Price US$1 Friday 3 - 9 May / 10 - 16 May 2024 NEWS Mnangagwa’s association with dodgy characters persists Story on Page 5 NEWS Chiwenga carries out threats to money changers WHAT’S Story on Page 23 INSIDE SPORT Bruce Grobbelaar: How I swapped football and cricket with Houghton Story on Page 60 ALSO INSIDE Zanufication of the ANC Mnangagwa's son Collins in destructive gold mining Double Edition
Page 2 News BRENNA MATENDERE THE once-pristine and picturesque Boterekwa escarpment in Shurugwi, Midlands province, now stands as a haunting monument to the ravages of human exploitation and destructive gold mining activities by President Emmerson Mnangagwa's twin son Collins, known at home as Takunda. The NewsHawks has been reporting on the Boterekwa story for the past three years. Collins, who is a twin brother to Sean Tafadzwa, is now chairperson and senior partner in a gold mining company with Chinese origins named Chengxi Mining (Pvt) Ltd. The twins, Collins and Sean, are First Lady Auxillia Mnangagwa's sons with the President. Investigations show that Collins is making a killing from the gold venture as he now travels a lot to China for business meetings, consultations and payments. Due to his mining activities, Collins now owns a huge mansion at Hellensville, Harare. Before his father was President initially through a 2017 coup, Collins, like all his siblings, was struggling in town. Now he lives in the lap of luxury. While Collins and his partners are minting money at Boterekwa, local communities and Zimbabweans have been left with an extensively damage environment. Mnangagwa is aware of the damage as he uses that road through Boterekwa going and coming back from his rural home. Mnangagwa's rural home is in Chief Mapanzure's area in Zvishavane. Locals say Mnangagwa and Zanu PF are accomplices by acts of commission or omission in the Boterekwa mining disaster, which has sparked a public outcry. Zanu PF is a beneficiary of Chengxi's mining activities after getting donated offices. Chiefs have also been appeased through favours extended by the company. The company's mining activities have virtually destroyed the Boterekwa escarpment, also known as Wolfshall Pass. Once a breathtakingly beautiful landscape, Boterekwa has been reduced to a ravaged and desolate expanse by the destructive forces of mining. The escarpment's rugged hills, verdant valleys, and picturesque physical features, which once echoed with the sweet songs of birds and the gentle rustle of leaves, now lie scarred and barren. The lush vegetation that once clothed the hillsides has been stripped away, exposing the raw earth, red soils and rocky outcrops to the harsh elements. The air is thick with the acrid smell of chemicals like cyanide, and the constant din of machinery pierces the valley, shattering the tranquility of this once-peaceful place. The escarpment's natural contours have been brutally altered, with vast open-pit mines and trenches carved into the earth, leaving behind a labyrinth of industrial infrastructure. The ravaged escarpment, once a gentle cascade of crystal clear water during the rainy season, now flows with a murky, polluted brew, their natural beauty lost forever. Boterekwa was famous for freshwater streams and varied plant species, but mining is wreaking havoc in the area, affecting flora and fauna, as well as communities. Illegal gold panning activities are taking a toll on the aea, turning it upside down. The destruction of the Botekwa hills is a stark reminder of the devastating impact of mining activities on the natural world. The pursuit of mineral wealth has come at a terrible cost, leaving behind a scarred and broken landscape, a testament to the enduring legacy of human greed and neglect. To secure political support and cover up its activities, Chengxi recently donated offices in Shurugwi to Zanu PF in the presence of Collins and Mnangagwa's close allies, including Midlands minister of State for Provincial Affairs and Devolution Owen "Mudha" Ncube. Chengxi general manager Simon Karimanzira named Collins — who was also presented — as a senior partner and chairperson the company. Video footage of the event shows Collins singing with Ncube, saying Mnangagwa will be there in 2030. Chengxi was initially in partnership with local miner Chrispen Mahara and was exposed by The NewsHawks last year in April for illegal mining activities on a segment of the picturesque Boterekwa escarpment. The company agreed to repair a broken down Zanu PF vehicle and that of Chief Nhema, as part of its corporate social responsibility. Chief Nhema previously said there is need for the government to rein in some of the companies destroying the environment at Boterekwa and Shurugwi. “An environmental disaster is looming at Boterekwa and Shurugwi at large because of the mining taking place be it from artisanal and small to medium-scale miners to the big mines. If you walk through Boterekwa you will cry because all the flora and fauna is gone. There are heavy machines (bulldozers and front end loaders) eating away the mountains and soon there won’t be trees or rivers flowing in Boterekwa,” Nhema told a local daily. These illegal mining activities started as way back as 2011 when the gold miners damaged the same road along the Boterekwa escarpment. It was later repaired, but the illegal miners are back. As reported by this publication last year, Ansh Blue 4/8, owned by Mahara in joint partnership with Chengxi, was given the greenlight by the Environmental Management Agency (Ema) to embark on shaft mining, but ended up clandestinely including opencast mining and vatleaching under the name Anshi 68 North 2 and 3, project flouting environmental regulations. Last year, Ema fined Mahara ZW$400 000 for illegal open cast mining activities at Boterekwa. Mahara later parted ways with Chengxi. Mama Dhari, a local miner, came in before, Collins moved in significantly. Environmental experts say vatleaching produces large amounts of waste effluent which is acidic. Through a process called gold cyanidation, cyanide process or cyanide leach mining, cyanide is used to extract gold from the surrounding rock. While cyanide is both effective and economical, its use and transportation present significant environmental risks. Gold vat leaching process is currently widely used in small-scale gold mines because of a series of advantages, including high recovery rate, strong adaptability to ore, low cost and simple process. The basic principle is first to leach the gold from the ore with cyanide solution containing oxygen, and then to extract the gold from the leaching solution with zinc powder or zinc wire. Excessive cyanide concentration will cause waste of reagents, increase the cost, and cause great pollution to the environment. Collins' joint venture with the Chinese at Boterekwa has therefore been polluting the environment with toxic waste, putting the lives of animals and people in danger. Due to the unauthorised open cast mining activities carried out last year, the natural landscape has not only been destroyed but part of the escapement has also been exposed to soil erosion and pollution of downstream water bodies. Destructive mining practices, coupled with poor environmental practices by both local and mostly Chinese gold and chrome miners along the Shurugwi-Zvishavane highway, have left extensive environmental damage, with devastating consequences. Chinese companies, such as Chengxi, AfroChine Smelting (Pvt) Ltd, Dore Green Customs Milling, STC Mine Cyanide Chemical (Pvt) Ltd and Ming Chang Sino Africa (Pvt) Ltd, have left a devastating trail of environmental degradation and other problems in their areas of operation. The authorities and locals have been complaining and pushing to deal with the Boterekwa situation, but with Collins' involvement they are afraid of President Mnangagwa. Mnangagwa's son Collins in destructive gold mining Destructive gold mining activities at Boterekwa. Collins Mnangagwa NewsHawks Issue 175, 3 - 9 May 2024
Re-run Page 3 STEPHEN CHADENGA BOTEREKWA escarpment located in the mining town of Shurugwi, 33 kilometres outside the Midlands capital Gweru, boasts of scenic views of a mountainous area endowed with indigenous trees. For years, in the valleys and at the base of the mountains, gold panners have been scouring for the precious metal, inflicting serious damage on the environment. Environmental degradation has scaled new heights since a new miner, Ansh Blue 4/8, owned by one Mahara in joint partnership with Chinese firm Chenjxi (Private) Limited, has embarked on illegal mining activities in the picturesque mountain range. Investigations by The NewsHawks revealed that Mahara, through his company Ansh Blue, had intially been awarded an environmental impact assessment certificate for shaft mining before he joined hands with Chenjxi to embark on opencast mining and vatleaching under the name Anshi 68 North 2 and 3 project. However, it is the speed at which mining activities resumed early this year that has sparked alarm, even attracting the attention of the Environmental Management Agency (Ema), amid an outcry from locals. Ema officials confirmed to The NewsHawks that the mining operations were illegal, adding the agency is seized with the matter. High-level sources in the Midlands say powerful Zanu PF politicians are — behind the scenes — involved mining operations in the gold-rich Shurugwi mountain range, hence the display of impunity. The surrounding communities are not been amused by the miners’ degradation of Boterekwa, a place they have for years considered to be a paradise for nature lovers. “We wonder how the new miner got a licence to mine from the bottom to the top of part of Boterekwa. Of course we have known illegal gold miners digging here and there at the base of the mountain but to go on to raze down part of the range completely. This is new to us and totally unacceptable,” a Shurugwi villager said. This week, Ema Midlands provincial manager Benson Basera told The NewsHawks that Ansh Blue mine had been ordered by the environmental agency to stop illegal mining operations. “The miner in question has an environmental impact assessment for shaft mining,” Basera said. “The miner, however, went on to expand the mining activities to include the components of opencast mining and vatleaching. “The components were not included in the initial shaft mine project and according to the EIA regulations illegal. Ema has served the miner with environmental orders as outlined in the Ema Act (chapter 20:27) to stop implementing the two components, whose EIA report or document has not yet been submitted for review to Ema.” He added: “As Ema we had to issue a ticket of ZW$300 000 to Anshi for including vatleaching and opencast in the mining project. Following the illegal activities, the scenic area was disfigured.” Basera said the miners were flouting environmental standards and had to be stopped. “The fact that the two operations (opencast and vatleaching) are not EIA-certified disqualify the operations as being done out of specified standard. This is why Ema has stopped the illegal mining operations components,” he said. Vatleaching produces large amounts of waste effluent which are acidic and the miner at Boterekwa has therefore been polluting the environment with toxic wastes putting the lives of animals and people at danger. Through opencast mining, the joint mining venture between Mahara and the Chinese company has not only destroyed the natural landscape, but also exposed part of the escapement to soil erosion and pollution of water bodies downstream. The provincial mining office referred all inquiries to the ministry of Mines. Mines minister Winston Chitando did not respond to questions sent to him. Over the years, illegal panners have been digging for the precious metal at Boterekwa and raids by the police have failed to stop their activities. Environmentalists are, however, worried not only about the damage to the environment but also to road users as well. Fears have arisen that artisanal miners operating illegally on the escapement could have dug tunnels beneath the Boterekwa highway and, as a result, there is a risk the road could collapse anytime. A few years ago, the ministry of Transport had to patch what was suspected to be the entrance to a tunnel in the middle of the Shurugwi Boterekwa-Zvishavane highway. Mining activities coupled with sub-standard environmental practices by both local and mostly Chinese gold and chrome miners along the Shurugwi-Zvishavane highway has left extensive environmental degredation, with people questioning the government’s commitment to stopping the illegal activities. Boterekwa Gold mining illegal Work at Boterekwa escarpment in Shurugwi NewsHawks 1ssue 175, 3 - 9 May 2024
Page 4 News NewsHawks Issue 175, 3 - 9 May 2024 RUVIMBO MUCHENJE ALTHOUGH mining contributes heavily to the country’s development through boosting the gross domestic product, creating employment and building infrastructure which all improve people's lives, there is a growing sense of awareness within communities as locals ask whether mining in their areas constitutes development or destruction. Mining activities bring economic benefits to the country and its communities, but can also cause environmental damage, water pollution, land degradation and biodiversity and wildlife devastation. Bad mining practices and activities are also a major driver of climate change, despite limited information on the extent and nature of these impacts on protected areas in Zimbabwe. Researchers say illegal gold panning has been the worst enemy of the environment and has become a widespread problem that is found throughout Zimbabwe. "This problem is mostly due to the need for income, food, employment, asset ownership and decent living conditions," according to a study, titled Socio-Environmental Damage, a Looming Facet of Illegal Gold Panning: A Case Study of the Illegal Gold Panners of Gwanda District, Zimbabwe, by Dumile Bhebhe, Andries Jordaan and Olivia Kunguma. "Zimbabwe is an agricultural and mineral-backed economy and the rural population tries whatever means possible to pursue existence in gold panning as a source of employment. "It is one of the survival options for them especially for the people that live along rivers, disused mines and dams. Whilst this is a local problem, it is one with very clear regional links as some of the rivers are also taking water to the neighbouring countries." A paper co-authored by Martin Magidi and Promise Machingo Hlungwani in the South African Geographical Journal focuses on the impact of mining at Connemara Gold Mine on the environment and rural livelihoods in the communities surrounding the mine. While they acknowledge that mining is a lucrative business and one of the major drivers of the Zimbabwean economy, they argue that most of the benefits of mining tend to be enjoyed elsewhere and not by host communities. Researchers roped in the Treadmill of Production and the Resource Curse theories to demonstrate the interplay between capitalism, the environment and local ordinary people’s livelihoods around Connemara Mine, Midlands province. Data was collected through interviews with local community residents, leaders and stakeholder organisations with interests in mining who were selected through purposive and snowballing techniques. They collected data over a period of 13 weeks, interviewing 25 respondents in the process and undertaking a series of transect walks across the mined site and its adjacent surroundings. Researchers concluded that mining caused extensive environmental destruction, creating artificial hills and open pits as well as promoting massive soil erosion, contaminating water and land with dangerous chemicals making them unusable for productive purposes. As a result, they conclude that mining at the site did not generate wealth for the local populace but for the mine owners and the state while impoverishing the host communities, destroying their livelihoods in doing so. They concluded by arguing that mining at Connemara is a perfect example of how the Treadmill of Production works and an evident testimony of the Resource Curse. Mining in Zimbabwe has had a devastating environmental impact, including: 1. Water pollution: Chemicals and heavy metals from mining activities have contaminated rivers, lakes, and groundwater, affecting aquatic life and human health. 2. Soil erosion and land degradation: Mining has led to deforestation, habitat destruction, and soil degradation, causing soil erosion and loss of fertile land. 3. Air pollution: Mining activities release dust, particulate matter, and toxic gases into the air, contributing to respiratory problems and other health issues. 4. Destruction of ecosystems: Mining has resulted in the destruction of natural habitats, leading to the loss of biodiversity and extinction of endemic species. 5. Displacement of communities: Mining activities have forced communities to relocate, disrupting their livelihoods, culture, and way of life. 6. Health problems: Exposure to toxic chemicals and heavy metals has led to health problems, including respiratory diseases, cancer, and birth defects. 7. Climate change: Mining contributes to greenhouse gas emissions, exacerbating climate change and its associated impacts. 8. Illegal mining: Unregulated artisanal mining has led to further environmental degradation and social problems. 9. Lack of rehabilitation: Abandoned mines have not been rehabilitated, leaving behind a legacy of environmental damage. 10. Inadequate regulations: Weak regulations and enforcement have allowed mining companies to prioritize profits over environmental and social responsibility. The environmental impact of mining in Zimbabwe is a pressing concern that requires urgent attention and action from the government, mining companies, and local communities to mitigate and restore the damage done. Locals say open pits left by the Chinese-owned mining company endanger people and livestock. /Credit: Locadia Mavhudzi. Development or destruction?
NewsHawks News Page 5 1ssue 175, 3 - 9 May 2024 BRENNA MATENDERE PRESIDENT Emmerson Mnangagwa’s association with dodgy characters continues, with the latest being his recent appearance with controversial businessman Wicknell Chivayo — a convicted criminal — at official state functions. Mnangagwa appeared shoulder to shoulder with Chivayo receiving Kenyan President William Ruto at the Zimbabwe International Trade Fair in Bulawayo. A day before, Mnangagwa had also appeared with Chivayo touring the ZITF stands. Before that, during the Easter celebrations of the Zion Christian Church in Mbungu, Mnangagwa again appeared with Chivayo on the podium, with social media posts suggesting they used the same presidential private jet to travel. When Mnangagwa toured a grain milling plant in Tynwald, Harare, co-run by his younger brother Patrick and another businessman from the Midlands Douglas Kwande, Chivayo was also in his company, with close security details allowing him to come close to the Head of State. After leaving school, Chivayo, who was born in 1982, is said to have begun working as a wages clerk at a local bus company in Harare at the age of 15. Later, he engaged in illegal forex exchange deals at Harare’s Union Avenue Flea Market, which is now known as Kwame Nkrumah Avenue. Subsequently, Chivayo was arrested in 2004 and in 2005 he was convicted for money laundering involving R837 000 by the High Court. He was slapped with a five-year jail term, with two years suspended on condition of good behaviour. He served three years. In August 2018, Chivayo appeared at the Harare magistrates’ court facing four charges of fraud, money laundering and contravening the Exchange Control Act for receiving US$5 million from the state-owned Zimbabwe Power Company (ZPC) for a solar power plant project in Gwanda. He was charged together with his company Intratrek Zimbabwe and pleaded not guilty to the charges when he appeared before magistrate Elisha Singano. He was found not guilty in the high-profile case. In a turn of events, Chivayo approached the High Court and sued the ZPC for US$25 million for “breach and repudiation of contract” by making claims it had been prejudiced of that money. Justice Siyabonga Paul Msithu ruled in his favour in January last year and took a swipe at the ZPC for “frustrating its contractor who was awarded a tender that was sanctioned by the country’s State Procurement Board”. Two of Mnangagwa’s close allies were in in 2021 named in a landmark investigation exposing international secret deals, tax evasions and hidden wealth, adding to the growing list of his associates involved in dodgy dealings. Last year, Gold Mafia, a four-episode investigative news series by Al Jazeera, which exposed gold smuggling, money laundering and corruption, exposed Mnangagwa’s association with dodgy characters implicated in financial crimes. The investigation showed that different gold smuggling syndicates looting gold and salting away proceeds to offshore accounts have one common thread — links to Mnangagwa. Main characters in the film who sucked Mnangagwa into the vortex of action include his own envoy and ambassador-at-large Uebert Angel, a self-styled prophet who was a key interlocutor throughout the documentary, Rikki Doolan, Ewan Macmillan (Mr Gold), Kamlesh Pattni (Gold Dealer Brother Paul) and Alistair Mathias (Gold Trader — The Architect). Mnangagwa’s wife Auxillia, and his gold baron ally Pedzai “Scott” Sakupwanya (New Mr Gold) kept the President firmly at the centre of action in the last episode. One gold smuggler described Mnangagwa — referred to in some instances as Mr Jones — as his business partner. Another talked of him as an on-and-off partner whom he still meets. A third said he had to keep the President in the loop about gold smuggling operations. In 2021, two of Mnangagwa’s close allies were also named in a landmark investigation exposing international secret deals, tax evasions and hidden wealth, adding to the growing list of his associates involved in dodgy dealings. These were his then deputy chief secretary for administration and finance Martin Rushwaya, who is now the chief secretary to Mnangagwa and cabinet, and to whom he is related. The two were exposed in what was dubbed the Pandora Papers, an investigation conducted by the International Consortium of Investigative Journalists (ICIJ) — an ensemble of 600 journalists from 150 media outlets in 117 countries. They went through more than 11.9 million documents leaked from 14 offshore financial services firms. ICIJ found that 35 heads of state and government and more than 300 politicians have set up offshore structures and trusts in tax havens from the British Virgin Islands, Panama, Seychelles, to Hong Kong and Belize. There were emails, memos, incorporation records, share certificates, compliance reports and complex diagrammes showing labyrinthine corporate structures. ICIJ reported that Rushwaya created Greatgem Corp in the Seychelles in 2010 with the help of a Moscow law firm. The company was accused of facilitating the Zimbabwean military’s secret diamond dealings and off-budget financing. Rautenbach, who was Mnangagwa’s ally even during the days of the Democratic Republic of Congo war, in which they were both mentioned in reports as having looted diamonds from the country, was accused of hiding his wealth in an offshore family trust under the guise of it being payment to his wife for her contribution in building the family wealth. “In 2013, one of Zimbabwe’s richest men and arguably one of the most controversial business figures in southern Africa, Muller Conrad 'Billy' Rautenbach, donated multimillion-dollar financial investments in his coal and ethanol businesses to his wife. This restructuring was explained by the need to ‘compensate’ her for her role in building the family’s wealth,” the AmaBungane Centre for Investigative Journalism report reads. Mnangagwa also seems to have an appetite for opaque deals from shady shelf companies and dodgy businesspersons, including British-registered Coven Energy Limited, which was awarded a US$1.3 billion deal to build Zimbabwe’s second fuel pipeline. It was then revealed that the company was incorporated on 25 August last year, with assets amounting to £100. Coven Energy’s name has been added to the list of foreign companies awarded massive projects with no traceable track record. Since Mnangagwa’s ascension in 2017, many of the companies that have signed mega-deals have either been connected to the President, his family or cronies in government. Nothing much has come out of the deals partly because of the questionable track record of the investors involved. During the start of his tenure, Mnangagwa claimed he had clinched US$11 billion worth of business commitments, the bulk of which were murky deals, spearheaded by dodgy characters. In June that year, Mnangagwa’s crony Lucas Pouroulis signed a controversial US$4.2 billion deal with the government, paving way for his investment vehicle Karo Resources to grab mineral claims stretching over 23 903 hectares previously held by Zimplats along the Great Dyke. The US$4.2 billion cost had been plucked out of thin air, raising questions over the value of the investment. The Pourolis family holds a 42% stake in Tharisa Plc, which has only managed to mobilise US$8 million for the implementation of the platinum project. In 2005, Pourolis made a fortune after acquiring South Africa’s Impala Platinum subsidiary Elandsfontein Platinum Project for US$15 million, before selling it two years later for US$1.1 billion to Xstrata in a speculative deal. Karo Resources is a company registered in Cyprus and Guernsey, a tax haven blacklisted by the European Union. President Emmerson Mnangagwa (right) with controversial businessman Wicknell Chivayo at ZITF 2024. Dodgy characters put snouts in presidential feeding trough
Page 6 News NewsHawks Issue 175, 3 - 9 May 2024 Chivayo leverages proximity to power to make a fortune BRENNA MATENDERE AS flamboyant Zimbabwean tycoon Wicknell Chivayo splurges money on an imposing mansion and donates cars to selected individuals weeks on end, while also making cash donations, questions abound as to where the money is coming from. The NewsHawks has decided to follow the money around Chivayo and see where it leads to: Follow the money, the bank and the proxy, then get the answer. Chivayo is making money out of the stateowned power utility Zesa and Zimbabwe Electoral Commission. His deals with the electoral body are not in the public domain. The NewsHawks is digging deeper into the contracts and will get to the bottom of it, but first the background. Media reports say Chivayo has spent a fortune on luxury cars donated to high-profile individuals. In total, he has bought more than 50 cars, spending over US$5 million in donations. In January, he gave 50 members of his congregation Toyota Aqua vehicles worth US$400 000. Some of the cars he has bought include a Toyota Hilux, Toyota Hilux D4D, Toyota Fortuner, S500 Mercedes-Benz, Mercedes-Benz GLE, Mercedes-Benz GLE400d and Mercedes-Benz GLE350d 4matic, among others, for prominent people. For himself, Chivayo has a fleet of supercars. Last year, he showed off a fleet of six all-white imported luxury vehicles worth a staggering US$3.5 million parked at his mansion in Harare. Chivayo has built an imposing mansion in the capital. The Hollywood-style imposing residential property in Gletwyn suburb, Chishawasha Hills, Harare — furnished by South Africa's iconic interior design brand Norman Bakos Signature Collection — closely resembles former police Commissioner-General Augustine Chihuri's estate in the same area. But the controversial tycoon says it is not the same villa. Chivayo told The NewsHawks through messages: "No it's a completely different house. I built it from scratch." Chivayo, who is a convicted criminal and controversial businessman entangled in corrupt state tender projects, has of late been donating cars and money to individuals and organisations like confetti at a wedding. Zimbabweans are asking where his money comes from given his history of corrupt activities and proximity to Mnangagwa. The NewsHawks is currently investigating the story in detail. He says his own cars are white because he is an apostolic sect member, hence the colour white. In just one month, Chivayo bought four brand new Rolls-Royce vehicles from London. He then added a Mercedes-Benz Maybach and a Range Rover from South Africa. The duty for the vehicles alone was reportedly estimated at around US$1.5 million. For months on end now, Chivayo has been on a car-donation spree, something never done before in Zimbabwe or else for that matter. There are far richer Zimbabweans than Chivayo, but they do not behave like that. That is why it is important to probe the source of his money. Follow the Money is a journalistic investigative approach with a crystal clear goal: finding truth at the service of society. So far Chivayo's source of money is clear: State tenders are the source of his cash. Preliminary investigations show contrary to what he says — that he is a hard worker running private enterprises and making money — in reality he is a tenderpreneur. When reporters follow examples of hidden sources of money, concealed wealth can often be uncovered in real estate or mansions, planes, yachts, artwork, shopping and parties. Some splurge their money on public displays of their champagne lifestyles and donate loudly to attract public attention. In the digital age, the "follow the money" investigative technique has become even more effective, thanks to the advancements in technology and data analysis. Private companies have developed digital tools that allow for faster and easier monitoring and identification of suspicious financial transactions. This means that even the most complex money laundering schemes can be uncovered more quickly and efficiently than ever before. Chivayo's donations are not limited to cars only. Recently, he donated US$1 million donated to the Zion Christian Church to purportedly help fund its national projects, most of which have uplifted communities. Chivayo made the donation during the church’s Easter Passover festival at Mbungo Estates in Bikita district, Masvingo province, where President Emmerson Mnangagwa was the guest of honour. The donation was announced by the church’s leader, Bishop Nehemiah Mutendi. “There is this young businessman, Chivayo, who is doing great works. He donated some money to our church. It is a six-zero figure, US$1 million. We are quite happy as a church and that is a show of love and kindness,” said Bishop Mutendi. Why it matters? Chivayo has been accused of leveraging his close relationship with Mnangagwa to secure lucrative government contracts and make a financial fortune. This has led to controversy and a public outcry, with many questioning the transparency and fairness of these dealings. Chivayo's company, Intratrek Zimbabwe, has received significant government contracts, including a US$5.8 million solar power project and a US$173 million contract for the Gwanda Solar Project. Although he was paid US$5.8 million, Chivayo did not deliver the Gwanda project and was reported for fraud. After a court battle, he was later acquitted. Between 2016 and 2019, Intratrek executed pre-commencement works utilising funds paid by the state-owned Zimbabwe Power Company (ZPC) under contract and in the sum of US$5 811 224. ZPC is a subsidiary of the state-owned power utility Zesa. This amount constitutes less than 5% of the contract price of US$172 848 597. Chivayo has won court cases to keep and implement his contracts. Critics says these contracts were awarded opaquely and due to Chivayo's close ties with the President, rather than through a fair and competitive bidding process. Allegations of cronyism and corruption have sparked concerns about the lack of transparency and accountability in the Zimbabwean government's procurement processes. Chivayo's case is a classic example of what analysts call "crony capitalism" or "political entrepreneurship where an individual leverages their proximity to power and political connections to accumulate wealth and secure business deals. By capitalising on his relationship with President, Chivayo has benefitted from: *Lucrative government contracts; *Gained access to state resources and privileged information — insider trading; *Used political connections to influence policy decisions in favour of his business interests; *Used his networks to intimidate competitors and secure market dominance; *Used political muscle to sideline rivals or grab contracts. This type of behaviour undermines fair competition, perpetuates corruption, and erodes public trust in government and business. It also creates an uneven playing field, where those with political connections have an unfair advantage over others. Chivayo's case has sparked outrage and calls for greater transparency and accountability in government and business dealings. Many Zimbabweans feel such dealings undermine the country's economic performance, development and perpetuate corruption. It is important for the government to ensure contracts are awarded openly, fairly and transparently, without undue influence or favouritism, to promote economic growth and public trust. Wicknell Chivayo's house Wicknell Chivayo showing off part of his imported luxury cars at his mansion.
