<div style="display: block; position: relative; max-width: 730px;">
<div style="padding-top: 56.25%;"><iframe style="width: 100%; height: 100%; position: absolute; top: 0px; bottom: 0px; right: 0px; left: 0px;" src="//players.brightcove.net/1571595826001/default_default/index.html?videoId=6027631800001" frameborder="0" allowfullscreen="allowfullscreen"></iframe></div>
</div>
<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

<div style="display: block; position: relative; max-width: 730px;">
<div style="padding-top: 56.25%;"><iframe style="width: 100%; height: 100%; position: absolute; top: 0px; bottom: 0px; right: 0px; left: 0px;" src="//players.brightcove.net/1571595826001/default_default/index.html?videoId=6025079444001" allowfullscreen="" border="0" frameborder="0"></iframe></div>
</div>
<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

<div style="display: block; position: relative; max-width: 730px;">
<div style="padding-top: 56.25%;"><iframe style="width: 100%; height: 100%; position: absolute; top: 0px; bottom: 0px; right: 0px; left: 0px;" src="//players.brightcove.net/1571595826001/default_default/index.html?videoId=6013365757001" allowfullscreen="" border=0 frameborder=0></iframe></div>
</div>
<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

<div style="display: block; position: relative; max-width: 730px;">
<div style="padding-top: 56.25%;"><iframe style="width: 100%; height: 100%; position: absolute; top: 0px; bottom: 0px; right: 0px; left: 0px;" src="//players.brightcove.net/1571595826001/default_default/index.html?videoId=6008796475001" allowfullscreen="" border=0 frameborder=0></iframe></div>
</div>
<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

<div style="display: block; position: relative; max-width: 730px;">
<div style="padding-top: 56.25%;"><iframe style="width: 100%; height: 100%; position: absolute; top: 0px; bottom: 0px; right: 0px; left: 0px;" src="//players.brightcove.net/1571595826001/default_default/index.html?videoId=6008288744001" allowfullscreen="" border=0 frameborder=0></iframe></div>
</div>
<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

<div style="display: block; position: relative; max-width: 730px;">
<div style="padding-top: 56.25%;"><iframe style="width: 100%; height: 100%; position: absolute; top: 0px; bottom: 0px; right: 0px; left: 0px;" src="//players.brightcove.net/1571595826001/default_default/index.html?videoId=6007087305001" allowfullscreen="" border=0 frameborder=0></iframe></div>
</div>
<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

<div style="display: block; position: relative; max-width: 730px;">
<div style="padding-top: 56.25%;"><iframe style="width: 100%; height: 100%; position: absolute; top: 0px; bottom: 0px; right: 0px; left: 0px;" src="//players.brightcove.net/1571595826001/default_default/index.html?videoId=6005125627001" allowfullscreen="" border=0 frameborder=0></iframe></div>
</div>
<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

<div style="display: block; position: relative; max-width: 730px;">
<div style="padding-top: 56.25%;"><iframe style="width: 100%; height: 100%; position: absolute; top: 0px; bottom: 0px; right: 0px; left: 0px;" src="//players.brightcove.net/1571595826001/default_default/index.html?videoId=5992002668001" allowfullscreen="" border=0 frameborder=0></iframe></div>
</div>
<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>


Anthoni van Nieuwkerk: #Mnangagwa is another version of Mugabe

<div style="display: block; position: relative; max-width: 730px;">
<div style="padding-top: 56.25%;"><iframe style="width: 100%; height: 100%; position: absolute; top: 0px; bottom: 0px; right: 0px; left: 0px;" src="//players.brightcove.net/1571595826001/default_default/index.html?videoId=5991872750001" allowfullscreen="" border=0 frameborder=0></iframe></div>
</div>
<p>Public sector workers in Zimbabwe have rejected a second offer to raise their salaries. Workers&#8217; demands to be paid in US dollars has again been rejected by the government. In the past week anti-government protests have seen the death of over 10 people and hundreds of citizens detained over public order charges. Social media access has also been cut off during this time. The United Nations has called for an end to the security crackdown and internet blackout. Meanwhile President Emmerson Mnangagwa has cancelled his trip to the lavish resort town of Davos after coming under fire due to the dire economy which has been afflicted by a shortage of dollar bills and resulted in fuel and medicine shortages. John Robertson, Independent Economic Consultant in Zimbabwe joins CNBC Africa for more.</p>


