NewsHawks 22 April 2022

WHAT’S INSIDE Friday 22 April 2022 NMEthWuSli Ncube Price
battles to
PNoElWitiScised break debt US$1
military logjam
threatens STPraOnRsfTorming
2023 poll Story on Page 12 lives the
Shaun De
Story on Page 5 Souza way

Story on Page 60

ZEC caught
pants down
on computer
server storm

ALSO INSIDE Snooping July Moyo exposed for shielding MDC-T councillors

Page 2 News NewsHawks

Issue 77, 22 April 2022

ZEC caught pants down
on computer server storm

OWEN GAGARE

THE European Union (EU) provided funding EU funds, was then used to manipulate the ity; a sustainable voter registration system for Zec spokesperson Jasper Mangwana
for the purchase of a computer server for the 2018 elections after the military seized control the 2018 elections and beyond that credible and around US$480 000. All data centre equipment
Zimbabwe Electoral Commission (Zec) before of it through Africom internet service provider. inclusive, as well as enhanced and effective en- was handed over to Zec in 2017 and is operated
being shut out and denied access when the hard- gagement with electoral stakeholders, including under Zec responsibility.”
ware was delivered ahead of the 2018 general While Zec is now ducking and diving over eligible voters.
elections which President Emmerson Mnangag- the server, Moyo unequivocally confirmed its Da Cruz said the UNDP did not “request ac-
wa is accused of stealing. existence before the elections. The programme had a budget of cess and never had access to the data in the data
US$19 642 253, although the total resources centre”.
Zec has been flip-flopping and lying about The UNDP yesterday also confirmed pur- required amounted to US$36 857 363.
the server at the centre of the 2018 presidential chasing servers for Zec under an electoral capac- In 2017, Moyo told reporters that data col-
election rigging scandal. itation programme. UNDP project manager Vincent da Cruz lected during the biometric voter registration
confirmed assisting to capacitate Zec and pur- was stored in tamper-proof flash drives before
Before the elections and during the rollout Diplomats told The NewsHawks that the EU chasing the server under the programme. being fed into a central database — the server
of the Biometric Voter Registration process, was completely shut out and denied access to —which is hack-proof.
Zec, through its former commissioner Qhubani the server once the equipment landed in Harare “UNDP is indeed implementing a capaci-
Moyo, confirmed the server existed. despite its role in the procurement process. ty-building project with Zec . . . The UNDP “First, the information is collected from the
project is funded by several of Zimbabwe’s de- field and it is served into tamper-proof flash
After the disputed polls and under oath Broadly, the UNDP, through the funding of velopment partners, the largest contributor drives. The machines themselves are embedded
during the court challenge of Mnangagwa’s wa- the EU and other partners, had embarked on being the EU. The first phase of this UNDP with USB storage as backup storage,” he said.
fer-thin victory by his fierce rival main opposi- a Zec capacity building project which has a project closes at the end of April and discussions
tion Citizens' Coalition for Change leader Nel- long-term vision of developing the institution- are currently ongoing about a second phase,” he “The USBs are manually transported to a
son Chamisa, then MDC-Alliance candidate, al, organisational and electoral capacity of the said. consolidated server where information will be
the chairperson of the electoral body, Priscilla commission. fed with all the data from all the registration
Chigumba, said there was no server. “Support included the procurement of equip- centres. All the information will be consolidated
The server was purchased as part of this proj- ment, including servers and licences, for setting into one server which is located at Zec offices
However, Mnangagwa in his court papers ect, whose expected outputs were: strengthened up the Zec data centre to house the data of the (Quantum House in Harare).
during the same election petition hearing said Zec institutional and electoral capacity to meet biometric voter register. The cost of this was
it was there, but was hacked. The hacking story its constitutional mandate to ensure sustainabil- “At this server, we will use the Central Auto-
was never verified. mated Finger Identification System which will

The NewsHawks has established the server is
there and was bought by the EU through the
United Nations Development Programme
(UNDP).

Last week, Zec spokesperson Jasper Mang-
wana further muddied the waters: “Zec has no
server hosted by any external organisation, in-
cluding Africom.”

Yesterday, Mangwana refused to comment
specifically on the server bought for Zec by the
UNDP, but went on to laboriously pontificate
about the issue using sophistry — generating
more heat than light.

“I can’t comment on that. I am not so sure,
I don’t think that will be in the interest of the
public. The Zimbabwe Electoral Commission
has many partners, including government and
civil society, so what will be the relevance of it
in that aspect? I do not see the relevance of that
in the public domain. All we need to know is:
whether Zec is conducting its mandate accord-
ing to the law and whether Zec is in control of
its infrastructure? Yes we are,” Mangwana said.

“As Zec, we have ICT infrastructure which
we manage and which we hold, compared to the
speculation that there is someone who is man-
aging infrastructure for the commission from
somewhere else. That is not correct,” Mangwana
said.

“Did you know that in this country internet
resources, IP addresses which are actually said
to be used to calculate and check our data, rare-
ly come in the name of the end user because
for you to have it you need to apply for it? The
commission does not have that. What does the
commission do? It is allocated resources from
the internet service providers that we have, the
commission has ISPs and these ISPs provide
public IPs which the commission can then re-
solve to specific domains which it uses.

“We want to tell the public that we don’t have
any infrastructure as far as elections are con-
cerned and the server which transmits results,
that’s fiction. We transmit our results manually
from the polling station to the ward collection
centre, from the ward to the constituency from
the constituency to the command centre of the
province. As a commission we do not transmit
results electronically, so the so-called server does
not exist because we wait for the physical copy;
people actually get into trucks and then drive to
the next collection centre, this is coming from
the commission.”

But high-level government sources said the
server, which was bought by the UNDP using

NewsHawks News Page 3

Issue 77, 22 April 2022

weed out people who have registered more than ger-term programme of capacity development Zec chairperson Priscilla Chigumba and in the future. Specific activities include the
once, to leave us with a clean voters’ roll. The for Zec and other election stakeholders,” the oping a new voter registration system, capac- development of Zec’s five-year strategic plan,
clean data will be storedin the final server at our document reads. itating Zec, especially its information services capacity building of commissioners, and insti-
head office.” and voter registration departments teams, em- tutional and capacity development plan,” the
“It should be mentioned that the Nam rec- barking upon a robust voter education cam- document says.
He said the server is protected with numerous ommendations validate the issues raised by elec- paign, reaching out to electoral stakeholders
passwords and other security measures which “I tion observer groups in their reports of the 2013 and building their trust in the electoral process, Output two, which sought sustainable voter
cannot make public”. harmonised elections. Some of the organisations making election systems sustainable and build- registration system for the 2018 elections and
are the local Zimbabwe Electoral Support Net- ing the electoral capacity of Zec,” the document beyond that, is credibility and inclusivity among
After Chamisa challenged the 2018 presiden- work, Sadc Electoral Support Network, Come- says. all key electoral stakeholders.
tial election result in the Constitutional Court, sa, Sadc and the African Union. The European
Chigumba denied that Zec had any server on Union also fielded an Elections Expert Mission, Activities related to capacity building, voter Output three sought enhanced and effective
which results were stored. which also came up with similar findings and education and stakeholder engagement had a Zec engagement with electoral stakeholders, in-
recommendations.” longer-term perspective, it added. cluding the eligible voters.
In her opposing affidavit, Chigumba said: “I,
Priscilla Makanyara Chigumba, in my capacity In November 2015, the UNDP fielded a The strengthened institutional and electoral “This output relates to Zec’s voter education,
as the chairperson of the Zimbabwe Electoral Project Formulation Mission, which had de- capacity of Zec is designed to meet its consti- public outreach and engagement with electoral
Commission and by due authority of the Zim- tailed discussions with Zec, government offi- tutional mandate to ensure sustainability out- stakeholders. The voter education and public
babwe Electoral Commission and that of the cials, political parties, civil society organisations, put and focuses on its sustainability, including outreach focuses on the Zimbabwean public
25th respondent, hereby take oath and state that women and youth groups, faith-based organisa- its institutional, financial and human resource and eligible voters. Stakeholder engagement tar-
the facts I depose to hereunder are within my tions and media entities. sustainability. gets eligible voters; political parties, civil society,
personal knowledge and belief and are true and media and other electoral contestants in accor-
correct. Where I relate to issues of a legal nature, “Initially the project focuses on medium and “In the context of elections, sustainability re- dance with its legal mandate.
I do so on advice from counsel which advice I long-term institutional goals, with a focus on fers to electoral policies and practices which are
accept.” providing technical assistance to Zec on devel- cost effective and realistic, and meet the needs of “Activities under this output are strength-
stakeholders in the electoral processes both now ening planning for voter education and public
Chigumba added: “Transmission of results outreach strategy, voter education for ensuring
from polling stations, wards and constituencies participation in national voter registration ex-
is done manually. This is consistent with the ercise, promotion of dialogue and engagement
provisions of section 64(2) of the Electoral Act. with other stakeholders to build trust and con-
The Electoral Commission had no server set up fidence on Zec and strengthening its promotion
at the national command centre or anywhere of gender equality.”
else, on which results were sent and stored in
real time as the applicant suggests.” A diplomat told The NewsHawks that peo-
ple in the UN system and European diplomats
Ahead of the polls, Chinese firm Laxton were disappointed that despite their funding the
Group Limited — which had won a US$4 mil- server was used to steal elections, while Zec has
lion tender to supply biometric voter registra- remained opaque.
tion kits for registering voters ahead of the 2018
general elections — took Zec to court after the “It’s a tricky situation and they don’t know
tender was unprocedurally withdrawn. how to handle it. Initially, they thought or
hoped Pachedu was exaggerating, but in my
The contract was then given to an American view their evidence is pretty rock solid. The EU
company, Ipsidy. According to the project doc- poured millions into this (via the UNDP, as the
ument under which the server was purchased by EU cannot give money to the government di-
the UNDP, the organisation responded to a re- rectly). After the server was procured, Zec shut
quest by the government and Zec for UN capac- everyone out in 2018. I mean, being told you
ity building support to the electoral commission can’t even inspect the server that you bought. It
after the 2013 elections. raised eyebrows at the time, but it was too late,”
the diplomat said.
The UN then fielded an electoral Needs As-
sessment Mission (Nam) from 26 May to 5 June “So, the EU now funds the fraudulent Zec
2015 to undertake wide stakeholder consulta- that rigs elections and it’s a concern.”
tions to evaluate the electoral environment, the
legal and institutional framework governing the Using geolocation technology, Pachedu es-
electoral process and the capacity and needs of tablished beyond reasonable doubt that Zec’s
various election stakeholders. server was being hosted by Africom at its No.
99 Churchill Avenue offices in Gunhill suburb,
“The mission recommended support for im- Harare. Africom is a military company and this
mediate short-term assistance in the areas of ensured the army controlled the electoral pro-
voter registration, voter education, and budget cess and ran the elections, including manipulat-
formulation, followed by development of a lon- ing results.

Page 4 News NewsHawks

Issue 77, 22 April 2022

MOSES MATENGA Civil servants, govt in fierce
battle over PSMAS control
GOVERNMENT is plotting to seize control
of the country’s oldest and biggest medical aid vice Microfinance. So the AGM didn’t happen, which is a violation “We have since written to the minister respon-
group, Premier Service Medical Aid Society (Ps- When the AGM time came, government of the Psmas constitution and a subversion of sible for the Public Service, Labour and Social
mas), through the Public Service Commission the members’ interests. A series of meetings were Welfare stating our position on Psmas, namely
(PSC) acting as its stalking horse in what has stalled the process demanding some changes in held, but government representatives continued that in order to put an end to the noticeable am-
been described as an attempt to create a new the board chaired by Jeremiah Bvirindi. to behave as if they were running a state enter- bition by non-members to interfere, destroy and
feeding trough for politically connected corpo- prise or parastatal. They also started threatening eventually takeover Psmas, government should
rate raiders. The 11-member broad comprises three mem- to run down Psmas by starving it of funding. stop making direct payments to Psmas on behalf
bers appointed by government, three appointed of civil servants.
However, Psmas members who own the soci- by civil servants, three elected by other members This alarmed the Zimbabwe Confederation
ety — civil servants — have raised a red flag over and two chosen by affiliate employer organisa- of Public Service Trade Unions (ZCPSTU), an “Instead, government should simply pay an
the PSC manoeuvres to take their organisation tions, excluding government. The Psmas manag- umbrella body for civil servants’ representatives, agreed health allowance to all employees. In-
and run it in the interests of government officials ing director is the principal officer and an ex-of- who now accuse the PSC of plotting to takeover dividual employees will then make personal
and their business cronies instead of members. ficio member. Psmas. choices on whether or not to ensure their health
and, if so, with which health insurer. This ar-
Although its subscription rates which average Just before the AGM in June last year, Psmas The body is pleading with President Emmer- rangement will ensure many civil servants who
58% of market charges are way below compet- was told by government to cancel the meeting son Mnangagwa to block the sinister plot, which are currently not on any medical aid also benefit
itive levels — this has a downstream effect of because they had received a complaint from the involves some local tycoons. from this payment.”
causing card rejections by service providers and PSC secretary Jonathan Wutawunashe.
shortfalls — and thus inadequate to fully cover In an 12 April statement following a state- The workers said the move will also promote
the cost of services, Psmas has a huge subscriber “Following due process and acting in accor- ment four days earlier by PSC Wutawunashe, the constitutionally enshrined freedom of choice
base of 890 000 members. dance with the Psmas constitution, the society the civil servants lambasted his move, saying he for those unhappy with Psmas to join other
scheduled its AGM for 24 June 2021,” a gov- should stop purporting to speak on their behalf medical societies like Cimas and First Mutual
This makes it an attractive asset for corporate ernment source said. “On the eve of the AGM, on the matter. Life, among others.
raiders hovering over its struggling operations. on 23 June 2021, Psmas received an instruction
Due to its unsustainably low rates and legacy from government to cancel the AGM because “In your statement you purport to speak on The workers’ representatives also say PSC
mismanagement and corruption issues, Psmas is they had received a complaint from the PSC behalf of civil servants. We are therefore not wants to reverse all the actions taken to restore
struggling to pay its workers, has negative work- which needed to be investigated. To date Psmas amused that without even the courtesy of con- sanity at Psmas by the interim board led by Mh-
ing capital, shortfalls for members in accessing awaits an instruction from the regulator on how sulting us, you chose to publicly speak on behalf langa from the Health ministry. Mhlanga has
services, stalled growth projects, failure to retain to proceed.” of our members,” ZCPSTU said. since left the ministry.
critical skills, incapacity to replace equipment
and lack of stock at Premier Services Medical After that government changed its board “In fact, we note a disturbing trend of some- “PSC in its 2019-2025 Strategic Plan, Page
Investments, its healthcare institution founded members and brought in deputy chief secretary what contemptuous attitude towards labour 41, set itself a goal to either demutualise or ca-
in 2003 and now the largest private healthcare to the President and Cabinet Martin Rushwaya, since your commission assumed office. Does the pacitate Psmas. How a mutual society owned
provider in Zimbabwe. Tsitsi Choruma and Pfungwa Kunaka to replace employer no longer value the role of labour in by its members finds itself in the strategic doc-
Lender Dube, Eriya Hamandishe and Fananai the workplace?” ument of a government organ is baffling,” ZCP-
Government started manoeuvring to capture Madambe. STU said.
Psmas last year ahead of Annual General Meet- The civil servants said a “destructive plot” to
ing (AGM). Psmas members wanted to ratify “The new government board members were demutualise Psmas was hatched in 2020 and is Wutawunashe last week told journalists that
resolutions on restructuring and consolidation cooperative initially, but later under pressure now in motion. government had spent over ZW$6 billion in
made during the interim management under Dr from Wutawunashe — who always claims to be subscriptions payments to Psmas, figures the
Gibson Mhlanga who was brought in by govern- acting on orders from above — they changed “We have already sought the intervention of civil servants described as too little compared to
ment from the Health ministry to clean up the and became uncooperative,” the government our listening President on the PSC’s interfer- high costs of medical treatment. The amount is
mess left by the organisation’s former chief exec- official said. ence in the affairs of Psmas. His Excellency the not enough to cover the 890 000 workers and
utive Cuthbert Dube who was removed under a President has noted with concern the disturbing pay Psmas’s monthly bills, while ensuring access
cloud of corruption. “Government representatives started making attempts by the PSC to destabilise Psmas and to adequate services.
funny demands like having six board seats and has promised to take appropriate action,” the
This included the creation Premier Service making decisions without consulting members. ZCPSTU said.
Holding Company (PSHC) to house all entities
and trust to safeguard assets.

PSHC, an integrated health and financial
services provider, incorporates Psmas, Premier
Service Medical Investments, Premier Service
Medical Aid Society Zambia and Premier Ser-

NewsHawks News Page 5

Issue 77, 22 April 2022

AYESHA CHIDEMBO

PRESIDENT Emmerson Mnangagwa’s govern- Politicised
ment is abusing state institutions, including the military
military, the Zimbabwe Electoral Commission threatens
(Zec) and judiciary, to maintain his tight grip 2023 poll
on power ahead of the 2023 elections and action
must be immediately taken to stop the abuse and admitted by the Zec noting that such conduct public secret following President Mnangagwa’s tion is done by Zanu PF/military elite, Zanu PF
clear the way for credible elections, a local think- is legally and morally permissible. However, ascendancy in November 2017. government’s public statements coercing judges
tank says. the symbiotic relationship between the security to give judgements in their favour, issuance of
sector and Zanu PF makes such militarisation a “The capture is evident in five different ap- divisive judgements on internal fights within the
In a recent report titled Deterrence of the Zam- derogation of Zec’s independence. The free and proaches targeting the composition, conduct, opposition, whose end give Zanu PF political
bian Precedent in Zimbabwe, the Zimbabwe De- fair conduct of members of the security sector and alignment of the judiciary: the amendment advantage and the chief justice’s authoritarian
mocracy Institute (ZDI) says a lot needs to be once appointed and/or employed by Zec is un- of the constitution to give President Mnangag- capture tendencies towards other judges. Read
done to ensure there is a smooth transfer of pow- imaginable,’’ the report added. wa powers to make or unmake judges and sub- together, these five corroborate the assertion that
er if the opposition wins local elections. sequent co-optation actions towards the Chief the judiciary has been captured.’’
The ZDI says the judiciary is captured. Justice, the inertia and/or conniving attitude of
Zambian opposition leader Hakainde Hich- This, the organisation says, had become a the judiciary when a violation of the constitu- See summary on page 40
ilema’s United Party for National Development
(UPND) emerged victorious in last year’s polls,
defeating the Patriotic Front led by Edgar Lungu
in what was celebrated by the Zimbabwean op-
position as a victory for democracy that should
inspire them to win against Zanu PF.

But Mnangagwa has vowed that “another
Zambia” will not happen in Zimbabwe, in what
observers said was a threat to subvert the ballot
using state institutions.

The report said the grip on Zimbabwe’s poli-
tics by the military and its control in various key
institutions was a threat to the transfer of power.

“Military elite is the decisive power bloc af-
fecting Zanu PF decision-making directly while
affecting state institutions directly or indirectly
via Zanu PF as its medium,” the report reads in
part. The report says the military capture of the
party that began at what became known as the
Mgagao Declaration in 1975 has been perpetu-
ated and now extends to key institutions to give
the ruling party an unfair advantage ahead of the
2023 polls.

“One key narrative is that top Zanu PF lead-
ership positions are filled by retired members of
the security apparatus and this legacy has been
preserved from (the late former President Rob-
ert) Mugabe to the Mnangagwa regime,” the
report reads.

“This has enabled the military to be directly
involved in Zanu PF political activities. Second
is the narrative that security forces and Zanu PF
are Siamese twins operating through an injure
one injure all modus vivendi.

“The military elite controls the electoral and
transition politics using either the indirect route,
using Zanu PF and retired components, or di-
rectly through hands-on military operations.

“The Joint Operations Command (Joc), a
military elite structure combining heads of the
Zimbabwe National Army (ZNA), the Central
Intelligence Organisation (CIO), the Air Force,
and the Zimbabwe Republic Police (ZRP) has
been depicted as the apex decision-making body
in Zimbabwe that steers the electoral and transi-
tion politics in Zanu PF and government.’’

In the run-up to the 26 March by-election,
the report said, the police, under the instruction
of Zanu PF elites, blocked opposition rallies, tor-
tured opposition supporters and “weaponised”
Covid-19 regulations to disrupt opposition ac-
tivities.

“Another strategy has been the use of military
deterrence measures to encourage self-censor-
ship and fearful voters. Such military deterrence
strategies include declarations by the military
elite reiterating that Zimbabwe is a military state
and that Zec is indeed militarised.”

Such declarations, the report said, were in-
tended to make prospective opposition voters
fearful and desist from political participation.

“Moreover, key democracy consolidation in-
stitutions such as the legislature, the judiciary,
state media, and Zec have been manipulated to
restore and preserve the interests of the ruling
military elite,” the ZDI says.

“In the post-2023 election cycle, Zec has been
involved in the manipulation of the voters’ roll,
gerrymandering the process of voter registration
process, and militarisation of the secretariat. This
election chicanery cannot be underestimated.

“The manipulation of the voters’ roll creates
an opportunity for ghost voters for the ruling
party, particularly in constituencies where it has
lost popular support. The gerrymandering ex-
perienced in the voter registration process seeks
to disenfranchise citizens in opposition strong-
holds and/or shrink a total number of registered
electorates in the opposition stronghold while
increasing the opportunity to register more elec-
torates in Zanu PF stronghold constituencies.

“The militarisation of Zec secretariat has been

Page 6 News NewsHawks

Issue 77, 22 April 2022

Harare City
Council Town

House

Compromised
Moyo exposed

l Shields MDC-T councillors
to protect controversial deals

MOSES MATENGA the sitting Mayors, deputy Mayors, chairper- ny and possible future revocation by inserting Local Government minister July Moyo
sons of committees and their deputies remain clauses that would protect the transactions en- and or (ii) the cost or the profits of such per-
AS consistently reported by The NewsHawks as constituted prior to the by-election,” Moyo’s tered without following due process. formance.”
prior to the March 26 by-elections, Local Gov- 20 April memorandum addressed to all mayors
ernment minister July Moyo has stepped in to and committee chairpersons reads in part. City of Harare signed the controversial deal “Should City of Harare fail to procure the
protect his multi-million-dollar corrupt deals with Geogenix BV represented by Miliad Lopa remedy of the Political Force Majeure Event
at Town House in Harare and other cities by "In terms of section 114 of the Local Gov- whose address was given as 520 H, 1017 EK, prior to the expiry of the 30-day period, the
blocking the removal of MDC-T councillors ernment laws Amendment Act number 8 of Amsterdam, Netherlands. parties shall discuss forthwith in order to reach
he used as conduits to facilitate the murky 2016, a Mayor, deputy Mayor or councillor a mutually satisfactory solution to restore the
transactions. can only be removed from his position through Under the deal, vigorously supported by the
an independent tribunal or through section MDC-T, Harare is set to get to generate up to Contractor to the position it would have
Working with the MDC-T councillors 129 of the constitution. 22 megawatts of electricity. been in had such Political Force Majeure Event
during the time Citizens’ Coalition for Change not occurred (including compensation for costs
(CCC) officials were recalled, Moyo personal- “You are therefore advised that your councils Nguwaya, who in 2020 was embroiled in a and loss of profits),” the agreement, signed on
ly facilitated several deals, including the dodgy cannot reconstitute the leadership architecture Covid-19 procurement scandal involving mil- behalf of the City of Harare by acting town
US$400 million Pomona Waste Management in place unless there is a vacancy,” Moyo wrote. lions of dollars is also at the centre of the sus- clerk Mabhena Moyo, read in part.
facility that involves a Netherlands-based firm picious transaction that CCC councillors have
working with controversial businessman and The letter was copied to the minister of State threatened to cancel. Another deal that is under threat is the sus-
friend of the First Family Delish Nguwaya as for Provincial Affairs and Devolution Oliver picious financial and material assistance Harare
their local partner. Chidau, deputy minister of Local Government The signed contract is titled “Concession under the MDC-T had pledged to First Lady
Marian Chombo and permanent secretaries. agreement to design, build and operate the Auxillia Mnangagwa under her national proj-
Moyo personally attended the signing cere- Harare Pomona waste management facility and ects.
mony in Harare at Town House and made sure Harare mayor Jacob Mafume, who has been waste energy power plant and has a “Political
the suspicious deal was signed and this all took suspended by Moyo on numerous occasions, force majeure” described in the agreement as: According to minutes of council’s Education,
place with the help of committees chaired by told The NewsHawks that the minister's direc- “acts or omissions by any government entity Health and Housing committee meeting of 29
Douglas Mwonzora’s MDC-T councillors. tive is unlawful and will be defied. which occur after and which were not reason- July 2021 that The NewsHawks is in possession
ably foreseeable on the date of signature of this of, the local authority supported Mnangagwa’s
With CCC councillors now back in charge “They want to maintain these committees of agreement which have material adverse effect Nhanga/Gota/Ixhiba and Nharirire Yemusha
at Town House, some dubious deals were under corruption,” Mafume said. on (i) the ability of the contractor to observe project that has seen her going on a whirlwind
threat. and perform any of its rights and obligations meet-the-people tour in both urban and rural
“They want to keep these committees and areas.
CCC councillors quickly set in motion plans protect suspicious deals including the Pomona
to replace committee chairs following the re- deal.
moval of acting mayor Stewart Mutizwa as a
precursor to scrutinising deals. He is afraid the new committees will inval-
idate the deals of corruption, investigate and
But before the committee chairs were re- cancel contracts done against councils.
moved at a meeting at Town House yesterday,
Moyo wrote a letter halting the process. “He is quoting the wrong section, section
96 of the Councils Act states that at any time,
"Reference is made to the just recently con- committees can be changed by the council. He
ducted by-elections conducted by the Zimba- is talking about chasing away of councillors,
bwe Electoral Commission (Zec) wherein the we have not done that, we have simply rotated
results have been announced. As l congratulate council chairs to ensure people do not squat
the new councillors who have been elected, and create fiefdoms to facilitate corruption,”
may l take this opportunity to remind councils Mafume said.
that this was not a general election and as such
Moyo had previously sought to ring-fence
the filthy US$400 million waste-to-energy
Pomona dumpsite deal from political scruti-

NewsHawks News Page 7

Issue 77, 22 April 2022

BERNARD MPOFU Turmoil simmering ahead of
2023 elections: Old Mutual
ZIMBABWE’S financial services behemoth Old
Mutual says the country risks a volatile political In the run up to the March by-elections, the CCC and civil society organisations expressed denounced escalating political violence.
environment ahead of the 2023 general elections
despite conducting relatively peaceful by-elections supporters in Kwekwe in February. April 2023 as the proposed date for the general provisional dates as the actual dates can only be
last month. The country’s electoral management has set 23 elections. The commission, however, works with proclaimed by the President.

Political commentators say the rise of the Nel-
son Chamisa-led Citizens’ Coalition for Change
(CCC) and the new party’s performance in the
March 26 parliamentary and local authority
by-elections has raised the stakes for the ruling
Zanu PF. The by-elections saw CCC solidifying
its position as the major opposition party in the
country. Out of the 28 contested seats, CCC won
19, while Zanu PF won nine.

Old Mutual, in its quarterly economic report
for the period ending 31 March 2022, said Zim-
babwe’s political environment may deteriorate in
the coming year as electioneering intensifies.

“The relatively calm post-election environment
suggested electoral operations and equipment
were fully functional. Political instability remains
a key risk to year-end, as preparations for 2023
elections heighten,” the report says.

Zimbabwe’s past elections have been marred by
violations, which have affected the credibility and
fairness of the polls.

Among the issues that have been under the
spotlight in the past are issues of breach of elector-
al laws through vote buying, voter intimidation
and violence.

In the run up to the March by-elections, the
CCC and some civil society organisations ex-
pressed grave concern of the escalating political
violence. Just recently, CCC member Mboneni
Ncube was killed by Zanu PF activists during a
campaign rally in Kwekwe.

According to a Zimbabwe Peace Project (ZPP)
February report, police and Zanu PF topped the
list of human rights violators mainly targeting
CCC supporters and ordinary citizens ahead of
the polls.

After Ncube’s brutal murder, the Crisis in Zim-
babwe Coalition wrote a letter to Malawian Pres-
ident Lazarus Chakwera, the current Sadc chair-
person, expressing concern over the deteriorating
political and security situation, socio-economic
conditions and livelihoods and shrinking demo-
cratic space in the country ahead of by-elections.

Chamisa also called for the African Union (AU)
and Sadc to immediately act before Zimbabwe is
plunged into bloodshed following the murder of
an opposition party activist by suspected Zanu PF

There is a future.

ZIMBABWE
CHILDREN’S CANCER RELIEF

EARLY
DETECTION

IS THE BEST PROTECTION!

STAY IF YOU SUSPECT EYE CANCER
ALERT! VISIT YOUR CLINIC TODAY

Page 8 News NewsHawks

Issue 77, 22 April 2022

Explosive lawsuit tackles land grabs

IN a court application that could have serious im- Zimbabweans cannot acquire any land before the potential seller first offers it to the government.
plications for Zimbabwe’s questionable land own-
ership rules, Bulawayo businessman Mark Masin- “is not absolute” and this limitation of fundamen- ers would only know that the land intended for Analyats say the Zanu PF government’s stran-
yazana Mbayiwa has filed a High Court challenge tal rights is provided for in section 86 of the na- selling was acquired by the state. There are also glehold on rural land ownership rights has be-
against the government’s sweeping powers over tional constitution. situations where owners of rural land would get come an important frontier in the fight for con-
land rights. wind that the state has interest on a particular stitutional rights.
The ministry further argues that, in terms of land and go on to sell that land to innocent buy-
If granted, the lawsuit could lead to the dis- the law, there is a presumption that “the state has ers. The regulations seek to arrest such scenarios,” Last year, amid an escalation in arbitrary land
mantling of the Zanu PF government’s undem- interest in all rural land unless it indicates other- the ministry says. seizures by the government and privileged cor-
ocratic stranglehold on agricultural land owner- wise”. porates, Harare lawyer and opposition politician
ship, with ramifications for wider property rights. “It is important that any person intending to spearheaded a landmark challenge against sec-
The ministry adds: “For that reason, the state sell land must offer it to the state or get a cer- tions 4 and 6 of the Communal Lands Act which
This comes amid a growing tide of arbitrary has to put in place mechanisms to manage and tificate of no present interest to avoid situations vests rural land in the President.
seizures of farmland by powerful politicians and monitor rural land.” where one would buy land today which land the
their corporate cronies. state has no present interest in or has already ac- Representing the Hlengwe Shangaan commu-
In its notice of opposition to the application, quired. The limitation is justified and does not nity of the Lowveld which faces displacement
The law — as currently configured — stipu- the Lands ministry says land regulations are nec- offend the constitution in any way in that it safe- from ancestral land, Biti argued that the law was
lates that any seller of rural land must first make essary in preventing people from selling expropri- guards both the buyer and seller.” a colonial relic premised on the racist notion that
it available to the government before selling such ated land on the pretext that it is private land. an African could not own land. —STAFF WRITER.
land. This is done through the issuance of a certif-
icate of no present interest. “There are many cases where sellers and buy-

Effectively, it means Zimbabweans cannot
acquire any land before the potential seller first
offers it to the government. Mbayiwa argues that
this cannot be allowed in a constitutional democ-
racy.

“In the same vein, once I become a holder of
rural land, I will be required by law, when I de-
cide to dispose of such land, to offer it first to the
government of Zimbabwe,” Mbayiwa states in his
application.

He says this is an irrational, unfair and unrea-
sonable violation of property rights.

Represented by prominent Bulawayo lawyer
Josephat Tshuma of Web, Low and Barry, Mbay-
iwa is seeking an order declaring invalid section
47 of the Land Acquisition Act as well as sections
3 and 4(1) of the Land Acquisition (Disposal of
Rural Land) Regulations of 1999. Further, he
wants the order to be confirmed by the Consti-
tutional Court.

In case number HC219/22, Lands minister
Anxious Masuka is cited as the first respondent
and Attorney-General Prince Machaya is second
respondent.

Mbayiwa says a central objective of the armed
liberation struggle was the repossession of land by
indigenous Zimbabweans, but the government
— even after declaring the fast-track land redistri-
bution programme a success — unjustly contin-
ues exercising arbitrary powers in the acquisition
and disposal of land. It is clear that the primary
purpose of the regulations was to prevent the sale
of rural land on the willing-buyer, willing-seller
basis at the expense of the state which intended to
acquire such land.

“Whichever way one looks at it, the conditions
that prevailed when the need to protect the state
was mooted are no longer in existence. The pro-
tection accorded to the state has become both
arbitrary and irrational. By definition, it has be-
come unconstitutional,” Mbayiwa says.

The Lands ministry has filed a notice of oppo-
sition to Mbayiwa’s case.

Mbayiwa argues that the cited provisions are
in contravention of sections 71 (2), as well as 56
(1) of the constitution which guarantee property
rights.

Mbayiwa’s point of departure is that he intends
venturing into commercial farming. However, he
is encumbered by the law — which places unjust
limitations on citizens’ rights to acquire or dispose
of agricultural land.

The current law not only violates property
rights, but also hampers private investment.

For instance, the seller of a significant interest
in a rural land holding company is required by
law to first make an offer to the government be-
fore selling such land.

Mbayiwa says even family members hoping to
inherit rural land are finding it difficult to assert
their property rights.

“It also does occur to me that disposing the
land or shares in a land holding company by way
of an inheritance is taken within the drill of the
law as it stands. Effectively, therefore, a bequest of
land or shares in a holding company which does
not help the first respondent [Lands minister] is
invalid.”

In its notice of opposition to the suit, the Lands
ministry says it is common cause that “rural land”
and “agricultural land” are one and the same
thing.

The ministry argues that the right to property

NewsHawks News Page 9

Issue 77, 22 April 2022

MOSES MATENGA ‘Protect Auditor-General’

THE office of the Auditor-General is under Auditor-General
threat from the twin perils of implicated officials Mildred Chiri
who are unhappy with audit findings on one
hand and the economic challenges hampering Former Finance read in part. hence the need to capacitate it if the country is to
the important work of holding the government minister Tendai Biti However, it emerged that the Audit Office was achieve in its fight against corruption.
accountable on the other, it has emerged. She said there is fear that the audit reports will
at some point expire without any tangible action in discussions with AFROSAI-E to help it to in- In an interview with The NewsHawks, Chiri
Myriad challenges are affecting the operations being taken to plug leaks. stall an auditing software and to train the staff in said though the government has been helpful in
of the Mildred Chiri-led office and rendering PAC chairperson Brian Dube said in a recent the use of the software. meeting their needs, a lot more should be done.
its quest to promote accountability and expose report to Parliament: “Most of the laptops used
looting “an academic exercise”, while the country by the staff were reported to be old, having since AFROSAI-E is a member-based institution “I feel the legal framework is there and enough
continues losing billions of dollars to leakages. outlived their useful lives. In addition, staff was with 26 auditors-general from English-speaking and what is at stake is lake of enforcement. This
reported to be sharing laptops when the ideal sit- African countries who make up the organisation’s is why the PSC introduced a course on work
This also comes as former Finance minister uation is for each auditor to have his or her own governing board. ethic and I think we all agree between 2008 and
Tendai Biti, who is also the ex-chairperson of the laptop to work from. This definitely negatively now in as far as work ethic is concerned, moral
Public Accounts Committee (PAC), said there affects audit progress.” It also emerged that the salaries were too low fibre has gone down in society and it is necessary
were fears the operations of the Auditor-General “The committee was informed that the audit to attract professionals who are now moving out- to go back to basics.”
were being affected by lack of independence and processes were still manual and, therefore, it was side the country in search of greener pastures de-
interference by the authorities. difficult to audit remotely without being physi- spite an increment in September 2021. “We have to try and infuse integrity on work
cally present at the client or auditee,” the report ethic and operations. We can have as many laws
Biti said inadequate funding was also a key Dzivaresekwa MP Edwin Mushoriwa said as we want, but we still need moral persuasion
factor affecting the operations of the office. the Auditor-General’s office was lagging behind which comes from within.

