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Almost everyone in Zimbabwe welcomes the new dispensation in the country that saw the end of former president Robert Mugabe’s reign in November after 37 years and the coming in of the president Emmerson Mnangagwa.
In his inauguration speech the new president told the people exactly what they wanted to hear: reviving the economy to create jobs and ending corruption which had become endemic in the country among many other changes.
Because of Mugabe’s economic and political policies the country had become a pariah state to foreign investors.Companies had closed down throwing 90 percent of the working population into unemployment and informal work.
The land acquisition programme which sought to acquire land from the few white farmers to redistribute to the black majority was done violently by the Mugabe regime in the year 2000.Productive farms taken over by ill prepared blacks became derelict. From being the bread basket of the region, the country became a basket case.Food shortages hit the country.
The international community shunned the country for its lack of respect for property rights.Foreign owned companies closed their operations and the few that remained struggled to stay afloat.
Galloping inflation struck the country from 2001 to 2009 further worsening the plight of the ordinary people.
Then in 2009 the country scrapped its Zim dollar and adopted a multi- currency system in 2009 that saw the US dollar becoming the main currency.
The move worked for a short while as the economy appeared to have stabilised. But corruption undid the economic stability as money was externalised mostly by senior government officials and some businesspeople. Around $4 billion was externalised between 2009 and 20017.
With little cash remaining in the country which had no meaningful exports to replace the externalised money,cash shortages hit the country. This resulted in the remaining few employed people spending hours on end,with many even sleeping at bank queues, to withdraw the imposed limit of just $20 per day.
Those in informal trade shunned banking their money because of high bank charges.
To exacerbate foreign investors thumping their noses at the country, government came up with the Indigenisation and Empowerment law which directed the few remaining foreign owned companies and new foreign investors to cede 51 percent shares to black locals.
As the economic climate worsened, people were disgruntled with the government and the opposition political parties had plenty of campaign about.
In fact,during the 2008 elections, when the economy was at its lowest ebb, the major opposition party,the MDC T, won the elections but could not muster the required 51 percent vote to form a government.
A rerun ensued which was boycotted by the opposition because of the heavy violence.Mugabe remained in power and continued to run down the economy.
The opposition parties continued to have plenty to campaign for with promises to revive the economy and create jobs for the millions of the unemployed who included thousands of graduates churned out of schools and colleges every year.
Then came the Ides of November,which saw Mugabe being forced to resign by the combined pressure from the military and the people.Then in came president Mnangagwa.
In his first budget under the new dispensation, finance minister Patrick Chinamasa made some pronouncements aimed at reviving the economy.
The most prominent points he highlighted were on:
THE INDIGENISATION LAW
-Changes were made to the indigenisation law which forced foreign investors to cede at least 51 percent shares to black locals. The 51 percent policy has been removed from all sectors of the economy except on just two minerals: diamond and platinum.
This is expected to lure foreign direct investors who were believed to be against the indigenisation policy.
-Re-engagement would be undertaken with the western world such as the United Kingdom, European Union and United States to attract investors from the west.
CASH SHORTAGES
The finance minister admitted that the panacea for cash shortages was foreign currency generation from productive companies.In the interim, the problem could be eased by :
– increasing the use of plastic money and mobile money transactions by the majority of the population in the rural areas.
– reducing the charges and taxes on the transactions
-encouraging external inflows such as diaspora remittances.
CIVIL SERVICE
Government expenditure on wages chewed 86 percent of the total revenue last year and the minister expected to cut the expenditure to 70 percent beginning next year after effecting measures which include:
-retiring those who have reached the retirement age of 65.
-abolishing 3739 youth officers jobs
-restricting first class travel to the presidium
-freezing recruitment of non- critical staff
-reducing the number of delegation on foreign travels
– cutting the number of diplomatic missions
-shelving plans to recruit 6000 early childhood development teachers
CORRUPTION
To combat corruption, the arms of government like the National Prosecuting Authority, Zimbabwe Anti-corruption Commission and the police would be required to issue quarterly reports on arrests made,successful prosecution and the value of money and property they recovered.