NewsHawks News Page 7 1ssue 175, 3 - 9 May 2024 BRENNA MATENDERE PRESIDENT Emmerson Mnangagwa trampled on protocol at the Zimbabwe International Trade Fair by bringing in a business associate, Wicknell Chivayo, who has a criminal record, to receive a foreign head of state, Kenyan President William Ruto. Chivayo is close to Mnangagwa and has been making money through state contracts, including the Zesa tenders, construction jobs and providing material to the Zimbabwe Electoral Commission which are all approved at the very top. There are suggestions that Mnangagwa, who has a penchant for associating with dodgy characters, brought in Chivayo for personal deals. Mnangagwa has also positioned First Lady Auxillia Mnangagwa and his children at the centre of cutting pure family business deals with Belarus using the influence of his state power. Last year, Auxillia flew out of the country with her twin children, Sean and Collins, to hold separate meetings with Belarusian President Alexander Lukashenko and his Foreign minister Sergei Aleinik on pure personal deals using her proximity to power in Harare. According to Belarus media house Belta, Auxillia discussed issues involving business deals in agriculture, technology and mining. In another development that showed how Mnangagwa is using state power to cement the First Family's business ties, in February last year he was captured by the media arriving in Malabo in Equatorial Guinea, with his son Emmerson Junior. Equatorial Guinea is ruled by Teodoro Obiang Nguema and his son Teodoro Jnr who is Vice-President, an arrangement Mnangagwa will be happy to stitch back home in Harare. Early in the year, Mnangagwa and Lukashenko met in Harare and Emmerson Jnr attended high-level meetings at State House despite not being a government official amid concern that he was pursuing family business interests. In the latest development Mnangagwa appeared shoulder to shoulder with his associate Chivayo receiving Ruto at the ZITF in Bulawayo. A day before, Mnangagwa had also appeared with Chivayo touring the ZITF stands. Before that, during the Easter celebrations of the Zion Christian Church in Mbungu, Mnangagwa again appeared with Chivayo on the podium, with social media posts suggesting they used the same presidential private jet to travel. When Mnangagwa toured a grain milling plant in Tynwald, Harare, co-run by his younger brother Patrick and another businessman from the Midlands Douglas Kwande, Chivayo was also in his company, with close security details allowing him to come close to the head of state. After leaving school, Chivayo, who was born in 1982, is said to have begun working as a wages clerk at a local bus company in Harare at the age of 15. Later, he engaged in illegal forex exchange deals at Harare’s Union Avenue Flea Market, which is now known as Kwame Nkrumah Avenue. Subsequently, Chivayo was arrested in 2004 and in 2005 he was convicted for money laundering involving R837 000 by the High Court. He was slapped with a five-year jail term, with two years suspended on condition of good behaviour. He served three years. In August 2018, Chivayo appeared at the Harare magistrates’ court facing four charges of fraud, money laundering and contravening the Exchange Control Act for receiving US$5 million from the state-owned Zimbabwe Power Company (ZPC) for a solar power plant project in Gwanda. He was charged together with his company Intratrek Zimbabwe and pleaded not guilty to the charges when he appeared before magistrate Elisha Singano. He was found not guilty in the high-profile case. In a turn of events, Chivayo approached the High Court and sued the ZPC for US$25 million for “breach and repudiation of contract” by making claims it had been prejudiced of that money. Justice Siyabonga Paul Msithu in January last year took a swipe at the ZPC for “frustrating its contractor who was awarded a tende çhat was sanctioned by the country’s State Procurement Board”. Mnangagwa has a long history of associating with dodgy characters. Two of Mnangagwa’s close allies were in in 2021 named in a landmark investigation exposing international secret deals, tax evasions and hidden wealth, adding to the growing list of his associates involved in dodgy dealings. Last year, Gold Mafia, a four-episode investigative news series by Al Jazeera, which uncovered gold smuggling, money laundering and corruption, exposed Mnangagwa’s association with dodgy characters implicated him in financial crimes. The investigation showed that different gold smuggling syndicates looting gold and salting away proceeds to offshore accounts have one common thread — links to Mnangagwa. Main characters in the film who sucked Mnangagwa into the vortex of action include his own envoy and ambassador-at-large Uebert Angel, a self-styled prophet who was a key interlocutor throughout the documentary, Rikki Doolan, Ewan Macmillan (Mr Gold), Kamlesh Pattni (Gold Dealer Brother Paul) and Alistair Mathias (Gold Trader — The Architect). Mnangagwa’s wife Auxillia, and his gold baron ally Pedzai “Scott” Sakupwanya (New Mr Gold) kept the President firmly at the centre of action in the last episode. One gold smuggler described Mnangagwa — referred to in some instances as Mr Jones — as his business partner. Another talked of him as an on-and-off partner whom he still meets. A third said he had to keep the President in the loop about gold smuggling operations. In 2021, two of Mnangagwa’s close allies were also named in a landmark investigation exposing international secret deals, tax evasions and hidden wealth, adding to the growing list of his associates involved in dodgy dealings. These were his then deputy chief secretary for administration and finance Martin Rushwaya, who is now the chief secretary to Mnangagwa and cabinet, and to whom he is related. Mnangagwa’s close business ally Billy Rautenbach was the second one. The two were exposed in what was dubbed the Pandora Papers, an investigation conducted by the International Consortium of Investigative Journalists (ICIJ) — an ensemble of 600 journalists from 150 media outlets in 117 countries. They went through more than 11.9 million documents leaked from 14 offshore financial services firms. ICIJ found that 35 heads of state and government and more than 300 politicians have set up offshore structures and trusts in tax havens from the British Virgin Islands, Panama, Seychelles, to Hong Kong and Belize. There were emails, memos, incorporation records, share certificates, compliance reports and corporate structures. ICIJ reported that Rushwaya created Greatgem Corp in the Seychelles in 2010 with the help of a Moscow law firm. The company was accused of facilitating the Zimbabwean military’s secret diamond dealings and off-budget financing. Rautenbach, who was Mnangagwa’s ally even during the days of the Democratic Republic of Congo war, in which they were both mentioned in reports as having looted diamonds from the country, was accused of hiding his wealth in an offshore family trust under the guise of it being payment to his wife for her contribution in building the family wealth. “In 2013, one of Zimbabwe’s richest men and arguably one of the most controversial business figures in southern Africa, Muller Conrad 'Billy' Rautenbach, donated multimillion-dollar financial investments in his coal and ethanol businesses to his wife. This restructuring was explained by the need to ‘compensate’ her for her role in building the family’s wealth,” the AmaBungane Centre for Investigative Journalism report reads. Mnangagwa’s list of associates also includes business tycoon Kudakwashe Tagwirei, who is on United States sanctions. Mnangagwa also seems to have an appetite for opaque deals from shady shelf companies and dodgy businesspersons, including British-registered Coven Energy Limited, which was awarded a US$1.3 billion deal to build Zimbabwe’s second fuel pipeline. It was then revealed that the company was incorporated on 25 August last year, with assets amounting to £100. Coven Energy’s name has been added to the list of foreign companies awarded massive projects with no traceable track record. Since Mnangagwa’s ascension in 2017, many of the companies that have signed mega-deals have either been connected to the President, his family or cronies in government. Nothing much has come out of the deals partly because of the questionable track record of the investors involved. During the start of his tenure, Mnangagwa claimed he had clinched US$11 billion worth of business commitments, the bulk of which were murky deals, spearheaded by dodgy characters. Some of the deals Mnangagwa clinched in the “New Dispensation” involve controversial business characters, including Zunaid Moti, Lucas Pouroulis and Jacco Immink. In 2018, Moti reportedly invested US$300 million to set up a chrome extraction and processing plant in Zimbabwe along the mineral-rich Great Dyke. During that time, Moti was arrested in Germany on charges that he defrauded his former business partner Alibek Issaev an estimated US$35 million in a sham mining deal in Lebanon in 2013. In June that year, Mnangagwa’s crony Pourolis signed a controversial US$4.2 billion deal with the government, paving way for his investment vehicle Karo Resources to grab mineral claims stretching over 23 903 hectares previously held by Zimplats along the Great Dyke. The US$4.2 billion cost had been plucked out of thin air, raising questions over the value of the investment. The Pourolis family holds a 42% stake in Tharisa Plc, which has only managed to mobilise US$8 million for the implementation of the platinum project. In 2005, Pourolis made a fortune after acquiring South Africa’s Impala Platinum subsidiary Elandsfontein Platinum Project for US$15 million, before selling it two years later for US$1.1 billion to Xstrata in a speculative deal. Karo Resources is a company registered in Cyprus and Guernsey, a tax haven blacklisted by the European Union. Zimbabwe President tramples on protocol to promote cronies Controversial businessman Wicknell Chivayo with Kenyan President William Ruto.
Page 8 News NewsHawks Issue 175, 3 - 9 May 2024 RUVIMBO MUCHENJE THE City of Harare is owed more than of ZiG940 million (about US$70 million) by residents, businesses, parastatals and government departments, among many other defaulting ratepayers. As a result, the Harare City Council says it now is embarking on an aggressive rates collection exercise to get payments and gather resources desperately needed to provide sustainable service delivery. The capital city's fed up authorities say defaulting ratepayers' actions have a significant impact on service delivery. Their failure, refusal or neglect to pay has serious consequences on service delivery and efficiency in the running of the local authority. City authorities say some of the negative impacts of the ratepayers' failure to pay, include: *Reduced revenue: Unpaid bills deprive municipalities and service providers of essential funding, limiting their ability to deliver services. *Service cuts: Inability to pay staff, maintain infrastructure, and cover operational costs may lead to reduced or discontinued services. *Deteriorating infrastructure: Lack of funds hinders maintenance and upgrades, causing infrastructure to deteriorate, leading to service disruptions and failures. *Increased tariffs: To compensate for lost revenue, service providers may actually raise tariffs for paying customers, creating an unfair burden. *Decreased creditworthiness: Defaulting ratepayers can harm a municipality's credit rating, making it harder to secure loans for infrastructure projects. *Reduced investment: Private investors may hesitate to invest in areas with high default rates, limiting economic growth and development. *Social and economic disparities: Defaulters may disproportionately affect vulnerable communities, exacerbating existing social and economic inequalities. *Inefficient resource allocation: Service providers may need to divert resources from other essential services to cover shortfalls, compromising overall service delivery. *Legal and administrative burdens: Pursuing debt collection can consume significant administrative resources, diverting attention from core service delivery tasks. *Undermining trust and accountability: Widespread defaulting can erode trust between citizens, municipalities, and service providers, undermining accountability and civic engagement. Emphasising the importance of timely payments and responsible financial management, Harare City Council spokesperson Stanley Gama said: "The consequences of defaulting ratepayers can have far-reaching impact or influence on the quality and reliability of essential services. "This is money that is needed to run the city operations and ensure service delivery." Gama said the city is now vigorously pursuing defaulters to pay their bills and to recover outstanding payments, while ensuring service delivery. "We have since started issuing final demands and summons to our debtors. The summons will be served on all our debtors without fear or favour," he said. "The city will also embark on a name and shame exercise to encourage debtors to settle if they fail to honour payments. Names of debtors will be posted on our social media platforms and at all district offices in Harare to pressure them to pay. "To avoid the inconveniences of being taken to court with the possibility of losing property like houses and household items, debtors are urged to immediately settle with the city. "Our banking halls are open every week day from 8am to 5pm." Harare mayor Jacob Mafume recently said the money owed to council by government and parastatals is crippling service delivery in the capital. Speaking to the media in Harare recently, Mafume said defaulters are a major cause for concern. “Ironically, the government is one of our biggest debtors, and we appreciate that the minister is aware of this issue. As you know, in this country, councils are among the few remaining service providers that operate on a post-service basis," he said. “We will compile a list of debtors and present it to the minister (former Local Government minister Winston Chitando). Since he has acknowledged the issue, we will kindly ask him to raise it during cabinet meetings." Harare Mayor Jacob Mafume Defaulting ratepayers owe City of Harare US$70m
KELVIN JAKACHIRA ZIMBABWEAN opposition activist Job Sikhala — who was recently released from prison after spending 595 days in political incarceration — will on Wednesday at 11am address the 16th Geneva Summit on Human Rights and Democracy in Switzerland. The Geneva Summit for Human Rights and Democracy is a major conference that shines a spotlight on urgent human rights situations which require global attention. It provides human rights heroes, activists and former political prisoners with a unique platform to testify about their personal struggles for democracy and freedom, while building an international community to take on dictatorship across the world. The summit is held around the main annual session of the United Nations Human Rights Council, when foreign ministers gather in Geneva, to place critical issues on the international agenda. In his scheduled presentation, Sikhala is expected to dwell on the worsening human rights situation in Zimbabwe, while also highlighting his own experience in which he languished at the Chikurubi Maximum Prison for 595 days without trial. Sikhala, the former MP for Zengeza West, is expected to pour his heart out while recounting his traumatic ordeal in almost two years of pre-trial detention at the maximum security prison. The opposition politician and prominent lawyer is expected to outline how he was arrested on 14 June 2022, while representing Moreblessing Ali, a single mother and opposition political activist, who was brutally murdered by Pius Jamba Mukandi who is linked to the ruling Zanu PF. Her body was cut into pieces and dumped into a deep well. By the time her corpse was finally found, it was decomposed. Sikhala is expected to speak about how he was arrested for taking on the Ali family's legal case, a move which resulted in his long harrowing incarceration. In his three-decade political career, Sikhala has been arrested 68 times and in nearly all of the cases, he was found innocent. Sikhala is expected to tell the international community that for 595 days, while in pre-trial incarceration, he was caged in solitary confinement day and night, while always in chains. He will talk about how he was denied food and visits from relatives, colleagues, and friends and also access to reading materials and conducting prayers. Other highlights from Sikhala’s delivery will include the period when he fell sick with severe diarrhoea and vomiting. He is expected to talk about how he was denied access to a medical doctor of his choice. The tough-talking Sikhala is also expected to recount how he fell sick for the second time and was passing blood, but was kept chained to a hospital bed for the entirety of his treatment, despite being on a sleeping dose. While in prison, Sikhala’s legal practice collapsed and when he came out of prison he found his office looted. He will talk about how the Zanu PF regime led by President Emmerson Mnangagwa destroyed him politically, socially and financially. Sikhala will further highlight how a violent drunken gang descended on the burial of Ali, singing obscenities against him and disrupting the funeral proceedings. His family also became victims of persecution, especially his wife Ellen who, according to Sikhala, was unjustly arrested for a spurious road traffic offence. Ellen was convicted and her driver's licence was confiscated. Sikhala believes this was calculated as preventing her from bringing him food while he was in prison. Her driver's licence has not yet been returned. Sikhala is expected to talk about how everyone associated with him was persecuted, highlighting how his persecution reflects the suffering of many Zimbabweans. The former student activist is also expected to talk about how the Speaker of Parliament Jacob Mudenda and members of the ruling Zanu PF have demolished Zimbabwe’s multi-party democracy by pushing opposition legislators out of the august House. The Patriotic Act, the Private Voluntary Organisations Bill, food insecurity as a result of the drought and inaccessibility of tertiary education by children of ordinary citizens are the other issues Sikhala is expected to raise tomorrow. Of course, Sikhala is expected to take advantage of the global audience to advance the cause of his recently launched National Democratic Working Group (NDWG) in Zimbabwe, a coalition of different constituency groups in which he is the chairperson and facilitator. The NDWG’s goal is to engage grassroots Zimbabweans in this national governance crisis. NewsHawks News Page 9 1ssue 175, 3 - 9 May 2024 Zimbabwean former opposition MP and political activist Job Sikhala will on Wednesday address a United Nations Geneva Summit on Human Rights and Democracy in Switzerland. Sikhala addresses UN summit
Page 10 News NewsHawks Issue 175, 3 - 9 May 2024 NATHAN GUMA INFORMATION minister Jenfan Muswere misled cabinet on the Media Alliance of Zimbabwe (Maz)'s position on principles to amend the Zimbabwe Media Commission (ZMC) Act that will expand the definition of media practitioners, create the Media Practitioners Council to regulate the profession while putting the Zimbabwe Media Commission (ZMC) — which is supposed to be independent — under the direct control of the minister. Muswere told cabinet his proposals had the full backing of the media rights organisation Maz, the ZMC and journalists — which is untrue. Maz is in fact advocating for co-regulation, under a regulatory framework that recognises self-regulation, wherein the media sector would self-regulate, with some oversight and ratification by the ZMC. The ZMC is a Chapter 12 institution alongside the Zimbabwe Electoral Commission, Zimbabwe Human Rights Commission, Zimbabwe Gender Commission and the National Peace and Reconciliation Commission. Chapter 12 institutions are constitutionally supposed to report to Parliament and not the minister, as proposed by Muswere. Section 233 of the constitution states that independent commissions have a mandate to support and entrench human rights and democracy, protect the sovereignty and interests of the people, to promote constitutionalism, to promote transparency and accountability in pubic institutions, to secure the observance of democratic values and principles by the stare and all institutions and agencies of government-controlled entities. Section 235 (1) (a) explicitly states that independent commissions “are independent, are not subject to the direction or control of anyone” while section 235 (3) says “no person may interfere with the function of the independent commissions”. Zimbabwean media practitioners are locked in a fierce debate over media regulation amid a tug-ofwar between those who want statutory regulation through the backdoor, which the minister is pushing for, as well as self-regulation and co-regulation. Statutory regulation entails the government’s involvement in enacting laws for media conduct, while self-regulation and co-regulation would see the media enforcing its own standards and both working together to maintain standards, respectively. On 30 April, cabinet approved the additional principles to amend the ZMC Act [Chapter 10:35], as presented by Muswere, which are aimed at standardising training in journalism and mass communication and expanding the definition of a media practitioner, among other aspects. Muswere told cabinet that he had the backing of Maz, a grouping consisting of the Zimbabwe Union of Journalists, Zimbabwe National Editors' Forum, Media Monitors, Media Institute of Southern Africa Zimbabwe, Voluntary Media Council of Zimbabwe, Gender and Media Connect, Media Centre, Enhancing Community Voices and the Zimbabwe Association of Community Radio Stations. “The nation is advised that the Media Practitioners’ Bill seeks to create a legal framework that outlines parameters for the regulation of the media as provided for in section 249(3) of the Constitution of Zimbabwe. This entails the creation of a Zimbabwe Media Practitioners Council, which will be responsible for the regulation and enforcement of professionalism among all media practitioners,” reads a cabinet briefing dated 30 April. “The Media Council will use delegated power from the ZMC to discipline its members. The Media Practitioners Council will also deal with conduct and ethics. Media Practitioners/Councillors will be elected and will include nominees from the Editors’ forum, public media institutions, private media institutions and academic institutions.” The additional principles also cover the ownership of mass media services in the country, notably limiting foreign ownership of mass media services in Zimbabwe. “The amendments will also standardise training in journalism and mass communication thereby entrenching professionalism. Furthermore, the definition of a media practitioner will be expanded, and a Media Council of Zimbabwe established for purposes of regulating the media,” it reads. The Media Council of Zimbabwe will therefore usurp the mandate of the ZMC. “The additional Principles also cover the ownership of Mass Media Services in the country, tenure of office for Commissioners and the reporting structure. Foreign ownership of mass media services in Zimbabwe will be limited in order to promote local content, local business and employment. “Zimbabwe Media Commissioners will serve for a one five-year term, which is renewable once, and the Commission shall report to the Minister as provided for in the Constitution. The additional principles are a results of the many consultative meetings with ZW, Maz and ZMC. The journalists support the proposed principles.” However, in its position paper seen by The NewsHawks, Maz said it is advocating self-regulation, without interference by the proposed council, however with some oversight and ratification by the ZMC. “The Media Alliance of Zimbabwe (Maz), a network of media professional associations and media support organisations, re-affirms media self-regulation as the most democratic regulatory framework for the media. The founding principles of Maz are derived from the Constitution of Zimbabwe, in particular Section 61 and 62 that expressly guarantee freedom of expression, of the media and the right to access information,” reads the position statement signed by chairperson Perfect Hlongwane. “Maz’s submission on the principle of co-regulation is informed by the constitutional provisions that guarantee freedom of expression, media freedom and the right of access to information. The co-regulation that MAZ may subscribe to given the obtaining policy context is one in which a statutory regulatory body co-exists with independent specific media self-regulatory bodies to enforce journalism ethics under codes of ethics as applicable to them. “The proposed regulatory framework would therefore recognize self-regulation, wherein the media sector would self-regulate, with some oversight and ratification by the ZMC. “As proposed, the media industry is to partially regulate itself, with a statutory back-up through ZMC. This framework allows for a regulatory framework that ensures and eliminates undue interference in the exercise of freedom of expression and other media and communication rights and freedoms.” Maz said there has to be a law that gives effect to co-regulation of the media. “Under the framework proposed by Maz, there has to be a law that gives effect to co-regulation of the media. This law will specifically recognize specific media self-regulatory bodies and mechanism. The specific media self-regulatory professional body will exercise the first instance in handling media complaints, with the ZMC being the appellant body,” it reads. “Maz suggests that the proposed framework be supported by a separate Act of Parliament that specifies the manner in which the said co-regulation would be dispensed. “The proposed framework is anchored on the principle of delegation of powers as provided for in the Constitution. The submission also derives from Section 249 of the Constitution of Zimbabwe, which provides for a law to regulate the media. In this instance, the law will be giving effect to co-regulation of the media.” Media regulation is enforced by law, rules or procedures, and these vary across the world. In Zimbabwe, the consensus is that statutory regulation alone will be harmful to journalism. Information minister misleads cabinet on media co-regulation Information minister Jenfan Muswere
News Page 11 NATHAN GUMA FINANCE minister Mthuli Ncube on Thursday told investors attending the Zimbabwe Investment Summit in Johannesburg, South Africa, that the country has had a stable financial system over the years, but his claim runs contrary to official statistics from the World Bank. The summit was aimed at bringing together leading business figures to showcase the positive developments and investment opportunities in Zimbabwe. In his speech, Ncube said Zimbabwe has maintained a stable financial environment. “Ladies and gentlemen, despite the daunting circumstances globally, the Zimbabwean financial system has remained largely stable, albeit some risks that include climate change, the lagged impacts of the Covid-19 pandemic, exchange rate and interest rate risks, among others,” he said. “Since 2021, the economy has been on a positive growth trajectory with real GDP growth of 8.5% in 2021, 6.5% in 2022, estimated growth rate of 5.5% in 2023 and the growth rate is projected slow down to 3.5% in 2024, owing to climate change disruptions resulting in drought and floods happening unprecedentedly. “This growth trajectory is in line with our economic print, the NDS 1 targets, notwithstanding significant external global shocks which were experienced during this 3-year period.” However, statistics from the World Bank have shown that Zimbabwe has been on a turbulent track since 2018, with consistency only being realised between 2010 and 2017. In April, the government introduced the ambitious Zimbabwe Gold (ZiG) currency, backed by gold and other precious minerals. However, the ZiG has plummeted on the parallel market, trading at US$1:ZiG21, while the official rate is pegged at US$1:ZiG13.56. This is despite repeated shrill assurances by the authorities that the ZiG is backed by gold and foreign exchange reserves. ZiG has been received with widespread skepticism and cynicism, with the public saying it is just another Zimbabwean dollar version by another name. The currency has suffered instant ridicule and rejection in the process, denting market confidence. Without confidence and trust, as well as key basic characteristics of money like convertibility and acceptability, the ZiG is doomed, analysts say. “Government has recently introduced a structured currency anchored on the following policy measures: (a) adoption of a market-determined exchange rate system; (b) Efficient and optimal money supply management; (c) Introduction of a new structured currency; (d) anchoring local currency on reserves backed by gold and foreign currency balances; and (e) other support measures and obligations in response to market demands. “It is envisaged that implementation of the policy measures will provide some resilience in the economy against both domestic and global shocks and headwinds, and ensure a continuous downward trend in inflation.” As reported by The NewsHawks, while the authorities claim ZiG is backed by US$100 million in foreign exchange reserves and 2.5 tonnes of gold valued at US$185 million, they have been running around in panic mode to defend the currency which is fast-losing ground to base currencies, especially the United States dollar that overwhelmingly dominates the market. Some of the rigid controls they have imposed in the market include a practically fixed exchange rate, aggressive mopping up of liquidity through market instruments, low bank withdrawal limits and virtual price controls. Foreign direct investment The country has been struggling to attract foreign direct investment, amid a deepening worsening socio-economic crisis that has seen a massive drop in standards of living. For instance, in 2022, Zimbabwe attracted US$320 million in foreign direct investment, a drop from US$718 million in 2022. Zimbabwe’s drop in foreign investment has been attributed to a lack of reform. For instance, on 25 April, US public diplomacy officer Rebecca Archer-Knepper told journalists attending a data journalism discussion that progress in bilateral reforms between the United States and Zimbabwe require reform. “There are currently 13 US companies based in Zimbabwe and another 20 companies have a US affiliation or relationship. US foreign direct investment in Zimbabwe in 2022 was US$238 million. That’s something, but not as much as many of Zimbabwe’s neighbors, and frankly it is not as much as the United States and Zimbabwe used to enjoy,” she said. “We welcome the opportunity to increase bilateral trade and investment with Zimbabwe, but progress requires reform. Some of the elements that create an enabling environment for foreign direct investment include respect for rule of law, effective measures to combat corruption, reforms for the free transfer of funds into and out of the country, and exchange of currency at market rate.” Zimbabwe has also been seeking ways of making inroads into the Commonwealth, a bloc consisting of former British colonies. The country quit the Commonwealth in 2003 after clashes between the club of mostly former British colonies and the late ex-president Robert Mugabe over policy conflicts, human rights abuses and violation of the group’s democratic values. Mugabe, who had ruled Zimbabwe from Independence in 1980, came under criticism over disputed elections and violent land seizures from white farmers between 2000 and 2001. The country has also been trailing regional neighbours, with South Africa attracting investment worth US$9.18 billion in 2022, while Mozambique attracted US$2.5 billion, according to statistics by the World Bank. Finance minister Mthuli Ncube Zimbabwe's financial system is stable, Finance minister tells foreign investors NewsHawks 1ssue 175, 3 - 9 May 2024