“To show her compromised independence, “It appears sometimes where there are no con-
look at the decision taken to cover up names of sequences people will continue, but if you know
people committing omissions and commissions. you will be fired or there will be consequences,
That clearly was not her decision but Zanu PF it will stop.”
would have put pressure on her to protect known
corrupt people linked to the state,” Biti told The “We presented our issues before budget. The
NewsHawks this week. ministry of Finance has tried on raising salaries
and in terms of other challenges, including our
“She has serious constraints that threaten her own building. They have taken it as a project,
work,” the Harare East MP added. including rehabilitation of the building and have
a lot of areas, including sprucing up and asked
“There have to be legislative changes, there to work with the ministry of Public Works and
have to be constitutional changes. There are also we hope it will help. There are constraints in
worries about her independence. There is still no terms of our work and I would say it is in the
audit board appointed, therefore she is forced to constraints of the general economy.”
deal directly with the ministry (of Finance) yet
the Act creates a buffer by creating a board for “We want the tools of trade like laptops. Every
the commission that will then deal with the au- auditor must have his or her laptop because that
thorities,” Biti said. is now the trend. Information is computerised
and, for auditors, you definitely need a computer.
Biti said another issue was that the office of the
Auditor-General was underfunded, hence lack- “We also need to be digitalised. We cannot
ing the capacity to deliver to expectations. have papers all over, but we can do anything on
our machines and that is the way to go. As Zim-
“As a result, she (Chiri) is understaffed, she babweans, we realise we lag behind while others
doesn’t have equipment, software and so forth, are ahead, not just our office, in the central gov-
so she has operational bottlenecks which stem ernment as a whole, there is need to computerise
from underfunding.” all systems. We need that kind of software and we
are in need of acquiring that with the help of the
“There are, of course, legal issues. There are no ministry of Finance.”
legal mechanisms of enforcing her recommen-
dations, so ultimately her recommendations be- “Digitalisation will also help in issues of staff-
come academic. They gather dust and you have ing. We may not need many people.
ministries, particularly the ministry of Finance,
which has been non-compliant for the past es-
sentially 10 years and there is nothing she can
do about it.”

Officials who spoke to The NewsHawks this
week confirmed that the authorities, some of
whose institutions are implicated in the reports,
have been pestering the auditors, questioning
their findings that have exposed damning cor-
ruption in government, parastatals and local au-
thorities.

“We have to fight many issues with authorities
calling us. We run around sometimes trying to
clarify issues and trying to explain to authorities
on our findings,” a senior official in the Audi-
tor-General’s office said.

In its latest reports, the Auditor-General’s
office named several key institutions, including
the Zimbabwe Anti-Corruption Commission
(Zacc), Zimbabwe Electoral Commission (Zec),
many ministries and parastatals for failing the ac-
countability and transparency test.

Norton MP Temba Mliswa recently confirmed
the threats and a myriad of challenges against the
AG’s office while debating in Parliament on the
need to protect the office and its operations.

“She (the Auditor-General) has received
threats left, right and centre, but she keeps doing
her job,” Mliswa told Parliament recently.

“She has no protection, she has nothing. If
there is anybody who was supposed to be pro-
tected in this country, it is the one who exposes
looters, but she has never requested for any extra
security. She has never requested for anything.
This must be a tribute to her,” Mliswa said.

MDC-T chief whip Paurina Mpariwa said the
Auditor-General’s office, located at Burroughs
House at the corner of George Silundika Avenue
and Fourth Street, was in a state of disrepair with
pipe leakages, broken windows and in serious
need of refurbishment.

“It is a very small house, with water spillages
because of sewer and broken pipes. On the 1st
to the 5th floor, you will find the offices of the
AG whom we are talking about with broken fur-
niture, non-functioning lift for so many years,”
Mpariwa said as she gave insight in the opera-
tions and state of affairs at the Auditor-General’s
office.

Page 10 News NewsHawks

Issue 77, 22 April 2022

Mnangagwa’s chilly warning to rivals

MOSES MATENGA

PRESIDENT Emmerson Mnangagwa has is- The Chiwenga camp is allegedly targeting the women’s league conference.
sued a stern warning to rivals within the ruling
Zanu PF amid fears of sabotage ahead of the In apparent reference to his much-hyped “The importance of the symbiotic relation- This relationship must continue to be nur-
December elective congress, where he fears he visit to Emmanuel Makandiwa’s church re- ship between the state, church and the party tured across all levels of society. I exhort the
will be challenged by his deputy Constantino cently, Mnangagwa said there remains a strong cannot be overemphasised, more so now as we party leadership to deliberately find time to
Chiwenga. relationship between the state and religion. accelerate the building of our great country. attend their various congregations.”

Insiders said the attack was aimed at the
Chiwenga camp that is targeting the youth
league and women’s league conferences as plat-
forms to consolidate its leadership takeover
agenda ahead of the crucial congress where the
former army general is set to contest Mnan-
gagwa with the help of the military.

Although Chiwenga remains mum on his
ambitions, insiders say there was a serious push
to stop Mnangagwa from standing as the party
candidate in 2023 despite being endorsed by
the party’s Bindura conference last year.

The Chiwenga camp is basing on security
reports, particularly the Central Intelligence
Organisation (CIO) prediction of a Zanu PF
loss under Mnangagwa because of failure to
address the economic crisis among other is-
sues. But in his address to the party politburo
on Thursday, Mnangagwa said divisive ele-
ments will not be tolerated as leadership in the
party was “not an entitlement”.

“As we prepare for our conferences of the
leagues and the scheduled party congress,
actions bent on sabotaging the party and di-
viding the membership will not be tolerated.
Leadership in Zanu PF is not entitlement,”
Mnangagwa said.

“Finally, as the politburo, let us remain
united and continue to

handle party affairs with honesty, integrity
and loyalty. Narrow and self-defeating agendas
which are indeed against the interest of our
mass party, should be rejected by us at this lev-
el and indeed among the rank and file of the
membership.”

Mnangagwa is leading a deeply divided par-
ty that has failed to heal from the district and
provincial restructuring exercises last year that
were rigged in favour of those linked to him
despite losing to those said to be either inde-
pendent minded or linked to Chiwenga.

There are serious fight over provincial elec-
tions in the Midlands, Mashonaland Central,
Manicaland, Mashonaland West, Matabele-
land North and other provinces where the
party remains divided.

Mnangagwa is also accused of pursuing a
tribal agenda in favour of his Karanga ethnic
group, promoting his relatives and close allies
to key positions while alienating others.

“The conference must help consolidate
intra-party unity and democracy, while also
serving as a building block to party rejuvena-
tion, modernisation and growth,” the Zanu PF
leader said.

“Meanwhile, I urge the youth league and
women’s league, together with all other de-
partments of the party involved in the holding
of the conferences, to be guided by the su-
premacy of the party constitution, principles
and values.”

Critics say Mnangagwa is uncomfortable
with the 2023 general election amid fears of
defeat from the opposition on the back of in-
ternal fissures and bhora musango. He con-
ceded that a lot needs to be done if the ruling
party entertains any chances of winning.

“Much more work lies ahead of us as we
gear up for a total victory in 2023 harmonised
general elections,” Mnangagwa said.

On the exchange rate that his now hover-
ing above ZWL$360 for US$1 on the paral-
lel market and stoking chronic high inflation,
Mnangagwa said: “Government is currently
addressing the exchange rate evil and price
hikes which are a result of imported inflation.”

NewsHawks News Page 11

Issue 77, 22 April 2022

MOSES MATENGA MPs reduced to beggars

PRESIDENT Emmerson Mnangagwa’s regime ... civil servants plead with govt
has reduced members of Parliament to beg-
gars, whose lives are now miserable, opposition MDC-T national chairperson
MDC-T national chairperson Morgen Komichi Morgen Komichi
has said.
as the situation has now become desperate. ioning us. On average, a civil servant is getting Civil servants are demanding a pre-October
This also comes as civil servants have written “Things are going south. Nothing is working ZW$28 000-ZW$30 000. The way forward is we 2018 salary of US$540 per month and have been
to the government, pleading for an urgent meet- have written to the employer asking for a meeting embroiled in a serious fight with the government
ing to address their plight following the erosion because of the inflation, the prices, the rate and with the National Joint Negotiation Committee which argues that its efforts to cushion the work-
of salaries by chronic high inflation plaguing the all that we were given makes no sense,” ZCPSTU (NJNC) and the letter was delivered on Wednes- ers are being hampered by Western sanctions.
country coupled with cash shortages and a myri- secretary-general David Dzatsunga said. day,” he said.
ad other challenges bedeviling the economy. For the better part of last year, the government
Civil servants were awarded US$175 in allow- “We are now waiting for their response on our workers, mainly teachers, nurses and doctors, de-
Komichi said Mnangagwa and his administra- ances last year, but they are saying that amount request for an urgent meeting,” Dzatsunga add- clared incapacity, amid threats of being fired for
tion have dismally failed to address the economic is not useful anymore. “There is a US$75 and ed. failure to report for duty.
crisis in the country and have reduced lawmakers the US$100 salary and that was at least cush-
to beggars, while also failing to address the in-
capacitation of teachers and other government
workers.

“If you see an MP’s payslip, you will cry,” Ko-
michi told The NewsHawks this week.

“It will not be surprising to see MPs begging
in the streets. Their salaries and allowances are
just as good as that of a teacher; there is nothing.
Look at all civil servants, look at the soldiers, the
police and all, it shows there is no capacity by
this government to sustain its citizens. There is
no hope anymore.

“The (black market) rate is now ZW$360 and
how can civil servants survive, how can people
survive? They have failed to run this country, peo-
ple are angry and starving,” Komichi added.

He said the situation in the country was evi-
dence enough that there was a need for broader
dialogue, owing to the failure of the one-party
government.

“If you think of winner-take-all, you are back-
ward, you are useless and you don’t know how to
resolve the economic crisis of this country. The
government system must be inclusive in nature.”

The MDC-T is calling for dialogue and a sub-
sequent unity government as the only solution to
the country’s problems, while the Nelson Cha-
misa-led Citizens’ Coalition for Change is calling
for dialogue to have reforms ahead of the 2023
polls.

Civil servants have since written to the gov-
ernment, pleading for dialogue as their salaries,
which were increased recently, have been eroded
by inflation.

The Zimbabwe Confederation of Public Sec-
tor Trade Unions (ZCPSTU) said it now awaits
the employer’s immediate response on the matter

CCC senior members jostle for Gweru seat

STEPHEN CHADENGA should win resoundingly and we should clinch CCC national vice-chairperson Sesel Zvidzai
the parliamentary seats, including those in rural
CITIZENS’ Coalition for Change (CCC) senior areas where Zanu PF has dominated in the past.
party members in the Midlands capital have be- We are tirelessly working for the party’s success
gun campaigning, albeit underground, for the and victory in next year’s election and nothing
Gweru Urban parliamentary seat ahead of the more.”
watershed 2023 general election, The NewsHawks
can report. Pressed further if he was not interested in vying
for the Gweru Urban seat, Zvidzai laughed slight-
Prominent Gweru lawyer Brian Dube, who ly and said CCC was citizens’ party and leaders
last year defected to the Douglas Mwonzora-led “came from the people”.
MDC-Alliance, is the current legislator for the-
constituency, but CCC members feel Dube’s Addressing CCC Midlands interim structures
chances of retaining the seat are slim, given the a fortnight ago in Gweru, Chamisa ruled out pri-
MDC’s poor performance in last month’s by-elec- mary elections, saying candidates were going to
tions. be chosen by the people.

Names that have already emerged and are tus- “CCC is a citizens’ party and this time around
sling for the seat include CCC Gweru district candidates will come from the people. All stake-
chairperson Taurai Demo, businessman Edward holders will have an input in choosing their pre-
Ganyani, former Gweru mayor and CCC pro- ferred candidate,” he said.
vincial chairperson Josiah Makombe and CCC
national vice-chairperson Sesel Zvidzai. “We want servant leadership and not people
who serve their interests. So if you have not en-
There are some dark horses who are also work- deared yourself to the people, forget about repre-
ing behind the scenes, as they feel Gweru Urban senting Mkoba, forget about representing Gweru
constituency is a “walkover” for the party. Urban. It is the people who are going to decide.”

Makombe, Ganyani and Demo were Interestingly, last year Zanu PF Midlands se-
non-committal when asked about their plans, as nior officials told The NewsHawks that the divi-
they all insisted that the people of Gweru will de- sions rocking the opposition had gifted the seat
termine their fate. to Zanu PF.

Zvidzai laughed off the suggestion, saying as a “This is a done deal, Gweru Urban is now
senior member and vice-chairperson of the par- Zanu PF. If you look at the opposition divisions
ty, he was committed to ensuring CCC wins the in the constituency and a growing defection to
2023 elections. Zanu PF by a number of opposition figures, it’s
just telling that, come 2023, this is a walkover,”
“The task at hand is to make sure CCC wins Zanu PF’s candidate in the 2018 elections Esau
in next year’s harmonised elections,” he told The Natare said.
NewHawks.
The Gweru Urban seat has been held by the
“The (CCC) president (Nelson Chamisa) opposition since the year 2000.

Page 12 News NewsHawks

Issue 77, 22 April 2022

Ncube battles to break debt logjam

BERNARD MPOFU

FINANCE minister Mthuli Ncube this week internal resources and loans with usurious interest (ZAADS) and later the Lima Plan of 2015, Zim- Finance minister Mthuli Ncube
faced a herculean task as the debt-ridden nation rates to finance some of its critical projects. babwe, according to the IMF, is now pursuing the ment, which comprised Zanu PF and two MDC
made frantic efforts to break its debt jinx with HIPC model, which during the Government of factions, hawkish Zanu PF politicians rejected
creditors, as he held a series of meetings with a Following several failed attempts to settle the National Unity was frowned upon by Zanu PF. proposals made by then Finance minister Tendai
senior United States Treasury official, a United ballooning debt such as the Zimbabwe Accel- Biti to pursue the HIPC initiative, arguing that
Kingdom envoy and senior executives from mul- erated Arrears Debt and Development Strategy During the tenure of the power-sharing govern- the country was not poor.
tilateral financial institutions, The NewsHawks has
learnt.

Currently battling a huge debt overhang, which
has worsened the country’s sovereign risk profile,
the authorities in Harare have been left with few
options except seek debt forgiveness and seek
bridge financing from potential sponsors.

But most Western powers doubt President
Emmerson Mnangagwa’s sincerity in effecting a
raft of economic and political reforms needed to
normalise relations with creditors and the interna-
tional community.

At the turn of the millennium the US enacted
the Zimbabwe Democracy and Economic Recov-
ery Act (Zidera) over Zimbabwe’s worsening hu-
man rights record and charges of electoral fraud.

Under Zidera, Washington can veto any finan-
cial support extended to Zimbabwe by Bretton
Woods institutions, most notably the World Bank
and International Monetary Fund, if Harare re-
neges on its promise to undertake reforms.

Harare strongly opposes the foreign policy tool,
saying it is Washington’s ploy to effect regime
change following the controversial land reform
programme which saw thousands of white com-
mercial farmers losing swathes of land to locals.

Information gathered by The NewsHawks
shows that Ncube flew to the United States with
a delegation which includes his deputy Clemence
Chiduwa, Reserve Bank of Zimbabwe governor
John Mangudya, head of Zimbabwe’s Aid and
Debt Office Andrew Bvumbe, Treasury secretary
George Guvamatanga and other government of-
ficials.

In Washington, the finance minister met US
deputy assistant secretary for Treasury Eric Meyer
on Tuesday, US deputy assistant secretary of State
Akunna Cook, where he attempted to convince
the bureacrats that Harare had turned the leaf. The
US and the UK have in recent times raised the
red flag over growing political intolerance and the
shrinking of democratic space following Mnan-
gagwa’s ascendany in 2017.

Harare, on the other hand, cites the repealing
of the draconian Access to Information and Pro-
tection of Privacy Act, Public Order and Security
Act among some of its political reforms. However,
critics say these laws have been replaced by equally
repressive ones.

Ncube was scheduled to meet World Bank ex-
ecutive director for France Arnaud Buisse, IMF
deputy managing director Antoinette Monsio
Sayeh, president of Structured Credit Internation-
al Corp Mahesh Kotecha and United Kingdom
special envoy Nick Dyer, among other movers
and shakers.

Three multilateral creditors, the World Bank,
International Fund and the African Development
Bank, will this week hold annual meetings in the
US at a time Zimbabwe is making frantic efforts
to engage with financiers and sponsors to help her
retire her debt.

Ncube recently told an economic symposium
that there is a plan to address the nagging debt
issue.

“Progress has been made in developing an Ar-
rears Clearance Strategy with support provided
from the IMF and World Bank. Engagement is
ongoing with various potential sponsors, which is
necessary before arrears with selected multilateral
creditors can be addressed. Government has be-
gun sharing Arrears Clearance Strategy,” Ncube
said.

Just last week, the IMF revealed that Zimbabwe
is pushing to be classified a Heavily Indebted Poor
Country (HIPC), as the country seeks debt relief
in what could be a volte-face on the long-held of-
ficial aversion to the initiative.

The nation remains in debt distress, battling to
access long-term cheap capital from multilateral
lenders like the World Bank, African Develop-
ment Bank and the IMF. With limited budgetary
support, Zimbabwe has over the years relied on

NewsHawks News Page 13
BANK OF ZI
Issue 77, 22 April 2022

RESERVE MBABWE

PRESS STATEMENT

SUSPENSION OF METBANK LIMITED FROM OPERATING AS AN
AUTHORISED DEALER

The Reserve Bank of Zimbabwe (the Bank) wishes to advise the public that it has, with
immediate effect, suspended Metbank Limited from operating as an authorised dealer
pending full investigations for breach of Exchange Control regulations relating to trading in
foreign currency.

Metbank Limited will not be permitted to deal in foreign currency, that is buying and selling
foreign currency, and processing international and domestic foreign currency transactions,
until further notice.

The suspension of its authorised dealership licence does not relieve Metbank Limited of any
outstanding obligations it incurred or had at the time of suspension of the licence.

John P. Mangudya
Governor
20 April 2022

Page 14 News NewsHawks

Issue 77, 22 April 2022

Bring us money, not your votes

MOSES MATENGA l Diaspora puts president under fire

PRESIDENT Emmerson Mnangagwa has come President
under heavy criticism for wanting to abuse dias- Emmerson
porans by luring them into investing millions of Mnangagwa
dollars in the country, while he continues denying
them the right to vote. Foreign
minister
Mnangagwa on Monday spoke about dias-
pora investments while addressing thousands at Fredrick Shava
the Independence Day celebrations in Bulawayo,
but remained mum on the right of Zimbabweans On one hand they acknowledge the criticality of “The government has rejected our campaign “This is something that South Africa already
dotted across the globe to vote. the diaspora by attempting to factor them in its for diaspora vote for 12 years now. In public and allows its own citizens. If you are a citizen of
developmental trajectory. On the other, the gov- in court, (Zanu PF politburo member) Patrick South Africa, living and working in another part
Cabinet on Wednesday said the government is ernment is adamant that the diaspora can’t vote, Chinamasa said government will never accept 5.5 of world, you can still participate in your democ-
creating a diaspora-friendly environment policy it gives as an impression as if it is practically im- million Zimbabwean diasporans to vote. So we racy, your vote is still given expression because
framework that will assist the country to harness possible for them to exercise their constitutionally need a global coalition of countries to change our a vote is a fundamental part of personhood and
social, economic, political and cultural dividends guaranteed right.” government’s mindset on this.” dignity.”
which would help spur development in the coun-
try. “The Mnangagwa government is sadly a prof- Political analyst Pedzisai Ruhanya took to mi- “Overseas voting is important to solving the
it-oriented government. When it sees avenue of croblogging site Twitter, saying: “In his indepen- problem of captured democracy in Zimbabwe.
“The promotion of investments by diasporans profit in the form of taxes and remittances from dence speech in Bulawayo Mnangagwa invited Those who left did not abdicate their democratic
in their country is part of the Second Republic’s the diaspora, they are all of a sudden important, Zimbabweans in diaspora, who are not allowed rights and in many instances they were forced to
engagement and re-engagement thrust. Diaspora when it pertains to the people’s right to plebiscite, to vote under Zanu PF rule, to return home and leave by an atmosphere of violence and repres-
remittances have been one of the key foreign cur- the government either pretends this populace invest in the country. The system doesn’t allow di- sion.”
rency contributors in the past,” acting Informa- doesn’t exist or it’s impractical to do so. It’s chica- aspora vote, but wants their remittances.”
tion minister Jenfan Muswere said. nery,” Rusero said. Millions of Zimbabwe are outside the country,
In a recent interview with The NewsHawks, mainly in countries like South Africa, Botswana,
“The development of a comprehensive policy The deposed United Kingdom-based Ntaba- South African opposition leader Mmusi Mai- United Kingdom, Australia, the United States, as
and strategies will unlock knowledge and skills zinduna traditional leader, Chief Nhlanhlaya- mane said his country must also support diaspo- economic and political refugees.
transfer; diaspora direct investment; and philan- mangwe Felix Ndiweni said there was need for a ra voting for Zimbabweans scattered around the
thropic works. Government, on the other hand, global coalition of countries to push Zimbabwe globe, including in the neighbouring state, to be Many of them fled the country at the height of
will avail industrial shells and land to eligible di- on the diaspora vote. allowed to participate in democratic processes. the political and economic crisis that has persisted
asporans for the construction of specialist hospi- over the years.
tals and industrial parks and any other areas or
sectors. Government will also facilitate the estab-
lishment of joint ventures between diasporans
and landowners for the production and export of
high quality agricultural products and any other
sector for investment.”

In his presentation to cabinet, Foreign minister
Fredrick Shava said the engagement with the di-
aspora will contribute to the country’s economic
development.

An inter-ministerial committee chaired by
Shava and deputised by Finance minister Mthuli
Ncube has since been put in place.

The government is pushing its entities and cor-
porates to ensure a friendly environment to lure
diasporans into investing in the country.

“In addition, the consular services abroad will
be strengthened in order to issue civil registration
documents, visas and work permits. A diaspora
bond will be listed on the Victoria Falls Stock Ex-
change by the ministry of Finance and Economic
Development once finalised.”

“It was further resolved that a One-Stop Ser-
vice Centre for diaspora investment applications
be set-up at the Zimbabwe Investment Develop-
ment Agency (Zida) to expedite the processing of
the proposals,” Muswere said in his post-cabinet
briefing.

Political analyst Rashweat Mukundu said
Mnangagwa must be sincere and “holistic” in his
approach and ensure those he wants to invest in
the country are also accorded the right to vote.

“What Mnangagwa must do is to move a ho-
listic package to the Zimbabwean community in
the diaspora, which is their participation in the
governance by enabling them to vote at the same
time encouraging them to invest in Zimbabwe by
clearly identifying the opportunities available for
them,” Mukundu said.

“He also has to address the issue of the lack of
property rights or the perception that in Zimba-
bwe the government can wake up and take any
investment,” he said.

“There is perception of Zimbabwe as lawless
and that hinders the participation of the diaspora
into fully investing in the country. For me, it is
critical that when you engage the diaspora com-
munity, do not only ask them to invest but also
identify a role for them in the governance of the
country and it is important that they should also
vote then address the negative security perception
that those with power can do as they please in this
country.”

Another analyst Alexander Rusero said by call-
ing for diaspora investments without addressing
the issue of them voting, the authorities were
showing hypocrisy.

“There is some element of double standards
and hypocrisy exhibited by the government per-
taining the matter. The government can’t have
selected priority when considering the diaspora.

NewsHawks News Page 15

Issue 77, 22 April 2022

Mnangagwa at
pains to charm
Matabeleland
to engage church leaders, civil society and tradi-
NYASHA CHINGONO tional leaders over Gukurahundi. Commander Zimbabwe Defence Forces Philip Valerio Sibanda

PRESIDENT Emmerson Mnangagwa has made The move has been widely viewed as co-op- mander, who comes from his home province, the Inxa Village.
desperate moves to appease the people of Ma- tion of opposing forces, mainly those vocal about Midlands, in a manoeuvre likened to killing two He has done this to woo the Matabeleland
tabeleland over the early 1980s Gukurahundi the massacres. birds with one stone.
genocide which claimed 20 000 lives. community although he has failed to address
The once vocal Women of Zimbabwe Arise Air Force commader Elson Moyo is also a several concerns from Ndebele people who, 42
Mnangagwa, who is yet to publicly apologise (Woza) leader, Jennifer Williams, is one of the former Zipra fighter, and he also comes from years after Independence, are regarded as mar-
for his involvement in the atrocities as minister civil society leaders in Matabeleland who Mnan- Mnangagwa’s Midlands political citadel. ginalised.
of State Security at the time, this week made a gagwa has successfully co-opted, silencing others
surprise move to host the Independence Day cel- who follow her under a movement code-named, Among other unverified claims, Mnangagwa In 2020, Mnangagwa also spread his influence
ebrations in Bulawayo. The Matabeleland Collective. says his original middle name was “Hlupheko”, into sport, granting mining rights to Highland-
which is a direct translation of Dambudzo. ers, the oldest and most successful football club.
As State Security minister, Mnangagwa made The group, ostensibly formed to represent
several inflammatory statements during the un- the concerns of civil society in Matabeland, split Again, in Bulawayo, Mnangagwa renamed the This is largely viewed as an attempt to win the
speakable killings by the North Korean-trained two years ago over squabbles about Gukurahun- main government complex Mgandane Dlodlo hearts of football fans, who constitute the core
5 Brigade. di, with a section of the group demanding that Building. of the Bulawayo community, especially in the
Mnangagwa apologise and account for the atroc- townships. Highlanders is expected to start ex-
His boss, the late former president Robert ities. Mgandane Dlodlo was King Lobengula’s re- ploration at Inyathi Mine this year after securing
Mugabe, was the chief architect of the the brutal gional commander in what is now the Midlands a partner for the venture.
murder of thousands, robbing families of fathers, They also demanded the issuance of identifi- province, and the son of the most famed chief of
mothers and relatives, scars which some bear to cation documents to thousands of stateless Ma-
this day. tabeles, who are currently excluded from the for-
mal economy due to lack of personal particulars.
In a first of its kind in Zimbabwe’s history,
Mnangagwa this week sought to charm the peo- The split of The Matabeleland Collective has
ple of Matabeleland who have remained a pain been one of Mnangagwa’s most successful ploys
in government’s neck since the 1980s. to silence dissent in the region, which is known
to be militant.
Mnangagwa said the days of “bambazonke” are
over as he plans to take the Independence cele- With donor fatigue creeping in, Matabeleland
brations, which have become a partisan Zanu PF civil society has been silenced, to the detriment
affair, to the 10 provinces of Zimbabwe. of the marginalised communities in the region.

Bulawayo residents were treated to a football Mnangagwa has also frequented Binga, donat-
match between Highlanders and Dynamos, ing fishing rigs in a bid to woo the marginalised
while a music gala featuring South African star community to vote Zanu PF in 2023.
Master KG was held on the evening of 18 April.
In the 26 March by-elections, Zanu PF made
Observers believe Mnangagwa’s decision to significant inroads in Binga, a worrisome factor
frequent Matabeleland, unlike Mugabe, is in a for the opposition.
bid to whitewash Gukurahundi.
Apart from his manoeuvres in the region,
Since grabbing power on the back of a mili- Mnangagwa has also moved to appoint former
tary coup in 2017, the 79-year-old has moved Zipra guerilla Philip Valerio Sibanda army com-

Page 16 News NewsHawks

Issue 77, 22 April 2022

“WHEN you see a rat running into a fire, then Why Zimbabweans won’t flee
you know that what it is running away from is South Africa to return home
hotter than the fire.” — African proverb.
Elvis Nyathi was recently burnt to death in South Africa.
Zimbabweans, who are in their millions in
South Africa — some estimates say 1.5 million I won’t go back to Zimbabwe because there are no Pretoria, Johannesburg, Cape Town, Durban, litical persecution are the main push drivers of mi-
and others say three million — are caught be- jobs there, the economy has collapsed and there is Port Elizabeth and Nelspruit, you will always find gration to South Africa,” the report says.
tween a rock and a hard place. widespread poverty, especially for ordinary people Zimbabweans.”
like me. My life is now here forever.” “Pull drivers include the assistance of relatives
Like the proverbial rat, they are running into a Brian Mudau, a Zimbabwean immigrant in the already in South Africa and the prospect of em-
fire — xenophobic inferno — in South Africa, but Tawanda Dewa, a Zimbabwean immigrant in transport sector also from Beitbridge and a friend ployment.”
that means what they are running away from in Rosettenville, a suburb south of Johannesburg, to Tlou, adds: “You see, for us we don’t view South
Zimbabwe — protracted political and economic who works for a hotel, said he was in that country Africa as a foreign country. It's our ancestral home. The International Organisation for Migration
instability — is hotter than the xenophobia con- for economic reasons and would not go back to Many Zimbabwean ethnicities or people like my- Zimbabwe says the emigration of Zimbabweans
flagration across the Limpopo River. Zimbabwe unless things change. self (Venda), Tlou (Sotho) and Ndebeles in gener- to South Africa has both a negative (brain drain)
al originate from South Africa. It’s their ancestral and positive (remittances) impact for the sending
Zimbabweans may be arrested, detained and “I came here for one thing and one thing alone: home. So no one can tell us when and how we country, but is largely influenced by economic fac-
deported, amid harassment, intimidation and vi- Employment. I was working in Harare and got should visit and live in South Africa. As long as we tors. For South Africa it brings skills, but also fuels
olence, yet still they stay put or go back to South retrenched in 2005. After that, I spent three years have the papers, we are here and won’t go back to joblessness and crime in some cases.
Africa. jobless and then I decided to leave Zimbabwe for Zimbabwe. People must sit down, chill and un-
South Africa in 2008 in search of a job. I’m now derstand this historical reality.” “Zimbabwe has experienced a progressive rise
They get violently attacked and even brutal- working at a hotel, getting just enough to survive. in emigration since 2000, and the vast majority
ly killed, as the recent case of Elvis Mbhodazwe If I go back home, I won’t get a job; I will starve.” Apart from the majority spoken Shona, Zimba- of the emigrants were to the southern African re-
Nyathi shows, but still they soldier on there. bwe’s constitution recognises several other indige- gion (particularly South Africa). Emigration pat-
For Sibahle Ndlovu, another Zimbabwean im- nous languages, which are also official languages terns have been complex, marked by an increase
New immigrants still arrive in South Afri- migrant from Bulawayo who resides in Soweto, in South Africa: Ndebele (which is a Zulu dialect), in informal cross-border movement, migration of
ca even after such a horrific murder incident. It the choices she faces are grim and difficult. Sotho, Tswana, Shangani, Venda and Xhosa. highly skilled nationals and survival migration of
seems nothing will deter them, not even violent, the poor and impoverished,” it says.
angry and hungry mobs among the South African “It’s like one is caught between a rock rock and Besides the push and pull factors around politi-
subaltern in shacks where life can be Hobbesian a hard place. I would love to back to Bulawayo cal, economic and social issues forcing Zimbabwe- Over the past decades, Zimbabwe has experi-
— nasty, brutish and short. and live with my family there, but at the same ans to emigrate and become immigrants in South enced significant changes with regard to interna-
time there are no jobs in Zimbabwe. The economy Africa, cultural affinities also influence people’s tional migration flows. Historically, it was a coun-
Nyathi was recently killed in Diepsloot, an is dead. So I have to choose being here amid xeno- movement. try of origin, transit and destination all at the same
overcrowded, poor and violent township north of phobia and going back home to starve. I work in a time, although the balance between these three
Johannesburg, by vigilante mobs for not having an restaurant and I’m surviving.” Migration usually happens as a result of a com- elements has now shifted.
identity card and alternatively failing to give them bination of push and pull factors.
R300. His murderers managed to extort R50 from Zimbabweans generally dominate South Af- Initially Zimbabwe, whose economy was the
his wife Nomsa Tshuma, but still killed him. rica’s hospitality, food and beverages, restaurants For Zimbabweans going to South Africa, it most sophisticated and strongest in sub-Saharan
and fast-food outlets industry. This has triggered started in the 1950s and 1960s during the Wit- Africa outside South Africa, was a major country
The gruesome murder left most Zimbabweans hostility from locals who feel their jobs are being watersrand Native Labour Association (Wenela) destination, especially for migrants from Malawi,
in a state of shock and seething with outrage. taken by foreigners, although the aversion extends days. Zambia and Mozambique who now number in
to professionals and those in the corporate world. the millions.
Nyathi was by no means the only victim. Wenela was set up by the gold mines in South
In May 2008, a series of xenophobic attacks South Africans say they cannot watch their Africa as a recruiting agency for migrant workers. It had huge opportunities, good salaries, decent
left 62 people, including Zimbabweans, dead; al- country being taken over by immigrants, hence an infrastructure, a strong currency (the Rhodesian
though 21 of them were South Africans. upsurge in hostility. Amid growing inequality, un- Eventually, it comprised a large organisation pound and later Zimdollar was stronger than the
In 2015, in Alexandra township, another over- employment and poverty, South Africans are now with its own depots, buses and aeroplanes across United States dollar) and better standards of liv-
crowded, poor and violent residential area with a scapegoating foreigners to vent pent-up frustra- the whole of southern Africa, covering Lesotho, ing. As the bread basket of the region, it inevitably
sea of shacks, just across the freeway to the afflu- tions even though their leaders know chasing away Eswatini, Namibia, Botswana, Zimbabwe, Mo- attracted immigrants.
ent Sandton — the best illustration of inequality immigrants will not address deep-seated social and zambique, Zambia, Malawi, Democratic Repub-
in South Africa — a crowd watched as two men economic problems in society. lic of Congo and Tanzania. However, due to its economic collapse Zimba-
bludgeoned and stabbed to death a migrant from bwe is now primarily a country of origin for im-
Mozambique, Emmanuel Sithole, a small-time Zimbabweans are found almost everywhere in Studies show Zimbabweans move largely for migrants. It is also a country of transit, especially
vendor of loose cigarettes. He was the seventh per- South Africa, although they are concentrated in economic reasons. The pull factors include jobs, for migrants from interior African countries, trav-
son to die in a wave of anti-immigrant violence places like Hillbrow, Yeoville and Braamfontein in better salaries and higher standards of living. The elling towards South Africa. To a limited extent, it
that echoed the horrors of 2008, when more than Johannesburg, including the city’s central business push factors entail lack of employment, poor wag- is still a country of destination.
60 people — closely resembling the Sharpeville district. There are also plentiful is townships like es and low standards of living.
massacre — were killed in xenophobic attacks that Alexandra, Diepsloot, Soweto, Tembisa, Thokoza, The choice is stark for Zimbabwean immigrants
shocked the world. Katlehong, and Daveyton, among others. A study done by ReliefWeb, a New York-based in South Africa: Stay on amid xenophobia, while
The images of immigrants, “necklaced” with humanitarian information portal founded in eking out a living or go back home for peace’s
fuel-filled automobile tires and set on fire, under- Places like Sunnyside in Pretoria and Mid- 1996 and run by the United Nations Office for sake, but reel from unemployment and poverty.
lined the brutality of the killings. The night before rand are also teeming with Zimbabweans, just the Coordination of Humanitarian Affairs, titled
Sithole’s murder, mobs had rampaged through the like Cape Town, Port Elizabeth (Gqeberha) and Migrants in Countries in Crisis South Africa Case For most Zimbabweans, the answer is simple:
township, looting businesses run by African mi- Durban central business district. Study: The Double Crisis – Mass Migration From It is better to stay and endure the risk of xeno-
grants and setting foreign-owned shops alight. Zimbabwe And Xenophobic Violence in South Afri- phobia or even die in South Africa while doing
The Sithole murder got a blaze of publicity “Zimbabweans are all over South Africa,” ca, found that Zimbabweans move to South Africa something for a living, than go back home where
after being captured on camera by photojournal- says Tapelo Tlou from Beitbridge in Zimbabwe. for political and economic reasons. there is peace only to be buffeted by a collapsed
ist James Oatway. Those who killed Sithole were “From Musina to Louis Trichardt, Polokwane, economy, poverty and suffering. — STAFF WRITER
found guilty and jailed. “Economic hardship, unemployment and po-
Sithole’s killing touched the conscience of for-
mer Mozambican and South African first lady
Graca Machel, widow of Samora Machel and later
Nelson Mandela. “I am South African. I am Mo-
zambican. I am Zambian. I am Zimbabwean,” she
said at his memorial service.
Now there is a renewed xenophobic sentiment,
especially against Zimbabweans. They are the tar-
get largely because of their huge numbers and that
they are always in South Africans’ faces daily.
Zimbabweans are accused of stealing jobs, fuel-
ing crime, especially violent criminality, and kill-
ing South Africans. Although South Africa’s social
and economic problems are structural and histor-
ical, as well as a product of leadership, governance
and policy failures, locals are venting their anger
on black foreigners.
This has given rise to anti-foreigner groups like
the Dudula Movement, led by activist Nhlanhla
“Lux” Dlamini, campaigning to drive away im-
migrants, especially from Zimbabwe. Thus, Zim-
babweans are bearing the brunt of a surging an-
ti-black African wave of hostility from locals.
However, no matter how bad the situation
might be Zimbabweans will not go away.
A Zimbabwean immigrant, Bongani Khum-
alo, living in Yeoville, Johannesburg, who works
for a local manufacturing company, told The
NewsHawks: “There is a new anti-black African
immigrant wave, particularly targeted towards
Zimbabweans, in South Africa. This has given rise
to mantras like ‘South Africans First’, ‘Foreigners
Must Go’ and ‘Operation Dudula’. People are
now living in fear, especially those in the town-
ships. I came to South Africa in 2000 for opportu-
nity, survival and cultural reasons. I found a way of
survival over the past 22 years I have been here. So

NewsHawks News Page 17

Issue 77, 22 April 2022

Zim@42: Public hospitals now derelict

THE situation in public medical institutions Chiredzi Hospital has gone for months without a working ambulance.
in Masvingo has reached critical levels since the Masvingo General Hospital is among hospitals operating without basic pain killers like paracetamol.
country attained Independence as most hospitals
are operating without the required medical equip-
ment and drugs, putting the lives of patients at
risk.

