Monday, November 29, 2010

Wikileaks report: Tsvangirai gets fairly favaourable appraisal from the US

THE United States believes Morgan Tsvangirai is a is a brave, committed man
and, by and large, a democrat, and in a well balanced assesment its former
ambassador to Zimbabwe also found him to be "a flawed figure, indecisive and
with questionable judgment", according to a leaked secret cable published by
Wikileaks.

This is contrary to Zanu PF media reports cranking up the propaganda that
says "US expresses doubts on the PM".

"Morgan Tsvangarai is a brave, committed man and, by and large, a democrat. 
He is also the only player on the scene right now with real star quality and
the ability to rally the masses.  But Tsvangarai is also a flawed figure,
not readily open to advice, indecisive and with questionable judgment in
selecting those around him. 

He is the indispensable element for opposition success, but possibly an
albatross around t heir necks once in power.  In short, he is a kind of Lech
Walesa character:  Zimbabwe needs him, but should not rely on his executive
abilities to lead the country's recovery. 

Arthur Mutambara is young and ambitious, attracted to radical, anti-western
rhetoric and smart as a whip. 

But, in many respects he's a light-weight who has spent too much time
reading U.S. campaign messaging manuals and too little thinking about the
real issues. 

Welshman Ncube has proven to be a deeply divisive and destructive player in
the opposition ranks and the sooner he is pushed off the stage, the better. 
But he is useful to many, including the regime and South Africa, so is
probably a cross to be borne for some time yet.  The prospects for healing
the rift within the MDC seem dim, which is a totally unnecessary
self-inflicted wound on their part this time. 

With few exceptions Tendayi Biti, Nelson Chamisa  the talent is thin below
the top ranks.

The great saving grace of the opposition is likely to be found in the
diaspora.  Most of Zimbabwe's best professionals, entrepreneurs, businessmen
and women, etc., have fled the country.  They are the opposition's natural
allies and it is encouraging to see signs, particularly in South Africa and
the UK, that these people are talking,  sharing ideas, developing plans and
thinking together about future recovery.  

Unfortunately, among the MDC's flaws is its inability to work more
effectively with the rest of civil society.  The blame for this can be
shared on both sides (many civil society groups, like the NCA, are
single-issue focused and take the overall dynamic in unhelpful directions;
others, like WOZA, insist on going it alone as a matter of principle), but
ultimately it falls to the MDC as the largest and the only true political
party, to show the way.  Once again, however, these are natural allies and
they have more reason to work together than fight against each other. 

The MDC Prayer

The MDC has developed a prayer to seek for guidance from the Lord Almighty that Zimbabwe be a free nation again. Zimbabweans have suffered so much at the hands of men who have turned from God's word and wisdom. The MDC family is therefore praying for a nation that abides by God's major command, that we love one another.

The MDC Prayer

Dear Lord,

We pray for your guidance in building a nation that abides by your word and guarantees the values of democracy, human rights and individual freedoms.

We ask that you give us strength to always fight for justice and the rule of law for all our citizens.

To ensure that all Zimbabweans are free to pursue opportunity, equality and empowerment.

Lord we ask that you grant our leaders the wisdom and humility to follow your word and to serve the people of Zimbabwe with honesty and devotion.

We pledge to work in your name and in solidarity with the people of Zimbabwe to deliver dignity, hope, peace and prosperity to our great nation.

In Jesus name

Amen


--

MDC Information & Publicity Department

Saturday, November 27, 2010

Zimbabwe's 2011 Budget Angers Labor Groups, Empowerment Advocates

Zimbabwe's largest labor movement, economic empowerment advocates and civil
servants have reacted angrily to Finance Minister Tendai Biti's 2011 budget
saying it does not meet their expectations.

Secretary- general Wellington Chibhebhe of the Zimbabwe Congress of Trade
Unions said Biti's adjustment of tax-free income thresholds will not benefit
workers.

Chibhebhe said the majority of workers are next year expected to be still
earning salaries that are far below the breadline.

Biti increased the tax-free income threshold from the current US$175 to
US$225 and revised upwards the tax-free bonus threshold from US$400 to
US$500.

He set aside US$1.4 billion for civil service remuneration, almost twice the
US$773 million allocated in this year's budget.

Affirmative Action Group president Supa Mandiwanzira said the budget does
not cater for the nation's indigenization program. "It is an insult for the
minister to allocate only US$5 million for the indigenization program."

Progressive Teachers Union of Zimbabwe president Takavafira Zhou said
teachers, who are struggling to make ends meet, are angry that Biti's budget
proposal does not spell out any salary increases for them.

However, his Movement for Democratic Change formation led by Prime Minister
Morgan Tsvangirai said the minister showed unparalleled leadership in the
inclusive government with a presentation of a robust, well balanced and
professionally crafted national budget that captures the party's values and
people-centered development thrust to pluck out Zimbabwe from three decades
of economic ruin and policy confusion.

"The national budget, a brain child of Biti and a result of extensive
consultations countrywide, reflects a radical departure of previous national
financial plans and projections in that it emphasizes measurable growth
targets, subjects itself to the needs of the poor, accepts and recognizes
the central role of civil servants and demonstrates the MDC's solidarity
with the peasantry," the party said.

It further said the minister "deserves national commendation for unbridled
sensitivity to all Zimbabweans for a good piece of work and for mitigating
the historical burden on a nation previously at the mercy of
hyper-inflation, social iniquity and general political wickedness.

Meanwhile, Biti said Thursday diamond production in 2011 is expected to
increase to 4 million carats compared to this year's 2.7 million carats.

