WEEKLY DIGEST JUNE 1, 2022

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Wednesday June

.How Zim can

navigate its way out
of the post-GNU
existential crisis

.Desperate govt

hikes mobile transfer
tax but it may be
shooting itself in the
foot

REFINERIES: ZIM PLANNING
FAR AHEAD OF CAPACITY

AFRICA IN BRIEF June 1 to 7 2022 Weekly Digest 2

UN report links Mali army to Ivory Coast authorities build
rise in rights abuses wall for endangered urban park

1 Civilian deaths and rights 4 Concerned about il- put an end to that.
abuses attributable to the legal logging and pol- “In reality, it’s 12km of fenc-
Malian armed forces and lution in Banco Nation-
backed by “foreign mili- al Park in Ivory Coast’s ing for a perimeter of 24km be-
tary elements” have surged commercial capital Abidjan, au- cause a lot of the boundary has
in the first quarter of 2022, a Unit- thorities are erecting a concrete already been whittled away here
ed Nations report has said, with the perimeter wall that they hope will and there to build urban lots,”
killings seeing a 324 percent rise preserve its distinctive ecosys- said Adama Tondossama, direc-
during the previous quarter. tem. tor-general of the Ivorian Office
“Malian Armed Forces, support- Banco spans more than 34 of Parks and Reserves told Reu-
ed on certain occasions by foreign square km (13 square miles) of ters news agency. Tondossama
military elements, increased mili- western Abidjan, making it the said he hoped the efforts to pro-
tary operations to combat terror- second biggest urban park in tect Banco would help it win a
ism … some of which sometimes the world, behind only Rio de place on UNESCO’s list of world
ended in serious allegations of vi- Janeiro’s Tijuca National Park. heritage sites.
olations of human rights,” the UN’s Some of its wildlife, which in-
Malian mission, known as MINUS- cludes monkeys, chimpanzees Banco’s groundwater table
MA, said in the report released on and 500-year-old trees, is con- provides 40% of Abidjan’s drink-
Monday. The report did not iden- sidered sacred by locals, and its ing water and captures 90,000
tify the “foreign military elements” trails are a haven for hikers and tonnes of carbon dioxide per
supporting the army. bicycle riders away from the traf- year. Parks authorities have been
The total number of people fic-clogged streets in the city of 5 working with local communities
killed in the first quarter of 2022 million people. to head off any misunderstand-
by all parties in the conflict – re- But Banco is threatened by ings related to the wall and em-
bels, self-defence groups and se- pressures from Abidjan’s rapid phasise the importance of pro-
curity forces – quadrupled during growth. tecting the forest.
the last three months of 2021, ris- Locals illegally chop down
ing from 128 to 543. trees to build houses and dump “We must not lose the forest,”
A total of 248 civilian deaths their rubbish in the woods, offi- said Mesmin Yapo, the depu-
were attributable to the defence cials say. Parks officials hope to ty chief of a village on the park’s
and security forces, the report said. outskirts. “We are in some ways
MINUSMA documented 320 hu- the guardians here.”
man rights violations by the Mali-
an military in the January-March — Aljazeera
period, compared with 31 in the
previous three months. The report The landlocked Sahel country has been battling an rebellion that flared
comes just as Mali cut ties with for- in 2012
mer colonial power France and as
Wagner Group, a Russian private civilians they suspected of being arbitrarily detained many civilians
military contractor, was roped in rebels. “In addition to summary ex- during the military operation,” MI-
to help the government fight an ecutions, security forces also alleg- NUSMA said.
armed rebellion. The most nota- edly raped, looted, arrested and
ble case was in the town of Moura, — Aljazeera
where witnesses and rights groups
say the Malian army accompanied
by white fighters killed dozens of

Cameroon's kidnapped senator freed - army

2 Cameroonian soldiers country's English-speaking North- The separatist group, Ambazo-
have freed a kidnapped West region, the army says. nian Defence Forces (ADF), said it
senator of the ruling carried out the abduction.
party, plus several oth- Senator Elizabeth Regina Mun-
er hostages, in an operation in the di was kidnapped along with her — BBC
driver last month in Bamenda.

Senegal: Police arrest two
after death of 11 babies in fire

Senegalese officials have arrest- Health officials wear protective gear at a Nigerian medical research facil-
ity in Irrua, Edo State, midwest Nigeria, on March 6, 2018.
3 ed two health workers from
a neonatal unit where a Nigeria CDC confirms 21 cases
fire killed 11 newborns last
week. of monkeypox in 2022
The arrest happened
on Sunday, according to private 5 Nigeria has confirmed Republic of the Congo and Nigeria.
Senegalese radio station RFM. The 21 cases of monkeypox But it has caused global alarm
nurse and a nurse’s aide were on duty since the start of the
Wednesday night when the fire took year with one death re- after more than 200 suspect-
place at the Abdoul Aziz Sy Dabakh ported, the Nigeria Cen- ed and confirmed cases of the vi-
Hospital in Tivaouane, a town 120 kil- tre for Disease Control (NCDC) has rus were detected in at least 19
ometres (75 miles) northeast of the said. “Among the 21 cases report- countries since early May, mostly
capital, Dakar. ed in 2022 so far, there has been in Europe and the Middle East. No
They were arrested for “neglect- no evidence of any new or unu- deaths have been reported so far.
ing children” and “endangering the sual transmission of the virus, nor The NCDC said out of 61 suspected
lives of others”, according to a report changes in its clinical manifesta- cases of monkeypox reported since
by RFM. A year earlier, four other newborns best hospitals in the region. tion documented (including symp- January, 21 had been confirmed
The arrests came days after Presi- died in a hospital fire in Linguere in Earlier this month, authorities dis- toms, profile and virulence),” NCDC with one death, that of a 40-year-
dent Macky Sall promised investiga- northern Senegal. said in a statement late on Sunday. old man. The cases were reported
tions to determine the cause of the covered a baby that had been de- Monkeypox, a usually mild viral in nine states and the federal cap-
fire. He also called for auditing of all A series of other deaths also have clared dead by a nurse’s aide was infection, is endemic in the African ital Abuja.
medical equipment that accommo- raised concerns about maternal and still alive in a morgue. The infant lat- countries of Cameroon, the Central
dates newborns in the country. infant health in the West African na- er died. African Republic, the Democratic Six of the cases were detected
Health Minister Abdoulaye Di- tion believed to have some of the this month, it said.
ouf Sarr was fired last week and re- — Aljazera
placed by senior ministry official Ma- — Aljazeera
rie Khemesse Ngom Ndiaye, the gov-
ernment said.
Sarr, who was attending the World
Health Assembly in Geneva, cut short
his trip to return to Senegal and told
RFM that the fire was caused by an
electrical short circuit.

THE DIGEST VIEW June 1 to 7 2022 Weekly Digest 3

Time for The wasted week at Davos 22
police to act
on Kwekwe

hoodlums

serious danger to the town’s in-
frastructure per se.
And so for years Globe and ZIMBAWEAN leaders have penchant sojourns can be easily seen. The
Phoenix Mine never acted in a to pursue the populist things. In a accelerated privatisation of State
way that would jeopardise the week that could have been used for mines (Kuvimba), privatisation of
safety of people living above its better things, President Emmerson health facilities (Sakunda), proposed
tunnels. The miners, therefore, Mnangagwa and his entourage were privatisation of Air Zimbabwe and
dug deep into the earth’s crust in Davos, Switzerland, hobnobbing National Railways of Zimbabwe,
so as not to disturb the earth with the world rich and famous yet privatisation of energy production
supporting the town’s build- no tangible things came out of it. and privatisation of roads
ings and infrastructure. And it (concessions). Oh, I had forgotten
comes as a major worry that we This sounds too harsh on the the privatisation of Cold Storage
now have people who are willy- regime that came to be via a coup in Commission, the former largest
nilly barrowing shafts and tun- November 2017. It attends jamborees meat processor in sub-Saharan
nels close to the surface. that gives it a sense of whitewashing Africa.
If these morons are not im- the horrible things they are accused
mediately reined in, the entire of doing back home and gives them The government is on privatisation
town is in grave danger of cav- photo opportunities to show to the steroids.
Alfonce Mbizwo ing in. If the chaotic gold dig- lumpen proletariat voters ahead of Paidamoyo Muzulu
ging by these nincompoops crucial 2023 general elections. Mnangagwa is busy selling the
Editor goes on unchecked the en- family silver. Soon everything will be US last week passed a legislation
tire ground under the town will To the uninitiated,World Economic in private hands and Zimbabweans that will monitor which countries are
Y ESTERDAY’S News- soon be weakened by the dis- Forum (Wef), is “an international will be in a feudal State. having friendly relations with Russia.
Day edition carried a orderly tunneling which is obvi- non-governmental and lobbying This came not as a surprise, but was
story of cheeky gold ously underway at the moment. organisation based in Cologny, The Wef speaks in euphemisms a culmination of a bloody nose the
diggers in Kwek- canton of Geneva, Switzerland. It to confuse the public. On its website US came out of the United Nations
Kwekwe has an estimat- was founded on 24 January 1971 by it says: “The annual meeting 2022 General Assembly during votes it
ed population of plus or minus German engineer and economist will embody the World Economic sponsored against Russia over its
we who are digging 100 000 people and if disaster Klaus Schwabannual,” according to Forum’s philosophy of collaborative, invasion of Ukraine.
up Globe and Phoenix School strikes during the day, at least the organisation’s website. multi-stakeholder impact, providing
premises and barrowing like a quarter of the population can a unique collaborative environment Mnangagwa has to stop this
rats under classrooms in search be caught up in the environs of The organisation has been in in which to reconnect, share insights, nonsense of attending any summit
of the precious metal. the town’s CBD. existence for over half a century, 51 gain fresh perspectives, and build or conference because there are
A stitch in time serves nine years to be exact. problem-solving communities and big names present. He has to weigh
The school head Isaac Bvu- initiatives. Against a backdrop of what are the benefits of attending
pajena says: “They have been and it is critical that law en- What is an international non- deepening global frictions and such meeting for Zimbabwe.
threatening the school secu- forcement agents in the town governmental organisation? What is fractures, it will be starting point for a
rity guard and other employ- act now on these errant imbe- lobbying? new era of global responsibility and In the week he hired a private jet
ees at the school with death. ciles before disaster strikes be- cooperation.” to Davos with a bloated entourage
As school authorities, we are cause from the look of things An international non- and hired supporters to welcome
worried about the ille- these halfwits will not stop governmental organisation is an To prove how futile this enterprise him, next door in South Africa
digging for gold as organisation which is independent is, one does not have look beyond they were rolling the red carpet for
gal mining activities ey have long as the law turns of government involvement and the calibre of global leaders who German chancellor Olaf Scholz. This
currently hap- a blind eye. extends the concept of a non- attended. Russia and China two of was a coup of some sort for Cyril
pening at the It is such seem- governmental organisation to an the biggest world players be it in Ramaphosa. Germany is the biggest
school. We been threatening the ingly small and international scope according to politics or economics did not send economy in the EU.
have alerted inconsequen- Wikipedia. their leaders.
the respon- school security guard and tial happen- Without belabouring the point,
sible au- ings that scare The purpose of international Interestingly, these are the Ramaphosa knows what role
thorities other employees at the school away investors non-governmental organisation is countries at the core of what is German investors have in South
about the as well. Zim- primarily to “defend or promote a termed “deepening global frictions Africa’s motor industry. Does
situation, with death. As school authorities, babwe can- specific cause”. In this instance, Wef and fractures”. So, one can ask, how Mnangagwa not see this and the
but there not be seen to is a business grouping and they do we build a “new era of global need to talk to our large investors?
is no ac- we are worried about the ille- be tolerating generally lobby for better working responsibility and cooperation” After all, the West has for the last
tion being lawlessness or operating environments. In their without these two? two decades thrown all types of
taken.” gal mining activities currently of any kind. If jargon this means low taxes, tax spanners to make sure Zimbabwe’s
This is these maraud- holidays, privatisation of state- It may look simple and economy screams — and it is
more than happening at the school. owned companies and deregulation commonsensical to most but not screaming indeed.
disturbing in ing gold diggers of forex exchange. We will come back Mnangagwa, that attending WEF is
are allowed to fes- to what this means to developing an exercise in futility. It will not cause One more point, if Mnangagwa
this day and ter, what will stop countries like Zimbabwe. the European Union and the US to thinks it worthwhile to fly tens of
age to hear that remove economic sanctions against thousands of kilometres to meet
we have a bunch them from multiply- We still have another word to Zimbabwe. international NGOs and lobbyists,
ing and invading other es- define — lobbying. According to the why does he snub local NGOs that
of hoodlums reckless- Oxford dictionary it means, “ seek to On a global scale, how is may also have local solutions to
ly going about doing as they tablished and productive gold influence (a legislator) on an issue.” hobnobbing with the West at WEF the local problems? I guess charity
please as if Zimbabwe is now a mines? The country is currently interpreted in the diplomatic world begins at home.
lawless nation. blacklisted as a lawless nation In simple terms, lobbyists seek considering most of the investments Paidamoyo Muzulu is a journalist
Globe and Phoenix School simply because authorities have to rule from behind the scenes. into Zimbabwe came from China based in Zimbabwe. He writes in
and the entire Kwekwe cen- nurtured a reputation of toler- They make elected representative and Russia in the past decade? his personal capacity.
tral business district (CBD) is, ating lawlessness. And not act- forgo their election manifestos and
in fact, built on top of tunnels ing on the Globe and Phoenix instead do their bidding in exchange It points to one thing, Zimbabwe
dug decades ago by Globe and disaster in the making will not of providing thriving economies (big is confused in its foreign policy at
Phoenix Mine and the tunnels help the country shake off this profits for capital). worst and a jelly foreign post at
worst. And this does not bode well
This is the event that Mnangagwa for Zimbabwe.
is attending for the third time since
he came to power. The fruits of the To further hone on this point, the