Investigations by The NewsHawks revealed
Masvingo General Hospital and most district
hospitals are operating without basic pain killers
like paracetamol. Patients are going to hospitals
for prescriptions only. Testing machines for high
blood pressure are also in short supply, with Mas-
vingo General Hospital having a single machine
being shared by five wards.

Chiredzi Hospital has gone for months with-
out a working ambulance as its fleet is grounded
due to mechanical faults. The institution is facing
challenges when taking patients from the district
clinics and when transferring referrals to Harare.

Ngomahuru Psychiatric Hospital is current-
ly operating without critical drugs for mentally
challenged patients. The hospital is also grappling
with shortages of blankets and bed linen as well as
beds, with some patients now sleeping on the floor
due to an increased number of their intake, which
medical experts attribute to the harsh economic
situation being experienced in the country.

Patients are also bringing in their own blankets
and bed linen to Masvingo and Chiredzi hospitals
as the medical institutions are either facing their
shortage or they cannot afford to buy soap for
laundry.

Expecting mothers are bringing in all required
medical utensils like gloves and blades at all public
institutions for nurses to attend them. The short-
age of equipment in maternity wards is also cited
as the major cause of mortality deaths as expecting
mothers are usually not attended to on time.

Deputy minister of Health and Child Care Dr
John Mangwiro said he was not aware of what is
happening in Masvingo Hospitals and referred
questions to Masvingo provincial medical Sham-
hu who said he was in a meeting when The News-
Hawks called him for a comment.

However, Chiredzi Hospital medical super-
intendent Dr David Tarumbwa told The News-
Hawks that two ambulances at the hospital broke
down due to mechanical faults and the hospital is
failing to raise money to repair them. He said it
is not a secret that hospitals are facing challenges,
but they differ according to locations.

“It is true that our ambulance fleet is down but
we have other service vehicles which we normally
use to ferry patients. We are not an exception as a
hospital in terms of challenges, but these challeng-
es differ from hospital to hospital, depending on
the availability of partners. We have our own chal-
lenges which are different from Masvingo Hos-
pital, but we always strive to assist our patients,”
Tarumbwa said.

An official at Chiredzi Hospital told The News-
Hawks that nurses are going to work, but they are
doing nothing since the hospital does not have
medicine and the required equipment. He said
patients are eating beans on a daily basis and those
referred to other hospitals have to hire private am-
bulances for them to be transported.

“We are going to work for the sake of going
to work but we are offering patients nothing. It is
sad to tell you this but the situation is the same in
all public hospitals in the country. People are pay-
ing for medical fees in the local currency which,
in turn, makes it difficult for the hospitals to buy
supplies. In turn, government is not offering hos-
pitals grants to sustain themselves, resulting in the
current situation which is pathetic. I am encoun-
tering the worst situation since joining the medi-
cal fraternity more than 10 years ago,” the official
said.

“Patients at Ngomahuru are not being spared
the rot in our medical institutions in the country.
Critical drugs like chlorpromazine which comes
in tablets and intramascular injections; diazepam,
an intramascular or intravenous injection, are in
short supply at Ngomahuru which should be giv-
en priority by our government as mental patients
are increasing and we attribute it to poverty. The
hospital went for weeks without water last year
and it seems authorities are not worried about that
institution,” a senior medical officer in Masvingo
said. — STAFF WRITER.

Page 18 News NewsHawks

Issue 77, 22 April 2022

High Court boots out Pfugari executor

THE High Court has stopped the liquidation biased in favour of Mandizvidza Duty Act and that the auditors who had valued The Master of the High Court then agreed
and distribution of accounts in the estate of the Mandizvidza however refuted the allegations the companies had taken into account all rele- with the executor that section 6(g) (iii) is applica-
late business mogul Edward Nyanyiwa, who was vant facts and considerations. ble in the valuation of company shares and that
better known as Eddies Pfugari. against him and the liquidation account. this approach had not been formally challenged
In relation to allegations of improper valua- On the question of his charges, his response to date. But the High Court judge ruled that
This follows a controversial rush by the execu- was that the applicant had failed to demonstrate Mandizvidza’s fee was too high before chucking
tor, Clever Mandizvidza, to dispose of the estate. tion of the late Edward Nyanyiwa’s shareholding, how the estate had been overcharged and that he him out as the executor. — STAFF WRITER.
his defence was basically that the valuation had simply taxed the estate as informed by statute.
Mandizvidza has however been removed from been done purely under section 6 of the Estate
the position after Nyanyiwa’s daughter Henrietta
approached the High Court following discom-
fort over the way Mandizvidza was running the
estate’s affairs.

High Court judge Justice Owen Tagu upheld
her concerns.

“Whereupon after reading documents filed of
record and hearing counsel it is ordered that the
Master of the High Court’s decision to confirm
Mandizvidza’s interim liquidation and distribu-
tion accounts in the estate of the late Edward
Nyanyiwa under DR number 471/19 be and is
hereby set aside.

“The interim liquidation and distribution ac-
counts filed by Mandizvidza in the estate of the
late Edward Nyanyiwa under DR 471 /19 be
and are hereby set aside.

“Mandizvidza be and is hereby removed from
the position of executor dative for Estate Edward
Nyanyiwa DR 471/19.

“The master of the High Court shall within
10 days of being served with this order appoint
an impartial person to carry out a valuation of
the shares held by the late Edward Nyanyiwa in
all the companies that the estates have interest in.

“It is hereby declared that the executor for the
estate of the late Edward Nyanyiwa shall charge
his fees at five percent of the gross value of the
state,” ruled the judge.

The Master of the High Court was cited as the
first respondent in Henrietta’s application.

Mandizvidza was cited as the second respon-
dent while Eddies Pfugari (Pvt) Ltd and E Pfug-
ari Properties (Pvt) Ltd are the third and fourth
respondents respectively.

Henrietta is one of the late property mogul’s
five children who are embroiled in a vicious
wrangle over their father’s US$30 million estate.

Pfugari, one of the pioneers of Zimbabwe’s
black economic empowerment crusade, died on
10 February 2019 at his Milton Park home in
Harare, leaving behind a massive business em-
pire under the flagship E Pfugari Properties (Pri-
vate) Limited and a number of assets.

Henrietta had told the court that the Mas-
ter’s decision in both respects of approving the
interim liquidation and distribution accounts
and retaining Mandizvidza as an executor of her
father’s estate was irrational, biased and unrea-
sonable.

She said on 25 August 2020 her lawyers wrote
to Maandizvidza expressing concern on his hur-
ried desire to dispose of assets to raise adminis-
tration costs that had not been properly ascer-
tained.

Mandizvidza was charging 15% for his ser-
vices instead of only 5%.

He was also confronted by Henrietta over the
failure to carry out a proper valuation of shares
owned by her father in the various companies he
had interests in, particularly the failure and re-
fusal to take into account the liabilities of those
companies in determining the value of the shares
as well as the unlawful disposal of company as-
sets as opposed to the deceased’s shares in those
companies.

It was Mandizvidza’s refusal to rectify the er-
rors followed by his persistent and frantic desire
to quickly dispose of company assets and allo-
cating the bulk of the proceeds to himself while
leaving the beneficiaries to inherit valueless
shares of insolvent companies, which prompted
Henrietta to approach the Master of the High
Court.

Surprisingly, the Master of the High Court
did not see anything wrong with what Mandiz-
vidza was doing.

Henrietta argued that the first schedule to
the Estate Administrators (Registration and
Examinations) Amendment rules, 2018) No.4)
SI 59/18 provides that an executor’s fees on the
gross value of assets is 5%.

She said the Master of the High Court’s ac-
tions and interpretations of regulations was
flawed and strange that it left her feeling he was

NewsHawks News Page 19

Issue 77, 22 April 2022

NYASHA CHINGONO White commercial farmers
sold raw deal — US report
THOUSANDS of white commercial farmers white farmers and redistributed large tracts
who lost their land during Zimbabwe’s fast- A report claims the Zimbabwean Government paid former white commercial farmers US$1 million in of land to nearly 300 000 indigenous Zimba-
track agrarian programme are still to receive token payments as partial compensation for losses suffered from the land redistribution programme. bweans, arguing it was redressing colonial land
compensation, two years after the government ownership imbalances.
promised a US$3.5 billion windfall, a US em- state to do so,” the US embassy notes. “Government has commenced payments un-
bassy report has revealed. Last month, Zimbabwe’s cash-strapped gov- der the Global Compensation Deed, while the The agreement, signed in Harare, showed
interim target for making half of the US$3.5 that white farmers would be compensated for
The US Embassy Human Rights Report for ernment deferred the payment of US$1.75 billion total has been extended to July 2022,” infrastructure on the farms and not the land
2021 notes that the government has paid only billion in compensation to the ex-farmers after the Finance minister said. itself, in line with the national constitution.
US$1 million in token payments as partial failing to raise the required funds.
compensation for losses suffered from the often Initially, the government had set a target of Under the compensation agreement, the
violent land redistribution programme. Finance minister Mthuli Ncube says the June 2021. government made a commitment to re-pay
government will make payments mid-year after ex-commercial farmers for improvements un-
“The deal promised half of the payments af- missing the initial date, but officials insist there At the turn of the millennium, Robert Mug- dertaken on the land before losing it under the
ter one year and the remainder over the course is no money to pay. abe’s government repossessed land from 500 land reform programme.
of the next four years. In June the government
made a one-million-dollar token payment to Last year, Treasury announced the appoint-
commercial farmers but delayed additional ment of United Kingdom-based Newstate
compensation payments until 2022,” the re- Partners as financial advisers to the agreement
port read by The NewsHawks reads. with effect from April 2021.

In 2020 the government, the Commer- According to Ncube, the financial advisers
cial Farmers’ Union, and other farmer groups have already commenced work with the Joint
signed a US$3.5 billion compensation deal for Resource Mobilisation Committee supporting
farms expropriated in the decades following its capital-raising efforts.
Independence. The deal promised half of the
payments after one year and the remainder over Ncube then said the Newstate Partners had
the course of the next four years. tabled funding options that include bonds is-
sued domestically (both listed and unlisted),
“Most commercial farmers reported the gov- bonds issued into international markets (both
ernment had still not compensated them for listed and unlisted), and listed and unlisted eq-
losses suffered from the land resettlement pro- uity and quasi type instruments.
gramme in the early 2000s,” the report further
reads. The Commercial Farmers Union estimated
there were fewer than 400 active white com-
The southern African nation has in the past mercial farmers still living in the country.
admitted it had no money to pay off former
commercial farmers. According to the “glob- They however remain a target for eviction.
al compensation agreement”, the government The government, according to the report,
had planned to issue long-term bonds and continued to allow individuals aligned with top
jointly approach international donors with the officials to seize land not designated for acqui-
farmers to raise funding. sition and the media commonly cites high-lev-
el government officials possessing large farm
According to the constitution, the govern- holdings.
ment must compensate persons for improve- Government began a comprehensive land
ments made on land taken by the state, but it audit in 2018 to reflect land ownership accu-
does not set a timeline for providing compensa- rately, but as of year’s end, the commission had
tion. This loophole in the constitution could be not completed the exercise.
manipulated to prolong the payment timeline,
observers say.

“The government rarely provided restitution
or compensation for the confiscation of pri-
vate property, and police generally did not act
against individuals who seized private property
without having secured authorisation from the

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Page 20 News NewsHawks

Issue 77, 22 April 2022

Heavy pollution threatens aquatic life

NATHAN GUMA l Diarrhoea claims at least 829 000 people annually

PEOPLE and aquatic creatures in several rivers phosphates. (WHO) fact sheet on sanitation. pH, and the presence of other contaminants.
and dams are facing health risks due to improp- The nutrient is usually contributed by mu- An increase in manganese levels was also ob- Basically, water quality from these rivers clearly
erly disposed sewage effluent which is causing indicates the impact of poor waste water man-
a rise in chemical levels, a report has revealed. nicipal sewage effluent which contains domestic served in three of the five rivers, namely Nyat- agement in the country, especially sewer,” said
and industrial phosphate-based detergents, said sime, Manyame and Umguza. the report.
An estimated 399 mega litres of raw and part- the report.
ly treated sewer water is discharged daily into “High concentrations in ambient water is Ema urged local authorities to “mainstream
the environment, mainly water bodies, says a re- People living close to Manyame River in normally attributed to untreated or inadequate- environmental issues into development through
port by the Environmental Management Agen- Chitungwiza rely on its water for daily use, ly treated industrial effluent. The average man- the Local Environmental Action Plans (LEAPs),
cy (Ema) titled: Half-year ambient water analysis hence exposing them to health hazards. ganese concentrations for the three rivers were as mandated in section 95 of the Environmental
for 2021. noted to be above the recommended limit of Management Act (Chapter 20:27).”
At least 829 000 people are estimated to die 0.1 mg/l with Umguza recording the highest at
Every month, Ema collects water samples for each year from diarrhoea as a result of unsafe 0.49mg/l. LEAPs enable local authorities to be proac-
quality monitoring from 386 strategically se- drinking-water, among other factors, whilst tive in reducing environmental pollution and
lected points across the country. globally at least two billion people use a drink- “In aquatic environments, manganese tox- land degradation, at the same time finding less
ing water source contaminated with faeces, ac- icity is slight to moderate and is influenced by costly and lasting nature-based solutions.
The agency made an analysis on five major cording to a 2022 World Health Organisation several factors such as water hardness, salinity,
rivers which feed into some prominent dams
rivers, namely: Manyame in Harare, Nyatsime
in Chitungwiza, Umguza in Bulawayo, Mt-
shabezi in Gwanda and Runde in Masvingo.

The analysis to measure the extent of pollu-
tion was based on three parameters: dissolved
oxygen saturation, phosphates and manganese.

Dissolved oxygen percentage saturation is an
important parameter which indicates ability of
a water body to sustain aquatic life forms which
depend on oxygen for survival.

Nyatsime, Mtshabezi and Umguza rivers re-
corded dissolved oxygen levels ranging between
35.28% and 42.45%, against a recommended
limit of 60%.

This is because the rivers receive sewage ef-
fluent from urban treatment plants which pass
through urban setups.

Low dissolved oxygen levels in ambient wa-
ter are normally associated with high nutrient
content which necessitate high concentrations
of phosphates and nitrogen in water bodies.

Excessive phosphates in the human body
cause kidney failure, and can be fatal to aquatic
life such as fish.

In addition, larger-than-normal levels of
phosphate cause bone and muscle problems, in-
creased heart attacks and strokes.

Phosphate levels for the five rivers ranged
between 0.023 milligrams per litre (mg/l) and
2.71mg/l against a recommended limit of
0.5mg/l, with Nyatsime and Umguza rivers
worst affected by both dissolved oxygen and

NewsHawks News Page 21

Issue 77, 22 April 2022

NATHAN GUMA Funeral dirge as maize,
bread turn into luxuries
IT is 7pm and James Chiwetu (25), a worker in
Harare’s Workington industrial area, is trudging A woman at a bread section in a supermarket yesterday after its price rose beyond the reach of many. — Picture: Aaron Ufumeli
back home from work as he gets soaked in a tor-
rential downpour. A man holds Zimbabwe’s newly introduced $100 dollar note. — Picture: Ruvimbo Muchenje

On a normal day, he would have boarded a commodities reserved for special occasions like people, live in extreme poverty , on less than parallel exchange rate jumped from ZW$240 to
commuter omnibus home, but weary and stag- Christmas. US$1.90 a day, according to the World Bank. ZW$250, then ZW$300.
gering, he has been forced into walking by a bus
fare hike. Only people with prominent job titles could This statistic is likely to increase in Zimbabwe The note, Zimbabwe’s highest denomination,
access the commodities, among them teachers and the world, considering the number of people is worth US$0.67 using the official exchange rate.
Chiwetu had ZW$240, which was equivalent and other civil servants. failing to access basic commodities due to sharp
to US$1, when he left home. This would take price hikes. Economist Vince Musewe says the country
him from Workington to town, then home, by Today, 42 years after Independence, civil ser- should have confidence in its own currency.
informal transport. vants cannot even dream of eating these basic The Confederation of Zimbabwe Retailers
foodstuffs. (CZR) says retailers and wholesalers are major “There are several key causes of price hikes,”
But, to his shock, the fare has shot up from scapegoats in price hikes, despite their plight too. Musewe says. “Simple profiteering where sup-
ZW$120 to ZW$150. This means he now needs A standard loaf of bread now costs ZW$345, pliers mimic other suppliers. Again, there is an
ZW$300 from work to town then home. The which is US$2.29 using the official rate. The “These fall at the tail end of the value chain and inflationary outlook where sellers expect costs to
deficit has been enough to make him walk home. same is selling at US$1 on the ZW$300 rate. unfortunately bear the brutal brunt of consumer increase and therefore hike current prices in an-
disaffection whenever prices move. Most basic ticipation,” Musewe says.
“The numerous rate hikes are killing us,” he In Zimbabwe, a teacher earns ZW$19 850 ex- commodities attract between 2% and maximum
says. “In the morning, the rate was ZW$240 for cluding allowances. 10% mark-up after receiving product from sup- In addition, he says Zimbabwe suffers from
a dollar. I cannot predict where it will be tomor- pliers,” says Denford Mutashu, CZR president. imported inflation through goods sourced from
row.” “I have had to start a side project,” Millicent outside the country.
Machova, a primary school teacher says. Lately, blame has been attributed to Russia’s
Chiwetu represents several people falling prey invasion of Ukraine which has shaken the world “Other causes of inflation are when there is a
to price hikes fuelled by a continual shift in ex- She sells second-hand clothes during week- markets. The global economy is now expected to money supply increase, where consumers have
change rates. ends to raise fees for her young child who is in grow 3.6%, down 0.8% from the International more disposable incomes than before,” he added.
Grade six. Monetary Fund’s (IMF) January forecast, due to
In Harare’s Sunningdale suburb alone, com- the war and its impact. He says price hikes also occur “when suppliers
muter omnibuses have a ZW$240 rate, while in- The cost of living has maintained an upward want to ensure replacement costs are covered in
formal retail outlets are using the ZW$300 rate. trend over the months, shooting up by 17.9% Mutashu says consumers and retailers are a the future and therefore hike prices in anticipa-
between February and March 2022, according to “mirror reflection of collective activities taking tion”.
Currency volatility has been evident as vari- the Consumer Council of Zimbabwe (CCZ). place within the value chain”.
ous corporates are using several exchange rates, Musewe says only improved confidence in the
namely: parallel market, official Reserve Bank of The cost of living, as measured by the CCZ’s Some consumers say the introduction of the local currency can help curb future price hikes.
Zimbabwe and Innscor In-Store exchange rates low-income urban earner monthly basket for a ZW$100 bank note is likely to add fuel to the
which are pegged at ZW$320.00, ZW$150.2157 family of six, increased from ZW$78 191.39 at fire of inflation. “It is difficult to avoid hikes in an environment
and ZW$240 respectively against the US dollar. the end of February to ZW$92 192.89 in March like ours where there are inflation expectations
2022. A few days after the note’s introduction, the and lack of confidence in our own currency,” he
Being an inexperienced shopfitter, he is not on says.
a full contract like other industrial workers, but is About 9.2% of the world, or 689 million
paid in wages based on time spent at work.

“Sometimes I get US$150 or less, which, if
broken down, amounts to almost nothing. I have
to pay rent and food, after that I cannot send
anything to my mother back home.”

Chiwetu pays US$60 in rentals for a single
room in Sunningdale suburb. This leaves ba-
sic commodities competing for the remaining
US$90.

On a monthly basis, he needs foodstuffs,
namely: the staple maize-meal, salt, four kilo-
grammes of sugar, six kilogrammes of rice and
two litres of cooking oil.

Using new rates, he forks out at least
ZW$11 871 for all the commodities, which
translates to US$79.03 using the official ex-
change rate pegged at ZWL$150.21. The way
things are going, he might even need more the
next day.

“It is disheartening that prices are skyrocket-
ing, but my salary is remaining the same, at times
even decreasing,” Chiwetu says.

It never rains but pours for consumers like him
who are bearing the brunt of price hikes.

The Grain Millers’ Association of Zimbabwe
lit a fire under several consumers by effecting
shocking mealie-meal abd wheat price hikes.

As a result, these basic commoditities are avail-
able yet scarce as most consumers find them un-
affordable.

“Commodities are available, but I can ill afford
buying from a supermarket,” a vendor in Harare’s
central business district says.

She keeps an eagle eye for council police who
frequently pounce on the unsuspecting vendors,
while beckoning her two-year old child who is
playing on the pavement.

“I have to pay a bribe ranging between US$3
and US$10, which is almost all of my day’s work.
That is the money I have to use on foodstuffs like
mealie-meal,” she adds.

In March, the price of a 10-kilogramme pack
of maize-meal was hiked from ZW$955.00
(US$7.64) to ZW$1 099 (US$8.44), while
bread flour also went up from ZW$119 000 to
ZWL$136 544 per metric tonne.

On the first hike effected in March, the official
exchange rate was pegged at ZW$130.15 against
the US dollar.

While consumers were grappling with the
increase in the price of mealie-meal, GMAZ an-
nounced 52% and 31% hikes in prices of maize-
meal and flour respectively.

A 10-kilogramme pack of mealie-meal
now costs ZW$1.665 (US$11.08), up from
ZW$1 099 (US$7.32) using the ZW$150.21
rate.

This has left many failing to access basic com-
modities. Basic foodstuffs have become unaf-
fordable and can only be frequently consumed
by a privileged few. In the 1980s, many families,
particularly in rural areas, saw bread and rice as

Page 22 News NewsHawks

Issue 77, 22 April 2022

MARY MUNDEYA Environmental protection
safegurads women’s rights
MARIA MUSHORE, a proud grandmother of
10 and a resident of Mubvundudzi Village, Ward little rainfall the area is receiving as part of their rely on the government or donor aid. begin to assess whether this is accurate and what
13, in Mashonaland Central’s Rushinga district, climate change adaptation practices. “We have noticed that communities are being it entails. This is especially true given the just-re-
passionately describes the day she left her home- leased report by the intergovernmental panel on
stead to go and stay with her now late husband “We sat down and decided to remove the silt affected differently by climate change and it is im- climate change on the need to scale up adaptation
Tigere. that has for decades been washed into many of portant that each one comes up with tailor-made for which nature-based solutions will be crucial.”
our rivers so that we increase their storage volume. homegrown solutions. We decided not to wait for
“When I got here, I fell in love with how doing In some instances, we have also constructed weir government or donor assistance. As communities, A climate change mitigation expert in Zimba-
household chores was easy. Almost everything we dams that retain water after we receive rain. it has become imperative that we get help whilst bwe’s ministry of Environment, Climate, Tourism
needed, like water and firewood was not far from we are also being innovative on our own.” and Hospitality Industry, Lawrence Mashun-
our reach. As you know, in our culture, a new “Although the work is being done manually gu, said the de-siltation of rivers being done in
bride has to show her newfound family that she is without any modern machinery such as scrapers “In our scenario, we agreed that both men and Rushinga is a noble idea that needs to be comple-
an asset who is able to do any kind of work she is and excavators, we are being extra cautious by dis- women were going to work collectively until we mented by smart cultivation practices.
assigned to do,” she said. posing the removed silt onto poor sandy soils and achieve our desired results. We have received the
creating silt traps to make sure that we reduce the first rains and most of our desilted rivers and weir “The de-silting being done by the communities
That was 48 years ago. re-siltation of our rivers,” the member of Parlia- dams now have some water which is going a long in Rushinga is a very noble idea. At the same time,
Things have dramatically changed and she has ment for Rushinga constituency, Tendai Nyabani, way in alleviating the water shortage,” Mabhande they always say prevention is better than cure. The
witnessed shifts during her near five-decade stay in said. said. most fundamental issue around the protection
Rushinga. She is now part of hundreds of women of our river systems and our water bodies is the
who travel between 15 and 20 kilometres to fetch The villagers are also hoping that the increase in The 5th United Nations Environment As- issue of preventing land degradation, preventing
water for domestic use three times per week. their rivers’ water storage volume will lead to a rise sembly (UNEA) came up with 14 resolutions soil erosion by ensuring that we stop stream bank
“I have been staying here since 1974 and wa- in the area’s water table. to strengthen actions for nature to achieve sus- cultivation and practice good agricultural prac-
ter was not this scarce. We used to receive rainfall tainable development goals. The world’s minis- tices that are recommended by the government,
that was enough to make us have good harvests. “We are very happy with the progress that the ters for the environment agreed to implement the Environmental Management Agency (Ema),
It is such a shame that women now have to take de-siltation programme has made so far and we actions to protect, conserve, restore, sustainably among other regulatory bodies.”
turns and walk very long distances to fetch water,” are hopeful that our water conservation methods use and manage ecosystems. The resolution calls
Mushore, lamented. will result in the rise of our water table. It would on the United Nations Environment Programme Rushinga residents are hopeful of a future where
Rushinga is one of the many areas in Zimbabwe be a joy to one day be able to drill boreholes that (UNEP) to support the implementation of solu- communities collectively embrace various climate
that have for years been experiencing the wrath of are not so far away from people’s homesteads, tions which safeguard the rights of communities change mitigation and adaptation programmes
climate change. Water has become a scarce com- that will give us safe water to drink,” said Mercy and indigenous people. that promote biodiversity conservation and smart
modity in the area. Koche, Zanu PF Mashonaland Central women’s agricultural practices. This will also save the wom-
For women, this brings out the issue of security league vice-chairperson. Executive director of UNEP Inger Andersen en from walking long distances in search of water.
because of numerous cases of getting attacked on said: “Having a universally agreed definition of l This article is part of the African Women in
their way to fetch water. There are also concerns Another community leader, Annah Mabhande, nature-based solutions is important. When coun- Media (AWiM)/UNEP Africa Environment
over sanitation and food security, given women’s echoed Koche’s sentiments and buttressed the im- tries and companies claim that their actions are Journalism Programme
gendered role in water collection and providing portance of communities coming up with solu- supporting nature-based solutions, we can now
food for their families. tions to their problems so that they do not always
According to Water.Org, a non-profit organ-
isation focusing on water access and sanitation,
today women around the world spend a collective
200 million hours collecting water. In addition to
time spent fetching water, millions may also spend
significant amounts of time finding a place to go.
Every year, families lose a lot of livestock to ter-
minal dehydration.
“Our livestock is in a sorry state. We have been
losing hundreds of cattle, goats and sheep due to
terminal dehydration. The erratic rainfall we have
been receiving for the years has made the availabil-
ity of water in this area a dream.”
According to Konrad Adenauer Stiftung’s book
titled Climate Change in Zimbabwe, Facts for Plan-
ners and Decision Makers, Zimbabwe’s climate
change will cause average temperatures to rise by
about 3°C before the end of this century. Annual
rainfall could decline by between 5% and 18%,
especially in the south. Rainfall will become a vari-
able.
Stiftung added, the quality of the water for both
urban and rural communities has deteriorated
due to population pressure, climate fluctuations,
cultivation and construction of watercourses and
wetlands, and pollution from agriculture, industry
and mining.
Life has changed, thus we have resorted to com-
ing up with solutions aimed at tackling the wa-
ter challenges we have faced for years,” Ward 13
councillor Joseph Chiputura said.
Villagers have joined hands and commenced
the de-siltation of rivers in a bid to conserve the

Maria Mushore (left) is among hundreds of women (top and right) who travel between 15 and 20 kilometres to fetch water for domestic use, three times per week, in Mashonaland Central’s Rushinga district.

NewsHawks News Page 23

Issue 77, 22 April 2022

A DELEGATION of Zimbabwean government Zim tourism operators ready
officials, tour operators and hospitality industry for the Durban travel indaba
players will attend this year’s tourism indaba or-
ganised by South African Tourism (SAT) in the authentic Zimbabwean food, languages, arts, mu- ZTA corporate affairs executive Godfrey Koti (right) Among other things, the Durban travel event
usually bright and breezy coastal city of Durban at sic, crafts and artifacts. ion Week, where designers showcase their cre- brings together southern African tourism players,
the beginning of next month. ations. To experience a destination is to get a real products and services for interactive trade. Usually
Other notable events include the Harare Inter- taste of its essence and be part of its soul through exhibitors in the Durban Exhibition Centre in-
Zimbabwe Tourism Authority (ZTA) corpo- national Festival of the Arts, Zimbabwe Interna- festivals and events. Koti said the Durban event cludes provincial authorities, provincial products
rate affairs executive Godfrey Koti told The News- tional Film Festival, Chimanimani Arts Festival, will give Zimbabwe a great opportunity and mo- and African countries.
Hawks this week a group of 20 stakeholders have Shoko Festival, Intwasa Arts Festival, Zimbabwe tivation to promote tourism through regional and
already confirmed they will travel to Durban for International Book Fair and the Zimbabwe Fash- international networks. At the Inkosi Albert Luthuli International
Africa’s premier tourism event, which returns af- Convention Centre, exhibitors’ categories entail
ter a two-year hiatus due to the global Covid-19 accommodation, tour operators, game lodges,
pandemic. More participants are likely to join the transport, online travel, luxury products, hidden
delegation as the travel date draws closer, he said. gems, industry associations and media.

“We are preparing for the Durban tourism ind- Outdoor exhibitors encompass transport,
aba because it’s a big marketing platform for us camping and safari companies.
as ZTA, a government tourism marketing agency.
So far we have a delegation of at least 20 people, This year’s theme, Africa’s Stories, Your Success,
who include officials, tour organisers, hospitality reaffirms the fact that Africa is reclaiming its own
industry players, safari operators and travel agents narrative and is ready to share with the world in-
ready for the event,” Koti said. spiring stories of resilience and innovation shown
throughout the pandemic.
“These stakeholders will be showcasing their
products and services, while cutting business deals SAT acting chief executive Mzilikazi Themba
and building networks that will advance their in- Khumalo has urged players in the tourism indus-
terests well beyond the event. We are travelling as a try, local, regional and international stakeholders,
group to share costs and we will have our own pa- to come and attend Africa’s Travel Indaba to share
vilion at the venue, where we will showcase Zim- ideas and learn new things. He said the event is
babwean offers to the world through the event. an African trade show specifically tailored to ad-
It’s a great opportunity for business and we will vancing the continent’s tourism sector needs, with
emphasise business-to-business interactions and a clear outlook towards recovery.
arrangements. As ZTA, our primary focus will be
to build linkages and relationships with exhibitors “We believe that this platform will showcase au-
and visitors, especially those from our key source thentic African experiences and products. Buyers
markets, which include South Africa, the United from across the globe will have access to only the
States, United Kingdom and Germany. We will best and uniquely African products and experienc-
vigorously promote the Visit Zimbabwe campaign es,” Khumalo said.
in Durban.”
Koti said the event will be a phenomenal
After a two-year freeze due to Covid-19 which springboard to relaunch South Africa and coun-
brought the world to a standstill, Africa’s premier tries like Zimbabwe back to the global arena to
travel indaba will be back and run from 2 May to start regaining international travel markets back.
5 May in South Africa’s warm coastal city.
At the last edition of Africa’s Travel Indaba in
Tourism operators, visitors, business, inter- 2019, the show attracted about 6 200 delegates
national exhibitors of hospitality products and from all over the world, with 1033 exhibiting
media will gather in Durban, as SAT welcomes businesses from 19 countries on the continent,
delegates from across the continent and the world showcasing an array of travel and tourism offer-
to connect and do business, contributing to the ings to almost 1 177 local, regional and interna-
African continent’s tourism sector recovery. tional buyers. Furthermore, around 452 local,
regional and international media representatives
Zimbabwean tour operators, visitors, business- participated at Africa’s Travel Indaba 2019, show-
people, exhibitors and media will attend the pres- ing the stature and global profile of the African
tigious event. Africa’s Travel Indaba is one of the continent’s tourism industry.
largest tourism marketing platforms on the Afri-
can calendar and one of the top three must-visit So far, more than 400 African exhibitors and
events of its kind in the world. 454 buyers from 47 countries around the world
have confirmed attendance to Africa’s Travel Inda-
It showcases the widest variety of Africa’s best ba 2022. —STAFF WRITER
tourism products and attracts international buyers
as well as media from across the world. The coastal city of Durban in South Africa.

