their aid work, how much they are spending and which areas they are working on. Right now we don’t know and are not sure who is doing what or working with whom and through which NGOs,” said Misihairabwi-Mushonga.

However, US Ambassador to Zimbabwe Charles Ray told the Zimbabwe Independent yesterday that he did not believe in a government dictating rules on how they should operate, adding that what worked at the moment, because of the restrictions on Zimbabwe, was to channel aid through NGOs or directly to communities.

“We try to put aid where it’s most effective, and I don’t believe having a rule that says everything must be one way or another. As it stands right now the bulk of our aid goes directly to communities and goes through NGOs,” he said.

“The essential philosophy of US aid and the way I influence wherever I work is… I refuse to have someone write a set of rules and tell me that I must follow those rules, I look for what works.”

Misihairabwi-Mushonga said what they are doing is the accepted norm in any country in the world. “They have to know that they are dealing with a country which has a government and they will have to follow certain rules. They can’t just operate in this country the way they want.”

Source: Faith Zaba, The Zimbabwe Independent