are very deep below to pause lawlessness tag.

Weekly Digest is published daily by Alpha Media Holdings EDITOR Tel: 883184-8/887057/58/69/70/71 Tel. 883184/5/6/7/8,887069/70/1,887058/885280/1/2. AMH subscribes to truthful,
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ANALYSIS June 1 to 7 2022 Weekly Digest 4

How Zim can
navigate its
way out of
the post-GNU
existential crisis

TKUDZAI KUWAZA “The Second Republic under President ing reforms that had the potential to ad- ment, inequalities, the trust deficit and pov-
here is an existential economic Emmerson Mnangagwa promised sweep- dress key development issues like employ- erty. However, after four years under his ad-
and political crisis in Zimbabwe,
which has persisted since before 251 INDIGENOUS WAY
and Government of National Uni- WILLOWVALE, HARARE
ty (GNU) was established in 2009, Sarah Shekede
a new report says, while proposing cocktail Mobile number: 0775466322
of measures to extract the southern African Email: [email protected]
country out of the doldrums. Mr. Remigio Banwa
Mobile number: 0777806008
The report, titled Human Development Email: [email protected]
as a Pathway to Transformed and Peaceful
Societies: Governance and Development in
Zimbabwe, authored by Cyprian Muchem-
wa and Jaynisha Patel for the Institute of
Justice and Reconciliation, looks at how the
country has been blighted by poor govern-
ance, economic decline and the inequitable
distribution of the country’s resources.

“Poor governance has led to human de-
velopment deficits and unequal resource
distribution. These matters need to be ad-
dressed with urgency if Zimbabwe is to pro-
gress towards sustained social cohesion and
peace,” the report states.

The report points out that before the
GNU, which comprised Zanu PF and the two
then Movement of Democratic Change par-
ties and whose lifespan was from 2009 to
2013, the country was bedeviled by a crisis
characterised by hyperinflation and extreme
poverty among other challenges.

“The immense economic challenges in-
curred from 2000 to 2008 were character-
ised by shortages of food, fuel, medicines,
jobs, deindustrialisation, hyperinflation, in-
creases in extreme poverty and loss of peo-
ple’s savings and pensions,” the report notes.

“Towards the end of 2008 the Zimbabwe-
an state had become so incapacitated that
it failed at providing essential public goods
and services like health, education, social
protection, clean water and basic infrastruc-
ture. Social protection became non-existent
and the combination of unemployment and
hyperinflation drove extreme poverty to un-
precedented levels.”

The report also notes that despite chal-
lenges, the GNU brought about stability
during its five-year tenure.

“The GNU working arrangement was not
perfect and was frequently mired by in-
fighting over the control of state resources.
However, this does not detract from the fact
that the quality of governance briefly im-
proved and sound decisions were made as
compared with the period before and after
GNU,” the report observed.

“More importantly, the GNU was driven by
a solution-seeking orientation, not only in
the area of the economy but also with re-
spect to social cohesion.”

However, at the end of the GNU, the re-
port states, there has been a rapid deterio-
ration in the standards of living in the coun-
try prompted by power struggles within the
ruling Zanu PF.

“The end of GNU also changed the gov-
ernance dynamics to the detriment of the
country. From 2013 onwards, the govern-
ance dissonance within Zanu-PF had an im-
pact on the economic situation in the coun-
try. Between 2014 and 2017, Zanu-PF was
factionalised because of succession politics
relating to the then ailing president Robert
Mugabe,” the report points out.

“Factionalism within the cabinet and the
government bureaucracy paralysed the
state’s ability to respond timeously and de-
cisively to arrest the growing economic
problems. This had detrimental effects on
both human development and social cohe-
sion. It is under these fragile circumstances
that a military coup ended Mugabe’s long
rule in November 2017.”

When President Emmerson Mnangagwa
succeeded the late Robert Mugabe as the
country’s leader following a coup in 2017, the
country is still mired in a political and eco-
nomic morass.

ANALYSIS June 1 to 7 2022 Weekly Digest 5

ministration, the country remains politically signify a shrinking civil space.” and economic conditions in the country, the ing macroeconomic policies that can help
and economically fragile,” the report notes. Under this state of fragility, the potential report has made several recommendations finance social safety nets for the informal
“Heavy-handed state crackdowns on polit- to the government. sector, proper investigations into state offi-
ical opponents, demonstrators, civil society for human development hangs in the bal- cials who abuse their power and participate
activists, journalists and trade union leaders ance. These include improving transparency in corruption related to illegal mining and
and accountability mechanisms, consider- improving infrastructure and preventing the
As a way to halt the deteriorating political degradation of water quality.

However, these recommendations are
likely to fall on deaf ears as there is no po-
litical will to improve transparency and ac-
countability as demonstrated by efforts
by Mnangagwa’s attempts to reduce Par-
liamentary scrutiny on some of the agree-
ments the government enters into.

Clause 23 of the Constitution Amendment
Bill (No 2), seeks to amend Section 327(3) of
the constitution, to give the executive ex-
clusive powers to approve loan agreements
with foreign non-state institutions or enti-
ties without being subjected to parliamen-
tary and public scrutiny.

The amendments violate Section 119 of
the constitution, which provides for parlia-
ment to play its role of promoting demo-
cratic governance.

The government has always preferred to
operate under a veil of secrecy raising sus-
picion of underhand dealings which include
mortgaging the country’s minerals which
has a detrimental impact on the country.

Zimbabweans have become accustomed
to announcements of “mega deals” over the
years that hardly ever come to fruition.

The opaque nature of the deals has been
a breeding ground for corruption and loot-
ing.

The dodgy diamond deals in Chiadzwa
in which there is significant military interest
also exemplify the opaque nature of agree-
ments made by the government and its
aversion to transparency.

The report gives a detailed analysis of the
three epochs of the country’s political and
economic situation which is before the GNU,
during the GNU and after the GNU.

However, the lack of political will and par-
tisan interests makes it highly unlikely the
recommendations of the report will be tak-
en onboard.

COVER June 1 to 7 2022 Weekly Digest 6

Refineries: Zim planning
far ahead of capacity

TBY SHAME MAKOSHORI flows. reviewing the policy. The late former President Robert
WO weeks ago, the Zimbabwe A week after government dropped the But this was the latest of many discus- Mugabe forced miners to agree to sell
government was forced to drop 51% of shares in their local units to black
its plan to begin charging plati- tax, a member of the Reserve Bank of sions that authorities have had with plati- investors at the height of Zimbabwe’s
num exporters a 15% beneficia- Zimbabwe’s monetary policy committee, num miners – Zimplats, Inki and Mimosa empowerment drive.
tion tax for failing to set up re- Persistence Gwanyanya revealed why: Mining Company.
finers in the country. And in 2015, his mines minister Wal-
“Our challenge started during the first Under the Platinum Producers Associ- ter Chidhakwa said that if platinum pro-
The contentious tax, which was an- quarter of this year,” Gwanyanya said ation, the firms have indicated that they ducers came together and established
nounced in 2015 but was due to be ef- while contributing to the Big Debate, an were willing to set up a final refinery in a refinery, which the Chamber of Mines
fective later this year, has been a source economic analysis platform organised by Zimbabwe, but for now, the southern Afri- of Zimbabwe (CoMZ) said would cost
of discontentment by platinum firms al- Alpha Media Holdings. can country lacked output levels required at least $2 billion to build, the govern-
ready battling high costs in Zimbabwe, to run such a plant profitably. ment could allow the mines to own more
partly due to the proposed exorbitant fis- “The biggest contributors of foreign shares.
cal charges. currency, platinum miners, did not bring They estimate that the sector will re-
forex because of an issue they had about quire a combined output of 500 000 “The government is simply saying that
It is not only platinum miners that have the beneficiation tax. This is why we had ounces a year for them to shell at least the guiding principle is 51/49% but if the
raised concerns over Zimbabwe’s cost of a deep in foreign currency during the first US$2 billion to establish a final refiner. investment does something to this coun-
doing business. quarter,” Gwanyanya added, referring to try that can convince us to graduate or
Zimbabwe’s escalating foreign currency Output is projected at 465 000 ounc- move away from the 51/49%, we will do
At the weekend, Invictus Energy, which crisis, which has seen the domestic cur- es this year, according to the World Plati- so,” Chidhakwa then.
is exploring for oil and gas in the Zambe- rency tumble as exchange rates run amok num Investment Council, which is 35 000
zi basin, said African governments must on both the official and parallel markets. ounce lower than the sustainable figures. “And I think that in so far as in estab-
take a serious look at fiscal costs to inves- lishing a platinum refinery in Zimbabwe is
tors in order to encourage more FDI in- It has not been clear if producers, un- It means the miners will continue to rely concerned, yes, I think there is that flex-
happy with the impending tax, were hold- on the Bushveld Complex in South Africa, ibility.”
ing off exports to force government into where matte from Zimbabwe is shipped
after partial processing.

COVER June 1 to 7 2022 Weekly Digest 7

But some analysts suggest that Zimba- ty to sustain one due to low capacity. In concern, which can be attributed to new eration.
bwe may not be ready for a refinery. South Africa, firms there have been able found minerals like lithium,” he said. The Chinese firms advantage is that
to establish refineries because output is
“A refinery is seen as one of the biggest huge. At the same time, Zimbabwe wants He spoke as Huayou Cobalt, the Chinese they are generally trusted and listened
employment creators due to its ability to to control the output because there have conglomerate that recently took over Ar- to by government.
create downstream industries,” said Tapi- always been concerns that several by- cadia Lithium Project in Zimbabwe, has
wa Sibanda, an analyst at Trade Winds in products from platinum refinery are not shut doors on prospects for establishing Unlike mining firms from the West,
South Africa. being accounted for. That is an important a final refinery, saying Harare lacked sup- Chinese investors enjoy a good re-
porting infrastructure to run a viable op- lationship with President Emmerson
“But for now, Zimbabwe lacks capaci- Mnangagwa’s administration, and
their counsel is likely to be taken se-
riously.

In addition, under its ‘Zimbabwe
Open for business’ mantra, Zimba-
bwe’s government has done away with
its nationalistic stance.

