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Inside Queen Bee’s murky Zimbabwean mining hive

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BY JOSEPH COTTERIL

In Zimbabwe’s Shona language, ‘kuvimba’ can mean trust or having faith.

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It is a great name for a state-owned custodian charged with protecting the impoverished southern African nation’s mineral wealth, riches that have otherwise so often been abused, corrupted and looted over the decades.

Or it would be a great name, if it wasn’t for the fact that ever since Kuvimba Mining House was unveiled last year, President Emmerson Mnangagwa’s government has faced difficult questions about how far the company, in which it holds a 65% stake, is linked to a US-sanctioned businessman: Kudakwashe Tagwirei.

Both the government and Kuvimba have denied that Tagwirei — a former local business partner of Trafigura who has been dubbed ‘Queen Bee’ by Zimbabweans because of his perceived grip on the dispensing of state resources under Mnangagwa — has any involvement at the company.

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Tagwirei has been publicly silent on these allegations and did not respond to a request for comment on this story.

Queen Bee actually is a great name — in another sense.

As Alphaville reported recently, Tagwirei controlled a veritable hive of offshore companies that moved millions of dollars through a central Mauritian commodity trader, Sotic International.

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And what has made the questions about Kuvimba particularly difficult is that its assets — which include stakes in nickel, chrome, and gold producers, as well as a platinum deposit — come from Sotic, which embarked on a mine-buying spree in recent years.

For instance, Bindura Nickel, a Sotic-acquired miner that is now in Kuvimba’s portfolio, announced in a stock-exchange filing last year that Sotic had “nominated Kuvimba… as the entity receiving the shares” following Sotic’s own takeover in 2019.

Kuvimba has said that it acquired Sotic assets in a “restructuring exercise”, without giving details.

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One big question, then, is how Kuvimba came to own Sotic’s assets. And, while Zimbabwe’s government denies allying with Tagwirei in Kuvimba, its ties to Sotic have also been less clear. Or until now, that is.

Zimbabwe’s most valuable company?

Christopher Fourie, a former Tagwirei aide and Sotic’s founder, who still holds a stake in the company, has told Alphaville that he did not consent to Sotic’s mine assets being moved to Kuvimba.

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Meanwhile, according to message records reviewed by Alphaville, Zimbabwe’s government has been intimately involved in Sotic’s affairs all along.

In these messages Tagwirei described the government as a majority owner of the company, despite official shareholder records pointing to the contrary, and ordered Fourie to deal with senior state officials when he voiced concerns about the alleged siphoning of Sotic’s resources to other offshore companies.

Zimbabwe’s finance ministry has been instrumental in promoting Kuvimba, where the state’s overall two-thirds stake is held by public bodies such as a nascent sovereign wealth fund and the country’s insurance and pensions commission, which has said that it will use its five per cent shareholding to compensate pensioners who lost out in a currency collapse.

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Mthuli Ncube, the Finance minister, has even said that Kuvimba will help fund a compensation deal for farmers who were dispossessed by seizures of land under Robert Mugabe, the late dictator deposed in a 2017 coup.

Kuvimba paid a US$1 million dividend for this purpose in July, though that month the government also said that this farmer compensation fund had received a donation of a 12.5 % stake in the company itself, which it said was worth US$250 million.

Even in paper terms, that is a lot of money in the context of Zimbabwe, an economy that had a GDP of about US$16 billion last year.

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The valuation would imply that Kuvimba overall is worth US$2 billion, making it Zimbabwe’s most valuable company, beyond the country’s biggest stock-market listings such as Econet, the largest telecom.

It would also rival public market values of even some big South African miners, such as Harmony Gold.

Tagwirei does not own a single share of this bonanza, says David Brown, the former chief executive of Kuvimba, who was also Sotic’s chief executive but has denied taking directions from Tagwirei at that company.

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In June, when he still headed Kuvimba, Brown told Alphaville that:

He (Tagwirei) certainly does not own a shareholding in the mining assets as we stand today… with regard to the shareholding position we have performed a detailed KYC [‘know your customer’] and I stand by what I have been able to verify with documents.

Brown has since told Alphaville that he left Kuvimba at the end of August.

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As previously reported by Alphaville, not owning a single share of Sotic didn’t appear to prevent Tagwirei controlling that company, even when Fourie was its original official sole owner.

Fourie has said that Tagwirei was not made a direct shareholder in Sotic because he believed this would have triggered KYC alarms at banks that might have cut the company off over the businessman’s political links.

A subsequent — and elaborate — split in Sotic’s official ownership last year is meanwhile crucial to the Kuvimba mystery today, particularly Fourie’s claim that Sotic’s mines were transferred without proper approval.