Top economist on why no one wants to bailout #Zimbabwe

<div style="display: block; position: relative; max-width: 730px;">
<div style="padding-top: 56.25%;"><iframe style="width: 100%; height: 100%; position: absolute; top: 0px; bottom: 0px; right: 0px; left: 0px;" src="//players.brightcove.net/1571595826001/default_default/index.html?videoId=5981535199001" allowfullscreen="" border=0 frameborder=0></iframe></div>
</div>
<p>On Tuesday afternoon Former South African president Kgalema Motlanthe released his commission report about Zimbabwe’s post-election violence. The report suggested that the police and military were the culprits of the chaos that had occurred but Advocate Chadya Tapiwa Diamond believes that the inquiry’s finding was just a waste of tax payer’s money. He joins CNBC Africa to explain why.</p>


Motlanthe Commission report on Zimbabwe’s post-election killings labelled ‘white wash’

<div style="display: block; position: relative; max-width: 730px;">
<div style="padding-top: 56.25%;"><iframe style="width: 100%; height: 100%; position: absolute; top: 0px; bottom: 0px; right: 0px; left: 0px;" src="//players.brightcove.net/1571595826001/default_default/index.html?videoId=5973162538001" allowfullscreen="" border=0 frameborder=0></iframe></div>
</div>
<p>Zimbabwe government recently introduced a number of austerity measures as to boost the ailing economy, some of these aimed at attracting foreign investors into the country; but still many investors remain wary. Joining CNBC Africa to speak more on the current investment climate in Zimbabwe is Tafadzwa E. Muguti, Zanu PF Director, Investment and Economic Transformation.</p>


Zimbabwe all out to lure investors

<div style="display: block; position: relative; max-width: 730px;">
<div style="padding-top: 56.25%;"><iframe style="width: 100%; height: 100%; position: absolute; top: 0px; bottom: 0px; right: 0px; left: 0px;" src="//players.brightcove.net/1571595826001/default_default/index.html?videoId=5970371330001" allowfullscreen="" border=0 frameborder=0></iframe></div>
</div>
<p>Zimbabwe marks one year after the removal of Robert Mugabe from power, for a discussion on the changes that have happened so far CNBC Africa is joined by Trust Ndlovu, Chairperson for MDC Alliance South Africa.</p>


Zimbabwe economy is worse off one year after Mugabe left office – MDC Alliance SA