Page 12 News NewsHawks Issue 175, 3 - 9 May 2024 BRENNA MATENDERE AS South African general elections approach, the country’s governing ANC is increasingly undergoing a further Zanufication process as it openly accepts offers of help from Zimbabwe's ruling Zanu PF which has always won polls through manipulation, fraud, vote-rigging, intimidation and violence. South Africa goes to elections on 29 May. They are widely viewed as watershed polls as they come three decades after the fall of apartheid in 1994 and the advent of black majority rule under Nelson Mandela. Since 1980 when Zimbabwe became independent, Zanu PF has always won elections through brutality, vote-buying and electoral theft even at the height of its popularity. Only last year in August, the party stole Zimbabwe's polls through illegalities, systematic electoral manipulation and voter suppression on a massive scale. The Southern African Development Community (Sadc) rejected the outcome, but the ANC embraced it. South African President Cyril Ramaphosa is one of the few Sadc leaders who attended President Emmerson Mnangagwa's inauguration. Sadc leaders will meet in Harare in August for their annual summit and Mnangagwa will become the regional bloc's chair for a year, even though his re-election was collectively rejected by his counterparts. South Africa is supporting Zimbabwe in the process to sanitise the stolen elections. Under South Africa's founding democratic leader, Nelson Mandela, the ANC did not have close relations with Zanu PF. It maintained close ties with its old liberation ally, the now defunct Zapu. The ANC under Oliver Tambo and Zapu led by Joshua Nkomo (and their respective military wings uMkhonto weSizwe and Zipra) had close relations during the liberation struggle in the 1970s and shared trenches in Zimbabwe, Zambia and Angola. Mandela and the late former Zimbabwean president Robert Mugabe were uneasy comrades and rivals. They openly clashed on many regional issues and Zimbabwe's internal political and economic crisis later. However, Mandela's successor Thabo Mbeki forged close relations with Zanu PF even at the expense of old ties with Zapu. When Mugabe came to power in 1980, Tambo sent Mbeki to Harare to talk to him to get support for the ANC's liberation struggle effort. Mugabe assigned current Zimbabwean President Emmerson Mnangagwa to talk to Mbeki about it. Mugabe then took a decision that Zimbabwe — which had been helped by other countries in the region during the struggle — would only assist the ANC politically and diplomatically, but not materially and militarily. The new Zimbabwean leader then announced it publicly. The ANC and MK suffered a massive setback as Zapu and Zipra were no longer able to help them during the struggle. Yet Mbeki doggedly defended Mugabe and Zanu PF later at the height of Zimbabwe’s political and economic implosion, inevitably clashing with those who wanted change in the country. Zimbabwe's opposition and Western countries blamed Mbeki for protecting Mugabe and Zanu PF at home, regionally and internationally. Combined with China and Russia, South Africa ensured Mugabe and Zanu PF's political survival, even at United Nations level. In 2008, China and Russia blocked a United Nations Security Council resolution on Zimbabwe. In July that year, the UN Security Council measure intended to impose sanctions against Mugabe failed when two of the 15-member body’s permanent members — China and Russia — voted against a draft resolution that would also have imposed an arms embargo on the country, as well as a travel ban and financial freeze against the president and 13 senior government and security officials considered most responsible for the violent crisis there. The result of the Security Council’s vote was nine in favour (Belgium, Burkina Faso, Costa Rica, Croatia, France, Italy, Panama, United Kingdom, United States), to five against (China, Libya, Russia, South Africa, Vietnam), with Indonesia abstaining. The draft text would have determined, under chapter VII of the United Nations charter, that the situation in Zimbabwe posed a threat to international peace and security in the region, and would have demanded that the country’s government immediately ceased attacks against and intimidation of opposition members and supporters, while beginning a “substantive and inclusive political dialogue” between the parties with the aim of arriving at a peaceful solution that “reflects the will of the Zimbabwean people and respects the results of the 29 March elections”. Just like Zimbabwe's opposition MDC, the European Union, including Britain then, and the United States wanted Mugabe out. But Mbeki wanted change from within Zanu PF and thus helped the party to engage with the opposition to contain the situation threatening to engulf Mugabe. When Mugabe and Zanu PF lost the 2008 elections, leading to the UN Security Council move, before the late former president bounced back in June through a campaign of violence and intimidation in a run-off, Mbeki negotiated a government of national unity in Zimbabwe between Zanu PF and the opposition MDC, which lasted from 2009 to 2013. In the process, he facilitated some reforms like creation of a new constitution, but overall retention of Mugabe and Zanu PF in power was his strategy. When Zimbabwe failed to release presidential election results for six weeks in 2008, Mbeki defended and justified that as part of a "meticulous verification" process by the discredited Zimbabwe Electoral Commission. Mbeki even went further to rewrite history about how the ANC and Zanu PF related during the struggle to defend Mugabe. When Mugabe died in 2019, Mbeki sang his eulogy at a time when most Zimbabweans were blaming him for ruining the country and impoverishing its people. Mbeki's successor, Jacob Zuma, maintained good relations with Zanu PF and Mugabe, but threw him under the bus when the 2017 military coup came by refusing to rescue him as the Sadc chair. Despite Zanu PF's history of violence, manipulation and fraud, the ANC is willing to accept help from the party in the name of revolutionary solidarity and winning elections. Zimbabwean state media on Tuesday reported that Zanu PF has offered and been called on by the ANC to assist with its final stretch of campaigning ahead of South Africa’s crucial elections on 29 May. The state-controlled Herald reported that Zanu PF had “been invited by [its] colleagues in the ANC to be part of their mobilisation process in the last few days of campaigning”. Zanu PF secretary for administration Obert Mpofu told the Zimpapers flagship daily, which generally reflects government policy positions, somewhat cryptically, yet revealingly: “We have been in touch with the South African ruling party. What is happening there is an internal issue which we are closely monitoring. "I cannot rule out the fact that we can go and assist if they need assistance from us. There are pressing issues that need to be addressed by South Africans on the political developments taking place there.” This week, ANC stalwart Tokyo Sexwale was heard singing a Zanu PF liberation struggle song in broken Shona while on the campaign in Katlehong in the East Rand in Johannesburg. On Wednesday, South African Broadcasting Corporation TV reported that ANC deputy secretary-general Nomvula Mokonyane told journalists while campaigning in KwaZulu-Natal that her party had called on “African leaders” to act as election observers, while willing to learn from Zanu PF. “We must also learn from how Zanu-PF has been able to renew itself and even reclaim constituencies that in the past they have not," Mokonyane said. "Same with us, we have to reclaim and prepare a takeover of the lost metros in South Africa.” Mokonyane was referring to recent Zanu PF performances in August elections last year and subsequent by-elections where it picked more seats in Harare. However, the reality is that Zanu PF remains a rural party, exiled to its remote political heartland more than two decades ago. Zimbabweans in urban areas have long rejected Zanu PF which only survives in power through electoral fraud. By so doing, the ANC, which has had close internal liaisons with Zanu PF in recent years and months, is now willingly and enthusiastically undergoing Zanufication. Zanufication of the ANC refers to cooperation, similarities and shared interests between the South African governing party and Zimbabwe's ruling Zanu PF. Some of the similarities include: 1. Hegemonic tendencies; 2. Abuse of incumbency; 3. Corruption and cronyism; 4. Economic mismanagement 5. Hidebound nationalism and anti-imperialist rhetoric; 6. Patronage and nepotism; 7. Use of state institutions for partisan political gain; 8. Intolerance of criticism and dissent; 9. Failure to deliver basic social services; and 10. Entitlement to rule forever. Analysts say the ANC has adopted some of the same authoritarian and populist tendencies which characterise Zanu PF's failed rule in authoritarian Zimbabwe, threatening South Africa's democracy and stability. However, other critics say it is also important to note the two parties have distinct histories, contexts and circumstances, so the critical comparison should be nuanced throughout. Zanufication of the ANC on
News Page 13 REBECCA DAVIS Opposition parties have expressed concern over reports that the ANC has asked Zanu PF for assistance with its elections campaign, given the Zimbabwean ruling party’s controversial electoral record. ZIMBABWEAN state media on Tuesday broke the news that the country’s ruling party, Zanu PF, had been called on by the ANC to assist with its final stretch of campaigning ahead of South Africa’s general elections on 29 May. The Herald reported that Zanu PF had “been invited by [its] colleagues in the ANC to be part of their mobilisation process in the last few days of campaigning”. Zanu PF secretary-general Obert Mpofu told the newspaper, somewhat cryptically: “We have been in touch with the South African ruling party. What is happening there is an internal issue which we are closely monitoring. I cannot rule out the fact that we can go and assist if they need assistance from us. There are pressing issues that need to be addressed by South Africans on the political developments taking place there.” Neither Zanu PF nor the ANC responded to Daily Maverick’s request for comment on Thursday. However, SABC radio news tweeted on Thursday: “The ANC has confirmed that Zimbabwe’s ruling Zanu PF will assist the party during its election campaigns and will also be part of the observer missions during the May 29 elections.” On Wednesday, SABC TV news broadcast a clip of ANC Deputy Secretary-General Nomvula Mokonyane addressing journalists while campaigning in KwaZulu-Natal. Mokonyane confirmed that the ANC had called on “African leaders” to act as election observers. Mokonyane said, “We must also learn from how Zanu-PF has been able to renew itself and even reclaim constituencies that in the past they have not. Same with us, we have to reclaim and prepare a takeover of the lost metros in South Africa.” Opposition parties respond with outrage The South African opposition was quick to point to Zanu PF’s problematic electoral record as news spread of the development on Thursday. Mmusi Maimane’s Build One South Africa (Bosa) said it was “widely accepted” that the Zimbabwean ruling party “rigs elections in Zimbabwe to favour itself and to continue its misrule of the party”. Zanu PF “has presided over an autocratic, authoritarian and repressive regime”, Bosa said. Maimane’s party had a message for Zanu PF: “They are not welcome in South Africa.” The Democratic Alliance (DA), meanwhile, charged that the ANC’s invitation to Zanu PF to participate in its campaign programme “amounts to political interference with our elections”. The party did not elaborate on which provisions of the Electoral Act it believed the ANC had violated through this, but said it would lodge a complaint with the Electoral Commission of SA (IEC) over a “foreign political party” actively “pursuing a partisan political agenda on behalf of the ANC”. The DA noted that after Zimbabwe’s most recent elections in August 2023, which saw President Emmerson Mnangagwa win a second term, election observers, including the regional SADC Election Observer Mission, had raised concerns over the freedom and fairness of the polls. The ANC, however, endorsed the election results — and considers Zanu PF a sister party. Hypocrisy over desire for Western election observers? Some commentators suggested it was hypocritical to want election observers to monitor South Africa’s 29 May elections only if they are from Western countries. Rise Mzansi’s spokesperson, Gugu Ndima, said the DA’s controversial appeal to the US and to the European Union in March to send election observers to South Africa was disingenuous when contrasted with the party’s outrage over the Zimbabwean invitation. Ndima said both the DA and ANC’s appeals were problematic, given that both the Zimbabwean and the US political systems were marked by “elections controversy”, and given that both parties had issued direct invitations without involving the IEC. She said: “As Rise Mzansi, we fully support the standard practice of having election observers, whether they come from Zimbabwe or the US, but this must be managed by the appropriate authority, that being the Electoral Commission.” IEC should manage observer process The IEC itself has expressed a similar sentiment. IEC CEO Sy Mamabolo said the DA’s appeal to Western governments was procedurally unorthodox. “The commission believes that elections must be observed because observation gives us credibility,” Mamobolo was quoted as saying at the time. “Nonetheless, we are alive to the fact that the letter by the DA is directly to an executive in another country. That is not how ordinarily the observation process works. Often the observation works at a multilateral level: AU, SADC and so on.” At the time, ANC president Cyril Ramaphosa condemned the DA’s invitation to Western powers, saying: “For a nonstate entity to do something like that is basically saying we are mortgaging our democracy.” The ANC is, of course, also a nonstate entity. — Daily Maverick. SA parties alarmed as ANC enlists Zanu PF help for election campaign A supporter of Zimbabwean President and Zanu PF leader Emmerson Mnangagwa at an election campaign rally in Harare, Zimbabwe, on 9 August 2023. (Photo: EPA-EFE / Aaron Ufumeli) / President Cyril Ramaphosa. (Photo: Leon Neal / Getty Images) / ZANU-PF President Emmerson Mnangagwa . (Photo: EPA-EFE / Yeshiel Panchia) NewsHawks 1ssue 175, 3 - 9 May 2024
Page 14 News NewsHawks Issue 175, 3 - 9 May 2024 KELVIN JAKACHIRA IN NAIROBI AFRICAN Development Bank president Akinwumi Adesina says there is an urgent strategic imperative for financial institutions to fund credible African media organisations to ensure their survival and improve their footprint of coverage. In his keynote address at the AllAfrica Media Summit in Nairobi, Kenya, on Thursday, Adesina said most African editors say lack of adequate funding is a major problem for their operations. He said media is critical for free flow of information, protection of freedoms and development. The AllAfrica Media Leaders’ Summit brought together over 300 African media owners and operators, government officials, corporate leaders, academics, civil society champions, and development partners to discuss matters affecting the media and the critical role it should play in shaping Africa’s future. The NewsHawks attended the summit. Adesina said African media needs funding and scale to have a global footprint to tell the continent’s stories properly and effectively. "Thank you for this opportunity to address you all as you gather to discuss the role of the media in Africa under the theme 'Re-engineering African Media in Times of Critical Transformation.' "An independent, professional, responsible, and thriving media is critical for freedom of speech, the development of democracy, and the strengthening of inclusive societies," Adesina said. "It has been a tough ride for media establishments and enterprises across Africa since the Covid-19 pandemic. The unprecedented pandemic disrupted business models, altered audience relationships, squeezed revenues, and tested professional values and public trust." Adesina added: "We live in dynamic times. Technology continues to evolve rapidly. The rise of the Internet, digital and social media platforms, has shifted the focus of audiences from a reliance on radio, TV, and print publications. "Two thirds of the global population now turn to the Internet, social media and a plethora of digital media and apps, the Internet for their access to real-time news, information, and entertainment. "This dynamic shift is largely fueled by the widespread use of mobile phones. "By 2030, six billion people globally will have access to smartphones. Of these, 692 million will be in Africa. "These transformative changes have deregulated the creation and distribution of news content, including content created by bots, AI, and deepfakes. "In short, it is a whole new world where the lines between fact and fiction can become blurred. "In the quest for market share and the dominance of social media content, truly positive developments in Africa get missing amid the chatter, as unfiltered information is spewed to informed and uninformed audiences alike. "In this new ecosystem, audiences have a tendency not to critically evaluate and reflect on the content of ‘news’ and are often unable to discern or chart a clear narrative for Africa amid the cloud of information and misinformation. "Subsequently, positive, and good news on Africa often goes missing, under-reported or even sidelined. "As president of the African Development Bank Group with the mandate to mobilise resources for Africa’s development, I am acutely aware of the importance of information, how it is produced, who produces it, how it is used, how it is interpreted and its impact." Top banker contemplates new African media funding model African Development Bank president Akinwumi Adesina
News Page 15 Keynote Address by African Development Bank president Akinwumi Adesina to the All Africa Media Leaders’ Summit Your Excellency, President Ruto, President of the Republic of Kenya, Honourable Ministers and Cabinet Secretaries, Members of the Diplomatic Corps, Eminent media business leaders and CEOs, Distinguished ladies and gentlemen, Good morning, everyone. I am delighted to address you today at this AllAfrica Media Leaders’ Summit. I wish to congratulate All Africa Media, and its Founder, Amadou Mahtar Ba for his dedication and commitment towards Africa. I also commend media and communication leaders across Africa for all you do in telling and shaping the African narrative. This gathering is happening at a period of great challenge for Africa, and especially for Kenya, and several other African countries including Tanzania, Rwanda, and Burundi, that have been devastated recently by torrential storms and flooding. So many people have lost their lives, tragically. To you President Ruto, and the government and people of Kenya, I wish to offer our sincere condolences, and sympathies. May God comfort the families and loved ones of the bereaved and grant you the fortitude to heal recover and rebuild. I would like to request that we please stand for a moment of silence in honor and memory of those who have lost their lives in the devastating floods. [SILENCE] The African Development Bank Group stands with Kenya as it rebuilds. You can count on our unalloyed support. You will heal. You will recover. You will rebuild. And you will prosper, despite the challenges of this climate-induced devastation, which you did not cause, but which you and the rest of Africa suffer from disproportionally. Thank you for this opportunity to address you all as you gather to discuss the role of the media in Africa under the theme “Re-engineering African Media in Times of Critical Transformation.” An independent, professional, responsible, and thriving media is critical for freedom of speech, the development of democracy, and the strengthening of inclusive societies. It has been a tough ride for media establishments and enterprises across Africa since the Covid-19 pandemic. The unprecedented pandemic disrupted business models, altered audience relationships, squeezed revenues, and tested professional values and public trust. We live in dynamic times. Technology continues to evolve rapidly. The rise of the Internet, digital and social media platforms, has shifted the focus of audiences from a reliance on radio, TV, and print publications. Two thirds of the global population now turn to the Internet, social media and a plethora of digital media and apps, the Internet for their access to real time news, information, and entertainment. This dynamic shift is largely fueled by the widespread use of mobile phones. By 2030, 6 billion people globally will have access to smartphones. Of these, 692 million will be in Africa. These transformative changes have deregulated the creation and distribution of news content, including content created by bots, AI, and deep fakes. In short, it is a whole new world where the lines between fact and fiction can become blurred. In the quest for market share and the dominance of social media content, truly positive developments in Africa get missing amid the chatter, as unfiltered information is spewed to informed and uninformed audiences alike. In this new ecosystem, audiences have a tendency not to critically evaluate and reflect on the content of ‘news’ and are often unable to discern or chart a clear narrative for Africa amid the cloud of information and misinformation. Subsequently, positive, and good news on Africa often goes missing, under reported or even sidelined. As President of the African Development Bank Group with the mandate to mobilize resources for Africa’s development, I am acutely aware of the importance of information, how it is produced, who produces it, how it is used, how it is interpreted and its impact. We have done an excellent job as a bank in maintaining our AAA rating. In fact, we have been the only AAA rated financial institution on the continent over the past 9 years that I have been President of the Bank. My staff, the board, shareholders, and I, work ceaselessly to ensure our rating remains intact. Only then, can we provide our 54 regional member countries with concessional finance to accelerate development. Anyone familiar with the rigor of global credit rating agencies will know that several factors, including risk management, liquidity, capital adequacy, portfolio management, transparency and good governance are taken into consideration. The result of this for us as a bank, is a AAA rating by all the 5 global credit rating agencies. This is critical for the bank to access global capital markets and to source cheaper longterm financing for Africa’s development. Just a month ago, the bank launched a landmark hybrid capital for $750 million, which was rated AAA by all three global credit rating agencies and oversubscribed 8 times over by investors from around the world. This marks a first ever for any multilateral development bank globally. Why is this important? Because it was done by an African institution! It changes perceptions, it shows leadership, innovation, and it adds to the positive news narrative coming out of Africa. Two years ago, the African Development Bank was ranked as the best multilateral development bank in the world by Global Finance. It was also ranked as the most transparent financial institution in the world, Publish What You Fund. Also, The African Development Fund, the Bank’s concessional financing institution, was ranked by the Washington DC-based Center for Global Development as the second best in the world, above all 49 concessional financing institutions in all OECD countries. This and other positive developments are not the kind of news Africa is known for. The question is, how many news organizations know of or reported this? In most cases, the good news emanating out of Africa tends to be minimized or under-reported, in favor of magnifying challenges. The news on Africa, either from within or shaped from outside, is often full of stereotypes, negativism and old and tired tropes, misconceptions, misperceptions, or plain entrenched biases. I will make bold to say that one of the critical challenges facing the continent is that most of the news on it is in sync with age-old stereotypes, such as war, conflicts, famine, disasters. A 2021 survey by Africa No Filter Report on ‘How African Media Covers Africa’ found that while over 80% indicated that Africa news is important to them, 50% accepted that their news and articles on Africa conformed to stereotypes. It further showed that 37% of surveyed editors indicated a lack of interest by advertisers on African news. But they should have interest in Africa! Despite the challenges facing the global economy, Africa posted a growth rate of 3.2% in 2023, which was above the global average of 3%, showing resilience amid multiple crises in the world, from geo-political risks, climate change, global inflation, disruption of supply chains and rising debt challenges. The African Development Bank’s Africa Economic Outlook (2023) shows that 11 out of the 20 fastest growing economies in the world are in Africa. Last week, at the World Economic Forum in Riyadh, Saudi Arabia, I had the pleasure of meeting with the founder of a major company in the US which specializes in public image management for countries, and I shared with her the positive developments from the work of the African Development Bank in Africa. She was so impressed and quipped “why has this not been well covered in the western media?” Your guess is as good as mine. African news, except negative, is not prioritized. How can positive news on Africa compare to the preponderance of reports on crime conflicts, crisis, and challenges. Africa No Filter Report calls this “if it bleeds, it leads.” Others in the business cynically say, “If it doesn’t smell it doesn’t sell.” This should not be. At least for us in Africa. Where I come from, we have a saying. “What you call yourself, is the name others will subscribe to you.” For as long as we continually denigrate ourselves and play into the hands of those who control the narrative about Africa, for as long will we be stuck with a label that does not belong to us. It is time for change. Prejudices, misinformation, stereotypes about Africa, and the never-ending mantra of negative news have multiple effects. It negatively impacts the psyche, beliefs, and hopes of the youth, with the attendant result being a perception that their destiny lies somewhere else but not on the continent. The negative imageries, strongly impacts investor confidence, scares capital, raises the risk profiles of countries, and worse, contributes to the socalled Africa risk premium that makes the cost of capital for investment 3–4 times higher than in other parts of the world. How often have you heard that investing in Africa is risky? Yes, Africa has risks but the question is: is Africa riskier than other parts of the world? Well, perception is not reality. Moody’s Analytics conducted a 14-year survey on cumulative default rates on infrastructure loans in various regions of the world. The results show that default rate in Africa was 1.9%, while default rate in North America was 6.6%; Latin America, 10%; Eastern Europe, 12%; and Western Asia, 4.3%. Yet look at the yields on bonds issued by African countries and countries in Latin America: for the same credit rating of similar BB-rated countries in the two regions, the one in Africa pays 1.1% interest rate higher than those in Latin America. So, this year, Africa will pay $74 billion in loan service payments, a rise from $17 billion in 2010. The United Nations Development Program (UNDP) found that if African countries were transparently and fairly NewsHawks 1ssue 175, 3 - 9 May 2024
Page 16 News NewsHawks Issue 175, 3 - 9 May 2024 treated in ratings by credit risk agencies, they would save at least $75 billion in interest payments. How many news agencies or editors have had their reporters research these biases and report on them to raise awareness about the cost of these biases for African countries? There is a deluge of misinformation on Africa, and it is increasing at accelerated pace, driven by the digital revolution and the transition from the mainstream media houses to social media. As media business models radically shift away from conventional advertisement and subscription driven models, the potential for even more negative and stereotypical biases will increase. The dominance of Facebook, Instagram, Twitter (now “X”), and YouTube; the rise of bots, trolls, and the use of artificial intelligence to shape and influence content, challenges the notions of media independence, transparency, and editorial control. While the fragmentation of the media ecosystem has expanded space for self-expression, it has also created a new slew of problems, including foreign interference in shaping the African narrative. In an insightful piece by the Africa Center for Strategic Studies in March 2024, titled ‘Mapping a surge of disinformation in Africa’ it states, “disinformation campaigns seeking to manipulate African information systems have surged nearly four-fold since 2022, triggering destabilizing and antidemocratic consequences.” This rise of disinformation has been linked to efforts to influence and muddle up political discourse, incite civil unrests, build distrust of governments, promote ethnic and religious divisions, as well as undermine economic, social, and political stability of countries. Just one month ago, we witnessed the challenges facing Senegal as it approached its elections. The media was awash with all manners of negative news. Some proclaimed “the bastion of democracy in Africa is falling.” Others blared “democracy is failing in Africa.” While there were challenges, Senegal had a peaceful election and transition of power from the ruling party to the opposition party. In an election with 19 candidates, results were announced within hours, and all candidates including the incumbent, congratulated the winner, with no dissent or legal challenges. The sitting President invited the projected winner of the elections to the palace even before the full results were announced. The institutions worked, from the electoral commission, the legislature, the constitutional court, and the Presidency, with no interference in the process. Negative narratives dominated the media, yet here was an African country, despite challenges that had just delivered a globally respected election and executed a highly commendable transfer of power—a model for the rest of Africa. I was in Dakar one day after the presidential elections, and was surprised at the level of serenity, with hardly anyone on the streets jubilating or demonstrating. I asked the head of one of the election observer missions about his views on the elections, and he said, “I have monitored elections within and outside of Africa, and I have never seen an election better conducted than this. Yet, this is Africa!” So, what does all this mean for development? First, the media has a critically important role, by being fair, objective, inquisitive, investigative yes, but also by being a catalyst for development, and promoting positive news about tangible African accomplishments, achievements, and developments. This is especially true of news items that we know will be consigned to the dustbin by foreign editors, and journalists who work for them on the continent. Unfortunately, due to a lack of resources or opportunities, African journalists working as correspondents for foreign news organisations, many times only report stories that fit the stereotypes of the agencies they work for and the audiences they primarily cater to. The Africa No-Filter survey found that foreign media houses do not devote time and resources to building networks of correspondents on the ground that can properly report stories but rely rather on western agencies to work for them. With just 19% of their stories emanating from agencies that are based in Africa, biased reporting on Africa is highly prevalent as the bulk of stories and reports about the continent are written by non-Africans. Second, the lack of financing has been cited by more than 92% of editors and journalists and media houses as a constraint to covering stories in Africa. I would propose that there is a strategic business case for financial institutions to put significant resources together to finance a credible African media institution with a global footprint. Development news must be properly prioritized and disseminated. To attract even more foreign direct investments, positive stories of African investment opportunities need to be well showcased, as they unfortunately do not get sufficient coverage, if any at all, in western media. I would therefore like to propose that the African Development Bank, Africa Import-Export Bank, and all regional financial institutions pull resources to support the emergence of a globally respected African media company that will position the news of Africa to the world. Africa must shape its own narrative, and not depend on what others think about it or the perspectives they prefer to share about it, its achievements, and opportunities. Third, the development institutions in Africa should set up a joint repository of verified and standardized stories, videos and content that will make it easier to aggregate and write stories on what’s being achieved in Africa. This will lower the search costs of news houses for stories on what is working in Africa. Fourth, to recognize and profile African journalists, correspondents and media houses that promote Africa with unbiased stories, the African Development Bank will work with the All Africa Media and African corporates to establish the Annual Africa Media Prize. Fifth, the African Development Bank, working with partners and the African corporates will also help establish the African Journalists’ and Correspondents’ Fellowships to help build and strengthen the capacities of journalists and correspondents working on Africa. Two weeks from now, Africa and the world will gather right here in Nairobi for the 59th Annual Meetings of the African Development Bank, from May 27–31. It will be an occasion to also celebrate 60 years of the establishment of the African Development Bank. In those 60 years, we have grown from humble beginnings to what we are today: a globally respected financial institution setting the pace in the world of global development finance. Together let us continue to promote Africa. I call on you as leader of the media, become the vuvuzelas for Africa! Tell Africa’s positive stories. Let it be heard from the mountain tops of Kilimanjaro of Tanzania to the Rift valley of Kenya; from the Table Mountain of Cape Town to the highest point of Mount Katrina in Egypt; from the deserts of the Sahel to the vast forests of the Congo; from the dry air of the Sahara to the Atlantic Ocean. As the renowned Africanist writer Chinua Achebe wrote, “Until the lions have their own historians, the history of the hunt will always glorify the hunter.” The New York Times said the world is becoming more African. I agree! Now, Africans must tell their own stories. Not the stories that others write about us. Not the stories of a post-colonial media mindset Not the stories impregnated with Cold War divisionism. Not biased stories intended or unintended. But the stories of us, as Africans, written by Africans, about Africa, and confidently projected to the world. Be the vuvuzelas of Africa! Thank you very much.