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A Mauritian connection

As Alphaville reported last time, 65% of Sotic was acquired by a Cayman Islands-registered investment vehicle, Almas Global Opportunities Fund, in which Tagwirei acquired shares in 2019.

Almas has said that Tagwirei doesn’t own shares in the fund any more, and that it is exiting its investment in Zimbabwe.

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The other third of Sotic was acquired by Pfimbi, a Mauritian company in which Fourie took a 22% stake, alongside stakes held by other executives who were close to Tagwirei.

Pfimbi is yet another great name — it has connotations of ‘secret’ or ‘safekeeping’ in Shona.

According to shareholder records, some shares in Pfimbi were also taken up by Simbarashe Chinyemba, who has been linked to Kuvimba. Chinyemba did not respond to a request for comment.

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Keeping up?

Good.

More recently, Pfimbi’s status in Mauritius has been in question after its local company agent, Capital Horizons, told shareholders earlier this year that it would cut ties.

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But Pfimbi and Sotic being based in Mauritius is important for how their assets were moved to Kuvimba.

Mauritian company law requires pre-emption rights to be given to existing shareholders over changes in ownership of assets – terms reflected in Sotic’s company constitution, which has been reviewed by Alphaville.

Despite this, Fourie has said that he was never asked to approve any transactions relating to Kuvimba, and has not received answers from the company or other shareholders.

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Fourie told us: If [there have been] any changes to these shareholdings and/or ownership in assets has changed, it was done without the consent of all shareholders, and mine in particular.

Ronelle Sinclair, Christian Weber, and Jozef Behr, South African executives who were Fourie’s fellow shareholders in Pfimbi and who had close ties to Tagwirei, said in response that they had “resigned from all duties including from the board of Sotic International” in June 2020.

“Since then, [Sinclair, Weber and Behr] have had no insight into the affairs and business of Sotic International, Christopher Fourie, or Kudakwashe Tagwirei,” the trio added. Chinyemba, as another Pfimbi shareholder, did not respond to a request for comment. Almas, Sotic’s other investor, declined to comment. Brown, the former Kuvimba chief executive, said that Chinyemba was involved in setting up the transactions with a Zimbabwean legal team.

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“My only comment is that Mr Fourie should decide if he was a beneficial or nominee shareholder,” he added.

Fourie said he was a beneficial shareholder.

“The shares were held in my personal capacity . . . there never was any nominee shareholder agreement in place,” he said.

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The Zimbabwean Finance ministry did not respond to a request for comment, including to see copies of relevant shareholder approvals for transfers of ownership or management from Sotic to Kuvimba.

So, even though a US$2 billion valuation is riding on the answer, the mystery remains over whether proper shareholder approvals back Kuvimba as the legitimate successor to Sotic’s mines.

That, of course, is based on the official Sotic shareholdings described so far. It is about to get weirder.

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“I am just a minority shareholder” According to WhatsApp messages reviewed by Alphaville, in May last year, Tagwirei told Fourie that “Sotic is owned by government 65 percent and myself 35 per cent,” despite official records that show Almas and Pfimbi owned the company in these proportions.

“I am just a minority shareholder… you will best speak to the [main shareholder] who contracted you,” said Tagwirei in one of the messages.

Tagwirei did not respond to a request for comment.

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Fourie told Alphaville that it was his understanding at the time that the 65% stake was a proxy for the Zimbabwean government.

Almas told Alphaville that “it is simply incorrect and not factual” that the Zimbabwean government had a majority stake, or Tagwirei a minority stake, in Sotic.

The Zimbabwean Finance ministry did not respond to a request for comment on whether the government held an undisclosed proxy stake.

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Message records reviewed by Alphaville show that Fourie was indeed speaking to a senior state official about Sotic, as Tagwirei suggested.

The top civil servant in the finance ministry met Fourie to discuss Tagwirei’s offshore interests, and warned him not to make threats about exposing those involved, according to these messages.

After a “screaming match” early last year, “Kuda informed me that I needed to go see George Guvamatanga,” the ministry’s permanent secretary, Fourie told Alphaville.

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Guvamatanga and the finance ministry did not respond to requests for comment.

According to WhatsApp messages, Tagwirei instructed Fourie to meet Guvamatanga and Sibusiso Moyo, Zimbabwe’s Foreign minister at the time and a former army general who was instrumental in the 2017 coup against Robert Mugabe.

Moyo died from Covid-19 earlier this year.

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“If it does not work then we go higher,” Tagwirei said in the messages.

He did not respond to a request for comment about the messages, including on who was being referred to as going higher.

