President Mugabe of Zimbabwe attended the African Union Peace and Security Council meeting held on March 10, 2011. Zimbabwe is launching a nationwide anti-sanctions campaign in this Southern African nation. a photo by Pan-African News Wire File Photos on Flickr.
President leaves for Ethiopia
Wednesday, 09 March 2011 20:50
Herald Reporter
President Mugabe today leaves for Addis Ababa, Ethiopia to attend an African Union Peace and Security Council meeting on Cote d'Ivoire.
Zimbabwe sits on the 15-member Peace and Security Council.
At the 16th Ordinary Session of the AU General Assembly in January, the council agreed to set up a special panel to make recommendations on the way forward in Cote d'Ivoire, which has for months been locked in a deadlock following contentious Presidential elections last year.
The panel was established after the mediator between incumbent President, Laurent Gbagbo, and challenger Alassane Ouattara, Kenya's Prime Minister Raila Odinga was deemed to be unfit for the role.
Odinga tried to present a report of his "findings" to the media in Addis Ababa, before they had even been seen by the AU.
AU Commission chairman Dr Jean Ping had to call security personnel to stop Odinga from breaching accepted protocols.
The Peace and Security Council then set up a committee of five Heads of State and Government to investigate the situation in Cote d'Ivoire.
The council is supposed to accept the recommendations before they can be implemented.
Council chair, President Abdel Ould Aziz of Mauritania, heads the panel, which also includes South Africa, Burkina Faso, Tanzania and Nigeria
VP Mujuru returns
Wednesday, 09 March 2011 20:50
Herald Reporter
VICE PRESIDENT Joice Mujuru returned home from Seychelles on Tuesday night after leading a Zimbabwean tourism delegation that scooped a third prize at the just-ended Carnaval International de Victoria.
Zimbabwe came third after the Douglas Vambe-led traditional dance group stole the show during cultural displays by 62 groups from all over the world.
Mr Vambe popularised Jerusarema-Mbende beat throughout the carnival to the delight of the judges and delegates.
Tourism and Hospitality Industry Minister Walter Mzembi was ecstatic after presentation of the award.
"It is our season of international accolades and this shows that we are now good for business," Minister Mzembi said.
He was crowned the African Tourism Minister of the year last month.
Minister Mzembi said the award was a culmination of a lot of hard work by stakeholders in the tourism sector and the nation at large.
He said Zimbabwe drew a number of lessons from the Seychelles Carnaval International de Victoria saying the event was testimony of the Seychellois' happiness. Events like carnivals, Minister Mzembi said, could be used to measure the "gross national happiness index".
Zimbabwe intends to host a similar event before the end of this year. Minister Mzembi said Zimbabweans had a lot of achievements to celebrate like the land reform programme.
"You find our people happy and celebrating the land reform, empowerment programmes, accomplishments in education and health.
"In conducting a carnival people then pick floats and make as much noise around it. Only then can we say our people have told us they are happy," he said.
Minister Mzembi said a carnival could also be used as an instrument of national cohesion.
Meanwhile, the Seychelles Tourism Board chief executive officer Mr Alain St Ange has pledged to market Zimbabwe as one of Africa's best tourism destinations.
"We will tell the world that Zimbabwe was here. We will spread the message about your natural resources for them to be known. We are stronger when we work as a unit," he said.
Zimbabwe and Seychelles will soon sign a Memorandum of Understanding aimed at joint tourism promotions.
Indigenisation report gets politburo’s nod
Wednesday, 09 March 2011 20:51
Herald Reporter
Zanu-PF's Politburo met in Harare yesterday and approved a report on sector-specific recommendations presented by the party's secretary for indigenisation and economic empowerment, Cde Saviour Kasukuwere.
Speaking to journalists after the extraordinary Politburo meeting at the party's headquarters, Zanu-PF secretary for information and publicity Cde Rugare Gumbo said they had unanimously endorsed the report and it will be taken to Cabinet for consideration.
He said the Politburo also made recommendations on a few areas regarding shareholding thresholds per sector.
"Cde Kasukuwere gave us a rundown of what he has been doing.
"It was a detailed report on all sectors of the economy and the report was well received and accepted by the Politburo as a good report.
"In the mining sector the Politburo noted that Cabinet has already approved 100 percent State ownership of all alluvial diamonds and 51 percent of other diamonds and other minerals.
"In this regard Cabinet also resolved that a Sovereign Wealth Fund should be set and capitalised from financial proceeds of the mining sector in the form of dividends and other income," he said.
In the banking sector, Cde Gumbo said, it was noted most financial institutions were foreign-owned and it was recommended that all banks should be under reserved sectors of the economy.
