Monthly Government Monitor, Issue 1, September, 2019
Mnangagwameter
Monthly Government Monitor
Issue 1
September, 2019
About Mnangagwameter
Mnangagwameter is a “web-based non-partisan collaborative citizen initiative”that tracks President Emmerson Mnangagwa’s performance on promises he has made since coming into office on the 24th of November 2017.
This monthly monitor is not about the performance of GoZ in its totality.
The Government Monitor is compiled by our research team from open source Zimbabwean media
1. Governance
1.1 Bills & Statutes
“….for a country is considered the more civilised the more the wisdom and efficiency of its laws hinder a weak man from becoming too weak or a powerful one too powerful” - Primo Levi
A backlog of bills has built up over the last year, and all business left unfinished at the end of the September, 2019 session will lapse. Standing Orders, however, provide for restoration of lapsed business.
1. Educational Amendment Bill - This was the only Bill before the Senate. On Wednesday 4th September, 2019 Senators promptly approved the Second Reading of the Bill with an amendment to remove the words “Sexual and” for cultural reasons
2. Money Laundering and Proceeds of Crime Amendment Bill - The Minister of Justice, Legal and Parliamentary Affairs delivered Second Reading speech on 3rd September, before debate was adjourned to allow the Portfolio Committee on Budget, Finance and Economic Development to report on the public hearings on the Bill scheduled for 9th to 12th September, 2019
3. Zimbabwe Investment and Development Agency Bill - Continuation of the Committee Stage of this Bill featured on the Order Paper but no progress was made.
4. Coroner's Office Bill - The continuation of the Second Reading debate on this Bill was not tackled.
5. Measures to Outlaw Use of Forex in Zimbabwe
On Friday 27th September, 2019 two closely-linked statutory instruments made by the President were published, effective immediately:
- SI 213/2019 – Presidential Powers (Temporary Measures) (Amendment of Exchange Control Act) Regulations, 2019
- SI 212/2019 – Exchange Control (Exclusive Use of Zimbabwe Dollar for Domestic Transactions) Regulations, 2019
More Information
- https://www.veritaszim.net/node/3712
1.2 Corruption-Free Environment
The real litmus test for an anti-corruption war is securing convictions of accused persons, especially "high profile" persons.
ZINARA Progress
The suspended CEO and Finance Director have been fired for gross incompetence and abuse of office. 24 other ZINARA employees have been arrested on corruption charges. Lifestyle audit into the lives of some senior ZINARA managers is currently under way.
ZACC Progress
The Commission is now moving from being a toothless dog to a dog with plenty of teeth.
1. ZACC unearth corruption in nurse recruitment - it discovered that nurse training vacancies are allocated to relatives. Investigations are continuing.
2. ZACC starts cleansing councils of corrupt officials - ZACC has set sights on cleansing local authorities of corrupt officials, with Chitungwiza, Harare and Victoria Falls topping the investigations list.
3. ZACC arrests Presidential Scholarship bosses - they were nabbed for allegedly doctoring an invitation letter from Fort Hare University in South Africa
More Information
- https://www.herald.co.zw/zacc-sniffs-out-rot-in-nurse-recruitment/
- https://www.herald.co.zw/presidential-scholarship-bosses-arrested/
ZIMRA Progress
ZIMRA this month suspended 36 employees for living beyond their expected lifestyles. It is working in collaboration with the ZACC to handle internal cases which suggest that individuals got their wealth corruptly.
More Information
- https://www.chronicle.co.zw/zimra-suspends-36-officers
1.3 Efficient Government
The political, social and economic development of a nation depends on its effective public sector that plays an important and vital role in rebuilding a nation. No transition will be successful if it does not re-structure and reform the public sector to be effective, efficient, responsible and accountable.
Civil servants biometric registrations to weed out ghost workers is one of the measures introduced by Mthuli Ncube in the 2019 budget as he seeks to reduce the wage bill.
All government employees who have not registered themselves as government employees using the biometric system will be struck off the SBSS payroll schedule end of September, 2019.
