Mrs. Joyce Mujuru, Vice-President of the Republic of Zimbabwe. She campaigned all over the country for the ruling ZANU-PF Party to achieve victory in the June 27, 2008 elections.
Originally uploaded by Pan-African News Wire File Photos
Herald Reporter
ACTING President Cde Joice Mujuru yesterday paid her condolences to India following the death of former Indian president, Mr Ramaswamy Venkataraman.
Signing a condolence book at the Indian embassy in Harare, Cde Mujuru said Zimbabwe commiserated with India in its time of bereavement.
She was met at the embassy by India’s ambassador to Zimbabwe, Mr Venkatesan Ashok.
"The Government and people of Zimbabwe have learnt with deep sorrow, of the death of former President of India, R Venkataraman on January 27, 2009.
"We extend profound sympathies to the bereaved family and the Indian people at this sad loss.
"May his soul rest in peace," read her condolence message.
The former Indian president visited Zimbabwe in June 1989 and met President Mugabe when he was still chairman of the Non-Aligned Movement.
Mr Venkataraman was born on December 4 1910 in Pattukottai, near Thanjavur in Tamil Nadu in India.
He was the eighth president of the Republic of India from 1987 to 1992.
Before his election as president, he served for nearly four years as the seventh vice president of India.
A member of the Indian National Congress party, he held various ministerial positions during the course of his political career, among them in the government of Indira Gandhi.
He had the unique distinction of working with four prime ministers, and appointing three of them during his five-year term which saw the advent of coalition politics in India.
UN ready to assist inclusive Govt
From Takunda Maodza
Zimbabwe Herald
UNITED NATIONS Secretary-General Mr Ban Ki-moon says the world body is ready to provide assistance to the envisaged inclusive Government in Zimbabwe and that a "high-level humanitarian mission" will soon visit the country.
In his address at the official opening of the 12th African Union Heads of State and Government Summit in Addis Ababa, Ethiopia, yesterday, Mr Ban said he was pleased that Zimbabwe’s political leaders had finally agreed to form an inclusive Government.
This comes as Libyan leader Colonel Muammar Gaddafi was elected AU chairperson, replacing President Jakaya Kikwete of Tanzania, whose one-year tenure ended yesterday.
The UN chief took a swipe at countries that had tried to use the world body to intervene militarily in Zimbabwe, saying regional initiatives such as the Sadc-sponsored dialogue were better than "preventive diplomacy launched from New York".
"Of course, regional initiatives carry not only the privilege of priority, but also greater ownership and the responsibility of effective delivery," he said.
He, however, challenged Zanu-PF and the two MDC formations to build on the political settlement to pave way for international support.
"The United Nations has supported the mediation efforts of the Southern African Development Community, and I am pleased that the two sides have now agreed to work together," he said.
"I urge all sides to build on the hard-won breakthrough, which has taken place so that the international community can partner with Zimbabwe in meeting the desperate humanitarian needs of its people."
Mr Ban indicated that a team from his offices would be immediately dispatched to Zimbabwe.
"The United Nations remains ready to help this Government as it moves forward," he added.
Addressing the same gathering, AU Commission chairperson Mr Jean Ping welcomed the finalisation of dialogue between Zanu-PF, MDC-T and MDC, calling it a great stride in the right direction.
He encouraged the envisaged inclusive Government, which is expected to be in place by February 13, to take all necessary measures to overcome the challenges facing the country.
Outgoing AU chairman Mr Kikwete also applauded Zimbabwe’s political leadership for finally agreeing to work together.
"We at the African Union are pleased that our Sharm el-Sheikh decision has been taken into account and implemented," he said.
The African Union Assembly, meeting in its 11th Ordinary Session held on June 30 to July 1, 2008 in Sharm el-Sheikh, encouraged President Mugabe, MDC-T leader Mr Morgan Tsvangirai and MDC leader Professor Arthur Mutambara to form an inclusive Government.
Under the arrangement, President Mugabe remains Head of State and Government with Mr Tsvangirai and Prof Mutambara coming on board as Prime Minister and Deputy Prime Minister respectively.