Fourie told Alphaville that he met Guvamatanga at his ministry office and “most definitely and in the strongest possible way” pressed his complaints about Sotic and other companies.

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The two kept up communications thereafter, after Kuvimba had been established, according to the message records.

“Kuda is currently incapacitated… happy to talk to you though,” Guvamatanga, a former chief executive of the former unit of Barclays in Zimbabwe, told Fourie in messages which date from a period earlier this year when Tagwirei was not seen in public for some time.

“I can assist on this matter but not when you are threatening everyone like this,” he said.

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“You need to focus on what you personally want to get out from all this. Everything else will not help you.”

“In the absence of KT I have been speaking to Obey on your matter,” Guvamatanga said in another message, in an apparent reference to Obey Chimuka, an associate of Tagwirei who owned a group of companies that traded with Sotic.

Chimuka did not respond to a request for comment.

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“To enable me to push for a solution may you send me a summary of what you would regard as a full and final settlement claim.

“It is in our interest to have this matter urgently resolved amicably,” Guvamatanga added.

Fourie sent Guvamatanga a proposed deal to sell his shares in Pfimbi to Tagwirei, according to records.

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Tagwirei did not respond to a request for comment.

The deal was never implemented.

Many questions — about the Zimbabwean government’s true relationship with Sotic, and the legitimacy of its mining successor, Kuvimba — remain unanswered.

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Fourie told Alphaville that Guvamatanga and Tagwirei “appeared to be very close and I would classify them as personal friends.”

Guvamatanga did not respond to a request for comment.

Meeting the civil servant to discuss Tagwirei’s business affairs was “probably not appropriate,” Fourie said.

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But, he added, “it is the only way business is done in Zim.”- Financial Times

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Special reports

Schools improvement grant improving the quality of learning in Hwange

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By Wilson Mareya & John Mokwetsi

Without the School Improvement Grant (SIG), learners at Nyongolo Primary School in Hwange District would not be celebrating the provision of textbooks, teaching material, classroom furniture, and a good learning environment.

Nyongolo Primary School is a registered rural school located about 340 km from Zimbabwe’s second-biggest city, Bulawayo. The school is a few metres from the Hwange-Victoria Falls highway and has 5 classrooms and 272 learners (147 females and 125 males). Hwange District is primarily a mining district. Large coal deposits are found in the district, and several large coal mines are located there. Despite being mineral-rich, the locals survive on menial jobs, with most not affording to buy their children basic education needs. Most learners live within a radius of 10km from the school.

Nyongolo is one of the beneficiaries of the School Improvement Grant (SIG) Regular programme made possible thanks to funding from the Foreign Commonwealth and Development Office (FCDO). The grant aims to support financially constrained schools with resources to meet their minimum functionality standards. FCDO supports the Ministry of Primary and Secondary Education initiatives towards improving the quality of education for all children, especially the vulnerable and disadvantaged, with UNICEF managing the funds and providing technical support.The school head, Nokuthula Ndebele, is ecstatic when she speaks of the benefits of SIG: “Textbooks have come as a game changer for our pupils. We used to have acute shortages of textbooks, where the school could only afford one textbook for the whole class. For the Ndebele language, the school did not have any textbooks for grades 6 and 7. With the funds available to purchase more textbooks and teaching materials, the learners gain motivation and interest in learning as each learner has their textbook for most of the subjects.”

She added that for the Ndebele language in 2022, the school posted impressive Grade 7 results, with 24 out of 34 learners having passed.

“We expect this success to be replicated in all other subjects in 2023. The quality of learning is surely improving. Our school had many non-readers when I took over as head in 2021. Now there is a significant improvement. With access to textbooks, the reading culture is improving,” Ndebele revealed the positive impact.

For schools like Nyongolo, where several learners were non-readers, SIG has been a critical pillar in supporting foundational literacy.

Ndebele added: “SIG is the most contributor towards the school’s existence; I don’t know what we would have done without SIG. The school would probably not exist anymore. The levies and fees are too low to support the school. With the last grant, we purchased 16 single desks, 18 chairs and 24 textbooks, and our classrooms are now looking the way a classroom should look.”

Most desks and chairs are stacked at the back of the classroom as schools have closed for the third term holiday.

The school’s School Development Association (SDA) chairperson, Joseph Ndlovu, said of the support: “Before the intervention of UNICEF, our school did not have enough textbooks. Children sat on combined desks and chairs, which made social distancing impossible during Covid. Now a larger proportion of the learners have single desks and chairs. The community is quite happy with the improvements at the school.”

He added that the school and the parents could not afford textbooks and suitable furniture for every learner.