It appears more amenable to con-
versation than confrontation – a trend
that started when Mugabe left pow-
er in 2017.

Still, the urge to talk firms into es-
tablishing refineries remains.

Perhaps, by so doing, Harare is
thinking too far ahead of time, but it
has had a lot of supporters such as
the experts at Southern Africa Re-
source Watch, who feel African firms
have been giving away too many con-
cessions in their desperation to attract
FDI.

On Monday last week, the Shang-
hai Stock Exchange listed-Cobalt un-
veiled a plan to establish a processing
plant – part of a US$300 million budg-
et - that converts ore into matte, be-
fore shipment to China for further re-
finement, but said a final refinery for
lithium would be a drain on its oper-
ations.

“The large-scale investment not
only drives the development of local
economy and creates a large number
of employment opportunities, but also
contributes value to the improvement
of local equipment level,” Cobalt said.

“The establishment of a converter
for producing battery-grade lithium
carbonate is not feasible for the fol-
lowing reasons;

First, the principal reason the pro-
duction of battery grade lithium car-
bonate is not feasible is based on the
lack of supporting and auxiliary mate-
rial for battery-grade lithium carbon-
ate production. For each tonne of bat-
tery-grade lithium carbonate produc-
tion, it needs 2 800 kilowatts of green
(renewable) power 500-600 m3 of
natural gas, 2,2 tonnes of concentrat-
ed sulphuric acid (98,5%), two tonnes
of first-class sodium carbonate, 20kg
of first class sodium hydroxide, four
tonnes of heavy calcium powder and
1,6 tonnes of food-grade carbon diox-
ide,” the firm said.

“There is a chronic shortage of these
supporting and auxiliary materials in
Africa and the costs incurred by the
importation would be huge and unaf-
fordable. It is worth to note that pro-
cessing enterprises will be uncompet-
itive in a global market without cost
competitive inputs i.e raw materials,
gas and powder and first-class sodi-
um carbonate,” the firm added.

Cobalt said the second reason was
in respect of the development and
economic analysis on the extension of
lithium value chain.

“It is well understood that the five-
year plan of the national strategy for-
mulated by the Zimbabwean govern-
ment sets our macro objectives to en-
hance and advance the value chain,” it
said.

“However, this is a gradual process,
which requires the relevant enabling
industrial environment, infrastructure,
raw materials, and technical compe-
tence to be present in order to create
the competitive position of the lithium
value chain.

“Therefore, based on our compre-
hensive analysis, we believe there is
certain possibility in practice to es-
tablish a converter to produce lithi-
um sulphate from the lithium concen-
trate within 10 years from the date of
commencement of commercial pro-
duction of lithium concentrate under
Arcadia Project, subject to the avail-
ability of sufficient green (renewable)
power, natural gas, sulphuric acid and
heavy calcium powder in Zimbabwe
and subject to the economic feasibil-
ity of production of lithium sulphate
under Arcadia Project.”

The Arcadia Mine life span is esti-
mated at 10 to 15 years, which means
chances of a refinery might be narrow

OPINION June 1 to 7 2022 Weekly Digest 8

Desperate govt hikes mobile transfer tax
but it may be shooting itself in the foot

ZFREEMAN MAKOPA To manage this, Bhoroma said the gov- as people would prefer holding on to hard thus reducing the real value of earnings,
imbabwe’s cash-strapped gov- ernment needed to simplify its taxation currency, than electronic money,” he said. mostly for those on the lower bound of
ernment has been advised to model and create robust enterprise sys- the income distribution scale,” the pressure
lower the Intermediate Money tems that monitor business transactions in The country is once again in the grip of group said.
Transfer Tax (IMTT) from 4%to 1%, real time and enforce tax compliance. a severe economic crisis characterised by a
to increase revenue collection and massive shortage of foreign currency, un- “More so, the authorities should be alive
promote financial inclusion. “The government needs to invest in in- employment of more than 90 percent, low to the fact that not all domestic forex trans-
ternet-based systems that monitor busi- production and hyperinflation that has re- fers are being done to provide liquidity in
The call comes at a time consumer, ness transactions to maximise on other duced purchasing power. the black markets as some of these forex
mostly the poor, are increasingly using hard taxes affected by informalisation, so that transactions are done by businesses re-
cash for day to day transactions to avoid IMTT can be kept at 1%,” he said. Barely three years after the reintroduc- stocking, settling utility bills or paying for
being taxed by the government on mobile tion of the Zimbabwe dollar, the local cur- key supplies, like industrial inputs while
and digital channels, which bring transac- Formal businesses have been, for past rency’s value has plunged dramatically. some is by those households paying for
tions into the formal sector. two years, calling on the government to From trading at around 210 Zimbabwean critical services like health care.”
scrap the contentious tax, arguing it is un- dollars to US$1 at the beginning of March,
Economist Victor Bhoroma said Zimba- sustainable and increasing industries’ pro- it is now said to be trading above ZW$450 Zimcodd added that the new policy
bwe’s complex tax environment was largely duction costs. to US$1 on the streets. stance will likely trigger US dollar inflation
to blame for the country’s increased rate which will again feed into Zimbabwe dollar
of informalisation, thus depriving the gov- Bhoroma said the government’s recent The Zimbabwe Coalition on Debt and inflation.
ernment of the much-needed revenues for decision to hike IMTT on domestic foreign Development (Zimcodd) said Finance min-
economic growth. currency transactions will result in massive ister Mthuli Ncube should introduce meas- “Given the already elevated imported
shortages of United States dollars. “The lat- ures that allow for the free flow of foreign inflation as a result of severe global supply
“The level of informalisation in the coun- est move stifles deposits to local financial currency in the country to tackle the cur- chain disruptions, a looming poor 2021/22
try is now estimated to be between 70- institutions, encourages informalisation rent liquidity crunch, instead of increasing agricultural season, and possibilities of
75%. This means that the shadow economy and discourages transparency on vari- IMTT to 4%. policy slippages ahead of the 2023 general
in Zimbabwe transacts billions more than ous businesses and traders. Players in the elections, the policy measures exacerbate
the formal economy. The shadow econo- economy will do their all they can to avoid “This exerts a disproportionately nega- the suffering of poor citizens as businesses
my weighs heavily on economic recovery IMTT tax and trade in hard currency. This tive impact on the poor majority with small can pass the resultant inflation burden to
efforts as tax revenues dwindle and the increases demand for and creates shortag- forex balances which can hardly move the the consumer, especially on staple food
treasury is forced to institute more taxes on es of foreign currency in the formal sector, exchange rate. Increasing the cash with- with inelastic demand.”
the compliant few,” he said. drawal levy also increases transacting costs

OPINION June 1 to 7 2022 Weekly Digest 9

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FEATURE June 1 to 7 2022 Weekly Digest 10

Insuring against disaster:
the politics of protection
IAN SCOONES

One of the most popular respons- longer term. Here pay-outs occur if come quite popular for agricultural ance where a whole country takes (the ‘attachment point’) is crossed
es to drought – and disasters more a threshold is crossed, say of rainfall and livestock insurance in develop- out a policy against drought (or (such as below average rainfall
generally – by aid agencies today is or its proxy, such as vegetation cov- ing countries, for instance. some other disaster) and the pay- across the country, assumed to be
insurance. This fits the current de- er. Index-based policies have be- out happens again if a threshold affecting a certain number of peo-
velopment mood, requiring mar- A final type is sovereign insur-
ket-based solutions that operate
at a distance and work seeming-
ly ‘efficiently’, offsetting the need
for cumbersome, late responses of
state or development agency deliv-
ered humanitarian aid.

It all sounds good in theory,
but what is the reality? This was a
theme we explored in Zimbabwe
both in the field with farmers across
our sites, as well as in Harare with
some of those managing a new in-
surance approach for drought re-
sponse, sponsored by the Africa
Risk Capacity Group, and support-
ed by multiple donors.

Many types of insurance
Insurance comes in many shapes
and forms. There’s classic indem-
nity insurance where if a disaster
strikes an assessor will estimate the
damage and pay out if you have a
policy. This is the sort of insurance
you have in case your house burns
down or you crash your car.
Index-based insurance by con-
trast aims to pay out before the
event happens. This provides ear-
ly response and avoids the dan-
gers either of later payment or of
emergency responses that can un-
dermine people’s livelihoods in the

FEATURE June 1 to 7 2022 Weekly Digest 11

ple). This is aimed at ensuring ‘early action’ as part of `
an anticipatory approach to assistance, which again
doesn’t have to wait for the mobilisation of interna- PAYMENT OF LICENSE FEES 2022
tional funds after the event.
Following the announcement of measures to restore confidence,
Sovereign insurance: the Africa Risk Capacity preserve value and restore macroeconomic stability by Government, the
model Zimbabwe Energy Regulatory Authority (ZERA) wishes to advise
relevant stakeholders that payment or remittance of license fees and
This ‘sovereign insurance’ is what the government any other fees should be done (where applicable) using the rate of
of Zimbabwe has recently bought from ARC (USD exchange established through the Willing-Buyer Willing-Seller
2.5m) in partnership with the UN World Food Pro- exchange rate system.
gramme (USD 1.5m) and the START network (USD
2.5m) (a consortium led by international NGOs in- For sustainable energy
volved in humanitarian assistance with 20 members
in Zimbabwe), who run ‘replica’ programmes paid
for by international aid donors. The model will pay-
out when an estimated 3.3 million people are affect-
ed (the attachment point), with a response cost of
USD 154m, and so is designed for a major national
disaster not for regular responses to food insecurity.

However, the ARC approach, which is an African
Union initiative, with separate development and
commercial arms, has had a chequered history. For
example, in 2016 the insurance failed to pay out in
Malawi during what was clearly on the ground a dis-
astrous drought. In the end an ex gratia payment
was made, but the approach was seriously critiqued
– a damning Action Aid report argued that this was
the wrong model for improving resilience. Despite
its many promoters in the aid agencies, the ARC lost
credibility and there was a period when it looked like
it would collapse with insufficient country subscrib-
ers and too little funding to reinsure. A preliminary
evaluation by OPM suggest some major flaws, par-
ticularly in the way the underlying ‘AfricaRiskView‘
model was constructed.

Since then, there have been multiple efforts at
improving the system and customising the under-
lying model. Zimbabwe has bought into a very dif-
ferent operation, with the model being calibrated
with local information through a committee, led by
the Ministry of Finance, with many experts from the
ministry of agriculture (Agritex) as well as aid agen-
cies and NGOs. Although the details of the model
are secret – they are proprietary information of the
commercial arm of the ARC, and the basis on which
it presumably gears a profit from its assessment of
risks – there is clearly more local participation and
transparency than before. Those who have premi-
ums invested can monitor the progress through the
season, assessing if a pay-out is likely.

The implementing agencies, whether govern-
ment, the WFP or the START network, must come up
with a contingency plan for how they will deliver as-
sistance in case a pay-out is made. The current pol-
icy aims to reach up to 800,000 people in drought-
prone districts if a full pay-out occurs. This is sup-
posed to mean that things can happen quickly and
before the worst impacts of a disaster strike.

Contingency plans currently involve the usual ar-
ray of targeted interventions, with all the problems
that these entail, but the principle of early action and
rapid response is definitely a good one; although
such plans need to be held in place and updated in
all the years in between pay-outs (the ARC deal for
Zimbabwe expects, but doesn’t guarantee, a one in
four year pay-out; the assumed ‘return period’).

Practical concerns
How will it work it practice? This is the first year
with the latest round of insurance, so the simple an-
swer is we don’t know. Past experience is limited in
Zimbabwe, as there has only been one payment
from a previous round in mid 2020 of USD 1.4 million
to the government and around USD 300k to WFP
(as the replica premium holder) following the poor
rains of 2019-20.
This post first appeared on Zimbabweland

FEATURE June 1 to 7 2022 Weekly Digest 12

War in Tass state news agency. since bread prices jumped 40% because unless something changes.
Ukraine That grain, however, isn’t make its way of the lack of wheat imports. “The price of a 50-kilogram (110-pound)
adds to food
price hikes, to Africa. In Cameroon, baker Sylvester He’s already let three of his seven em- bag of wheat now sells at $60 — up from
hunger in Ako says he’s seen his daily clientele drop ployees go, and worries that he will have about $30 — and the supply is not regu-
Africa from 300 customers a day to only 100 to shutter his Yaounde business entirely lar,” Ako said.

