Week 44

A weekly selection from Zimbabwean newspapers

Timely boost for Mater Dei Hospital

In a significant step towards enhancing healthcare services in the region, Old Mutual Zimbabwe has made a timely donation of US$12 758 to Mater Dei Hospital in Bulawayo.  

The generous contribution is earmarked for the furnishing of a new day centre theatre, a crucial component in the hospital’s ongoing mission to become a comprehensive medical facility. 

Old Mutual southern region business development and stakeholder manager, Mrs Gladys Mugalo, said they made a donation to the hospital because health care is part of the pillars that the organisation is concerned about.  

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‘Invest in education to eradicate poverty’

Communities must invest in the education of their children to develop an empowered society that is capable of eradicating poverty and creating a legacy for future generations, Deputy Minister of Defence and Umzingwane legislator, Brigadier-General (Retired) Levi Mayihlome has said. 

Speaking during the recent commissioning of a bus at Mzingwane High School, Brig-Gen (Rtd) Mayihlome, who is an alumni at the school emphasised the importance of investing in education as a strong force for developmental transformation. 

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What U.S. Sanctions Really Do — and Don’t Do – U.S. Embassy in Zimbabwe

In March this year, the United States reaffirmed its partnership with the people of Zimbabwe by ending the Zimbabwe Sanctions Program while remaining committed to addressing human rights abuses and corruption in Zimbabwe through the Global Magnitsky (GloMag) sanctions program. These updated U.S. sanctions on a handful of Zimbabweans have been a topic of intense debate, often clouded by misinformation. The Zimbabwean government has portrayed these sanctions as the root cause of the nation’s economic woes, but nothing could be further from the truth. 

The Government of Zimbabwe can engage in international trade, conduct standard banking transactions, and provide humanitarian assistance for its people. Instead, GloMag sanctions affect only 11 individuals and 3 companies in Zimbabwe, preventing them from using the U.S. financial and banking systems for their personal affairs and travelling to the United States.

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Mnangagwa blasts US for crippling Zimbabwe’s economy as SADC marks Anti-Sanctions Day

President Emmerson Mnangagwa, says the ordinary Zimbabweans are suffering the consequences of economic sanctions imposed on the country, despite the embargo being targeted at specific individuals. 

SADC set aside October 25 as Anti-Sanctions Day with the regional leaders clamouring for the removal of the embargo which was imposed by the United States of America at the turn of the millennium. 

After ending the sanctions program on Zimbabwe, the US tightened restrictions on a few individuals and entities through the Global Magnitsky Act which allows the US executive branch to impose visa restrictions and targeted sanctions on foreign government officials responsible for gross human rights violations and corruption. 

Those who have remained on the sanctions list include President Mnangagwa, Auxillia Mnangagwa, VP Constantino Chiwenga, Owen Ncube, Kudakwashe Tagwirei and CIO Deputy Director Walter Tapfumaneyi. 

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Rights lawyers condemn passing of “repressive PVO Bill” in Senate without a debate

Zimbabwe Lawyers for Human Rights (ZLHR) have condemned the recent passing of the controversial Private Voluntary Organisations (PVO) Amendment Bill by the Senate without any debate. On October 17 this year the Senate fast-tracked and passed the PVO Amendment Bill. 

Among other things, the Bill has provisions that legitimise excessive interference by the executive in CSO operations and criminalisation of CSO work and office bearers, including curtailing the freedom of association of CSOs. 

The Bill has now passed Parliament houses despite the flawed consultation and public hearing processes which were marred with violence. 

Its passage will allow President Emmerson Mnangagwa to sign it into law.   

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‘Declare ChiTown water crisis a state of disaster’

Chitungwiza Municipality and various stakeholders in the dormitory town have implored government to declare the water crisis situation as a state of disaster as the local authority expressed concern over possible waterborne diseases occurance. 

The town’s population is pegged at approximately half a million people, but the local authority has in the absence of its own water source has faced challenges in providing the precious liquid to its residents. 

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Vulnerable households at risk of worsening poverty: World Bank

The World Bank has warned that most vulnerable households in Zimbabwe  may fall below the poverty line due to increased food insecurity from the El Niño drought in the just-ended 2023/24 agricultural season. 

In its latest update on the country’s economy, the World Bank said the 2024 El Niño-induced drought could be the worst in over 40 years, resulting in widespread crop failure, water resource depletion and stress on pastures.”The affected areas are home to almost half of the population, with over 40% of them experiencing food insecurity,” the global financial institution said. 