Owned by SAT and organised by Synergy Busi-
ness Events (Pty) Ltd, it has won awards for Afri-
ca’s best travel and tourism show, including from
the Association of World Travel Awards.

Koti said Zimbabwe will be selling an attractive
package of tourism products; a combination of
tangible and intangible elements such as natural,
cultural and man-made resources, attractions, fa-
cilities, services and activities as part of its tourism
recovery plan.

Tourism — which the authorities want to build
into a US$5-billion industry by 2025 — is one of
the sectors the Zimbabwean government, under
President Emmerson Mnangagwa, wants to grow
towards its upper middle-income status by 2030.
It is guided by the National Tourism Recovery and
Growth Strategy, an official tourism blueprint,
whose implementation is spearheaded by Tourism
minister Mangaliso Ndlovu.

“We have a combination of material and in-
tangible elements, tourist attractions, facilities,
services and activities in Zimbabwe which we
want to sell to potential clients. We are promoting
Zimbabwe as a Meetings, Incentives, Conferences
and Exhibitions (MICE) hub; a tourism approach
which plans, books and organises conferences,
seminars and other events. We will ensure busi-
ness events held in Zimbabwe are run smoothly
in the right environment, with a competent and
professional staff complement ready to take care
of the market needs.”

Zimbabwe is a vibrant host of many festivals
and events every year — ranging from domestic
tourism events, music concerts, local wine tast-
ings, urban markets and international events, as
well as cultural activities.

Some of the well-known Zimbabwean events
are the International Victoria Falls Carnival and
the Kariba Invitation Tiger Fish Tournament,
among others. The country also offers a feast of
cultural festivals, food, and drink, which cele-
brates and showcases the evolution, and value of

Page 24 News NewsHawks

Issue 77, 22 April 2022

DUMISANI NYONI ‘Hiring lobbyists unhelpful
for Zim’s image rebuilding’
ZIMBABWE’S failure to attain and build a
good image in the international community is adigm shift in Zimbabwean international rela- US President Joe Biden says Zimbabwe failed significantly to initiate a re-engagement process.
worsened by hopeless tactics like the hiring of tions discourse. The period was characterised by
lobbyist organisations, critics have said. the fast-track land reform programme, which
was meant to correct the inherited colonial im-
In 2019, President Emmerson Mnangag- balances in land ownership.
wa’s government engaged London-based BTP
Advisers — which joined United States-based Although land reform was popular among
Mercury International Limited, Ballard Part- some clusters of society, it received internation-
ners and Avenue Strategies Global LLC — in al condemnation, as it was viewed as a violation
a quest to help Zimbabwe return to the com- of property and human rights. This led to the
munity of nations after decades of diplomatic imposition of sanctions on Zimbabwe by West-
isolation. ern nations, particularly Britain, the US amd
their allies.
But the Zimbabwe Coalition on Debt and
Development (Zimcodd), a civil society organ- Since then, Zimbabwe’s relations with the
isation which champions social and economic West have waned, prompting the Robert Mug-
justice, says the government’s decision to hire abe administration to adopt a “Look East” pol-
international public relations firms in its bid to icy.
spruce up its battered image globally is point-
less unless the Harare administration changes The isolation of Zimbabwe in the interna-
approach. tional community is detrimental to the growth
and development of the country.
Under the National Development Strategy 1
(NDS 1), Zimbabwe seeks to boost and reignite This is the reason why Zimbabwe is inten-
its image through scoring better in the Good sifying its image building and re-engagement
Country Index, which was at 100 out of 153 in process to thaw relations with the West, re-ne-
2019 with a target of being number 98 out of gotiate debt terms and open up new credit lines.
153 in 2021.
Nonetheless, the re-engagement calls for re-
However, the country’s efforts were not suf- forms by the government of Zimbabwe before
ficient to bring about transmutation in its im- the lifting of sanctions.
age as it failed to secure 98th position. Harare
actually performed worse in terms of ranking, Thus, Western countries encourage the gov-
emerging 111th in 2021, according to Zim- ernment to uphold free and fair elections, rule
codd’s abridged civil society monitoring mech- of law, property rights, compensation of white
anism report. farmers, implement security sector reforms, im-
prove the Ease of Doing Business, to mention
On competitiveness ranking, Zimbabwe a few.
failed to meet the NDS 1 target of attaining
rank 114 out of 140. Zimbabwe’s 2021 ranking The “Second Republic” made a commitment
was 127. This was amplified by a slide on the to implement all the necessary reforms, hence
Global Happiness Index, from 136th ti 148th the establishment of the Transitional Stabili-
out of 191 in 2021. sation Policy (TSP) (2018-2020) as the foun-
dation upon which the government’s commit-
“The failure by Zimbabwe to attain and build ment to re-engage was enunciated.
a good image in the international community is
largely due to her image diplomacy approach The TSP laid the foundation of NDS 1
which is elite-oriented (hiring lobbyist organi- (2020-2025) which was to take over the image
sations),” the report reads in part. building and re-engagement drive.

“The approach is not based on transform- NDS 1 has been in operation since January
ing Zimbabwe to improve ratings such as good 2021 yet no progress report on engagement
country index, country brand ranking, global and re-engagement has been published as pro-
travel and tourism, competitiveness ranking visioned for in the blueprint, according to Zim-
and global happiness index, but rather in trying codd.
to change the perception of the international
community that there is transmutation taking Government should channel resources towards public service delivery to convince local citizens.
place while nothing has changed.”

The report notes that the government failed
to improve in international engagement and
re-engagement, as proven by the worsening
country risk index rating. The baseline target
was grade CCC, which is high risk, while the
targeted grade was CC, which is medium risk,
yet Zimbabwe attained grade E, which is the
highest risk.

“On sanctions removal, no sanctions have
been removed, with the Biden administration
renewing sanctions on Zimbabwe in 2021, a
clear testimony that the government has not
made much effort with respect to the sanctions
removal process,” it said.

According to US President Joe Biden, Zim-
babwe failed significantly to initiate a re-engage-
ment process, as there is an “absence of progress
on most fundamental reforms needed to ensure
the rule of law, democratic governance and the
protection of human rights”.

On competitive ranking, the baseline target
was 114, while the 2021 target was 113. How-
ever, in all cases, Zimbabwe failed to attain the
NDS 1 competitive ranking target, emerging
127th.

As a way forward, Zimcodd said Zimbabwe
must implement political and security sector
reforms.

“Rather than focus on hiring lobbyist compa-
nies, the government should channel those re-
sources towards public service delivery, a move
that is likely to increase Zimbabwe’s happiness
index, as citizens are responsible for answering
survey questions,” the organisation said.

It said the servicing of debt with internation-
al creditors is vital in redeeming the country’s
credit-worthiness and the ability to borrow in
future.

“If the government of Zimbabwe is to im-
prove on a good country index, it must uphold
the rule of law, rejuvenate public service deliv-
ery, including social amenities, as they also con-
tribute in image building,” it said.

The turn of the millennium ushered in a par-

NewsHawks News Page 25
BANK OF ZI
Issue 77, 22 April 2022

RESERVE MBABWE

PRESS STATEMENT

SUSPENSION OF ROLINK FINANCE (PRIVATE) LIMITED FROM
OPERATING AS A BUREAU DE CHANGE

The Reserve Bank of Zimbabwe (the Bank) wishes to advise the public that it has, with
immediate effect, suspended Rolink Finance (Private) Limited from operating as a
bureau de change.
The suspension is a result of breaches of the Exchange Control (Authorised Dealers
with Limited Authority) Order, Statutory Instrument 104 of 2015 and Exchange Control
Circular Number 2 of 2021 issued to Authorised Dealers with Limited Authority (ADLAs).
The suspension of its operating licence does not relieve Rolink Finance (Private) Limited
of any outstanding obligations it incurred or had at the time of suspension of the
licence.
For the said exchange control violations, a penalty of US$120,000 or its equivalence in
Zimbabwe dollar has been levied against Rolink Finance (Private) Limited.

John P. Mangudya
Governor
20 April 2022

Page 26 International Investigative Stories NewsHawks

Issue 77, 22 April 2022

InInvteesrtniagtaiotinvaelStories

One family’s ‘golden
age’: President’s
relative controls
Turkmenistan’s
only mobile operator

The longtime dictator of Turkmenistan, Gurbanguly Berdimuhamedov, who ceded the presidency to his son earlier this month.

Turkmenistan’s only (“Golden Age”), the only mo- proved, Berdimuhamedov signed dollars into Altyn Asyr hasn’t of personality and even gained
mobile operator, Altyn bile operator in Turkmenistan, another decree, transforming the stopped. international fame for his meg-
Asyr, enjoys an undis- where telecommunications are state-owned enterprise into a alomaniacal flights of fancy: re-
puted monopoly despite closely monitored and censored. closed joint-stock company that Since Shaharliyev avoids the naming the month of January
frequent complaints He’s also married to the niece of keeps its shareholders secret. limelight, little is known about after himself and April after his
about poor service longtime dictator Gurbanguly his income, lifestyle, and per- mother, penning his own book
and exorbitant prices. Berdimuhamedov, who ceded In 2017, the government also sonal habits. But there are in- of philosophy that all Turkmen
Though its shareholders the presidency to his son Serdar expelled the company’s only dications that the Shaharliyevs students were made to study,
are not publicly named, earlier this month. competitor, Russian telecom gi- enjoy the luxuries available to and erecting a golden statue of
reporters learned that it ant MTS, making Altyn Asyr a other members of Berdimu- himself that rotated to always
is run by a member of Turkmen citizens regularly monopoly. hamedov’s family: Shaharliyev’s face the sun.
the president’s family. complain about the slow and son has shown off his expensive
overpriced telecom services pro- Then, in 2019, Shaharliyev watches on social media, and In comparison to these ven-
FOR most people in Turkmen- vided by Altyn Asyr, which oper- became the company’s gener- several restaurants and a night- tures, Altyn Asyr was relative-
istan, Shyhmyrat Shaharliyev is ates under the brand name TM al director — and because Al- club in Turkmenistan are also ly modest. The company was
an unknown figure. His name Cell. Even Berdimuhamedov has tyn Asyr was now governed by connected to the family. founded as a small national tele-
barely appears online, he eschews criticized its service and accused a board, no official decree was com operator, with a capacity of
social media, and he seems never its former managers of incompe- necessary. After he took office, Reporters were unable to just 50,000 unique numbers in
to have made any public appear- tence. the president’s public criticism reach Shyhmyrat Shaharliyev for a country of 4.7 million people.
ances. of the company and its services comment.
But a new investigation by ceased. From Modesty To Moderniza- From the beginning, Altyn
But Shaharliyev has a great- OCCRP, Turkmen.News, and tion Asyr had problems. As a state
er influence on the day-to-day Gundogar.org indicates that the The lack of transparency Altyn Asyr was founded in 2004 company, it was not highly re-
lives of ordinary Turkmens than poor service isn’t the result of a about Altyn Asyr’s ownership, by official decree of President sponsive to the market and cov-
most realize. He is the secretive lack of investment. In 2011 and the decision to secretly appoint Berdimuhamedov’s predecessor, erage was poor outside Turk-
general director of Altyn Asyr 2012, Berdimuhamedov autho- Shaharliyev to lead it, and the Saparmurat Niyazov. menistan’s capital, Ashgabat.
rized spending over $170 mil- expulsion of MTS all suggest The company struggled to keep
lion to overhaul the company’s that Turkmenistan’s telecom in- In his 15 years in charge of up with its main competitor, a
communications infrastructure. frastructure is being concentrat- Turkmenistan, Niyazov estab- private operator called Barash
ed in the hands of the first fam- lished an all-encompassing cult Communications Technologies
After the investment was ap- ily. Meanwhile, the flow of state

NewsHawks International Investigative Stories Page 27

Issue 77, 22 April 2022

Inc. Reporters identified Shaharliyev (center) in this July 2021 footage of a government meeting dedicated to communications and transport. Three sources who knew
In 2005, the owner of BCTI Shaharliyev personally confirmed that it was him.

sold the company to MTS, a Secret Director Neither Altyn Asyr nor any time when the country faced a would be around $125,000. The
Moscow-based telecom heavy- Altyn Asyr’s transformation state media outlets have ever shortage of affordable grocer- two cars pictured on the son’s
weight with operations across into a closed joint-stock compa- published Shaharliyev’s photo- ies. A subsequent investigation Instagram are a BMW and a
the region. Under its new brand, ny at Berdimuhamedov’s behest graph. Initially, reporters were found that both Hajymyrat and Toyota Land Сruiser.
it remained the most popular would prove critical in hiding the only able to find one image on- his brother Shamyrat benefitted
option in Turkmenistan. fact that a member of his family line that even hinted at a like- from privileged access to their Reporters heard from sources
controlled the company. Because ness of the secretive telecom di- country’s mineral wealth and inside Turkmenistan that Sha-
Soon after MTS entered Turk- Altyn Asyr was now governed by rector. It was a New Year’s family were involved in the export of harliyev owns several restaurants,
menistan through this acquisi- a board, the decision to appoint portrait published privately as petrochemical products for a coffee shops, and a nightclub in
tion, the Turkmen government Shyhmyrat Shaharliyev as its di- an Instagram story by Shaharli- considerable profit. the country. Turkmenistan does
began to pour money into mod- rector was not public — like the yev’s daughter and reposted pub- not publish company registra-
ernizing Altyn Asyr. Between man himself. licly by his son — but with his OCCRP and partners also tion documents, but reporters
2007 and 2012, Berdimuhame- Before taking the helm of parents’ faces covered with red found that Hajymyrat Rejepov found corroborating evidence
dov authorized 11 contracts the mobile operator, Shaharli- heart emojis to conceal their had built a luxurious mansion that Shaharliyev owns two of
to purchase SIM cards for the yev’s name appeared online identities. for his family in Gazha, an ex- these restaurants in a leaked
company, modernize its equip- only once. In October 2016, as pensive development in the cen- database of Altyn Asyr phone
ment, and even build it a brand- Turkmenistan marked the 25th Such extreme secrecy may ter of Ashgabat, and that both numbers.
new office building. In total, the anniversary of its independence, seem unnecessary and even coun- brothers owned multiple apart-
contracts were worth over $188 state media published a decree terproductive for the director of ments in Dubai. A phone number listed in the
million. listing him as one of several hun- a national telecom company that Secret Wealth database as belonging to Sha-
dred people given commemora- likely counts most Turkmens as Hajymyrat and Shamyrat Re- harliyev also serves as the official
The vast majority of that tive medals by Berdimuhamedov its clients. But Shaharliyev is no jepov are recognizable figures in number of Kopetdag Project, a
spending — over $170 million for their contributions to the ordinary CEO. Turkmenistan, widely known to brand that includes an upscale
— was authorized in just one country’s development. The de- be “yegenler” — in Turkmen, restaurant, pizzeria, beer pub,
year, between October 2011 and cree described Shaharliyev as the His wife, Yazgul Shaharliyeva, “nephews” of the president — and nightclub. Earlier versions
October 2012. A month lat- head of the material supply de- is the daughter of Berdimuhame- who have published photo- of the phonebook show that this
er, Berdimuhamedov abruptly partment of Turkmentelecom, a dov’s sister Durdynabat and her graphs of their jet-setting life- number has belonged to Sha-
transformed Altyn Asyr from a state company responsible for all husband, Annanazar Rejepov. style on social media. harliyev since at least 2015.
branch of a state enterprise into landline phone, radio communi-
a closed joint-stock company, cation, and most home internet The Rejepov family is known By contrast, Shaharliyev’s se- OCCRP and partners called
describing the move as a step to- access. for its broad business interests crecy means that he is neither the main phone number listed
wards integrating the company But sometime between the in Turkmenistan and beyond. widely recognized as the director on Kopetdag’s Instagram profile
into the free market. 2016 award ceremony and the On the same day Shaharliyev of Altyn Asyr, nor as a member and asked whether it was Shy-
end of 2019, Shaharliyev be- received his commemorative of the first family. But there are hmyrat Shaharliyev’s restaurant.
But an analysis by BMI Re- came director of Altyn Asyr. A medal, Annanazar received one signs that he too enjoys the lux- The woman who answered the
search, a business research firm, source in the company told OC- as well. He was listed in the urious lifestyle that the Rejepovs phone said it was.
suggests that the company likely CRP and partners that he was state decree as “coordinator of have made famous.
remained largely in state hands. appointed in 2019. Nusay Yollary,” one of several Shaharliyev also likely has an
Since its shareholders are not Unlike his predecessor, Sha- local companies constructing a Shaharliyev’s son has pub- ownership stake in Koshi Shash-
disclosed, the size of the govern- harliyev has never represented new expressway between Ashga- lished photos on his private Ins- lyk, a popular restaurant known
ment’s stake is unknown, as is Altyn Asyr publicly, leaving the bat and the eastern city of Turk- tagram account of himself wear- for kebab delivery. One of the
the size of any share acquired by job to his deputy, Vitaliy Pa- menabat. The cost of the project ing expensive watches, driving numbers listed online for the
anyone else. tushenko, who represents the is $2.3 billion. elite cars, and riding on horse- restaurant belongs to Shaharli-
company at conferences and back. OCCRP and partners yev, according to the leaked
While the Turkmen govern- gives comments to state media OCCRP, Turkmen.News, and were able to match his watches phonebook. Another two of the
ment was investing in Altyn on its behalf. Gundogar.org have previously with models produced by lux- restaurant’s numbers belong to
Asyr, it was also going after its reported that Berdimuhamedov ury brands Rolex, Hublot, and his brother Shyhberdi Shaharli-
more successful competitor, granted Annanazar’s son Hajy- Franck Muller. The estimated yev.
MTS. myrat Rejepov the right to im- combined value of these models
port food to Turkmenistan at a — Organised Crime and
By 2010, that company’s cli- Corruption Reporting Project.
ent base had grown to 2.4 mil-
lion — over half the country’s
population. But that same year,
Turkmenistan’s Ministry of
Communications cut its users
off from phone lines and the in-
ternet, claiming that its five-year
contract had expired.

The company initiated legal
proceedings against the Turk-
men government and managed
to reach an agreement with Ber-
dimuhamedov that allowed it to
return to the country in 2012,
with its license extended until
July 2018.

But MTS didn’t make it that
long. In September 2017, almost
a year before the license was set
to expire, the Turkmen govern-
ment broke the agreement with-
out explanation and forced the
company to shut down its oper-
ations in the country. That made
Altyn Asyr the only mobile oper-
ator remaining in Turkmenistan.

Meanwhile, the Turkmen
government has continued to
invest in Altyn Asyr. In Novem-
ber 2021, pro-government me-
dia reported that Turkmenistan
had allowed its national com-
munications agency to purchase
equipment, software, licenses,
and technical support for Altyn
Asyr from international tele-
communications companies like
Huawei and Nokia. The report
did not state how much money
would be spent on the invest-
ment.

Page 28 Editorial & Opinion NewsHawks

CARTOON Issue 77, 22 April 2022

Terrible, painful
sense of déjà vu

THOSE who survived Zimbabwe’s catastrophic hyperinflation of ZEC: Where is the server?
2008 will tell you that although the surging tide in runaway pric-
es somewhat resembles a prolonged slow-motion accident, there WHILE the Zimbabwe Electoral Com- sure, I don’t think that will be in the inter- the ward collection centre, from the ward
comes a moment of stupefying impact, which signals to all and mission (Zec) has been vacillating and ly- est of the public. The Zimbabwe Electoral to the constituency from the constituency
sundry that the game is truly over from that point onwards. ing over the computer server which is at Commission has many partners, including to the command centre of the province. As
the centre of the 2018 presidential elec- government and civil society, so what will a commission we do not transmit results
As human beings, we experience life’s misfortunes in differing tion rigging storm, The NewsHawks has be the relevance of it in that aspect? I do electronically, so the so-called server does
ways. This is because, although the basket of troubles that assail established that the European Union (EU) not see the relevance of that in the public not exist because we wait for the physical
humankind seems fairly predictable in general terms, people’s provided funding for the purchase of the domain. All we need to know is whether copy; people actually get into trucks and
granular lived experiences are rarely similar. hardware. Zec is conducting its mandate according to then drive to the next collection centre, this
the law and whether Zec is in control of is coming from the commission.”
And so, true to this immutable law of life, the hyperinflation Zec has been flip-flopping and lying its infrastructure? Yes we are,” Mangwana But high-level government sources told
of 2008 had the uncanny ability of serving everyone a special dish about the server at the centre of the 2018 said. The NewsHawks the server, which was
which appeared rather unique and specific, as if tailor-made to presidential election rigging scandal. “As Zec, we have ICT infrastructure bought by the UNDP using EU funds, was
inflict a special dose of suffering on each particular person. which we manage and which we hold, used to manipulate the 2018 elections after
Before the elections and during the roll compared to the speculation that there is the military seized control of it through Af-
For an embattled worker back in the day, the moment of truth out of the Biometric Voter Registration someone who ricom internet service
finally arrived upon the realisation that an entire monthly salary process, Zec, through its former commis- is managing in- provider.
was not enough to pay for a single commuter omnibus fare to the sioner Qhubani Moyo, confirmed the serv- frastructure for Hawk Eye While Zec is now
workplace. All along, that unfortunate worker — through sheer er was there. the commission ducking and diving
guile and inventiveness — would have somehow managed to from somewhere over the server, Moyo
continue reporting for duty, even as it became increasingly clear After the disputed polls and under oath else. That is not unequivocally con-
that the end was nigh. during the court challenge of Mnangagwa’s correct,” Mang- Dumisani firmed its existence
wafer-thin margin victory by his fierce ri-
Another employee, say in a different town, would have finally val main opposition Citizens Coalition wana said. Muleya before the elections.
arrived at the moment of truth upon realising that they could not for Change leader Nelson Chamisa, then “Did you The UNDP yes-
even withdraw their salary from the bank, owing to a shortage of MDC Alliance candidate, the chairperson know that in this terday also confirmed
physical cash. There are no words to explain the feeling of utter of the electoral body Priscilla Chigumba country internet purchasing servers
hopelessness which engulfs a breadwinner who fails to withdraw said there was no server. resources, IP addresses which are actually for Zec under an electoral capacitation pro-
money from their bank account while prices in the shops are go- said to be used to calculate and check our gramme. Diplomats told The NewsHawks
ing haywire by increasing five times a day. However, Mnangagwa in his court pa- data, rarely come in the name of the end the EU was completely shut out and de-
pers during the same election petition user because for you to have it you need nied access to the server once the equip-
In April 2022, Zimbabwe has not yet scaled those heights of hearing said it was there, but was hacked. to apply for it? The commission does not ment landed in Harare despite its role in
hyperinflation, but the ongoing turmoil is evoking much dread The hacking story was never verified. have that. What does the commission do? the procurement process.
and trepidation. American inflation expert Steve Hanke says It is allocated resources from the internet Broadly, the UNDP, through EU fund-
Zimbabwe has overtaken Argentina as the country with the The NewsHawks has established the serv- service providers that we have, the commis- ing and other partners, had embarked on a
world’s fastest galloping prices, measured on year-on-year basis. er is there and was bought by EU through sion has ISPs and these ISPs provide public Zec capacity building project which has a
the United Nations Development Pro- IPs which the commission can then resolve long-term vision of developing the institu-
Nobody should be surprised. The government is just not show- gramme (UNDP). Last week Zec spokes- to specific domains which it uses. tional, organisational and electoral capacity
ing leadership on economic management. person further muddied the waters: “Zec “We want to tell the public that we don’t of the elections body.
has no server hosted by any external organ- have any infrastructure as far as elections After all has been said and done, Zec
Finance minister Mthuli Ncube still claims — with a straight isation, including Africom.” are concerned and the server which trans- officials, particularly its boss Chigumba,
face — that the economy is in a stronger position. The stark re- mits results, that’s fiction. We transmit our must account by answering one question:
alities on the ground are exposing this assertion for what it is: Yesterday, Mangwana refused to com- results manually from the polling station to Where is server?
hollow propaganda. ment specifically on the server bought for
Zec by the UNDP, but went to laboriously
When the new ZW$100 bank note was introduced into circu- pontificate about the issue using sophistry
lation recently, there were gasps of disbelief when people noticed — generating more heat than light.
that the bill is actually dated 2020. Some people laughed at this
rank absurdity, but the joke is really on them, as prices continue “I can’t comment on that. I am not so
spiralling out of control.

Alarmingly, as the clueless government gropes in the dark for
the answers, some officials are pushing for a ban on the use of the
US dollar in the economy.

It is a ridiculous proposition. If you ban the US dollar, do you
have the capacity to defend the Zimdollar against the greenback?
Even your gold and 40-odd minerals cannot shore up the local
currency because — by the government’s own admission — bul-
lion worth US$100 milliin is being smuggled out of the country
every month.

We have been down this path before.
President Emmerson Mnangagwa told a Zanu PF politburo
meeting yesterday that the government is doing everything possi-
ble to stabilise the economy.
That is incredible. Most people would argue that the govern-
ment is, in fact, doing nothing tangible to stem the rapid slide.
Mnangagwa did not stop there; he notably attributed the eco-
nomic mayhem to “imported inflation”.
These days, this term is often used by incompetent officials as
a convenient euphemism for the US dollar. They believe in the
magic bullet: ban the use of the US dollar and the crisis evapo-
rates instantly. The authorities have previously masterminded au-
dacious heists on hapless citizens, raiding people’s forex accounts
with impunity.
In the next few weeks, citizens can expect more misery from
clumsy experiments as the echoes of 2008 reverberate across a
troubled economy.
There is a painful sense of déjà vu.

Reaffirming the fundamental impor- The NewsHawks is published on different EDITORIAL STAFF: Marketing Officer: Voluntary Media
tance of freedom of expression and me- content platforms by the NewsHawks Digital Managing Editor: Dumisani Muleya Charmaine Phiri Council of Zimbabwe
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stitution; our mission is to hold power Beverly Court, 6th floor News Editor: Owen Gagare
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NewsHawks News Page 29
BANK OF ZI
Issue 77, 22 April 2022

RESERVE MBABWE

PRESS STATEMENT

CESSATION OF INNBUCKS OPERATING AS A MONEY TRANSFER
SERVICE PROVIDER

The Reserve Bank of Zimbabwe (the Bank) advises the public that it has ordered
Simbisa Brands (Private) Ltd to cease operating the money transfer service branded or
styled InnBucks, with immediate effect.
In November 2021, the Bank directed InnBucks to apply for and obtain necessary
approvals in order to continue offering the service. To date, the company has not yet
regularised the service as directed, hence the inevitable regulatory intervention by the
Bank.
The cessation of the service means that customers shall no longer be able to deposit
funds into the InnBucks account or transfer the funds to third parties. However,
customers may redeem their balances for cash or goods at Simbisa Brands (Private) Ltd
outlets within a period of 30 days from date of this Press Statement.

John P. Mangudya
Governor
20 April 2022

Companies & Markets NewsHawks

Issue 76, 15 April 2022
BusinessPage26
MATTERSNewsHawks

MARKETS CURRENCIES LAST CHANGE %CHANGE COMMODITIES LAST CHANGE %CHANGE
USD/JPY
GBP/USD 109.29 +0.38 +0.35 *OIL 63.47 -1.54 -2.37
USD/CAD
USD/CHF 1.38 -0.014 -0.997 *GOLD 1,769.5 +1.2 +0.068
AUD/USD
1.229 +0.001 +0.07 *SILVER 25.94 -0.145 -0.56

0.913 +0.005 +0.53 *PLATINUM 1,201.6 +4 +0.33

0.771 -0.006 -0.76 *COPPER 4.458 -0.029 -0.65

IMF forecasts
global economic
slowdown to 4%

BERNARD MPOFU banks face between containing price pressures and World Bank president David Malpass
safeguarding growth. Interest rates are expected to
THE International Monetary Fund (IMF) has rise as central banks tighten policy, exerting pres- Russia’s invasion of Ukraine is looming across the ing. And so that means that it’s really an unfair
projected a slowdown in global economic growth sure on emerging market and developing econo- globe. Malpass warned that rises in food prices kind of crisis. It hits the poorest hardest. That was
to 3.6% from an initial estimate of 6.1%, blight- mies. Moreover, many countries have limited fis- would push hundreds of millions people into pov- true of Covid, Malpass was quoted by the BBC
ing prospects of strong recovery by low-income cal policy space to cushion the impact of the war erty and lower nutrition, if the crisis continues. this week.
countries such as Zimbabwe. on their economies.
The World Bank calculates there could be a Early this month, the Confederation of Zim-
Experts say Zimbabwe, which is currently bat- “The invasion has contributed to economic “huge” 37% increase in food prices, which is babwe Industries said the country should this
tling rising inflation, a weakening currency, power fragmentation as a significant number of countries “magnified for the poor”, who will “eat less and month brace for full-impact volatilities from the
outages and high unemployment, will also feel the sever commercial ties with Russia and risks derail- have less money for anything else such as school- Russia-Ukraine war.
pinch. ing the post-pandemic recovery. It also threatens
the rules-based frameworks that have facilitated
As the world was beginning to cope with greater global economic integration and helped
Covid-19 following the rolling out of vaccina- lift millions out of poverty.”
tion programmes across the world, attention was
turned to Russia’s invasion of Ukraine on 24 Feb- With a few exceptions, employment and out-
ruary. put, according to the IMF, will typically remain
below pre-pandemic trends through 2026.
In most parts of the world, especially grain and
fuel importers, the impact of the Ukraine war has “Scarring effects are expected to be much larg-
been felt through the increases in prices. In March, er in emerging market and developing economies
Brent Crude Oil peaked at US$139, but most of than in advanced economies — reflecting more
the gains were lost and it settled above US$100, limited policy support and generally slower vacci-
higher than the pre-war price which hovered in nation — with output expected to remain below
the US$90s. the pre-pandemic trend throughout the forecast
horizon,” the report further reads.
The IMF, in its latest report titled World Eco-
nomic Outlook: War Sets Back the Global Recovery, David Malpass, World Bank president, this
said the war in Ukraine has triggered a costly hu- week said a “human catastrophe” triggered by
manitarian crisis that demands a peaceful resolu-
tion, adding that economic damage from the con- The impact of the Russia-Ukraine war has negatively affected fuel importers.
flict will contribute to a significant slowdown in
global growth in 2022.

The authorities in Harare have projected 5.5%
growth of the economy for 2022 from 7.8% regis-
tered last year mainly driven by strong agricultural
output and mining.

However, as the war rages on, Zimbabwe, which
heavily relies on wheat from Russia, has not been
spared. Already, the World Food Programme has
warned of an impending food crisis in the country
after global and regional food prices spiked up-
wards following Russia’s invasion of Ukraine.

According to the United Nations High Com-
missioner for Refugees (UNHCR), by the end of
March there were over 900 civilian deaths, over
2 600 civilian casualties and over four million ref-
ugees had fled Ukraine.

This conflict has destabilised the region and
raised tensions with Russia’s neighbours, especial-
ly the North Atlantic Treaty Organisation (Nato)
members, namely Latvia, Estonia, Lithuania, and
Poland.

“A severe double-digit drop in GDP for
Ukraine and a large contraction in Russia are
more than likely, along with worldwide spillovers
through commodity markets, trade, and financial
channels. Even as the war reduces growth, it will
add to inflation,” the IMF report reads.

“Fuel and food prices have increased rapidly,
with vulnerable populations — particularly in
low-income countries — most affected. Elevat-
ed inflation will complicate the trade-offs central

NewsHawks Companies & Markets Page 31

Issue 77, 22 April 2022

ZITF: 514 exhibitors book space

DUMISANI NYONI Preparations are underway for this year’s international trade showcase, which officials claim is oversubscribed.

A TOTAL of 514 exhibitors have so far
booked their space ahead of the Zim-
babwe International Trade Fair (ZITF)
scheduled for next week in Bulawayo,
with Britain making a comeback after a
long period of non-participation.

The event will be held from 26 to 30
April under the theme: Rethink, Reimag-
ine, and Reinvent Value Chains for Eco-
nomic Development.

Kenyan President Uhuru Kenyatta
will be the guest of honour at the official
opening ceremony scheduled for Friday
the 29th of April.

ZITF chief executive officer Nicholas
Ndebele said the preparations for the
trade showcase were firmly on course.

“We are excited by the pace of prepa-
rations. Currently, as I speak, the Zim-
babwe International Exhibition Centre
is a construction site with various ex-
hibitors within the halls and pavilions
making sure that their exhibition spaces
are adequately prepared for next week,”
he said.

“In terms of current bookings, we are
standing at 514 exhibitors who have ex-
pressed interest in participating and they
have taken about 45 203 square metres
of the exhibition space, which represents
93% of the space that we have made
available for sale.”

Last year, 342 direct exhibitors and
nine countries took part in ZITF.

Ndebele said the international trade
showcase was oversubscribed, with or-
ganisers erecting a marquee that will
accommodate close to 60 exhibitors,
which will take up about 540 square
metres. He said 71 exhibitors were new
exhibitors coming from various sectors,
including construction, security, med-
ical products, financial services, energy
and advocacy sectors.

“So in terms of foreign participa-
tion, we are currently at 14 countries.
These are Malawi, Japan, Mozambique,
Namibia, Indonesia, Zambia, Angola,
South Africa, Belarus, Ethiopia, Kenya,
Britain, Tanzania and Botswana,” he
said.

“We expect the number of foreign
participants to increase as we are still
concluding some confirmation with
some that have expressed interest as re-
cently as yesterday (Tuesday). So that
number should be changing,” Ndebele
said.

He said Belarus, which has taken
interest in the country’s mining, trans-
port and energy sectors, would bring
eight companies to showcase machinery
and equipment for agriculture, mining,
transportation and engineering.

Ndebele said Britain will be repre-
sented by its embassy in Zimbabwe.

Britain, together with other Western
countries, imposed sanctions on Zimba-
bwe in 2002 in protest at human rights
abuses and violations of democracy un-
der Robert Mugabe administration.

One of the key highlights of the expo
this year will be the “Connect Africa
Symposium” scheduled for 28 April,
where President Emmerson Mnangag-
wa will deliver the keynote address.

The ZITF International Business
Conference will be held on 27 April and
Vice-President Constantino Chiwenga
will give the keynote address and offi-
cially open the gathering.

Another key highlight will be the
ZITF Diplomats Forum scheduled for
28 April, which is a platform for busi-
ness and diplomatic exchanges.

