
<p>HARARE (Reuters) &#8211; Zimbabwe’s Tourism Minister Prisca Mupfumira has been detained for questioning by a newly formed Zimbabwe Anti-Corruption Commission (ZACC), it said on Thursday.</p>



<p>Mupfumira is the first senior government official to be detained by the commission which was appointed by President Emmerson Mnangagwe on July 15 after he promised tough action against graft.</p>



<p>Transparency International says corruption costs Zimbabwe’s economy at least $1 billion annually.</p>



<p>“We can confirm that the minister of tourism is currently in our custody for questioning and possible due processes,” the Zimbabwe Anti-Corruption Commission (ZACC) said in a brief statement. It did not give any details.</p>



<p>Mupfumira, a senior member of the ruling ZANU-PF party, was previously labour minister who oversaw the $1 billion state pension fund. ZACC has said an audit report into the fund implicated several high profile officials for abuse of funds.</p>



<p>Mupfumira did not respond to calls for a comment.</p>



<p>The anti-corruption commission was given the power to arrest suspects, but critics question whether it will be effective.</p>



<p>The opposition cast doubt on Mnangagwa’s decision to appoint High Court Judge Loice Matanda-Moyo as the commission’s chair, alleging a potential conflict of interest because she is married to Foreign Affairs Minister Sibusiso Moyo, the retired army general who announced the November 2017 coup against former leader Robert Mugabe.</p>



<p>Matanda-Moyo has promised to tackle corruption without fear of favour.</p>



<p>Reporting by Nelson Banya; Editing by MacDonald Dzirutwe and Raissa Kasolowsky</p>


Zimbabwe’s tourism minister has been detained, here’s why


<p>HARARE (Reuters) &#8211; Zimbabwe hiked fuel prices on Monday for the second time in a week but most pumps remained dry, with no end in sight to shortages that are helping drive inflation rapidly higher and which have led to protests about the cost of living.</p>



<p>The Zimbabwe Energy Regulatory Authority said a litre of petrol would now cost 7.45 Zimbabwe dollars, up 22% from 6.10 dollars. Diesel now costs 7.19 a litre, a 23% rise.</p>



<p>With inflation soaring, economic analysts say increases in fuel prices are adding to price pressures, especially as rolling electricity cuts are forcing businesses to use expensive diesel generators to power their operations.</p>



<p>Diesel and petrol prices have gone up by 456% this year, in line with a slide in the value of the local RTGS currency, renamed the Zimbabwe dollar last month.</p>



<p>The biggest fuel price hike in January, a 150% increase, triggered violent protests by Zimbabweans. More than a dozen people were killed when the army clamped down on the unrest.</p>



<p>On July 13, fuel prices were hiked by up to 16% after finance minister Mthuli Ncube said fuel was considerably cheaper than in neighbouring countries. Ncube has said he would like to see the price increase to the equivalent of $1 a litre. [nL8N24E05Q]</p>



<p>The Zimbabwe dollar was trading on Monday at 8.88 against the greenback on the official interbank market, little changed from last week. On the black market, $1 fetched 10.5 Zimbabwe dollars.</p>



<p>Reporting by Nelson Banya, Writing by MacDonald Dzirutwe, Editing by Catherine Evans</p>


Zimbabwe increases fuel prices again, what you need to know

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<p>Ministry of finance permanent secretary George Guvamatanga joins CNBC Africa to talk about what the government is doing to turn around the country’s economic fortunes.</p>


George Guvamatanga on why Zimbabwe’s economy is turning the corner


<p>HARARE, June 25 (Reuters) &#8211; Zimbabwe’s largest labour body on Tuesday threatened protests over the government’s decision to ban the use of foreign currencies and make the interim currency the sole legal tender.</p>



<p>President Emmerson Mnangagwa’s government said the move on Monday to abandon a multi-currency system was an important step towards removing economic imbalances.</p>



<p>But many Zimbabweans are distrustful after a long succession of failed economic interventions.</p>



<p>“If the government does not reverse this ruinous policy immediately and announce U.S. dollar salary payments, we will immediately mobilise workers for mass action,” Zimbabwe Congress of Trade Unions (ZCTU) president Peter Mutasa told a news conference.</p>



<p>“The ZCTU has not moved from its position that the short-term solution is to dollarise and, as such, we are going into the tripartite negotiating forum (with government and business) to demand U.S. dollar salary payments,” Mutasa added.</p>