“Poor households, which spend about 48% of their total income on food, are hit hardest by reduced crop yields and increased prices. Consequently, many vulnerable households may fall below the poverty line. Additionally, the existing social assistance programmes have limited coverage and effectiveness, which hinders their ability to alleviate the impact of such shocks.” 

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IMF Cautions Zimbabwe’s Gold-Backed ZiG Can’t Fix Deeper Issues – BNN Bloomberg

(Bloomberg) — Zimbabwe won’t solve its economic challenges via the gold-backed ZiG currency that it launched in April and has since had to devalue, the International Monetary Fund said. 

“There’s a tendency to see the market rate, the exchange rate, as the cause of the problems countries face,” IMF Africa Department Director Abebe Selassie said in an interview. “In reality, the exchange rate is often the symptom and the root cause of exchange-rate weakness tends to be inflation.” 

The ZiG on Friday was quoted at 27.68 per dollar on the official market, according to the central bank’s website. The unofficial rate ranges between 40 to 50 to the dollar, according to ZimPriceCheck.com. The greenback remains the main currency used in daily transactions. 

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RBZ pumps US$32m into market

The Reserve Bank of Zimbabwe (RBZ) has injected approximately US$32 million into the interbank foreign exchange market over the past three weeks to help stabilise the Zimbabwe Gold (ZiG) currency and address supply-demand imbalances.

The intervention comes as the last quarter of the year typically witnesses heightened demand for foreign currency, driven by concurrent preparations for the summer cropping season and the festive season.

During this time of the year, Dr Mushayavanhu said, there is generally an increase in demand for forex by businesses seeking to procure agricultural inputs for resale and for festive season stockpiling.

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The Vanishing ZiG : Now it’s Here, Now it Isn’t

The regulations which gave birth to ZiG were temporary, because section 6(1) of the Presidential Powers (Temporary Measures) Act states: 

“Unless they are earlier repealed, regulations made in terms of section two shall expire and cease to have any effect immediately before the one hundred and eighty-first day following the date of commencement of the regulations.” 

Put simply, regulations made under the Act expire after 180 days and when they expire the law reverts to what it was before they were made.  In other words, the regulations legally vanish and anything the regulations may have done vanishes too. 

The upshot was that when the President’s regulations expired on the 2nd October, ZiGs ceased to be legal tender and in fact ceased to have any legal existence.  They still have no legal existence – they are dead. 

Conclusion

A clearer example of economic incompetence would be hard to find.  Here was a currency introduced with great fanfare, touted to become the sole legal tender in Zimbabwe and to replace the US dollar in all internal transactions – and the Government has let it vanish.

So, to refer back to the NewsDay article we quoted at the beginning of this bulletin, business may have got its wish.  But, as the saying goes:  Be careful of what you wish for.

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Zimbabwe inflation surges after currency devaluation | Reuters

Zimbabwe’s consumer inflation surged to 37.2% month on month in October in local currency terms, data showed on Friday, after a sharp devaluation in the southern African country’s currency. 

Zimbabwe’s central bank allowed the local gold-backed currency to fall over 40% in late September, to 24.3902 to the U.S. dollar. The currency has since fallen further, to 27.6880 to the dollar as of Friday, according to the central bank’s website. 

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Coltart accuses EMA of failing to address illegal mining near city’s dams

Bulawayo Mayor David Coltart has accused the Environmental Management Agency (EMA) of failing to prevent illegal mining activities near the city’s supply dams, which have led to severe land degradation and disrupted water flow into Bulawayo’s reservoirs. 

The illegal gold panning in dam catchment areas, particularly around Umzingwane, has exacerbated the city’s water crisis, especially during the dry season. 

Despite efforts by the Bulawayo City Council (BCC) to address the issue, political interference and a lack of resources continue to hinder progress. This has prompted growing calls for urgent action to mitigate the environmental damage and for EMA, along with other relevant authorities, to enhance their efforts in protecting the city’s vital water resources. 

The illegal activities have left behind large gullies and blocked streams, which are crucial for channeling water into the dams.

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Displaced farmers skeptical about Zimbabwe’s decision to compensate them

Some former commercial farmers in Zimbabwe who were kicked off their land 20-plus years ago say a government offer of compensation is woefully inadequate, and only desperate people will take the offer. 

Mthuli Ncube, Zimbabwe’s finance minister, said the government is starting to compensate white commercial farmers whose land was taken during the regime of longtime President Robert Mugabe. 

Ncube said $20 million would be shared by 94 foreign investors whose farms were seized in what Mugabe described as land reforms. 

The government has promised to pay another $3.5 billion to white Zimbabwean farmers. 

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