1.4 Foreign Relations - Re-Engagement
President Mnangagwa during his inauguration in November 2017, said “GoZ will immediately start on a journey to re-engage with those who have punished us through sanctions.” He also promised that his administration will set the right economic tone to signal “Zimbabwe is open for business” and attract the right Foreign Direct Investments (FDIs) to boost the economy.
UNGA Address
On the 20th of September the president left Harare for New York to attend the 74th session of the United Nations Annual General Assembly (UNGA). In his address to the UNGA, Wednesday, he demanded the lifting of sanctions on Zimbabwe, and thanked the SADC and AU member countries for putting pressure on the U.S. and Britain to drop the sanctions.
President Mnangagwa also had high-level meetings with Commonwealth Secretary-General Mrs Patricia Scotland and investment discussions with Scandinavian countries. The Head of State and Government held several high-level meetings with Mrs Scotland, Norwegian Prime Minister Erna Solberg, African Development Bank executives, American politicians and businesspeople, global media gurus, representatives from the World Food Programme and also convened a dinner with investors in the health sector.
SADC Support on Sanctions Removal
In August Sadc members collectively voiced their disapproval of sanctions against Zimbabwe, and declared 25th October as the Day of Action Against Illegal Sanctions. Namibian President Hage Geingob during his address at UNGA called for the unequivocal lifting of sanctions imposed on Zimbabwe.
Anti Sanctions March In New York
December 12 Movement led hundreds of protestors waving placards among other activities protesting against sanctions imposed on Zimbabwe. December 12 Movement leader Viola Palmer said in a statement white at the protest:
“Sanctions in Zimbabwe kill, they destroy all means to develop the country. The sanctions are killing the people of Zimbabwe. Sanctions are a form of war. They put sanctions on the banks. They cannot get financing to develop the country”
Dr Peter Magombeyi Abduction
The Dr was abducted a few days before UN Special Rapporteur on the Rights to Freedom of Peaceful Assembly and of Association, Clément Nyaletsossi Voule’s visit and a week before President Mnangagwa left for New York for the 74th UNGA.
Government vehemently denied responsibility and claimed a third force. Subsequently they claimed it was a stage managed abduction. Magombeyi resurfaced five days later in Nyabira, 40km north west of Harare on Thursday night.
Lobby and PR Firms Hiring
The government hired BTP Advisers, a fourth lobby and public relations firm in a desperate bid to spruce up its international image and bolster the diplomatic re-engagement drive. It is believed the company was also tasked with communicating to stakeholders about the circumstances under which Zimbabwe Hospital Doctors’ Association leader Peter Magombeyi was allegedly abducted.
The government earlier engaged Mercury International Limited, Ballard Partners and Avenue Strategies—in a quest to help Zimbabwe return to the community of nations after decades of isolation.
Adverse UN Rights Envoy Report
Clément Nyaletsossi Voule says Zimbabwe’s political and economic situation is deteriorating, causing anxiety as hopes fade for a long-awaited improvement in people’s living conditions. Clement Nyaletsossi Voule, told reporters after a 10-day fact-finding visit that Zimbabweans were questioning the capacity of President Mnangagwa’s government to bring about change.
“Albeit the common belief that a transformation will come, I believe that the long-awaited hopes are fading,” Nyaletsossi said.
More Information
-https://ewn.co.za/2019/09/27/un-rights-envoy-says-zimbabwe-political-economic-situation-deteriorating
2. Social Issues
2.1 Health Care
Doctors vow to continue with industrial action
The doctors started protesting on the 16th of September, 2019, demanding the return of the then missing Zimbabwe Hospital Doctors Association acting president Peter Magombeyi who had allegedly been abducted. The doctors have vowed to continue with their industrial action despite the return of their abducted colleague, Peter Magombeyi.
Magombeyi resurfaced five days later but the situation in the country's public health centres had deteriorated to alarming levels and health workers are now demanding a salary review and have declared they will not return to work.
Parirenyatwa Hospital, among other health institutions discharged all the non-critical patients leaving those in critical conditions. It was a deadly call forcing the government to turn to the military for help.