NATHAN GUMA ZIMBABWE is still lagging behind in straightening its human rights record, with a new report by the United States Bureau of Democracy, Human Rights, and Labour showing a significant increase in corruption and human rights abuses. These include extrajudicial killings and life-threatening prison conditions. The country has been struggling to clear its human rights record to attract foreign direct investment, amid a deteriorating socio-economic situation. According to the report titled, 2023 Country Reports on Human Rights Practices: Zimbabwe, the government has done little to address corruption, with indications of petty and grand corruption. Petty corruption is the everyday abuse of entrusted power by low- to mid-level public officials such as by police and local officials and an abuse of high-level power by political elites. The report says while the country has specialised anti-corruption courts in all 10 provinces, challenges, there have been perceptions of political interference, delays in concluding high-profile cases, and a low quality of investigations. “In the case of government officials, experts described the problem as 'catch and release,' where the Zimbabwe Anti-Corruption Commission (Zacc) arrested some corrupt officials but did not secure convictions through the National Prosecuting Authority (NPA), which was responsible for referring all cases to the anti-corruption courts,” it reads. “The constitution mandated that Zacc conduct corruption investigations. According to its annual report, ZACC assessed a total of 684 complaints of suspected corruption cases in 2022, reflecting a 38 percent decrease from 2021. While Zacc had the power to arrest, it did not have the power to prosecute.” The report has also flagged the government’s failure to investigate grand corruption cases, for instance, Al Jazeera’s four-part investigation titled ‘Gold Mafia’ which showed the involvement of high-ranking officials in smuggling gold and money laundering. The hard-hitting documentary exposes how well-connected political elites have been smuggling the country’s gold, while laundering money through South African and United Arab Emirates (UAE) banks. The racket also included several people, all of them linked to President Emmerson Mnangagwa, including Ambassador-at-Large Uebert Angel and Zimbabwe Miners’ Federation president Henrietta Rushwaya, among others. Prisons The report has also flagged Zimbabwe’s prisons, as harsh and life threatening due to overcrowding, food shortages, lack of water, lice infestations, shortage of blankets in the cold season, physical mistreatment of prisoners, and lack of access to personal hygiene products, as well as inadequate sanitary conditions and medical care. “Conditions in prisons, jails, and detention centres were harsh,” it says. “NGOs reported most prisons were overcrowded due to outdated infrastructure and judicial backlogs.” According to a December 2022 parliamentary report, Harare Remand Prison, with a capacity of 900 inmates, was housing nearly 1 500 inmates and Bindura Prison, with a capacity of 20, was housing 87 inmates. “In August, Al Jazeera reported that former inmates of the Harare Remand facility claimed they witnessed or suffered violence at the hands of prison guards, with one stating, ‘Not a day went by without someone getting beaten up for no apparent reason. It was the order of the day’,” it reads. According to the report, several dozen children younger than the age of four living with their incarcerated mothers shared their mothers’ food allocation, rather than receiving their own. Killings The report has also flagged the Zimbabwean government for failing to investigate illegal and politically motivated killings. For instance, on 15 September, Persuade Mandara was reportedly killed in Mashonaland Central province by Zimbabwe Republic Police (ZRP). According to the Human Rights NGO Forum, officers investigating his connection with a grain theft case broke into Mandara’s home, assaulted him with burning logs that were being used for cooking, and fired gunshots. The officers took the severely injured Mandara to the police station, and he died in their custody. On 11 November, opposition CCC activist Tapfumaneyi Masaya was also abducted and killed while he was campaigning for Munyaradzi Hafakutizwi in Harare's Mabvuku constituency. Kufahakutizwi, who had won the parliamentary seat in the August 2023 general elections was controversially recalled, together with other legislators by self-proclaimed CCC secretary-general Sengezo Tshabangu. Masaya was found dead three days later. The police claimed they were investigating the incident. Retribution against human rights defenders According to the report, the government harassed NGOs and specific persons it believed would expose abuses by government personnel or oppose government policies. “NGOs reported surveillance missions by unidentified individuals visiting and occasionally raiding NGO offices,” it reads. “According to many human rights NGOs, the state viewed governance, human rights, and media NGOs as regime-change agents supported by the West. Human rights lawyers were also targeted.” On 4 September, Doug Coltart and Tapiwa Muchineripi with the Zimbabwe Lawyers for Human Rights were arrested while representing two CCC members recovering in a hospital from abduction and torture by unknown actors. Government-controlled media as well as government-associated social media handles disparaged and attacked human rights groups, especially those believed to be funded by Western embassies or governments. “The government did not take credible steps to identify, investigate, or prosecute officials who may have committed human rights abuses,” it reads. “There were credible reports of human rights abuses by criminal gangs in the artisanal and small-scale mining sector. Authorities did not systematically investigate or prosecute such abuses.” Elections Human rights abuses have also been flagged to have increased during the electoral period. For instance, the report has indicated how Forever Associates Zimbabwe (Faz), a group linked to the Central Intelligence Organisation, intimidated voters, particularly in rural areas. “The group was reported to have deployed to approximately 36 000 villages. Faz set up 'exit polls' outside of many polling stations where staff requested voters’ names and ID numbers,” it says. “Community organisations reported Faz intimidated residents to vote in a particular manner and warned that it would be easy to determine who voted against certain parties.” “The ZRP also conducted raids on members of the Election Resource Centre (ERC) and Zimbabwe Election Support Network (Zesn) for allegedly planning 'to illegally announce' election results. The ZRP also confiscated computers and laptops and visited the homes of two local observers.” Zimbabwe human rights record remains appalling NewsHawks News Page 17 1ssue 175, 3 - 9 May 2024
Page 18 News NewsHawks Issue 175, 3 - 9 May 2024 NATHAN GUMA THE Zimbabwe Smallholder and Organic Farmers' Forum (Zimsoff) has urged farmers to use the United Nations Declaration on the Rights of Peasants (UNDROP) to push back against injustices that include displacement from ancestral land and discrimination. The UNDROP, which was adopted by the United Nations in 2018, protects the rights of peasants, small-scale farmers, agricultural workers, indigenous peoples, and other rural populations. Several villagers across the country are facing displacement to pave way for national projects, with no clear plan on compensation. In February, the Zimbabwe Lawyers for Human Rights (ZLHR) announced it was representing 327 villagers from Mahachi area in Chipinge, Manicaland province, who were facing eviction amid accusations of illegally settling in the area. Up to 80 of the villagers from Munyokowere Village, in ward 5 of Chipinge Rural District Council under Chief Mutema, have also been accused of illegally settling in the area. Zimsoff says while many smallholder farmers are facing displacement across the country, the UNDROP provides for their protection. The organisation has been training trainers who will educate other smallholder farmers on the UNDROP across the country. “We have 27 articles in the document (UNDROP). These articles outline the right given to farmers. Let us look at one of them. I will take article 17, which gives the right to land. If a farmer is being moved from their land, they can defend themselves using this document,” said Delmah Ndlovu, the Zimsoff national chairperson. “If they are claiming their land in Zimbabwe and they can prove ‘my ancestors were born here and this is our land’, they can claim it and the government is obligated to give it to them using this document. So it gives people power to own land, to be on the land.” “So, it gives people power to own land, and to be on the land. Knowing that makes you know that I have the right to be protected when you are being pushed. We have realised that over the past years, the Chinese have been coming with mining ventures. Before I am moved, I must be really informed and must be told where I should go.” Zimbabwe signed the UNDROP in 2018. Article 17 of the charter says that peasants and other people living in rural areas have the right to land, individually or collectively, including the right to have access to, sustainably use and manage land and the water bodies, coastal seas, fisheries, pastures and forests therein, to achieve an adequate standard of living, to have a place to live in security, peace and dignity and to develop their cultures. “2. States shall take appropriate measures to remove and prohibit all forms of discrimination relating to the right to land, including those resulting from change of marital status, lack of legal capacity or lack of access to economic resources. 3. States shall take appropriate measures to provide legal recognition for land tenure rights, including customary land tenure rights not currently protected by law, recognizing the existence of different models and systems,” it reads. More families are facing displacement across the country. For instance, families from Manhize’s Mushenjere Village who are settled at Inhoek Farm in Mvuma are facing displacement from land they have occupied for over 40 years, as concerns continue to be raised over weaknesses in the land tenure system that have seen mass evictions. Since 2021, more than 100 families from Manhize’s Mushenjere Village have lost their land to Disco’s operations, with the villagers, once self-sufficient, now unable to produce enough food for the family unit, according to a governance watchdog, the Centre for Research and Development (CRD). Since 2021, more than 101 families from Manhize’s Mushenjere Village have lost their land to Disco’s operations, with villagers, once self-sufficient, now unable to produce food for the family unit. 138 families from Kwaedza Village are also facing a similar predicament as Disco has already set pegs in their village. Victims who spoke to The NewsHawks say they are harvesting way smaller yields as most of their farmland has been taken over by the company. Woes are also continuing to mount for the villagers in the Chilonga area of Chiredzi district, who are facing renewed efforts to evict them from their ancestral land, to make way for Dendairy’s controversial irrigation project to cultivate cattle fodder. The land in question has been inhabited by the Hlengwe Xangani (Chilonga) community since the pre-1890 era, downstream of Tugwi-Mukosi Dam. Due to abundant water, the government has earmarked over 12 000 hectares for an irrigation project. In some instances, villagers have been successful. For instance, villagers in Mutoko district, Mashonaland East province, last year heaved a sigh of relief after a magistrates’ court ordered Chinese mining company Labenmon Investments to vacate their land, after it emerged that the firm had flouted legal procedures in acquiring environmental impact assessment (EIA) certification. Labenmon had pegged out 150 hectares of land, entirely covering the four villages, encompassing grazing pasture, cultivation land and traditional and cultural shrines, raising an outcry. The villagers said the company’s mining operations were likely to expose locals to unmitigated environmental hazards as the firm did not have a proper EIA. Zimsoff says smallholder farmers can defend themselves if they know the legal instruments that can protect them in times of distress. UN instrument can protect villagers against eviction
NATHAN GUMA REGIONAL media editors have condemned the proposed amendment of the Zimbabwe Media Commission (ZMC) Act, which seeks to create a council to regulate the media, saying this is likely to bring back clauses of the draconian Access to Information and Protection of Privacy Act (Aippa). The country repealed Aippa in 2019, discarding an undemocratic law which had a similar council designed to control the media. Information minister Jenfan Muswere misled cabinet on the Media Alliance of Zimbabwe (Maz)'s position on principles to amend the Zimbabwe Media Commission (ZMC) Act that will expand the definition of media practitioners, create the Media Practitioners Council to regulate the profession while putting the Zimbabwe Media Commission (ZMC) — which is supposed to be independent — under the direct control of the minister. Muswere told cabinet his proposals had the backing of the Media Alliance of Zimbabwe (Maz), the Zimbabwe Media Commission (ZMC) and journalists, which is not true. The additional principles also cover the ownership of mass media services in the country, notably limiting foreign ownership of mass media services in Zimbabwe. While the principles are proposing statutory regulation, Maz is in fact advocating for co-regulation, under a regulatory framework that recognises self-regulation, wherein the media sector would self-regulate, with some oversight and ratification by the ZMC. “The Media Alliance of Zimbabwe (Maz), a network of media professional associations and media support organisations, re-affirms media self-regulation as the most democratic regulatory framework for the media. The founding principles of Maz are derived from the constitution of Zimbabwe, in particular section 61 and 62 that expressly guarantee freedom of expression, of the media and the right to access information,” reads the position statement signed by chairperson Perfect Hlongwane. “Maz’s submission on the principle of co-regulation is informed by the constitutional provisions that guarantee freedom of expression, media freedom and the right of access to information. The co-regulation that Maz may subscribe to given the obtaining policy context is one in which a statutory regulatory body co-exists with independent specific media self-regulatory bodies to enforce journalism ethics under codes of ethics as applicable to them. “The proposed regulatory framework would therefore recognise self-regulation, wherein the media sector would self-regulate, with some oversight and ratification by the ZMC. In a statement this week, SAEF said that government’s proposals are a threat to media freedom as they are going to bring statutory regulation. “The Southern African Editors Forum (SAEF) notes with serious concern the Zimbabwe Cabinet principles on the amendment of the Zimbabwe Media Commission Act and the proposed Media Practitioners Bill that are meant to effect media co-regulation and professionalise the media in Zimbabwe,” reads the statement. “SAEF implores the Zimbabwe government to reconsider the proposed position in order to enhance Press freedoms in the country and to ensure that the agreed co-regulation principle by government and the media sector is properly implemented.” SAEF said if applied and enacted into law as announced, it will further entrench statutory regulation of the media in Zimbabwe and smuggle back into law clauses from the repealed Access to information and Protection of Privacy Act (Aippa). A similarly suggested Zimbabwe Media Council was set up under Aippa on 13 September 2012 and was roundly condemned and rejected by the media sector and ultimately it never saw the light of day. “It would be a tragedy for the government to seek to revive Aippa through resuscitating this ghost from the previous law,” SAEF said. “SAEF urges the Zimbabwe government to undertake a broad consultative process that will involve media stakeholders, media civil society organisations and media regulatory bodies in order to reach a common position on the democratic implementation of co-regulation.” The regional grouping urged the government to adopt a holistic and inclusive model anchored on co-regulation — which means an industry-led regulatory system supported by the government, especially on legislative arrangements. “For the current process to yield the desired results, there is need for clarity of concept, thought and implementation of the co-regulation model. SAEF agrees with Zinef’s position that government should revisit the process to help regulate the media in a progressive — and not stifling — way as this may be the case with the current cabinet proposals which do not represent the letter and spirit of the wide consultations by stakeholders,” SAEF said. “As SAEF we are prepared to walk the media freedoms journey with the Zimbabwe government and media practitioners in Zimbabwe.” SAEF said it is in support of the Maz position on co-regulation. While the principles are going to see the setting up of a council to regulate the media, SAEF said it is in support of the existing complaints handling mechanism and code of conduct which are are effective, and are media industry-led. “This is the same position of Maz, which reaffirms in its position paper its commitment to self-regulation as the most democratic regulatory framework but subscribes to the consensus position of co-regulation reached between government and media stakeholders,” SAEF said. “SAEF supports the Maz position on co-regulation in full and warns that proceeding with thecabinet principles in their current state will be against the co-regulation principles agreed to between the government and the media sector.” Regional editors slam govt attempts to control media News Page 19 Perfect Hlongwane NewsHawks 1ssue 175, 3 - 9 May 2024
Page 20 News NewsHawks Issue 175, 3 - 9 May 2024 BRENNA MATENDERE MEMBERS of Parliament on Wednesday cornered Transport minister Felix Mhona over a trend in which contractors engaged by the government to rehabilitate roads abandon projects mid-way or do a shoddy job at the expense of taxpayers. Parliamentarians said this was happening in Harare mostly on the construction of roads leading to the New Parliament in Mt Hampden, but has been common in other parts of the country. Gutu West MP Kudakwashe Mananzva asked Mhona to explain government policy on the issue. “Minister, we see some of the roads will be under construction and they are abandoned midway before rain starts. What will be the problem?” he asked. Speaker of Parliament Jacob Mudenda asked if he was referring to Harare's inner roads leading to Parliament or in general in which he clarified he meant throughout the country. In response, Mhona said the government is changing policy on road works. “Way back, we used to have some other companies which used to take a tender to develop roads and they do it halfway. Now, in the Second Republic, we have a programme whereby, if the company bids for a tender and does it halfway, we do not pay them the remaining balance. We agreed that they have to complete the project and then we pay them. “Sometimes we know that we may face some difficulties with the budget we have towards road construction as a country, but we do not expect to do it halfway without completing the road construction. I promise you that in all the areas where we have roads which are under construction, we will complete in time,” he said. Several MPs stood for follow-up questions. Nyanga South MP Supa Mandiwanzira asked Mhona to clarify what the government is doing to ensure contractors deliver on quality of roads and singled out the shoddily done Lorraine Drive in Harare. “My supplementary question relates to the standard and quality of the roads that are being made. Because of the great work that is being done to fix and make the roads to this Parliament Building, we are now having to use some roads that we did not use often. We know that some of these roads were recently upgraded on government space. For instance, this afternoon, I drove through Lorraine Drive, but the state of that road does not indicate that this road was recently upgraded. “My question to the honourable minister is, to what extent is the ministry supervising the standard and the quality of the roads that are being built? Are there funds being retained on the amounts that are due to the contractors that within a specific period, if the road does not stand or withstand the demands of time, those resources are used to fix those roads?” he asked. Mhona tried to water down the issue. “Just like in a normal scenario where at times we need to take ownership, in this particular case, the honourable member has raised and indicated a particular road, which is Lorraine Drive. For the past weeks, it was topical during our debates and social media circulations where the road failed dismally. As a ministry, we have summoned the contractor, who has also acknowledged that, yes, the road failed. For us, we are saying under the Second Republic, we do not pay when the work is not done properly. “We have instructed the contractor to work on the road and take corrective measures where the system failed and the type of bituminous products used collapsed. He has learnt from that experience and it is not the only road that contractor has been working on. If we see, he has been attending to a number of roads across the country,” he said. Mhona pointed out that the terrain and the nature of the soils and how the road collapsed is something that government interrogated. “We have agreed that the contractor will take remedial action. We are saying this because we have our own engineers and the public is there to take us to account. We are grateful that, yes, we are taking correction and we endavour, as we progress and construct our roads, so that we do not have such recurrence in terms of road maintenance,” he said. Minister Mhona was at pains to explain the timeframe for the corrective measures. “The contractor is working on Nemakonde Road, which is Lomagundi Road. As soon as we open in just a few weeks’ time, then we will revert to Lorraine Drive. Now, it is being used as a detour, as a diversion route, but as soon as we open the link to avoid congesting the traffic, then the contractor will revert to Lorraine Drive. “I can say after this month, you will see us back, rehabilitating Lorraine Drive because we will be having access to the Nemakonde Road, which is Lomagundi,” he said. Budiriro South MP Darlington Chigumbu piled the pressure on Mhona. “What is government policy pertaining to the timeframe that is required for roadworks to be completed? We have seen instances whereby contractors start work and they take long to finish. Do you have a policy that speaks to timeframes to say when work starts, it has to be finished within a certain period? I can give an example whereby we saw recently where less than one kilometre stretch in Southerton is taking ages to be completed,” he asked. Mhona asked that the MP engage him directly so that “we ascertain why the stretch that he is talking about has taken long to complete so that we address it accordingly.” In 2022, The NewsHawks reported that Kwekwe City Council in the Midlands had failed to account for millions of dollars poured into the local authority for the rehabilitation of roads amid revelations that politically connected companies were contracted without following procurement procedures upon which they abandoned works midway. A schedule obtained by this publication from the Zimbabwe National Roads Administration (Zinara) revealed that Kwekwe council was allocated a total of ZW$68 258 834.18 (US$400 000) under the 2022 first-quarter disbursement of the Emergency Roads Rehabilitation Programme (ERRP 2). The money was part of a total fund of ZW$5 billion (US$29 million) distributed countrywide to towns and rural district councils for the rehabilitation of roads. However, the companies did shoddy jobs which saw former Mbizo MP Settlement Chikwinya taking Transport minister Mhona to task over the matter. Lawmakers demand answers on never-ending roadworks Transport minister Felix Mhona
NewsHawks Page 21 1ssue 175, 3 - 9 May 2024 Parliament demands answers on usurious money transfer tax RUVIMBO MUCHENJE THE increase in the intermediated money transfer tax (IMTT) from 1% to 2% on US dollar transactions has been criticised by legislators as a counter productive measure which will discourage people from banking their foreign currency. Through Statutory Instrument 80 of 2024, Finance minister Mthuli Ncube increased the IMTT from 1% to 2% with effect from 4 April 2024. During Wednesday’s question-and-answer session in the National Assembly, Women’s quota MP for Manicaland Miriam Matinenga asked deputy minister of Finance Kuda Munangagwa (pictured) on the rationale behind increasing the tax, given the rise in robberies targetted at those who are keeping their money at home. “Now that we have the new currency, ZiG, does the IMTT of 2% encourage the use of ZiG, especially when we take cognisance of the fact that we need to encourage the use of the banking sector and avoid robberies which are rampant in this country? I am directing this question to the minister of Finance,” queried Matinenga. Recent reports by the Zimbabwe Republic Police show that an average of US$10 000 is stolen by armed robbers from various homes, schools and companies across the country. The police have urged people to bank to avoid robberies, but the IMTT increase might discourage these efforts. “Now that we have increased the IMTT for the US dollar yet you want to encourage the use of the banking sector, do you not think that you are encouraging people to keep money in their homes?” he asked. Mnangagwa acknowledged that the net effect could be discouraging members of the public from banking their money. “I think that is a fair comment. Increasing the transaction cost does indeed dissuade the general populace from transacting electronically, but this is something we have had to deeply introspect upon trying to balance the need to collect revenue versus the effort of allowing everybody to be financially included. “At this juncture, we are still leaning towards the revenue collection necessity and we will continue to monitor as we go along, whether this skew hinders people from entering the realm of financial inclusion and electronic transactions upon which we can review,” he replied. Mnangagwa said the idea behind increasing the IMTT is to ensure that the preference of which currency to use is not based on transaction fees. He said the move is intended at putting the ZiG at the same level of competition as the US dollar. “To provide fuller context, this would be in comparison to the use of the US dollar. The minister of Finance, through the Minister who issued an S.I. [statutory instrument] a few days ago, increased the IMTT on the US dollar transactions. Prior to that, the IMTT on US dollar electronic transactions was 1%. It has now been equated to the ZiG IMTT which puts the two currencies at par. What that does is that it becomes the same to transact in either currency, henceforth one is not deterred by the IMTT itself on the currency of choice,” he said. Mbizo Constituency MP Corban Madzivanyika bemoaned the chunk that the 2% tax would take from the transacting public and requested that it be reviewed downwards. “My supplementary question to the minister is, increasing IMTT of USD to 2% actually jeopardises more because it does not create demand for ZiG. If you check, for example, 2% of ZiG100 thousand, is equal to two thousand. It is a big amount. We thought that the minister would take it down. Can the minister consider reducing IMTT on ZiG transactions from the 2% to probably 0.5% to encourage demand for the ZiG?” asked Madzivanyika. The ZiG has been in circulation since 10 April, but has not been as warmly welcomed by the transacting public as anticipated by the authorities. This has led to mass arrests of foreign currency dealers and a crackdown on retailers that are rejecting the ZiG. Finance minister Mthuli Ncube increased the intermediated money transfer tax. intermediated money transfer tax. During question-and-answer session in the National Assembly, Women’s quota MP for Manicaland Miriam Matinenga asked deputy minister of Finance Kuda Munangagwa on the rationale behind increasing the tax, given the rise in robberies targetted at those who are keeping their money at home. News
Page 22 News NewsHawks Issue 175, 3 - 9 May 2024 OWEN GAGARE THE upcoming Sadc summit is important for President Emmerson Mnangagwa not only because he will assume the chairmanship of the regional bloc but he will also use it attain legitimacy by, among other things, sanitising the results of last year’s chaotic general elections which were condemned by observers. Zimbabwe will take over the rotational chair of the Southern African Development Community during the 44th summit to be held in Harare in August. Angola is the current chair. Mnangagwa survived intense scrutiny after the August elections, with regional leaders discussing the widely condemned polls. He however escaped partly because the main opposition CCC failed to mount a court challenge amid concerns the party failed to gather enough evidence because of a lack of polling agents. Many observers also believed the opposition did not have a strategy to challenge the results. At one time Zambian leader Hakainde Hichilema, the chairperson of the organ on politics, defence and security cooperation, seemed to be pushing more than the opposition. The Sadc electoral observer mission’s report highlighted that Zimbabwe’s general elections had violated the constitution, Electoral Act and the regional body’s Principles and Guidelines Governing Democratic Elections, meaning they were not free, fair and credible. Diplomats however told The NewsHawks that electoral reports from last year will be tabled before Mnangagwa at the summit. “This means that the Zimbabwe report is likely to be adopted with amendments. Mnangagwa is keen to sanitise the elections and get legitimacy. With him chairing the summit, he is in prime position to do so. He also wants to be a good host and project Zimbabwe as a country moving in the right direction, that’s why he is going out of his way to spruce up roads,” said a diplomat. Sadc leaders received the controversial election observer mission report on Zimbabwe at an extraordinary summit of heads of state and government in Luanda, Angola, on 4 November 2023 despite Harare’s attempts to ensure that polls were off the agenda. The summit appointed a sub-committee which included Angola, Namibia and Tanzania to handle the Zimbabwe situation, while delicate private talks were occurring within the regional grouping’s circles. Sadc leaders had initially convened five days earlier for a virtual summit before deciding to meet in person in Luanda to discuss the Democratic Republic of Congo (DRC) and Zimbabwe mainly. The summit came against a backdrop of resistance by Mnangagwa and Foreign Affairs minister Fredrick Shava to have Zimbabwe on the agenda and to be discussed at the meeting. Sadc chair Angolan President João Lourenço and Zambian President Hakainde Hichilema warded off Mnangagwa and Shava’s pressure to remove Zimbabwe from the agenda. Prior to the summit, the Sadc council of ministers and the troika of the organ on politics, defence and security had met virtually on 26 and 27 October respectively in Lusaka to discuss the same issues — the Democratic Republic of Congo and Zimbabwe. Sadc ministers stood firm behind their election observer mission led by former Zambian vice-president Nevers Mumba who was appointed by Hichilema. He was under attack from Zanu PF and government officials. They rejected the bile and insults directed at them by Zanu PF and government officials led by Zanu PF spokesperson Chris Mutsvangwa, who was War Veterans minister at the time, and Mnangagwa’s spokesperson George Charamba. Hichilema was privately pushing for Sadc to tackle the Zimbabwe issue amid diplomatic manoeuvres by different stakeholders involved. Mnangagwa used the United Nations General Assembly in September last year to engage and lobby Sadc leaders who were pushing for an extraordinary summit after the electoral observer mission’s preliminary report highlighted that Zimbabwe’s general elections had violated the constitution, Electoral Act and the regional body’s Principles and Guidelines Governing Democratic Elections. The final report highlighted the same concerns, meaning Zimbabwe’s elections were not free, fair and credible in the eyes of Sadc. Chaired by Lourenço, the summit was attended by heads of state and government or their representatives: DRC President Félix Tshisekedi, President Cyril Ramaphosa (South Africa), President Samia Suluhu Hassan (Tanzania), Hichilema (Zambia), Prime Minister Ntsokoane Matekane (Lesotho), Vice-President, Nangolo Mbumba (Namibia), Dr Lemogang Kwape (Botswana), Nancy Gladys Tembo (Malawi), Verónica Nataniel Macamo Dlhovo (Mozambique), Thabisile Mlangeni (Eswatini) and Mnangagwa (Zimbabwe), among others. “The upcoming summit will allow Mnangagwa to put to bed the controversy around the polls. He is very keen to do that,” said a diplomat. Mnangagwa anxious to exorcise election ghost President Emmerson Mnangagwa
NewsHawks News Page 23 1ssue 175, 3 - 9 May 2024 BRENNA MATENDERE VICE-PRESIDENT Constantino Chiwenga has delivered on his threats made in Bulawayo during the Trade Fair and later in Harare against money changers by overseeing the arrest of Neville Mutsvangwa, son of Zanu PF spokesperson Christopher Mutsvangwa and cabinet minister Monica Mutsvangwa. Neville was arrested when Chiwenga was acting president while President Emmerson Mnangagwa was out of the country in Nairobi, Kenya, attending the African Fertiliser and Soil Health Summit. Delivering his main speech at the International Business Conference held last month at the 64th edition of the Zimbabwe International Trade Fair (ZITF) in Bulawayo, Chiwenga said the new ZiG currency would serve as a reliable medium of exchange, a store of value and unit of account to support the government’s efforts of attracting investment and warned people and business enterprises who would want to manipulate it. “The new currency will, therefore, not be subject to exchange rate volatility or manipulation by speculators… So speculators should cease. Some were running around trying to play around in the supermarkets, we know. Behave or you will get shut down or we will lock you (up),” warned the VP. On a separate occasion, while addressing a gathering in Harare on 23 April, Chiwenga said money changers should stop it, or else risk being rendered crippled. “The buying and selling of ZiG on black market is a criminal offence similar to selling of gold illegally,” Chiwenga warned. He added: “Hatide kuti uzokanganiswe wozoita hupenyu waremara.” Loosely translated (We wouldn’t want you to end up being crippled after being attacked.) Through the arrest, Neville’s father has been hoist by his own petard after he issued a stern warning in April to black market traders whom he accused of running down the ZiG currency. Speaking at a Press conference, the Zanu-PF secretary for information and publicity said only the price of gold should determine the exchange rate of the ZiG, adding that the state security apparatus were on the lookout for those trading at a “false value”. “This is blasphemy, this is the duplicity of the worst possible kind. What am I saying? I am saying to those who want to run down the ZiG, trading and giving it a false value, our security apparatus will be alert this time. “We want to ask you about the price you are giving out: where did you get it? Gold in Masvingo and gold in Mutare the price is the same as the one in Burkina Faso or Bolivia, so this price of yours you want to charge for the rate of exchange for ZiG in US dollars, where did you get it other than these institutions and give us an explained brief where you got it”, said Mutsvangwa. Neville was picked up on Wednesday afternoon by detectives from the Criminal Investigations Department’s commercial crimes division after he appeared to post on his WhatsApp status the ZiG black market rate of 18.50 against the United States dollar. After his arrest, police spokesperson Paul Nyathi issued a public statement saying: "The Zimbabwe Republic Police confirms the arrest of Neville Sunungurai Mutsvangwa (44), Elias Majachani (45) and Simbarashe Tichingana (38) for contravening section 14 (1) of the Bank Use Promotion and Suppression of Money Laundering Act, Chapter 24:24," Nyathi said. "The trio is expected to appear in court on 10 May 2024." When the trio appeared before Harare magistrate Dennis Mangosi, they were remanded in custody awaiting finalisation of their bail hearing next week, meaning they have spent the weekend behind bars at Harare Central Remand Prison. In an audio circulating on social media platforms, Neville’s mother, Monica, is heard saying the charges were cooked up. She said: “It’s definitely political victimisation because my son doesn’t trade in foreign currency, he doesn’t trade in ZiG, so I don’t know what it is and why it had to wait for me to be out of the country. It appears it was timed to coincide with my absence.” Chiwenga and Christopher Mutsvangwa do not see eye to eye. In December 2021, the then Norton Independent candidate Norton independent Temba Mliswa said Mutsvangwa was eyeing Chiwenga’s job as VP. Mliswa described Mutsvangwa as an individual bent on creating chaos, confusion, and divisions while seeking the VP's post. “However, with Chris Mutsvangwa now the spokesperson it’s utter chaos from now on. He has always had an ambition to be a VP,” Mliswa claimed. Chiwenga carries out dark threats to money changers Neville Mutsvangwa (in blue and white tracksuit), son of Zanu PF spokesperson Christopher Mutsvangwa and cabinet minister Monica Mutsvangwa.