<p>In January, the ZCTU led nationwide protests against a 150% fuel price increase, triggering a violent crackdown by the army and police, which left at least 12 people dead, according to rights groups.</p>



<p>Mnangagwa replaced longtime leader Robert Mugabe after an army coup in November 2017, but a hoped-for economic turnaround has not materialised.</p>



<p>In February, Mnangagwa’s government introduced the RTGS dollar as a transitional unit before relaunching the Zimbabwean dollar. </p>



<p>(Reporting by Nelson Banya; Writing by Alexander Winning; Editing by Angus MacSwan and Alison Williams)</p>


Labour group in Zimbabwe threatens protests over ban on foreign currencies


<p>HARARE, June 7 (Reuters) &#8211; Zimbabwe must have a new currency by the end of the year, President Emmerson Mnangagwa said on Friday, arguing this would help stabilise prices after inflation hit a 10-year high.</p>



<p>The southern African nation in February removed an unrealistic peg for its electronic dollars and surrogate bond notes and merged them into a transitional currency called the Real Time Gross Settlement (RTGS) dollar.</p>



<p>The unit, which started trading at 2.5 to the dollar on the official interbank market when it was introduced on Feb. 22, was pegged at 5.9 on Friday, bringing its devaluation to 57.6 % to date. The currency has devalued by 49.4 % on the black market during the same time.</p>



<p>Most businesses are now pegging their prices in U.S. dollars and use black market rates to calcuate RTGS dollar prices.</p>



<p>“As a country we must have our currency by the end of this year, we have started that journey,” Mnangagwa said at a gathering south of the capital Harare.</p>



<p>Prices of basic goods from sugar to maize meal have spiked in the last month as the RTGS dollar has lost value.</p>



<p>Mnangagwa said price hikes were unjustified.</p>



<p>Finance Minister Mthuli Ncube said in January that Zimbabwe, in the grip of a severe dollar crunch that has caused shortages of fuel and medicines, would have a new currency in the next 12 months.</p>



<p>Zimbabwe abandoned its own currency in 2009 after it was wrecked by hyperinflation and adopted the greenback and other currencies, such as sterling and the South African rand.</p>



<p>As physical dollar supplies started dwindling, the central bank introduced the bond note in 2016 at par to the dollar while the amount of electronic dollars increased, plunging the financial system into disarray. (Reporting by MacDonald Dzirutwe, Editing by William Maclean and Gareth Jones)</p>


Zimbabwe to have new currency by end of 2019 – Mnangagwa


<p>HARARE (Reuters) &#8211; Zimbabwe and the European Union began political talks on Wednesday aimed at turning the page on hostile relations during Robert Mugabe’s rule, a step that could enable a resumption of direct financial aid for the ailing economy.</p>



<p>During Mugabe’s four-decade rule until 2017, he would routinely blame European “colonialists” for Zimbabwe’s problems, and snarled at EU and U.S. sanctions for rights and vote abuses.</p>



<p>The EU has only kept sanctions on Mugabe, his wife and the state arms manufacturer, but is yet to resume direct funding to the new government of President Emmerson Mnangagwa, preferring to channel money through local charities and U.N. agencies.</p>



<p>With the economy afflicted by dollar shortages, fuel queues, power-cuts, and soaring prices, Mnangagwa has said restoring ties with the West and multilateral lenders like International Monetary Fund is one of his major priorities.</p>



<p>At the start of the open-ended talks between diplomats and officials in Harare, EU Zimbabwe delegation head Timo Olkkonen said they would discuss issues including economic development, trade, investment, rights, rule of law and good governance.</p>



<p>The government has already signed up to an IMF monitoring programme where it has committed to political and economic reforms in a bid to set a track record of fiscal discipline that could earn it debt forgiveness and future financing.</p>



<p>At a separate event in a Harare hotel, Mnangagwa signed a new bill creating a tripartite negotiating forum intended to bring labour, business and government together to shape policy.</p>



<p>The 76-year-old leader is under pressure to deliver on pre-election promises and wants to avert a repeat of violent protests over a steep fuel price hike in January.</p>



<p>Later on Wednesday, the government is expected to start wage negotiations with public sector unions, who say a pay rise of up to 29% they received in April had already been eroded by inflation, now at a 10-year high of 75.86 %.</p>



<p>Mnangagwa has promised to break with his predecessor and says his “open for business” mantra will woo foreign investors. But critics say under his rule the economy shows no signs of improving while security forces have continued to crush dissent.</p>



<p>Reporting by MacDonald Dzirutwe; Editing by Andrew Cawthorne </p>


What you need to know about Zimbabwe and EU’s political talks to ease tensions created in Mugabe-era