He said the first and second sales conducted in August and September 2010
generated gross proceeds of US$56.5 million and US$30 million respectively,
bringing the total to US$85.3 million.

He said of this amount, accruals to government were US$30 million and
US$11.9 million with the first tranche paid directly to central government
and indirectly through the Zimbabwe Revenue Authority.

Biti said from the second sale, only US$8 million was remitted to government
as dividend payment.

He said: "I have therefore requested that from the second auction of
diamonds, payments of royalties, commission and value added tax on
commission made to the Minerals Marketing Authority of Zimbabwe should be
remitted to treasury"
.
He further said negative investor perceptions coupled with persistent
liquidity challenges continued to subdue trading on the Zimbabwe Stock
Exchange (ZSE).

The daily average number of shares traded declined from 14.5 million in
January to 12.8 million shares by October 2010. The key industrial index
fell from 156.52 points in January 2010 to 137.04 by September while the
mining index dropped from 209.81 to 145.65.

However, Biti said, gains were realized in October when trading on the ZSE
picked up on the back of profit taking towards the end of the year and also
in response to better economic performance and positive outlook.

This saw industrials end October at 157.71 points while the mining index
rose to 217.07 due to firming world market metal prices.

Biti also said during the budget consultation process, a number of
stakeholders in the southern parts of the country raised concern over
exchange cross rates being applied by most retail shops, particularly
between the rand and the US dollar.

"In order to remove the rent seeking behavior by retailers, I am proposing
exchange regulations which will compel all authorized dealers, including
banks, shops and any commercial enterprise to display the daily applicable
international cross rates for all prescribed currencies in a manner that is
conspicuous to the public."

No Marange breakthrough

HARARE – Talks to break an international deadlock over Zimbabwe's suspended
diamond exports ended in Belgium on Thursday without a deal as the market
was awash with rumours that Harare was courting buyers for stones from its
controversial fields to the east of the country.

Industry representatives failed to hammer a compromise deal after a special
meeting of the Kimberley Process (KP)'s Working Group on Monitoring (WGM)
ended in Brussels with no consensus on whether to allow rough diamond
exports from Zimbabwe.

The Brussels meeting followed a KP plenary session held earlier this month
in Israel which nearly reached an agreement after direct consultations
between the United States and Zimbabwe.

The agreement was widely accepted by KP members but was blocked by Canada
and Australia.

The Tel Aviv meetings ended with a decision to continue negotiations until a
unanimous agreement is reached.

Zimbabwe boycotted the WGM meeting although it was said to be liaising with
the working group via a delegation from neighbouring countries.

Harare has insisted that it would resume selling the gems "without any
conditions".

Under a set of measures meant to bring Zimbabwe's controversial diamond
industry in line with KP standards, the world diamond industry must monitor
production and sales of diamonds from Marange field where the army has been
accused of rights abuses against civilians.

International rights groups have been pushing for a world ban on Zimbabwe
diamonds until Harare acts to ensure mining at Marange also known as
Chiadzwa is in full compliance with KP standards.

Meanwhile, media reports said rough diamonds mined by Mbada and Canadile –
two joint venture companies partnering the government in mining the Marange
gems –are being offered to diamond buyers.

Diamond industry publication IDEX Online noted that while the export status
of the diamonds was unclear, Zimbabwe was reportedly "seeking bids for the
goods".

"It's not clear if the goods are among those that were KP certified earlier
this month by the KP monitor, Abbey Chikane," the publication said.

Chikane sneaked into Harare this month and authorised the sale of Marange
diamonds without the consent of other KP members.

Only 4% of industry viable Print

HARARE – Only four percent of Zimbabwe's manufacturing companies are
operating at full capacity while the majority are struggling to ramp up
operations to match at least half of their potential, according to an
industrial survey published last week.
The 2010 CZI Manufacturing Survey, conducted by the Confederation of
Zimbabwe Industries showed that policy pronouncements such as the
Indigenisation and Empowerment Act impacted on the performance of the sector
with some companies adopting a wait-and-see attitude. The CZI noted that
capacity utilization remained a key challenge in the manufacturing sector.
"Although a few firms are producing to their full capacity or close to 100%,
the majority claim under utilization," the survey said. At least 55 percent
of manufacturing concerns are yet to reach 50 percent of their capacity
largely due to lack of working capital, low demand and antiquated equipment
which often results in high plant downtime.
Average capacity utilization at the end of the first half of 2010 stood at
43.7 percent compared to 32.3 percent at the end of the first half of 2009.
This has been largely due to the stable environment which has allowed
companies to plan and budget.The manufacturing sector is yet to experience
the big leap to high sustainable growth that had been projected by
Government. On interrogation, it was observed that the major constraints to
capacity remain largely unchanged with government having failed to address
the fundamentals required to attract the much needed investment.
The three major capacity constraints have been attributed to lack of working
capital; antiquated plant machinery which has resulted in loss of time due
to machinery breakdowns or plant and machinery refurbishment; and low
demand. Exports also remained depressed, with Zambia being the top export
destination. The survey also cited high wage bills as one of the constraints
affecting operations of most companies in the sector.
Workers continue to demand wage increments that are neither productivity
based or in line with inflation developments.
Average wage bills rose by 12% from the second half of 2009 to the first
half of this year. "As the confederation we believe that any wage
adjustments should be productive based, we need to realize the need to
contain unnecessary
inflationary pressures in the economy," CZI said.
The majority of the manufacturers believe there are "minimal" chances of
positive growth for the sector until the right fundamentals are put in
place. They said the government has to seriously address the issue of
capital availability as well as power shortages which are hurting the
industry.