The UN welcomed various regional initiatives by African leaders aimed at achieving sustainable political solutions in the continent.
The summit, running under the theme "Infrastructure Development in Africa", ended late yesterday.
RBZ slashes 12 zeros
Business Editor
THE Reserve Bank of Zimbabwe has removed 12 zeros from the Zimbabwe dollar, broadened the foreign currency licensing framework and relaxed exchange control regulations as part of a cocktail of measures to jump-start the economy.
A new family of currency denominations, ranging from $1 to $500, has been introduced with immediate effect while the old currency already in circulation will remain legal tender until June 30, this year.
As was intimated in the National Budget statement last week, all businesses, right from the largest company to the street vendor, will now be allowed to sell their goods and services in foreign currency.
They will be required to apply for special foreign exchange licences, under which they will pay an annual fee ranging from US$10 once-off for hawkers and US$12 000 annually depending on location and nature of business.
These measures further endorse the adoption of a multiple currency trading system announced by Acting Finance Minister Senator Patrick Chinamasa last Thursday.
The entire commercial sector has now become an export processing zone, a strategy meant to increase the number of participants across the entire economic spectrum, ultimately increasing the availability of goods and services.
A base exchange rate of Z$2 (revalued) to the South African rand and Z$20 to the US dollar came into effect yesterday. Its movement, starting from today, will be determined in the market with all foreign currency transactions effected at the going rate.
Presenting his Monetary Policy Statement, dubbed "Turning Our Difficulties Into Opportunities — Exports, Forex, Exports", in Harare yesterday, RBZ Governor Dr Gideon Gono stressed that the new measures were not tantamount to dollarisation, but are a strategy to liberalise the economy.
"This is a tailor-made strategic intervention that is meant to bring convenience to the general public, as well as supporting productive efficiencies, whilst at the same time preserving the sovereign Zimbabwe dollar by giving it company among other currencies of choice, which is the essence of multi-currencying," he said.
The revaluation of the dollar and the new dual pricing framework under which Dr Gono directed that goods and services be quoted in both Zimdollars and foreign currency would help shore up the domestic currency.
The pricing formulae would be based on the inter-bank market-determined exchange rate.
"Even in the face of the current economic and political difficulties confronting the economy, the Zimbabwe dollar ought to and must remain the nation’s currency, so as to safeguard our national identity and sovereignty," he said.
The RBZ chief said 2009 would mark the turning point for the country’s economic fortunes. Progress would be premised on hard work, honesty and sacrifice.
Vouchers, which would be given as an allowance for civil servants, will be issued with a US$100 value apiece, to be used as cash to purchase goods and pay for services.
Traders will then bank them, after which they will be forwarded to the central bank where they will be debited against Government’s foreign currency collections.
Sen Chinamasa announced last week that the voucher system would be an interim measure to facilitate access to a basket of goods and services for civil servants.
Dr Gono challenged banks to adapt to the new economic dispensation and come up with products that would encourage foreign currency to circulate in the formal system.
"It is now time for the (banking) industry to develop aggressive marketing strategies, incentives and products that promote banking in foreign currency, especially by individuals," he said.
Bank charges for FCAs will be levied in foreign currency.
Dr Gono also encouraged banks to install Point of Sale machines and other systems in foreign exchange trading areas and to issue debit cards such as the Mastercard or Visa to enable FCA customers to transact both locally and internationally.
"You asked for it and we have given it to you," he said in apparent reference to the request for further economic liberalisation.
Sanctions: Let’s all speak with one voice
WE hail the calls made by MDC leader Professor Arthur Mutambara, who told world leaders at the World Economic Forum underway in Davos, Switzerland, to put a lid on the rhetoric and listen to Zimbabweans for a change.
We hope the Western world, which imposed and has maintained ruinous economic sanctions on Zimbabwe over the past decade, got the message along with the call from the African Union Summit underway in Addis Ababa, Ethiopia, that the illegal sanctions should be lifted forthwith.
African Union Commission chairman Jean Ping urged the world to help Zimbabwe rebuild its economy now that its people are pulling together.