<p><a href="https://theconversation.com/profiles/robert-rotberg-171817">By Robert Rotberg</a>, <em><a href="http://theconversation.com/institutions/harvard-university-1306">Harvard University</a></em></p>
<p>When President Emmerson Mnangagwa <a href="https://theconversation.com/zimbabwes-first-mugabe-free-election-mnangagwa-promises-western-cash-but-little-else-99228">campaigned</a> in July for Zimbabwe’s presidency, he promised to be a business friendly leader, and to return his country’s economy to twentieth century times of plenty and prosperity.</p>
<p>But Mnangagwa has already shown himself incapable of jettisoning the state centrist, rent-seeking predilections of his predecessor. A “big-bang” sharp break with Zimbabwe’s recent past is essential to reassure consumers and capitalists. Yet Mnangagwa and his cronies have so far rejected anything forward-looking and sensible.</p>
<p>Mnangagwa’s administration is struggling to overcome the national <a href="https://www.iol.co.za/news/africa/shops-shut-doors-as-zimbabwe-financial-crisis-deepens-17414862">economic destruction</a> wreaked on Zimbabwe over two decades under Robert Mugabe. This included profligate spending, immense debt pileup, colossal corruption, and ravaging of the country’s once immensely productive agricultural sector.</p>
<p>As a result, Zimbabwe now lacks foreign exchange with which to buy petrol and ordinary goods to stock the shelves of its supermarkets. In the last few weeks many shops – such as Edgars, a long-time clothing store; Teta, an eatery; KFC, a fast food outlet – have simply <a href="https://www.iol.co.za/news/africa/shops-shut-doors-as-zimbabwe-financial-crisis-deepens-17414862">shut their doors</a>. Queues for petrol stretch for miles.</p>
<p><a href="http://nehandaradio.com/2018/10/13/zimbabwe-currency-crisis-no-cash-no-bread-no-kfc/">Banks have no US dollars</a>, or South African rands or Botswana pulas (the notional national currency), and therefore cannot supply stores or customers with the funds to carry on business as usual.</p>
<p>The locally created <a href="https://zwnews.com/latest-us-dollar-zimbabwe-bond-note-trgs-exchange-rates-today-9-october-2018/">Zimbabwe bond note</a> which is officially supposed to trade 1 to 1 with the US dollar, has been trading as high as 10 to 1 on the Harare black market according to unconfirmed local shopping experiences. In its October 20th edition The Economist reported that the bond note, known unofficial as <a href="https://www.news24.com/Africa/Zimbabwe/zimbabwes-bond-notes-being-traded-outside-borders-report-20170516">the zollar</a>, was trading for as little as 17 cents, or roughly 6-1.</p>
<p>The new administration has naturally resorted to <a href="https://www.iol.co.za/business-report/international/zimbabwes-currency-crisis-shows-little-sign-of-abating-17052960">printing</a> its own faux money. That inevitably has led, as always, to hyperinflation and monetary collapse.</p>
<p>China may yet help Mnangagwa – but in exchange for multi-years worth of precious minerals and Virginia tobacco at discounted prices. With Zimbabwe’s leadership so thoroughly tainted by decades of peculation and mendacity, and devoid of any real notion of “the public interest,” Mnangagwa’s regime is otherwise unlikely to clean up the prevailing fiscal mess because of its refusal to break sharply with the fiscal derring-do of the Mugabe era. Its principals continue to profit from Zimbabwe’s economic mayhem.</p>
<h2>What went wrong</h2>
<p>Zimbabwe’s economic weaknesses are unsustainable. Governments in such parlous straits would turn, even now, to the International Monetary Fund, for a bailout – as <a href="https://www.scmp.com/news/asia/south-asia/article/2168507/pakistans-khan-slams-imf-then-seeks-bailout-why-change">Pakistan</a> has just done. But Zimbabwe is already in arrears to the international lending institutions and has very few helpful friends left.</p>
<p>Government is running a hefty overdraft. And it’s been unable to collect as much as it needs from the national tax base. Its now attempting to impose a <a href="https://www.fin24.com/Economy/Africa/zimbabwe-slaps-catastrophic-tax-on-electronic-transactions-20181001">2% tax </a> on internal electronic financial transactions. This only shows desperation. If implemented, it could yield twice as much revenue as is derived annually from VAT. But that losing manoeuvre has already helped drive commerce underground. It has also undermined what little confidence consumers and financiers have in their current rulers.</p>
<p>The Mnangagwa government has also reimposed import and <a href="http://businessdaily.co.zw/index-id-national-zk-38015.html">exchange controls</a>, thus creating additional incentives to avoid regular channels of commerce. Those controls also permit officials to allocate “scarce” resources and licenses to import, export, and so on. These are well-known occasions for corruption and for giving rent-seeking opportunities to cronies.</p>
<p>It wasn’t always this bad. Despite the massive loss of formal employment that occurred under Mugabe, the informal sector flourished and Zimbabwe’s poor probably benefited. This was partly because under the unity government of 2009-2013, when Tendai Biti of the Movement for Democratic Change was finance minister, there were no such controls and there were plenty of US dollars and no questionable bond notes and Treasury bills. Hard currency (the US dollar) permitted Zimbabwe to start growing economically after the long Mugabe slide, and individuals and businesses to prosper. The country ran a budgetary surplus.</p>
<p>But this all came to an end when the government of national unity <a href="https://pindula.co.zw/Government_of_National_Unity">collapsed</a> in 2012.</p>
<h2>What needs to happen</h2>
<p>To begin to restore the economy, the government needs to acknowledge corrupt dealings and repatriate the huge amounts of cash that have fled the country as laundered money.</p>
<p>The regime could also try to take <a href="https://www.theguardian.com/world/2017/nov/17/robert-grace-mugabe-missing-millions-money-zimababwe">ill-gotten gains</a> away from Mugabe and Grace Mugabe, as <a href="https://www.csmonitor.com/World/Asia-Pacific/2018/0703/Former-Malaysian-leader-arrested-for-theft-money-laundering">Malaysia’s new government</a> is doing to its previous kleptocratic prime minister and his wife.</p>
<p>Gestures in that direction would help to begin to restore confidence, a step towards eventual prosperity. So would promises to restore the rule of law. Investors might also return if a sound currency was likely. But that would only follow shedding of ministers, civil service layoffs, military reductions, and many other indications that Mnangagwa and his minister of finance were serious about reducing the debt hangover.</p>
<p>Cutting some sort of deal with the IMF would also be worthwhile, but that could mean giving control over the Treasury to foreign advisors. Zimbabwe is and, since Biti’s day, has been, a basket case. It’s time to acknowledge that fiscal reality and to do something about it.<img loading="lazy" decoding="async" 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;" src="https://counter.theconversation.com/content/104960/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /></p>
<p><a href="https://theconversation.com/profiles/robert-rotberg-171817">Robert Rotberg</a>, Founding Director of Program on Intrastate Conflict, Kennedy School, <em><a href="http://theconversation.com/institutions/harvard-university-1306">Harvard University</a></em></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/zimbabwes-economy-is-collapsing-why-mnangagwa-doesnt-have-the-answers-104960">original article</a>.</p>