Page 24 News NewsHawks Issue 175, 3 - 9 May 2024 NATHAN GUMA NYANGA South MP Supa Mandiwanzira has called for caution in dealing with former managers of failed financial institutions, arguing that poor performance of the banks in some cases may be interconnected with the worsening economic environment, contagion effect or lack of supervision by the central bank. A heated debate has arisen in the National Assembly on whether former managers of failed banks should be allowed to play a significant role in the financial sector, amid waning confidence in the banking sector. Many legislators want executives who presided over the collapse of financial institutions to be banned from the financial sector. At the turn of the century the banking and financial services sector experienced upheavals that resulted in some institutions being shut by the authorities, owing to poor corporate governance. Many depositors and investors lost their money. Banks that have folded include Interfin Bank Limited (under liquidation), Royal Bank Limited (under final liquidation), AfroAsia Bank Limited (under liquidation), and Trust Bank Limited (under liquidation). Little has been done to redress challenges brought by financial reforms that were put in place from 2013 to date, including high interest rates and liquidity constraints. The dwindling confidence has been evident with mass cash withdrawals from banks before the introduction of the new Zimbabwe Gold (ZiG) currency on 5 April by new Reserve Bank governor John Mushayavanhu. Mandiwanzira said there is a need to tread with caution as reasons of the bank failures have been interlinked with the economic environment. “I think colleagues; honourable members here have all spoken in support of the proposed amendments to the Depositors Protection Act. I also stand here, Mr Speaker, sir, to support the motion. When we talk about depositors, we are talking about everybody who makes use of banking services,” Mandiwanzira said. “So that includes individuals, that includes corporates, that includes burial societies, or whatever form of institutions or persons that utilize the services of banking institutions. I do not see anyone who would be opposed to more protection of the depositors' funds in the event of bank failure.” Mandiwanzira said keeping away former bank managers from the financial sector would be harsh as banks can fail due to the contagion effect. In a contagion, or domino effect within the financial system, if one bank fails, other banks will follow suit as they are all interconnected. “Sometimes it is not actually the responsibility of bank executives in one particular bank. There is what happens in the banking sector that they call a contagion effect,” Mandiwanzira said. “In most cases, that failure cannot be attributed to the management of those particular banks that have failed as a result of the contagion effect. You could attribute that to the environment, you can attribute that to lack of supervision by the regulator, in this particular case, the central bank.” “So to propose some suggestions that are heard in the house, that anyone who has been working for a financial institution or a bank that has failed, any other opportunity in life to start another bank would be extreme to have a law to that effect. Because what that means is that we are not allowing people to try. I think anyone who has been in business understands that failure is an important aspect of business. You must fail in order to succeed.” Mandiwanzira also the ban on the former managers is likely to scare people away from doing business, which is likely to weigh in on investment. While the law should protect depositors, Mandiwanzira said it should also give people a second chance for rehabilitation. As part of the amendments, Mandiwanzira said the Act should consider international banks that have been fleeing a deepening socio-economic crisis in Zimbabwe. “The second point I needed to make with regard to the proposed amendments, is that we must also understand the state at which we are as a country, of our financial services sector,” he said. “We are coming from a very difficult period where we have suffered the most extreme economic actions against our country, where international financial institutions have been penalised for doing business with Zimbabwe or Zimbabwean institutions. “We have had international banks leave this country because they've been fined internationally for doing business in Zimbabwe. So we must make sure that as we amend the law, as we make proposals, we are also doing so in a manner that does not keep outside the financial, the banks that we must now invite to set up in Zimbabwe.” For instance, in 2017, Barclays Bank Zimbabwe, a unit of the London Stock Exchange-listed Barclays Plc, sold its domestic asset to Malawian investors as it joined several companies that had departed at the height of turbulence between 2007 and 2008. In April 2022, banking behemoth Standard Chartered Bank Zimbabwe announced that it would be pulling out of the country under its broad divesture strategy in selected emerging markets. Mandiwanzira said the new amendment should consider luring international banks. “Because we do need more banks, we do need more international banks, because we have to play our part in global trade. And that may mean that we must have Chinese banks set up here, we must have American banks set up here, and we must have South African, more South African banks set up here,” Mandiwanzira said. “Just as we must have Zimbabwean banks like Metropolitan Bank, also set up in South Africa and China and other places of the world. So our laws, in my view, must also take into account that if the opposition is saying Zimbabwe is open for business, we do not make amendments that threaten the viability or the interest to come and invest in that business.” Don't rush into blacklisting bank managers
NewsHawks News Page 25 1ssue 175, 3 - 9 May 2024 NATHAN GUMA ZIMBABWE is trailing regional neighbours in real gross domestic product, with the growth rate expected to slow to 3.2% in 2024 and 2025, amid a blighting socio-economic crisis, new statistics by the International Monetary Fund (IMF) have shown. This is a 0.3 percentage point drop from the 3.5% projected for 2024 in November last year by Finance minister Mthuli Ncube, mainly attributed to the El Niño-induced drought. While economic growth has been projected to drop significantly, the country is still lagging behind regional neighbours, who are expecting a huge leap in 2024 and 2025. For instance, Zambia’s economy is projected to grow by 0.1 percentage points from 4.7% to 4.8% in 2024 and 2025, while Mozambique is projected to be constant at 5% in the same periods. The Democratic Republic of Congo (DRC) is forecast to grow by one percentage point from 4.7% to 5.7%, while Malawi is projected to grow by 0.5 percentage points from 3.3% to 3.5%. Regional powerhouse South Africa is expected to improve in 2025, after a massive drop in 2023 and 2024. South Africa’s growth rate for 2024 was pegged at 0.9% which is projected to rise by one percentage point to 1.9% in 2025. The new statistics have also shown that Zimbabwe still has a high debt overhang, with the government debt (percent of GDP) still over 80%. On average, a government debt percentage that is above 50% shows that a government is in a weak position to service debt. The country’s government debt percentage for 2024 and 2025 is projected to be pegged at 98.5% and 86.5% respectively. In 2022, it reached 100.6% in 2022. Zimbabwe’s public debt has largely been driven by arrears and penalties on existing debts, amid calls for the country to implement targeted economic, governance, and land-related reforms. The country’s total debt soared to US$18.03 billion as of December 2022 from US$17.2 billion, with external debt constituting 70.9% (US$12.8 billion or ZW$8.78 trillion) while domestic debt constitutes 28.7% (US$5.2 billion or ZW$3.56 trillion). With no budgetary support from traditional lenders such as international financial institutions due to non-payment of arrears, Zimbabwe has been mainly relying on grants, bilateral loans and domestic resources to finance its key capital projects. The country has been failing to access lines of credit from key multilateral development banks, including the African Development Bank (AfDB), the World Bank, and the European Investment Bank. In 2022, President Emmerson Mnangagwa admitted that a huge debt overhang is weighing on the economy, during the Second Structured Dialogue Platform Meeting on the Arrears Clearance and Debt Resolution Process. Sub-Saharan region According to the report, the overall regional outlook is gradually improving, with economic activity tepidly picking up. “Growth will rise from 3.4 percent in 2023 to 3.8 percent in 2024, with nearly two thirds of countries anticipating higher growth. Economic recovery is expected to continue beyond this year, with growth projected to reach 4.0 percent in 2025. In parallel, median inflation has almost halved from nearly 10 percent in November 2022 to about 6 percent in February 2024.” The report has also projected the funding squeeze to continue, as the region’s governments continue to grapple with financing shortages, high borrowing costs, and rollover risks amid persistently low domestic resource mobilization. “Significant debt repayments are looming this year and next. The financing challenges are forcing countries to cut essential public spending and redirect development funds to debt service, thereby endangering growth prospects for future generations,” it reads. “The funding squeeze partly reflects a reduction in the region’s traditional funding sources, particularly Official Development Assistance. Gross external financing needs for low-income countries in sub-Saharan Africa are estimated to exceed $70 billion annually (six percent of GDP) over the next four years. “As concessional sources have become scarcer, governments are seeking alternative financing options, which are typically associated with higher charges, less transparency, and shorter maturities” IMF has also projected the cost of borrowing — both domestic and external — to increase. In 2023, government interest payments took up 12% of its revenues (excluding grants) for the median sub-Saharan African country, more than doubling from a decade ago. The private sector has also started to feel the pinch from higher interest rates. Zim economic growth lags way behind region
Page 26 News NewsHawks Issue 175, 3 - 9 May 2024 NATHAN GUMA VETERANS of the liberation struggle have decried neglect by the government at a time they are are earning US$120 in monthly pensions despite a deepening socio-economic crisis which has left them vulnerable and bitter. The war vets, who have been a vital cog in Zanu PF’s election campaigns and have in some cases been accused of using brute force to bolster support for the ruling party, especially in the early 2000s, told The NewsHawks through their executive that the majority were living like paupers. Despite their support for the ruling party, war veterans have constantly been at loggerheads with the government over their welfare, which has been deteriorating following the erosion of their pensions and other benefits due to chronic high inflation. They are entitled by law to pension, basic healthcare and education, according to the Veterans of the Liberation Struggle Act [Chapter 17:12] of 2020. The Zimbabwe National Liberation War Veterans' Association (ZNLWVA) however says the meagre pension payouts to the freedom fighters were of concern. “The situation of war veterans is pathetic,” Edward Dube, the information and publicity secretary in the veterans’ executive committee, told The NewsHawks. “War veterans are earning US$120 which is below the poverty datum line. The majority of them are lodgers and others are being chased away from farms on the pretext that they are not producing. “There are no facilities for empowerment. The constitution and the Act say that war veterans should be respected, but we do not know now if this respect is supposed to be in verbal terms only.” Dube’s words were echoed by Fredrick Ngombe, the ZNLWVA information secretary for the Harare provincial chapter, in a statement. He said the government has done little to attend to health and physical needs of the ex-combatants. “We are united by our common suffering with some of us still traumatised by our combat experiences with no meaningful rehabilitation whatsoever. The majority were left to their own devices. Post-traumatic stress disorder (PTSD) continues to fester amongst most of our comrades and this is of serious concern to us as an Association,” Ngombe said. “The economic and natural vagaries that plague the country today and it is the focus of the ZNLWVA to navigate ways that mitigate against these natural and man-made challenges.” “As an association we are not pleading for handouts but for facilitation to engage in empowerment programmes to become self-dependent and self-sufficient, thereby making it possible for the national fiscus to cater for other equally deserving demands of society.” The ZNLWVA lamented the war veterans' lack of incorporation in the social, economic and governance matrix of Zimbabwe. “We feel pained, not jealous, when some in society enjoy the fruits of our sacrifices whilst we are marginalised,” reads the statement. “True the majority of ex-fighters lack the professional capacities of other patriots who had every opportunity to excel in their respective fields of endeavour whilst for us such opportunities were nipped in the bud by the armed struggle and, to exacerbate the problem, little or no post-traumatic stress disorder rehabilitation was done to successfully reintegrate us into society, making it practically impossible for our majority to acquire life empowerment skills.” War veterans have been complaining over unfulfilled promises. For instance, war veterans, have been griping over stalling of an ambitious project to build hospitals to cater for war veterans in partnership with the government. In 2015, the government struck a partnership with war veterans-owned company Hospital Industrial and Scientific Investments (Private) Limited (HISI), to build hospitals across the country. The project was also supposed to promote medical tourism while catering for health complications like kidney transplants that are being conducted in India and other countries. According to the shareholder agreement between HISI and Power Zimbabwe, the war veterans’ company was supposed to establish a chain of 10 University Memorial Hospitals, one in each province, along with a Medical Tourism Hospital in Victoria Falls City. However, the project has stalled since 2015, raising an outcry from the ex-combatants. War veterans’ welfare has raised a stink over the years, with former War Veterans and Liberation Struggle Affairs minister Chris Mutsvangwa having been at loggerheads with the ex-combatants , who believe he did little to improve their welfare and incorporation into the development matrix. In February, President Emmerson Mnangagwa sacked Mutsvangwa, who had been his key ally, but did not give reasons. While Mutsvangwa says he played a key role in Mnangagwa’s ascendency in the 2017 military coup, he had been on a collision course with war veterans over the years, having been fired as chairperson of the ZNLWVA in April last year. The ex-fighters have also been quick to remind new War Veterans minister Monica Mavhunga of their deteriorating welfare, indicating their growing concern and disgruntlement. War vets blame govt as life gets tough
NewsHawks News Page 27 1ssue 175, 3 - 9 May 2024 NATHAN GUMA BASIC commodities are continuing to soar after the introduction of the Zimbabwe Gold (ZiG) currency last month, with large retail outlets flouting the official bank rate, worsening the cost of living, a snap survey by The NewsHawks has revealed. On 5 April, new Reserve Bank governor John Mushayavanhu introduced the controversial ZiG which he said is backed by gold and other precious minerals to replace the inflation-ravaged Zimbabwe dollar, in a period marked by basic commodity price hikes. While the introduction of the ZiG bank notes and coins was touted as a panacea for economic stability, we can report that basic commodity prices are still exorbitant, with retailers using various exchange rates reminiscent of the Zimdollar era. For instance, Pick ‘n’ Pay on Harare's Sam Nujoma Street has pegged its exchange rate at US$1:ZiG14:50, contrary to the US$1: ZiG13.56 pegged by the Reserve Bank of Zimbabwe (RBZ). Parallel market rates are pegged at US$1:ZiG14 and US$1:ZiG21. In the Zimdollar era, there were several exchange rates, with retailers such as Pick ‘n’ Pay, Choppies, and Innscor having their own rates. The survey also shows that the new ZiG prices are similar to those charged by informal traders, with two kilogrammes of Ekono Rice brand now costing ZiG44.90, which is US$3.10 using the ZiG14.50 exchange rate. Ideal Rice is costing ZiG35.85 (US$2.50), while two kilogrammes of flour are costing ZiG35(US$2.40). Multi-grain mealie-meal is costing ZiG205 (US$14.10), while white roller meal is pegged at ZiG109.50 (US$7.60). In the less formal tuckshops, cooking oil is costing US$3.50, while rice has moved from US$1.90 to US$3. Sugar is costing US$3, up from US$1.90, while Mazoe Orange Crush is still pegged at US$4.50. While the ZiG notes and coins are now available, the survey has shown that consumers are still struggling to access change, which has made basic commodities even more exorbitant for most. “Change is an issue everywhere. I end up going off-budget because vendors have no change. You are forced to purchase other things that you do not want at all,” said a consumer. “Others already have the ZiG, but we have not seen it yet, which it worse. In terms of transport, we are still getting paired on a dollar. Either you are paired, or you pay a dollar, which has made us go off-budget in terms of transport funds. It is much cheaper when you have another person that you know who is going in the same direction.” Most Zimbabweans are already bearing the brunt of a worsening socio-economic crisis, which has been worsened by the El Niño-induced drought. According to the United Nations, an estimated 2.6 million people, including 1.7 million children, are projected to require urgent humanitarian assistance due to the food and nutrition crisis, floods and regional migration. A total of 1.7 million people will need life-saving health, HIV and nutrition services. A total of 860 757 people, including 473 416 children, will require safe water for drinking and domestic purposes. Zimbabwe has one of the highest nominal food inflation rates in the world with 60%, trailing Argentina with 251%, Lebanon with 208%, Venezuela with 91% and Turkey with 70%, according to the World Bank. The southern African country has the second-highest real food inflation pegged at 26%, second to Argentina with 40%. Prices continue soaring despite ZiG introduction Reserve Bank of Zimbabwe governor John Mushayavanhu
Page 28 News NewsHawks Issue 175, 3 - 9 May 2024 THE Supreme Court has thrown out an appeal by former Mutoko Rural District Council chief executive officer and planning officer who were jailed three years each for corruption following their arrest in 2020. Peter Sigauke and Innocent Mukwekwe were jailed by a Mutoko magistrate following their conviction for criminal abuse of office after they unlawfully subdivided land which was meant to benefit less privileged Mutoko women. Sigauke and Mukwekwe were employed by Mutoko Rural District Council as CEO and planning officer respectively. They were each convicted in the of three counts of criminal abuse of duty as public officers. All counts were taken as one for purposes of sentencing and each was sentenced to 36 months imprisonment, and 12 months were suspended on the usual conditions of future good conduct. The charges against the appellants arose from the manner in which they dealt with and deposed council land around the Chinzanga Beerhall. They were alleged to have subdivided the land into a number of stands without a council resolution authorising the subdivision and without ministerial approval. They sold the stands to Gabriel Karimazondo, Tinashe Mazarura and Sarah Chipunga. Sigauke and Mukwekwe sold the stands to the three purchasers with the intention of showing favour to them as the sale of the plots was not advertised as was required and the purchasers therefore did not compete with anyone. Each of the three purchasers paid the purchase price to Mukwekwe. The purchase price was not remitted to council. No receipts were issued to the purchasers. Prosecutors proved that the two acted in connivance and benefited from the sales. During the trial, the state led evidence from 13 witnesses. Among these witnesses were the chairperson of Mutoko Rural District Council, councillors and the duo’s former co-workers. The cumulative effect of the evidence led from these witnesses was that the procedure for the sale of council land was not followed. The procedure was that council had the ultimate decision on the sale of land to interested parties. It would pass a resolution on how it intended to dispose of the property. It would seek the approval of the relevant minister before the sale, the court heard. Once the approval was at hand, it would task the management committee to implement the approved resolution. The witnesses testified that council had resolved that corner shops be created at the Chinzanga Beerhall stand. These were to be allocated to local women to carry out their income-generating projects. Unbeknown to council, the management committee altered its resolution by creating the stands which were sold to the three purchasers. The witnesses testified that the creation and subsequent sale of the stands was not sanctioned by the minister. It was further testified that there was no record at Mutoko Rural Council of any of the three transactions or of any payments made by the purchasers. Gabriel Karimazondo, Tinashe Mazarura and Sarah Chipunga testified on how they purchased the stands and paid the full purchase price for the stands to the second appellant either directly or through intermediaries. Karimazondo testified that he approached Mukwekwe and inquired from him if there were any stands available for sale. Mukwekwe referred him to Councillor Jembere who confirmed the availability of vacant stands near Chinzanga Beerhall. Jembere however referred him back to Mukwekwe for the prices of the stands. Karimazondo approached Mukwekwe at the council offices. The court heard Mukwekwe told him that the stand which was available was valued at US$8 000. “He paid the purchase price in two instalments of US$4 000 each. Payment was made to Mukwekwe at the council offices. He did not get any receipts for the payments,” the state proved. When he next visited the council, following up on the receipts, Mukwekwe told him that he was required to submit a plan for the buildings that were to be constructed on the stand. An offer letter would thereafter be issued. He paid Mukwekwe US$250 for preparation of the plan. When he followed up with him on the matter of the receipt, he was given the approved plan and an offer letter dated 21 October 2019. The offer letter had been signed by Sigauke. “He then commenced construction of the building as per the plan by digging a foundation. “He delivered some bricks on the stand. “He was surprised when the second appellant told him to stop work as there was a misunderstanding amongst some councillors over the stand,” the court heard. After some time, police approached him in 2020 regarding the purchase of the stand. He again approached Sigauke and Mukwekwe asking for his receipts. Mukwekwe directed him to some officer at the council offices to sign documents and get his receipts. When he arrived at the council offices, he met the officer who identified himself by name. He was made to sign a lease agreement. The agreement was however dated 5 July 2019 although he signed it in 2020 and after police had commenced their investigations into the allegations leading to the conviction of Sigauke and Mukwekwe. “He was subsequently advised by the second appellant that Council had resolved that the stand be leased to him for a period of between five and ten years and that the lease agreement would be renewable after that period.” Karimazondo maintained that he had at all material times dealt with Mukwekwe. He further maintained that he received the offer letter in October 2019 before signing the lease agreement in 2020 although the agreement was dated 5 July 2019. Karimazondo’s evidence was corroborated by the evidence of Rabson Jembere. Mazarura gave a similar testimony. Sigauke and his accomplice pleaded not guilty. They were the sole witnesses in their own defence. They denied selling any stands to the trio and receiving any payment for the stands. They further denied acting contrary to their duties. Their defence was that they were members of the management committee of Council. “Full council had resolved to delegate powers to management to enter into lease agreements with those who needed commercial stands on the piece of land on which Chinzanga Beerhall stood,” they said. However, the trial court found that the evidence of the three purchasers confirmed that the stands had been sold to them. They had respectively paid the purchase prices to Mukwekwe who played a pivotal role in the sale of the stands. Although the purchasers were not issued with receipts, their evidence was substantially corroborated by documentary evidence, being the offer letters which reflected that full payment had been made. The sale of the stands was not in accordance with the laid down procedures and the sales were intended to favour the purchasers. Disgruntled by the trial court’s conviction and sentence, the appellants appealed to the High Court. The High Court held that it is trite that findings of fact cannot be lightly interfered with on appeal in the absence of gross irrationality. It held that there was no basis for interfering with the judgment of the trial court as the decision of that court was not irrational. It held that the trial court was correct in all its findings. This resulted in the two filing an appeal at the Supreme Court. The Supreme Court bench comprising Justices Tendai Uchena, Felistas Chatukuta and George Chiweshe dismissed the appeal, ruling that the High Court was correct in upholding the sentence imposed by the trial court. “The appellants were each convicted of three counts of abuse of office. “Nothing was recovered, so the appellants benefited from the commission of the offences. “It would have brought the administration of justice into disrepute in the circumstances of this case, had the appellants been sentenced to either community service or the payment of fine. “An effective custodial sentence was warranted,” ruled the court. — STAFF WRITER. Supreme Court throws out Mutoko RDC appeal against corruption sentence
NewsHawks News Page 29 1ssue 175, 3 - 9 May 2024 BRENNA MATENDERE TRUST, confidence and credibility of the Reserve Bank of Zimbabwe (RBZ) has been put at stake after the new central bank governor John Mushayavanhu appointed tainted banker Morris Bekezela Mpofu as his official adviser. The development comes at a time the RBZ is grappling to earn the trust of the public following the introduction of the country’s new currency, Zimbabwe Gold (ZiG), which is already being resisted by the public. Mpofu started working at the central bank early this month. His workmates confirmed that he had hit the road running by drawing them into a series of marathon meetings. However, Mpofu has a tainted past that places the whole of the RBZ’s credibility at stake. In 2019, he was fired as chief executive officer of the Zimbabwe Consolidated Diamond Company (ZCDC) over corruption and abuse of office and subsequently arrested. The ZCDC board said at the material time they had to relieve seven executives of their duties, including Mpofu, “to rebuild public and market confidence following reports of rampant corruption and abuse of office.” Allegations arose that Mpofu recommended Robal Hussein to be allowed to buy diamonds from the Minerals Marketing Corporation of Zimbabwe (MMCZ), knowing that he was an ex-convict and blacklisted under the Kimberly Process Certification Scheme. Hussein and Youssef Osseily were arrested on 20 September 2008 in India for smuggling 3 605.73 carats of rough Zimbabwe diamonds valued about US$900 000 in violation of Kimberly Process rules and the Free Trade in Diamonds Act of India. It was alleged that the seized rough, semi-polished diamonds were confiscated by the government of India. Hussein and Osseily were convicted and sentenced to four years imprisonment on 22 September 2010. They both served their jail terms and were later deported to their respective countries of origin upon release from prison. The state argued that on 18 September 2018, a meeting was convened between ZDIAM (Private) Limited, represented by its director Hussein, and ZCDC representatives. On 26 March 2019, Hussein attended a diamond tender at the MMCZ representing a Lebanese company, Diamond Cut. It is alleged that Hussein bought three diamond parcels weighing a total 358.58 carats for US$258 224.66. The state, when Mpofu appeared before the courts, said Mpofu had no right to recommend Hussein, who had a criminal record relating to smuggling of diamonds blacklisted under the Kimberly Process and was not licenced to buy minerals. In 2022, Mpofu also courted controversy. He was disgraced, two days after a Zimbabwe Revenue Authority (Zimra) appointment. The Zimra board suspended the assumption of his duty as acting Commissioner-General, two days after announcing his appointment. The development came after public outrage over his appointment following revelations of his past that he was fired the from state-owned ZCDC in 2019 over reports of corruption. Mpofu had two days earlier been appointed to take over the position of Commissioner-General of Zimra. Rameck Masaire was at the time Acting Commissioner-General of Zimra set to retire effect from 1 February 2022. When Mpofu’s appointment was reversed, he then continued to serve as Acting Commissioner-General. Mpofu however did not face trial after the state withdrew charges. The state led by prosecutor Venerandah Munyoro withdrew the charges before plea and said police would summon Mpofu back to court in the event that they gathered enough evidence for his prosecution. Harare regional magistrate Hosea Mujaya withdrew the matter subsequently. Speaking to The NewsHawks, economist Professor Gift Mugano said the credibility of the Reserve Bank is at stake when tainted persons come on board to head its monetary affairs. He said as a measured step, the RBZ governor must be ensuring that a currency board is put in place. “You would note that in countries which had a serious crisis like ourselves, currency crisis, like Bulgaria and of course many others, which include Argentina, they failed to gain the trust and confidence (due to tainted bankers) and they brought in eminent people across the world and also reputable people from their respective countries and then these people were taken as some kind of confidence building. “I mean, they were taken as guarantors. So in those countries from 1960s to the 1999, early 2000, late 1990s, there was so much trust and confidence which was restored around the institutions. “And the currency boards succeeded in addressing currency crises. So today we have a new currency called ZIG. And we were expecting that the governor would put in place the currency board because structured currency is normally supposed to be associated with the currency board because you're coming up with a new currency backed by gold,” he said. Mugano pointed out that with tainted people behind him, governor Mushayavanhu will see the Zig currency heading to the graveyard. “You are taking the exchange of gold and you need to guarantee that the bank is available and they are given to the business when they need them. So a currency board was supposed to be in place. So the governor did not put a currency board. Then if we hear that he's taken somebody who has credibility issues, then he put everything into tatters. And the trust which we badly need will not be attained. And naturally the ZiG will continue to find itself walking towards the graveyard,” he said. Isaac Muzambi, the RBZ public relations and communications officer requested written questions when asked to confirm officially in what capacity Mpofu is serving at RBZ. He did not respond even after several follow ups where he promised to do so. However, reliable sources told The NewsHawks he has been appointed special advisor to Mushayavanhu, a post that was previously held by banker Munyaradzi Kereke during the reign of Gideon Gono. Reserve Bank appoints tainted Mpofu Tainted banker Morris Bekezela Mpofu
Page 30 News NewsHawks Issue 175, 3 - 9 May 2024 BRENNA MATENDERE GOVERNMENT has now done away with its unsophisticated propaganda that Zimbabwe had attained food security, amid an official appeal for assistance by cabinet to domestic and international well-wishers to bail out the country from the El Niño-induced drought that President Emmerson Mnangagwa declared a state of national disaster. During Tuesday’s post-cabinet briefing, Information minister Jenfan Muswere said Local Government and Public Works minister Daniel Garwe presented the 2024 El Niño-induced drought report for domestic and international appeal, which was adopted by Cabinet. “The public is informed that the His Excellency the President, Cde. Dr. E.D. Mnangagwa declared a State of Disaster on 3 April, 2024. The declaration was made in terms of section 27(1) of the Civil Protection Act as a result of the prevalent drought brought about by the El Niño weather phenomenon. “The state of disaster exists in all rural and urban areas in Zimbabwe. The Appeal is premised on three areas, namely: Search and Rescue; Mitigation; and Resilience Building,” said Muswere. He further stated that search and rescue involves the identification and provision of assistance to beneficiaries, while mitigation relates to the measures put in place to avert the impact of the El Niño-induced drought. “Resilience pertains to initiatives aimed at strengthening community capacities for sustainable livelihoods in order to cope with the disaster. A full Appeal statement will be issued in due course,” he said. The whole of last year, President Mnangagwa repeatedly boasted that Zimbabwe had attained food security. As early as last month, during the official opening of a grain milling plant co-owned by his younger brother Patrick Mnangagwa and businessman Douglas Kwande, the Mnangagwa's government maintained the propaganda that Zimbabwe was food secure. The Food and Agriculture Organisation (FAO) defines food security as existing when all people, at all times, have physical and economic access to sufficient, safe and nutritious food that meets their dietary needs and food preferences for an active and healthy life. There are four main dimensions to food security, namely that the food must be physically available, the food must be economically affordable to all people, the food must be nutritionally balanced, and these three must be stable over a period of time. In his campaign speeches ahead of last year’s general elections, Mnangagwa repeatedly said Zimbabwe was on course to achieving food security to the extent that non-governmental organisations distributing food aid would be rendered redundant. “In spite of sanctions imposed on us by some Western countries, Zimbabwe has been the fastest-growing economy in the Southern African Development Community (Sadc) for the past three years. All sectors — mining, construction, manufacturing, and tourism — are all growing,” Mnangagwa told a rally in Harare on 9 August. He added that his Pfumvudza/Intwasa agricultural policy had succeeded. “We are confident that in spite of climate change, we will be food secure because we have built dams and are promoting irrigation to give us enough food each year,” he said. But a day before his Harare rally, the World Food Programme (WFP) representative and country director Francesca Erdelmann had warned that Zimbabwe’s poor population still suffered from food insecurity. “While the country celebrates the availability of adequate cereal stocks to meet the overall national requirements, we also acknowledge that many poor households struggle to meet their food needs,” Erdelmann said. On 29 July 2023, Mnangagwa was quoted as saying: “Forget about the maize surplus. We have that alright. Forget about the fiscal surplus. That’s no longer breaking news. For the first time ever, we have a wheat surplus of 40 000 metric tonnes. How about that? Does anyone still doubt these results that speak for themselves?” Agriculture minister Anxious Masuka, whom Mnangagwa rated as the best in his cabinet for two consecutive years on several occasions, also misled the nation that Zimbabwe was food secure. Continuing with the unstrategic propaganda, last month the acting leader of government business in Parliament and Skills Audit minister Paul Mavima maintained that the country was food secure. He pushed back on repeated questions by legislators after their visit to grain silos in Banket showed that the state granaries were empty and with no reserves as claimed by government officials. However, in an embarrassing somersault, Mnangagwa on Wednesday pleaded with various sectors including donors, churches and foreign-based citizens to help Zimbabwe with food aid he estimated at US$2 billion. “By this declaration, I also call upon all Zimbabweans of goodwill, including those in the diaspora, the international community, United Nations agencies, development and humanitarian partners, international financial institutions, the private sector, churches and other faith-based organisations, as well as individuals, to generously donate towards ameliorating this state of national disaster,” he said. According to the WFP, up to a third of Zimbabweans in urban areas are unable to afford a nutritious diet, and programmes by the European Union, WFP and other development programmes have been assisting vulnerable communities to be food secure through mobile money stipends, agricultural support programmes and food handouts. Speaking to The NewsHawks, a renowned food expert remarked: “In reality, Zimbabwe is far from attaining a semblance of food security. You can check the annual hunger statistics, from the likes of ZimStat, ZimVac, World Food Programme and the World Bank. Government has failed to: sufficiently develop Zimbabwe’s irrigation capacity; implement agricultural policies that place farmers (particularly small-scale farmers) at the centre of the food security agenda; incentivise farmers to expand the production of drought-tolerant small grains like sorghum and millet; tackle corruption in the agriculture value chain, for instance Command Agriculture looters went scot-free. Propaganda has its limits; what is needed in the food security discourse is honest and pragmatic leadership.” According to fresh figures from the Reserve Bank of Zimbabwe, the cost of food in Zimbabwe increased 84.4% in February of 2024 over the same month in the previous year. Last year, the World Bank confirmed that Zimbabwe had the highest food price inflation in the world. But the country has seen more shocking prices after the turn of the millennium. Food price inflation averaged 1540753.44% from 2003 until 2024, reaching an all-time high of 353131459.30% in July of 2008 and a record low of -15.1% in December of 2009. According to the World Bank’s February 2024 update on food inflation, Zimbabwe led the pack in Africa, with food inflation at a staggering 26% year-on-year, followed closely by Egypt at 18% and Guinea at 7%. The statistics showed that Zimbabwe, Egypt, and Malawi are on the lost of the top 10 food inflation hardest-hit nations globally. President Emmerson Mnangagwa Hunger painfully exposes food security propaganda