“The school could only afford to buy a single textbook per class for the teacher. We are glad for the support we receive from UNICEF and the Ministry (of Primary and Secondary Education). Now for most subjects, each learner has their own textbook, and the children are happy”, said Joseph.

The support given to schools has positively impacted schooling in many financially constrained schools in Zimbabwe. Dreams of a brighter future are being kept alive in these poor communities.

Ndebele spoke of the challenges.

“The challenge is still on subjects like PE and ICT where we have one textbook for the whole class in some classes. We also do not have enough classrooms for our learners. If the district approves our application for Complementary Funding, we plan to renovate and complete a classroom unit for ECD.”

In early December, the school applied to the District Education for UNICEF-supported complementary funding to support the school’s infrastructure development. The school aims to renovate and complete a big classroom unit for ECD and provide an appropriate and enabling learning environment for the infants.

The school head hopes to get support from the School Improvement Grant component of Complementary Funding from the Global Partnership for Education (GPE) – where schools get funding to renovate, rehabilitate or complete existing school structures such as science laboratories, classrooms or hygiene-friendly toilets for the learners. She is also hoping for continued support so the school can purchase suitable furniture for infants and purchase more textbooks for subjects like (Information and Communication Technology (ICT) and Physical Education (PE).SOURCE:UNICEF

 

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Zimbabwean women are reduced to cheerleaders in the upcoming election, activists say

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BY FARAI MATSAKA

In a large hall at the headquarters of Zimbabwe’s ruling ZANU-PF party, women responded with roaring cheers when President Emmerson Mnangagwa described them as the party’s “backbone” whose votes are vital to victory in elections scheduled for August.

At a recent opposition rally, women with the face of their male party leader emblazoned on dresses and skirts sang, danced and promised to vote for change — never mind that the election again represents a status quo where women are largely limited to cheerleading.

It appears worse this year because the number of women candidates has plummeted, despite women constituting the majority of the population and, traditionally, the biggest number of voters.

“We have some of the best laws and policies on gender equality and women representation, but that’s just on paper. The reality on the ground is that the role of women in politics is restricted to being fervent supporters and dependable voters,” said Marufu Mandevere, a human rights lawyer in the capital, Harare.

The shortage of women candidates puts Zimbabwe at odds with trends on the continent. According to a report released in March by the Inter-Parliamentary Union, the number of women in national parliaments in sub-Saharan Africa increased from 10% in 1995 to about 27% in 2022. The IPU describes itself as a global organization of national parliaments established in 1889.

In Zimbabwe, a patriarchal southern African nation of 15 million people, gender-based biases are still rampant. Men have historically dominated the political, economic, religious and social spheres. The Aug. 23 election suggests that change could be beyond the horizon, despite vigorous local campaigns and global pressure for increased female participation in decision-making.

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Zimbabwe’s controversial new Patriotic Bill just about ‘loving your country”, says minister

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BY CITY PRESS

The heavily criticised Patriotic Bill, which was passed by Zimbabwe’s Parliament recently to clamp down on “subverting government”, is not meant to suppress freedom of expression.

This is according to Monica Mutsvangwa, the country’s minister of information, publicity and broadcasting services, who spoke to City Press in Randburg on Friday.Mutsvangwa said the passing into law of the controversial legislation, legally known as the Criminal Law Codification and Reform Amendment Bill, was meant to deal with citizens conspiring with outsiders to overthrow the government and campaigning for sanctions. The bill, which was passed on June 7, has been heavily criticised by civil society organisations, including Amnesty International.

Flavia Mwangovya, Amnesty’s deputy regional director for East and Southern Africa, said earlier this month that the bill’s passing by the Senate was deeply concerning and signalled a disturbing crackdown on Zimbabweans’ rights to freedom of expression, peaceful assembly and association.Mwangovya said the weaponisation of the law was a desperate and patent move to curtail the rights of freedom of expression and to public participation in elections next month.

But Mutsvangwa was adamant this was not the case, insisting that the intention of the new law was to “promote patriotism”.

‘NOT CONTROVERSIAL’

“I don’t accept that it is controversial. It’s okay for people to talk [about it]. That’s freedom of expression,” Mutsvangwa said.

She said Zimbabwe could not promote the subversion of a constitutional government.

Some of the amendments in the bill include:

Criminalising any citizen caught “wilfully injuring Zimbabwe’s sovereignty, dignity and independence as a nation. ”

Criminalising those who participate in meetings with the intention to promote, advance, encourage, instigate or advocate sanctions or trade boycotts against the country.

The death penalty for those perceived to have colluded to unseat government, including individuals acting as agents or proxies to such entities.