2.2 Social Safety Nets
NSSA To Review Pension Payouts
NSSA has started the process of consulting stakeholders in preparation for reviewing pension payouts. The actuarial valuation, which is being conducted by consultants, will guide NSSA in determining the level of benefits reviews, taking into account the long term sustainability of the schemes. The first draft of the report is expected to be presented to NSSA by the end of September 2019
More Information
-https://www.zimbabwesituation.com/news/nssa-to-effect-upward-review-of-pension-payouts/
3. Economy
Inflation
Inflation has been spiralling to stratospheric levels and is hammering the local currency. When it hit 175,6%, the minister panicked and banned annualised inflation figures under the guise of rebasing the pricing index. Inflation is currently above 200%. Independent economists say it will close the year at 500%, putting Zimbabwe firmly on the Venezuelan path yet gain.
IMF Grim Picture
The IMF has painted a grim picture of the prevailing economic situation in Zimbabwe which is exacerbated by extreme weather conditions, weakening confidence and policy uncertainty as year-on-year inflation rate rises to over 300%. The Washington DC-based Bretton Woods institution also predicted severe GDP growth decline in 2019, mainly as a result of the effects of drought, Cyclone Idai floods and lack of confidence in the country’s financial sector. The IMF said urgent measures should be taken to address the situation.
“Policy actions are urgently needed to tackle the root causes of economic instability and enable private sector-led growth. The key challenge is to contain fiscal spending consistent with non-inflationary financing and tighten monetary policy to stabilise the exchange rate and start rebuilding confidence in the national currency,”
IMF has pledged to continue working with the Government to foster economic stability.
September Currency Madness
On Thursday 19 September, 2019, the exchange rate increased drastically from USD$1: ZWL$16 to US$1: ZWL$23 for Ecocash and US$1: ZWL$25 for electronic transfers. The steep exchange rate caused a sharp increase in prices of some goods and services as some retailers peg their prices against the greenback.
Reserve Bank of Zimbabwe’s, Financial Intelligence Unit (FIU) memo dated September 19, ordered all banks to freeze of all accounts held by Sakunda, Access Finance, Spartan Security and Croco Motors and related entities. FUI reportedly picked information that the companies identified were the ones pouring in over $1 Billion into the black market to mop up the USD. Runners for these firms were vowing to take the rate to US$1: Z$30. The money being bought by these runners was supposed to be used to buy command agriculture inputs and flashy cars for ministers.
The rate tumbled to US$1: Z$15 on Friday 20 September, 2019 night after a rumour went out that those accounts had been frozen
However, there was wide skepticism on whether this freezing will hold considering that President Mnangagwa’s close allies were involved, Kudakwashe Tagwirei (Sakunda Holdings) and Tarisai Mnangagwa (Spartan Securities), a nephew, as well as a member of his close security. Unconfirmed reports say the RBZ order to freeze these accounts has since been lifted.
Ease of Doing Business Improves
World Bank applauded Zimbabwe for making regulatory improvements in five areas measured by Doing Business: improving online name search, reducing the Harare Municipality business licensing fee, faster approval of construction permits, deeds registry implemented an internal tracking system allowing applicants to track their applications throughout the property transfer process
Government To Employ A New Funding Model For Command Agriculture
To unlock the $2.8 Billion needed for command agriculture the government of Zimbabwe has adopted a new funding model that will see it providing guarantees with banks and the private sector funding the programme. Treasury has committed to issue a guarantee worth RTGS$968 million to unlock the required funding of RTGS$ 2,8 billion for the programme.
Command Agriculture in the 2017/2018 and 2018/2019 seasons swallowed $3 Billion dollars but has shown very minimal results with the government seeking to import maize these year and wheat shortages that sometimes cause bread shortages in the country.