NewsHawks News Page 31 1ssue 175, 3 - 9 May 2024 DELIGHT GUMA/NATHAN GUMA IN Concession, some 55 kilometres from Harare, Hazvinei Mangwena, a subsistence farmer, looks at what remains of her crop in a field perched on a hillside. Downhill, in what used to be part of her field, a sprawling settlement has emerged and is engulfing more fields, pressuring subsistence farmers to look for other pieces of land suitable for cultivation. Swathes of land have been cleared from a host of nearby hills as farmers are slowly pegging more farmland. “At least no-one can disturb me, telling me that I am cultivating on their residential stand. It's peaceful,” she says. Farmers are now cultivating on hilly land in response to a raging conflict between agriculture and urbanisation, which is projected to worsen food insecurity. Zimbabwe is grappling with effects of the El Niño-induced drought, which has seen more than 2.7 million vulnerable to starvation. ‘Mountain fields’ — named after their location, because they are perched on hills, have gained popularity in Mazowe, Concession and other parts of the country, with residential areas and mining rapidly taking over arable land, sparking tensions. For Mangwena, this new form of cultivation has come with new challenges. For instance, her yield has dwindled, a trend that she says is likely to be worsened by the El Niño-induced drought. Her once lush-green maize crop, now brown due to the relentless sun, now faces further damage due to the approaching winter. “I formerly used to yield about two tonnes, but now I am producing less than half a tonne to sustain me and my extended family throughout the year. The fields are inaccessible, we use hoes and axes to clear the land as tractors and cows fail to reach the fields even if we afforded them,” she says. “We are now injecting far more fertilisers on our crops as compared to our former fields and hardly produce half of the normal yield, we would roll our crop downhill and manually collect our harvest at the bottom.” Transporting the harvest from the hills is difficult. “Many people think we roll sacks full of maize downhill, but it is not always the case. We have to lift then downhill, dodging large boulders. These boulders can easily tear sacks, causing loss of the maize if rolled all the way to the bottom,” she says. Another farmer from Concession, Locadia Danger, says crops on hilly land are more susceptible to erratic rainfall than plants on flat fields. She has been forced to cultivate only one type of crop, maize, as conditions have it is difficult to rotate other crops due to the unforgiving terrain. “If we receive low rainfall, the crops will die. If we receive normal rainfall, the water will flow downhill and the crops will still die and if we receive high rainfall, our crops Land ownership insecurity undermines work of farmers will be destroyed as the roots will be holding onto a small layer of top soil which can be easily washed away,” she said. Another farmer, Earnmore Sikweya, has a patch of farmland on a hill close to her home. She says farming has become more difficult and strenuous than it used to be. “There are no advantages associated with mountain cultivation. Climbing the mountain is tough, the ground is pebbly, we are limited to cultivating maize only as other crops such as beans, soyabeans and groundnuts are consumed by wild animals and insects before budding,” she says. “We cannot wait until our crops dry, we will have to reap earlier than usual as we will be conflicting with mice, monkeys, birds and other wild animals.” Research shows that mountain farming is less productive. According to a 2017 paper by the United States’ National Library of Medicine, tens of millions of smallholder mountain farmers in Asia, Africa, and Latin America who earn US$1–2 per day do not have access to peer-reviewed knowledge of best agronomic practices, though they have considerable traditional ecological knowledge. Terrace farmers also lack access to affordable farm tools and inputs required to increase crop yields. A digital solutions think-tank, Source Trace Systems, in its research titled An Uphill Task: Producing Food in the Mountains, says weather and soil conditions heavily impact mountain farming, cutting yield by at least 40% compared to farming on plains. “The gradient and the undulations in the terrain make it difficult to use conventional agricultural machinery. But despite mountain farming being so much more laborious and far less productive, for the communities that inhabit the mountains, agriculture has always been central to life,” it says. “Even so, there is no clear-cut definition yet of highland or mountain farming. It is generally understood that farming at an altitude of 200m to 7 500m above mean sea level is mountain farming.” Smallholder farmers say the problem is worsening in rural areas. For instance, farmers under the Zimbabwe Smallholder Organic Farmers’ Forum (Zimsoff ) say mining has factor contributing to the displacement of farmers in areas like Mutoko. “Displacement of smallholder farmers in rural communities has become very common due to 'development' such as growth of townships as councils are generating revenues by selling residential stands,” said Ngoni Chikowe, an agricultural technical officer at Zimsoff in Mutoko. “Also, mining is favouring the Chinese foreigners, which is resulting in displacements. Policies to do with land tenure need to be scrutinised in a way, such as as offering title deeds, to protect rural smallholder farming communities. “Mining companies should be fined when they do not follow laws of the land. Individuals also must be fined for doing injustice to environment. I suggest that there be environment committees in villages to be watchdogs and be reporting such issues.” Climate change expert Lawrence Mashungu says there is a need to ensure that legislation governing mining and urbanisation is synchronised with the constitution. “I think it’s a constitutional issue, especially considering that the Mining Act takes precedence over everything else. That is the question we may want to ask ourselves. A person with a mining claim is prioritised over any person carrying out other activities,” Mashungu told The NewsHawks. “So the other question is: How are we taking the right to life over everything else? There is also need to have some regions categorised into special farming zones, especially those which are prone to effects of climate change.” For Mangwena, the land lost can never be replaced. “This is the only option left. Whenever I need another piece of land, I will simply clear another piece of land in the hills,” she says. A mountain field overlooks Highwood residential suburb, in Concession, Zimbabwe. The area is one of the many pieces of land used for subsistence farming . Pic: Delight Guma, recently in Concession
Page 32 News NewsHawks Issue 175, 3 - 9 May 2024 BRENNA MATENDERE ACADEMIC and researcher Dr Phillan Zamchiya says recalls of CCC legislators by self-imposed secretary-general Sengezo Tshabangu which resulted in Zanu PF attaining a two-thirds majority in the National Assembly are part of the ruling party’s dark world of politics and power dating back to the early years of the late president Robert Mugabe's rule when he wanted to neutralise his secretary-general Edgar Tekere. Zamchiya made the remarks while presenting on the topic “Recalls and Subsequent By-Elections, Lessons Learned and Insights into Democratic Processes in Zimbabwe” during a virtual meeting organised by the Zimbabwe Election Support Network (Zesn). “The background to recalls in Zimbabwe is actually immersed in the dark world of politics and power. Recalls have been used as an instrument to thwart inter- and intra-party competition. In Zimbabwe it was actually in the late 1980s when it was introduced by Zanu PF to deal with internal politics. It had nothing to do with citizens under the national question of the day. “Robert Mugabe faced competition from Edgar Tekere, his secretary-general. They expelled him from Zanu PF. He remained a member of Parliament and they wanted to recall him. That is how it was introduced through a constitutional amendment of 1989,” said Zamchiya. Tekere was eventually not recalled because he then quit Zanu PF and formed his own party called, the Zimbabwe Unity Movement (Zum). Zamchiya said the recall law is bad and undemocratic and has no space in any representative democracy. “It is discernible from various international experiences that recalls are used more by countries that are semi-democratic than the countries that can be identified as mature democracies. These recalls are more common for elected representatives than members of the executive,” he said. The democratic cost of Tshabangu’s shenanigans that saw him recalling elected CCC MPs to give Zanu PF a two-thirds majority in the lower House has seen the party clawing its way back into urban areas from the woodwork. The party was largely exiled to rural areas by the now defunct MDC from 2000. Observers say Tshabangu’s manoeuvres, supported by the executive, Parliament and the judiciary, as well as state security agents and bitter individuals in blind fury, have taken the democratic struggle in Zimbabwe backwards. After delivering a parliamentary twothirds majority for Zanu PF and urban seats, Tshabangu named the price: A senate seat, Toyota Fortuner and money. He is now living large after delivering for President Emmerson Mnangagwa and Zanu PF, with whom he now hobnobs. The recalls have also cost the nation through taxpayers’ money used to run by-elections which translates into millions of United States dollars for a country whose poverty-stricken citizens are struggling to survive. Zamchiya explained that a recall can be basically viewed as a mechanism that is used to allow the removal of an elected official, be it an MP or a councillor, from office before his or her term is complete without actually waiting for the next general election. He added that usually recalls are relevant in a political system that is based on representative democracy. “Let me say that jurisdictions differ on this question but, generally speaking, I can attest that recalls happen at four tiers of government, of course depending on the political system. That is at the presidential level, your president can actually be recalled. For example, if you look at Venezuela, article 7.2 of the constitution, Romania, Taiwan, and so forth. Secondly, it can happen at parliamentary level. Look at the United Kingdom, where only MPs can be recalled, but also at a regional and local authority level. “So some jurisdictions actually provide for a recall at all levels, whilst others provide for a recall at only one level. In terms of how these officials can actually be recalled, I think there are three main mechanisms that are used the world over. I think the first one is the intra-party-initiated recall, where you have a political party actually recalling its members and then you have a by-election. “This is probably the Zimbabwe model, which is optimised by section 129, sub-section 1K, and also section 278, sub-section 1, which provides for the recall of local authority members and MPs. And the second main one, across the world, is what I call perhaps the low threshold,” he said. Zamchiya holds a Doctor of Philosophy degree in international development from the University of Oxford, a Master of Philosophy degree in land and agrarian studies from the University of the Western Cape and a Bachelor of Science degree in politics and administration from the University of Zimbabwe. In addition, Zamchiya currently serves on the international editorial boards of Oxford Development Studies and the Journal of Southern African Studies Recalls immersed in Zanu PF dark world of power CCC self-imposed secretary-general Sengezo Tshabangu
NewsHawks News Page 33 1ssue 175, 3 - 9 May 2024 NATHAN GUMA THE Reserve Bank of Zimbabwe (RBZ) has been urged to implement a raft of measures, including fiscal discipline, public consultation and policy consistency, if the newly introduced Zimbabwe Gold (ZiG) is to be successful. This week, the ZiG bank notes and coins came into circulation after a controversial introduction of the currency on 5 April, without public consultation, creating chaos in the domestic market. The ZiG is dramatically depreciating on the parallel market as margins widen for informal traders and corporates seeking profitable arbitrage opportunities, a harbinger of worse things to come. For instance, the currency is already trading at US$1:ZiG 21 on the parallel market, while the official rate is pegged at US$1:ZiG13.56. Some schools are already pegging rates at US$1:ZiG23 raising an outcry while highlighting the waning confidence in the currency. In its latest analysis, a social justice watchdog, the Zimbabwe Coalition on Debt and Development (Zimcodd), said Treasury should swiftly undertake bold reforms to regain lost market confidence for the ZiG to survive. “The 2024 Monetary Policy Statement was unveiled when the market was rapidly self-dollarising, with over 80% of economic transactions being conducted in United States dollars. This shift was primarily due to persistent local currency volatility, which saw it lose over 70% of its value in the first three months of 2024. The constant, severe fluctuation of the local currency has led to unbearable price growth for consumers. “History is a painful reminder of losses incurred by economic agents over the years since the nation started currency revaluations in 2006. Between early 2006 and early 2009, the RBZ officially revalued the Zimbabwe dollar at least thrice before dumping it for the United States dollar under a multi-currency regime. “Whenever a new local currency is launched, economic agents lose a significant portion of the value of their deposits and savings kept in the banking sector. This phenomenon has primarily reduced public confidence in banks and the government’s monetary policies, encouraging pillowcase/mattress banking, particularly for the informal sector economy.” In its analysis, Zimcodd urged the authorities to have adequate political will to support the swift implementation of the 2024 monetary policy measures together with other critical sector-wide reforms, while promoting policy consistency and citizen participation. “The RBZ, in particular, and the government, in general, must reckon that citizen participation (CP) is a crucial element of good governance as it allows citizens to inform, evaluate, monitor, and influence decisions that affect them daily. The involvement of citizens in public decision making is key for: “Engaging citizens in the policy formulation, implementation, and evaluation of policies of their own govt. Public policy improvement — academics, technocrats, civil society, NGOs, Church, etc, provide informed advice.” Zimcodd urged Treasury to allow the Reserve Bank to adjust the supply of ZiG to maintain confidence in future gold convertibility, and curb public resource leakages through corruption and unbudgeted expenditure through quasi-fiscal operations. Quasi-fiscal activities are any undertakings carried out by state-owned banks under government direction, but are unbudgeted for. For instance, the RBZ has since 2000 been carrying out quasi-fiscal activities across all sectors of the economy such as health, infrastructure, education and agriculture, in mostly unsuccessful attempts to promote economic growth, according to the independent public policy think-tank Veritas. In 2008, the RBZ funded the farm mechanisation programme, and gave loans at concessionary rates to resettled farmers, companies and statutory bodies outside the national budget, which were never audited and were seldom repaid. The programme, among others, was not authorised by the Reserve Bank of Zimbabwe Act or any other law, and sank the RBZ into debt. This saw Parliament pass the Reserve Bank of Zimbabwe (Debt Assumption) Act of 2015 through which the government would take over the debts and gave the bank a clean start. On maintaining a stable exchange rate, Zimcodd said ZiG notes must be made available and easily accessible to the transacting public. “There is also a need for increased efforts to subdue exchange rate multiplicity, which sustains corruption, rent-seeking, and round-tripping shenanigans. It is the public’s view that gold coins and gold-backed digital tokens (GBDT) trading should be discontinued as they risk creating unnecessary gold demand, which constrains an accelerated accumulation of reserves,” it read. “These gold coins and GBDT will likely have their own exchange rates in the market. At least following the global 10-15% rule of thumb, the ZiG notes must also be made available and easily accessible to the transacting public. Otherwise, the ZiG notes and coins will also have a different exchange rate from that of ZiG electronic balances, creating a fertile ground for parallel market activities. “Transparency will foster better communication between RBZ and all its stakeholders, thereby reducing uncertainty, building trust, and contributing to practical policy-making. Transparency principles related to RBZ governance (legal structure, mandate, autonomy, decision-making arrangements, risk management, internal accountability, communication, and confidentiality).” Zimcodd said the RBZ should adopt advanced financial technologies such as distributed ledger technology for transparency, while rolling governance reforms. “This will circumvent the dangers of reliance on centralised, traditional database systems, which are highly prone to manipulation, may be hacked, and are susceptible to genuine human errors. In addition, advanced technologies are vital in ensuring precious mineral production tracking and monitoring to minimise chances of leakages through illicit trading,” it said. “Governance reforms — enhancing justice delivery, implementing political reforms, increasing public sector transparency and accountability, strengthening anti-corruption mechanisms, and enhancing security, safety, and respect for all rights and freedoms. “Central bank independence — the RBZ must be able to make monetary policies that are not dictated by political considerations. This gives monetary policy credibility, which is key to reducing inflationary expectations.” Govt must support ZiG currency through raft of solid measures Finance minister Mthuli Ncube
Page 34 News Impoverished workers sing the blues BRENNA MATENDERE ZIMBABWEAN workers marked the International Workers' Day on 1 May without pomp and fanfare amid biting economic hardships, with trade union leaders pressing the government to take action against the multi-layered socio-economic plight of their members in the wake of the moribund new ZiG currency that has eroded the value of salaries. President Emmerson Mnangagwa made a virtual address to the nation a day ahead of the commemorations and urged workers to be resilient, but union leaders saw it as hollow rhetoric. In a statement, Progressive Teachers' Union of Zimbabwe (Ptuz) president Takavafira Zhou said poor salaries, atrocious conditions of service, increase in basic commodity prices, ignoring of the urgent need for proper industrial relations machinery by government/employers and aggravation of the plight of workers by drought have fueled industrial disharmony in Zimbabwe since the colonial period. “Our current conditions are no exception, more so considering the effects of the zigorised economy, and acidic, rigid, arid, parochial and educationally riddled and ill-conceived Heritage curricula. “While today we mourn the demise of teachers in Zimbabwe in particular, and all workers in general, from grace to grass with monotonous regularity under the auspices of the Second Republic, we want to reiterate our long-held view that the darkest hour is just before dawn. We, therefore, urge workers in Zimbabwe to navigate across the current challenges, unite, organise and fight for better salaries and conditions of service,” he said. Zhou said the issue of better salaries and decent work agenda can never be surrendered to the employer, even at the last moment of possible defeat. “Government workers, particularly teachers, deserve a basic salary of US$540, housing allowance of US$300, transport allowance of US$150, education allowance of US$150 per month, and other allowances in line with duties and responsibilities of various professions. “While state-sponsored fragmentation, deindustrialisation, deproletarianisation, and political thuggery have reduced today's union voices to a cat's meow rather than the lion roar of 1945, 1948, 1955/6, 1996, and 1997/1998, we are confident as Ptuz that with unity of purpose, dexterity and ingenuity unions can move nearer to the movements that gave us Benjamin Burombo, Joshua Nkomo, and Morgan Richard Tsvangirai,” he said. In a statement, Crisis in Zimbabwe Coalition said the majority of people, especially the working-class, have seen immense social progress over the years which was achieved through post-1980 labour laws, which recognised human and worker rights that were fought for and enshrined in the constitution's nill of rights. These have however evaporated with time. “However, the question remains: how much progress have we made towards achieving our goals of liberation, democracy, and universal social emancipation since 1980? As we celebrate International Workers' Day, it is essential to recognize that your labour is the backbone of our economy, and your dedication is the driving force behind our progress. As the Crisis in Zimbabwe Coalition, we recognize the challenges that you face and stand in solidarity with you in the fight for fair wages, safe working conditions, and social justice. We must recommit ourselves to supporting one another and advocating for a better future for all. “The recognition of workers' rights in our constitution and labour laws did not come as a favour. The workers had to organise themselves into trade unions, build their own power, and wage a non-sexist struggle for these rights. Today, more than ever, we need the unity of organised workers and the working-class at large to roll back the neoliberal agenda that undermines collective bargaining,” reads the statement. The organisation said the government of Zimbabwe must restore workers' dignity by ensuring decent wages, restoring lost pensions and savings, freeing the labour space, and re-introducing safety nets in public health and education to cushion the peasants and workers from the externalisation of wealth and minerals. “We need to acknowledge that the challenges faced by the working class and the masses of our people are a direct result of the Zanu PF government's poor governance, corruption, lack of rule of law and dictatorship. Therefore, we strongly urge all progressive workers in our country and the entire labour movement to recognize that workers cannot thrive in the absence of democracy, rule of law, and respect for human rights. This necessitates the unity of the working class, as well as the organisation and mobilisation of our people to confront the issues that Zimbabwe is facing.” Workers in the private sector are also without joy as the economic hardships bite. Progressive Furniture, Timber and Allied Workers' Union secretary-general Artingson Magune said since January this year, the National Employment Council (NEC) has not reviewed wages which was last done in July 2023. “Our message to furniture manufacturing and timber processing industries is that we are not happy since both Nec for furniture and lumber milling has not negotiated wages or salaries since January 2024. Workers are still earning July 2023-negotiated salaries . Workers are crying that the government should review its tax bracket from US$100 tax free to US$300 tax free since poverty datum line is hovering around US$600. Most workers are walking to and from work. As a union, we look foward to government to review the tax free bracket and the TNF [Tripartite Negotiating Forum] should come with bold resolutions that support the workers,” he said. The Federation of Zimbabwe Educators Unions (Fozeu) adopted the 2024 International Labour Organisation's theme for May Day and slightly adapted it to suit context and came up with the theme: “Decent Work, Social Justice for all through Collective Bargaining.” The organisation said its theme is a rallying point for millions of Zimbabweans who are in precarious work, vulnerable and enduring socio-economic injustice. “For teachers and civil servants, the urgent issue is the right to collective bargaining, which can unlock a window of opportunity towards the realisation of labour justice, decent work, and adequate compensation. Zimbabwe’s civil servants have been systematically denied right to collective bargaining by the failure of government, as the employer, to align labour laws to the provisions of the 2013 constitution, and progressive regional and international standards. “The Zimbabwean government violates section 65 of the constitution by Federation of Zimbabwe Educators Unions Theme: Decent Work, Social Justice for all through Collective Bargaining by unilaterally fixing conditions of service for its workers without going through collective bargaining processes which are a fundamental right. “To sanitise and render a veneer of legitimacy to the illegalities, the government has secured the active cooperation from masquerades led by a Cecilia Alexander, who lacks legitimacy to represent all government employees. In the absence of collective bargaining, teachers and other civil servants now earn a paltry US$300 at a time when the cost of living exceeds US$1 000, leaving teachers unable to afford school fees for their own children. The Federation demands US$1 260 as the minimum salary for teachers and all civil servants,” reads the statement. NewsHawks Issue 175, 3 - 9 May 2024
NewsHawks News Page 35 1ssue 175, 3 - 9 May 2024 NATHAN GUMA CHIADZWA villagers resettled at Arda Transau continue to be sold a raw deal, with a new report showing a drop in living standards characterised by acute water shortages, increased diseases and child sexual abuse. After the discovery of diamonds in Chiadzwa, Manicaland province, many families were moved off their ancestral land in the Marange communal lands and resettled at Arda Transau between 2009 and 2011. The government declared the diamond fields protected areas under the Protected Places and Areas Act (PPAA) to pave way for the exploitation of the gems. While promises were made to improve the livelihoods of the resettled families, most of the promises are yet to be fulfilled. For instance, each family was to occupy a three-bedroomed electrified house with clean, treated piped water from taps situated at each house. However, a lack of access to social amenities like water have seen living conditions resembling a concentration camp. Findings by a report titled Action Voices Community Solidarity Forever, the living conditions in communities near mining areas continued to worsen in 2023. “The discovery of diamonds in 2006 led to a rush and was followed by a myriad of community experiences. The Human Rights Watch report describes the situation in Marange as anarchy. They report the prevalent human right abuse at the hands of both military and the police,” said Cosmas Sunguro, Zimbabwe Diamond Allied Workers' Union (Zidawu) president in the report. Zidawu represents diamond mine workers in the country. “As a child I recalled when the environment could provide for us with wild fruits and clean environment. Most families were dependent on livestock farming and agriculture. These economic activities were instrumental to educating many of the children, sending them to university. “All our old way of life has been slowly eroding. With little access to land. With little money made as artisanal mining most families were able to build new houses, installed solar panels, bought radios, bicycles, even cars. When the government banned artisanal mining in December 2006, we all thought this was life changing decision for our community; little did we know that the community income would dry.” The villagers are also reeling under acute water shortages, with at least 600 families living without a constant water supply, according to the report. “The promise of development is slowly crumbling with dry taps. The community is unable to pay for water service due to declining socio-economic conditions in the Arda community. The relocated Arda community has been struggling to access water due to exorbitant tariffs charged by the Zimbabwe National Water Authority (Zinwa),” it reads. According to the report, while some urban infrastructure has been installed in some parts of the area to provide water, it has been expensive to maintain for the villagers. This has seen some community members being disconnected due to the increasing debt to Zinwa, leaving them without water for days. “The community are expected to pay at least US$3 per month. Anjin and Jinan sections have been severely impacted with their bills mounting. The majority of the community members are saying that they cannot afford to pay for water,” it reads. “Many cited the reason being that they lack employment and have no meaningful economic income. while others simply believe the diamond mines which relocated them should pay. One of the relocated community members says that they were relocated from Chiadzwa where they never paid for water. Therefore, they find no reason to pay for water yet the companies who relocated them are enjoying diamonds.” The report has also flagged increasing cases of abuse fuelled by artisanal miners operating in the area. “Our research as Zidawu indicated that there are more than 30 bases of artisanal miners. Some of those staying in homes are accused of using their dollar power to attract young girls,” it reads. “There are cases of buyers destroying the girl child by splashing money. This has contributing to high school dropouts and poor performance in schools. Whilst the social fabric is affected at an alarming rate, there is a deteriorating environmental health.” According to the report, the problems have been coupled by malaria emanating from open pits left by mining companies in the area. An investigation by The NewsHawks last year showed that the exploitation of rough diamonds by Chinese firm Anjin Diamond Company in the Chiadzwa area of Manicaland province led to a sharp rise in malaria cases due to poor environmental management practices. The company left pits that became breeding grounds for mosquitoes, which saw an increase in malaria cases in Chiadzwa, with the pits claiming lives while posing serious danger to humans and wildlife. “According to an official of the ministry of Health, ’Malaria cases are on the increase due to open pits that are yet to be rehabilitated and others left by artisanal miners’,” it reads. “This is becoming a threat to children as they are prone to malaria. Some of the gwejaz [unlicensed artisanal miners] are accused of defecating in open places. With the place under threat from cholera, this is not good news." Arda Transau villagers cry foul over neglect
Page 36 News Legal Insights VENLA STANG & HANNAH VAN DIJCKE, INTERNATIONAL LEGAL ASSOCIATES INDEPENDENT judges are a nightmare for would-be dictators. They have the immense power to overturn the abusive actions of creeping authoritarian regimes by acquitting dissidents of bogus charges, holding regime officials accountable, or upholding free and fair elections. Because of judges’ essential checking power, authoritarian regimes across the globe regularly attack them. At times, they do this very overtly, like, for instance, arbitrarily sacking thousands and arresting hundreds of judges, as in the case of Turkey after the failed 2016 coup attempt. Yet, more often than not, creeping authoritarian regimes use measures disguised as legitimate or reasonable that intimidate and harass judges or otherwise obstruct their work. These disguised judicial attacks are particularly popular among “hybrid authoritarian” regimes. These are regimes that democracy and freedom indexes like V-Dem, the Economist, and Freedom House recognize have some elements of authoritarianism but are not fully authoritarian yet — largely because the elections that got them into or maintained in office were “competitive” enough that classifying them as authoritarian was inadequate. Thus, these hybrid authoritarian regimes, such as Hungary, Bolivia, Kenya, or India, benefit from the disguise of this “democratic” legitimacy. We highlight three disguised measures authoritarian regimes globally use time and time again to attack the judiciary. Changes to Judicial Tenure One of the most efficient types of disguised judicial attacks is sudden changes to judicial tenure. Tactics such as forcing judges unfavorable to the regime into early retirement or stripping judges of guaranteed tenure enable a regime to shape a favorable judiciary under the guise of reasonable changes to judges’ appointments. In 2012, for example, Hungary lowered judges’ retirement age by eight years through a new constitution to supposedly “standardize public-sector retirement” and “establish a more balanced age structure.” While seemingly legitimate, the measure forced nearly 300 judges, who were appointed by the previous regimes and were not afraid to rule against the current regime’s interest, into immediate retirement. Despite Hungary’s Constitutional Court annulling parts of the law as unconstitutional and the European Court of Justice finding the law incompatible with EU law, many judges could not reclaim their positions, and regime loyalists took over their seats. In the other corner of the world, the Bolivian regime engaged in even more aggressive changes to judicial tenure than its Eastern European counterpart. A 2010 law stripped Bolivian judges of their tenure, causing 47% of ordinary Bolivian judges in 2022 to have temporary positions. While the change was adopted by law, it disguised an aggressive attack on judicial independence, as recognized by Principle 12 of the UN Basic Principles on the Independence of the Judiciary. Without guaranteed tenure, judges are incentivized to rule in favor of the regime that determines their income. Judicial Budget Cuts Another common strategy for attacking judges is to tighten their belts. Under the guise of financial responsibility and austerity measures, regimes often reduce the court’s operating budget or judges’ salaries or benefits so drastically that they are unable to properly exercise their checking function. Principle 7 of the UN Basic Principles on the Independence of the Judiciary recognizes that adequate resources are essential for the judiciary to perform properly. The Bolivian regime, for instance, reduced judges’ salaries so much that the budget of the entire judicial branch is at an all-time low. It is less than 0.5% of the total national budget, which is much below the 2-6% that the UN Special Rapporteur on the Independence of Judges and Lawyers found to be a normal judicial budget. While there may be legitimate reasons for budget cuts, the drastic cuts in Bolivia have obstructed judges’ work. In Sub-Saharan Africa, the Kenyan regime used a similar tactic. In 2018, the regime suspended judges’ medical insurance and, a year later, momentarily cut 26% of the judiciary’s operating budget, forcing it, for example, to operate without an Internet connection. While the regime disguised these cuts as necessary due to insufficient funds, the timing raised some eyebrows. The judicial budget cuts came right after President Uhuru Kenyatta vowed to “fix” the “crooked” judiciary, following the Supreme Court’s decision to nullify his electoral win. Judicial Transfers Finally, regimes often target individual regime-critical judges using arbitrary disciplinary measures. India regularly transfers regime-critical judges to smaller or less influential courts as a way of punishment or intimidation. The transfer of Delhi High Court Justice S Muralidhar in February 2020 and Chief Justice Sanjib Banerjee in November 2021 are prominent examples. Both well-respected justices were transferred to smaller courts after — in Muralidhar’s case, mere hours after — rendering decisions against regime interests. The Delhi High Court Bar Association (DHCBA) expressed “shock and dismay” at the transfer of Justice Muralidhar, whom it considered to be one of its finest judges, and urged its members to abstain from work in protest. The Madras Bar Association condemned Justice Banerjee’s transfer asking it to be reconsidered, and 31 senior counsels vouched for Banerjee’s work, saying they were “unable to fathom the reasons for his sudden transfer.” While Art. 222 of the Indian Constitution gives the regime the power to transfer judges, and the regime cites seemingly legitimate reasons — such as the need to exchange talent across the country — these transfers often, in fact, are disguised judicial attacks. From smaller or less influential courts, regime-critical judges cannot meaningfully exercise their checking power. Disguised judicial attacks are essential in the dictators’ toolkit, especially in hybrid authoritarian regimes. They enable these regimes to remove or silence independent judges who threaten their repressive rule while keeping up some appearance of legitimacy or reasonableness. These attacks are a blatant violation of the UN Basic Principles on the Independence of the Judiciary. According to Principle 2, the judiciary must be able to decide matters “without any restrictions, improper influences, inducements, pressures, threats or interferences, direct or indirect, from any quarter for any reason.” HRF calls on the international community to strongly condemn disguised judicial attacks and to stand with judges who experience such attacks. The international community should recognize disguised judicial attacks for what they are: aggressive moves toward the judiciary to undermine judges’ ability to do their invaluable job of keeping authoritarian regimes in check. About the writer: Venla Stang and Hannah Van Dijcke are international legal associates at the Human Rights Foundation. Dictator's judicial toolkit: How to attack judges NewsHawks Issue 175, 3 - 9 May 2024