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<p>As the economy of Zimbabwe struggles its President Emmerson Mnangagwa met this week with a group of entrepreneurs at State House in Harare to discuss a possible way out of the crisis. For more on the outcome of the meeting CNBC Africa is joined by an Entrepreneur Chad Chawanda, CEO of Size Chunk.</p>


Zimbabwe’s Mnangagwa meets business  leaders over economic crisis

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<p>Zimbabwe celebrated 39th Independence Day today, amid economic crises with President Emmerson Mnangagwa delivering the key note speech at the main celebrations at the national sports stadium. Joining CNBC Africa for a conversation is Tafadzwa Muguti, Zanu PF Director for Economic Affairs.</p>


Zimbabwe turns 39, govt vows to solve economic problems

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<p>Zimbabwe&#8217;s Ambassador in South Africa David Hamadziripi has applauded the diaspora business community for their role in contributing to the development of South Africa’s economy, and also urged them to consider investing back in their home country. For more CNBC Africa’s Daniel Sango caught up with the Ambassador at the Zimbabwe Achievers Awards ceremony held in Johannesburg.</p>


Zimbabwe Ambassador lauds diaspora’s contribution to SA’s economy, urges them to invest back home


<p>HARARE (Reuters) &#8211; Zimbabwe expects to raise $350 million from selling shares in five state-owned telecommunications companies and a bank, as part of economic reforms being pursued by the government, Finance Minister Mthuli Ncube said in a statement.</p>



<p>The southern African nation’s economy is experiencing a severe dollar crunch and faces more headwinds from a drought this year that has wilted crops and left up to 5.3 million people in need of food aid, according to a U.N. humanitarian agency.</p>



<p>Ncube said on Tuesday the government would dispose of shares in its two mobile phone operators NetOne and Telecel Zimbabwe, the country’s sole fixed line telephony company TelOne, postal services Zimpost and state-owned savings bank POSB.</p>



<p>“Work is already under way to identify transaction advisers. Government projects to realise over $350 million from this initial process,” Ncube said in a statement, without giving a timeline.</p>



<p>Ncube was not immediately available to comment but he said in October selling state firms, known locally as parastatals, was one of the ways to reduce government spending.</p>



<p>The government has targeted selling some or all shares in 43 of its companies, most of them loss-making and which have relied on state bailouts over the years.</p>



<p>Rebuilding the troubled economy is the biggest challenge to President Emmerson Mnangagwa, who was re-elected in a disputed vote last July and is seeking to pivot away from some of the disastrous policies of his predecessor Robert Mugabe.</p>



<p>Reporting by MacDonald Dzirutwe; Editing by Alison Williams<br></p>


Here’s how Zimbabwe plans to raise $350 million

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<p>South African President Cyril Ramaphosa has again called for the lifting of sanctions against Zimbabwe. This is after United States extended sanctions by one year saying they will only be lifted, if Harare has implemented certain reforms. Joining CNBC Africa’s Karabo Letlhatlha to speak on the sanctions, legitimacy issue, elective congress and the current economic challenges facing Zimbabwe is MDC Leader Nelson Chamisa.</p>


MDC’s Nelson Chamisa speaks out on Zimbabwe sanctions, dialogue and elective congress

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<p>There has been a huge call for Zimbabwe to engage in a national dialogue to resolve the country’s economic crisis. The country’s reserve bank governor recently introduced a new currency known as Real Time Gross Transfer dollars or ‘RTGS dollars’ as a measure to address its currency problem.  For more on the dialogue issue, the newly introduced currency, and role South Africa and SADC should play in resolving Zim crisis; CNBC Africa spoke to Former Zimbabwe Deputy Prime Minister Professor Arthur Mutambara.</p>


Zimbabwe needs bold reforms, productivity not a new currency – Arthur Mutambara

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<p>Zimbabwe has been struggling with a knock to the price of food and other goods as inflation has increased massively. For more on the impact of the dire situation In Zimbabwe CNBC Africa’s Fifi Peters spoke to people on the ground who have been affected the most by the economic crisis.</p>


How Zimbabweans are surviving exorbitant food prices

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<p>Former Zimbabwe Deputy Prime Minister Professor Arthur Mutambara says Zimbabweans need to put their differences aside, and engage in a genuine national dialogue to resolve the country&#8217;s worsening economic crisis. For more on the dialogue process and the newly introduced local currency Professor Mutambara spoke to CNBC Africa’s Daniel Sango.</p>