Also toll free lines would be established that link with the office of the president in addition to the lines to the relevant authorities.
PARASTATALS
Last year audits showed that 38 of the 93 public enterprises incurred a cumulative loss of $270 million due to poor governance and political appointees who awarded themselves unlimited allowances.
Chinamasa proposed to:
-close non- performing parastatals
-merge some parastatals
and privatise some of them
Most of the issues the finance minister addressed such as cutting government expenditure, employment creation and fighting corruption were the legs that opposition parties were standing on in theircampaigns to lure voters.
Question now is whither the opposition parties? What other legs have they to stand on?
Maybe they should wait to see if government pronouncements shall be followed by implementation.
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Zimbabwe’s economy is in dire straits. It has shrunk by 50 percent in the last 20 years.Ninety percent of the working ages are in informal employment, with quite as significant number as street vendors because major companies have long since closed shop.
Cash shortages have hit banks resulting in long queues at banks as the few employed people try to withdraw their salaries.
With no companies to draw taxies from,the national budget has been reporting deficits for the past several years.
Corruption has not helped matters either. From the police on road blocks to the highest ranking politicans, open corruption and white collar graft has become endemic in the country.
The fines collected by the police was never handed over to the country’s treasury. Externalisation of funds by politicians and businesspeople was rife.
The former president Robert Mugabe is on record wondering where $15 billion from the sale of the country’s diamonds went to.
Reports of politicians who have amassed vast wealth as the economy dodders and the majority wallow in poverty regularly appear in the press.
How did the economy sink to such levels?
Various policies through the years since independence in 1980 like the economic structual adjustment programme have contributed to the economic melt down.
But the stroke that finally broke the economy was the farm acquisition programme of 2001. This came after the people had rejected the proposed new constitution that sought among other things to compulsorily acquire white owned land for distribution to the blacks.
After the constitution was rejected, liberation war veterans invaded white owned commercial farms accusing the farmers of influencing blacks to reject the constitution.The white farmers were chased away.Government supported the invasion.
The white farmers left the country for neighbouring countries. Many of the white farmers also owned companies or had shares in the companies in the country. The companies closed when the farmers left leaving millions jobless.Graduates left schools and colleges to face joblessness.
The farm invasion displeased Britain,the country’s former colonisers, the bulk of whose nationals owned the farms. The British government and the rest of the European Union severed economic ties with Zimbabwe.
The US congress followed suit by enacting the Zimbabwe Democracy and Economic Act which imposed economic sanctions against the country.The act states that the sanctions shall only be lifted if the land situation reverted to where it was before the land invasions.
As the Commonwealth, a league of mainly former British colonies, was debating on whether it should expel Zimbabwe from the group, the then President Robert Mugabe withdrew the country from the group, thus further isolating the country from western countries.
Mugabe began the look east policy that sought economic and political support from eastern countries like China,Russia and India.
However, no meaningful investment came from the eastern countries.The Chinese who flooded the country, instead of investing in the much needed manufacturing sector competed with locals in the retail sector.
Some local retailers closed shop as they could not compete with the Chinese’s low cost products.Consumers, on the other hand, complained of the low quality goods sold by the Chinese which were imports from China.
When the new President Mnangagwa assumed office, he promised to re-engage the western countries for the economic development of the country.
Soon afterwards,the British minister for African affairs and secretary for foreign affairs visited Zimbabwe, the first visit by Britain’s government officials in 18 years.
This may be signalling the beginning of mending economic ties with Britain. Being on good terms with Britain also means good relations with the European block.And returning to the Commonwealth.
The US might follow suit by repelling ZIDERA but that is easier said than done. An act by congress is not as easy to remove.Especially with that statement which says that the land situation has to return to what it was before the land seizure of 2001 before the sanctions can be remove.
Barely 48 hours after the new President Emmerson Mnangagwa appointed his cabinet ministers he has made some changes to comply with the constitution.