It now costs Ayan Hassan Abdirahman twice Media Partner
as much as it did just a few months ago to
buy the wheat flour she uses to make break- INDEZIPMEBANBWDEENT
fast each day for her 11 children in Somalia’s
capital.
Nearly all the wheat sold in Somalia comes from
Ukraine and Russia, which have halted exports
through the Black Sea since Moscow waged war
on its neighbor on Feb. 24. The timing could not
be worse: The U.N. has warned that an estimat-
ed 13 million people were facing severe hunger in
the Horn of Africa region as a result of a persistent
drought.

Abdirahman has been trying to make do by sub-
stituting sorghum, another more readily available
grain, in her flatbread. Inflation, though, means
the price of the cooking oil she still needs to pre-
pare it has skyrocketed too — a jar that once cost
$16 is now selling for $45 in the markets of Mog-
adishu.

“The cost of living is high nowadays, making it
difficult for families even to afford flour and oil,”
she says.

“Somalis have no place to grow wheat, and we
are not even familiar with how to grow it,” he says.
“Our main concern now is what will the future hold
for us when we currently run out of supplies.”

Another 18 million people are facing severe hun-
ger in the Sahel, the part of Africa just below the
Sahara Desert where farmers are enduring their
worst agricultural production in more than a dec-
ade. The U.N. World Food Program says food
shortages could worsen when the lean season ar-
rives in late summer.

“Acute hunger is soaring to unprecedented lev-
els and the global situation just keeps on getting
worse. Conflict, the climate crisis, COVID-19 and
surging food and fuel costs have created a perfect
storm — and now we’ve got the war in Ukraine pil-
ing catastrophe on top of catastrophe,” WFP Ex-
ecutive Director David Beasley warned earlier this
month.

Even the cost of therapeutic food for malnour-
ished children could rise 16% over the next six
months because of the war in Ukraine and disrup-
tions related to the pandemic, UNICEF says.

African countries imported 44% of their wheat
from Russia and Ukraine between 2018 and 2020,
according to U.N. figures. The African Develop-
ment Bank is already reporting a 45% increase in
wheat prices on the continent, making everything
from couscous in Mauritania to the fried donuts
sold in Congo more expensive for customers.

“Africa has no control over production or logis-
tics chains and is totally at the mercy of the situ-
ation,” said Senegalese President Macky Sall, the
African Union chairperson, who has said he will
travel to Russia and Ukraine to discuss the price
woes.

Russian President Vladimir Putin pressed the
West last week to lift sanctions against Moscow
over the war in Ukraine, seeking to shift the blame
from Russia to the West for a growing world food
crisis that has been worsened by Ukraine’s inabil-
ity to ship millions of tons of grain and other agri-
cultural products while under attack.

Putin told Italian Prime Minister Mario Draghi
that Moscow “is ready to make a significant contri-
bution to overcoming the food crisis through the
export of grain and fertilizer on the condition that
politically motivated restrictions imposed by the
West are lifted,” according to the Kremlin.

Western officials have dismissed the Russian
claims. U.S. Secretary of State Antony Blinken has
noted that food, fertilizer and seeds are exempt
from the sanctions imposed by the U.S. and many
others on Russia.

Meanwhile, Ukraine has accused Russia of loot-
ing both grain and farm equipment from territo-
ries held by its forces. A Russia-installed official in
southern Ukraine has confirmed that grain from
last year’s harvest there is being sent to buyers in
Russia, according to a report Monday by Russia’s

FEATURE June 1 to 7 2022 Weekly Digest 13

Along with the shortfall in wheat imports, The organization says it plans to address tions are likely to take years, not months. its,” Sall said. ”We dropped millet and start-
the African Development Bank is also warn- the issues through a $1.5 billion plan that Senegal’s president says appetites can ed importing rice from Asia. Now we only
ing of a potential 20% decline in food pro- will provide farmers in Africa with certi- know how to eat rice and we don’t produce
duction on the continent because farmers fied seeds, fertilizer and other help. Reduc- pivot more quickly. He’s encouraging Af- enough. We only know how to eat bread.
are having to pay 300% more for their im- ing dependence on foreign imports is part ricans to consume local grains that were We do not produce wheat.”
ported fertilizer. of the strategy, but those economic transi- once the staples of their diets.
— AP
“We must also change our eating hab-

POLITICS June 1 to 7 2022 Weekly Digest 14

From left: Kudzai-Vimbiso Tseriwa with Minister of Public Service, Labour and Social Welfare, Professor Paul Mavima during the 5th Global Conference on the Elimination of Child Labour in
Durban

Reflections on the 5th global conference on the
elimination of child labour, durban – south africa

IKUDZAI-VIMBISO TSERIWA end of 2022 as there has been huge regression in post lockdown resulted in higher numbers of child maintain regular attendance. Universal social pro-
n the week past, 15 to 20 May progress due to the COVID-19 pandemic. Child la- labourers with children trying to supplement the tection with specific focus on children and the
2022, the South African gov- bour is mostly prevalent in the agricultural sector household income and some simply trying to sur- vulnerable provides income support and helps
ernment in collaboration with which accounts for 70% of all children in labour. vive. towards fighting poverty. While social protection
the International Labour Organ- Worryingly, the age group of 5-11 years is dispro- What are the solutions strengthens the household economy, it is even
isation (ILO) and the Alliance 8.7 Deliberations at the global conference showed more important to provide decent work for par-
hosted the 5th Global Conference portionately affected. Millions of children are los- that we have all the tools in the toolbox and ents and support to strengthen livelihoods. The
on the Elimination of Child Labour. ing their formative years to exploitation. This adults should be ceased with the household eco-
It was hosted in Durban, South Af- must end and about this, the world must we know what works. It is imperative to nomics and the children should be allowed to
rica with high level delegates from be categorical. Global build resilience and ensure house- learn, play and develop.
across the globe including heads of Contributory factors holds have sufficient resources
state, 120 ministers, tripartite con- It is widely known that poverty trends such to sustain themselves and keep The Children’s Forum
stituents of 187 member countries and the inability to absorb eco- as climate change children out of work. Ratifica- One of the major highlights of the 5th Glob-
of ILO, United Nations agencies, ac- nomic shocks push children tion of international conven- al Conference on the Elimination of Child Labour
ademic institutions, civil society or- into vulnerability of rights vio- tions such as ILO 183 and was the Children’s Forum, the first in the history
ganisations, non-governmental or- lations including child labour. and its related corresponding nation- of the global child labour conference. It provid-
ganisations, media and an impor- Global trends such as cli- al legislation and policies ed for children to participate in the conference
tant first, child delegates. It was the humanitarian are the first step towards through an intergenerational dialogue where chil-
first conference to be held on the Af- mate change and its related combating child labour. dren raised their issues and jointly discussed solu-
rican continent and strategically so humanitarian consequenc- tions with stakeholders from ILO, the UN and gov-
since Africa has the highest number consequences, COVID-19,es, COVID-19, food insecu- however, legislation on ernment. Young people from 10 counties around
of children in labour. The conference its own is insufficient. the world were represented. The lived experiences
was also significant because it is the rity, the war in Ukraine, mi- It must be comple- and shared perspectives of children were shared
last one before the 2025 deadline to food insecurity, the war ingration trends, econom- mented by strict en- during the sessions. The children focused on six
end child labour as the world works forcement and robust thematic areas where they developed problem
towards achieving Target 8.7 of the ic crises and the energy strategies to create a statements and proposed solutions.
Sustainable Development Goals – to Ukraine, migration trends,crises are compounding President Ramaphosa in opening the confer-
eliminate child labour by 2025. conducive environ- ence stated that, “The world has stopped to listen,
factors that have pushed ment. Access to uni- children have stated that they need to be heard.”
To quote one delegate, “child la- economic crises and theeven more children into The legacy of child participation was started in
bour is not an act of God but a man- South Africa and it would be amiss if this is not
made social-ill and the culprits are work. carried on through future conferences. The out-
none other than those that are gath- The COVID-19 Factor versal, free, compulso- comes of the Children’s Forum formed part of the
ered here, in Durban”. The general Initially, COVID-19 ac- energy crises are ry and quality educa- conference outcomes and the Durban Call to Ac-
sentiments throughout the confer- tion is best practice for tion. However, the true evidence of children’s par-
ence were that we cannot contem- tually had the conse- compounding factors ending child labour. It ticipation is yet to be seen in the implementation
plate or postpone ending child la- quence of reducing the in- makes economic sense of the children’s recommendations post the con-
bour, immediate action is required. that have pushed evencidents of child labour be- for children to be ins ference.
school as the community, “We can wait for the 6th Global Conference,
Global statistics cause like everyone else, nation and the world ben- sure, but the 160 million children in labour cannot
The ILO estimates that globally, children withdrew from work afford that, they would have lost their childhood” –
over 160 million children are involved and went home. Howev- more children into efits from the skills develop- Kabwe from Zambia (Dialogue Works Campaign).
in child labour. Of that number, 90 er, when lockdowns began to ment. Thus achieving Sus- The Zimbabwe Situation
million are from Africa. The ILO es- be relaxed an estimated 9 mil- work. tainable Development Goal 4 I had the opportunity to meet with delegates
timates that a further 8 million chil- lion more children were plunged from Zimbabwe and the honour to interview the
dren will be in child labour by the into the labour market. COVID-19 on quality education also con- Minister of Public Service, Labour and Social Wel-
tributes to eliminating child la-
disrupted education all across the bour. It is important to expand the
globe and across the economic spec-
trum. The rich and poor alike were affected educational infrastructure and spac-
es to include both physical and virtual spac-
although some adjusted quicker and took edu-
cation to virtual platforms, thus creating the digi- es to close the digital divide. School feeding pro-
tal divide. The economic impact of COVID-19 and grammes that ensure that children have a meal
the failure of many children to return to school a day at school provide incentive for children to

POLITICS June 1 to 7 2022 Weekly Digest 15

fare, Professor Paul Mavima to un- must end. The global infrastructure is there, na- exponential rise in child labour. I refuse to believe because it is disgraceful and unacceptable that
derstand the situation of child labour tions have made commitments and the strategies that the world is too poor to protect all of its chil- in the 21st Century we are the continent with the
in Zimbabwe. He reaffirmed Zimba- to end child labour are known. What is left is to put dren. Deliberate efforts and sustained action plus highest number of children in labour.”
bwe’s commitment to ending child resources behind action and not become com- political will are required to end child labour.
labour highlighting that from the 4th placent. It is time to walk the talk and stand by the One can watch the recorded sessions of the
Global Conference in Beunos Aires commitments made. Close the gap between pol- Nobel Peace Laureate Madam Leymah Roberta conference on www.5thchildlabourconf.org
Argentina, government has ratified icy and implementation. Gbowee challenged governments to honour their
several international and ILO con- commitments even when the lights and cameras Kudzai-Vimbiso is a child protection social
ventions. He hastened to acknowl- There was a resounding call to action in Durban. are off. worker. Follow her on Facebook and Twitter @
edge that ratification of international Unless there is accelerated action, there will be an KudzaiTseriwa
instruments on its own was not suf- She said and I quote, Africa should take the lead
ficient but deliberate effort was re-
quired. He stated that according to
recent data from the Multiple Indi-
cator Cluster Survey (MICS, 2019),
out of 4,2million children aged be-
tween 5-17years in Zimbabwe, 26%
were exposed to incidents of child
labour and that government was
concerned about such a high figure.
He shared some interventions that
government has adopted in order
to curb child labour including access
to education through the Basic Ed-
ucation Assistance Module (BEAM),
school feeding programmes, social
protection through the Harmonised
Social Cash Transfer (HSCT) and in-
spections in various sectors that per-
petuate child labour. The Minister
showed the impact of the broader
macro-economic situation on fam-
ilies and committed to addressing
these issues, creating decent work
and ending poverty as a way of end-
ing child labour.