More Information
-https://www.imf.org/en/News/Articles/2019/09/26/pr19355-zimbabwe-imf-staff-concludes-visit-art-consult-discuss-1st-rev-staff-mon-program
-https://www.herald.co.zw/topsy-turvy-currency-madness-slows-down/
-https://news.pindula.co.zw/2019/09/30/government-to-employ-a-new-funding-model-for-command-agriculture/
4. Infrastructure
4.1 Energy
ZERA announced fuel hikes five times in the month of September, 2019. The overall increase within the month was, diesel 21% and petrol 19%. The fuel tax is a substantial portion of the fuel price at around 27%. This is a grossly unfair tax regime and may government stop protecting fuel tax revenue and make fuel affordable and responsive to international price fluctuations. Studies say that a US$0.25 (equiv. ZW3.75) per litre increase in domestic prices decreases household real income by 5%. In this month alone diesel has gone up by ZW2.17.
ZERA Fuel Hikes:
Date
|
Diesel ZWD
|
Blend E20 ZWD
|
02/09/2019
|
10.25
|
9.86
|
09/09/2019
|
10.42
|
9.95
|
16/09/2019
|
10.89
|
10.41
|
23/09/2019
|
12.08
|
11.55
|
30/09/2019
|
12.42
|
11.76
|
ZERA said the changes in the fuel price are due to FOB price movements and revised duty regime (SI 161 of 2019) applicable from Monday.
4.2 Electricity
Energy and Power Development Minister Advocate Fortune Chasi, was in Maputo and announced that he has obtained an additional 100MW from Mozambique, effective October 1, 2019, as Government continues to address power shortages that have resulted in long hours of load-shedding.
4.3 Transport
Charles Prince Airport makeover begins
The makeover of Charles Prince Airport has begun, as Government heightens efforts to build a new modern city in Mount Hampden. It is envisaged that the project would enable the airport to land short- to medium-range narrow-body airliners such as the Boeing 737. Government has started revamping the airport, with the runway almost done.
4.4 Water & Sanitation
Harare Closes Water Plant for Lack of Treatment Chemicals
City of Harare closed Morton Jaffray Waterworks due to lack of funds to purchase water treatment chemicals, forcing residents to rely on open and untreated water sources.
Acting Local Government, Public Works and National Housing Minister, Ziyambi Ziyambi, has said that the central government was setting up a team of technocrats to assist Harare City Council to handle $37,4 million that was availed by Treasury last week. The money was meant for capital projects. We are giving them money for capital projects, but what we have decided to do is to have a committee to support them, we no longer trust them, we have in the past given them monies, loans and they bought vehicles so we want this money to be used for the specific purpose it has been released hence we are setting up this committee to assist them do that.
The central government has said that it will be disbursing $72,3 million from the Inter-governmental Fiscal Transfers allocation to address water and sewer challenges in local authorities.
More Information
-https://www.iol.co.za/business-report/international/zimbabwe-govt-provides-funds-to-harare-city-council-to-improve-service-delivery-33339545
5. Monetary Policy
RBZ sets forex withdrawal limits for Bureaux de Changes
The RBZ announced foreign currency cash withdrawal limits for individuals and businesses at Bureaux de Changes as it seeks to refine the operations of the sector.
In a statement, the Central Bank said Bureaux de Changes will with immediate effect only sell foreign currency cash to individuals for foreign travel, upon submission of a passport.
“The current cash limits for Personal Travel Allowance of US$300 per day per travel, and up to a maximum of US$10 000 per year, should strictly be adhered to. The Bureaux de Change are, henceforth required to endorse passports of travellers who would have purchased foreign currency. The Business Travel Allowance of US$400 per day, and up to a maximum of seven days per travel, shall be strictly monitored,” said RBZ.
RBZ sets forex withdrawal limits for Bureaux de Changes Reserve Bank of Zimbabwe
RBZ issues ZWL$100m Treasury Bills
Government has issued Treasury Bills (TBs) valued at ZWL$100 million aimed at financing various programmes. In a statement yesterday, the Reserve Bank of Zimbabwe (RBZ) invited financial institutions, asset managers, insurance and pension funds and other corporates to subscribe to TBs with maturity tenure of 92 days.
The RBZ’s third Treasury Bills (TBs) auction meant to raise $100 million was oversubscribed by 400 percent after bids totalled $419 million.
More Information
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