This year’s ZITF will also have plat-
forms targeted at the youth to discuss
topics such as education and innovation.

Page 32 Companies & Markets NewsHawks

Issue 77, 22 April 2022

‘Diversify portfolios to mitigate risk’

RONALD MUCHENJE More than 50% of bank deposits are denominated in US dollars. ever, the sector is renowned for its unparalleled
ability to store value,” the firm said.
MARKET watchers say investors in Zimbabwe market, in particular on non-core holdings,” the 9%, depending on portfolio composition (retail,
should develop well-diversified portfolios that can firm said. residential, office, leisure, hotel and tourism). Property investments have defended balance
mitigate against sector or asset class-specific risks sheets of companies and pension funds during the
for them to realise profits in the event of short- The property class, according to FBC Secu- “Demand is seen growing in the SME and volatile cycles of hyperinflation and devaluation
term swings in sentiments in the market. rities, has been undergoing tumultuous phases retail property sector types — in line with the of the local currency.
characterised by high voids, preference for small general economic trend in the country, wherein
Investors have been targeting various asset class- size “tuckshops” and high concentration. a large portion of the population is self-employed Statutory Instrument 240 of 2019 approved
es as their core portfolios, but in some instances, or engaged in some entrepreneurial work. How- the extension of Collective Investment Schemes
uncertain economic turbulence has hampered the Yields have been averaging between 6% and to new asset classes such as commodities, private
performance of such asset classes. equity and venture capital.

An analysis of asset classes available on the In addition, government set out the guide-
Zimbabwean market by FBC Securities shows lines and tax incentives for collective investment
that economic headwinds have been a factor, low- schemes that qualify as reits in the 2022 National
ering their performance. Budget.

For the money market, the local currency tradi- “On cash accumulation, owing to perennial
tional fixed income asset classes have been devas- local currency devaluation, there has been an in-
tated by the recent spell of inflationary pressures, clination to store US dollar cash as a means to pre-
which has translated to value losses and negative serve value, especially from retail investors. Whilst
real returns. investors may present a case for storing cash, the
risks relating to this, call to question the accept-
In a 2022 First-Quarter Report, FBC Securities ability of this value preservation strategy. Unlike
said despite this development, fund managers, in- the above-mentioned asset classes, this approach
surance companies and pension funds continued does not offer any return or growth prospects to
to invest on the local fixed income market for li- the investor. There is also a significant risk of theft
quidity management, prescribed asset compliance or loss associated with this and no regulation gov-
and not necessarily for positive real returns. The erning this strategy,” FBC Securities said.
return of multi-currency regime has had a mate-
rial impact on the composition of bank deposits On alternative investments the private equity
spread and, currently, more than 50% of bank de- (PE) and venture capital (VC) investment uni-
posits are denominated in US dollars. verse in Zimbabwe has evolved over the last two
decades to establish itself as an essential vehicle for
The research firm said to evade such headwinds capital markets.
it would be prudent to develop portfolios that are
future oriented. FBC Securities noted that primary and second-
ary PE opportunities, including VC and buyout
“We recommend that the investor develop a transactions, special situations and structured
well-diversified portfolio that should mitigate the credit, were all finding an ever-increasing audi-
entire portfolio from sector or asset class-specif- ence. The emergence of these alternative funding
ic risks. The portfolio should be future oriented, arrangements was partly necessitated by the fund-
long term and selected instruments should be ing gap left by traditional banking credit models.
poised for a positive return through both capital
gains and dividends, thus meeting the investor’s “The often Greenfield nature of these initia-
objective. It will be prudent to consider about tives did not get any mileage from the plain vanil-
40% of the portfolio for active trading; this will la credit infrastructure in existence. Opportuni-
allow the investor to realise some profits in the ties in these investment options cut across various
event of short-term swings in sentiments in the economic sectors like agriculture, manufacturing,
renewable energy and ICT,” FBC Securities said.

ZIMBABWE Stock Exchange-listed financial Interest income propels GetBucks profit
services concern GetBucks has reported after-tax
profit of ZW$192 million for the full year to 21 cy allocations as the auction system could not assets counter the eroding effect of inflation on would strengthen the balance sheet and reduce
December 2021 from a loss of nearly ZW$72m fully meet the market foreign currency demand. monetary assets. the cost of funding.
recorded in the prior comparative year, buoyed Despite these challenges, the microfinance bank
by growth in interest income. showed resilience,” the company said. The microfinance bank’s net equity position “The microfinance bank is carrying out a
was ZW$474 million translating to US$4.4 mil- rights issue as part of its capital raise initiative.
Interest income for the year under review rose The microfinance bank grew its total assets by lion at the official exchange rate as at 31 Decem- The capital raised will help the microfinance
to ZW$474 million from ZW$132 million. 44%, from ZW$70 million to ZW$1 billion, as ber 2021. To ensure compliance with the reg- bank address the regulatory minimum capital
a result of a diversified asset portfolio made up ulatory minimum capital requirement extended requirement of US$5 million equivalent. The
“This (growth in profit) was largely as a re- of property carried at fair value and monetary deadline of 31 December 2022, the microfi- raised capital will reduce the microfinance bank’s
sult of a reduction in the net monetary loss from assets in the form of loans. This portfolio mix nance bank is working on a recapitalisation plan. cost of funding, as well as capacitating the mi-
ZW$48 million in 2020 to close at net mon- is in line with the value preservation strategy of crofinance bank’s expansion drive,” the company
etary profit of ZW$25 million in 2021, large- the microfinance bank which saw the property Going forward, the company said, proceeds said. — STAFF WRITER.
ly due to the microfinance bank’s assets being raised from the ongoing capital-raising initiative
predominantly monetary. Operating expenses
increased by 55% during the year under review
from ZW$258 million to ZW$399 million,”
the company said.

“The increase was lower than the average in-
flation for the year under review. Borrowings
increased from ZW$161 million to ZW$284
million as the microfinance bank managed to
mobilise new lines of credit. However, customer
deposits shrunk by 58% to close at ZW$79.2
million from ZW$187 million due to the gen-
eral market’s reluctance to hold on to monetary
assets considering the inflationary pressure and
fear of real monetary loss due to currency de-
preciation. The loan book grew from ZW$132
million in 2020 to close at ZW$179 million in
2021.”

The operating environment, the company
said, continued to be characterised by significant
challenges in the year 2021, with the Covid-19
pandemic affecting businesses both globally and
locally.

“Whilst the annual inflation rate closed at
60.74% in December 2021 from 348.6% in
December 2020, the operating environment
continued to experience significant increases in
prices of goods and services. The Foreign Ex-
change Auction Trading System introduced by
the Reserve Bank of Zimbabwe in June 2020
continued to operate in 2021 addressing the
foreign currency challenges but the market con-
tinued to suffer from inadequate foreign curren-

NewsHawks Companies & Markets Page 33

Issue 77, 22 April 2022

BERNARD MPOFU Inflation, exchange rate volatility
disrupt minister’s dinner dance
EXCHANGE rate volatility and resurgent infla-
tion are spoiling the party for Zimbabwe’s Finance The Zimbabwe dollar has been under pressure, depreciating at an alarming rate. budget deficit of -2.1% of GDP, above the antic-
minister Mthuli Ncube, who has not missed the ipated -1.3%.”
slightest opportunity to trumpet his economic growth of 7.8%, which is above the 3.4% average continued to show resilience as evidenced by
gains since he was appointed in 2018. growth for sub-Saharan Africa,” he said. strong current account performance in 2021. Pre- He said capacity utilisation for 2021 surged to
liminary estimates point to a current account sur- 66% from 47% recorded in 2020.
Ncube says the economy and economic fun- “This was as a result of good 2020/21 agriculture plus position of US$926.8 million in 2021, repre-
damentals have stabilised under his stewardship season, higher international mineral commodity senting a 36.6% increase from US$678.3 million Drinks, tobacco and beverages subsector re-
— he often brandishes his “budget surplus” and prices, a stable macro-economic environment, recorded in 2020. corded the highest capacity utilisation value of
a series of purported economic reforms to under- improved access to foreign currency through the 79% in 2021. Other sub-sectors such as foodstuffs
line that — and is now growing strongly with a foreign currency auction system, increased indus- “Stock of domestic debt as at end December and chemical and petroleum products recorded
Gross Domestic Product (GDP) of 7.8% growth try capacity utilisation and better management of 2021 amounted to ZW$32.6 billion, an increase more than 20% increase from 2020.
in 2021, which is above the 3.4% average growth Covid-19 pandemic from ZW$16.7 billion as at end December 2020
for sub-Saharan Africa. and a decrease in terms of share of GDP, 1.1% in This was largely driven by fairly stable mac-
“We also witnessed strong performance in the 2021 from 1.4% in 2020 ro-economic environment, localisation of value
He also always boasts about enhancing revenue external sector driven by exports and remittances. chains (import substitution), stable inflation, con-
collection, containing expenditure and ensuring The country exported goods worth US$4.3 billion “In terms of public finances, revenue collec- tinued foreign currency auction system and nota-
fiscal balance. during the first three quarters of 2021 compared tions amounted to ZW$481 billion against ex- ble investments across manufacturing subsectors,
to US$2.9 billion exported in 2020 same period. penditures of ZW$545 billion and the resulting he said. But inflation and exchange rate volatility
“However, towards the end of the year traces of budget deficit of ZW$64.1 billion, resulting in a are destabilising Ncube’s progress.
volatility in the exchange rate and inflation have “The country’s external sector fundamentals
been visible. Nonetheless, authorities were aware “Several policy measures have also been adopt-
of the causes of the volatility and have made the ed to stabilise the currency and lower inflation, in-
adjustments promptly,” Ncube said in an eco- cluding, among other things, fiscal consolidation
nomic outlook presentation at a symposium last and restrained reserve money growth,” he said.
week.
“Government plans to issue a US dollar-de-
The Zimbabwe dollar has been under pressure nominated bond on the local stock exchange
and depreciating at an alarming rate to an average (Victoria Falls which should help develop the yield
of US$1:ZW$300 on the parallel market, while curve). Government has commenced payments
the official exchange rate is US$1:ZW$155. under the Global Compensation Deed, while the
interim target for making half of the US$3.5 bil-
Zimbabwe’s annual consumer price inflation lion total has been extended to July 2022,” he said.
climbed to 72.7% in March, from 66.1% in the
prior month, reaching its highest point since last “The Financial Action Task Force removed
June. Main upward pressure came from transpor- Zimbabwe from the list of countries that are con-
tation, at 84.2% versus 66.6% in February, and sidered to be insufficiently compliant in imple-
food (75.1% versus 69.3%), as rising fuel and menting Anti-Money Laundering and Counter
bread prices triggered a wave of price hikes of basic Financing of Terrorism Standards on 4 March,
commodities across the economy. 2022, following the successful implementation of
the FATF Action Plan.”
Inflation has been gradually rising since Sep-
tember last year, with monetary authorities at- Ncube also says he has introduced economic
tributing this to the parallel exchange rate’s pass- reforms: Re-introduction of local currency, in-
through effect on domestic inflation witnessed troduction of the Dutch Forex Auction, removal
toward the end of last year. On a monthly basis, of fuel and electricity subsidies, operationalising
consumer prices advanced 6.6%, following a 7% Zimbabwe Investment and Development Agen-
rise in the previous month. cy, implementation of Special Economic Zones,
spending within budget, curbing speculative bor-
The Reserve Bank of Zimbabwe’s Monetary rowing, tightening reserve money at 5% for the
Policy Committee met on 1 April to consider quarter ending June 2022 and liberalising the for-
developments on the domestic and international eign exchange market.
macro-economic environment fronts as well as the
impact of global geopolitical factors on the econ-
omy. But Ncube is always optimistic, boasting
about what he views to be progress.

“Economic performance in 2021 witnessed
a great improvement, with GDP registering a

ZIMBABWE’s biggest piping products mak- Proplastics top counter on Chengetedzai
er, Proplastics Limited, has emerged as the top
counter on the Chengetedzai Securities Depos- Dematerialisation is the process of converting “The Zimbabwe Stock Exchange (ZSE) eq- in March 2022, an increase of 36.84% from the
itory dematerialisation statistics, outperforming physical share certificates into electronic balanc- uities market capitalisation increased by 5.46% previous month, which has resulted in 1 824 ac-
the Old Mutual ZSE Top 10 exchange-traded es, and only dematerialised shares can be traded. for the month of March 2022, closing at ZW$1 counts being opened this year. As a result, the
fund (ETF) which occupied top position since 964 trillion. The total turnover for trades on cumulative number of accounts opened on the
inception. Dealing in demat format is beneficial to in- the Zimbabwe Stock Exchange settling through CDC CSD as of 31 March 2022 was 39 778.
vestors, brokers and companies alike as it reduc- Chengetedzai Depository Company Limited
The Old Mutual Zimbabwe ZSE Top 10 es the investors’ risk of holding shares in phys- CSD (CDC CSD) was ZW$5 832 billion for "Local investors accounted for 94.79%%
ETF was the first ETF to list on the Zimbabwe ical format while reducing the risk of delayed the month under review. In terms of alccount and foreign investors accounted for 5.21% of
Stock Exchange (ZSE) early last year, coming in settlement, and enhances profit through the opening, CDC CSD opened 725 new accounts all accounts opened on the CDC CSD as of 31
with an expense ratio of 0.675%. increased participation of brokers. March 2022,” CDC said. — STAFF WRITER.

Since its launch, the Old Mutual ETF led the
pack on the index, scoring 100% until January
2022.

A Chengetedzai Depository Company March
2022 trading update shows that Proplastics has
been leading the index since February 2022.

During the period, Proplastics topped the top
25 index at 98.08% followed by Meikles Lim-
ited at 897.94 and the Old Mutual ZSE top 10
ETF.

This comes as securities registered on the
Chengetedzai depository platform now account
for 40% of the total dematerialised shares hit-
ting a total of ZW$784 billion as at the end of
March 2022.

This follows a 37% increase in the number of
new accounts registered on the platform during
the month, which saw a total of 1 824 new ac-
counts being opened this year.

During the period, a total of 11 597 deposits
were processed, bringing the cumulative num-
ber of deposits since going live to 85 325.

“CDC CSD is embarking on demat cam-
paign to increase the demat ratio in 2022 for
individual and institutional investors that still
hold shares in physical form. The average de-
materialisation penetration ratio (demat ra-
tio) across all counters was at 54.46% as at 31
March 2022.The cumulative number of trades
processed in 2022 closed at 26185,” CDC said.

Page 34 Stock Taking NewsHawks

Issue 77, 22 April 2022

Price Sheet A MEMBER OF FINSEC & THE ZIMBABWE STOCK EXCHANGE

Friday, 22 April 2022

Company Sector Bloomberg Previous Last VWAP (cents) Total Total Price Price YTD Market
Traded Traded Change Change (%) Cap
Ticker Price (cents) Traded Volume Value ($) (cents) ($m)
(%)
Price - -
12,500 140,845
AFDIS Consumer Goods AFDIS: ZH 34504.00 - 34504.00 - - 176.03 41,230.39
African Sun Consumer Services ASUN: ZH 1102.92 1250.00 1126.76 100 2,450 23.84 2.16 75.44 16,044.29
ART ARTD: ZH 2405.00 2450.00 2450.00 111,000 456,540 45.00 1.87 134.45 10,705.95
Ariston Industrials 421.06 405.25 411.30 116,200 20,630,630 -9.76 -2.32 10.50
Axia Consumer Services ARISTON: ZH 16259.60 18000.00 17754.41 76,128,000 1494.81 9.19 490.83 6,693.48
BAT AXIA: ZH 366000.00 366000.00 366000.00 20,800 14.34 98,031.03
CAFCA Consumer Goods BAT: ZH 26000.00 26000.00 - - - - 52.94 75,518.67
CBZ Consumer Goods 12968.61 - 14022.44 2,187,500 - - 86.55
CFI CAFCA: ZH 18600.00 14500.00 20000.00 15,600 1053.83 8.13 113.74 2,271.13
Dairibord Industrials CBZ: ZH 4692.88 20000.00 4954.55 200 40,000 1400.00 7.53 41.56 73,289.89
Delta Banking CFI:ZH 35990.17 4950.00 37671.27 163,500 261.67 5.58 131.78 21,208.18
Ecocash 12908.69 38410.00 13118.02 3,300 84,948,720 1681.10 4.67 222.68 17,737.33
Econet Industrials DZL: ZH 22851.09 13500.00 23736.91 225,500 1,823,405 209.33 1.62 179.26 491,299.52
Edgars Consumer Goods DLTA: ZH 600.00 25500.00 600.48 75,791,970 885.82 3.88 38.04 339,832.44
FBC Consumer Goods EHZL: ZH 6000.00 5914.29 13,900 226,980 0.48 0.08 74.70 614,922.89
Fidelity ECO: ZH 1720.00 650.00 1720.00 319,300 -85.71 -1.43 8.96
First Capital Technology 669.90 5900.00 745.35 41,400 - - 115.79 3,628.39
FML Telecommunications EDGR: ZH 2450.00 2450.00 37,800 - 75.45 11.26 22.50 39,741.07
FMP Consumer Services FBC: ZH 1105.88 - 1000.00 700 - - 28.21
GBH FIDL: ZH 197.84 755.00 200.00 - 210,188 -105.88 -9.57 -12.85 1,873.48
Getbucks Banking FCA: ZH 793.67 2450.00 900.00 2,450 2.16 1.09 50.00 16,098.18
Hippo Financial Services 40000.00 1000.00 39975.00 28,200 106.33 13.40 42.77 16,908.50
Innscor FMHL: ZH 43270.77 200.00 50042.75 100 30,000 -25.00 -0.06 208.15 12,381.57
Lafarge Banking FMP: ZH 16200.00 900.00 16200.00 64,400 6771.98 15.65 102.50
Mash Financial Services GBH: ZH 397.52 40000.00 424.17 3,000 - - 30.73 1,073.18
Masimba 7000.00 50325.00 7000.00 32,200 900 26.65 6.70 27.27 10,468.07
Medtech Real Estate GBFS: ZH 1999.14 2000.00 7,995,000 - - -42.86 77,159.97
Medtech Class B Industrials HIPO: ZH 3400.00 - 3400.00 100 15,363,130 0.86 0.04 36.00 285,181.85
Meikles 21094.22 470.00 22413.39 20,000 - - 79.16 12,960.00
Nampak Financial Services INN: ZH 2097.50 7000.00 2480.00 30,700 - 1319.17 6.25 122.28
NatFoods Consumer Goods LACZ: ZH 205900.00 2000.00 206000.00 10,180 382.50 18.24 49.86 7,885.63
NTS MASH: ZH 1000.00 1200.00 - 35,000 100.00 0.05 90.48 16,915.76
NMBZ Industrials MSHL: ZH 2079.64 - 2092.94 2,400 200.00 20.00 159.89
OK Zim Industrials MMDZ: ZH 5899.47 22505.00 5894.28 8,000 13.30 0.64 114.76 240.00
Proplastics Real Estate MMDZB: ZH 5100.59 2480.00 5882.11 500 - -5.19 -0.09 102.84 45.63
RTG Industrials MEIK: ZH 735.46 206000.00 744.00 400 781.52 15.32 -4.62
RioZim Financial Services NPKZ: ZH 9105.00 1200.00 10925.00 4,325,785 8.54 1.16 173.13 56,626.55
SeedCo Financial Services 21305.09 2100.00 21520.74 - 2,480 1820.00 19.99 103.87 18,740.07
Simbisa Industrials NTFD: ZH 30033.55 5500.00 30066.97 19,300 215.65 1.01 234.08 140,904.22
Star Africa Industrials NTS: ZH 198.19 6100.00 205.54 824,000 33.42 0.11 77.40
Tanganda Consumer Goods NMB: ZH 22255.13 25808.70 100 30,000 7.35 3.71 284.86 3,046.47
Truworths Industrials 189.62 745.00 189.99 400 3553.57 15.97 -5.00 8,459.07
TSL OKZ: ZH 13200.00 10925.00 13200.00 2,500 491,840 0.37 0.20 88.11 75,793.62
Turnall Banking PROL: ZH 700.00 25500.00 723.00 23,500 6,071,105 - - 76.29 14,819.13
Unifreight Consumer Services 3000.00 30150.00 3000.00 103,000 3,352,800 23.00 3.29 0.11 18,566.49
Willdale RTG: ZH 420.00 404.36 57,000 - - 30.66 13,331.72
ZB Industrials RIOZ: ZH 6638.00 220.00 6638.00 800 5,952 -15.64 -3.72 -13.79 53,199.84
Zeco Consumer Services SEED: ZH 25500.00 700 76,475 - - 400.00 169,031.93
Zimpapers 2.40 2.40 192,900 41,513,500 - - 16.60 9,691.38
Zimplow Basic Materials SIM: ZH 336.57 190.00 339.30 452,500 136,053,000 2.73 0.81 7.61 67,377.38
ZHL Consumer Goods SACL: ZH 2516.28 - 2539.58 351,100 721,668 23.30 0.93 19.73
Consumer Goods TANG: ZH 449.92 450.29 11,500 2,968,000 0.37 0.08 729.69
TOTAL Consumer Goods TRUW: ZH 723.00 3,100 47,137.52
Consumer Goods - 5,890
Consumer Services TSL: ZH - - 3,564.68
Consumer Goods TURN: ZH 400.00 2,600 3,194.23
UNIF: ZH - 18,798 7,189.53
Industrials WILD: ZH - - - 11,629.15
Industrials ZBFH: ZH 79,400
Industrials ZECO: ZH 340.25 321,060 11.12
2600.00 - - 1,954.37
Banking ZIMP: ZH 500.00 - - 8,750.90
Industrials ZIMPLOW: ZH 1,100 8,187.26
Consumer Services 2,400 3,732 3,053,282.78
Industrials ZHL: ZH 72,300 60,950
Financial Services 2,370,700 325,558
483,473,781

ETFs DMCS.zw 173.79 173.00 172.62 569,089 982,341 -1.17 -0.67 72.62 121.76
MCMS.zw 1863.06 1862.00 1840.37 3,366 61,947 -22.69 -1.22 84.04 2,368.06
Datvest Modified Consumer Staples ETF OMTT.zw 1100.23 1100.00 1100.00 -0.23 -0.02 149.95 1,579.88
Morgan&Co Multi-Sector ETF 19,913 219,043
Old Mutual ZSE Top 10 ETF 14,942.11

FINSEC Financial Services OMZIL 18000.00 21000.00 18000.00 6 1,210 - - 80.00 US$m
63.64
Old Mutual Zimbabwe 8.06

VFEX (US cents) Mining BIND:VX 5.00 5.00 5.00 152,154 7,607.70 - - -9.09 114.28
Mining CMCL:VX 1300.00 - 1300.00 - - - -- 107.19
BNC Consumer Goods - - - - - 0.48
Caledonia Consumer Goods PHL:VX 21.10 - 21.10 - - - - 0.18 YTD %
Padenga SCIL:VX 28.10 28.10 +90.48
SeedCo International +173.13
+122.28
Index Close Change (%) Open YTD % Top 5 Risers Price Change % +284.86
ZSE All Share 24,527.07 +4.43 23,486.38 +126.63 NTS 1200.00c +200.00c +20.00 +208.15
Top 10 16,007.66 +4.32 15,344.66 +135.01 RioZim 10925.00c +19.99
Top 15 17,959.55 +4.22 17,232.26 +138.53 Nampak 2480.00c +1820.00c +18.24 YTD %
Small Cap +3.67 503,410.25 +29.58 Tanganda 25808.70c +382.50c +15.97 +28.21
Medium Cap 521,871.64 +4.78 40,322.85 +107.03 Innscor 50042.75c +15.65 +30.66
42,248.87 +3553.57c +10.50
+6771.98c +74.70
+114.76
Top 5 Fallers Price Change %
FMP
Willdale 1000.00c -105.88c -9.57
Ariston 404.36c -15.64c -3.72
FBC 411.30c -9.76c -2.32
OK Zim -85.71c -1.43
5914.29c -5.19c -0.09
5894.28c

SALES & TRADING: Davide Muchengi: [email protected] | Lungani Nyamazana: [email protected] | Tatenda Jasi: [email protected]
RESEARCH: Batanai Matsika: [email protected] | Precious Chagwedera: [email protected] | Tafara Mtutu: [email protected]
Tel: (+263) 08677008101-2 | Email: [email protected] | Address: 14165 Sauer Road, Gunhill, Harare

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Property
NewsHawks

Issue 77, 22 April 2022 PROPERTY INTERIORS ARCHITECTURE GARDENING Page 35

The home of prime property: [email protected]

Subdued prop sector hits Mash Holdings

Demand for commercial space, especially in CBD, has remained weak, resulting in declining rentals and high voids levels.

PROPERTY firm Mashonaland Holdings tion as a hedge against inflation. increased by 80% to ZW$561 million. Apart to 94% from 90% during the 12 months to 30
Limited incurred a ZW$1.4 billion after-tax Bema said the rental growth in other from the effect of a longer period, Bema also September 2020 as a result of sustained cred-
loss for the 15 months to 31 December 2021 attributed the revenue growth to periodic rent it risk assessments on tenant on-boarding and
from a loss of ZW$671 million during the 12 sub-sectors could not keep up with the cost- reviews and increased occupancy from 79% to continuous engagements with sitting tenants.
months to 30 September 2020, as the com- push inflation trends. 81%.
mercial property market remained subdued The containment of the Covid-19 pandemic
during the period under review. During the period under review, the group’s Net property income percentage decreased together with the projected economic growth
investment property portfolio was valued at to 79% from 83% due to increases in property are expected to boost disposable incomes and
Demand for commercial space has remained ZW$13.9 billion, which represented a capital expenses. contribute towards an improvement in prop-
weak, resulting in declining rentals and high loss of 11% compared to valuation performed erty investment yields and will spur new de-
voids levels, especially for the commercial cen- as at 30 September 2020. Bema said: “The group implemented several velopments.
tral business district (CBD). property maintenance projects to improve and
“The capital loss reflects the current port- maintain the quality of space so as to attract The group is also pinning its hopes on port-
Chairperson Grace Bema highlighted that folio’s CBD concentration. The Harare CBD new tenants as well as ensuring tenant reten- folio diversification going forward.
although demand for residential property has sector has been negatively impacted by a re- tion.”
remained high, the falling disposable incomes duction in space demand due to the worsening “The group’s strategy is premised on port-
have held back rental growth. urban problems such as deteriorating building Operating profits rose by 62% to ZW$300 folio diversification to reduce the CBD office
infrastructure, street trading, congestion, noise million from ZW$185 million. But group concentration while increasing investments
The inflationary pressures have also distort- pollution and the attendant high building op- profit margin fell to 53% from 59% on ad- in the emerging sectors of the market, which
ed valuations, making it difficult to appraise erating costs, among others,” Bema said in a ministration expenses. include healthcare, flexible warehousing and
new investments while also making the prop- performance update for the 15-month period. logistics, hospitality, retail and office park seg-
erty asset class struggle to live up to expecta- Despite the challenging macro-economic ments,” Bema said. — STAFF WRITER
During the period under review, revenue environment, collections percentage improved

Page 36 News Analysis NewsHawks

Issue 77, 22 April 2022

NYASHA CHINGONO Mnangagwa pleads poverty as
chickens come home to roost
REVELATIONS that Zimba-
bwe is pushing to be classified a celerated Arrears Debt and De- ments. work, given the relationship we President Emmerson Mnangagwa.
Heavily Indebted Poor Country velopment Strategy (ZAADS) With another bill set to be add- have with multilateral funders.
(HIPC) as Harare seeks debt relief and later the Lima Plan of 2015, They will look at the implemen- launched in 1996 by the IMF
in what is effectively a volte-face Zimbabwe, according to the IMF, ed to the domestic debt stock, in tation of policy reforms. I do not and World Bank, with the aim
on the long-held official aversion is now pursuing the HIPC model, the form of the US$3.5 billion think Zimbabwe will qualify.” of ensuring that no poor coun-
to the initiative is a confirmation which during the Government of compensation of former commer- try faces a debt burden it cannot
of failure by President Emmerson National Unity was frowned upon cial farmers, Zimbabwe is likely to The HIPC is also shameful, manage. Since then, the interna-
Mnangagwa’s government. by Zanu PF. choke. considering government rheto- tional financial community, in-
ric that Zimbabwe should be an cluding multilateral organisations
The Mnangagwa administra- According to a detailed IMF Economist Prosper Chitamba- upper middle-income country by and governments, have worked
tion has been insisting Zimbabwe report published this month fol- ra believes the move to consider 2030. together to lower to sustainable
is on track to becoming an upper lowing the conclusion of Zim- HIPC is informed by panic, in the levels the external debt burdens
middle-income country by 2030, babwe’s Article IV Consultation, face of a stagnant economy with With just eight years before of the most heavily indebted poor
but the latest move suggests the the country’s public and publicly not much foreign direct inflows. 2030, the government's goal rings countries.
target is pie in the sky. guaranteed external debt is this hollow.
year expected to rise to US$17.4 “It shows that there is a bout of In 1999, a comprehensive re-
A report by the Internation- billion from US$17.2 billion in alarm at the rate at which arrears “We won’t be able to achieve view of HIPC allowed the IMF to
al Monetary Fund (IMF) reveals 2021. have been ballooning. Govern- vision 2030 because our economy provide faster, deeper, and broad-
that the southern African nation ment thinks this is the only way needs to grow by at least 7% or er debt relief and strengthened the
remains in debt distress, battling External public debt, the IMF of resolving this issue, given that 8% for a sustained period,” Chi- links between debt relief, poverty
to access long-term cheap capital said, stood at 100% of gross do- investment inflows have been sub- tambara said. reduction and social policies.
from multilateral lenders like the mestic product (GDP) at the end dued,” Chitambara said.
World Bank, African Develop- of 2020 but declined to an esti- According to the IMF, the level Of the 39 countries eligible or
ment Bank, and the IMF. mated 64% of GDP at the end of “As long as the economy has of extreme poverty in Zimbabwe potentially eligible for HIPC Ini-
2021, reflecting the impact on the not been growing, it is tough to has risen and about a third of the tiative assistance, 36 are receiv-
In an apparent somersault on nominal GDP of the sharp paral- repay our debts. It is also going population is at risk of food in- ing full debt relief from the IMF
economic policy, the Zanu PF lel exchange rate depreciation. to be more difficult if the US$3.5 security. The international com- and other creditors after reaching
government now considers HIPC billion debt to farmers is added to munity seeks improvements in their completion points. Sudan
an option following years of It is apparent that Zimbabwe our foreign debt.” domestic political conditions has made tangible progress toward
frowning upon the idea. has been failing to repay the debt, and economic policies to initiate establishing a strong track record
only managing to pay token pay- Chitambara, however, adds:” re-engagement with Zimbabwe. of policy required to achieve this
Instead, the government has Exploring HIPC is one option, milestone and eventual debt relief.
been parroting “successes”, with but I do not think it is going to The HIPC Initiative was
Finance minister Mthuli Ncube
boasting about imaginary surplus-
es at a time the masses are suffer-
ing and feeling the weight of the
deteriorating economy.

At this moment, it is prudent to
put several things into perspective
when looking at what the govern-
ment is proposing.

Firstly, this proposal is nothing
new.

During the Government of
National Unity (GNU) between
2009 and 2013, the then Finance
minister Tendai Biti proffered
HIPC as a possible solution to
Zimbabwe’s economic woes but
Zanu PF stalwarts, including Pat-
rick Chinamasa who would be-
come Biti’s successor at Treasury,
blocked the proposal. Zanu PF
heavyweights felt being labelled a
poor and highly indebted country
would have been a confirmation
of failure.

Those who were ushing the
HIPC model reasoned that the
model would allow the IMF to
provide faster, deeper, and broad-
er debt relief and strengthened the
links between debt relief, poverty
reduction and social policies.

For a debt-ridden country like
Zimbabwe, with not many op-
tions on the table, HIPC was seen
as a noble route.

After failing to kickstart the
economy despite publicly declar-
ing success and blaming all failure
on sanctions, the Mnangagwa ad-
ministration has now approached
the IMF with the proposal, as re-
ality sinks in.

With limited budgetary sup-
port, Zimbabwe has over the years
relied on internal resources and
loans with usurious interest rates
to finance some of its critical proj-
ects.

Following several failed at-
tempts to settle the ballooning
debt such as the Zimbabwe Ac-

NewsHawks Critical Thinking Page 37

Issue 77, 22 April 2022

Policies must reflect why Zim’s small
tobacco farmers use trees for firewood
ELLEN FUNGISAI CHIPANGO tainable woodlots. This, they argue,
The state’s only intervention is were addressing the farmers’ dilem- File picture. will meet the farmers’ energy needs
ZIMBABWE is the largest tobacco to encourage growing of eucalyptus ma of being energy poor and having were criminalised and  punished  for while protecting the environment.
producer in Africa and in 2018 the woodlots so that farmers have access to protect the environment. ecological “destruction”.
crop accounted for about  10%  of to fuelwood. But this doesn’t solve In my view this leaves the skewed
the country’s gross domestic prod- the real problem. Around the 1980s, the area was On top of that, the quality of their market relations intact. The repro-
uct. Zimbabwe’s hopes to become an initially established as a farming produce was affected by using ineffi- ductive cycle of the farming house-
upper middle-income  economy  by My study illustrates that poor peo- co-operative. Later, the government cient energy sources. And they had holds is tied intimately to the mar-
2030, therefore, depend quite heavi- ple’s energy poverty is an outcome of dissolved it as part of the land re- to work harder to produce it. ket. But this relationship is skewed
ly on the tobacco sector. a web of relationships between the form programme – a strategy aimed Government’s approach against the farmers when there
state and the market, where there is at enhancing access to land for more What the government actors told me are  decreased  returns for their la-
But the process of curing tobacco an unequal exchange. It is beyond a people. Under the programme the show that government is blind to the bour.
uses a lot of energy – something that poor farmer’s control. state allocated each household three farmers’ plight. Asked how the poor
is often unavailable in Zimbabwe. Energy poverty is a market condi- hectares of land. The local residents should cope, an official from the En- When the government fails to
Power is unaffordable for many and tion depend on subsistence farming and vironmental Management Agency address these market failures, which
is frequently cut. I conducted interviews with resi- most of them grow tobacco as a cash retorted, “Let them use coal!” affect the poor while encourag-
dents of the Zingondi Resettlement crop. ing export-led economic growth, the
For small-scale tobacco farmers, Area in Manicaland province of Some officials held the view that winners are tobacco buyers and the
the prices of inputs have increased Zimbabwe. I also interviewed gov- For this population, energy pov- poor farmers weren’t environmental- losers are the sellers.
while the market prices of their ernment officials and reviewed per- erty is a market condition. This ly conscious as they harvested fuel- What to do about it
product have  remained  the same or tinent policies and literature. My community cannot afford electricity wood unsustainably. They said this There are three fundamental issues
declined. This is due to unfavourable main question to the farmers was: connection because they are poorly underscored the need for the govern- to consider.
political-economic conditions. why they were energy poor in their remunerated for their labour and ment to intervene and  regulate  the
region? From the government actors, produce. use of fuelwood. First, there needs to be an under-
For instance, government ordered I sought to understand how they standing that energy poverty and en-
that only 60% of sales would be paid People I interviewed said they had Another solution the  govern- vironmental degradation are tied to
in US dollars and the remainder in been forced to  cut  indigenous trees ment  and the  private sector  have the socio-economic conditions farm-
local currency. Further, many small- to burn for tobacco curing. They proposed is the establishment of sus- ers find themselves in. The problem
scale farmers are into contract farm- must be framed correctly.
ing. Too often, farmers’ proceeds are
eroded by paying off their debts with In this case, the problem is not a
local contract companies that supply poor farmer. It is the  unequal  rela-
them with farming inputs at the be- tions in the market place. The pre-
ginning of the season. dicament of poor farmers can’t be
viewed in isolation and must be un-
Financially pressed and some- derstood within the context of glob-
times lacking electricity, farmers al processes beyond their control.
have to look for alternative sources So what are the solutions?
of energy – and cutting down indig- Policy makers need to look beyond
enous trees is one. This creates envi- proximate causes of energy poverty
ronmental degradation. and environmental degradation to
discover the inextricable links be-
Tobacco farmers are estimated to tween the social, political-econom-
account for 60 000 hectares of de- ic and environmental factors. This
forestation each year, around 20% of approach addresses the underlying
the country’s total forest loss of close problems and not mere symptoms of
to 300 000 hectares a year. energy poverty.