The Durban Call to Action
Child labour in all its facets is an
enemy of children’s development,
their future and our collective pro-
gress. In a world that is exceeding-
ly developing and wealthier, we have
more children in child labour despite
the 1st, 2nd, 3rd and 4th global con-
ference. This is unacceptable. Ex-
ploitation of children is not only il-
legal but it is immoral thus making
child labour a social justice issue. The
2025 target for ending child labour
is under threat. The workshop era

INTERVIEW June 1 to 7 2022 Weekly Digest 16

The crisis is worse than
2008, warns Hawkins
P rominent economist Tony
Hawkins says Zimbabwe is I do not think there was any doubt thought (former British prime minister) Da- on, saying the same thing now three years
in a worse off situation com- about that. vid Cameron and (former US presidents) down the road.
pared to 2008 when the George Bush and (Barack) Obama and
country’s economic crisis Whether it will affect reengagement others that it would be possible to have a What is difficult about it is that, for ex-
culminated in the collapse of the local time alone will tell. positive economic relationship with China, ample, the freeze on bank lending lasted
currency. but only political differences. all of seven days and it is very difficult.
We cannot make that assumption at this
Hawkins (TH), a leading economic ex- stage. Now the thought is that the economics People have been organising seminars
pert in the country, told Alpha Media are not so easy to organise, that China is and breakfast meetings and so on to an-
Holdings chairman Trevor Ncube (TN) Without access to international capital a very strong economic power and a real alyse the president’s statement, but it has
that “the fabric of the economy has we are as a country under investing. threat to Western economic norms and I changed in fundamentals even before
weakened.” think that is a problem. you have had the breakfast.
In fact, that has been the problem going
Below are excerpts from the interview. back probably 40-50 years now. TN: With that being the reality that we So events are moving pretty quickly and
TN: Professor Tony Hawkins, welcome face one would have said what is our self- that I think goes back to your first ques-
to In Conversation With Trevor. That is why per capita incomes are interest? tion, is the situation worse than it was in
TH: Morning Trevor. probably no higher than they were at in- 2007/8.
TN: Tony, I do not take for granted your dependence, why we have pretty much Our self-interest is to put our house in
being here. I know you are busy, but I static employment in the formal sector order so that we create jobs, so that we There are hopes that by marginalising
thought given the crisis that we are go- and we rely so much on the informal sec- have a vibrant economy and that should the auction you now are shifting foreign
ing through let me see if I can tap into tor to generate income. dictate, which direction we go. currency trading to the interbank market,
your wisdom. but you have this limitation of US$10 000
I have been reflecting Tony, I cannot There are a lot of structural issues that TH: I agree, but politics is the art of the a week per client. That obviously cannot
remember being in such a chaotic envi- as I say, I sound like a broken-down gram- possible. last, it is going to have to change I think.
ronment economically speaking where ophone record, but need a solution that
there is lack of consistency and lack of goes beyond economics and it has to be There is no doubt in one of the things The problem that is bothering Govern-
predictability. political. that the Russian invasion has brought ment, and one has sympathy with them, is
Is that your sense too? When were we home to me and I am sure to a lot of oth- that all we are seeing so far is the market
last here? TN: So it appears to me that it is lack of er people is the way that a number of Afri- chasing the parallel. Obviously, the aim is
TH: I think it is a close call, but 2007/08 political will? can countries, many African countries, still to converge. There is no sign of that yet,
would probably be the time that is most feel the strong attachment to people like maybe it is coming hopefully, but that is
similar, but different. From what you are describing we have Russia and China for what happened in the aim of the policy. Even then you have
Different because in that dozen years or been here before, we know what the the last half century or post-colonial peri- to ask the question, what are we converg-
so things have got worse in terms of un- problem is. od and pre-colonial period, whatever you ing with? I mean who wants a Zimbabwe
employment, in terms of poverty and in want to call it. dollar?
terms of the state of infrastructure, the So why don’t we move on and deal
level of investment and so on. with the problem and find a solution to I think that has certainly coloured think- And that to me is the key issue, how
So, in that sense, the fabric of the econ- our economic problems? ing even in countries like South Africa do you restore confidence in a currency
omy has weakened, we are now more de- through its ties with the Brics and so on, which wherever you go you do not see it
pendent than before I think on mineral TH: I do not think I would agree with does have strong ties, economic ties with used any longer? You talk to businesses
exports and tobacco and particularly de- lack of political will because I think it is just the likes of Russia and China and so on. and they will tell you 70% and over proba-
pendent on remittances and so on. a question of disagreement on political bly, something like that is US dollars. The
It is different, some regards worse and, basis and principles and so on. One can understand that. Just the other ZWL (Zimbabwe dollar) has lost traction,
in some regards, not as bad. day the US treasury secretary Janet Yellen let us use that word, and going back it is
So that is a bit of a cop out answer. You see if you see what is happening said look countries are going to have to going to be very difficult. Is it too late to
TN: What are the similarities when you in the world economy today, the global choose, are they on our side or their side, go back or does Zimbabwe have to re-
look back between now and 2008? economy is de-globalising, probably two and I think that is the kind of talk that gov- dollarisation again?
TH: The similarities I think are that we or three years now. ernments must be thinking about, African
have had two bouts of hyperinflation since governments all over. I think that is the choice facing the
the turn of the century. Probably the pandemic set it off. country at the moment.
We have had now, this week we will This has given us a different world in TN: Let us look at our problems as re-
probably get 100% plus inflation figures. which we live and we are now back, it is flected by what has happened this week TN: There is a sense Tony, that there is
So we will back to three figure infla- fair to say, into Cold War 2, but it is a dif- and last week. no country in the world that dollarised
tion for the third time in less than 15 years ferent cold war in the sense that it is a cold and was able to get out of dollarisation?
I suppose. war between authoritarian governments So we had 100% depreciation of the lo-
So, the similarities are there, a bit like and democratic governments if you like, cal currency, and we had a threatened Is that the quandary that we find our-
Groundhog Day where we are sort of go- rather than just purely East and West shutdown by citizens. selves in?
ing around the block and coming back which is what it was before.
where we started. So then if you make that kind of as- Then we saw the president come up TH: Yes, I think that is probably true.
We have changed the currency, first to sumption, where does Zimbabwe stand? to announce what were supposed to be There are cases like Israel and so on where
the United States dollar, now for a dozen Is Zimbabwe authoritarian with its ties measures to restore confidence, preserve there were very high levels of dollarisation
years we have been trying to find a way with China and Russia? value, restore macroeconomic stability. and they have now gone back to their
out of dollarisation. The statements that have been made own currency, but it is very difficult.
Officially we are de-dollarising, but last by political leaders in the not too distant What is your assessment of those
week we announced we are going to pay past, are we as a country are we lurching measures? I struggle to think of any country that
30% of grain purchases in US dollars and or edging towards the authoritarian side. has abolished use of its own currency
so on. Does that mean that reengagement TH: I think one needs to put all of this as has happened here in 2009 and then
So, it is, as you said in your intro, it is pol- may never happen or it will be very diffi- into context. gone back to it. That is slightly more diffi-
icy inconsistency. cult to achieve. cult than we think. Quite a lot of countries
Whether policy was as inconsistent as it We will be reengaging with the authori- TN: Sure. in emerging markets; Asia, Latin America,
was a dozen years ago, I cannot remem- tarians rather than West, that is one possi- TH: We have gone back over the last Africa have quite high levels of dollarisa-
ber. ble explanation. quarter of a century with sets of measures tion in terms of dollars as a proportion of
But the similarities are that we have not TN: What hope is there for us? Reen- of different kinds, (former Reserve Bank of total.
grappled with, the problem has not been gaging with China, reengaging with Rus- Zimbabwe) governor (Gideon) Gono when
solved, it is still there. sia? he was sort of the economic czar up until  “In Conversation With Trevor” is
I think it is a structural problem in terms Can we examine those two possibili- dollarisation in 2009. a weekly show broadcast on YouTube.
of the balance of payments and the ex- ties? Then we had the attempt to de-dollarise, com//InConversationWithTrevor. Please
change rate, and I would argue that with- I mean Russia is in a war with the rest of which is what we are still doing. get your free YouTube subscription to this
out successful reengagement, to give the world and Ukraine. Then we have had one set of new meas- channel. The conversations are sponsored
Zimbabwe an element of debt restructur- China seems not to be so focused on ures after another, and people standing by Nyaradzo Group.
ing, debt forgiveness and resume that first Africa as it were, at least not accord- like (RBZ) governor (John) Mangudya re-
with global capital markets I really do not ing to the terms that we thought Chi- member in 2019 him saying he is preserv-
see where the endgame is. na would be engaged with us or rather ing value, we have a stable currency and so
TN: Now the way you have out it, bal- we do not seem to be in charge of those
ance of payments, restructuring that, terms?
engagement. TH: I think it is true certainly that we are
That looks like a very big one. Presi- not in charge of those terms.
dent (Emmerson) Mnangagwa and his I think it is a bit difficult to know quite
government have been saying they are where China’s thirst is at the moment.
trying to reengage. I think they have a number of issues on
Are you seeing anything that is mov- their hands.
ing us toward a solution to the crisis that Obviously, the problems they are having
we face? with Covid is very critical at the moment.
TH: Well, I would have thought we were But also, the extension of the exist-
moving away from reengagement in the ing leadership for a third term and so on
sense that for example, the stance taken which is a break from the past.
on the Russian invasion of Ukraine has ob- I think China in some ways has been a
viously widened the gulf with the West. disappointment for the West.
Let me put it this way, it was always