NewsHawks News Page 37 1ssue 175, 3 - 9 May 2024
Page 38 International Investigative Stories VINCENZO Muià was determined to find out who had killed his brother Carmelo, a leader in a faction of the feared ’Ndrangheta crime group who was gunned down on the streets of Siderno, a coastal city in southern Italy in 2018. So he got on a plane to Toronto. Muià wanted to talk with Angelo Figliomeni, 61, whom Canadian police have accused of leading a faction of the ’Ndrangheta so powerful that it is dictating events in Siderno from across an ocean. “They know; they know who shot,” said Muià on a wiretap quoted in a court document from Italy, where authorities were investigating him for his alleged involvement in organized crime. After Italian police notified their counterparts in Toronto about Muià’s impending journey across the Atlantic, the agencies began working together. Italian officers were watching as Muià cleared customs and immigration at Toronto’s Pearson International Airport on the evening of March 31, 2019. Muià’s trip to Canada to speak with Figliomeni, which was previously reported by the National Post, underscores the power of the ’Ndrangheta faction he allegedly leads in the Greater Toronto Area, according to Italian and Canadian authorities and experts. Figliomeni declined to comment through his lawyer. While Italian court documents show that Muià thought he had information about who may have killed his brother, there is no allegation that Figliomeni was in any way responsible for the murder. The episode also highlights problems Canada has in prosecuting organized crime groups, due to what experts say are overly broad interpretations of laws meant to protect individual rights. “The Canadian security intelligence apparatus, inclusive of the police, does not have the same protections and the same benefits that our international partners have when it comes down to investigating transnational organized crime threats,” said Calvin Chrustie, a retired senior federal Royal Canadian Mounted Police officer. Stephen Schneider, a criminology professor at St. Mary’s University in Nova Scotia, said Italian authorities are “frustrated” by the fact that alleged ’Ndrangheta members have found security in Canada. But there’s little they can do. International InvestigativeStories Alleged Italian mobsters grew powerful in Toronto. Experts say Canadian law can’t stop them An officer emerges from a building holding alleged gambling paraphernalia during raids in the Project Sindacato investigation in July 2019. Credit: York Regional Police NewsHawks Issue 175, 3 - 9 May 2024
Page 39 “There’s just case after case of offenders who would otherwise be in jail in the United States or Italy that are roaming free here,” said Schneider, the author of “Iced: The Story of Organized Crime in Canada.” Figliomeni was previously convicted on weapons charges in Italy and still faces charges there, where court documents show he was wanted for “mafia association.” But he is safe in Canada, where the “mafia association” charge is not an extraditable offense. In fact, it doesn’t even exist in the Canadian legal code. Vittorio Rizzi, a deputy director general of Italy’s Public Security Department, said inconsistencies in laws between countries challenge international efforts to combat the ’Ndrangheta. “The misalignment of legal systems is a constant in cooperation activity,” said Rizzi, who leads an initiative against the ’Ndrangheta involving law enforcement in 18 countries, including Canada. Some years after he left Italy and set up in Canada, Figliomeni became the prime suspect in a major organized crime investigation by Toronto’s York Regional Police, which led to charges that his organization had laundered illicit funds. But prosecutors abandoned the case after it was shown that police had listened to calls between defendants and their lawyers, and charges against Figliomeni and others were stayed . The collapse of the case, known as Project Sindacato, added to a long list of Canada’s failed efforts to prosecute organized crime, which experts blame mainly on two quirks of the legal system: an obligation for prosecutors to disclose to defense lawyers more information than in other countries — which can lead to lengthy wrangling over what must be shared — plus a separate law requiring cases that go before a province’s Superior Court to be completed within 30 months of charges being laid. Such laws “make it virtually impossible to prosecute certain criminal and threat convergence cases in Canada,” according to a recent report by the International Coalition Against Illicit Economies, a Washington, D.C.-based security consulting firm. Chrustie, who co-authored the report, said defense lawyers in Canada have the right to far more information than their counterparts in countries like the U.S., the U.K., and Australia. “There are extremely limited provisions to protect sensitive information, informants or investigative techniques,” he said in an interview. The decision to drop the case against Figliomeni and his associates frustrated the officers who worked on Project Sindacato. York Regional Police had spent $8 million (US$6.1 million) and involved 500 officers in what they touted as the largest organized crime investigation in their history. As the former York Regional Police superintendent for organized crime, Mike Slack was a senior officer on the investigation. He said he was at police headquarters in a meeting with “the main players in the case” –– including investigators and prosecutors –– the evening the decision came down from government prosecutors that it would be abandoned. “A lot of emotions were expressed,” recalled Slack, who has since retired. “A lot of head shaking, walking around and coming back and sitting down.” Slack said police did not use calls between lawyers and their clients to build their case, and added that among about 1.5 million intercepted communications, it was normal that investigators might capture such calls. “They don’t have enough resources,” he said of the government Crown prosecutors. “They don’t have enough Crowns. The Crowns are basically working on their own, trying to go through volumes and volumes of disclosure. We get disclosure in a file with terabyte hard drives now.” Adam Boni, a Toronto criminal lawyer and former federal Crown prosecutor, called the criticisms made by senior York Regional Police officers “hard to swallow.” “These decisions to stay proceedings because of error, carelessness or downright dishonesty –– these are decisions that are not lightly made,” said Boni, who was not involved in Project Sindacato but has handled many organized crime cases in his 30-year career. “It just smacks of armchair quarterbacking now to say, ‘Well, you know, we could have or we should have proceeded,’” he said. It was the wiretapped calls between suspects and their lawyers that convinced prosecutors to stay the charges. But early in the case, lawyers for the defendants also filed a joint motion arguing that police had mischaracterized “mundane and innocuous actions as sinister criminal meetings” to match their preconceived notion that the accused were mobsters. Ontario provincial prosecutors declined to answer questions about why they decided to stay charges relating to organized crime and money laundering in the Sindacato case. Overseas Influence Life in Canada is good for Figliomeni and his associates, judging by the huge amounts of cash and possessions police confiscated from them in 2019. Authorities seized assets worth more than 35 million Canadian dollars (US$27 million) from the Figliomeni group. That included CAN$1 million (US$750,600) in cash, the equivalent amount of jewelry and Rolex watches, as well as luxury cars — including one Ferrari valued at CAN$880,000 (US$660,000). Police also restrained 27 properties –– meaning they could not be sold –– worth about CAN$24 million (US$18 million). All of it had to be given back to Figliomeni and his group after prosecutors decided not to pursue the case, police say. Figliomeni moved to Canada in the early 2000s, but Italian court documents show that his family’s roots in crime and politics in Siderno run deep, including a relative who served as mayor before he was sent to prison as a ’Ndrangheta member. His father, Vincenzo Figliomeni –– known locally as “U Brigante,” or “The Bandit” –– was also an ’Ndrangheta member, according to Italian court documents, and was murdered outside his home in Siderno in 1988. His clan had been at war with a rival group, and he was shot twice in the head and torso with a shotgun, according to Italian media reports. Now, from his base in suburban Toronto, Figliomeni is alleged to have influence over his ’Ndrangheta clan back home Siderno –– a situation Italian authorities have described as unprecedented. “This is something we have never seen in Italy,” said Fausto Lamparelli, senior director of the Italian state police, at a 2019 press conference in Toronto announcing charges against alleged members of Figliomeni’s group. The ’Ndrangheta is notoriously secretive, and its global operations have always been dictated by leaders in southern Italy. But that is apparently not the case for the Toronto-based faction allegedly led by Figliomeni. According to Italian prosecutors on the case, “the fate of the entire association, also in Siderno, depends on decisions made in Canada.” While he is a long way from home, Figliomeni’s alleged association with the ’Ndrangheta reflects the organization’s increasingly international profile, according to Italian prosecutor Giuseppe Lombardo. He described the criminal network as “a huge mafia holding company.” The group’s illicit earnings provide “enormous capital to invest” into the legal economy, he said. Murder and Skin Cream In 2019, mob violence on both sides of the Atlantic brought authorities in Canada and Italy together to investigate the Siderno group. Dubbed “Canadian ’Ndrangheta Connection 2” by Italian authorities, the collaborative investigation exposed the power of the faction operating in Toronto, according to a report by Italy’s anti-mafia division, the Direzione Investigativa Antimafia. Filgiomeni’s group had allegedly become embroiled in a war with a rival crime clan in the Greater Toronto Area city of Vaughan in 2017, which included “attempted murder, drive by shootings and arson,” according to York Regional Police, who launched Project Sindacato to investigate. Meanwhile, violence had also exploded back in Siderno, where authorities were investigating the murder of Carmelo Muià, according to Italian court documents. When Vincenzo Muià traveled to Toronto seeking information about the murder, he brought along a phone that police had infected with “Trojan” bugging software. The tapped phone –– which picked up calls as well as sounds nearby –– gave Italian and Canadian police extra insight into the inner life of Figliomeni’s group. This included, an Italian court document says, “an important conversation” Muià had with Figliomeni over dinner at the home of Luigi Vescio, who runs the Fratelli Vescio funeral homes in Greater Toronto and was charged in Italy for alleged mafia association. (Vescio did not respond to a request for comment.) The fact that Muià took a flight to Canada to see Figliomeni is “one indication of how the power shifted to Toronto,” said Schneider, the criminology professor. The wiretaps show Muià trying to get answers about his brother’s murder in the middle of a discussion about facial skin care, with Vescio urging the other guests to try the high-end French brand La Mer. “All these actors and actresses use this,” Vescio tells Figliomeni. “I’ll give you a sample this evening,” he says, and goes upstairs to find the cream, leaving Figliomeni and Muià alone together. As Figliomeni muses about getting a facelift, Muià brings the conversation back to his reason for traveling to Toronto. “I came specially to see you. Otherwise I don’t know what the fuck I came for,” says Muià. It’s unclear what happened next, but Muià appears to have left Canada frustrated and “embittered,” according to Italian court documents. After returning to Italy, Muià was convicted of mafia association, then acquitted upon appeal. However, he is currently serving a fiveyear sentence after being convicted on charges including extortion and weapons, including possession of a machine gun. — Organized Crime and Corruption Reporting Project. Angelo Figliomeni is from Siderno, a town in Southern Italy's Calabria region. Credit: Turismo Reggio Calabria NewsHawks International Investigative Stories 1ssue 175, 3 - 9 May 2024
Page 40 The NewsHawks is published on different content platforms by the NewsHawks Digital Media which is owned by Centre for Public Interest Journalism No. 100 Nelson Mandela Avenue Beverly Court, 6th floor Harare, Zimbabwe Trustees/Directors: Beatrice Mtetwa, Raphael Khumalo, Professor Wallace Chuma, Teldah Mawarire, Doug Coltart EDITORIAL STAFF: Managing Editor: Dumisani Muleya Assistant Editor: Brezh Malaba News Editor: Owen Gagare Digital Editor: Bernard Mpofu Reporters: Brenna Matendere, Ruvimbo Muchenje, Enock Muchinjo, Jonathan Mbiriyamveka, Nathan Guma Email: [email protected] SUB EDITORS: Mollen Chamisa, Gumisai Nyoni Business Development Officer: Nyasha Kahondo Cell: +263 71 937 1739 [email protected] Subscriptions & Distribution: +263 71 937 1739 Reaffirming the fundamental importance of freedom of expression and me- dia freedom as the cornerstone of democracy and as a means of upholding human rights and liberties in the constitution; our mission is to hold power in its various forms and manifestations to account by exposing abuse of power and office, betrayals of public trust and corruption to ensure good governance and accountability in the public interest. CARTOON Voluntary Media Council of Zimbabwe The NewsHawks newspaper subscribes to the Code of Conduct that promotes truthful, accurate, fair and balanced news reporting. If we do not meet these standards, register your complaint with the Voluntary Media Council of Zimbabwe at No.: 34, Colenbrander Rd, Milton Park, Harare. Telephone: 024-2778096 or 024-2778006, 24Hr Complaints Line: 0772 125 659 Email: [email protected] or [email protected] WhatsApp: 0772 125 658, Twitter: @vmcz Website: www.vmcz.co.zw, Facebook: vmcz Zimbabwe Where is the money from? Editorial & Opinion SCHOOLS in Zimbabwe have opened for the second term amid heart-rending circumstances, with many parents failing to raise money for fees in the face of unbearable economic hardships. Gone are the days when the opening of schools was a joyful occasion on the family calendar. For most citizens, the basic task of putting a square meal on the table has become a toll order — let alone raising hefty sums for school fees. The opening of schools is now associated with fear, trepidation and anxiety. When poverty-stricken families are forced to choose between either buying foodstuffs or paying school fees, the dropout rates shoot through the roof. The tragedy in all this is that education — which in a normal society plays the role of great equaliser by ensuring that everyone gets a somewhat fair chance at leading a dignified life — is now a preserve of the privileged few. As the dropouts increase, there are menacing storm clouds gathering on the horizon: drug abuse, teenage pregancy, crime and prostitution. What kind of society have we become? The government is out of touch and utterly clueless. A fortnight ago, cabinet announced that the authorities had recorded tremendous success in tackling drug and aubstance abuse. And where was the evidence for such a lofty claim? Well, the government proudly revealed that 6 148 people had been arrested since January 2024 for drug-related offences. Of this number, 677 were suppliers and 5 471 were end users. Incredible! Is the government seriously hoping to solve the drug menace by merely arresting the end users and small-time peddlers? Tinkering with the symptoms while failing to address the root causes? Arresting drug-dependent school dropouts instead of fixing the broken education system and the beleaguered economy will not solve any problem. Youngsters who should be in school or college are loitering at street corners, dazed by illicit substances and selling their souls to the highest bidder. Children's education and future prospects are indeed at stake. Most state-run schools are in disrepair, and standards have fallen alarmingly. Teachers earn a pittance, reduced to paupers by uncaring politicians whose only objectives are power retention and self-enrichment. We all know that public hospitals are also crumbling. So where is taxpayers' money going? When parents are unable to afford school fees and teachers are grossly underpaid, it creates an unstable learning environment that can have long-lasting effects on the children's academic performance and overall well-being. The devastating effects of the Zanu PF government's incompetence are yet to be fully felt. Zimbabwe is headed for a moment of truth. We are not far away from the day when a vast population of young people — unemployed, unskilled, hopeless and dejected — will finally lose patience and unleash mayhem. It has happened in other countries where young people, upon finally realising that they have nothing to lose, toss aside the shackles and become ungovernable. Already, a chaos economy has taken shape and it is only a matter of time before the full ramifications of dystopia permeate all facets of society. Improvements in the economy and education system are crucial to ensuring a better future for the children of Zimbabwe. Parents deserve a dignified income, teachers must be paid well, and the country urgently needs economic reforms as well as increased investment in education. These are the essential steps that can help create a more stable and supportive environment for learning and growth. Education chaos beckons Dumisani Muleya Hawk Eye NewsHawks Issue 175, 3 - 9 May 2024
Business MATTERS NewsHawks CURRENCIES LAST CHANGE %CHANGE USD/JPY 109.29 +0.38 +0.35 GBP/USD 1.38 -0.014 -0.997 USD/CAD 1.229 +0.001 +0.07 USD/CHF 0.913 +0.005 +0.53 AUD/USD 0.771 -0.006 -0.76 COMMODITIES LAST CHANGE %CHANGE *OIL 63.47 -1.54 -2.37 *GOLD 1,769.5 +1.2 +0.068 *SILVER 25.94 -0.145 -0.56 *PLATINUM 1,201.6 +4 +0.33 MARKETS *COPPER 4.458 -0.029 -0.65 BERNARD MPOFU ZIMBABWE’S history of policy inconsistency has once again been laid bare after the central bank announced that bond notes which should have been phased out by end of April will remain in circulation until further notice, analysts have observed. The southern African nation is lowly ranked on the World Bank Ease of Doing Business Rankings, with experts saying policy flip-flopping as one of the factors unnerving investment inflows into the country. Zimbabwe is also lagging its regional peers in terms of foreign direct investment despite being endowed with vast mineral resources. The Reserve Bank said the new currency would be backed by foreign currency and gold reserves. After launching the country’s new currency, Zimbabwe Gold (ZiG), on 5 April, the central bank's new governor John Mushayavanhu told journalists attending the launch that bond notes or the Zimbabwe dollar, which had been in circulation since 2016, would be phased out by the end of that same month. However, barely 48 hours after the deadline had lapsed, Mushayavanhu told a local radio station, Star FM, which is a unit of the state-run Zimpapers Group that the bond notes would remain in circulation until further notice. This backtracking means ZWL notes will operate along the ZiG, whose notes came into circulation on Tuesday, 30 April. ZiG notes and coins were released first and have since been accessed by the public. “We are currently allowing them (bond notes) to co-circulate. And we will let the market know when the volumes of bond notes coming through have thinned out,” Mushayavanhu said. “We will then advise a date to say, ‘After such and such a date, we will no longer be accepting bond notes. But for now, let them come through. We don’t want a situation where someone is sitting on bond notes and they are deep in the rural areas.” Responding to Mushayavanhu’s remarks, prominent local economist Professor Gift Mugano said the new currency will eventually fail for a number of economic reasons. “In the history of the Reserve Bank of Zimbabwe governors, I have not seen or heard of confusion and policy inconsistency of this magnitude!” he said on his X handle. “Folks, when I say that ZiG will fail, you shout at me. So in all honesty, you really think the ZiG will hold on and entrench itself as the currency of choice?” Just recently, the World Bank has subtly distanced itself as the driving force behind the introduction of Zimbabwe’s new currency. The multilateral lender said it only offers policy advice to several countries, member states like Zimbabwe who have the prerogative or discretion to choose a currency of their choice. This was in response to Reserve Bank governor Mushayavanhu’s claims that ZiG was the brainchild of the Bretton Woods institution. Mushayavanhu claimed that the World Bank was central to the ZiG initiative through consultancy. The World Bank Group is one of the world’s largest sources of funding and knowledge for developing countries. Its five institutions — International Bank for Reconstruction and Development, International Development Association, International Financial Corporation, Multilateral Investment Guarantee Agency and International Centre for Settlements of Investment Dispute — share a commitment to reducing poverty, increasing shared prosperity, and promoting sustainable development. RBZ somersault on Zimbabwe dollar expiry stokes confusion RBZ governor John Mushayavanhu
Page 42 Companies & Markets MAJOR fuel retailer Shell has confirmed that it is exiting the South African market after 122 years on local soil. The petrochemical conglomerate operates some 600 service stations and forecourts across the country through its Shell Downstream South Africa (SDSA) subsidiary. “Shell has decided to reshape the Downstream portfolio and intends to divest our shareholding in Downstream South Africa. Considering Shell Downstream South Africa’s well-known history, this decision was definitely not taken lightly,” pokesperson Pam Ntaka told SABC News. “During this process, we will work to preserve Shell Downstream South Africa’s operating capabilities, maintain the Shell brand presence, and secure the best possible outcome for our people and customers in South Africa.” No cause for alarm Peter Morgan, CEO of the Liquid Fuels Wholesalers Association of South Africa, stated in a CapeTalk interview that he believes Shell’s departure will have little impact on the domestic fuel industry. The expert expects that Shell will likely leave behind a smaller sub-brand in the country called Viva Energy and retain a minor stake in the fuel franchise while finding an outside investor to take on majority ownership. Viva Energy is one of Australia’s top fuel retailers and enjoys the sole rights to sell Shell-branded petrol, diesel, and lubricants in the Oceanic nation. Should Viva come to South Africa, it will likely take over Shell’s well-established infrastructure and continue serving its clients without too many hiccups along the way. Morgan referred to other petrochemical giants who made similar moves in recent years that barely so much as caused a ripple in the industry, including Caltex’s rebranding to Astron Energy. The CEO contends that Shell’s departure has nothing to do with the country’s equity laws and that divestments of this nature are common “for all the oil majors throughout Africa.” This follows reports that the energy company’s motivation to exit South Africa is partly due to an alleged dispute between it and its BEE partner, Thebe Investments Corporation. “If you look at Shell, they actually gave their head office in Johannesburg to the ANC,” said Morgan. “So, I don’t understand how people can say that Shell is fed up [with the country’s equity laws] if they were doing things like that.” A possible rationale for the exit could be the fact that local refineries have fallen behind international refineries in terms of the quality of fuels they produce, and it would be too expensive to upgrade the Shell/ BP-owned Sapref refinery accordingly. Years ago when fuel standards across the globe were being improved, the South African government and car engine manufacturers were locked in negotiations over who will flip the bill for upgrading domestic refineries to enable them to produce the cleaner propellants. “That discussion was never finalised, so unfortunately, the refineries have to upgrade at their own cost and they have to import various components at their own cost,” said Morgan. “I think this pressure point in the return on investment in the South African fuel industry, rather than anything to do with BEE, is why [Shell] was so comfortable to shut their refineries down.” Be that as it may, Morgan’s message for all South Africans is “don’t panic.” It is unlikely that fuel prices will be impacted and stations closed down after Shell’s departure, he said. — TopAuto.co.zw How Shell’s exit will impact the South African petrol industry NewsHawks Issue 175, 3 - 9 May 2024
Companies & Markets Page 43 JUSTICE minister Ziyambi Ziyambi has appointed Harare lawyer Mutsa Remba as the administrator of Trojan Nickel Mine Limited which has been put under reconstruction amid lingering controversy over his mines which were state-owned ended up in private hands and now in under business rescue. Remba, of Dube, Manikai & Hwacha Legal Practitioners, will be deputised by Ian Mtetwa. Trojan Mine is a subsidiary of Bindura Nickel Corporation (BNC) owned by Kuvimba Mining House. Kuvimba is now 100% owned by government and has been put under Mutapa Investment Fund, formerly the Sovereign Wealth Fund. Prior to this, Kuvimba was once 65% by controlled government, with 35% reportedly under an opaque management consortium. Local tycoon Kudakwashe Tagwirei was reportedly the real owner of the 35% stake, but he has denied involvement. Government recently paid US$1.6 billion - a staggering figure - for the murky 35% through Treasury Bills, raising eyebrows as to who the actual ultimate beneficial owner is. The market is still anxious on that as people dig for the truth. There has also been no proper account and transparency on how formerly state-owned Zimbabwe Mining Development Company (ZMDC) assets ended up in entities associated with Tagwirei, that is Sotic and later Kuvimba, something the businessman, who is also one of President Emmerson Mnangagwa's advisers, has always denied. The way dodgy deals involving those assets have been done seems like a merry-go-round of self-enrichment by a political and business cabal that has captured the state. Ziyambi appointed Remba in terms of section 4 of the Reconstruction of State-Indebted Insolvent Companies Act [Chapter 24:27] (No. 27 of 2004). The law was used in 2004 to seize businessman Mutumwa Mawere's mining company, SMM, after his fallout with Zanu PF bigwigs. Bindura Nickel Corporation has three mining locations in Zimbabwe, including Trojan Mine (Bindura), Shangani Mine (Shangani) and the Hunters Road Project (between Gweru and Kwekwe). The company previously operated Epoch Mine (Filabusi) and Madziwa Mine (Madziwa), both of which are now closed. It also owns, through Trojan Mine, smelter and refinery complexes in Bindura. Both complexes are currently under care and maintenance. ZIMBABWEAN grain millers are planning to import 1.4 million tonnes of maize into the country by July next year following a drought that has battered output. The southern African nation will be tapping supplies from Brazil, Mexico, Russia, Argentina and the United States, Zimbabwe Grain Millers' Association Chairman Tafadzwa Musarara said on Thursday in Harare. The El Niño weather phenomenon has triggered a dry spell in southern Africa that has slashed South Africa’s corn crop by at least 20% and Zimbabwe’s by about 60%. Malawi, Zambia and Zimbabwe have declared states of national disaster because of the agriculture failures. Zimbabwe consumes about 2.2 million tonnes of corn annually, but this year will probably only produce 868 273 tonnes, according to government estimates. A delegation of Zimbabwean millers will be in São Paulo to meet with counterparts from the Brazil Grain Exporters' Association to negotiate and conclude supply agreements of both white and yellow corn as well as rice. They will also meet with suppliers of industrial grain equipment, he said. White maize is a staple in southern Africa used to make meals such as pap and sadza, while the yellow variety is used for animal feed. Unlike yellow corn, which is readily available internationally, white isn’t. Since last October, GMAZ has imported 427 000 tonnes of corn into the country, with current monthly inflows averaging 100 000 metric tonnes. — Bloomberg Controversy over Trojan Mine Zimbabwe millers seek maize imports from Brazil, Russia Mutsa Remba NewsHawks 1ssue 175, 3 - 9 May 2024
Page 44 Companies & Markets Zimbabwe’s illegal forex dealers use WhatsApp to find clients, evade police HARARE – The entrance to the main gate at the Budiriro shopping centre, a busy mall south of Zimbabwe’s capital Harare, used to be a hive of activity where informal forex dealers had set up makeshift “offices” on the pavement. Now the area is all but abandoned. The smartly dressed young boys and middle-aged men who would stealthily trade foreign currency with shoppers have not set foot there in weeks to avoid police raids. In Zimbabwe, which has been beset by a decades-long economic crisis characterised by hyperinflation, a 54 percent unemployment rate and highly volatile local currencies, the more stable United States dollar is the preferred medium of exchange. Everyone from state utilities to street vendors accepts payment in US dollars. Because of the popularity of the greenback, black market forex dealing is a thriving side hustle with thousands earning a living from the practice. In April, in the government’s latest attempt to stabilise the economy, Zimbabwe’s central bank launched a new currency, Zimbabwe Gold, or ZiG. Soon after, Zimbabwean police began cracking down on informal forex dealers and arresting them in their numbers. The authorities blame illegal currency dealing for distorting the exchange rate and devaluing the local currency, and want to ensure the ZiG is accepted and does not lose value rapidly like its predecessor. To date, more than 70 street forex dealers have been arrested. But instead of curbing them, it has driven them underground and towards more creative means of doing business. At a tuck shop about a kilometre from where he used to work at Budiriro shopping centre, forex dealer Darlington Murazva* has set up a makeshift office. The stocky 30-year-old scrolled through the WhatsApp messaging app on his Samsung smartphone, and pressed play on a voice note that arrived in a group chat he’s in with other foreign currency dealers and vendors. “The police are in Glen View right now. They didn’t find anyone,” the voice said. Murazva, who has been a forex trader for 11 years and mostly operates informally, used to have a strategic spot at the entrance to the mall where he would sit on a plastic stool scouting for passing shoppers. When the police raids started, he and the other traders fled. They are now positioned all over Harare – and give one another a heads-up about movements of the police. “Now, the police can’t find us. We are always two steps ahead,” he said with a wry smile. “We know where they are in real time through our fellow traders in the surrounding areas.” The biggest sources of foreign currency in Zimbabwe are diaspora remittances and exports. Zimbabwe allows its citizens to open USD accounts where they can deposit or receive the greenback. They can also withdraw hard USD notes from banks. Companies can also source forex from the official auction market. Away from official channels, though, people regularly buy and sell USD to informal forex dealers depending on their needs. Because street dealers offer better and more market-driven rates of exchange, Zimbabweans prefer to deal with them instead of banks or official currency exchanges. Black market dealing is illegal, so the exact number of traders is not known. But it is thought there are a couple of thousand. The WhatsApp group Murazva belongs to has 247 members. Though usually in competition with one another, the dealers have set aside their rivalries to join forces and help one another avert arrest. Recent reports that went viral on social media saying 60 arrested dealers were sentenced to three years in jail have also created jitters in an already unnerved community. Moving online has not only been a safety measure for dealers but also a new way for some to continue conducting business. Steven Tambudze*, 40, who has been a forex dealer for almost half of his life, said WhatsApp has been a real boon in recent weeks. “Although this has been a very difficult time for other dealers, business has been very good for me,” Tambudze told Al Jazeera at the High Glen cross-border bus terminus, where he waited for a client. “Most of my deals come through WhatsApp now,” he said. Some of his former clients who he lost track of because they started trading with other dealers in the city have also returned, he said, explaining that with the raids people prefer to deal with someone they know and trust, and now reach out to him directly by phone and messaging app. Tambudze said he never meets random people and only deals with clients he personally knows. Murazva also uses WhatsApp to continue working. However, he is cautious. He never mentions the word ZiG on an actual phone call and never talks about exchange rates or anything that may identify him as a dealer, out of fear the authorities may be listening in. When he gets a call, he tells potential clients to chat with him over WhatsApp, which he said he trusts a bit more because of its end-to-end encryption. “One must never give safety a day off,” he told Al Jazeera. On the streets, forex traders all have their own ways of approaching customers. At the mall, Murazva would sit on his plastic chair at the entrance until he spotted a potential customer. In a hushed tone, he would then approach the passerby with a whispered deal to change dollars into local currency or vice versa. Over WhatsApp, clients now contact a dealer they know when they are looking for currency. The dealer then posts a message on the WhatsApp group letting the other traders know they would like to make a currency exchange. Other interested traders get in touch via inbox with an offer and a rate is agreed. From there, a payment in local currency is made electronically through a bank account and a physical meeting is arranged for the collection of the hard USD cash. The dealers in the group are a community who know each other and therefore have a level of trust. Other traders also use WhatsApp’s broadcast feature, which allows users to send a single message to multiple recipients simultaneously with one click. The recipients of a broadcast cannot see each other, ensuring privacy. This comes in handy for forex dealers who are trying to lie low and still earn a bit of income. “The broadcasts are also helping a lot and are far more convenient because one can reach a number of dealers,” Tambudze said. Murazva is grateful to messaging apps for helping dealers eke out a living amid the turmoil. “If it wasn’t for WhatsApp groups, we would have starved. We are keeping our heads above the water,” he said. The veteran dealer feels the police onslaught is a passing phase. He said this was because when the central bank introduced the bond notes, a currency that forms part of the Zimbabwe dollar, in 2016, the police launched a similar blitz. “The police operation is not new. We are used to them. Whenever they introduce a currency, we get arrested,” Murazva said. “But they will stop soon.” The new ZiG currency is already devaluing against the US dollar. To date, the currency has depreciated by as much as 25 percent on the black market and is trading at Zig20:USD1. Officially, the rate is about Zig13.5:USD1. Harare-based economic analyst Rashwheat Mukundu said the fast devaluation speaks to a lack of confidence in the local currency. However, authorities blame the decline of the ZiG and the collapse of its predecessor on the black market foreign currency dealers. They say dealers pay much more than what is offered at the official rate, driving the currency down as it depreciates against the US dollar. Informal dealers reject the idea that they are to blame. Meanwhile, economists and critics accuse the central bank of flooding the market with local currency which is then used to buy US dollars from street forex dealers. Local government contractors, who are usually paid in local currency – which amounts to billions in bank notes – then trade these notes for US dollars on the black market, causing an oversupply, which fuels inflation. “The real challenge in this economy is lack of confidence in the local currency because people have lost their savings and capital to hyperinflation in the past,” said Gift Mugano, a professor of economics at a university in KwaZulu-Natal in South Africa. “The question is: how do we restore confidence? You don’t arrest people to foster confidence. The moment you force people, you lose the plot,” he said. For Mugano, the clampdown is a sign that the authorities have simply “run out of ideas” on how to deal with the currency problem. “The black market is still thriving. Government is refusing its own money to pay for passports, fuel and other services,” he said. Mukundu, meanwhile, said the police clampdown was an exercise in futility. “It’s a case of stitching up one’s behind to stop a diarrhoea. The Zimbabwean government and the central bank are not addressing the fundamental issue of lack of confidence in the Zimbabwean currency,” he told Al Jazeera. For Mukundu, past experiences with inflation and ongoing economic crises make people want to hold on to US dollars and other stronger currencies over their own. “The people of Zimbabwe now see value and wisdom in storing economic value in foreign currencies,” he said. “It’s a culture and economic system that has been built over the years that supports storing value in such currencies.” — Al Jazeera. *Names changed to protect privacy. NewsHawks Issue 175, 3 - 9 May 2024