Ex-Zimbabwe Deputy PM Mutambara lambasts Mnangangwa dialogue, calls for genuine talks to resolve crisis

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<p>Former President of Zimbabwe Robert Mugabe is 95th today. With his homeland in economic and social turmoil they may be little to celebrate.</p>


Former President of Zimbabwe Robert Mugabe turns 95 today

<span><a href="https://theconversation.com/profiles/roger-southall-296862">By Roger Southall</a>, <em><a href="http://theconversation.com/institutions/university-of-the-witwatersrand-894">University of the Witwatersrand</a></em></span>

<p>Cries of moral outrage have greeted the <a href="https://theconversation.com/what-needs-to-be-done-to-stop-zimbabwes-violent-meltdown-110193">brutal crackdown</a> by the Zimbabwean security forces on nationwide protests sparked by a sudden, massive, government-ordained <a href="https://ewn.co.za/2019/01/13/anger-as-mnangagwa-raises-fuel-prices-in-zimbabwe">hike in the price of fuel</a>. Naturally enough, the demand is that “something must be done” to stop the brutality. Twelve people have <a href="https://worldjusticenews.com/news/2019/01/20/twelve-dead-as-zimbabwe-crackdown-continues/">already died</a>, hundreds have been injured and there have been <a href="https://www.zimbabwesituation.com/news/zimbabwe-crackdown-children-shackled-and-caged-in-security-round-up/?PageSpeed=noscript">mass round ups</a>. </p>

<p>In South Africa, demands that President Cyril Ramaphosa’s government should take <a href="https://www.news24.com/Columnists/GuestColumn/why-south-africa-must-intervene-in-zimbabwe-20190124">firm action</a> are fuelled by two factors. The presence of a large Zimbabwean <a href="https://www.news24.com/SouthAfrica/News/millions-of-zimbabweans-living-in-sa-must-help-resolve-conflict-back-home-anc-20190122">migrant community</a> within the country is one. The second is a widespread sense that Pretoria’s policy towards its errant neighbour has always been one of light wrist-tapping rather than a vigorous twisting of arms. </p>

<p>Inter-liberation movement solidarity is widely said to have strangled serious South African criticisms of Zimbabwean governments. This “quiet diplomacy” has been <a href="https://www.timeslive.co.za/politics/2017-11-15-south-africas-quiet-diplomacy-towards-zimbabwe-must-end-maimane/">regularly dismissed</a> as a strategy of doing nothing. If South Africa got serious, say the critics, President Emmerson Mnangagwa’s regime would have to comply with its demands. Democracy in Zimbabwe could be given a real chance.  </p>

<p>Many South Africans are concerned by the position Ramaphosa has taken towards the present crisis. South Africa is <a href="https://www.reuters.com/article/us-zimbabwe-politics-safrica/south-africa-turned-down-zimbabwe-request-for-12-billion-loan-in-december-idUSKCN1PF0IG">reported</a> to have turned down a request from Zimbabwe for a loan of US$1.2 billion to ease its desperate foreign currency shortage. Yet Ramaphosa was vocal at the recent meeting of global leaders at the World Economic Forum in Davos in calling for <a href="https://www.news24.com/Africa/Zimbabwe/ramaphosa-says-lift-zimbabwe-sanction-20190122">an end to sanctions</a>. He argued that these were damaging Zimbabwe’s prospects of economic recovery. </p>

<p>Ramaphosa’s call for an end to sanctions clearly reflects his government’s view that it cannot afford a collapse of the Zimbabwean economy. Zimbabwe remains a <a href="http://www.engineeringnews.co.za/article/early-days-but-some-sa-firms-responding-to-zimbabwes-open-for-business-pledge-2018-03-23">site</a> for South African investment and a <a href="https://tradingeconomics.com/south-africa/exports/zimbabwe">significant market</a> for South African goods. This is despite the huge difficulties South African firms have in getting profits out of Zimbabwe .</p>

<p>Meanwhile, best estimates suggest that South Africa already hosts up to <a href="https://africacheck.org/reports/how-many-zimbabweans-live-in-south-africa-the-numbers-are-unreliable/">two million Zimbabweans</a>, though the exact number isn’t known. Any further decline of an already shattered Zimbabwean economy could send many more Zimbabwean migrants across the border, adding to the already <a href="https://tradingeconomics.com/south-africa/unemployment-rate">huge pool of unemployed</a> in South Africa. </p>