Leaving the farmers at the mercy Another solution would be to
of the market isn’t sustainable. This persuade people to use electricity
is a situation where the state should and renewable energy technologies.
intervene, for the wellbeing of the But this requires careful and flexible
farmers and the environment. economic policies to cushion rural
livelihoods and the buying power of
I conducted  research  into how consumers.
a lack of access to energy informs
farmers’ decisions about their en- In addition, policies must stop
vironment. To explore the issue I attempting to solve the problem
looked specifically at the dilemma of as though it’s one caused by poor
tobacco farmers who are faced with farmers. Rather, they should take on
both energy poverty and environ- board the fact that socio-ecological
mental degradation. fixes such as woodlots don’t work.

Zimbabwe’s small-scale farmers, Nature, economy and society are
especially tobacco farmers, have inseparable. Environmental laws
been  labelled  ecological destroyers and policies should approach them
by government and its agencies. But, as such.
as my research shows, poor farmers
are forced to burn fuelwood because — The Conversation.
they can’t afford to pay for electric- *About the writer: Ellen Fungi-
ity. Cutting down trees is therefore sai Chipango is a post-doctoral re-
not something to be condemned. search fellow at the University of
Johannesburg in South Africa.
The state  controls  and regulates
small farmers’ environmental prac-
tices without addressing what forces
them to follow these practices.

Page 38 Critical Thinking NewsHawks

Issue 77, 22 April 2022

Ndaba Operation Dudula is a tragic
Sibanda symptom of unresolved issues

DUDULA in Zulu (and Ndebele)
means to drive back, repel, repulse,
beat back or push away.

The Alexandra Dudula Opera-
tion in South Africa was set up in
2021 in Alexandra Township, one
of the poorest and lawless areas of
South Africa. It seeks to ensure that
jobs and business opportunities go
to the South Africans, hence its
agenda initially was to drive out un-
documented immigrants from their
communities and the country.

Now they want all foreigners out.
Dudula is a splinter group of the
Put South Africans First movement
which executed and promoted the
rising ant-immigrant sentiment
and campaigns on social media
networks. The Dudula movement
claims that it seeks to conscientise
and galvanise the South African
government to take action on un-
documented immigrants and those
who are alleged to be involved in
criminality. While criminal activi-
ties cannot be condoned or ignored,
the group seems to be bent on
making life hell on earth for black
immigrants in general and for the
undocumented ones in particular in
mostly low-income communities.
Zimbabweans are the primary tar-
get.
They are on a rampage in town-
ships where they pump up the an-
ti-immigrant sentiment to the sky.
Ironically, while they condemn the
illegal activities of the immigrants,
the Dudula members have been
caught offside by taking the law
into their own hands.   

Traction, expediency and popu- Nhlanhla Lux addresses a crowd of people who have surrounded the house of a person claimed to be a drug dealer. He emerged as one of the leaders of Operation Dudula.
lism
Why do groups like the Dudula humbles.            If all the undocumented and il- powers, multinational entities and the main driver of this kind of an-
movement seem to be gaining mo- Cruel and rude machinations legal immigrants go back to their entitlements.  ti-immigrant sentiment.  Poverty is
mentum in spite of their anti-devel- One of the possible reasons why the countries of origin, will the crime The sooner these vigilante groups a pain and a stain no person should
opment, anti-black, anti-pan Afri- Dudula groups seem to be gaining and unemployment levels signifi- wake up and realise that the trag- bear or parade. Economic growth
canist and anti-unity and anti-peace momentum is the harsh reality of cantly go down?    ic realities of the shacks and abject is key. Poverty is mainly driven by
denotations and demonstrations? life that South African blacks face poverty in poor and marginalised joblessness, laziness, greed, mis-
For instance, the Dudula group and on a daily basis. They have been The disillusionment that polit- communities is not coinciden- management and underutilisation
its variations seem to be spreading marginalised for too long. Think of ical independence does not nec- tal and artificial the better for the of Africa's abundant resources and
across the length and breadth of the visibility and accessibility to the essarily translate into economic country. The socio-economic prob- options. The national cake is not
South Africa. Do they represent the increasingly frustrated black South independence and prosperity for lems which are faced by ordinary shared equitably. That is another
sentiments and concerns of all black African of another poor black per- the ordinary citizen is deafening black South Africans are structural stark and sad reality. Economic in-
South Africans?  Are they fighting a son from another African country and unbearable. That there is fierce or systemic, hence these transcend clusivity is a rarity in Africa.  Cor-
genuine cause?  Are their aims, ob- who is trying to eke out a living by competition for jobs and other eco- the emergence and existence of the ruption is a cancer. Selfless and ex-
jectives and agendas sustainable and doing a menial job or operating a nomic opportunities with foreign pandemic and the immigrant pop- emplary leadership is a must if the
sound? Are they targeting the real little spaza shop. Historically, we all nationals is uncontestable.    ulations. ordinary citizens are to be redeemed
problem causers or they are scape- know of the plight of black people When all the key players accept from the yoke of economic and so-
goating other black victims? What worldwide, the South African black However, the problem is deeper these unfortunate realities, then cial frustration, and depravation.
is subtle and obvious about such comes from a previously disadvan- and wider than meets the eye. It is meaningful, honest and life-chang-
groups? Are other voices of reason taged group.  deeper and older than the adverse ing discourses and protests will Multifaceted challenges and char-
conspicuous by their silence or ab- effects of Covid-19. The pandemic begin.   For now, what we see are latanism
sence? He or she probably feels  that could have worsened the situation, nothing else but damaging, dan- The current resurgent black-on-
the other African brother or sister but like the undocumented vendor gerous and deceiving purges; trag- black violence that has risen its
What about other hidden and is taking up his or her job or liveli- who is selling his or her wares on a edies of prejudices, controversies, ugly head in that rainbow nation
hideous forces at play? The author hood. There is an appearance and a pavement, its disappearance is un- misconceptions and misdiagnoses has serious social, legal, economic,
believes that the Dudula move- feeling of immediacy to the crisis. Is likely going to be the ultimate pan- of alarming proportions. These an- political, cultural and psychologi-
ment is taking things in simplistic it that immediate? acea for the ordinary South African ti-black demonstrations and perse- cal implications and complications.
or one-dimensional fashion. That economic woes and poverty. All cutions do not augur well for South Only honesty will or can redeem
attitude risks isolating South Africa Is it that visible or immediate? Is these two seem to be mere sacrificial Africa’s image and relations on the the situation, otherwise charlatan-
from the rest of Africa. No nation is it new? lambs in a crude and cruel game of African continent and beyond.            ism will make sure that it resurfaces
an island, no matter how powerful political and colonial machinations, There is no doubt that poverty is and rules time and again albeit in
or prosperous it deems itself to be. Is the other ordinary black per- perceptions and indoctrinations,
What goes around comes around. son the causer? involving political participants,
All lives matter. South African, Ni-
gerian, Ethiopian or Zimbabwean. 
Black or white. 

Rich or poor. Humanity is one.
Arrogance boasts and blinds. Life

NewsHawks Critical Thinking Page 39

Issue 77, 22 April 2022

different shapes, sizes and colours in litical, social and economic motives and economic decay in Zimbabwe, documented? This could seem like a Is it not time and prudent for
spite of the concerned outcries and and nuances of the Dudula vigilante and he did that in the full glare of kind of meting out mob justice by African leaders, businesspersons,
from genuine victims, the affected groups but, more importantly, have the world. He did that during our the disgruntled citizens, but it has political parties and the generality
communities and countries. isolated, questioned and dented the time of need. The year was 2008 af- long-term consequences that are of Africans to discuss these unpleas-
A ticking time bomb image of South Africa which Man- ter the country’s disputed 29 March self-defeating and damaging. Where ant and perennial issues in a real,
South Africa is not only becoming dela wanted to be a rainbow nation. general elections. This is the kind of do these recurring spates of killings robust, honest and soul-searching
an unsafe and unfortunate desti- pan-Africanism that l find dishon- leave South Africa in a community manner? Black-on-black persecu-
nation by the passing of each day In a situation of desperation and est and self-defeating.   of decent and democratic nations? tions and killings will continue in
for the poor, undocumented and frustration, it is easy to fall prey to Values and norms How do they impact tourism? Rule South Africa as sickening skeletons
illegal black immigrants, but also populism and apportion the pover- The tragedies and ironies of the spir- of law? in our closet if African journalists, 
it is a potential danger zone for ty blame to the next person who is it of ubuntu are painfully playing citizens, writers, historians and
other black South Africans who also a victim of bigger conspiracies out in today’s South Africa for the Justice? International law and re- activists still embrace an ostrich
could be overzealously, randomly and principalities.  Foreigners in entire world to see. It is sad. Values lations?  mentality that these unjustifiable
and wrongly harassed, arrested or South Africa now live in fear.  This are important in any given society Facing haunting ghosts of the past and  unacceptable levels of poverty,
detained by South African police is not the first time. The brutal at- because they constitute the glue of Broadly, politically, socially and corruption, brutality and social dis-
officers on a number of spurious tacks and vilifications against black love, humility and humanity. Once economically speaking, the capital- parities dogging Africa will simply
grounds, including on the suspect- immigrants are an exhibition of the a society or a people lose basic val- ist and racist forces, the  dishonest, go away of their volition. That is
ed and suspicious grounds of being presence of Afrophobia that is root- ues, like beliefs in the respect for corrupt, incompetent, self-serving delusional!
an undocumented immigrant. Ste- ed in the minds of the coordinators the sanctity of life, the fibre of that and greedy African leadership are all
reotyping people is dangerous. and supporters of the violent at- society is gone. What happened to complicit in this mayhem, whether Let the selfish and myopic pre-
tacks.  Will the xenophobic attacks the spirit of love, dignity, integrity, they like it or lump it, whether they tenders sit down, the concerned
For instance, one could be in- deter migrants?           hospitability, brotherhood and sis- agree or disagree. That South Africa pan-Africanists and patriots stand
terrogated or arrested for failing Solidarity in the corridors of power terhood? If the fight for economic has a long road to achieve her so- up and play their crucial roles or
to produce South African identifi- The major chunk of the problems opportunities and survival means cially equitable economic indepen- else history will judge them harshly.
cation documents or for failing to ordinary citizens have to contend going on a road that dehumanises dence in spite of being one of Afri-
prove one's citizenship status or by can be traced to the fact that Afri- and destroys an innocent soul, then ca's powerhouses is beyond debate. For a better, stronger and unit-
failing to identify parts of the body can leaders have a long tradition of what happened to one’s inner voice? Is there a political will to engage key ed Africa to emerge, concrete and
in a manner deemed linguistically tolerating the bad that other Afri- Is it dead?  Vincent van Gogh once stakeholders?  To take the bull by corrective measures have to be tak-
convincing by a police officer. It is can leaders do in the spirit of pro- said “conscience is a man’s moral the horns? en. The meaningful conversations
an open secret that  a number of  moting a false and skewed sense of compass”. should be based on fact, not senti-
South African police officers who solidarity, territorial integrity and  The spirit of ubuntu is dying South Africa has to look itself in ment. They should not be grounded
stalk and interrogate pedestrians on brotherhood. It looks like it is their Nelson Mandela preached and put the face and honestly and seriously on exaggerations, indoctrinations
the streets are  motivated  more by mission to protect their cohorts, a lot of emphasis on the need for a face its social, economic and po- and misconceptions. For instance,
a personal, hidden and selfish desire clubs and friends at the expense of just society in which even the blacks litical divides and disparities .The poor and marginalised commu-
and agenda to grease their palms their nations and citizens. would be empowered, uplifted and majority of black South Africans nities are neither a creation nor a
than to professionally uphold law respected:   culturally, politically, still live in abject poverty. Though manifestation of immigrant pop-
and order.  Legally, this  could trig- They hardly call out or call to or- socially and economically. Is that this sad reality or state of affairs ulations in South Africa. Neither
ger heightened citizens' suspicions, der those perpetrating misdemean- spirit of ubuntu still alive in South has psychological, ideological and are they coincidental and artificial,
resentment and even lawsuits. ors, omissions and mismanagement Africa? Where is the spirit of empa- economic manifestations and im- but structural and systemic. Wrong
of funds and electoral fraud by their thy and sympathy in the senseless plications, the victims of these in- diagnosis begets wrong medication.
The persecutions and killings incumbent colleagues and neigh- killings of black souls in cold blood equalities ironically find themselves
have not only created a lot of fears, bours. for the mere reason that they are venting out their frustrations and *About the writer: Ndaba
anxieties, controversies, debates, illegal immigrants, or they are un- sufferings on other political and Sibanda is a Bulawayo-born poet,
perceptions and misconceptions For instance, it is fresh on our economic victims from other Afri- novelist and non-fiction writer
within and without the boundaries minds that former president of can countries, who also happen to who has authored books of various
of South Africa about their real po- South Africa Thabo Mbeki once be black, poor and desperate. genres and persuasions and co-au-
deliberately trivialised the political thored many published works.

People march in Diepkloof on Youth Day as part of Operation Dudula to push migrants out of Soweto in June 2021.

Page 40 Reframing Issues NewsHawks

Issue 77, 22 April 2022

By-elections: A case of authoritarian
resilience or democratic resistance?
THE summary below is an extract from
the latest by a local think-tank, the Zim-
babwe Democracy Institute, titled De-
terrence of the Zambian Precedent in
Zimbabwe: The March 2022 By-election
Litmus Test: Authoritarian Resilience or
Democratic Resistance? It is focused on
Zimbabwe’s 26 March by-elections which
on face value were won by the main op-
position Citizens' Coalition for Change
(CCC), but which are subject to different
legitimate interpretations, including that
Zanu PF gained ground. The devil lies in
the detail.

Summary of key findings:
THE electoral defeat of the ruling par-
ty in Zambia in 2021 has triggered the
ruling Zanu PF elites to intensify build-
ing and strengthening the authoritarian
capability and resilience infrastructure.

The current political economy has
therefore been characterised by the de-
ployment of strategies to prevent the
2021 Zambian precedent and boost
Zanu PF's staying power beyond 2023.

In this report, we conceptualise
Zimbabwe as a competitive authoritar-
ian regime that is neither in transition
towards democratic breakthrough nor
towards absolute autocracy. It is a delib-
erate mid-way regime with strong insti-
tutional safeguards to keep the system
neither a democracy nor an absolute
autocracy.

• On one hand, the regime fears full through in Zimbabwe and the worst statistics show that if Zanu PF manages • In 2022, the total votes in the Zanu ince.
democracy for its exposure of un-elect- feared scenario in the minds of the to maintain this growth trend, it will PF strongholds declined by 46% of the Midlands province
able elites to potential electoral defeat handlers of the Zanu PF regime led by completely knock out the opposition 2018 baseline whereas they declined by
by the opposition and, on the other Mnangagwa. Recent studies reveal that from its stronghold regions. 63% in MDC-Alliance/CCC strong- • Although all parties improved their
hand, fears absolute authoritarianism strong regimes have been overcome by holds in the same period. In the Zanu electoral performance in the Midlands
for its inherent proneness to suffer citizen protests when security forces ei- • The reduction in a few contesting PF strongholds, CCC dropped 51% of province during the 2022 by-elections,
coups d’état, civil wars and internation- ther join the citizens or decide not to candidates per constituency in 2022 the 2018 vote given to the MDC-Al- Zanu PF improved much better by
al isolation; shoot their fellow citizens in defiance of saw a reduction in the total share of liance whereas Zanu PF dropped 38% 12% from 35% in 2018 to 47% in
orders from the ruling elite. “other” political players from 17% in of its 2018 vote in the same area. This 2022 whereas CCC improved by 5%
• The competitive authoritarian re- 2018 to 3% in 2022. contrasts with a 61% drop in total votes from 46% in 2018 to 51% in 2022.
gime in Zimbabwe is broadly charac- Voting outcomes in Zanu PF strongholds Outcomes in opposition strongholds by CCC and 34% drop in total votes
terised by three key actors in order of • Zanu PF increased from the 2018 by Zanu PF in the opposition strong- • Therefore, Zanu PF is closing the
their power relations: (i) the military • The findings indicate that CCC holds in March 2022. This shows that opposition’s winning margin in this
elite, (ii) Zanu PF, and (iii) state insti- baseline of 65% to 75% of the total performance increased by 3% of the poor voter turnout affected the CCC province. There is a notable decrease
tutions for democratic consolidation votes cast in 2022 in its strongholds. 2018 MDC-Alliance vote compared strongholds more than in Zanu PF in the total votes going to other players
-- the media, judiciary, legislature and There is an additional 10% in 2022 to Zanu PF’s 8% increase in opposition strongholds. from 19% in 2018 to 2% in 2022.
the electoral arena. The military elite is showing that Zanu PF is increasing stronghold constituencies. Harare province
the decisive power bloc affecting Zanu its performance and popularity in its • There was a 54% decline in voter
PF decision-making directly, while af- stronghold regions. • Whereas Zanu PF got 26% of the · Although all parties improved their turnout in the Midlands province be-
fecting state institutions directly or in- total vote in 2018, it managed to im- performance in Harare province, Zanu tween the 2018 and 2022 elections.
directly via Zanu PF as its medium; • The CCC performance in Zanu PF prove to 34% of the total vote in 2022 PF had a superior improvement to
stronghold regions increased from the in the opposition strongholds. This CCC. It improved by 8% from 24% • Although poor voter turn-out af-
• Four regime durability capabil- 18% share of MDC-Alliance to 22% in is compared to CCC’s increase from in 2018 to 32% in 2022 whereas CCC fects both parties, the CCC party is af-
ity infrastructures intensified by the 2022. There is an additional 4% show- MDC-Alliance's 59% in 2018 to 62% improved by 5% from 59% in 2018 fected the most by poor voter turnout
(Zimbabwean President Emmerson) ing that CCC performed better than in 2022 in the opposition strongholds. to 64% in 2022. There was a 66% de- as shown by a 49% decline from the
Mnangagwa regime are identified as: (i) the MDC-Alliance in Zanu PF strong- cline in voter turnout in Harare prov- previous MDC-Alliance total votes as
infrastructure for coercion of rivals; (ii) hold regions. • Zanu PF needed 33%+1 to win ince from the 2018 baseline. The CCC compared to a 38% decline of Zanu PF
infrastructure for the extraction of reve- in the opposition strongholds in 2018 party recorded a 63% decline from the in the same period.
nues; (iii) infrastructure for the registra- • The proportions with which Zanu whereas, in 2022, it only needed previous MDC-Alliance total votes Bulawayo province
tion of citizens; and (iv) infrastructure PF and CCC gained in the Zanu PF 28%+1 to win in the same areas. whereas Zanu PF had a 56% decline
for the cultivation of dependence. strongholds indicate that Zanu PF sup- from its previous total votes in Harare • CCC had a greater proportion of
port is growing faster than that of CCC • There is a 5% shrinkage in Zanu province. Comparatively, CCC total improvement than Zanu PF in Bul-
Possibility of democratic breakthrough in this region. Zanu PF’s winning mar- PF’s losing margin in the opposition votes declined by a higher proportion awayo. The CCC improved by 18%
• Mobilisation of large numbers of gins increased by 6% in its strongholds. strongholds. compared to Zanu PF in Harare prov- from 43% in 2018 to 61% in 2022
whilst Zanu PF only improved by 9%
voters or large masses to protest elec- • In 2018, the MDC-Alliance fell • In addition, the vote received by from 23% in 2018 to 32% in 2022.
toral manipulation have been the two short against Zanu PF with 47% other candidates decreased from to 4%
key strategies used by the opposition whereas in 2022 it fell short with 53% in 2022 from 15% in 2018 in the op- ...To page 42
to create "substantive uncertainty" or in the same region. Read together, these position strongholds.
"procedural certainty" of elections re-
spectively.

• Divisions in the ruling elite and
opposition alliances with moderate rul-
ing elites make transition to democracy
possible.

• Cooperation of the military in
citizen-led transition is the most fun-
damental facet for a democratic break-

NewsHawks Reframing Issues Page 41

Issue 77, 22 April 2022

JAN-WERNER MÜLLER How autocrats endure the constitution at will; if a court
finds fault with a Fidesz law (now
THE timing could not have been Viktor Orban and the Myth of extremely unlikely, since the courts
more striking. On 3 April, nearly the Self-Destructing Strongman are controlled by Fidesz judges),
six weeks after Russian President the law can simply be written into
Vladimir Putin’s assault on Ukraine Supporters of former army chief Abdel Fattah al-Sisi in Cairo after Egypt’s electoral commission declared him the new presi- the constitution. If you make the
had apparently reinvigorated and dent, June 2014 © Getty Images law, almost nothing you want to do
reunified the liberal democratic can be illegal. Orban has thus made
West, Hungarian Prime Minister sions. After all, as recently as early gees, George Soros, the European government makes cosmetic ad- efficient use of what the sociologist
Viktor Orban was easily re-elect- February, Western assessments of Union, and, as of late, the LGBTQ justments to address the concerns, Kim Lane Scheppele calls “auto-
ed to his fourth consecutive term Russia itself were quite different. community. (After all, each time even as its substance stands and the cratic legalism”: rules and proce-
in office, and his fifth in total. Many commentators noted the ap- Orban faces election he has need- political facts on the ground that it dures are not openly violated; only
Although Orban has long emu- parent modernization of the Rus- ed to conjure up a new existential seeks are established. A prime ex- their spirit dies a slow death. Seem-
lated Putin and presides over an sian army and Putin’s seemingly threat to the nation.) But beyond ample was Hungary’s move, back ingly small legal changes can have
increasingly authoritarian regime clever strategies of accumulating these strategies, which are easy in 2012, to lower the retirement large systemic effects. Scheppele
— and although he faced for the currency reserves and getting part- enough for other aspiring autocrats age for judges by eight years, which has also coined a memorable term
first time a largely united opposi- ners in the West, including Germa- to copy, there is the more complex allowed Orban to get rid of senior for this dynamic: the Frankenstate.
tion front — he had little trouble ny, to go along with nefarious geo- picture of how Orban, a trained jurists who posed a potential check Just as Frankenstein’s monster was
winning, drawing more than 53% political projects such as the Nord lawyer who surrounds himself with on his regime and to appoint re- created from normal human parts,
of the vote and securing a contin- Stream 2 gas pipeline. Had Putin other savvy jurists, has for so long gime-friendly replacements. The many of the individual elements of
ued supermajority in parliament. not ordered his soldiers to invade kept up a façade of perfect legality EU, which is supposed to be a the Hungarian system look fine;
With the retirement of German Ukraine — or had things gone dif- — and even legitimacy — for his guardian of the rule of law for its they do not appear repressive in
Chancellor Angela Merkel, he also ferently in the initial assault — few rule. member states, duly found fault and of themselves. But assembled
now carries the dubious distinction would have revived the idea that A monster made in Brussels with the measure, but although the together in a certain way, they spell
of being the longest-serving head autocracies are bound to fail, just The key to Orban’s success has deposed judges were compensated the end of democracy.
of government in the European as the Soviet Union did in 1991. always been what one might call for their lost years of service they
Union, a supposed bastion of hu- a tactic of redundancy within a were not reinstated: Fidesz got the The individual parts of Orban’s
man rights and democracy. Indeed, the Hungarian election larger strategy of incremental but compliant jurists it wanted. system look fine; together they
— the first major vote in Europe systematic moves toward authori- spell the end of democracy.
The outcome of the election has since the war in Ukraine began tarianism. Thus, in order to contin- The definition of success, in life
startled observers in Europe and — calls into question any facile ually constrain the opposition and in general and in the game of au- To obtain a permanent struc-
the United States. In the open- assumptions about the limits of broaden his power, his Fidesz party tocracy creation more particular- tural advantage, Fidesz has en-
ing weeks of the war, Orban had autocracy, even within the EU it- pushes on multiple fronts and tries ly, is simple: doing more than is gaged in laser-sharp gerryman-
notably refused to allow Western self. Instead of weakening over different legal tools at the same necessary. Of course, at the outset, dering throughout the country
weapons to be transported across time, Orban has carefully crafted time. When one approach fails, when Orban first came to office, it (while ceding liberal Budapest,
Hungarian territory and ruled out a system that is apparently inocu- the same end might be achieved by was hard to predict which strate- the capital, largely to the opposi-
sanctions on Russian energy. Giv- lated against democracy and smart an alternative means; when there gies would allow Fidesz to achieve tion). To promote Fidesz and its
en the Hungarian leader’s awk- enough to survive even in the face is resistance — for instance, from a two-thirds majority in parlia- candidates, Orban has used state
ward proximity to the Kremlin of policy blunders. the European Union — to a ques- ment in every election and thereby resources to fund nonstop propa-
— Ukrainian president Volodymyr tionable new law, the Hungarian give him almost unlimited power. ganda around election time (and
Zelensky has referred to Orban’s International observers have Once secured, that supermajor- even at non-election time). He has
Hungary as a “Russian branch in focused on his government’s suc- ity allowed Orban to change in steadily undermined Hungarian
Europe” — and the determina- cessive campaigns against refu- civil society, taking a page from
tion of the Hungarian opposition, Putin’s playbook by forcing NGOs
many thought that Orban had at to register as “foreign-funded” and
last overplayed his hand. More- to undergo special state audits. He
over, these predictions dovetailed has made ad hoc changes in elec-
with growing confidence in the toral laws to counter the attempts
United States and Western Eu- by the opposition to unite effec-
rope that Putin’s regime was finally tively, allowing citizens to register
meeting its long-delayed but preor- anywhere in the country and en-
dained fate, undermining itself the abling voter tourism in areas where
way that all autocracies do, sooner a Fidesz majority might be threat-
or later. ened. Many observers estimate that
a challenger to what has effectively
A belief in the inevitability of become a one-party state would
autocratic self-destruction was need to obtain about five percent
prevalent at the end of the Cold over and above any Fidesz rival to
War, and Russia’s so far catastroph- win an election.
ic war against Ukraine has revived
it. Putin’s miscalculations, so the At the same time, Orban has
theory goes, are due at least in part been careful not to move beyond
to the Russian leader being cut off autocratic legalism into the terrain
from accurate information, with of more openly coercive authori-
the military and security elite on tarianism that might have prompt-
whom he crucially relies too afraid ed EU intervention. Merkel coop-
to present him with the facts on erated with Orban for more than a
the ground. In short, autocracies decade, and the European Union,
are apparently incapable of admit- while critical of his government’s
ting mistakes and hence unable to authoritarian direction, lavished
learn over time. As a series of influ- some $45 billion on the country
ential studies in the 1990s suggest- between 2014 and 2021. Many
ed, these regimes also have poorer European observers felt that if
economic development than their there were open anti-Semitism or
democratic counterparts: arbitrary, violence on the streets, such sup-
politically motivated interference port would cease. (Dog-whistling,
and suppression of information including by the prime minster
also harm markets. Today, Rus- himself, remains acceptable.) But
sia — a country that has notably short of that, Brussels was simply
failed to develop a diversified econ- unwilling to rein in the Franken-
omy and continues to rely over- state.
whelmingly on the exploitation of
natural resources — would appear The destruction of media plu-
to confirm this rule as well. In this ralism has been another important
view, not only has the liberal dem- part of Orban’s strategy. Orbanver-
ocratic West united against Putin; steher — the Hungarian leader’s
Putin himself, through the contin- persistent coterie of international
ual strengthening of the autocratic defenders — never fail to mention
features of his regime, might turn that there is no censorship in Hun-
out to be his own worst enemy. gary: critical journalists can blog
and write damning investigative
But Orban’s decisive victory flies reports about the government to
in the face of such comforting illu- their heart’s content. But given the

Page 42 Reframing Issues NewsHawks

Issue 77, 22 April 2022

importance of state television and ble. Rather, it is based on the polit- man companies such as Mercedes, war of aggression. Analogously, for other EU states.)
the systematic acquisition of media ical use of state structures and the BMW, and Audi to enjoy highly fa- Hungary, the EU’s billions have Already, such efforts have been
companies by regime-friendly oli- manipulation of what are on the vorable treatment in Hungary. been what oil is for  Gulf states: a
garchs, it is exceedingly difficult for surface legal means: in particular, free and apparently unlimited re- met with predictable complaints
such reporting to reach a national public procurement processes in The point is not that  Orban’s source that can be used for self-en- that the Union is seeking to pun-
audience. Indeed, the opposition which, strangely, only one bidder careful strategy of autocratic legal- richment and the targeted buying ish Hungarians for having voted
is unable   to reach   about a third ever shows up. In  Orban’s  Hun- ism and Mafia statecraft is based of political support. the wrong way. The fact is that it’s
of the electorate. During the entire gary, this has meant that the gov- on unique dark political arts or never the right time for imposing
run-up to the April election, Peter ernment has continually sponsored that the regime is invincible. But For years, Hungary has enjoyed sanctions or withholding subsi-
Marki-Zay, the opposition leader, overpriced projects — especially in it is naïve to assume that the strat- more EU funds per capita than dies; before the election would
was given a total of five minutes to construction — to enrich the cof- egy is bound to be self-undermin- any other country (partly because have seemed political, and after
make his case on state television, fers of regime-friendly oligarchs; ing, any more than it is to assume the Orban government submits so the election also seems political.
which was otherwise largely filled many of these projects are submit- that Putin’s is. It is also naïve to many projects); inadvertently, the The same is true for other strate-
with pro-Orban propaganda. Like ted to the European Union for fi- think that Orban’s adversaries will EU has also provided a safety valve, gies that should have been tried
other right-wing populists (many nancing. be successful as soon as they reveal as domestic discontents, especially years ago, such as measures to
of whom fashion themselves as how the system really works. Vot- young people, can simply emigrate clamp down on the International
heroic defenders of free speech), Through such mechanisms, ers want to know what alternatives to other parts of the Union and Investment Bank, a Russian en-
Orban refuses to take part in an what Magyar describes as “the po- are being offered and what they take up employment — a form of tity whose headquarters are now
open debate with any challenger: litical family” of  Orban  loyalists can hope for by way of a better relief that was not available during in Budapest. Until now, the bank
far better to avoid difficult ques- are kept in line, and in return, they future. The united opposition in the Cold War. This particular set has been allowed to operate with-
tions and shape his own message have done the regime favors such Hungary — cobbled together from of factors — subsidies, emigration, out real oversight, ensuring plenty
by chatting with regime-friendly as acquiring the country’s media six different parties ranging from and protection from powerful of channels for money laundering
journalists every Friday and taking companies, which thereby remain postcommunist to something like member states like  Germany — and international immunity for a
part in carefully scripted moments firmly pro-Fidesz. Even the most Fidesz lite — could not agree on has resulted in what the political host of suspect characters. And the
in which he encounters “the peo- egregious forms of theft by these any positive vision (or even some- scientist R. Daniel Kelemen calls Global Magnitsky Act could be
ple” directly. (It is a lesson that the oligarchs are not prosecuted, be- thing like a shadow cabinet, for an “authoritarian equilibrium” in- used against some of the corrupt
Republican National Committee cause the public prosecutor is a that matter). All that held them side the EU. Hungarian oligarchs.
in the  United States  has taken to faithful Fidesz party man. together was opposition to Orban.
heart in its recent decision to with- Their problem is our problem Hungary has enjoyed more EU If there is now a larger struggle
draw from the nonpartisan Presi- Nor has Orban been content It has often been convenient for funds per capita than any other between democracy and autocracy,
dential Debate Commission, and to limit his corruption to Rus- international observers to conclude country. as US President Joe Biden keeps
to take part only in debates of its sian-style oligarchy. He has also that, ultimately, people need to pointing out, then democracies
own devising.) used extensive economic deals solve their own problems: after all, Following this month’s election, cannot forfeit tools that could
Family man with Russia itself to entrench his Hungarians voted for  Orban  and that equilibrium might finally be- help their cause.  Above all,  West-
Law is crucial for savvy autocrats, regime. In a deal whose details re- got the regime they chose. If the come destabilized: Brussels is be- ern leaders should stop making the
but so is money. Another founda- main largely unknown, the Fidesz Hungarian opposition and what ginning to turn off the tap. problem worse by funding the rise
tion of Orban’s system, and one government has contracted with remains of Hungarian civil society of autocracies they claim to op-
that contrasts it with Poland’s, with Russia for an enormous loan to fi- cannot save democracy, then the Two days after  Orban’s victory, pose. And they should let go of the
which it otherwise shares many nance the construction of a nuclear EU, let alone the U.S. State De- the European Commission an- illusion that those same regimes
similarities, has been the creation power station (which is being built partment, cannot do it for them. nounced that because of concerns will collapse on their own — espe-
of what the Hungarian sociolo- by a Russian company). Russia also But such assertions are misleading, about corruption and fraud, it will cially when they are actively sub-
gist  Balint Magyar calls a “Mafia won the bid for Budapest’s third not least because outside actors can freeze EU funds for Budapest — a sidised by democracies themselves.
state.” Such a state is not about ba- metro line, despite offering lower hardly be called neutral: consider particularly inopportune moment
nal corruption, as in envelopes of standards and higher prices than the billions that European coun- for Orban, as he spent lavishly — Foreign Affairs.
cash changing hands under the ta- others. To cover his flanks with tries are still paying  Russia  for oil in the run-up to the election and
the European Union, Orban  has and gas, thereby financing Putin’s will now have to impose austerity *About the writer: Jan-Werner
also been busy buying weapons on his country. (Though wheth- Müller teaches at Princeton Uni-
from Germany and allowing Ger- er restrictions   will go through in versity in the United States. He is
the end will depend on getting the the author of Democracy Rules.
support of a qualified majority of

From page 40 By-elections: A case of authoritarian the respondents noted the relationship
Therefore, CCC is increasing its resilience or democratic resistance? encourages them whilst 14% said they
winning margin in Bulawayo from the by 9% from 29% in 2018 to 38% in PF is least affected as indicated by a that are not in line with its interests. do not know.
2018 MDC-Alliance baseline. There 2022. 21% decrease from its previous total • 47% of the key informants have
was a 75% decline in voter turnout in votes. • 55% of the respondents said the
Bulawayo between the 2018 and 2022 • Zanu PF is decreasing the opposi- Masvingo province hope in the power of the vote to re- military involvement in electoral pro-
elections. Both parties were affected tion’s winning margin in this province. place a president whereas 39% of the cesses has produced timid voters and/
by poor voter turnout in Bulawayo in • The CCC party had a reduced per- respondents doubted the power of their or tutelary votes whereas 32% of the re-
equal measure in terms of the 2018 and • A 60% decline in voter turnout formance as revealed by a decrease of vote to elect a president of their choice spondents stated that free choice votes
2022 elections as shown by a 65% de- was recorded in Manicaland during the 2% (15% in 2018 to 13% in 2022) as if such choice is not the military choice. are still produced despite military in-
cline. 2022 by-elections. Be that as it may, compared to Zanu PF’s improved per- volvement in electoral processes.
• For both Zanu PF and CCC, 65% the CCC party suffered a 61% decrease formance of an additional 7% from its • 68% of the respondents doubt the
of people who voted for the parties in from the previous MDC-Alliance votes previous election score (78% in 2018 possibility of a new government with- • 64% of the respondents said the
Bulawayo did not vote in the 2022 as compared to Zanu PF’s 46% decrease to 85% in 2022). out getting support from the military electoral system cannot deliver a result
by-elections. from 2018 votes in the same areas. whereas only 25% of the interviewees that is against the interests of the mil-
Mashonaland East province • Zanu PF is increasing its winning highlighted that a new government can itary/security sector. This is in contrast
• Zanu PF improved by a greater • Overall, the opposition has under- margin in this province. assume power in Zimbabwe without to 28% of the respondents who noted
proportion than CCC as it gained 13% performed in terms of voter mobilisa- the military playing an assistant role. that the electoral system is capable of
from 53% in 2018 to 66% in 2022; tion compared to Zanu PF in this re- • There was a 52% decline in voter delivering a result that is against the
CCC only improved by 3% from 29% gion. turnout in Masvingo. Poor voter turn- • Research findings also revealed interests of the military/security sector.
in 2018 to 32% in 2022. This means Matabeleland North province out in Masvingo province affected the that most respondents believe that the
Zanu PF is widening its winning mar- CCC party more than Zanu PF. relationship between Zanu PF and the • 74% of the key informants of this
gin in Mashonaland East. • Zanu PF improved its performance military is characterised by conflation study said the military is interested in
• A 48% decline in voter turnout in Matabeleland North during the • For CCC, there was a 57% decline (45%) and capture (29%) than inde- keeping Zanu PF in power whilst 12%
was recorded in Mashonaland East 2022 by-elections from the 2018 elec- in total votes whereas Zanu PF had a pendence (19%). said the military is not interested in
province. The CCC party suffered tions as shown by a 10% increase from 48% decline in total votes. This means keeping the party in power. 
a 44% decline from MDC-Alliance 37% in 2018 to 47% in 2022 whereas 48% of people who voted for Zanu PF • The relationship between the mil-
2018 votes compared to a 34% decline CCC remained static (48%) between in 2018 either did not vote or voted itary and opposition in Zimbabwe is • 79% of research participants per-
experienced by Zanu PF. This means 2018 and 2022. for opponents in 2022 as compared to characterised by intolerance and/or an- ceived that the Zimbabwe Electoral
44% of opposition supporters who 57% of CCC. imosity as highlighted by 69% of the Commission (Zec) is linked to Zanu
voted in 2018 did not vote or voted for • The winning margin of the opposi- Citizens’ perceptions on key transi- respondents whereas 8% perceived a PF compared to 16% who said Zec and
the opponent in 2022 as compared to tion in these areas is decreasing. tion factors in Zimbabwe tolerant and friendly relationship be- Zanu PF have no links in their lines of
Zanu PF’s 34%. tween the two players. Another 19% of duty.
Manicaland province • There was a 37% decline in voter • 64% of the respondents see the the interviewees indicated that the mil-
• The CCC party in Manicaland turnout in Matabeleland North be- military as partisan as compared to itary is independent in its interactions • 55% of the respondents believe
had a reduced performance in the 2022 tween the 2018 and 2022 elections. 19% who think the military is non-par- with the opposition. that Zec is controlled by the military.
by-elections as shown by a 2% decrease tisan. On the other hand, 32% of the respon-
(61% in 2018 to 59% in 2022) where- • Although poor voter turnout af- • 58% of the respondents said the dents highlighted that Zec is indepen-
as Zanu PF improved its performance fects all the contesting parties in Ma- • The military being a decisive power relationship between the military and dent of the military.
tabeleland North, CCC is affected the bloc is feared for wielding powers capa- Zanu PF deters them from freely voting
most as shown by a 38% decline from ble of overturning electoral outcomes for their preferred leaders in the 2023 • 88% of the respondents noted that
the previous MDC-Alliance total votes elections, on the other hand, 28% of there is no good relationship between
in 2018. In the same province, Zanu Zec and opposition parties whereas 8%
of the interviewed respondents believe
there is a good relationship between
these two institutions.