This is an as-told-to essay based on a transcribed conversation with Vincent Peters, founder of Inheritance AI and former SpaceX employee discussing his career path and experience at SpaceX. It has been edited for length and clarity. I graduated from West Point in 2005 at 23. Shortly before graduating, I was diagnosed with allergy-induced asthma. So I graduated on medical leave, couldn't be deployed, and continued on medical leave for another six months before being discharged. Because I didn't have any internships or corporate experience, it took me a while to transition into the workforce. Once I did, I went on to work in many different industries. The beginning of my corporate career I got a contractor job with the Federal Aviation Administration through a friend and gained experience doing business administration, research, and development. From there, I got work more aligned with my degree in systems engineering and technology as a security project manager at Freddie Mac. I stayed in banking but moved into working on compliance and risk management. I then left the banking industry to partner with one of my best friends from West Point, who owned a tech company, 2 Twelve Solutions. We worked in "authority to operate," certifying what technology can be used for US government military missions. We got the opportunity to pitch our services to SpaceX. I was introduced to people on the SpaceX Mission team, and ultimately, they asked me to interview with them for a job at SpaceX. After a long process with multiple conversations, they offered me a job doing information compliance and assurance. At first, I said no, but after their counteroffer, I had to tell my friend, "I love you, but I'm going to go work for SpaceX." I started in November 2018. My primary role was showing government clients that SpaceX was compliant. My first project was the Commercial Crew program where astronauts needed to be returned to the International Space Station by US space capabilities. SpaceX was one of the companies awarded that contract. I was brought on to engage with NASA and show SpaceX was compliant. From there, I supported some of the Department of Defence customers and the beginning of the Artemis program to return to the moon. What it's like working at SpaceX SpaceX is the most efficient company I've ever worked for. Instead of having a manager and a list of tasks, I was asked to sit in on meetings and add value to projects aligned with my interests or expertise. I thought I would get fired every day during the first six months. There was no one there to tell you what to do. In the military, there was a change of command. At SpaceX, you ask yourself, "How do we do this thing? How do we do it safely? How do we do it so that it's a good value for our customers?" Then you figure it out. There were no boundaries in my role as long as I was adding value to whatever I was working on. For example, someone would ask if I was interested in flight software, and if I were, I'd be invited to attend those meetings. The directive was if I was in a meeting and it was adding value to what I did daily, stay, or if I was adding value based on my expertise, stay — but if neither of those things were happening, you should get up and respectfully walk out. In one instance, a government customer came in with a 50-slide deck. Six slides into the presentation, 75% of the room had walked out. I had to tell him that if he didn't get to the point, I'd be the only person left in the room — and only because I had to walk him out. He skipped ahead to his last five slides. That kind of environment makes you much more efficient. Also, everyone is accessible. You're all in cubicles, including Elon and the COO, Gwynne Shotwell. You can look up, be seen, and say to people, "Hey, I need this." It's very open and makes collaborating and getting to know people easy. The only fixed offices are for people who often need to have confidential conversations — like the head of human resources and the CFO. Working on Starlink I quickly found that once you're in the circle of trust within Elon Musk's companies, you get a job more easily at another company in the portfolio. For example, someone who started around the same time as me at SpaceX is running IT at X now — the culture is just to do whatever is required. That mentality is how I started working on Starlink. The Starlink team had several questions from the Canadian communications regulators. They wanted to know how SpaceX was handling Starlink customer data and the configuration of some Starlink ground systems that were built and maintained by SpaceX. With my background in government work and compliance, it felt like a natural fit for me to step in. In 2020, I asked to help and was allowed to work on their projects in addition to my work at SpaceX. The work is rigorous, but people are very accepting SpaceX was probably the most accepting work culture I've ever participated in. There also wasn't a lot of value placed on where people went to school. Some of the most intelligent people I worked with there were high school graduates. Regardless of your background or credentials, it's a place where you have to be able to hold yourself accountable. It's assumed that you should know what you should be doing. If you're looking for a boss to hold your hand and tell you what you need to do and how to do it, you will be disappointed working with Elon. But if you're looking for a boss who trusts in your decision-making, you'll thrive. I ultimately left in February 2022 because I felt I was no longer learning. While SpaceX was one of my best work experiences, there seemed to be a high turnover rate where people would leave between their first and second years. After my third year, I was one of the most senior in my group, and there weren't many people to learn from. My time at SpaceX has helped me run my own company From there, I started my new project, Inheritance Art, in early 2022. We're working on various projects — from crypto to large language model services and even creating our own AI models. I'm enjoying the challenge, but I still look back fondly on my time at SpaceX. Working at SpaceX taught me how to hire and manage people efficiently — I was never a fan of middle management, and my experience there showed me how to run an organization without it. Space X is a flat organization, and it works well that way. —Business Insider. Companies & Markets Page 45 I worked at SpaceX. It was the most ruthlessly efficient company I've ever worked for CHANDAN KHANNA/Getty Images NewsHawks 1ssue 175, 3 - 9 May 2024
AFTER the recent introduction of the new Zimbabwe Gold (ZiG) currency, there has been a fierce debate on whether this local unit will survive where the old Zimbabwe dollar and its several other variations failed. The government says ZiG is backed by gold and foreign exchange reserves, so it is strong and will survive. ZiG, introduced on 5 April, is backed by 2.5 tonnes of gold and about US$100 million in foreign currency reserves, the authorities say. Last week, the central bank introduced ZiG banknotes and coins to members of the public for the first time. The authorities have put a series of measures to promote use of ZiG, buttress its position against base currencies and defend it against attacks in the market. Reserve Bank of Zimbabwe governor John Mushayavanhu has expressed optimism that ZiG is strong and will hold its own. “We want to create a currency that is stable, which is not volatile and can be saved. In the past people would rush to exchange their bond notes once they get into their accounts," Mushayavanhu said. “You will see the vendors, informal traders now coming to bank the extra money that they make as profit and start building up for something they want to invest in." However, critics like Professor Gift Mugano argue ZiG will not survive the harsh economic environment. "One can be forgiven for thinking that the RBZ is assuming that by backing the ZiG with gold and cutting the zeros, the ZiG is in the same league with gold and USD, hence the decision to bring down annual interest rates to 20%. The reality is that ZiG is as good as ZWL and the economic environment has remained the same, that is," Mugano said. "(a) Volatile exchange rate – the black-market exchange rate has continued to run away – we hear that it is now trading at ZiG20 (the equivalent of ZWL$50 000) against USD; (b) Inflation remains high; (c) Our disposable incomes and aggregate demand have not increased because the zeros were cut; (d) Dwindling foreign currency supply caused by the double tragedy of declining export receipts (as a result of falling commodity prices) and draining of foreign currency as a result of food imports caused by drought. "It is my humble view that the RBZ’s decision to lower interest rates is a serious policy misfiring that comes with massive consequences: (a) Unproductive lending – any rational bank would institute measures aimed at defending its asset base from shrinking. Investment in housing development and properties stands out as the most attractive investment option. In circumstances like these, there are high chances that fewer resources will be channelled towards the productive sector. This will militate against the survival of the ZiG. Strong currencies are backed up by production – resulting in fewer imports and an increase in exports; (b) Speculative borrowing – without contradicting with (a), for 'obvious reasons' the banks will still lend the productive albeit it will be reasonably lower than in previous years. However, anyone who pounces his/her hand on this cheap money will run to the parallel market and buy forex and service the loan by capitalising on the exchange rate spiral whilst making massive profits in the process." But what actually make a currency strong? Economists say a currency is typically characterised by: 1. Economic stability: A country with a stable and growing economy, low inflation, and a healthy trade balance; 2. High demand: A currency in high demand due to its usefulness in international trade, tourism, or investment; 3. Political stability: A country with a stable and reliable political environment, reducing the risk of currency devaluation; 4. Low inflation: A country with low and stable inflation rates, maintaining the currency's purchasing power. 5. Strong institutions: A country with robust and trustworthy financial institutions, central banks, and regulatory bodies. 6. High interest rates: Attractive interest rates for foreign investors, making the currency more desirable; 7. Strong foreign exchange reserves: A country with ample foreign currency reserves to support its currency. 8. Good governance: A country with transparent, accountable, and effective governance, enhancing investor confidence; 9. Diversified economy: A country with a diversified economy, reducing dependence on a single industry or export; and 10. Global confidence: A currency widely accepted and trusted globally, serving as a reserve currency or pegged to a strong currency. These factors contribute to a currency's strength and stability, making it more attractive to investors, traders, and travellers. Page 46 Companies & Markets The Banker Will Zimbabwe Gold survive? NewsHawks Issue 175, 3 - 9 May 2024
NewsHawks Page 47 1ssue 175, 3 - 9 May 2024 JUSTICE ALFRED MAVEDZENGE Introduction BEDEVILLED by a persistent socio-economic crisis, and with no immediate solution in sight, as Zimbabweans we are justified to envy others who appear to have succeeded in turning around their fortunes. A few years back, we were envious of the Zambians when they succeeded to dislodge the dictatorship of president Edgar Lungu by electing the then opposition leader Hakainde Hichilema in 2021. In fact, we have become envious of any country which goes through leadership change regardless of whether the change is progressive or retrogressive. For instance, last year, we celebrated a military coup in Gabon, when president Ali Bongo was toppled by a military junta, even though we know very well that military coups rarely result in the resolution of a governance crisis. At the moment, our attention is on Senegal, where citizens have succeeded in stopping their president from seeking a third term. In addition, they succeeded to elect a youthful opposition candidate (Bassirou Diomaye Diakhar Faye) as their president. These are aspirations shared by many Zimbabweans, given the suspicion that President Emmerson Mnangagwa may be tempted to seek a third term and/or postpone the next (2028) elections to 2030. It is a positive thing that, as a people, we are interested in how others are achieving change in their countries. Culturally, that is our nature. I am reminded of one of our indigenous proverbs which says “kugara nhaka huona dzavamwe” which means: in order to achieve our aspirations we must learn from others. However, the biggest question is: Are we learning the right lessons? What are some of the lessons which can be drawn from recent events in Senegal? Is there any basis to learn anything from Senegal? 2. Is there basis for Zimbabweans to try and learn from Senegal? (a) Repressive political conditions Macky Sall became the president of Senegal after winning the 2012 elections. He became the 4th president of the republic since Senegal’s political independence from France in 1960. Unlike Zimbabwe, Senegal has for a long time been perceived as a fairly successful democracy. However, in the past five years, Senegal backslid into an autocracy with some significant similarities to Zimbabwe. A recent survey by Afrobarometer shows that more than 50% of the Senegalese respondents felt that the country had been sliding into autocracy in the last five years. These sentiments were largely because of increased persecution of opposition leaders by the Senegalese state, clamping down of independent media (including the closure of independent broadcasting stations), internet shutdowns and crackdown against peaceful protests. According to Amnesty International, about 60 people were killed by security agents as part of the state’s crackdown against peaceful protests between March 2021 and February 2024. Under former president Sall’s government, the then popular opposition leader Ousmane Sonko was constantly subjected to arbitrary arrests, detention and was restricted from engaging in legitimate political activities. In 2023, Sonko’s political party, PASTEF, was dissolved by the state on allegations of having incited an insurrection. Sonko was indicted on various criminal charges, including undermining state security, disseminating false news and theft. He was subsequently disqualified from contesting in any future elections. Similarly in Zimbabwe, opposition leaders and activists face such persecution as has been witnessed in Senegal. Although the Zimbabwean government has not legally banned the main opposition party (as was done in Senegal), the state has capitalised on the weaknesses of the main opposition party (Citizens' Coalition for Change) to decimate it, forcing its leader Nelson Chamisa to quit. (b) Attempts by the incumbent to seek a third term Former president Sall of Senegal attempted to run for a third term, notwithstanding restrictions imposed by the Senegalese constitution. In similar fashion to what is happening in Zimbabwe where President Emmerson Mnangagwa’s supporters are urging him to seek a third term in violation of the Zimbabwean constitution, former Sall’s supporters publicly urged him to seek a third term. He never gave Senegalese citizens a clear, unequivocal response when he was initially asked whether or not he was going to seek a third term. Similarly, until recently when he promised that his government will not change the constitution, President Mnangagwa and Zanu PF have been coy about the third-term bid. 3. Recent events in Senegal In 2023, former president Sall was forced to abandon his third term aspirations when he made a public announcement in which he declared that he would not contest in the 2024 elections. Earlier in 2012, Senegalese citizens had successfully stopped another of their presidents, Abdoulaye Wade, from seeking a third term, when they united and overwhelmingly voted for Sall, the then-opposition candidate. After abandoning his third term bid, Sall attempted to prolong his tenure by postponing elections. Presumably, this was part of his attempt to buy more time in order to The Zim opposition leadership question: Lessons from Senegal Former CCC leader Nelson Chamisa News Analysis
identify a preferred successor whom he could support in the elections. In Senegal, candidates for presidential elections are approved by the Constitutional Council. President Macky Sall’s preferred candidate was not approved by the Constitutional Council on account of failure to meet one of the eligibility requirements. Using its majority in Parliament, Sall’s party attempted to postpone the elections. On 5 February 2024, Parliament passed a Bill postponing the presidential election from February 2024 (as originally scheduled) to December 2024. This sparked widespread protests which resulted in several people being killed by state security agents. The postponement of the elections was challenged through a petition filed before the Constitutional Council. The council ruled in favour of the petition, holding that the postponement was unconstitutional. It ordered the elections to be held as soon as possible, without specifying a date. A follow-up application was filed before the Constitutional Council requesting the council to clarify the date for elections, and the body ruled that the elections must be held prior to the end of March 2024 as per the constitutional deadline. The election was subsequently held on 25 March 2024 in compliance with the ruling of the Constitutional Council and the constitution. Bassirou Diomaye Diakhar Faye won the elections by 54.28%, defeating the candidate of the then ruling coalition, Amadou Ba, who garnered 35.79% of the total votes. Faye has since taken over the reigns from Sall, as the president of the republic. President Faye has appointed Sonko as his Prime Minister. As mentioned above, prior to the March election Sonko was the most popular opposition leader who, however, had been disqualified from contesting in the elections, and he chose to endorse his colleague Faye. The success of the Senegalese people in stopping former president Sall from seeking a third term, and their success in electing a youthful opposition leader as the president are attributable to the leadership capacity of the then opposition. The quality of the leadership they had in the opposition made a huge difference. 4. Collective and self-less leadership For quite some time, Sonko was the face of the Senegalese opposition movement. However, Sonko did not concentrate power around himself as we have seen being done by Zimbabwean opposition leaders. Instead, Sonko collaborated with several others to build a broad-based movement in pursuit of a common political agenda. When the state targeted Sonko and his party with harassment, the opposition movement survived the onslaught. For example, when Sonko and his party were disqualified from elections, the opposition movement remained intact and strong to the extent that it still managed to stop Sall from seeking a third term and it succeeded in fielding a different candidate (Faye) and still win the elections. Upon being disqualified from contesting in the elections, Sonko selflessly “passed the ball” to Faye by way of endorsing Faye’s candidature in the March 2024 elections. The endorsement consolidated (rather than split) the opposition vote, and this contributed immensely towards Faye’s victory over the ruling party’s candidate. In her published work “Democracy in Senegal: A Case Study of Democratic Success in Africa”, Rachael Lambert attributes the success of democracy in Senegal to the “ability of different social leaders to find common ground”. This view is widely held by other scholars including John Esposito, Tamara Sonn and John Voll who wrote “Senegal: Democracy and the Post-colonial State” — a book chapter which examines the historical evolution of politics in Senegal. The culture of the Senegalese opposition to find common ground at critical moments was recently exemplified by Sonko and Faye in the recent elections. Can this be achieved in Zimbabwe under the current opposition leadership crop? Unlike Senegal’s Sonko who could work with Faye, Nelson Chamisa has shown that he is highly insecure with the idea of working side by side with other competent leaders. Unlike Sonko and Faye who were open to criticism, Chamisa perceives those who are critical of his leadership style as jealous of him or Zanu PF enablers. Sadly, it is a view also shared by several Zimbabweans in the opposition. As a result, Chamisa has run his parties as if they are religious cults. The results have been quite costly not only to him but also to Zimbabwe’s struggle for a democratic breakthrough. For instance, even though the Senegalese government banned the then main opposition party, PASTEF, led by Sonko, they did not succeed to decimate the opposition. In Zimbabwe, the dismantling of Chamisa’s Citizens' Coalition for Change has automatically led to the death of the opposition and the ruling Zanu PF is now enjoying a free rein. In this sense, the difference between Senegal and Zimbabwe is that in Zimbabwe Chamisa became the opposition while in Senegal Sonko built an opposition movement. 5. Clear ideological grounding Faye and Sonko mobilised the Senegalese people around a clear ideological standpoint. They projected themselves as de-colonial leaders who are committed to ending the French neo-colonial exploitation of Senegal. This allowed them to establish alliances with various interest groups within Senegal and in the diaspora. The Zimbabwean opposition leadership space has persistently been occupied by personalities who are demagogues but with unclear ideological inclination, and as a result they have failed to establish the necessary alliances with critical stakeholders within and outside of Zimbabwe. For instance, even though he had a trade union background, the late opposition leader Morgan Tsvangirai was not ideologically articulate and as a result he was very much untrusted amongst African leaders and some of the critical stakeholders within the Zimbabwean body politic. Consequently, Tsvangirai succeeded to galvanise support within the opposition circles, but was largely unsuccessful in his efforts to establish alliances with those who traditionally support Zanu PF. However, in 2008 he succeeded in defeating president Robert Mugabe, but he could not capture state power due to lack of support from critical domestic and regional leaders, partly because of lack of trust which is attributable to his ideological opaqueness. The current opposition leader, Chamisa, appears to have suffered the same fate. He confuses religion with ideology. He forgets that, even though God may be in support of his candidature, God is not religious. God still expects his chosen leaders to use their wisdom to articulate a clear vision, and craft a path which those who support them can follow. 6. Courageous opposition leadership The Senegalese opposition’s success in stopping former president Sall’s third-term bid and winning the March 2024 presidential election is attributed to the brave and courageous personality of its leadership. As the leader of the opposition, Sonko always led from the front and demonstrated fearlessness. He led peaceful protests in the streets even though he knew he would be arrested and detained. His presence at the protests, alongside other leaders who include current President Faye inspired the Senegalese people to come out and express their disapproval of president Sall’s third-term bid, as well as the attempts to postpone elections. In fact, at the time the presidential election was held in March 2024, Faye had just been released from prison after spending 11 months in jail. He had been arrested on charges of threatening state security after he protested against state capture of the judiciary. In Zimbabwe, the main opposition leader, Chamisa, does not lead from the front. He leads from social media handles. When he took over the leadership of the MDC-Alliance in 2018, Chamisa vowed that he would lead peaceful protests from the front. Since then, he has only participated in one march where he became famous for doing push-ups as a symbolic demonstration of courage, but nothing further materialised. Some opposition leaders, who include Job Sikhala, Jacob Ngarivhume, Makomborero Haruzivishe, Joana Mamombe, Cecilia Chimbiri, Netsai Marova, Obey Sithole, engaged in peaceful protests and were detained and ended up in jail for very long periods of time. Sikhala, who was deputy national chairperson in Chamisa’s party, spent 595 days in prison, while youth leader Haruzivishe was jailed for a year . Unlike Faye or Sonko in Senegal, Chamisa did not organise or lead any protest to demand the freedom of his fellow comrades. In fact, he discouraged and distanced himself from groups of opposition supporters who attempted to organise peaceful protests as means of putting pressure on the state to release these leaders. Without leaders who are capable of leading from the front, it is impossible for Zimbabweans to achieve what the Senegalese achieved under the leadership of Sonko and Faye. Conclusion The approach to opposition politics in Zimbabwe needs a major overhaul. There is a need to transition from building individual-oriented groupings to establishing issue-based movements. Zimbabweans need to look out for and support leaders who have clear ideological grounding capable of uniting people across the traditional political, social and religious divides. There is a need for opposition leaders who live and practise democratic values of consultation and accountability. Without these values, it is impossible to build a movement capable of spearheading a democratic breakthrough. *About the writer: Dr Justice Alfred Mavedzenge is a constitutional lawyer and adjunct senior lecturer of public law at the University of Cape Town in South Africa. He writes in his personal capacity. Page 48 News Analysis Bassirou Diomaye Diakhar Faye, President of the Republic of Senegal NewsHawks Issue 175, 3 - 9 May 2024
JODIE GINSBERG With half the world’s population casting ballots in elections this year, independent reporting on the candidates and the issues is essential. Yet from Washington and Westminster to Buenos Aires and Budapest, efforts to intimidate, curtail, and constrain the free Press are becoming more frequent and brazen. IN just the first week of this year, at least 18 journalists were assaulted or harassed while covering alleged election irregularities and violence in Bangladesh. Then, in early February, journalists in Pakistan were hindered from covering elections by a wave of violence, widespread internet blackouts, and mobile-network suspensions. In March, journalists in Turkey had been shot at and banned from observing local elections, despite their legal right to do so. It was a worrying, but not especially surprising, start to this “super election year.” With half the world’s population casting ballots, independent reporting on the candidates and the issues is essential. Yet attacks on the media are rising, even in more mature democracies. In the United States, Donald Trump’s return as a candidate has brought back fresh memories of 6 January 2021, when his supporters stormed the Capitol, lunged at journalists and destroyed their cameras, and scribbled “Murder the media” on the doors. Such examples are illustrative of a broader problem. From the US to India, hard-won freedoms and rights are being eroded. In 2023, the V-Dem Institute, which monitors democracy around the world, published a report warning that the progress made toward democratisation since 1989 is being reversed. The authors identify increased attacks on journalists as a leading indicator of autocratisation: “Aspects of freedom of expression and the media are the ones ‘wannabe dictators’ attack the most and often first.” There is no doubt that threats to journalists are on the rise, and not just in countries where independent media is always a target. Over the past three years, the Committee to Protect Journalists has documented near-record numbers of journalists (and even top media executives) behind bars, including in supposed democracies such as Guatemala, and in places that once enjoyed relatively high levels of personal and political freedom, such as Hong Kong. Journalist killings are at their highest levels in almost a decade. In 2022, the American investigative journalist Jeff German was stabbed outside his home in Las Vegas, and a politician whom German had reported on is now awaiting trial for the murder. From Washington and Westminster to Buenos Aires and Budapest, journalists who cover politics receive death threats daily and are increasingly vulnerable to being targeted at political rallies and protests. According to a 2021 Unesco report, three-quarters of women journalists surveyed had experienced online hate, harassment, or threats of violence. Among the most likely triggers for such abuse was reporting on “politics and elections.” Women and those from marginalised communities bear the brunt of this anti-media harassment online, and the vitriol frequently spills over into real-world violence. The consequences of this disturbing trend are not limited to the media. Attacks on journalists harm us all. Journalists perform the public’s due diligence on candidates, probing their professional records, the veracity of their claims, and the credibility of their promises. By reporting on policy achievements and failures, they help corroborate — or contradict — a candidate’s official narrative, exposing lies and smear campaigns for what they are. They also provide practical information about voting processes, and monitor for electoral irregularities and campaign-finance violations. Without such information, there can be no democracy, but rather what V-Dem calls “electoral autocracy,” where elections are empty rituals. Independent reporting is also crucial for holding accountable those already in power. It was old-fashioned, pound-the-pavement reporting that exposed New York Republican congressman George Santos’s falsified biography, ultimately leading to his ejection from Congress (not to mention criminal charges). It was the news media that aired recordings of Peru’s secret-police chief, Vladimiro Montesinos Torres, bribing judges and politicians — revelations that would lead to the downfall of President Alberto Fujimori. And it was independent reporting on “Partygate” that ultimately forced Boris Johnson out as prime minister of the United Kingdom. Independent, professional journalism – both local and national – is even more important now that misinformation and disinformation are flooding into the public domain. A recent report by the Associated Press finds that artificial intelligence is “supercharging” the spread of election lies through deepfake images and audio that is impossible to distinguish from authentic recordings. Similarly, a study released in March by the Africa Center for Strategic Studies found that disinformation had increased fourfold (compared to 2022) ahead of recent elections across the continent. Independent news media are essential to counter this technology-driven trend. Consider Taiwan’s election earlier this year. Although lies flooded online channels throughout the campaign, studies suggest that much of the disinformation was defused by the combined efforts of local media, election authorities, and fact checkers, all of whom deliberately focused on building trust and furnishing voters with what they needed to make an informed, meaningful choice. We now need to heed these lessons and watch carefully for warning signs. If this year is a litmus test for democracy around the world, a pre-indicator will be how the media are treated. We will have to remain vigilant in defending a free and independent press, and in championing a vibrant and curious local media. If we don’t, you can be certain that the erosion of freedoms will not stop with us. — Project Syndicate. *About the writer: Jodie Ginsberg is CEO of the Committee to Protect Journalists, a non-profit organisation working worldwide to ensure that journalists can report freely and safely. The Big Debate Basic liberties depend on Press freedom NewsHawks Page 49 1ssue 175, 3 - 9 May 2024
Page 50 NewsHawks Issue 175, 3 - 9 May 2024 YOLANDI ERNST/SALLY ARCHIBALD A landmark new study has found that, in the last decade, the African continent has started emitting more carbon than it stores. When the total amount of carbon that is sequestered by natural ecosystems (such as the soil and plants in grasslands, savannas and forests) exceeds the amount of total carbon emissions within a system, it’s referred to as a net sink of carbon. But, the study found, as natural ecosystems are converted for agricultural purposes, the carbon storage capacity is decreasing – while the rate of emissions is increasing. Yolandi Ernst of the University of the Witwatersrand (Wits) in South Africa led the international research team that calculated the flows of carbon dioxide, methane and nitrous oxide through Africa’s terrestrial and aquatic ecosystems. She and one of the study co-authors, Sally Archibald — also from Wits and the lead of the Future Ecosystems for Africa Programme — unpacked their findings. What did you set out to calculate, how did you do it, and why? We wanted to know both the amount of greenhouse gases being produced by the African continent and the amount being taken up. This helped us to develop a greenhouse gas budget, quantifying the net amount of outgoing and incoming greenhouse gases. In this way we’re better able to understand how the continent is contributing to global climate change (by releasing greenhouse gases) and how, through taking up greenhouse gases, it’s helping to mitigate global climate change. This study formed part of a global effort by the Regional Carbon Cycle Assessment and Processes Phase 2 (RECCAP2) project. It aims to establish improved greenhouse gas budgets for large regions covering the entire globe at the scale of continents (or large countries) and large ocean basins. We collated data from a variety of sources and created models to calculate the amount of carbon dioxide, methane and nitrous oxide (collectively called greenhouse gases) being released into the atmosphere from several different sources. Some are human sources, like agriculture and fossil fuel emissions. Other sources, like wildfires and termites, are natural. Then we calculated the amount of carbon that’s drawn down from the atmosphere and stored in what are called carbon sinks: the soils and plants in grassland, savanna and forest ecosystems. The net budget estimate was the result of adding all the sources and sinks, just like balancing a household budget, where you don’t want to be spending more than you are earning. This information is crucial for policy making. If scientists, land managers and NGOs know which activities produce the most greenhouse gases they can work with governments and policymakers to minimise this. And knowing which parts of Africa best help to store carbon means funding and policy efforts can be directed to protecting and increasing this carbon “land sink”. What are the biggest sources of carbon emissions on the African continent? It’s important to distinguish between anthropogenic and natural emissions here. Fossil fuel burning and agriculture are the biggest sources of carbon emissions; both are anthropogenic (caused by humans). Other emissions are part of the ecosystem functioning but they can also be affected by human activities. Examples include fire, methane emissions from herbivores, and inland and coastal water bodies. These all represent quite large emissions, but they’re only somewhat affected by human activities. In Africa’s case, our budget shows that when people transform natural landscapes for agricultural and other purposes, the emissions from fire decrease, but emissions from herbivores increase. There are also some important natural processes that draw carbon and greenhouse gases back into the land surface. These include the growth of vegetation and soil carbon storage, as well as weathering of rocks (which turns atmospheric CO₂ into carbonate minerals), and burial of carbon in the ocean. The previous African carbon budget (1985-2009) showed the processes drawing carbon into Africa were higher than the natural emissions and the anthropogenic emissions. The continent was a carbon sink even though it emitted some anthropogenic greenhouse gases: Africa was providing a climate service to the globe. Globally the anthropogenic emissions of CO₂ are 11.21 gigatons of carbon per year (GtC/yr), but the land takes up about 3.5 GtC/year, so it is helping to slow the growth rate. The African land sink is about 0.8 GtC, representing about 20% of the world’s total land sink. Now, although the sink capacity hasn’t decreased – Africa is still taking up just as many greenhouse gases as it did in the past – the amount of anthropogenic sources has increased so much that the net effect is to be releasing greenhouse gases. In short, the continent has become as much of a carbon source as it is a carbon sink over the study period (2010-2019). What can be done to reverse the trend you’ve identified? Finding ways for Africa to develop in a way that is carbon neutral is a big challenge. Investment in carbon-neutral energy sources and reducing reliance on fossil fuels would be a start. But this has never been done – all developed countries have grown their economies on the back of massive fossil fuel use. If African countries are to become carbon-neutral and also grow their economies, global support and funding will be required. However, fossil fuels are only part of the problem in Africa as less than half the continent’s greenhouse gases currently come from fossil fuels; land use change and agricultural expansion are the leading cause of its emissions. There are many innovative approaches to producing food in ways that emit fewer greenhouse gases – again, the challenge is to find ways to roll these out at scale. Protecting, managing and restoring the landscapes that are helping to take up the excess carbon dioxide can also help a lot. But there are challenges here, too. Making carbon storage the main goal of conservation can conflict with biodiversity and water provision. Mixed cattle-wildlife systems and novel livestock management methods show promise for reducing climate impacts and improving landscape functioning. — The Conversation. *About the writers: Yolandi Ernst is a researcher in systems ecology at the University of the Witwatersrand in South Africa. Sally Archibald is professor of ecology, University of the Witwatersrand. Africa emits as much carbon as it stores Reframing Issues