Why Mnangagwa doesn’t have the answers to Zimbabwe’s troubled economy

<p>HARARE (Reuters) &#8211; Zimbabwean opposition lawmakers walked out of President Emmerson Mnangagwa’s state of the nation address to parliament on Tuesday, signalling their lingering bitterness after losing a disputed July 30 presidential and parliamentary election.</p>
<p>Members of Parliament from the Movement for Democratic Change (MDC) that is led by Nelson Chamisa heckled Mnangagwa when he started reading his speech before filing out.</p>
<p>Chamisa &#8211; who is not a member of parliament and lost a court challenge to Mnangagwa’s win last month &#8211; maintains that he was cheated of victory by the electoral board and says the 76-year-old president lack legitimacy.</p>
<p>After leaving parliament, the MDC lawmakers broke into song denouncing the ruling ZANU-PF party. “As the MDC we cannot sit there and be addressed by a person who does not even respect the rule of law,” MDC national chairperson Tabitha Khumalo told Reuters.</p>
<p>ZANU-PF’s chief whip in parliament Pupurai Togarepi described the lawmakers’ conduct as unfortunate, adding: “We hope that over time they will come to their senses, it’s not about grandstanding but building the country together.”</p>
<p>Mnangagwa, who has previously called for unity among political parties to help rebuild the shattered economy, said the elections were now in the past.</p>
<p>“The election period is decisively behind us. It is now time for us as members of parliament and political leaders to exert our efforts towards delivering promises we made to the electorate,” Mnangagwa said in his speech.</p>
<p>The president promised to bring a series of bills to parliament, including on giving more power to Zimbabwe’s 10 regions, revamping the process of registering companies and creating a one-stop investment agency.</p>
<p>A mining amendment bill passed by parliament in June, which removed clauses requiring foreign mines to list their shares on the local stock market, would be brought back to the assembly to fix “inadequacies” and provide for online registration of mining rights and titles.</p>
<p>Mnangagwa, who came to power in November after Robert Mugabe was removed in a coup, faces the huge task of ending Zimbabwe’s international pariah status and fixing an economy afflicted by high unemployment and foreign currency shortages.</p>
<p>He told lawmakers that his government had negotiated $500 million in foreign credit facilities, some of which would be disbursed to companies this week.</p>
<p>Mnangagwa, however, said the country would not immediately re-introduce its own currency that was dumped in 2009 after it was made worthless by hyperinflation of 500 billion percent.</p>
<p>Editing by James Macharia and David Stamp</p>