OPINION June 1 to 7 2022 Weekly Digest 17

The future of Zim’s interest rates

TTAFARA Mtutu banks and makes it less lucrative which monetary policy measures bwe’s inflation rate is often driven cal productive capacity.
HE Reserve Bank of Zim- for one to keep funds in an inter- are neither restrictive nor expan- by supply constraints, which large- This presents a catch-22 for
babwe maintained the est-bearing account. sionary, and 1% is common among ly vortex on the availability, or lack
key policy rate at 80% several economies. thereof, of foreign currency. monetary and fiscal policymak-
in its latest monetary The result is an aggregate in- ers who face opposing economic
policy committee meet- crease in expenditure as the al- The finance minister alluded to An adequate supply of foreign demands. On one end, lower
ing shortly after releasing a worry- lure of spending or utilising cheap an inflation rate target ranging be- currency for imports of raw materi- interest rates will support local
ing year-on-year inflation rate of money outweighs saving it. On the tween 25% and 35% in December als on a stable currency exchange businesses but increase specu-
96,4% for the month of April. other hand, an increase in interest 2022, although latest CPI figures often leads to low inflation. lative borrowing that was instru-
rates makes it expensive to bor- point to an inflation rate expecta- mental in the local currency’s de-
The move to maintain the high row money and it increases the at- tion of c.380% by year end. A brief look at the inflation trend preciation in 2019.
interest rate most likely finds its tractiveness of keeping funds in an before and in the few months af-
rationale from lessons learned in interest-bearing account, which According to the finance min- ter the inception of the foreign On the other, higher interest
2019 when the country moved subsequently leads to a decline ister, Zimbabwe’s expected GDP currency interbank auction sys- rates will curtail speculative bor-
back to the Zimbabwean dol- in aggregate expenditure and a growth for 2022 ispegged at 5,5% tem shows that the availability of rowing but choke businesses that
lar (Zimdollar), and low interest slowdown in economic growth. and a long-term GDP growth foreign currency was key in slow- regularly require lines of credit for
rates birthed “cheap money” that trend, based on historical growth ing down the inflation rate from their working capital and long-
fuelled speculative borrowing as One might wonder why policy- figures since 1999, is approximate- 838% in July 2020 to 52% in Sep- term capital requirements. We
well as the gross depreciation of makers need to tame economic ly 0,1%. Based on these assump- tember 2021. We opine that the note that Zimbabwe’s economic
the local currency relative to the growth, and the answer to that is, tions and the Taylor rule, a rea- inefficiencies within the auction challenges require more than a
United States dollar (USD). any growth beyond what is sus- sonable interest rate for the year system, among other factors, have revision of interest rate to slow
tainable often leads to inflation would be just over 200%. Such a prompted a renewed period of inflation down. We are cognisant
Latest inflation trends and cur- and anunconducive economic rate would theoretically improve currency depreciationon the par- of the difficult and conflicting
rency depreciation are reminis- environment. the central bank’s odds of closing allel market. measures that policymakers have
cent of theturmoil that played out the year with a Y-o-Y inflation rate to deliberate in the short-term.
in 2019, and policymakers have A theoretical way to determine of approximately 30%. Given Zimbabwe’s extensive re-
expressed their resolve to con- the appropriate level of interest liance on foreign currency for raw However, we maintain that
tain the country’s second bout rates is the Taylor Rule. In this con- While 200% sounds abnormal materials, a simple substitution ef- these should incorporate long-
with the volatile macro-economic text, the Taylor rule is an equation for a key policy rate, higher rates fect simply manifested as the sup- term measures that can ensure a
environment. that expresses the appropriate have been set by policymakers in ply of foreign currency that dried stable medium of exchange,such
nominal short-term interest rate several countries throughout his- up on the interbank was replaced as resuscitating local production
One tool that policymakers of- asa summation of the neutral real tory. Croatia deliberated on an in- by supply of foreign currency on capacity, building foreign curren-
ten use to control the macro-eco- short-term rate, an inflation tar- terest rate of 2,647% in September the more volatile parallel market. cy reserves, restoring confidence
nomic environment is the interest get, the difference between the 1993, Brazil’s interest rate reached in local capital markets, integrat-
rate. A very low interest rate is of- long-term gross domestic product 355,086% in February 1990, and The volatile parallel market rates ing with the global community,
ten at the heart of every expan- (GDP) growth trend and expected Argentina’s interest rate soared to subsequently rippled to the price and addressing corruption and
sionary monetary policymeasure, GDP growth, as well as the differ- 557% in November 2001. of the end-product and have opaque property rights, among
while high interest rates are ef- ence between the expected infla- largely resulted in the high infla- many resolutions.
fected when policymakers seek to tion rate and the target inflation However, the Taylor rule makes tion rates.
slow economic growth to sustain- rate. Given a set of reasonable as- a bold assumption that inflation Tafara Mtutu is a research an-
able levels. sumptions, one can approximate is driven by strong demand for The volatile parallel market rates alyst at Morgan & Co Research.
the appropriate level of interest goods and services, which is not have added to the burden of busi- — [email protected] or
A low interest rate makes it rates for Zimbabwe. The neutral entirely the case in Zimbabwe. nesses and increasing interest +263 774 795 854.
cheaper to borrow money from real short-term rate is the rate at rates have further punished busi-
Unlike countries that experience nesses at a time when measures
demand-driven inflation, Zimba- should be aimed at supporting lo-

COLUMN June 1 to 7 2022 Weekly Digest 18

Dignity. What dignity for the
long-suffering Zim workers?

This week, it was proposed by parliament will soon get 100 new ambulances.
that the country’s owner be summoned to “Each province is set to receive between
the National Assembly to explain why he is eight to 10 ambulances once they have
allowing corruption in the country. been all kitted,” we were told, amid much
“Parliament must move a motion to heavy breathing and excitement.
summon President Emmerson Mnangag- According to the media, which must be
wa to the National Assembly to answer tired of reporting all these massive gov-
questions about rampant corruption in his ernment successes, the Ministry of Health
government, which were flagged by Audi- had 282 ambulances in 2018. Out of those
tor-General Mildred Chiri in her 2020 re- 282 ambulances, 134 were working while
port,” according to Temba Mliswa. 148 were rusting away.
“The president is presiding over a dys- Muckraker read that the World Health
functional government, a corrupt govern- Organisation recommends an ambulance
ment,” Mliswa said. to population ratio of one ambulance for
It must have been a double shock for every 50 000 people.
Mnangagwa. First, the very idea that he We should be just grateful that our
must explain to elected representatives owners have found it in their hearts to set
why his government is corrupt is a huge aside a few dollars from their 4X4 budget
surprise. to throw a few ambulances our way. What
Since when is a Zimbabwean president would we do without our selfless, generous
accounta- leaders?
From leading railing ble to an- Tidbits More
firm to borehole drilling yone?
decep-
Second, tions
it must
have been Those
who have
been
a shock making
to be lec- noise say-
DR Amai II is increasingly operating tured on Twitter: @MuckrakerZim ing gov-
like a government official. corrup-
This past week she was the tion by ernment
guest of honour at the African El- has broken its promises must be finishing
ephant Conference held at the launching” some boreholes in Harare’s Glen- Temba, of all people! the week with egg on their faces.
Hwange National Park where 19 countries had view. They were oblivious of the symbolism. What dignity?
been invited. In a May Day speech this week, Mnan- The Minister of Dodgy Public Service,
For a country, which claims to be aiming for gagwa came out to praise workers for Paul Mavima, said while we were prom-
Those who are familiar with statecraft will a middle income status in 2030, drilling bore- their role in the booming economy. ised free education every year under the
tell you that was an inter state meeting and holes in urban areas where an efficient wa- “Your dignity as workers, your value, New Deception, we must now expect it
what Dr Amai II did was the responsibility of ter system was bequeathed by colonisers four wages and salaries must be commensu- next year, just in time for elections.
government officials. decades ago can’t be a cause for celebration, rate with the resultant improving macro- “I am glad to announce that now the
especially by the highest office. economic fundamentals,” he said. President has committed to that, starting
I know few of you will understand what I He then thanked those working in the in 2023, there is going to be free primary
am talking about since it’s an issue often dis- It is a signpost for regression and a slide into informal sector and those in the Diaspora, education, so all those who are going to
cussed by PHD holders like us kkkk, but I need the Stone Age. It was yet another week where which he managed to do without asking go into public schools will not be required
to mention it so that you understand when I our leaders had to gift the rest of the world why those two groups were there in the to pay basic tuition fees, and the state will
say rolling tanks against Gushungo was the with trending memes that will haunt us for the first place. continue to support those who are vul-
height of hypocrisy by the Lacoste gangsters. rest of our miserable lives. nerable with things
He promised that he like uniforms, ex-
They accused me of staging a bedroom Monica Mutsvangwa was foisted on an would ensure that “the
coup against Baba and they had to put a 93 event to launch superstar and entrepre- improving macro-eco- aminations fees
year-old under house arrest. neur Rihanna’s cosmetic range in Zimbabwe nomic fundamentals Your dignity as and stationery.”
known as Fenty. Comparisons are drawn be- Who are we not
Dr Amai II is now an active participant in ing made with launches in other countries translate to a dignified life workers, your to believe that this
government, but you are not seeing it yet. where young and glamorous celebrities took for workers”. promise will be
the centre stage. value, wages andWith rising inflation fig- fulfilled this time?
She now issues statements on government Did the govern-
letterheads and commandeers state resourc- If Rihanna happens to see those pictures of ures, an exchange rate in ment even lie to
es, including personnel, to undertake projects the Harare launch, she might even consider free-fall and falling in- salaries must be
to build her own image. withdrawing her products kkkkk comes, it is hard to see us?
which “improving macro- Expert on Zim
Maybe she is preparing for a higher calling, The only thing that might save you is Bona’s economic fundamentals” commensurate In the United
but she was not elected by anyone. appearance at the event. with the resultanthe has been given by his Kingdom, a Lord
James Oates has
I was not doing half the things she is doing She was the only one with style and its am- advisors. More likely, he stood up in their
today when the Lacoste gangsters rebelled ple proof that an apple doesn’t fall far from the improving macro-was just given a speech
against Gushungo and humiliated him. tree. parliament to de-
from another country to clare that one fac-
Munopengaaa! NRZ and boreholes read. economic
Coups One of the government mouthpieces re- After all, it must have tion of the op-
African Union leaders were in Malabo, cently announced that the National Railways been a shock to him to position is better
Equatorial Guinea this past week where they of Zimbabwe (NRZ), once a leading railway learn that there are still fundamentals than another.
held two extra-ordinary summits. company in southern Africa, was venturing workers in the country,
The first to be held was the ‘Humanitarian into borehole drilling. given how hard he has He has en-
Summit and Pledging Conference’ followed An NRZ official was quoted celebrating that dorsed Nelson
by the ‘Extraordinary Summit on Unconstitu- the parastatal was “set to acquire a vehicle worked over the past few Chamisa’s CCC as the legitimate oppo-
tional Changes of Governments in Africa.’ mounted borehole rig” years to destroy the economy.
Ngwena was conspicuous by his absence “The vision of the unit is to be the leader in Momentous time sition, while calling Douglas Mwonzora’s
and his Foreign Affairs minister, who naturally the provision of borehole drilling services in There was massive news this week, out MDC Alliance as “Zanu PF’s puppet op-
should have stood in for him, chose to go to Zimbabwe,” the official gushed. Phew! of the mega deals briefcase. position faction”. Lord Oates once taught
Davos instead of Malabo. What a shame! It was announced that assembly kits for in Zimbabwe, which, in the tradition of
We can only speculate why the Lacoste Since they came into power the Lacoste buses had finally arrived from China. Western politicians, makes one a leading
gangsters decided to give Malabo a wide gangsters have announced not less than four “Kits for the assembly of 21 buses arrived expert on all things Africa.
berth, but I can tell you that Gushungo’s spirit “mega deals” between NRZ and leading com- in Zimbabwe yesterday from China, as Ha- All this, of course, made Chris Mutsvan-
will haunt them for the rest of their lives. panies from countries such as Russia, Turkey rare moves to reduce the forex import bill gwa, the garrulous Zanu PF mouthpiece,
Besides the guilty consciences, Equato- and China in their alleged efforts to revive the and create more jobs through assembling angrier than usual.
rial Guinea leader Teodoro Obiang Nguema rail transporter. buses locally,” reported the Herald, a lead- “They now arbitrate and abate fights
Mbasogo was the only African leader who Yet after five years the only thing they can ing authority in the business of fact-based within that opposition movement,”
stood with Baba at the time of his greatest show for their efforts is a borehole drilling rig! and credible journalism. Mutsvangwa said at a press conference.
need. We are a cursed country With these 21 buses, all these people us- Of course, choosing which opposition
Nguema, who himself rose to power Lies ing the public transport crisis as an exam- party is legitimate and which one is not,
through unconstitutional means after ousting As they say lies have short legs. ple of government’s failures will be put to is not the job of distant British lords in
his uncle Francisco Macias Nguema in 1979, It was revealed last week that Zimbabwe will shame and finally silenced. tweed jackets. That is Zanu PF’s job.
refused to be persuaded by the coup gang- be importing 400 000 tonnes of maize from According to the headline, the 21 bus- We must be grateful
sters to turn against Gushungo. Zambia and Malawi. es herald — pardon the pun — the arrival According to Mutsvangwa, we must all
It is public secret that he was a big admirer This is happening barely a year after we were of the world-class public transport system be grateful for what Zanu PF has done for
of Baba and this is why he has ruled his coun- told that the country had harvested its biggest we were promised in 2018. us.
try since the coup against his uncle, making quantities of maize in over two decades. As the President said in his May Day “This is a constitution begat of a military
him one of the longest serving leaders in the There was also hype about the pfumvudza speech: “During peak hours, workers must struggle which gave them the democra-
world! scheme that was said to be pushing yields to be the transported with the greatest of cy which they have. Had it not been for
Rihanna dizzy heights. ease.” Zipra and Zanla, which waged a war, many
The obsession by the so-called second re- Inputs were dished to farmers like confetti Who are we not to demand national cel- of them would have been cattle herders,
public with “official launches” has gone be- at a wedding. ebrations for the arrival of bits and pieces hunting birds with catapults,” he said.
yond the ridiculous. What the huge maize imports tell us is of 21 buses? We deserve a national public Surely, after many of us spent the better
Yesterday the likes of Joji and the mental that these gangsters have been using pro- holiday to mark this momentous day. part of last week expending all our ener-
health nurse were singing themselves hoarse grammes such as command agriculture and gies on either chasing after or tending to
on social media about Ngwena “officially input schemes as looting avenues. Ambulances
Munopengaaaaa! There was reason for more celebrations, a herd of goats in Murehwa, Mutsvangwa
Dr Amai Stop it! PhD (Fake) after it was announced that the country should be really proud of us.