However, exceptions could be made by the Indigenisation Minister. Cde Gumbo said credit lines should be made available to farmers to promote small-scale farmers while a budget should be set aside for an extensive marketing campaign to re-brand Zimbabwe's tourism sector.
Meanwhile, Cde Gumbo said they were finalising provincial launches of the National Anti-Sanctions Petition Campaign.
"Our commissar Cde (Webster) Shamu infor-med me that all was almost in place to start distributing the petition in provinces.
"The papers are being printed and will be ready any time soon."
Zim economic recovery hailed
Wednesday, 09 March 2011 18:24
By Golden Sibanda
THE African Development Bank has commended Zimbabwe's economic recovery and called on the Government to consolidate the gains achieved thus far to ensure the economy reaches its full potential.
AfDB president Mr Donald Kaberuka said this on Tuesday during the two-day Zimbabwe Investment Conference, which ended in Harare yesterday. The Indaba, co-hosted by Euromoney Conferences and the Government of Zimbabwe, sought to unlock foreign investment.
Mr Kaberuka said since the formation of the Inclusive Government in February 2009 hyperinflation had been tamed and fiscal discipline restored. This, said the AfDB boss, showed that the country's potential as the second engine for economic growth in Sadc region, was still vastly high.
He said for the first time in a decade Zimbabwe had not only reversed economic decline, but is moving forward economically despite many challenges.
"It shows the potential of Zimbabwe, the resilience of its people and this points to how far it can go if (the right) conditions are in place," said Mr Kaberuka.
The economy rebounded from decline to post successive growths of 5,7 percent and 8 percent in 2009 and last year respectively.
Finance Minister Tendai Biti has projected the economy will expand by 9,3 percent this year. Annual inflation closed at 5,4 percent in 2009, further declining to just 3,2 percent last year and is expected to be about 5,4 percent by the end of the year.
The AfDB president said after restoring macro-economic stability most economic indicators changed from red to yellow and should move to green.
"Economic prospects are brighter, key sectors such as mining and agriculture are responding, exports have increased, while the balance of payments improved significantly in 2010," said the AfDB president.
To show its confidence in Zimbabwe Mr Kaberuka said AfDB had recently opened its Harare office and was working with Government on the debt issue, which will pave way for re-engagement.
The international community has also tasked the bank with the management of the multi-donor trust fund for Zimbabwe, which AfDB said showed confidence in the bank and quality of its relationship.
The fund is seized with providing initial critical investments for the power and water sectors, recovery of agriculture, providing technical support, capacity, public finance and debt management.
AfDB said despite the complexities the Government faced stability-political and economic-policy predictability, clarity on property rights, certainty and low cost of doing business were key for attracting investment. The regional bank, however, said the country had not invested in infrastructure in the last decade and required significant funding to address this.
An assessment that AfDB conducted in January at the request of Government established that Zimbabwe needs US$14 billion to rehabilitate and expand infrastructure to meet demand in the next decade. In light of financial constraints Government faced, AfDB suggested a combination of donor assistance, parastatal and private sector interventions.
Speaking at the same event Minister Biti said sorting the political issues of the country and strict adherence to macro-economic rules were critical to maintaining the economic gains and sustain future growth.
He also said the country need to urgently address its shortcomings in terms of infrastructure such as power, water and sanitation to keep growing. To that end, he said the country would need at least US$4,5 billion to fund one of the most promising thermal power projects in Gokwe North. He said water and sanitation require an estimated US$3,5 billion.
In a bid to close the technology gap between Zimbabwe and the rest of the World, Minister Biti said the Government allocated significant amounts to connect the ICT backbone to undersea cables in Mozambique.
The Finance Minister also said total resolution of the country's US$7,1 billion debt overhang was critical as that was standing in the way of external credit. He said World Bank disbursed US$39 billion between 2009 and 2010, but Zimbabwe did not benefit due to the country's huge debt obligations.
Minister Biti also added the Government was looking to keep directing most of the limited resources to social services in a bid to raise local per capita income.
He said the country's per capita income was presently perched at US$300, but would seek to raise this to between US$800 and US$1 200 in three years.
This would be achieved through continued investment in education and health. He said the country was ready for and required significant foreign direct investment.
Mineral exports hit US$l,3bn
Wednesday, 09 March 2011 18:23
By Martin Kadzere
MINERAL exports, excluding diamonds, more than doubled to US$1,3 billion last year, largely driven by higher output and strong commodity prices, latest figures from the Chamber of Mines show.
At least US$600 million was raked in from the exports in 2009.
Last year, platinum shipments accounted for almost a third of the revenue with exports amounting to about US$409 million.