Here’s why Zimbabwean opposition lawmakers walked out of President Mnangagwa’s #SONA

<p>By <a href="https://www.brookings.edu/experts/landry-signe/">Professor Landry Signé</a>, David M. Rubenstein Fellow in the Global Economy and Development Program and Africa Growth Initiative at the Brookings Institution and <a href="https://www.brookings.edu/author/chido-munyati/">Chido Munyati</a>, Global Leadership Fellow, World Economic Forum.</p>
<p>&nbsp;</p>
<p>This July, Zimbabwe held its first post-Robert Mugabe era presidential election, nearly four decades after his accession to power. The ruling ZANU-PF party won the 69 percent of the 210 seats in parliament after winning rural voters by large margins. In the presidential vote, Emmerson Mnangagwa, the ZANU-PF party candidate and the incumbent president, emerged victorious from a 23-candidate field, winning 50.8 percent of the vote. The main opposition, the MDC Alliance, challenged the election results, and today the constitutional court upheld the outcome.</p>
<p>Free, fair, and credible elections are preconditions for sustainable peace and democratic development, as well as for attracting new investment and other support from international financial institutions and foreign governments. While most election observers have acknowledged improvements in this election, they have not considered them sufficient. They highlighted “inclusive participation rights and a peaceful vote” but also noted a “lack of trust in the process.” Two U.S. based groups, the International Republican Institute and the National Democratic Institute, highlighted “numerous incidents of food and agricultural assistance and extreme media bias” in favor of President Mnangagwa. The Southern African Development Community largely considered the election successful, noting that people had the “opportunity to exercise their constitutional right.”</p>
<p>Support for democracy is strong in Zimbabwe. According to the latest Afrobarometer Survey, 75.2 percent of people “prefer democracy” and an additional 4.7 percent “sometimes prefer democracy.” Additionally, 78.5 percent of citizens think that they should choose leaders in their country through regular, open, and honest elections. Finally, 67.8 percent of people believe that the constitution should limit the president to serving a maximum of two terms in office.</p>
<p>Zimbabwe seems to be regaining the trust of international investors and foreign governments. The country has attracted an estimated $16 billion in investments since Emmerson Mnangagwa took over in November 2017. Development partners are also collaborating again. The Indian government will provide a $310 million soft loan for the rehabilitation of the Hwange Thermal Power station and the CDC and Standard Chartered will provide $100 million in lending to new businesses.</p>
<p>Despite these advancements, there is still a lot to do to bring the country back to sustainable development:</p>
<p>IMPROVE GOVERNANCE TO REPEAL INTERNATIONAL ECONOMIC SANCTIONS, ADDRESS INTERNATIONAL DEBT, AND DELIVER BETTER PUBLIC SERVICES<br />
Recently, the U.S. government renewed the Zimbabwe Democracy and Economic Recovery Act (ZIDERA), which requires that the country make credible progress towards holding free and fair elections, restore the rule of law, and ensure military subordination to the civilian government. The Government of Zimbabwe needs to increase accountability and accountable governance, and convince the U.S. government to repeal ZIDERA. With the sanctions bill in place, Zimbabwe cannot access loans or guarantees from international financial institutions without the approval of the U.S. government.</p>
<p>The renewed legislation also requires that U.S. representatives at multilateral organizations not support any efforts to address Zimbabwe’s debt situation. As of February 2018, Zimbabwe still had debts of $1.15 billion at the World Bank, $601 million to the African Development Bank, and $3 billion to Paris Club countries.</p>
<p>The government needs to re-engage diplomatically to get the sanctions lifted as they restrict business, its ability to borrow from international organizations, and resolve its debt situation. Zimbabwean officials continue to look to engage U.S. officials with the Foreign Affairs and International Trade Minister, Dr. Sibusiso Moyo, telling reporters that “we are determined to continue in the re-engagement with the U.S. administration, as we together seek to restore our bilateral relations to normalcy.” In order to regain access to international capital markets Zimbabwe must repay its debt arrears to major foreign lenders.</p>
<p>Other necessary reforms include repealing the chilling media laws—including the Access to Information and Protection of Privacy Act (AIPPA) and the Public Order and Security Act (POSA)—which restrict the media environment and promotes self-censorship. Additionally, the government must align current laws with the constitution.</p>
<p>IMPROVING THE MACROECONOMIC CONTEXT AND POLICY DELIVERY</p>
<p>Resolve the chronic cash shortage in the short-term, and create its own currency in the long-term<br />
Addressing the cash shortages must be a priority for the government. Zimbabwe desperately needs an influx of foreign cash to resolve the currency crises and spur economic growth. The country has not had a currency of its own since it dollarized in 2009 because of hyperinflation.</p>
<p>In the long term, Zimbabwe needs to have its own currency. In 2016, the Reserve Bank introduced “bond notes”, a substitute currency that locally has the same value as the U.S. dollar. Bond notes were meant to alleviate the shortage of U.S. dollars in the system—this, however, had the opposite effect by further increasing the demand for U.S. dollar.</p>
<p>Implement economic and civil reforms domestically<br />
As highlighted earlier, President Mnangagwa has attracted significant new investment to Zimbabwe since last year. However, the country continues to face chronic cash shortages that are holding back economic growth. In recent months, businesses raised prices as they struggled to find U.S. dollars to conduct business.</p>
<p>Beyond reforms, President Mnangagwa can send positive signals to foreign lenders and investors by tackling corruption, and appointing reputable and accountable technocrats to manage the economy. Indeed, the window of opportunity has narrowed considerably since the post-election violence that followed a peaceful vote. President Mnangagwa said there would be an independent investigation into the post-election violence. Some hope and goodwill remains; however, actions taken in the next few months will determine whether Zimbabwe is breaking with the past.</p>
<p>By <a href="https://www.brookings.edu/experts/landry-signe/">Professor Landry Signé</a>, David M. Rubenstein Fellow in the Global Economy and Development Program and Africa Growth Initiative at the Brookings Institution, distinguished fellow at Stanford University’s Center for African Studies, World Economic Forum Young Global Leader, and author of “Innovating Development Strategies in Africa: The Role of International, Regional and National Actors,</p>
<p>and <a href="https://www.brookings.edu/author/chido-munyati/">Chido Munyati</a>, Global Leadership Fellow, World Economic Forum.</p>