Under section 104(3) of the constitution, ministers and the deputy ministers have to be senators or members of parliament except five who can be chosen for their professional skills and competency.
Of the 22 ministers appointed by President Mnangagwa, seven are not law makers.Dropped are Lazarus Dokora from the primary and secondary portfolio who has been replaced by his deputy Paul Mavhima.
Dokora, who had been reappointed, was the most unpopular with many callers to radio programmes after his reappointment expressing their displeasure at the way he ran the ministry in his previous tenure.
Law maker Patronella Kagonye has assumed the labour and social welfare ministry replacing Proffesor Clever Nyathi who was appointed special advisor in the president’s office on national peace and reconciliation.
Christopher Mutsvangwa, leader of the war veterans association and who was named information, media and broadcasting services was moved to special advisor to the president.
Joshua Malinga is the special advisor to the president on disability issues from deputy minister on social welfare.
Also reassigned were Pupurai Togarepi from deputy minister of youth affairs to the ruling ZanuPF youth secretary, taking over from Kudzi Chipanga. Victor Matemadanda was taken from deputy minister of war veterans to be the party’s political commissar taking over from Saviour Kasukuwere.
War veterans have been calling for the commissarate department to be led by one of their own.
The five without constituencies who remain ministers are:
Air Marshal Perrance Shiri(Lands Agriculture and Rural Resettlement
Major-General Sibusiso Moyo(Foreign Affairs and International Trade
Prof Amon Murwira (Higher Education,Science and Technology Development)
Winston Chitando (Mines and Mining Development
July Moyo(Local Government, Public Works and National Housing
President Mnangagwa has announced his cabinet made up of 22 ministers, six deputy ministers and 10 ministers of state for provincial affairs.These are 17 less than those in the previous administration.
The previous government had 33 ministers which were later trimmed to 26 there were 19 deputy ministers and 10 ministers of state for provincial affairs.
While the president has made welcome reduction in the number of ministers, it is disappointing that most of his ministers are recycled. They have been around for long and were ministers in various portfolios as our economy sunk.
The appointed are:
Patrick Chinamasa . -Finance and Economic Planning
Obert Mpofu -Home Affairs and Culture
Air Marshal Perrance Shiri -Lands Agriculture and Rural Resettlement
Lazarus Dokora. -Primary and Secondary Education
David Parirenyatwa. – Health and Child Care
Kembo Mohadi. – Defence, Security and War Veterans
Ziyambi Ziyambi. -Justice Legal and Parliamentary Affairs
Major-General Sibusiso Moyo- Foreign Affairs and International Trade
Kazembe Kazembe. -Sports,Arts and Recreation
Christopher Mutsvangwa-Information,Media and Broadcasting
Services
Mike Bimha. -Industry, Commerce and Enterprise Development
July Moyo. Local Government, Public Works and National Housing
Sithembisi Nyoni. -Women and Youth Affairs
Amon Murwira. -Higher Education,Science and Technology Development
Joram Gumbo. -Transport,Infrastructure and Development
Supa Mandiwanzira. -ICT and Cyber Security
Clever Nyathi. – Labour and Social Welfare
Winston Chitando. – Mines and Mining Development
Simon Khaya Moyo – Energy and Power Development
Oppah Muchinguri. -Environment, Water and Climate Change
Prisca Mupfumira. -Tourism and Hospitality
Simbarashe Mumbengegwi-Minister of State for Presidential Affairs and Monitoring of Government Programmes
Christopher Mushowe. -Minister of State for Government Scholarship in the President’s Office
The deputy ministers are:
Terrence Mukupe -Finance
David Marapira -Lands, Agriculture and Rural Resettlement
Paul Mavhima -Primary and Secondary Education
Victor Matemadanda-War Veterans
Pupurai Togarepi-Youth Affairs
Joshua Malinga -Social Welfare
Anyway, let us give this team a chance, time will tell if they will live up to expectations.
After taking the oath of office as the country’s new President,Emmerson Mnangagwa promised to hit the ground running to revive the economy.