The calls could not have come at a better time given the pledge made by US President Barack Obama, who said his approach to foreign policy would be to start by listening, as he acknowledged that all too often the US starts by dictating without knowing all the issues involved.
Even though Obama was talking about the Middle East, we would like to believe this would be his approach to Zimbabwe as well, where US engagement has been nothing but destructive.
To this end, we challenge the other party to the agreement, MDC-T, to add its voice to the anti-sanctions lobby — that now incorporates the AU, Sadc, Comesa, and the Non-Aligned Movement — to send a clear message to all that the days of divisive politics are over.
We all know that the rain began beating us soon after our bilateral dispute with London flared up, when some among us allowed outsiders a foothold in our domestic affairs, spawning the socio-economic and political discord we see today.
It goes without saying that the solution to the prevailing challenges rests on going back to the basics, when we could quarrel in our household but collectively unite against external aggression.
We all need to put Zimbabwe first and tell all who are working to destroy it: ‘‘Hands off!’’
We are all stakeholders, and the onus is on us to come together and speak as one against the attempted strangulation of our country.
If we do that, then the problems we are facing will be resolved in no time given the extent of natural resources at our disposal.
Those who are sabotaging the economy — through illegal sanctions — are doing so under the pretext of pressuring the Government on behalf of a certain section of Zimbabweans.
To this end, we urge the opposition, on whose behalf the Westerners purport to act, to step up to the plate and work with all Zimbabweans to have the illegal economic sanctions and artificial-risk investment tag foisted on the country removed.
Speaking as one, the parties should call on the multilateral lending institutions to restore our lines of credit, and invite investors to come and exploit the numerous opportunities on offer on a win-win basis in line with the Indigenisation and Economic Empowerment Act.
If we do not work to develop our country, no one else will develop it for us.
To this end, we challenge the parties to the broad-based agreement to rekindle the spirit of the Memorandum of Understanding they signed, hold hands and walk together to a great future for our country.
Encourage purchase of locally-made vehicles
By Themba Chidembo
Zimbabwe Herald
I WOULD like to challenge the Government on something.
Some weeks ago, I read an article by an analyst, whose name I cannot recall, proposing that the State should immediately bar any fresh importations of luxury vehicles and see what effect this would have on the economy.
This is certainly a good idea and perhaps the Government should seriously consider doing so.
The thing is, Zimbabweans are externalising large sums of foreign currency as they purchase top-of-the-range luxury vehicles when the country does not have enough money to meet key requirements.
If people are compelled to go for locally available alternatives, a lot of money will be retained in the country for other more important uses.
We have a Mazda assembly plant in Harare’s Willowvale industrial area and surely it would make sense to encourage people to purchase these vehicles.
This would capacitate local industry and indeed it would boost our trade ties with countries like Japan as well as lead to more robust foreign currency reserves.
It is my opinion that the Government should acquire official vehicles from this plant rather than importing costly vehicles.
In France, all government departments use locally available options such as Peugeot and Renault.
This boosts local industry and saves foreign currency for use for other important business.
One will not find a French government official zipping around the streets of Paris or Bordeaux in a Lexus that has been purchased by the state.
This is for the simple reason that they see the importance of boosting their own industry.
If one were to go around Cuba, they would find very few new vehicles.
I do not know if Cuba placed a ban on the importation of new luxury vehicles, but the fact is the country has been able to save much needed foreign currency.
The example of Cuba is particularly apt if one considers that they have been living under a brutal sanctions regime for the past 50 years.
The streets of Havana and Santiago are not jammed with the latest Hummers, Bentleys and Porsche Cayennes.
I am positive that the state there has made a conscious decision to regulate how foreign currency is best used and best saved.
Zimbabwe can do the same.
Many cars on the streets today were bought using money acquired illegally through the parallel market currency trading and diamond and gold panning, among other illicit activities.
It would have made sense for the Government to try and tap into this large foreign currency reserve by putting restrictions on the importation of certain goods such as cars.