Gold exports earned the country about US$380 million. Coal raked in US$87,9 million while ferrochrome brought in US$134 million.
Zimbabwe did not export ferrochrome in 2009.
Chrome realised US$56,8 million, copper US$28,5 million, nickel US$111,2 million and palladium US$100,6 million.
Zimbabwe's mining sector experienced challenges over the past 10 years, alongside other key economic sectors, such as manufacturing, agriculture, tourism and financial services.
Investment is returning to the mining sector, following the establishment of a unity government in 2009.
The liberalisation of the gold sector in the same year was a further boost to the industry.
Coal mining also received a boost from an investment in the Hwange Colliery and the notable developments in the mining space that include the opening up of the country's coal fields by President Mugabe and the approval of over 60 applications for the development of the country's coal asset.
The more than two-fold increase in chrome output last year was largely due to increased processing at Zimasco and Zimbabwe Alloys.
Chrome's growth is expected to continue this year on the back of mine expansion plans.
While the outlook for the mining industry is positive, the industry remains beset by significant challenges, which implies that although the growth rate is exceptional, it remains below potential.
Sanctions: US blocks couple's US$30 000 transfer
Wednesday, 09 March 2011 20:15
By Walter Nyamukondiwa in Chinhoyi
THE United States Treasury Department has blocked the transfer of US$30 000 to Chinhoyi Municipality by a Uni-ted Kingdom-based couple, saying Zimbabwe is under sanctions.
This latest direct infringement on individuals' econo-mic activities flies in the face of claims that the sanctions are targeted at certain people in Zimbabwe and not the generality of the populace.
The Government has since launched a National Anti-Sanctions Petition Campaign that seeks to tell the West that the majority of Zimbabweans do not support the em-bargo.
A letter from the US Treasury dated January 25, 2011 (case number ZI-428) which is in The Herald's possession said the transfer was blocked because Chinhoyi Municipality's banker, ZB Bank, is particularly specified by the Office of Foreign Assets Control.
Mr Brian Hopper and his wife - who have business interests in Zimbabwe - intended to buy plots at Strathcona Farm in Chinhoyi and made arrangements to pay for them through a transfer from HSBC Bank Plc.
They made a transfer application on December 13, 2010 for the release of the money, but it was turned down by the Office of Foreign Assets Control.
A Treasury section chief, Jeanette A Jaeggi, said: "This letter responds to your application of December 13, 2010, to the Office of Foreign Assets requesting the release of the following blocked funds transfer:
Originator: Mr. B Hopper, Hemingbrough, Selby Originating Bank: HSBC Bank Plc Value Date: 12-Nov-10
Amount: US$30 000-00
Beneficiary Bank: ZB Bank Ltd
Beneficiary: MOC Estate, Town Clerk Municipality of Chinhoyi, Zimbabwe.
"HSBC properly blocked this transfer pursuant to US sanctions administered by the OFAC."
The letter goes on to state that under the regulations, a US financial institution is required to "block all wire transfers in which a sanctions target has an interest and that come within the institution's possession or control, even if the institution is an intermediary and an underlying transaction does not otherwise involve a person subject to US jurisdiction."
The money is held in an interest bearing account, but Mr Hopper is prohibited from engaging in any transaction in the property or from exercising any rights, po-wers or privileges in respect of such a property without authorisation from OFAC.
"Once a wire transfer has been blocked, OFAC does not recognise attempts to extinguish the interest of the sanctions target in the transfer by, for example, cancelling the original payment instructions or effecting a second payment to the beneficiary."
Chinhoyi Municipality director of finance Mr William Mandinde confirmed the matter and said blocking such funds seriously affected residents, who counted on the local authority for proper service delivery.
"That money would have gone a long way in alleviating some of the problems we are facing as a council. We were looking forward to having the money as we had already factored it into our plans for the development of the town," he said.
A US-based company recently denied a Chinhoyi University student computer software that she wanted to use for her studies because Zimbabwe is under sanctions.
A few years ago, Africa University indicated it had also had problems with Microsoft, which said it could not supply certain software and programmes because of sanctions on Zimbabwe.
Zimbabweans cannot open accounts with PayPal, an online facility incorporating some 100 million individuals and companies.
PayPal - which is based in the US and allows members to trade over the Internet - says the US Treasury advised them not to open accounts for Zimbabweans in Zimbabwe.
Last week, President Mugabe launched the National Anti-Sanctions Petition Campaign.
The petition seeks at least two million signatures of Zimbabweans opposed to the embargo.
Sadc, the African Union and Comesa, among other progressive international groupings, have all condemned the sanctions for their impact on ordinary Zimbabweans.
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