– Zimbabwe Democracy Institute.

NewsHawks Reframing Issues Page 43

Issue 77, 22 April 2022

As Covid hit Kenya and South Africa, race
and class fears were amplified on Twitter

JOHN MWAURA/UFUOMA AKPOJIVI privileged class can be read as fatigue Imagine dying from an overseas in panic buying, Kenyan tweeters sive and generally show an unfavour-
with the existing post-colonial issues. disease when you don’t even own a regarded those who participated in able attitude towards certain groups.
IT is common in both Kenya and Racialised politics passport, let alone being in a plane or panic buying as a selfish and ignorant As one Kenyan Twitter user put it:
South Africa for there to be everyday Power and the racialised politics of ship, except for a relationship. Watse- middle class:
conversations about inequalities in the pandemic dominated the Twitter ba these travellers di na le mahlale BREAKING NEWS! We need 2
power relations and between “races”, conversations in both countries. At (You know, these travellers are silly) The only people who have pan- Kikuyu’s to go to China waibe dawa
classes and ethnic groups. the beginning of 2020, media reports #COVID19SouthAfrica icked and started panic buying of ya coronavirus, 2 Kalenjins watoroke
Kenya, in East Africa, and South Afri- had indicated that black communi- goods are the wannabe middle class. nayo mbio, 2 luos warushe mawe in
ca, in southern Africa, share a history ties in the United States were hardest And another, in Kenya: The rest of us live on FAITH. One case kuharibike, 2 maasai waruke
of British colonial divisions. In both hit  by the pandemic due to contin- We can confidently report that day at a time #StayHome #lockdown nayo border, 2 kamba and 3 kisii
countries, social movements and ued institutionalised discrimination. part of China mega loans agree- #COVID19KE for supernatural powers for protec-
protest have sought to address these ment (initially negotiated by Raila as tion and 2 Luyhas wakule evidence
social injustices — like  #FeesMust- The first cases of Covid-19 were PM) was to allow illegal infiltration Those who could panic buy had #covid19kenya’
Fall,  #MenAreTrash,  #SabaSa- reported on 5 March and 13 March of Chinese into KE (Kenya), that’s the resources to do so. Those who
baMarchForOurLives,  #OccupyPar- 2020 in South Africa and Kenya, why these despots continue to allow could not afford to, as Twitter users (We need two individuals from the
liamentKE. respectively. These first reports in- coronavirus infected Chinese to en- noted, could only panic: Kikuyu community to go and steal
dicated the virus had been brought ter KE. #UhuruKenyatta #coronavi- medicine from China, two from the
Socio-economic and political di- into both countries by “privileged” rusInkenya" To the selfish assholes black and Kalenjin communities to run with
vides were further exacerbated by the citizens. Classism, privilege and panic buy- white. Stop hoarding stock on retail it, two from the Maasai communi-
global Covid-19 pandemic and the ing shops, just because you can afford to ty to cross the border with it, two
responses of the Kenyan and South The first case of Covid-19 in South When the World Health Organisa- purchase 15 loaves of bread doesn’t from Kamba and Kisii communities
African governments. As countries Africa was a white South African tion (WHO)  declared Covid-19 a mean the rest of us don’t want to to use their supernatural powers for
went into lockdowns, citizens used from KwaZulu-Natal province, who pandemic on 11 March 2020, it led eat. You have clearly demonstrated protection and two from the Luhya
social media platforms to voice their had travelled back from Europe. In to drastic changes in public and so- if there was a deadly epidemic, you’d community to eat the evidence after-
concerns. Kenya, 239 passengers who had ar- cial life. These were accompanied by do the same #COVID19SouthAfrica wards)
rived from China were blamed for perceived and sometimes real short- Ethnicity and othering
During the first weeks of Covid-19 bringing in Covid-19. This resulted ages of resources. There were report- Propagation of ‘othering’ in Twitter And a South African tweet read:
cases reported in Kenya and South in a strong resentment in South Af- ed cases of long queues in the stores conversations was also noticed in Worry yam is watching all those
Africa, there were hundreds of thou- rica towards the white communities, with individuals stockpiling essential both South Africa and Kenya. Apart rich South Africans (majority white)
sands of tweets posted by distressed and a resentment towards the Chi- goods. from the resentment towards white who bought more than they needed
citizens. Our study of these tweets nese in Kenya. Class issues dominated the con- and Chinese communities,  ethnic throw these away once the outbreak
was undertaken in order to see what versations on  panic buying  in both stereotyping  was evident in online is brought under control on the
kind of conversations were happen- Racial conversations worsened Kenya and South Africa. While priv- conversations. These were linked to back of many preventable deaths.
ing — and if they reinforced postco- when some Kenyans and South Af- ileged white communities in South the ability to survive the pandemic #COVID19SouthAfrica"
lonial social inequalities in the coun- ricans regarded Covid-19 as a foreign Africa were accused of participating due to behaviours associated with
tries. disease. As one South African tweet certain ethnic stereotypes. Ethnic The colonial lives on in the postco-
stated: stereotypes and prejudices are divi- lonial
Over 129 541 tweets were collect- These Twitter conversations in the
ed from Kenya and 237 528 from first few weeks of the Covid-19 pan-
South Africa between 5 March and demic in Kenya and South Africa
31 March 2020 using  Twitter Ar- reveal a range of unique experiences
chiving Google Sheet  (TAGS). The and biases shaped by postcolonial
tweets, from ordinary citizens, were legacies of power. They represent
then grouped into themes and the ongoing racial and ethnic issues that
major themes were used to produce are highly contested and deep-seated
a research report. in the historical antecedents of both
countries.
Our  study  revealed several issues
raised. These were divided into four In building a post-Covid society,
themes: racialised politics, classism, government policies must systemati-
privilege and panic buying, and cally address these postcolonial issues
ethnicity and  "othering"  (or preju- and legacies of power and racial and
dice against certain groups). These ethnic identity in order to shape a so-
themes, outlined below, echoed is- ciety that is responsive to the needs
sues of discrimination that have of all its citizens.
characterised post-colonial states.
— The Conversation.
In short, we found that the first
recorded cases of Covid-19 in South *About the writers: Job Mwaura
Africa and Kenya in March 2020 is a post-doctoral research fellow
spawned a maelstrom of tweets re- at the University of Cape Town in
flecting fears and anxieties about the South Africa. Ufuoma Akpojivi is
virus, as well as other deeply rooted associate professor in media stud-
prejudices. The rage towards white ies at the University of the Witwa-
communities and the powerful and tersrand in South Africa.

Page 44 Reframing Issues NewsHawks

Issue 77, 22 April 2022

Tax simplification There is a better way the long, expensive, and arduous
would level the play- to avoid tax avoidance process of building capacity, Af-
ing field between tax rican governments can quickly
authorities and mul- . implement legal reforms that re-
tinationals by relying duce the need for administrative
on easily verifiable profits are taxable in Guinea and But in reality, it is unlikely that accumulation of reported prof- capacity.
standards. what is taxable in Switzerland? overstretched officials sorting its in the tax haven and reported
through thousands of corporate losses in the country where the For example, Zambia has  ad-
TIM HIRSCHEL-BURNS The international corporate tax transactions would notice the resources come from. Similarly, opted  what is called “the Sixth
system’s unsatisfactory answer is undervalued transfer price. And, corporations can declare intel- Method”. Rather than allowing
WITH one of highest rates the “arm’s length principle”. Un- even if they did, the corporation lectual property as belonging to corporations to report transfer
of  poverty  in the world, Sierra der this rule, the transfer price could cite several reasons to justi- a subsidiary in a tax haven and prices based on a counterfactual
Leone may wish it could magical- – meaning the price of the trans- fy the price they set. The market then charge other subsidiaries transaction, this approach simply
ly acquire a source of wealth to action between affiliates of the transaction never actually hap- high royalties for its use, further requires them to use the price of
relieve its struggles. Yet, it already same company – is supposed to pened – minerals just moved be- distributing the multinational minerals listed on international
has one: it is one of the world’s match the price that would have tween different parts of the same corporation’s taxable profits to commodity markets.
largest producers of diamonds been used in a normal market company – so it is extremely dif- low- or no-tax jurisdictions.
and other minerals. transaction. ficult to refute the reported trans- How to tackle tax avoidance African governments can also
fer price. Empirical data confirms In response to mass corporate increase their use of mineral roy-
The problem is that much of The problem is that it is up to that huge amounts of abusive tax avoidance in Africa, interna- alties. Unlike profit-based corpo-
the benefits end up in tax ha- the multinationals to determine transfer pricing are going unde- tional tax experts often call for rate income tax, which encourag-
vens. For example,  leaked doc- that figure, leaving room for tected. For example, in a  2013 two proposed solutions. First, es companies to report artificial
uments  revealed that one of the them to manipulate the system survey, three-quarters of African they point to the recent OECD- losses to reduce their tax bills,
country’s largest diamond mines to reduce their tax bills. A com- tax authorities reported that they led global corporate tax reforms. royalties are fees based only on
undervalued sales to its subsid- pany transferring assets from its had not conducted  any  transfer These policies constitute margin- production and revenues. Anoth-
iaries in tax havens by as much Guinean to Swiss subsidiaries, pricing audits in the previous al progress, but they  favour  rich er option is to set hard limits on
as 35%, illicitly reducing revenue for instance, can easily input a year at all. countries and are too limited to interest deductions. For example,
that Sierra Leone could have used transfer price of US$75 000 even address most tax avoidance in Af- South Africa does not allow com-
for schools, hospitals, and roads. if the normal market price would Officials also struggle to rica’s natural resource sector. Sec- panies to deduct interest pay-
In total, the estimated amount of have been US$100 000. With counter other ways corporations ond, they call for building the ca- ments to foreign-based compa-
revenue Sierra Leone loses to tax the stroke of a pen, US$25 000 shift profits to tax havens. For pacity of African tax authorities. nies exceeding 40% of turnover
abuse is nearly 1.5 times its entire in profits appear in low-tax Swit- instance, subsidiaries in tax ha- from taxable profits. This reform
health budget. zerland and are no longer taxable vens offer loans to subsidiaries Tax simplification provides a prevents companies from issuing
in Guinea. based in Africa at artificially high better alternative. In contrast to excessive loans between subsid-
Many African countries are in interest rates. This leads to the iaries in a straightforward way
a similar position: resource-rich In theory, tax authorities could that doesn’t require tax author-
and money-poor. The conven- challenge this transfer price. ities to compare each loan to a
tional wisdom is that they should hypothetical market transaction.
fight corporate tax avoidance
by performing their best imita- By simplifying tax administra-
tion of tax systems in the Global tion, these reforms provide far
North. But this fight takes place less room for the armies of ac-
on a profoundly unequal playing countants and lawyers working
field. On one side, there are typi- for multinational corporations to
cally under-resourced and under- manipulate complexity to their
trained national tax authorities. advantage. These reforms can re-
On the other, there are multi- duce flexibility and nuance, and
national companies employing in some cases they could produce
teams of top lawyers and accoun- moderate disincentives to invest-
tants. Moreover, rich countries ment. But as compared to a sta-
suffer significant losses to corpo- tus quo where foreign investment
rate tax avoidance too. often produces little benefit to
the populations of African coun-
Fortunately, there is a better al- tries, these tradeoffs are worth it.
ternative: tax simplification. As I
argue in a recent paper in the Yale Ensuring that the people bene-
Journal of International Law, Af- fit from their resource wealth was
rican governments can fight tax a  core demand  of post-colonial
avoidance and level the playing African leaders, but even now
field between their tax authorities many of the benefits of the conti-
and multinational corporations nent’s natural resources end up in
by adopting rules that reduce ad- the Global North.
ministrative burdens and rely on
easily verifiable standards. With the pandemic putting
governments under fiscal strain
A tax system ripe for exploita- and commodity prices rapidly
tion rising, now is as good a time as
The international corporate tax any to crack down on corporate
system relies on a fiction. It as- tax avoidance.
sumes that trade happens be-
tween companies, but most Although the reforms may take
global trade  takes place  between place in legal codes and bureau-
affiliates of the same multina- cratic procedures, the effects will
tional. This poses a problem for be felt by the citizens of African
taxation. If a Guinean company countries who for too long have
sells minerals to a separate Swiss been robbed of the prosperity
company for US$100 000, the they deserve.
tax implications are clear. But if
the minerals are moving between — African Arguments.
Guinean and Swiss subsidiaries
of the same company, how do *About the writer: Tim
tax authorities determine what Hirschel-Burns is a Yale Law
School student and co-founder
of Law Students for Climate Ac-
countability. He focuses on pol-
icies impacting global poverty
and inequality, human rights,
and climate change.

NewsHawks Reframing Issues Page 45

Issue 77, 22 April 2022

SA floods wreaked havoc because people
are forced to live in disaster prone areas

HOPE MAGIDIMISHA-CHIPUNGU

RAPID urbanisation and govern- that are established in low lying been flooding in other parts of the and insurance schemes economic and environmental re-
ment failure  to deliver adequate areas and close to streams were country. In November 2021 the • educating people, especially silience.
housing  are among the driving the worst affected, along with city of George was hit by floods.
forces behind the proliferation those established on steep slopes. In January  2022  Ladysmith was in low-lying areas, about the fact Building resilience also in-
of informal settlements across Areas affected have included hit by flooding while Gauteng that they are prone to flooding volves having real mitigation
South African cities and towns. Prospecton, Isipingo and Ntu- province was affected in Febru- measures in place.
zuma. ary 2022. • law enforcement to prevent
These informal settlements are people from building in flood Addressing complex urban
notorious for their perilous and Now and again urban planners Yet Ethekwini is still ill pre- risk areas. challenges in an integrated way
unhealthy conditions. and researchers have sounded an pared to deal with flooding, es- means developing solutions not
alarm  about the dangers posed pecially in poor communities. As These strategies have been in only for one challenge, but also
This has been sharply illustrat- by occupying the flood lines, be if poverty were not enough of a used in a number of South Asian for urban poverty,  inequality,
ed in recent flooding in Ethe- it in formal or informal settle- burden, poor people are bearing countries. climate change and urban eco-
kwini (Durban), the port city in ments. the heaviest brunt of flooding, systems. The goal is to build live-
KwaZulu-Natal province, and worsening their vulnerable posi- But the more sustainable solu- lihoods that are both sustainable
its surrounding communities. However, when it comes to tion in the city. tions can be found in proper ur- and resilient.
The catastrophic flooding has controlling the proliferation of ban planning.
claimed  hundreds of lives  and informal settlements in disaster Short of relocating communi- Climate change and urban This requires an approach that
countless families have been dis- prone areas, law enforcement has ties to safer areas, the city could, planning includes looking at all the haz-
placed from their homes, wors- been piecemeal. and should, have taken other Urban planners have a key role ards that could face an urban
ening the dire housing problem Lessons that haven’t been learnt steps by building capacity for to play in turning the grim sit- area, which sectors need to be
many were already in. Ethekwini municipality has not low-income and informal com- uation around.  They might not involved and which stakeholders
applied lessons from previous in- munities living in high risk areas. directly solve the root causes need to be roped in to ensure a
It is difficult to provide ade- cidents of flooding – in the region of climate change or sea level solid foundation is put in place
quate housing, primarily because as well as more broadly across the Steps should have included: rise and flooding. But they can for building resilience.
there is not enough  suitable country – into its planning. The • formal flood warning contribute a great deal to urban
land in the right places. The un- area experienced flooding in July • systems and evacuation pro- resilience and fortification mea- — The Conversation.
availability of suitable land for 2016, May 2017, October 2017, grammes sures to mitigate the impacts of
adequate housing is due to stunt- March  2019, April  2019  and • land use controls on flood- flooding. *About the writer: Hope Ma-
ed progress in urban land reform. November  2019.  There has also prone sites gidimisha-Chipungu is associ-
This, in turn, is crippling the ca- • building regulations to pre- Well-designed urban spaces ate professor at the University
pacity of local governments to vent incursion of floodwaters and interventions that are evi- of KwaZulu-Natal in South
provide adequate housing in ar- dence-based can improve social, Africa.
eas that are not prone to disaster.

The result is that  a quarter  of
South Africa’s urban population
is living in informal settlements.
These are built wherever people
find open spaces that are nearer
to economic opportunities. They
lack basic amenities and infra-
structure, including proper roads
and storm water drainage sys-
tems. This leaves their residents
most vulnerable to the effects
of climate change and changing
weather patterns, such as floods.

Recently, new informal settle-
ment have been developing on
risky and environmentally sensi-
tive areas that are prone to flood-
ing and landslides, among other
dangers.

Ethekwini is a case in point.
The city’s geographic informa-
tion system shows that some of
the vacant land being encroached
on by informal settlements falls
under the 50- or 100-year flood
lines. Flood lines physically de-
marcate areas that could flood
within a certain time interval.
The time interval is comput-
ed on average qualification and
could be 50 or 100 years. Living
within areas demarcated as flood
lines is not only illegal but also
very dangerous.

Flood lines are mainly demar-
cated along rivers and streams.
They cover the river flood plains.
In the recent torrential storm,
streams were flooded, including
their flood plains. Communities

Page 46 Reframing Issues NewsHawks

FRANCIS FUKUYAMA A country of their own Issue 77, 22 April 2022

LIBERALISM is in peril. The fun- ... Liberalism needs the nation support for abortion and same-sex
damentals of liberal societies are tol- marriage. Similarly, religious con-
erance of difference, respect for in- Irene Newton, President of Niagara's Ukrainian-Canadian Congress during a rally in Niagara Falls servatives often regard themselves as
dividual rights, and the rule of law, patriots; this is certainly true for the
and all are under threat as the world will invariably be more fractious, Universal Declaration of Human tionalists, such as Hungarian Prime American evangelicals who formed
suffers what can be called a demo- more tumultuous, and more violent. Rights, “All human beings are born Minister Viktor Orban, who has the core of Trump’s “Make America
cratic recession or even a depression. free and equal in dignity and rights”; defined Hungarian national identity Great Again” movement.
That is why it is all the more further, “Everyone is entitled to all as being based on Magyar ethnici-
According to Freedom House, important for liberals not to give the rights and freedoms set forth ty. Other nationalists, such as the The substantive conservative cri-
political rights and civil liberties up on  the idea of the nation. They in this Declaration, without dis- Israeli scholar Yoram Hazony, have tique of liberalism — that liberal
around the world have fallen each should recognize that in truth, tinction of any kind, such as race, sought to revise twentieth-century societies provide no strong common
year for the last 16 years. Liberal- nothing makes the universalism colour, sex, language, religion, po- ethnonationalism by arguing that moral core around which communi-
ism’s decline is evident in the grow- of liberalism incompatible with a litical or other opinion, national or nations constitute coherent cultural ty can be built — is true enough.
ing strength of autocracies such as world of nation-states. National social origin, property, birth or oth- units that allow their members to This is indeed a feature of liberalism,
China and Russia, the erosion of identity is malleable, and it can be er status.” Liberals are theoretically share thick traditions of food, hol- not a bug. The question for conser-
liberal — or nominally liberal — shaped to reflect liberal aspirations concerned with violations of human idays, language, and the like. The vatives is whether there is a realistic
institutions in countries such as and to instill a sense of community rights no matter where in the world American conservative thinker Pat- way to turn back the clock and re-
Hungary and Turkey, and the back- and purpose among a broad public. they occur. Many liberals dislike the rick Deneen has asserted that liber- impose a thicker moral order. Some
sliding of liberal democracies such particularistic attachments of na- alism constitutes a form of anticul- U.S. conservatives hope to return
as India and the United States. For proof of the abiding impor- tionalists and imagine themselves to ture that has dissolved all forms of to an imagined time when virtually
tance of national identity, look no be “citizens of the world.” preliberal culture, using the power everyone in the United States was
In each of these cases, nationalism further than the trouble Russia of the state to insert itself into and Christian. But modern societies are
has powered the rise of illiberalism. has run into in attacking Ukraine. The claim of universalism can control every aspect of private life. far more diverse religiously today
Illiberal leaders, their parties, and Russian President Vladimir Putin be hard to reconcile with the divi- than at the time of Europe’s reli-
their allies have harnessed nationalist claimed that Ukraine did not have sion of the world into nation-states. The liberal claim of universal- gious wars in the sixteenth century.
rhetoric in seeking greater control of an identity separate from that of There is no clear liberal theory, for ism can be hard to reconcile with a The idea of restoring a shared moral
their societies. They denounce their Russia and that the country would instance, on how to draw national world divided into nation-states. tradition defined by religious belief
opponents as out-of-touch elites, ef- collapse immediately once his in- boundaries, a deficit that has led to is a nonstarter. Leaders who hope to
fete cosmopolitans, and globalists. vasion began. Instead, Ukraine has intraliberal conflicts over the sepa- Significantly, Deneen and other effect this kind of restoration, such
They claim to be the authentic rep- resisted Russia tenaciously precisely ratism of regions such as Catalonia, conservatives have broken with eco- as Narendra Modi, India’s Hindu
resentatives of their country and its because its citizens are loyal to the Quebec, and Scotland and disagree- nomic neoliberals and have been vo- nationalist prime minister, are in-
true guardians. Sometimes, illiberal idea of an independent, liberal dem- ments over the proper treatment of cal in blaming market capitalism for viting oppression and communal
politicians merely caricature their ocratic Ukraine and do not want immigrants and refugees. Populists, eroding the values of family, com- violence. Modi knows this all too
liberal counterparts as ineffectual to live in a corrupt dictatorship such as former U.S. President Don- munity, and tradition. As a result, well: he was chief minister of the
and removed from the lives of the imposed from without. With their ald Trump, have channeled that ten- the twentieth-century categories western state of Gujarat when it was
people they presume to represent. bravery, they have made clear that sion between the universalist aspira- that defined the political left and racked by communal riots in 2002
Often, however, they describe their citizens are willing to die for liberal tions of liberalism and the narrower right in terms of economic ideology that left thousands dead, mostly
liberal rivals not simply as political ideals, but only when those ideals claims of nationalism to powerful do not fit the present reality neatly, Muslims. Since 2014, when Modi
adversaries but as something more are embedded in a country they can effect. with right-wing groups being will- became prime minister, he and his
sinister: enemies of the people. call their own. ing to countenance the use of state allies have sought to tie Indian na-
Liberalism's spiritual vacuum Nationalists complain that lib- power to regulate both social life tional identity to the masts of Hin-
The very nature of liberalism Liberal societies struggle to present eralism has dissolved the bonds of and the economy. duism and the Hindi language, a sea
makes it susceptible to this line of a positive vision of national identi- national community and replaced change from the secular pluralism of
attack. The most fundamental prin- ty to their citizens. The theory be- them with a global cosmopolitan- There is considerable overlap India’s liberal founders.
ciple enshrined in liberalism is one hind liberalism has great difficulties ism that cares about people in dis- between nationalists and religious The inescapable state
of tolerance: the state does not pre- drawing clear boundaries around tant countries as much as it cares for conservatives. Among the traditions Illiberal forces around the world will
scribe beliefs, identities, or any oth- communities and explaining what is fellow citizens. Nineteenth-century that contemporary nationalists want continue to use appeals to national-
er kind of dogma. Ever since its ten- owed to people inside and outside nationalists based national identity to preserve are religious ones; thus, ism as a powerful electoral weapon.
tative emergence in the seventeenth those boundaries. This is because on biology and believed that nation- the Law and Justice party in Poland Liberals may be tempted to dismiss
century as an organising principle the theory is built on top of a claim al communities were rooted in com- has been closely aligned with the this rhetoric as jingoistic and crude.
for politics, liberalism deliberately of universalism. As asserted in the mon ancestry. This continues to be a Polish Catholic Church and has tak- But they should not cede the nation
lowered the sights of politics to aim theme for certain contemporary na- en on many of the latter’s cultural to their opponents.
not at “the good life” as defined by complaints about liberal Europe’s
a particular religion, moral doctrine, Liberalism, with its universalist
or cultural tradition but at the pres- pretensions, may sit uneasily along-
ervation of life itself under condi- side seemingly parochial national-
tions in which populations cannot ism, but the two can be reconciled.
agree on what the good life is. This The goals of liberalism are entirely
agnostic nature creates a spiritual compatible with a world divided
vacuum, as individuals go their own into nation-states. All societies need
ways and experience only a thin to make use of force, both to pre-
sense of community. Liberal politi- serve internal order and to protect
cal orders do require shared values, themselves from external enemies. A
such as tolerance, compromise, and liberal society does this by creating a
deliberation, but these do not foster powerful state but then constraining
the strong emotional bonds found the state’s power under the rule of
in tightly knit religious and eth- law. The state’s power is based on a
nonationalist communities. Indeed, social contract among autonomous
liberal societies have often encour- individuals who agree to give up
aged the aimless pursuit of material some of their rights to do as they
self-gratification. please in return for the state’s pro-
tection. It is legitimised by both the
Liberalism’s most important sell- common acceptance of the law and,
ing point remains the pragmatic one if it is a liberal democracy, popular
that has existed for centuries: its elections.
ability to manage diversity in plural-
istic societies. Yet there is a limit to Liberal rights are meaningless if
the kinds of diversity that liberal so- they cannot be enforced by a state,
cieties can handle. If enough people which, according to the German so-
reject liberal principles themselves ciologist Max Weber’s famous defi-
and seek to restrict the fundamental nition, is a legitimate monopoly of
rights of others, or if citizens resort force over a defined territory. The
to violence to get their way, then lib- territorial jurisdiction of a state nec-
eralism alone cannot maintain po- essarily corresponds to the area oc-
litical order. And if diverse societies cupied by the group of individuals
move away from liberal principles who signed on to the social contract.
and try to base their national iden-
tities on race, ethnicity, religion, or People living outside that ju-
some other, different substantive risdiction must have their rights
vision of the good life, they invite respected, but not necessarily en-
a return to potentially bloody con- forced, by that state.
flict. A world full of such countries
States with a delimited territorial
jurisdiction therefore remain critical