Then days later he issued a three- month moratorium for those who externalised funds and assets to bring them back into the country or face prosecution. The amnesty expires at the end of February 2018.
An estimated US 4 billion dollars in cash and assets was externalised from 2009.
However, it should be clarified that not all externalisation was done illegally. In 2009, during the government of national unity of ZANU PF, MDC T and MDC, the then finance minister, Tendai Biti relaxed the monetary control regulations.This meant that those with free funds could take out of the country as much money as they required.
Biti meant to attract foreign investors.He reasoned that foreign investors were attracted to countries which do not place limits on the amount of profits they would want to take out. However, no foreign investment of note came mainly because of various other factors like, for example,the indigenous law which compelled foreign companies to cede 51 percent of ownership to locals.
Individuals and companies in the country took advantage of the relaxed monetary regulations and borrowed money from banks.The money was stashed away in foreign accounts and some went to acquire properties in foreign lands. Some borrowed ostensibly to acquire imports when in fact they were enriching themselves by buying assets outside the country.
Some openly broke the law by selling their properties in this country with the payments being made outside the country.
In 2015, government then tightened the monetary regulations and imposed a limit on the money individuals and companies could take out of the country.
Therefore, not everyone broke the law when they took out money.There are bank trails which identity who borrowed how much,for what,where it was taken to and what it was eventually used for.
Whether the money was taken out illegally or legally what is in no doubt is that the bulk of the money has not been repaid.There has been lack of political will to impress upon those who borrowed to repay mainly because many of the borrowers were the ruling party politicians or those connected to the politicians.
If the bulk of the borrowed $ 4 billion is repaid, it will go a very long way in ending some of the economic woes facing the country. For starters,the cash shortages gripping the country would end.
Corruption has become endemic in the country and the incoming administration has a lot on its hands to weed out corruption.
There are effective laws which can be used to act against corruption but again there is no political will to force their implementation.
Two of the most prominent laws are the Criminal Law and Codification Act and the Money Laundering Act.
The laws allows for prosecution to be effected when evidence of corruption is made available.Another law demands that one proves how they acquired their wealth failure of which the wealth can be seized by the state.
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Joseph was sold to the slave trading Ishmaelites also called the Midianites who in turn sold him to one of Egypt’s top leaders, Potiphar.One event lead to another as God led Joseph to become one of Egpty’s important men who would rescue his family from the famine that struck the earth.
In fact, Joseph went on to take his family under his care when they migrated to Egypt to escape from hunger.Thus the dream that he shall be above all his family members was fulfilled.
Let us come home.Would the new President Emmerson Mnangagwa still would have gotten the top job in the country had he not been fired by his predecessor, Robert Mugabe from being the country’s vice president?
After several allegations were made against the then vice-President Mnangagwa by the former first lady,Grace Mugabe, President Mugabe then fired Mnangagwa.
That became the catalyst that catapulted Mnangagwa. Two days after Mnangagwa was fired, the military stepped in saying that they were weeding out corrupt people around Mugabe. President Mugabe was confined to his house.
Days later thousands of people went into the streets across the country demanding the resignation of Mugabe who they accused of presiding over the economic melt down of the country.
His own political party ZANU PF turned against him and removed him from being its leader.On 21 November Mugabe resigned from being the country’s president as parliament began instituting procedures to impeach him thus ending his 37 year rule.
Three days later, Mnangagwa replaced Mugabe becoming the country’s second executive President. Although Canaan Banana was the country’s first president after independence in 1980, he was just a ceremonial figure with executive powers vested in Mugabe who was the Prime Minister.
The ceremonial presidency was later removed and Mugabe became the country’s first executive president.The post of prime minister was abolished.
Question is had seemingly set back events that occurred to both Joseph and Mnangagwa not happened would the two have become what they eventually became?
The lesson we can draw is that nothing can stand in the way of what God desires of our lives.Draw backs can in fact be the spring boards to the next stage of our lives.
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