<p>There are thus very real reasons for the South African position, even if the motivation is self-interested. Yet would it help the cause of Zimbabwean democracy and human rights if the European Union and US were to now bring “sanctions” to an end? </p>

<p>In reality, the answer is extraordinarily complicated.</p>

<h2>The thorny subject of sanctions</h2>

<p>Successive Zimbabwean governments have long been dismissive of efforts from outside the country to effect political change. President Robert Mugabe <a href="https://mg.co.za/article/2008-07-16-mugabe-lashes-out-at-uk-as-inflation-soars">routinely insisted </a>that sanctions and other policies designed to isolate Zimbabwe were intended to bring about “regime change”. </p>

<p>These interventions included the round of sanctions first <a href="https://www.theguardian.com/world/2002/feb/18/zimbabwe">imposed by the European Union in 2002</a> and <a href="https://www.congress.gov/107/plaws/publ99/PLAW-107publ99.pdf">the passage</a> by the US government of the Zimbabwe Democracy and Economic Recovery Act in 2001. The act encouraged the president to implement travel bans and financial restrictions against people conducting political violence.</p>

<p>The Zimbabwean African National Union-Patriotic Front (ZANU-PF) has equally consistently claimed that the collapse of the Zimbabwean economy is a result of the imposition of sanctions. Recently Mnangagwa <a href="https://www.news24.com/Africa/Zimbabwe/remove-illegal-sanctions-against-zimbabwe-mnangagwa-pleads-with-the-west-20180929">claimed</a> that the sanctions, which are still in place, are “illegal”.</p>

<p>Setting aside the Zimbabwe government’s reaction – which is to be expected – do sanctions work, which ones work and what conditions are necessary to make them work? </p>

<p>There is enormous controversy, politically and academically, around the issues. Furthermore, what impact do sanctions have, how do you measure this, and does impact measure up to the objectives notionally to be achieved? </p>

<p>In the Zimbabwean case, the US and EU insist that the measures they have taken are “targeted sanctions”. These are designed to hurt individuals identified as members of the repressive ZANU-PF regime rather than the ordinary people of Zimbabwe. For instance, the US Zimbabwe law led <a href="https://www.voanews.com/a/us-reforms-first-then-removal-of-zimbabwe-sanctions/4572810.html">to the imposition of travel bans</a> and financial restrictions on members of the ZANU-PF regime. </p>

<p>Yet reliable data on how effective such measures have been is lacking. Critics would argue that the present crackdown on protests demonstrates their manifest failure. There may well be a case for arguing that the imposition of targeted sanctions by both the US and EU are designed to demonstrate to domestic audiences that “they are doing something” as much as to bring about improved governance. </p>

<p>Yet does this mean they should be abandoned?</p>

<h2>The case for keeping up the pressure</h2>

<p>Immediate cancellation of such sanctions would clearly send out an extraordinarily dispiriting message to Zimbabweans who are on the receiving end of regime violence. </p>

<p>There is also a message here for the Ramaphosa government, and for other member governments of the southern African region.</p>

<p>By all means keep the borders with Zimbabwe open, the traffic flowing, and economic exchanges continuing. At the same time, there’s an urgent need to get serious with the Mnangagwa government. The time for diplomatic niceties is long past. South Africa needs to make life as uncomfortable as possible for members of the regime by adopting practical and measurable strategies: stop their travel to and through South Africa, freeze their bank accounts, stop them sending their children to private schools and South Africa’s top universities. </p>

<p>It may well be that if South Africa is to effect change for the better in Zimbabwe its diplomacy must remain “quiet”. If so, it must also be tough.<img loading="lazy" decoding="async" src="https://counter.theconversation.com/content/110578/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important; text-shadow: none !important" /></p>

<p><span><a href="https://theconversation.com/profiles/roger-southall-296862">Roger Southall</a>, Professor of Sociology, <em><a href="http://theconversation.com/institutions/university-of-the-witwatersrand-894">University of the Witwatersrand</a></em></span></p>

<p>This article is republished from <a href="http://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/south-african-diplomacy-on-zimbabwe-can-remain-quiet-but-it-must-get-tough-110578">original article</a>.</p>

Op-Ed: What SA should do about Zimbabwe’s crisis

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<p>Public sector workers in Zimbabwe have rejected a second offer to raise their salaries, anti-government protests have seen the death of over 10 people and hundreds of citizens have been detained over public order charges. Social media access has also been cut off during this time. Joining CNBC Africa for more is Professor Anthoni van Nieuwkerk, Political Science Expert.</p>


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