ZANU PF

Zimbabwe turns 39, govt vows to solve economic problems

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

Here’s how Zimbabwe plans to raise $350 million

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

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

How Zimbabweans are surviving exorbitant food prices

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

Former President of Zimbabwe Robert Mugabe turns 95 today

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

Anthoni van Nieuwkerk: #Mnangagwa is another version of Mugabe

Top economist on why no one wants to bailout #Zimbabwe

Motlanthe Commission report on Zimbabwe’s post-election killings labelled ‘white wash’

Zimbabwe all out to lure investors

Zimbabwe economy is worse off one year after Mugabe left office – MDC Alliance SA

Why Mnangagwa doesn’t have the answers to Zimbabwe’s troubled economy

Here’s why Zimbabwean opposition lawmakers walked out of President Mnangagwa’s #SONA

OpEd: Is Zimbabwe regaining the trust of international investors?

News Tips

Advertise With Us

ZANU PF

Zimbabwe turns 39, govt vows to solve economic problems

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

Here’s how Zimbabwe plans to raise $350 million

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

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

How Zimbabweans are surviving exorbitant food prices

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

Former President of Zimbabwe Robert Mugabe turns 95 today

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

Anthoni van Nieuwkerk: #Mnangagwa is another version of Mugabe

Top economist on why no one wants to bailout #Zimbabwe

Motlanthe Commission report on Zimbabwe’s post-election killings labelled ‘white wash’

Zimbabwe all out to lure investors

Zimbabwe economy is worse off one year after Mugabe left office – MDC Alliance SA

Why Mnangagwa doesn’t have the answers to Zimbabwe’s troubled economy

Here’s why Zimbabwean opposition lawmakers walked out of President Mnangagwa’s #SONA

OpEd: Is Zimbabwe regaining the trust of international investors?

News Tips

Advertise With Us

Newsletters