Week 39
A weekly selection from Zimbabwean newspapers
‘Zim sliding back to 2008 chaos’
Economist Gift Mugano said command exchange rate would not work and called on the Reserve Bank of Zimbabwe (RBZ) to do the right thing by allowing the ZiG to freely float. “The central bank must liberalise the exchange rate, but I understand where the central bank is coming from,” he said.
Economist Vince Museve said the ZiG was doomed.
“It is clear that the value of the ZiG has nothing to do with the price of gold. It has more to do with market value perception and confidence in the ZiG,” Museve said.
“That market is mainly informal and is not influenced by RBZ policies or pronouncements, but rather by sentiment and the general expectations whether things are getting better both economically and politically.”
Auxillia seeks to evict 5000 villagers
First Lady Auxillia Mnangagwa is trying to evict villagers from Arnold Farm in Mazowe. The same villagers had a torrid time when Grace Mugabe also sought to kick them out.
The villagers at Arnold Farm popularly known as Manzou were eventually saved by a High Court order barring Grace from evicting them.
The farm is opposite Mazowe dam, which is a tourist attraction. The Standard on Friday visited the farm where villagers shared their fears of the impending eviction. “In 2017 l was arrested and tortured after resisting a farm grab by former first lady Grace Mugabe, so I pray that what happened does not happen to me again,” said one villager who refused to be named.
Southern Africa experiences record food crisis
At least US$369 million is required to provide food and cash assistance to more than 6,5 million people across southern Africa up to March 2025, the latest report by the World Food Programme has indicated.
The flash appeal comes at a time when the Global South has been greatly ravaged by the El Niño phenomenon that has left more than 27 million people food insecure in at least seven southern Africa countries.
WFP recently indicated that it was facing challenges in accessing resources and funds to provide food relief, with an estimated US$150 million required to feed 1,5 million people in Zimbabwe alone.
Sadc just a club of fraternal brothers
Political analyst Ruben Mbofana says the Sadc bloc has largely deviated from its founding principle to promote democracy, with regional leaders jetting into Zimbabwe for a summit amid an outcry over a heavy crackdown on opposition and civil society activists in the host country.
The Zanu PF government has been pulling out all the stops to suppress potential protests, amid a human rights situation which worsened ahead of the 44th Ordinary Sadc Summit of Heads of State and Government hosted by Harare.
“It is just a gentleman’s club where they meet, they talk, all this language about economic development, uplifting the lives of the poor, of the people, in the light of this El Niño drought. They will never tackle the issues of human rights and democracy in their member states.”
ZiG continues to depreciate — currency problems increasing the cost of doing business
Zibabwe has lost more than $3 billion in potential revenue due to exchange rate distortions in three years, in a major indication of the huge costs Harare is paying for having an unstable currency, World Bank research has shown.
The Southern African country this year made a sixth attempt to re-establish its own currency after it was forced into dollarisation 15 years ago.
Six months later, the new currency is on a free fall and is already trading at $1 to ZiG30 on the more popular parallel foreign currency market after the authorities fixed the rate at $1 to ZiG13.5 when it was introduced.
People are holding onto their hard currency and dumping the ZiG. The latter is not convertible and the interbank market is tiny and cannot meet our needs for currency to import what we need.”
He said Zimbabwe needs $150 million a week to import essentials, but banks were struggling to find $20 million for imports. “Our immediate crisis is that if we do not move quickly, we will see widespread company closures, food shortages and empty shelves,” Mr Cross said.
The country wants the ZiG to become the sole currency by 2030, but economists argue that it is near impossible for countries that dollarise to de-dollarise.
According to the International Monetary Fund (IMF), only four out of 85 countries surveyed during 1980 to 2001 succeeded in de-dollarisation. IMF cites Poland, Israel, Mexico and Pakistan.
Corruption now a security threat: Chiwenga
Chiwenga, however, said government had implemented various restrictive measures, such as the adoption of the United Nations Convention against Corruption in domestic law to fight graft.
He said this was aimed at creating a strong framework that promoted transparency and accountability.
“The government of Zimbabwe is committed to collaborating with the private sector to create a corruption-free ecosystem through vigorous enforcement of anti-corruption laws, fostering strong partnerships, enhancing public awareness and providing advanced protection for whistleblowers,” he said.
There is space for Starlink station in Byo: Coltart
Bulawayo mayor David Coltart has said they are ready to avail land to American internet company, Starlink, to construct a ground station.
Coltart posted on his X (formerly Twitter) handle, which he tagged the Starlink owner Elon Musk, revealing that Bulawayo, located in the southern part of the country, is geographically suitable for such a station.
In an interview, Coltart said his post was inspired by the ground station that was established by the American company in Nigeria, adding that a similar station in the Sadc region would improve bandwidth and internet connectivity.
Coup Alert, Mnangagwa Abandons UN Summit
The president is under growing pressure from a faction aligned with his deputy, Vice President Constantino Chiwenga, which is pushing for him to step down in 2028—a decision likely to be confirmed at the party’s October conference.
Mnangagwa, however, is rallying his supporters to block Chiwenga and extend his rule beyond the 2028 constitutional mandate.
His fear of travelling comes after his escaped death last Sunday when his military helicopter crashed in Masvingo.
His distrust also deepened after an unsettling incident Thursday involving a controversial birthday advert for Mnangagwa published by the Financial Gazette.
The advert mistakenly included “Rest in “Peace,” an editorial blunder that has raised suspicions of foul play within government ranks.
Currency crisis piles more misery on fragile economy
“I am seeing a total collapse of ZWG because if the rate is not moving and the parallel market has moved, it has failed …,” he said. “Companies are virtually now demanding US dollars and rejecting ZWG. In fact, you also have seen the government paying farmers 100% US dollars when it comes to wheat purchases by the Grain Marketing Board.
“Are you expecting the Government of Zimbabwe to pay 100% for their own commodity, wheat, in US dollars? Is it not a clear message that the ZWG has failed? Farmers are also refusing it.”
Zim ranks top on misgovernance
Zimbabwe continues to hog the limelight for the wrong reasons after three research think-tanks ranked the country as the worst in terms of governance, corruption and human rights violations.
The country received Grade “E” based on its performance across key governance metrics, including corruption, rule of law, Press freedom and political rights, according to a recent report by World Economics, a London-based research organisation.
According to Africa’s Rand Merchant Bank 2024 report on investment destinations, Zimbabwe ranked last out of 31 countries, making it the worst place to invest.
Investors confident of Zim’s potential (The Herald, state owned)
Zimbabwe is poised to emerge as one of the most important economies in Africa over the next five to 10 years, driven by continuous economic reforms, Indian business community in South Africa representative, Mr Praveer Tripathi, has said.
After engaging with the Zimbabwe delegation led by Vice President Kembo Mohadi on Thursday, Mr Tripathi said the energetic input of younger ministers, alongside the invaluable expertise of seasoned leaders, are critical ingredients for economic growth.
Mnangagwa skips UN summit amid Zanu PF tensions and safety fears
President Emmerson Mnangagwa cancelled his trip to New York this week for the annual United Nations General Assembly, his spokesman said because of a “dense programme in the last quarter of 2024.”
The unprecedented development, the first time Mnangagwa will not address the UN Assembly since taking power in 2017, comes amid growing tensions in his Zanu PF party over extending his second and final term, and safety concerns after a string of incidents including Sunday’s accident involving his helicopter in Masvingo.
Mnangagwa’s cancellation of the New York trip must have been “abrupt,” a source said, because “a large advance party of over 30 people is already in New York, including state media journalists.”