NewsHawks Reframing Issues Page 47

Issue 77, 22 April 2022

political actors, because they are the mon history and cultural identity nature of human sociability. People tional culture is highly unrealistic. It tions than does the United States,
only ones able to exercise a legiti- that do not exist at the global lev- feel the strongest bonds of affection is possible to organise a form of lib- with little of the United States’ po-
mate use of force. In today’s global- el. International institutions such for those closest to them, such as eral politics around several cultural larisation and white backlash.
ised world, power is employed by a as the International Court of Jus- friends and family; as the circle of units; India, for example, recognizes
wide variety of bodies, from multi- tice and the International Criminal acquaintance widens, their sense of multiple national languages and has Nonetheless, the difficulty of
national corporations to nonprofit Court continue to rely on states to obligation inevitably attenuates. As in the past permitted its states to forging a common identity in sharp-
groups to terrorist organisations to enforce their writs. human societies have grown larger set their own policies with regard to ly divided democracies should not
supranational bodies such as the Eu- and more complex over the centu- education and legal systems. Feder- be underestimated. Most contem-
ropean Union and the United Na- The German philosopher Imman- ries, the boundaries of solidarity alism and the concomitant devolu- porary liberal societies were built
tions. The need for international co- uel Kant imagined a condition of have expanded dramatically from tion of powers to subnational units on top of historical nations whose
operation in addressing issues such “perpetual peace” in which a world families and villages and tribes to are often necessary in such diverse understandings of national identity
as global warming and pandemics populated by liberal states would entire countries. But few people love countries. Power can be formally had been forged through illiberal
has never been more evident. But regulate international relations humanity as a whole. For most peo- allocated to different groups de- methods. France, Germany, Japan,
it remains the case that one par- through law rather than by resort- ple around the world, the country fined by their cultural identity in a and South Korea were all nations
ticular form of power, the ability ing to violence. Putin’s invasion of remains the largest unit of solidar- structure that political scientists call before they became liberal democra-
to enforce rules through the threat Ukraine has demonstrated, unfor- ity to which they feel an instinctive “consociationalism.” Although this cies; the United States, as many have
or the actual use of force, remains tunately, that the world has not yet loyalty. Indeed, that loyalty becomes has worked reasonably well in the noted, was a state before it became
under the control of nation-states. reached this post-historical moment a critical underpinning of the state’s Netherlands, the practice has been a nation. The process of defining the
Neither the European Union nor and that raw military power remains legitimacy and thus its ability to disastrous in places such as Bosnia, American nation in liberal political
the International Air Transport As- the ultimate guarantor of peace for govern. In certain societies, a weak Iraq, and Lebanon, where identi- terms has been long, arduous, and
sociation deploys its own police or liberal countries. The nation-state national identity can have disastrous ty groups see themselves locked in periodically violent, and even today
army to enforce the rules it sets. is therefore unlikely to disappear as consequences, as is evident in some a zero-sum struggle. In societies in that process is being challenged by
Such organisations still depend on the crucial actor in global politics. struggling developing countries, which cultural groups have not yet people on both the left and the right
the coercive capacity of the coun- The good life such as Myanmar and Nigeria, and hardened into self-regarding units, with sharply competing narratives
tries that empowered them. To be The conservative critique of liberal- in some failed states, such as Af- it is therefore much better to deal about the country’s origins.
sure, there is today a large body of ism contains, at its core, a reasonable ghanistan, Libya, and Syria. with citizens as individuals rather
international law that in many do- skepticism of the liberal emphasis The case for liberal nationalism than as members of identity groups. Liberalism would be in trouble if
mains displaces national-level law; on individual autonomy. Liberal so- This argument may seem similar to people saw it as nothing more than a
think, for example, of the Europe- cieties assume an equality of human ones made by Hazony, the conser- On the other hand, there are mechanism for peacefully managing
an Union’s  acquis communautaire, dignity, a dignity that is rooted in an vative Israeli scholar, in his 2018 other aspects of national identi- diversity, without a broader sense of
which serves as a kind of common individual’s ability to make choices. book,  The Virtue of Nationalism, ty that can be adopted voluntarily national purpose. People who have
law to regulate commerce and set- For that reason, they are dedicated in which he advocates a global or- and therefore shared more broadly, experienced violence, war, and dic-
tle disputes. But in the end, inter- to protecting that autonomy as a der based on the sovereignty of na- such as literary traditions, histori- tatorship generally long to live in a
national law continues to rely on matter of basic rights. But although tion-states. He makes an important cal narratives, and language, food, liberal society, as Europeans did in
national-level enforcement. When autonomy is a fundamental liberal point in warning against the ten- and sports. Catalonia, Quebec, and the period after 1945. But as peo-
EU member states disagree on im- value, it is not the sole human good dency of liberal countries, such as Scotland are all regions with distinct ple get used to a peaceful life under
portant matters of policy, as they that automatically trumps all other the United States, to go too far in historical and cultural traditions, a liberal regime, they tend to take
did during the euro crisis of 2010 visions of the good life. seeking to remake the rest of the and they all include nationalist par- that peace and order for granted
and the migrant crisis of 2015, the world in their own image. But he is tisans seeking complete separation and start longing for a politics that
outcome is decided not by Europe- The realm of what is accepted wrong in assuming that the existing from the country to which they are will direct them to higher ends. In
an law but by the relative power of as autonomy has steadily expand- countries are clearly demarcated cul- linked. There is little doubt that 1914, Europe had been largely free
the member states. Ultimate pow- ed over time, broadening from the tural units and that a peaceful glob- these regions would continue to be of devastating conflict for nearly a
er, in other words, continues to be choice to obey rules within an exist- al order can be built by accepting liberal societies respecting individu- century, and masses of people were
the province of nation-states, which ing moral framework to making up them as they are. Today’s countries al rights were they to separate, just happy to march off to war despite
means that the control of power at those rules for oneself. But respect are social constructions that are the as the Czech Republic and Slovakia the enormous material progress that
this level remains critical. for autonomy was meant to man- byproducts of historical struggles did after they became separate coun- had occurred in the interim.
age and moderate the competition that often involved conquest, vio- tries in 1993.
There is thus no necessary con- of deeply held beliefs, not to dis- lence, forced assimilation, and the The world has perhaps arrived at
tradiction between liberal universal- place those beliefs in their entirety. deliberate manipulation of cultural National identity represents obvi- a similar point in human history: it
ism and the need for nation-states. Not every human being thinks that symbols. There are better and worse ous dangers but also an opportunity. has been free from large-scale inter-
Although the normative value of maximising his or her personal au- forms of national identity, and soci- It is a social construct, and it can be state war for three-quarters of a cen-
human rights may be universal, en- tonomy is the most important goal eties can exercise agency in choosing shaped to support, rather than un- tury and has, in the meantime, seen
forcement power is not; it is a scarce of life or that disrupting every exist- among them. dermine, liberal values. Many coun- a massive increase in global prosper-
resource that is necessarily applied ing form of authority is necessarily a tries have historically been molded ity that has produced equally mas-
in a territorially delimited way. A good thing. In particular, if national identity out of diverse populations that feel sive social change. The European
liberal state is perfectly justified in is based on fixed characteristics such a strong sense of community based Union was created as an antidote to
granting different levels of rights to Many people are happy to limit as  race, ethnicity, or religious heri- on political principles or ideals rath- the nationalism that had led to the
citizens and noncitizens, because it their freedom of choice by accepting tage, then it becomes a potentially er than deterministic group cate- world wars and in that respect has
does not have the resources or the religious and moral frameworks that exclusionary category that violates gories. Australia, Canada, France, been successful beyond all hopes.
writ to protect rights universally. All connect them with other people or the liberal principle of equal dignity. India, and the United States are But Russia’s invasion of Ukraine
people within the state’s territory are by living within inherited cultural Although there is no necessary con- all countries that in recent decades augurs more disarray and violence
due the equal protection of the law, traditions. The US constitution’s tradiction between the need for na- have sought to construct national ahead.
but only citizens are full participants first amendment was meant to pro- tional identity and liberal universal- identities based on political princi-
in the social contract, with special tect the free exercise of religion, not ism, there is nonetheless a powerful ples rather than race, ethnicity, or At this juncture, two very differ-
rights and duties, in particular the to protect citizens from religion. potential point of tension between religion. The United States has gone ent futures present themselves. If
right to vote. the two principles. When based on through a long and painful process Putin is successful in undermining
Successful liberal societies have fixed characteristics, national iden- of redefining what it means to be Ukrainian independence and de-
The fact that states remain the lo- their own culture and their own un- tity can turn into aggressive and an American, progressively remov- mocracy, the world will return to
cus of coercive power should inspire derstanding of the good life, even exclusive nationalism, as it did in ing barriers to citizenship based on an era of aggressive and intolerant
caution about proposals to create if that vision may be thinner than Europe during the first part of the class, race, and gender — although nationalism reminiscent of the ear-
new supranational bodies and to those offered by societies bound by twentieth century. this process is still incomplete and ly twentieth century. The United
delegate such power to them. Liber- a single doctrine. They cannot be has experienced many setbacks. States will not be immune from this
al societies have had several hundred neutral with regard to the values dividuals will not be a society at In France, the construction of a trend, as populists such as Trump
years of experience learning how to that are necessary to sustain them- all. national identity began with the aspire to replicate Putin’s authoritar-
constrain power at a national level selves as liberal societies. They need French Revolution’s Declaration ian ways. On the other hand, if Pu-
through rule-of-law and legislative to prioritise public-spiritedness, For this reason, liberal societ- of the Rights of Man and of the tin  leads Russia into a debacle of
institutions and how to balance tolerance, open-mindedness, and ies should not formally recognize Citizen, which established an ide- military and economic failure, the
power so that its use reflects general active engagement in public affairs groups based on fixed identities al of citizenship based on a com- chance remains to relearn the liberal
interests. They have no idea how to if they are to cohere. They need to such as race, ethnicity, or religious mon language and culture. In the lesson that power unconstrained by
create such institutions at a global prize innovation, entrepreneurship, heritage. There are times, of course, mid-twentieth century, Australia law leads to national disaster and to
level, where, for example, a global and risk-taking if they are to pros- when this becomes inevitable, and and Canada were countries with revive the ideals of a free and demo-
court or legislature would be able per economically. A society of in- liberal principles fail to apply. In dominant white-majority popula- cratic world.
to constrain the arbitrary decisions ward-looking individuals interested many parts of the world, ethnic or tions and restrictive laws regarding
of a global executive. The Europe- only in maximising their personal religious groups have occupied the immigration and citizenship, such — Foreign Affairs.
an Union is the product of the most consumption will not be a society same territory for generations and as the notorious “White Australia”
serious effort to do this at a regional at all. have their own thick cultural and policy, which kept out immigrants *About the writer: Francis
level; the result is an awkward sys- linguistic traditions. In the Bal- from Asia. Both, however, recon- Fukuyama is Olivier Nomellini Se-
tem characterised by excessive weak- States are important not just be- kans, the Middle East, South Asia, structed their national identities on nior Fellow at the Freeman Spogli
ness in some domains (fiscal policy, cause they are the locus of legitimate and Southeast Asia, ethnic or reli- nonracial lines after the 1960s and Institute for International Studies
foreign affairs) and excessive power power and the instruments for con- gious identity is de facto an essential opened themselves up to massive at Stanford University in the Unit-
in others (economic regulation). trolling violence.  characteristic for most people, and immigration. Today, both countries ed States and the author of the
Europe at least has a certain com- assimilating them into a broader na- have larger foreign-born popula- forthcoming book  Liberalism and
They are also a singular source of Its Discontents (Farrar, Straus and
community. Liberal universalism Giroux, 2022), from which this es-
on one level flies in the face of the say is adapted.

Page 48 Reframing Issues NewsHawks

Issue 77, 22 April 2022

JONATHAN HAIDT Why past 10 years of American
life have been uniquely stupid
WHAT would it have been like to live
in Babel in the days after its destruc- ...It’s not just a phase became more comfortable sharing
tion? intimate details of their lives with
portrayal of a more cooperative future rebuilt the Tower of Babel. We were apart as they grow. But what is it that strangers and corporations. As I wrote
In the Book of Genesis, we are told thanks to continued technological ad- closer than we had ever been to being holds together large and diverse sec- in a 2019 Atlantic article with Tobias
that the descendants of Noah built a vance. “one people,” and we had effective- ular democracies such as the United Rose-Stockwell, they became more
great city in the land of Shinar. They ly overcome the curse of division by States and India, or, for that matter, adept at putting on performances and
built a tower “with its top in the heav- The early internet of the 1990s, language. For techno-democratic op- modern Britain and France? managing their personal brand — ac-
ens” to “make a name” for themselves. with its chat rooms, message boards, timists, it seemed to be only the be- tivities that might impress others but
God was offended by the hubris of and email, exemplified the Nonze- ginning of what humanity could do. Social scientists have identified at that do not deepen friendships in the
humanity and said: ro thesis, as did the first wave of so- least three major forces that collec- way that a private phone conversation
cial-media platforms, which launched In February 2012, as he prepared to tively bind together successful democ- will.
Look, they are one people, and around 2003. Myspace, Friendster, take Facebook public, Mark Zucker- racies: social capital (extensive social
they have all one language; and this and Facebook made it easy to con- berg reflected on those extraordinary networks with high levels of trust), Once social-media platforms had
is only the beginning of what they nect with friends and strangers to talk times and set forth his plans. “Today, strong institutions, and shared stories. trained users to spend more time
will do; nothing that they propose to about common interests, for free, and our society has reached another tip- Social media has weakened all three. performing and less time connecting,
do will now be impossible for them. at a scale never before imaginable. By ping point,” he wrote in a letter to To see how, we must understand how the stage was set for the major trans-
Come, let us go down, and confuse 2008, Facebook had emerged as the investors. Facebook hoped “to rewire social media changed over time — formation, which began in 2009: the
their language there, so that they will dominant platform, with more than the way people spread and consume and especially in the several years fol- intensification of viral dynamics.
not understand one another’s speech. 100 million monthly users, on its way information.” By giving them “the lowing 2009.
to roughly 3 billion today. In the first power to share,” it would help them Babel is not a story about tribalism.
The text does not say that God de- decade of the new century, social me- to “once again transform many of our In their early incarnations, plat- It’s a story about the fragmentation of
stroyed the tower, but in many popu- dia was widely believed to be a boon core institutions and industries.” forms such as Myspace and Facebook everything.
lar renderings of the story he does, so to democracy. What dictator could were relatively harmless. They allowed
let’s hold that dramatic image in our impose his will on an interconnected In the 10 years since then, Zuck- users to create pages on which to post Before 2009, Facebook had giv-
minds: people wandering amid the citizenry? What regime could build a erberg did exactly what he said he photos, family updates, and links to en users a simple timeline — a nev-
ruins, unable to communicate, con- wall to keep out the internet? would do. He did rewire the way we the mostly static pages of their friends er-ending stream of content generat-
demned to mutual incomprehension. spread and consume information; he and favorite bands. In this way, early ed by their friends and connections,
The high point of techno-demo- did transform our institutions, and he social media can be seen as just an- with the newest posts at the top and
The story of Babel is the best meta- cratic optimism was arguably 2011, a pushed us past the tipping point. It other step in the long progression of the oldest ones at the bottom. This
phor I have found for what happened year that began with the Arab Spring has not worked out as he expected. technological improvements — from was often overwhelming in its vol-
to America in the 2010s, and for the and ended with the global Occupy Things fall apart the Postal Service through the tele- ume, but it was an accurate reflec-
fractured country we now inhabit. movement. That is also when Google Historically, civilisations have relied phone to email and texting — that tion of what others were posting.
Something went terribly wrong, very Translate became available on virtual- on shared blood, gods, and enemies helped people achieve the eternal goal That began to change in 2009, when
suddenly. We are disoriented, unable ly all smartphones, so you could say to counteract the tendency to split of maintaining their social ties. Facebook offered users a way to pub-
to speak the same language or recog- that 2011 was the year that humanity licly “like” posts with the click of a
nize the same truth. We are cut off But gradually, social-media users button. That same year, Twitter in-
from one another and from the past. troduced something even more pow-
erful: the “Retweet” button, which
It has been clear for quite a while allowed users to publicly endorse a
now that red America and blue Amer- post while also sharing it with all of
ica are becoming like two different their followers. Facebook soon copied
countries claiming the same territory, that innovation with its own “Share”
with two different versions of the con- button, which became available to
stitution, economics, and American smartphone users in 2012. “Like” and
history. But Babel is not a story about “Share” buttons quickly became stan-
tribalism; it is a story about the frag- dard features of most other platforms.
mentation of everything. It is about
the shattering of all that had seemed Shortly after its “Like” button be-
solid, the scattering of people who gan to produce data about what best
had been a community. It is a meta- “engaged” its users, Facebook devel-
phor for what is happening not only oped algorithms to bring each user
between red and blue, but within the the content most likely to generate
left and within the right, as well as a “like” or some other interaction,
within universities, companies, pro- eventually including the “share” as
fessional associations, museums, and well. Later research showed that posts
even families. that trigger emotions — especially
anger at out-groups — are the most
Babel is a metaphor for what some likely to be shared.
forms of social media have done to
nearly all of the groups and institu- By 2013, social media had become
tions most important to the country’s a new game, with dynamics unlike
future — and to us as a people. How those in 2008. If you were skillful or
did this happen? And what does it lucky, you might create a post that
portend for American life? would “go viral” and make you “in-
The rise of the modern tower ternet famous” for a few days. If you
There is a direction to history and it blundered, you could find yourself
is toward cooperation at larger scales. buried in hateful comments. Your
We see this trend in biological evo- posts rode to fame or ignominy based
lution, in the series of “major tran- on the clicks of thousands of strang-
sitions” through which multicellular ers, and you in turn contributed
organisms first appeared and then de- thousands of clicks to the game.
veloped new symbiotic relationships.
We see it in cultural evolution too, as This new game encouraged dis-
Robert Wright explained in his 1999 honesty and mob dynamics: Users
book, Nonzero: The Logic of Human were guided not just by their true
Destiny. Wright showed that history preferences but by their past expe-
involves a series of transitions, driv- riences of reward and punishment,
en by rising population density plus and their prediction of how others
new technologies (writing, roads, would react to each new action. One
the printing press) that created new of the engineers at Twitter who had
possibilities for mutually beneficial worked on the “Retweet” button later
trade and learning. Zero-sum con- revealed that he regretted his contri-
flicts — such as the wars of religion bution because it had made Twitter a
that arose as the printing press spread nastier place. As he watched Twitter
heretical ideas across Europe — were mobs forming through the use of the
better thought of as temporary set-
backs, and sometimes even integral to
progress. (Those wars of religion, he
argued, made possible the transition
to modern nation-states with bet-
ter-informed citizens.) President Bill
Clinton praised Nonzero’s optimistic

NewsHawks Reframing Issues Page 49

Issue 77, 22 April 2022

new tool, he thought to himself, “We competent autocracies (China and administrators come into question, ety. In a comment to Vox that recalls widespread adherence.
might have just handed a 4-year-old a the United Arab Emirates) at the top and overreaching laws or curricular the first post-Babel diaspora, he said: The many analysts, including me,
loaded weapon.” of the list, while contentious democ- reforms sometimes follow, dumbing
racies such as the United States, the down education and reducing trust The digital revolution has shattered who had argued that Trump could
As a social psychologist who stud- United Kingdom, Spain, and South in it further. One result is that young that mirror, and now the public in- not win the general election were re-
ies emotion, morality, and politics, I Korea scored near the bottom (albeit people educated in the post-Babel era habits those broken pieces of glass. So lying on pre-Babel intuitions, which
saw this happening too. The newly above Russia). are less likely to arrive at a coherent the public is not one thing; it is highly said that scandals such as the Access
tweaked platforms were almost per- story of who we are as a people, and fragmented, and it is basically mutu- Hollywood tape (in which Trump
fectly designed to bring out our most Recent academic studies suggest less likely to share any such story with ally hostile. It is mostly people yelling boasted about committing sexual as-
moralistic and least reflective selves. that social media is indeed corrosive those who attended different schools at each other and living in bubbles of sault) are fatal to a presidential cam-
The volume of outrage was shocking. to trust in governments, news media, or who were educated in a different one sort or another. paign. But after Babel, nothing really
and people and institutions in gen- decade. means anything anymore — at least
It was just this kind of twitchy and eral. A working paper that offers the Mark Zuckerberg may not have not in a way that is durable and on
explosive spread of anger that James most comprehensive review of the The former CIA analyst Martin wished for any of that. But by rewir- which people widely agree.
Madison had tried to protect us from research, led by the social scientists Gurri predicted these fracturing ef- ing everything in a headlong rush for Politics after Babel
as he was drafting the U.S. Constitu- Philipp Lorenz-Spreen and Lisa Os- fects in his 2014 book, The Revolt of growth — with a naive conception of “Politics is the art of the possible,”
tion. The Framers of the Constitution wald, concludes that “the large major- the Public. Gurri’s analysis focused human psychology, little understand- the German statesman Otto von Bis-
were excellent social psychologists. ity of reported associations between on the authority-subverting effects ing of the intricacy of institutions, marck said in 1867. In a post-Babel
They knew that democracy had an digital media use and trust appear to of information’s exponential growth, and no concern for external costs democracy, not much may be possi-
Achilles’ heel because it depended on be detrimental for democracy.” The beginning with the internet in the imposed on society — Facebook, ble.
the collective judgment of the people, literature is complex — some stud- 1990s. Writing nearly a decade ago, Twitter, YouTube, and a few other
and democratic communities are sub- ies show benefits, particularly in less Gurri could already see the power of large platforms unwittingly dissolved Of course, the American culture
ject to “the turbulency and weakness developed democracies — but the social media as a universal solvent, the mortar of trust, belief in institu- war and the decline of cross-party
of unruly passions.” The key to de- review found that, on balance, social breaking down bonds and weakening tions, and shared stories that had held cooperation predates social media’s
signing a sustainable republic, there- media amplifies political polarisation; institutions everywhere it reached. He a large and diverse secular democracy arrival. The mid-20th century was a
fore, was to build in mechanisms to foments populism, especially right- noted that distributed networks “can together. time of unusually low polarisation in
slow things down, cool passions, re- wing populism; and is associated with protest and overthrow, but never gov- Congress, which began reverting back
quire compromise, and give leaders the spread of misinformation. ern.” He described the nihilism of the I think we can date the fall of the to historical levels in the 1970s and
some insulation from the mania of many protest movements of 2011 that tower to the years between 2011 ’80s. The ideological distance between
the moment while still holding them When people lose trust in institu- organized mostly online and that, like (Gurri’s focal year of “nihilistic” pro- the two parties began increasing faster
accountable to the people periodical- tions, they lose trust in the stories told Occupy Wall Street, demanded the tests) and 2015, a year marked by the in the 1990s. Fox News and the 1994
ly, on Election Day. by those institutions. That is particu- destruction of existing institutions “great awokening” on the left and “Republican Revolution” convert-
larly true of the institutions entrusted without offering an alternative vision the ascendancy of Donald Trump on ed the GOP into a more combative
The tech companies that enhanced with the education of children. His- of the future or an organization that the right. Trump did not destroy the party. For example, House Speaker
virality from 2009 to 2012 brought tory curricula have often caused po- could bring it about. tower; he merely exploited its fall. He Newt Gingrich discouraged new Re-
us deep into Madison’s nightmare. litical controversy, but Facebook and was the first politician to master the publican members of Congress from
Many authors quote his comments Twitter make it possible for parents Gurri is no fan of elites or of cen- new dynamics of the post-Babel era, moving their families to Washington
in “Federalist No. 10” on the innate to become outraged every day over tralised authority, but he notes a con- in which outrage is the key to virality, DC, where they were likely to form
human proclivity toward “faction,” a new snippet from their children’s structive feature of the pre-digital era: stage performance crushes compe- social ties with Democrats and their
by which he meant our tendency to history lessons — and math lessons a single “mass audience,” all consum- tence, Twitter can overpower all the families.
divide ourselves into teams or parties and literature selections, and any new ing the same content, as if they were newspapers in the country, and sto-
that are so inflamed with “mutual ani- pedagogical shifts anywhere in the all looking into the same gigantic mir- ries cannot be shared (or at least trust- So cross-party relationships were
mosity” that they are “much more dis- country. The motives of teachers and ror at the reflection of their own soci- ed) across more than a few adjacent already strained before 2009. But
posed to vex and oppress each other fragments — so truth cannot achieve the enhanced virality of social media
than to cooperate for their common thereafter made it more hazardous to
good.” be seen fraternising with the enemy
or even failing to attack the enemy
But that essay continues on to a with sufficient vigor. On the right,
less quoted yet equally important the term RINO (Republican in Name
insight, about democracy’s vulnera- Only) was superseded in 2015 by
bility to triviality. Madison notes that the more contemptuous term cuck-
people are so prone to factionalism servative, popularized on Twitter by
that “where no substantial occasion Trump supporters. On the left, social
presents itself, the most frivolous and media launched callout culture in the
fanciful distinctions have been suffi- years after 2012, with transformative
cient to kindle their unfriendly pas- effects on university life and later on
sions and excite their most violent politics and culture throughout the
conflicts.” English-speaking world.

Social media has both magnified What changed in the 2010s? Let’s
and weaponized the frivolous. Is our revisit that Twitter engineer’s met-
democracy any healthier now that aphor of handing a loaded gun to a
we’ve had Twitter brawls over Repre- four-year-old. A mean tweet does not
sentative Alexandria Ocasio-Cortez’s kill anyone; it is an attempt to shame
tax the rich dress at the annual Met or punish someone publicly while
Gala, and Melania Trump’s dress at broadcasting one’s own virtue, bril-
a 9/11 memorial event, which had liance, or tribal loyalties. It is more a
stitching that kind of looked like a dart than a bullet, causing pain but
skyscraper? How about Senator Ted no fatalities. Even so, from 2009 to
Cruz’s tweet criticizing Big Bird for 2012, Facebook and Twitter passed
tweeting about getting his COVID out roughly a billion dart guns glob-
vaccine? ally. We have been shooting one an-
other ever since.
It’s not just the waste of time and
scarce attention that matters; it is the Social media has given voice to
continual chipping-away of trust. An some people who had little previous-
autocracy can deploy propaganda or ly, and it has made it easier to hold
use fear to motivate the behaviors it powerful people accountable for their
desires, but a democracy depends misdeeds, not just in politics but in
on widely internalised acceptance of business, the arts, academia, and else-
the legitimacy of rules, norms, and where. Sexual harassers could have
institutions. Blind and irrevocable been called out in anonymous blog
trust in any particular individual or posts before Twitter, but it is hard to
organisation is never warranted. But imagine that the #MeToo movement
when citizens lose trust in elected would have been nearly so successful
leaders, health authorities, the courts, without the viral enhancement that
the police, universities, and the integ- the major platforms offered. Howev-
rity of elections, then every decision er, the warped “accountability” of so-
becomes contested; every election cial media has also brought injustice
becomes a life-and-death struggle to — and political dysfunction — in
save the country from the other side. three ways.
The most recent Edelman Trust Ba-
rometer (an international measure of First, the dart guns of social media
citizens’ trust in government, busi- give more power to trolls and provo-
ness, media, and non-governmental cateurs while silencing good citizens.
organisations) showed stable and

Page 50 Reframing Issues NewsHawks

Issue 77, 22 April 2022

Research by the political scientists Structural stupidity the mid-to-late 2010s. They got stu- hard by structural stupidity, though The Shor case became famous, but
Alexander Bor and Michael Bang Since the tower fell, debates of all pider en masse because social media in a different way. In the Democrat- anyone on Twitter had already seen
Petersen found that a small subset of kinds have grown more and more instilled in their members a chronic ic Party, the struggle between the dozens of examples teaching the ba-
people on social-media platforms are confused. The most pervasive obstacle fear of getting darted. The shift was progressive wing and the more mod- sic lesson: Do not question your own
highly concerned with gaining sta- to good thinking is confirmation bias, most pronounced in universities, erate factions is open and ongoing, side’s beliefs, policies, or actions. And
tus and are willing to use aggression which refers to the human tendency scholarly associations, creative in- and often the moderates win. The when traditional liberals go silent, as
to do so. They admit that in their to search only for evidence that con- dustries, and political organisations problem is that the left controls the so many did in the summer of 2020,
online discussions they often curse, firms our preferred beliefs. Even be- at every level (national, state, and commanding heights of the culture: the progressive activists’ more radical
make fun of their opponents, and get fore the advent of social media, search local), and it was so pervasive that universities, news organizations, Hol- narrative takes over as the governing
blocked by other users or reported for engines were supercharging confir- it established new behavioral norms lywood, art museums, advertising, narrative of an organization. This is
inappropriate comments. Across eight mation bias, making it far easier for backed by new policies seemingly much of Silicon Valley, and the teach- why so many epistemic institutions
studies, Bor and Petersen found that people to find evidence for absurd be- overnight. The new omnipresence of ers’ unions and teaching colleges that seemed to “go woke” in rapid succes-
being online did not make most peo- liefs and conspiracy theories, such as enhanced-virality social media meant shape K-12 education. And in many sion that year and the next, beginning
ple more aggressive or hostile; rather, that the Earth is flat and that the US that a single word uttered by a profes- of those institutions, dissent has been with a wave of controversies and res-
it allowed a small number of aggres- government staged the 9/11 attacks. sor, leader, or journalist, even if spo- stifled: When everyone was issued ignations at The New York Times and
sive people to attack a much larger But social media made things much ken with positive intent, could lead to a dart gun in the early 2010s, many other newspapers, and continuing
set of victims. Even a small number worse. a social-media firestorm, triggering an left-leaning institutions began shoot- on to social-justice pronouncements
of jerks were able to dominate discus- immediate dismissal or a drawn-out ing themselves in the brain. And un- by groups of doctors and medical
sion forums, Bor and Petersen found, The most reliable cure for confir- investigation by the institution. Par- fortunately, those were the brains that associations (one publication by the
because nonjerks are easily turned off mation bias is interaction with people ticipants in our key institutions began inform, instruct, and entertain most American Medical Association and
from online discussions of politics. who do not share your beliefs. They self-censoring to an unhealthy degree, of the country. the Association of American Medical
Additional research finds that wom- confront you with counter-evidence holding back critiques of policies and Colleges, for instance, advised med-
en and Black people are harassed dis- and counter-argument. John Stuart ideas — even those presented in class Liberals in the late 20th century ical professionals to refer to neigh-
proportionately, so the digital public Mill said, “He who knows only his by their students — that they believed shared a belief that the sociologist borhoods and communities as “op-
square is less welcoming to their voic- own side of the case, knows little of to be ill-supported or wrong. Christian Smith called the “liberal pressed” or “systematically divested”
es. that,” and he urged us to seek out progress” narrative, in which Ameri- instead of “vulnerable” or “poor”),
conflicting views “from persons who But when an institution punishes ca used to be horrifically unjust and and the hurried transformation of
Second, the dart guns of social actually believe them.” People who internal dissent, it shoots darts into repressive, but, thanks to the struggles curricula at New York City’s most ex-
media give more power and voice to think differently and are willing to its own brain. of activists and heroes, has made (and pensive private schools.
the political extremes while reducing speak up if they disagree with you continues to make) progress toward
the power and voice of the moderate make you smarter, almost as if they The stupefying process plays out realizing the noble promise of its Tragically, we see stupefaction
majority. The “Hidden Tribes” study, are extensions of your own brain. Peo- differently on the right and the left founding. This story easily supports playing out on both sides in the
by the pro-democracy group More in ple who try to silence or intimidate because their activist wings subscribe liberal patriotism, and it was the an- Covid-19 wars. The right has been so
Common, surveyed 8 000 Americans their critics make themselves stupid- to different narratives with different imating narrative of Barack Obama’s committed to minimising the risks of
in 2017 and 2018 and identified sev- er, almost as if they are shooting darts sacred values. The “Hidden Tribes” presidency. It is also the view of the Covid-19 that it has turned the dis-
en groups that shared beliefs and be- into their own brain. study tells us that the “devoted con- “traditional liberals” in the “Hidden ease into one that preferentially kills
haviors. The one furthest to the right, servatives” score highest on beliefs re- Tribes” study (11% of the popula- Republicans. The progressive left is so
known as the “devoted conservatives,” In the 20th century, America built lated to authoritarianism. They share a tion), who have strong humanitarian committed to maximising the dangers
comprised 6 percent of the US popu- the most capable knowledge-produc- narrative in which America is eternal- values, are older than average, and are of Covid-19 that it often embraces an
lation. The group furthest to the left, ing institutions in human history. In ly under threat from enemies outside largely the people leading America’s equally maximalist, one-size-fits-all
the “progressive activists,” comprised the past decade, they got stupider en and subversives within; they see life as cultural and intellectual institutions. strategy for vaccines, masks, and so-
8 percent of the population. The pro- masse. a battle between patriots and traitors. cial distancing — even as they per-
gressive activists were by far the most According to the political scientist But when the newly viralised so- tain to children. Such policies are
prolific group on social media: 70% In his book The Constitution of Karen Stenner, whose work the “Hid- cial-media platforms gave everyone a not as deadly as spreading fears and
had shared political content over the Knowledge, Jonathan Rauch de- den Tribes” study drew upon, they dart gun, it was younger progressive lies about vaccines, but many of them
previous year. The devoted conserva- scribes the historical breakthrough in are psychologically different from the activists who did the most shooting, have been devastating for the mental
tives followed, at 56%. which Western societies developed an larger group of “traditional conserva- and they aimed a disproportionate health and education of children, who
“epistemic operating system” — that tives” (19% of the population), who number of their darts at these older desperately need to play with one an-
These two extreme groups are is, a set of institutions for generating emphasize order, decorum, and slow liberal leaders. Confused and fear- other and go to school; we have little
similar in surprising ways. They are knowledge from the interactions of rather than radical change. ful, the leaders rarely challenged the clear evidence that school closures
the whitest and richest of the seven biased and cognitively flawed individ- activists or their nonliberal narrative and masks for young children reduce
groups, which suggests that America uals. English law developed the adver- Only within the devoted conserva- in which life at every institution is an deaths from Covid-19. Most notably
is being torn apart by a battle between sarial system so that biased advocates tives’ narratives do Donald Trump’s eternal battle among identity groups for the story I am telling here, pro-
two subsets of the elite who are not could present both sides of a case to an speeches make sense, from his cam- over a zero-sum pie, and the people gressive parents who argued against
representative of the broader soci- impartial jury. Newspapers full of lies paign’s ominous opening diatribe on top got there by oppressing the school closures were frequently sav-
ety. What is more, they are the two evolved into professional journalistic about Mexican “rapists” to his warn- people on the bottom. This new nar- aged on social media and met with
groups that show the greatest homo- enterprises, with norms that required ing on 6 January 2021: “If you don’t rative is rigidly egalitarian — focused the ubiquitous leftist accusations of
geneity in their moral and political seeking out multiple sides of a story, fight like hell, you’re not going to on equality of outcomes, not of rights racism and white supremacy. Others
attitudes. This uniformity of opinion, followed by editorial review, followed have a country anymore.” or opportunities. It is unconcerned in blue cities learned to keep quiet.
the study’s authors speculate, is likely by fact-checking. Universities evolved with individual rights.
a result of thought-policing on social from cloistered medieval institutions The traditional punishment for American politics is getting ever
media: “Those who express sympa- into research powerhouses, creating a treason is death, hence the battle cry The universal charge against people more ridiculous and dysfunctional
thy for the views of opposing groups structure in which scholars put forth on 6 January: “Hang Mike Pence.” who disagree with this narrative is not not because Americans are getting
may experience backlash from their evidence-backed claims with the Right-wing death threats, many de- “traitor”; it is “racist,” “transphobe,” less intelligent. The problem is struc-
own cohort.” In other words, politi- knowledge that other scholars around livered by anonymous accounts, are “Karen,” or some related scarlet letter tural. Thanks to enhanced-virality so-
cal extremists do not just shoot darts the world would be motivated to gain proving effective in cowing traditional marking the perpetrator as one who cial media, dissent is punished with-
at their enemies; they spend a lot of prestige by finding contrary evidence. conservatives, for example in driving hates or harms a marginalised group. in many of our institutions, which
their ammunition targeting dissent- out local election officials who failed The punishment that feels right for means that bad ideas get elevated into
ers or nuanced thinkers on their own Part of America’s greatness in the to “stop the steal.” The wave of threats such crimes is not execution; it is pub- official policy.
team. In this way, social media makes 20th century came from having de- delivered to dissenting Republican lic shaming and social death. It’s going to get much worse
a political system based on compro- veloped the most capable, vibrant, members of Congress has similarly In a 2018 interview, Steve Bannon,
mise grind to a halt. and productive network of knowl- pushed many of the remaining mod- You can see the stupefaction pro- the former adviser to Donald Trump,
edge-producing institutions in all of erates to quit or go silent, giving us cess most clearly when a person on said that the way to deal with the me-
Finally, by giving everyone a dart human history, linking together the a party ever more divorced from the the left merely points to research that dia is “to flood the zone with shit.” He
gun, social media deputizes everyone world’s best universities, private com- conservative tradition, constitutional questions or contradicts a favored was describing the “firehose of false-
to administer justice with no due pro- panies that turned scientific advances responsibility, and reality. We now belief among progressive activists. hood” tactic pioneered by Russian
cess. Platforms like Twitter devolve into life-changing consumer prod- have a Republican Party that describes Someone on Twitter will find a way disinformation programmes to keep
into the Wild West, with no account- ucts, and government agencies that a violent assault on the US Capitol as to associate the dissenter with racism, Americans confused, disoriented, and
ability for vigilantes. A successful supported scientific research and led “legitimate political discourse,” sup- and others will pile on. For exam- angry. But back then, in 2018, there
attack attracts a barrage of likes and the collaboration that put people on ported — or at least not contradict- ple, in the first week of protests after was an upper limit to the amount of
follow-on strikes. Enhanced-virality the moon. ed — by an array of right-wing think the killing of George Floyd, some of shit available, because all of it had to
platforms thereby facilitate massive tanks and media organisations. which included violence, the progres- be created by a person (other than
collective punishment for small or But this arrangement, Rauch notes, sive policy analyst David Shor, then some low-quality stuff produced by
imagined offenses, with real-world “is not self-maintaining; it relies on an The stupidity on the right is most employed by Civis Analytics, tweeted bots).
consequences, including innocent array of sometimes delicate social set- visible in the many conspiracy theo- a link to a study showing that violent
people losing their jobs and being tings and understandings, and those ries spreading across right-wing media protests back in the 1960s led to elec- Now, however, artificial intelli-
shamed into suicide. When our pub- need to be understood, affirmed, and and now into Congress. “Pizzagate,” toral setbacks for the Democrats in gence is close to enabling the limitless
lic square is governed by mob dynam- protected.” So what happens when QAnon, the belief that vaccines con- nearby counties. spread of highly believable disinfor-
ics unrestrained by due process, we do an institution is not well maintained tain microchips, the conviction that mation. The AI programme GPT-3 is
not get justice and inclusion; we get a and internal disagreement ceases, ei- Donald Trump won reelection — it Shor was clearly trying to be help- already so good that you can give it a
society that ignores context, propor- ther because its people have become is hard to imagine any of these ideas ful, but in the ensuing outrage he was topic and a tone and it will spit out as
tionality, mercy, and truth. ideologically uniform or because they or belief systems reaching the levels accused of “anti-Blackness” and was many essays as you like, typically with
have become afraid to dissent? that they have without Facebook and soon dismissed from his job. (Civis
Twitter. Analytics has denied that the tweet
This, I believe, is what happened to led to Shor’s firing.)
many of America’s key institutions in The Democrats have also been hit