AFRICA June 1 to 7 2022 Weekly Digest 19

Kenya Elections 2022:
Misinformation circulating online

Official campaigning in Kenya's elections is now Supporters of Raila Odinga, the other main presiden- Kalenjin community and Odinga is Luo).
under way ahead of voting in August. tial challenger, have been sharing a video which they claim So, an endorsement from the son of Kenya's former Pres-
Already, fake endorsements for the two shows Mr Ruto's running mate, Rigathi Gachagua, saying his
main presidential candidates are being shared coalition, Kenya Kwanza, will - if elected - break up Kenya's ident Mwai Kibaki - a Kikuyu - would be a highly coveted
widely online. largest telecommunications company, Safaricom. prize. A fake Twitter account has appeared, purporting to be
We've been taking a look at some of the misleading social owned by Jimmy Kibaki, the former president's eldest son.
media posts and videos circulating. A genuine interview, given by Mr Gachagua to a local radio
station, was posted online with a sub-titled English transla- The account, which has since changed its name, was cre-
Barack Obama hasn't endorsed a candidate tion which read: "We will kill it [Safaricom] and give that mon- ated in February and recently tweeted support for William
President Uhuru Kenyatta is standing down after two ey to the people as handouts." Ruto's candidacy.
terms of office.
One of those hoping to replace him is his deputy, William But speaking in the Kikuyu language, Mr Gachagua did This account is just one of many fake accounts using Jim-
Ruto. not say this. my Kibaki's name, and he has issued a statement calling on
A video has emerged, purporting to show the former US Kenyans to ignore them.
President, Barack Obama, announcing his support for Mr What he actually said was: "Instead of having one large
Ruto. company called Safaricom paying taxes, if you take the mon- No, President Kenyatta can't take part
The video has however been manipulated and has nothing ey from the large company and give it out to many people... The constitution limits a president to two terms, which
to do with Kenya's election - Mr Obama has not endorsed the tax from the many put together will be 30 times greater means Mr Kenyatta cannot stand for election again this year.
any candidate. than that of the large company." However, some online users, including at least one leading
The widely-shared video has been doctored to show Mr politician, have been suggesting that he could stand as the
Obama unveiling a large image of his chosen candidate, with It was a proposal to redistribute profits to support smaller deputy-presidential candidate.
fake banners across the screen suggesting it is from a BBC enterprises, and clearly not one to "kill" corporate business. President Kenyatta is stepping down after serving for two
News story, and was originally posted on a TikTok account. terms
The text has a grammatical error, the type faces are wrong In a curious twist to this story, a press release appeared on- "Thinking out loud yet again :- article 137(1) of the Kenyan
and the colours of the banners don't match. line shortly after the video, supposedly from Safaricom, con- Constitution does not disqualify the current president from
The genuine video, used as the basis for the fake, was demning the sentiments expressed in the interview, which running as a deputy president!" Senator Ledama Ole Kina
filmed at the Smithsonian Institute in Washington in 2018, amounted, said the document, to "shutting down [Safari- tweeted.
where Mr Obama was unveiling a portrait of himself. com] and other major corporate firms". While it is true that this article of the constitution doesn't
Screenshot of video showing Obama unveiling his portrait explicitly prohibit this, there is another article that does rule
in 2018 The statement went on: "We wish to condemn these re- him out. Article 148 (1) says the person nominated as a dep-
No plans to break up big business marks [by Mr Gachagua] in the strongest possible terms." uty-president must be "qualified for nomination for election
as President." Having served for two terms, Mr Kenyatta is not
However, the press release was a fake and Safaricom sub- eligible under this condition.
sequently released its own genuine statement on Twitter to
confirm this. — BBC

Both leading presidential candidates are seeking support
from the vote-rich Kikuyu ethnic group. (Ruto is from the

AFRICA June 1 to 7 2022 Weekly Digest 20

Mauritius protests: “When people
feel lost, they resort to revolt”
In late-April, protests against the soaring cost
of living erupted in cities across Mauritius. In Port Louis during the "go slow" protest. Credit: Vel
Beau Bassin, Rose Hill, and the capital Port Moonien.
Louis, large groups of frustrated residents –
particularly from low-income neighbourhoods Police cordon off roads leading to parliament in
– took to the streets. Port Louis during the “go slow” protest. Credit: Vel
Moonien.
These demonstrations were largely peaceful to
begin with, but tensions rose sharply after Louis Despite this protest falling flat, de L’Estrac says
Dominique Seedeeal, an activist who had allegedly the level of popular discontentment in the coun-
participated in an “illegal protest”, was arrested. In try is high and that further riots could erupt at any
Port Louis, several hundreds of demonstrators de- moment, especially with more price rises expect-
fied Covid protocols as they congregated in front of ed. Nonetheless, he emphasises that Mauritius is
the police headquarters to demand his release. The in a better situation than countries such as Sri Lan-
crowd was eventually dispersed with tear gas and ka, where the worst economic crisis in its history has
batons, sparking violence in the surrounding area seen fuel price increases of 137% in six months.
and fresh protests in other parts of the country. Ri-
ots spread and the police deployed armoured ve- “Some comparisons are being made with the
hicles. situation prevailing in certain countries,” says de
L’Estrac. “Luckily, the Mauritian case is not the same.
By the time calm returned, several police camer- Measures have been adopted to help vulnerable
as, vehicles and property had been broken or de- groups and more are to come with the 2022-2023
stroyed. In Beau Bassin, a newly built light rail sta- Budget.”
tion was facing 13 million rupees’ ($300,000) worth
of damage. One civilian was in intensive care, and 13 — African Arguements
police officers had been wounded.
CONGRATULATIONS ZERA
In the aftermath of the protests, some media out-
lets depicted the unrest as an expression of ethnic ON YOUR 10th ANNIVERSARY
resentment among the Kreol minority and likened
the events to the 1999 riots. This interpretation was
partly prompted by a statement made by Prime
Minister Pravind Jugnauth who suggested the pro-
tests had been provoked by the political opposition
and alluded to opposition leader Rama Valayden’s
“expertise” in riots. In 1999, Valayden organised a
concert in support of the decriminalisation of can-
nabis. At the rally, the prominent Kreol singer Kaya
smoked a joint on stage and was arrested. Kaya’s
death in custody sparked four days of riots and in-
ter-ethnic violence.

For many observers, however, the drawing of this
parallel is wholly misleading and distracting.

“For the government, people cannot react with-
out being manipulated – that’s ridiculous,” says Fa-
ther Filip Fanchette, a Catholic priest who over-
saw Roche Bois, the epicentre of the 1999 riots. “No
comparison can be made between the late inci-
dents with the riots of February 1999. The present
riots can be explained by the ever-rising prices.”

Jean-Claude de l’Estrac, a former Minister of
Commerce and Foreign Affairs and former newspa-
per editor, concurs.

“The violence we witnessed is indeed the expres-
sion of exasperation and rage,” he says. “It erupted
in the neighbourhoods with the highest concentra-
tion of people in difficulty.”

As in countries across the world, Mauritius’ econ-
omy has been hit hard by the Covid-19 pandemic
and Russia’s invasion of Ukraine. The rupee has lost
20% of its value against the dollar since the start of
2020. The government has hiked up fuel prices four
times in six months and increased public transport
costs by 25-40%. Inflation is rising and the econo-
my is still rebuilding after a 15% contraction of GDP
in 2020 amid strict Covid restrictions.

This set of factors has left ordinary citizens strug-
gling to make ends meet. Dorina Caethane, a
43-year-old mother of five, can barely afford to feed
her family despite both her and her husband having
decent paying jobs.

“A bunch of watercress now costs 25 rupees
($0.60),” she says. “Sometimes, we go to sleep with
some thin soup.”

Claudette Madré, a 65-year-old pensioner is also
finding living hard despite her middle-class back-
ground.

“My husband and I used to go to the grocery
store each month,” he says. “Now we are chasing
sales. We look where food is more affordable.”

Is the government listening?
In response to the cost of living crisis, the Mauri-
tian government has invested millions of rupees to
subsidise basic foods and is expected to announce
further supportive measures in its national budget
in early-June. For now, however, many Mauritians
believe the government’s actions have been insuf-
ficient and see the ruling Militant Socialist Move-
ment (MSM) as out of touch.
The opposition has tried to capitalise on this.
It has called for elections and tax cuts, and it or-
ganised a motion of no confidence in the govern-
ment that was voted down on 13 May. This week,
the opposition party Linion Pep Morisien (LPM) also
called on drivers to participate in a “go slow” pro-
test through the streets of Port Louis in response to
the latest 10% rise in fuel prices. The slow-moving
convoy, headed by activist Bruneau Laurette at the
wheel of a BMW, only attracted a couple of doz-
en cars.
Police cordon off roads leading to parliament in

OPINION June 1 to 7 2022 Weekly Digest 21

Bite- vestments in aviation infrastructure to
size of open up the country to more regional
tourism trade.”

EBEN MABUNDA According to the most recent
World Tourism Organisation’s Tourism
H OME to one of the Seven Barometer:“Based on the latest avail-
Natural Wonders of the World able data, global international tourist
— the majestic Victoria Falls, arrivals more than doubled (+130%) in
Zimbabwe is endowed with January 2022 compared to 2021 - the
iconic natural resources, such 18 million more visitors recorded world-
as wildlife and beautiful scenery. wide in the first month of this year
The Hwange National Park is the equals the total increase for the whole
country’s largest wildlife reserve of 2021.
stretching for over 30 000 km² — equal
in size to the European nation of Bel- “After the unprecedented growth of
gium. The Park is home to the world’s 2022 and 2021, international tourism
highest concentration of elephants. is expected to continue its gradual re-
This translates to a tourism industry covery in 2022”. Listed firm, Rainbow
that has enormous growth potential. Tourism Group’s digital platform, “Gate-
Zimbabwe’s tourism historically con- way Stream” has over 52 000 rooms
tributed 7% to Zimbabwe’s gross across 30 African states. Its CEO Ten-
domestic product (GDP), with the sector dayi Madziwanyika is on record for
employing just over 5% of Zimbabwe’s having said: “We see ourselves becom-
population. ing more of a tech and marketing firm
In 2019, tourist arrivals to Zimbabwe with a hospitality arm in future”.
dropped by 11% to 2,3 million visitors.
The sector’s earnings followed suit, de- Eben Mabunda is an analyst and
clining 10% to US$1,25 billion. TV anchor at Equity Axis, a leading
In 2020, Zimbabwe’s Tourism Minister financial research firm in Zimbabwe.
Nqobizitha Mangaliso Ndhlovuproject- “Furthermore, over the period, government purports to Increase in- — [email protected]
ed revenue losses of up to U$1 billion in
the country’s tourism industry, owing to
travel restrictions brought about by the
Covid-19 pandemic.
The sector continued to suffer due
to the Covid-19 pandemic as tourist ar-
rivals to Zimbabwe declined by 40% to
375 799 in 2021.
Zimbabwe's tourism sector account-
ed for 4,25% of the national Gross
Domestic Product (GDP) with a value of
US$1,03 billion in 2018. In 2019, the sec-
tor accounted for 6,3% of GDP with a
value of US$1,23 billion, official records
show.
A rebound in regional and interna-
tional travel is expected in the second
half of the year, with a trickle-down ef-
fect on the regional and local tourism
sectors.
Moreover, with 2023 being an elec-
tion year for Zimbabwe, local travel is
expected to soar this year, scaling up
into 2023 as campaigns increase across
the country. This is expected to bring
relief to the local travel and tourism
sectors, which had been on the receiv-
ing end of the pandemic.
Between 2015 and 2018,tourism ar-
rivals grew by 6% per annum. In 2018,
tourist arrivals to Zimbabwe hit a three-
decade high, coming in at 2,6 million
visitors up 329% from 600 000 in 1990.
In the same year, the sector gen-
erated U$1,39 billion in the country’s
revenue. A breakdown of the aggregate
figure shows that the sector generated
US$1 billion worth of foreign currency,
22,7% of Zimbabwe’s US$4,4 billion fo-
rex earnings for 2018.
As the world recovers from the so-
cio-economic effects of Covid-19 with
vaccines being rolled out across the
world, Zimbabwe’s five-year economic
blueprint, the National Development
Strategy, aims to ramp up tourism’s
contribution to GDP from 1,1% in 2020
to 5% by 2025.
According to the blueprint:
“The growth of the tourism sector will
be anchored on increased investment
in diversified tourism products, such
as, heritage tourism, medical tourism,
and community-based tourism, among
others.
“Key flagships will be the opening
up of new tourism resorts in Kanyem-
ba, Tugwi Mukosi, and Kariba and the
development of new nodes anchored
on the Victoria Falls Special Economic
Zone, notably in Masuwe, Batoka, Gwayi
Shangani Dam, Binga, and Sijarira.