The financial services sector has also been a prime importer of vehicles and it would not be difficult to compel them to purchase locally available alternatives if they want to do business in Zimbabwe.
We should not forget the non-governmental organisation sector and civil society.
These people have accessed millions of American dollars and British pounds over the past 10 years.
They have used a lot of this money to import top-of-the-line luxury vehicles and utility models such as 4x4s.
NGOs have made a lot of money from the political and economic situation in the country and I think it is time they gave something concrete back to the people that they have made money out of.
If they entertain any ambitions of continuing to milk these millions out of their Western donors and friends, then it should be made clear, and with no apologies, that locally assembled vehicles are just as good as the machines that they are importing at great cost.
Besides, this should free up some more money for the NGOs to actually help people rather than dedicating over 70 percent of their budgets to cars, salaries and perks for their directors.
The local assembly plant can surely supply luxury vehicles as well as utility models such as 4x4s and delivery vans, which are essential for the activities of NGOs in rural areas with poor road networks.
The donors should not have any problem with this if they are truly concerned about assisting Zimbabwe in recovering its former glory as a regional economic powerhouse.
But for this to have any impact at all, the Government must lead by example.
Senior officials such as permanent secretaries and other high-ranking personages in the civil service — including those in the uniformed and security services — should have locally assembled vehicles as their official vehicles.
This drive — no pun intended — should be taken further so that even Cabinet ministers and their deputies also use the local alternative for their official duties.
Of course, exceptions can be made for security vehicles that need bullet-proofing though in the long run the aim should be to incorporate the expertise available at companies such as Trinity Engineering and Willowvale Mazda Motor Industry so that this aspect can be locally catered for. (This is a potential growth area because Zimbabwe can then start exporting armoured passenger vehicles rather than importing them.)
Right now, there is a serious economic crisis plaguing the world’s most highly industrialised countries and it is a matter of time before economies in Africa start feeling the pinch.
One of the productive sectors most affected by the current global economic downturn is the motor vehicle industry.
Over the past few weeks, international news bulletins have been dominated by reports of how a number of countries are moving to save their automobile industries.
Recently, the United States Congress gave Washington the green light to bail out big car manufacturers like General Motors and Ford to the tune of billions of American dollars.
I have also listened to at least two news reports indicating that France will pump out billions to save its own local automobile manufacturing industry.
Thousands of jobs in this industry have been lost in the past few months because of the economic crisis.
But in Zimbabwe there is no indication that the motor vehicle industry is suffering. In fact, few Zimbabweans will have noticed the impact of the global economic crisis because our economy is certainly of a mould never seen before in history and yet to be explained by our economists (who also drive stunning cars).
People are still importing very expensive vehicles and are cruising up and down the streets and highways as if fuel is provided free of charge.
This obviously indicates a massive foreign currency base that should be harnessed for the good of the nation.
After all, a lot of this money has come from activities that are not justifiable in a court of law and the least that can be done is to use this excess cash to improve food security and infrastructure rehabilitation and development.
It could be viewed as radical, but in a situation such as ours, radical options must be explored.
I understand that in Venezuela, which by the way is in better economic condition than Zimbabwe, the state closely monitors how much foreign currency a citizen can spend abroad.
Venezuela is an oil-rich country, but there are many parallels that can be drawn between their ideological-structural base and Zimbabwe’s.
Neo-liberals do not like the word "control", but that is exactly what Zimbabwe needs — robust controls.
If countries like Venezuela see the need to tighten their belts at a time like this, what more Zimbabwe?
If countries like France see the importance of boosting local industry, what more Zimbabwe?
There is a lot of money floating around in Zimbabwe and it is time it was properly harnessed.
Right now, the country has virtually dollarised its economy.
We are using money generated in Zimbabwe (legally or otherwise makes no difference now) to eat food from South Africa, to bathe with soap from Dubai, to drink whiskey from Ireland and to drive cars imported from God-knows-where.
And all this with money that should be used to develop Zimbabwe?
-Themba Chidembo is a Harare-based pedestrian and does not work for Willowvale Mazda Motor Industries.
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