ARTS June 1 to 7 2022 Weekly Digest 22

Epic Minds’ highly anticipated
debut album Black Is Gold is out

This is it! This is Lit! These two lines aptly describe Aelsstreet (Ghana), Ingrid White (Cameroon), Flameboy Uni- Lagos, Accra and Yaoundé.
the solid body of work released today by Johan- verse (Eswatini), NhoNho (Zimbabwe), among others. Some of the notable hits on the album include Still love
nesburg production duo Epic Minds. Epic Minds is
a super versatile production outfit predominantly With an exponentially growing fanbase on TikTok where you featuring Nigerian superstar Skales, Tempted, featuring
makes electronic dance music and the new offer- the duo has earned millions of views in a short space of time, Camidoh and Love For Africa – the duo’s take of Magic Sys-
ing is an amazing potpourri of flavour and melody. Epic Minds have produced a highly musical project that fus- tem’s anthem 1er Gaou.
es Afrobeats and Amapiano elements. The production style
Formed in 2008, Epic Minds’ material was first picked up and approach on the album was consciously pan-African, Having released numerors hits with the likes of Davido,
by the Red Bull Music Studio in 2012, when the duo’s song, with emphasis on catchy melodies that makes the album a Sarz, Wizkid, Tekno and Harmonize, Skales is one of the most
“Jiva” was used in the Red Bull Beat Battle Competition. great treat for any music lover. prolific artists in Nigeria. Epic Minds’ collaboration with fast-
rising Ghanaian singer Camidoh and other artists such as
The much-anticipated Epic Minds’ debut album is Black The album is now available across all streaming plat- Tembie Craft and Khaeda gives the album an exciting sound
Is Gold is out. The 11-track album features a dynamic group forms. which takes audiences into the rich sounds of the mother-
of talented acts from across the continent, notably Skales land.
(Nigeria), Khaeda (South Africa), Camidoh, Trigmatic and The album was produced and recorded between 2021 and
2022 in different African locations, including Johannesburg, — earGROUND

SPORT June 1 to 7 2022 Weekly Digest 23

How trim a bloated squad and foster great- to Juventus, who are in the process of and Barcelona have admitted they may
Manchester er togetherness, hunger and motivation. trimming their wage bill. With the French- have to sell but the Dutch midfielder has
United plan Paul Pogba, Jesse Lingard, Edinson Ca- man and Matic going, midfield reinforce- said he would “prefer to stay” at the Nou
to fix their vani, Juan Mata, Nemanja Matic and Lee ments are being prioritised. Camp. Wolves’ Ruben Neves has his ad-
Grant are due to leave the club, or have mirers.
failing already left. Pogba seems likely to return Ten Hag would like to reunite with Fren-
squad kie de Jong, whom he managed at Ajax, — Telegraph

Manchester United have gone five GRAIN MARKETING BOARD
seasons without a trophy and just MEDIA RELEASE
suffered their worst campaign of
the Premier League era. Telegraph CONTROL AND SALE OF MAIZE AND SOYA BEANS
Sport takes an in-depth look at the
plans to evolve a failing team from this summer un- 1. The Grain Marketing Board (GMB) wishes to advise all farmers that maize, soya beans, wheat and
der new manager Erik ten Hag. barley are controlled products in terms of the following Statutory Instruments:

A defining style a. Statutory Instrument 145 - Grain Marketing (Control of Sale of Maize) Regulations, 2019.
United have yo-yoed between managers with b. Statutory Instrument 97 - Grain Marketing (Control of Sale of Soya Beans) Regulations, 2021.
wildly contrasting styles of football, philosophies c. Statutory Instrument 188 - Grain Marketing (Control of Sale of Wheat and Barley) Regulations,
and approaches since Sir Alex Ferguson retired in
2013 and been left with a Frankenstein squad and 2021.
no clear playing identity in the process.
Ralf Rangnick’s six-month interim spell may have 2. All farmers or producers of controlled grains are required to deliver the product to any nearest GMB
been a calamity but, on the upside, United felt it depot. Farmers/producers who intend to retain a portion of the product for farm feed or other
gave them time to think very deliberately about commercial usage, shall apply for exemption from GMB.
what exactly they want from the team - and the
manager they believed could best deliver it. 3. No one is allowed to sell or buy maize and any controlled product other than through GMB unless if
The core principles of that playing style new one is a bona �de contractor registered with Agricultural Marketing Authority of Zimbabwe (AMA).
manager Erik ten Hag will now seek to implement
were summed up as follows by a source close to 4. All farmers, producers and contractors are required to apply for a movement permit where grains are
the process: “The team needs attacking football, it being moved from one area to the other.
needs high energy, it needs high pace, it needs to
press. It needs to provide a platform where United 5. Trading in controlled products (buying or selling) without authority of the GMB is an offence. All
have star players who can perform and deliver. The storers, millers, stock feeders and any other users of controlled products are required to register with
club want technical ability and athletic ability but the GMB before engaging in such business.
also mental resilience and robustness.”
There have been internal debates about sys- 6. Grain Marketing Board shall be enforcing the above Statutory Instruments to ensure compliance.
tems going back to last summer but there will be Those found in breach of the regulations risk prosecution, forfeiture of the grains and a �ne three
no move to hoist a set formation on Ten Hag. Unit- times the selling price of the controlled product.
ed want their football to be readily identifiable but
flexible and unpredictable - in the best sense. “How For further enquiries contact our Risk Department on +2638677004941
the manager ultimately delivers those core princi-
pals is up to him,” the source added. Rockie Mutenha
'Outrun, outplay and outfight' Chief Executive
United are not blind to the issues Ten Hag is in-
heriting with the squad. “The analogy that has 31 May 2022
been painted is you have got three different jig-
saws that have been chucked in a box and you’re
saying, ‘Right, make something out of that’,” one
insider said. “But they’ve all got different pieces,
haven’t they?”
In the likes of Bruno Fernandes, Raphael Varane,
Cristiano Ronaldo, Jadon Sancho, Luke Shaw, Fred
and Scott McTominay, there are a core of players
around whom it is felt Ten Hag can build next sea-
son but recruiting smartly - for so long the club’s
Achilles heel - is critical.
Jadon Sancho and Luke Shaw could be key parts
of Ten Hag's new era
Jadon Sancho and Luke Shaw could be key parts
of Ten Hag's new era Credit: GETTY IMAGES
Ten Hag has been very clear at highlighting the
profile of players he wants and there are three
questions the manager, football director John Mur-
tough and United’s recruitment team have kept
circling back to when establishing which targets fit
the bill: “Can they outrun people? Can they outplay
people? Can they outfight people?”
Huge emphasis is being placed on the need for
character and leadership. Rangnick bemoaned the
lack of resilience in the team but there were warn-
ing signs 18 months ago in the collective response
to going top of the table on New Year’s Day with a
2-1 win over Aston Villa. No one expected United to
be at the summit but, after 17 games, it was also no
accident. And yet, where belief and bloodymind-
edness were required, an air of defeatism instead
took hold and the attitude was: “We’re not ready
for this”.Whether the players sensed Solskjaer’s
doubts or not, within weeks United’s title charge
had melted away. “They collapsed because they
didn’t believe it,” another source at the club said.
“They played to a self-fulfilling prophecy.”
Forget old, glitzy signings
United fans will be encouraged to hear that the
club and Ten Hag want to run with a lean squad
next season. To a large extent, the number of play-
ers out of contract next month will assist moves to

June 1 to 7 2022 Weekly Digest 24

Lock brothers find Midas touch again

TMUNYARADZI MADZOKERE Algeria. It was special having our Ambassador and Zim- to social media to celebrate the big week.
op Zimbabwe tennis brothers Benjamin and babwe delegate there to present the trophies. Thank you It was an emotional win particularly for Courtney Lock
Courtney Lock appear to have struck the right to BSI Steel for their continued support,” he wrote on his
code one more time after winning three dou- Instagram handle on Saturday. and it could be felt in his reaction to the win in Colombia.
bles titles on the ITF circuit in the last couple “It’s been one hell of a journey to get back into the
of months. Zimbabwe’s ambassador to the Sahrawi Republic, Vu-
Benjamin and Courtney Lock, who were top seed, sumuzi Ntonga presented the trophies to the country’s winners circle, so this one means a lot. Thank you to BSi
sealed a third title in exactly two month when they top tennis players. Steel Pvt Ltd for their constant support and belief in us.
scooped the second ITF M15 tournament in Algeria’s port Benjamin Lock you’re a warrior, winning singles and dou-
city Oran on Friday last week. It was the Zimbabwean brother’s 16th doubles title to- bles this week,” he said.
gether on the ITF circuit and third since Courtney Lock
The Lock brothers managed to get their revenge returned to competitive tennis late last year. On May 14, the duo won their second title of the year
against the second seeded pair of Frenchman Robin Ber- following a 6 – 4 3 – 6 10 – 8 victory over another pair of
trand and Mirko Martinez from Switzerland, winning 6 – 1 The two won their first tournament in two years with brothers Australians Jason and Adam Taylor at the ITF It-
6 – 7 10 – 3 to take the trophy. a victory at the M25 Medellin 2022 Tennis Tournament aly F2 tournament.
in Medellín, Colombia on March 27 after they beat the
A week earlier Bertrand and Martinez had also needed pair of Australian Akira Santilan and New Zealander Ru- Without Courtney Lock, Benjamin won just five dou-
a third set tie break to deny the Zimbabweans the title in bin Statham. bles titles in the whole of 2021with three different part-
the first installment of the event. ners but the two are poised to get a lot more this year
Benjamin Lock also won the singles titles as the Zim- playing together.
The purple patch for the pair coincides with the re- babweans recorded a clean sweep at the event.
turn to full fitness of the younger sibling Courtney who Their best season together was 2019 when they ran-
missed close to a year and a half of tennis after undergo- “WE DID IT! Singles and Doubles title in Medellin with sacked six titles together while Benjamin Lock got an-
ing a double hip surgery back in 2020. my brother Courtney Lock. This week goes out to my other one alongside Aziz Dougaz from Tunisia.
family, friends and team who support and believe in me
Courtney Lock could not hide his joy after the success every day. Special thanks to @garci.23 and @adinten- Interestingly Courtney Lock has won all 16 of his dou-
in Algeria. nisacademy for all the work we have put in to get this re- bles titles playing with his brother and is yet to record a
sult. Courtney Lock and Laura Pigossi (his Brazilian girl- singles accolade.
“Really happy to get the ITF tennis 15k title last night in friend) you guys are my rock and it’s the best feeling to
share this victory with you,” the older of the siblings took On the other hand Benjamin Lock has a total of 34
doubles titles since turning pro in 2014 and eight in the
singles category