Under the new law, those found guilty of being unpatriotic will face up to 10 years in prison or a fine. They also risk having their citizenship revoked or their permanent resident status, cancelled. They will be banned from voting and occupying public office.

However, Mutsvangwa said the aspects dealing with jail sentences would be left to the judiciary.

“People who talk about it [the bill] as being controversial; I’d like to understand what it is they are saying. Is it good to cooperate with people planning subversion of the constitutionally elected government? Is it good to cooperate with people who are planning a coup? Is that correct? No,” Mutsvangwa said.

She said the citizens were allowed to criticise President Emmerson Mnangagwa.he president. That is why we have 11 candidates who filed papers to be presidential candidates. How would they run if they were not allowed?”

But she said as long they were not promoting armed intervention and subversion of government; they would be allowed to contest the elections.

BROWN ENVELOPES

The citizens, Mutsvangwa said, must be factual in their utterances and not plant misinformation and disinformation because they wanted to get money.

“That won’t help the country,” she said.

She claimed that there had been cases in which citizens would bad-mouth government because they wanted to get “brown envelopes”, implying that people were being paid to criticise the regime.

“That has happened, which is a pity. We should not be thinking like that as Africans. We need to love our countries. There are people who think there’s something wrong with being patriotic.”

Being unpatriotic included negative remarks about the scarf that Mnangagwa always wears, which is branded with Zimbabwe’s flag.

“But I say, this is our flag. Why are we not proud of our own flag? I was a diplomat in the US. I lived in an exclusive area. Every house in the US had a flag flying. There’s nothing wrong with loving your country.”

ELECTION PREPARATIONS

The Zimbabwe Electoral Commission, she said, was functioning well and the preparations for next month’s polls were going smoothly.

Mutsvangwa added that this was evident following submissions made by the 11 presidential candidates during the nominations on Wednesday last week.

“That shows democracy on display. I don’t know how many political parties participated [in that process]. I don’t have the number. But the place was alive with all different kinds of people [making their submissions].”

The minister said opposition parties would be treated equally in these elections, adding that government had opened the airways by introducing other television channels.

“This means there is a wider choice for everyone who wants to go out and send their messages [to the voters]. We also feel it’s important that the people of Zimbabwe choose who they want to lead them from the information [they get].

“So, this is in everybody’s interest to say that whoever put their papers for nomination is that [the right] person so that the people vote from a position of knowledge,” she said.

But Zimbabweans would only be allowed to vote in the areas where they had been registered.

“The Electoral Act talks about polling station-based voting. So, if there are Zimbabweans here [in South Africa] who are registered back in their communities, they are free to go [home] and vote.”The minister said they were prepared to deal with those returning home and wanted to vote in their respective areas where they were registered.

NO MORE NO-GO AREAS

Mutsvangwa said government was implementing recommendations made by the Kgalema Motlanthe commission of inquiry, which investigated the circumstances that led to the 2018 post-election violence.

The recommendations included that political parties be registered to ensure accountability and a review of the laws relating to hate speech, abuse of cyberspace and inciting violence.

Since 2018, government had been working on those recommendations, Mutsvangwa said, adding that the upcoming elections would be open to foreign observers.

“They are free to come. We’ve got nothing to hide.”

She said Zimbabwe had been using the national broadcaster, ZBC, for 42 years for its messaging. But Mnangagwa had said that there must be media reforms.

She said the president had told her that there was a need to diversify to allow Zimbabweans access to a variety of media content. As a result, licences had been granted to six commercial television stations in Zimbabwe.

“These were given through the proper processes. Some of the media houses that were considered opposition or anti-government have been given licences.

“They are operating now. We’ve done a lot of opening [of the airwaves] to show the world that we have nothing to hide,” she said, adding that 14 community radio stations had been granted licences. It’s a big game charger. We’ve managed to bring on board all Zimbabweans who were marginalised, who’ve never felt they were part of Zimbabwe.”

Zimbabwe was removing the polarisation that had hampered their communities, she added.

‘EXPATS COME HOME’

Mutsvangwa said they were rebuilding the country’s economy amid crippling sanctions imposed on Robert Mugabe’s government due in retaliation to the land reform policies.

She said the serious brain drain over the years and skills shortage were affecting the economy.

Mutsvangwa said lessons had been learnt and Mnangagwa was consulting on the interventions to end sanctions.

She said there had been several infrastructural developments and the discovery of oil in the northern part of the country would require engineers, who had left the country to seek employment elsewhere, to return.

Her government respected South Africa’s decision to extend special Zimbabwe exemption permits for their nationals until the end of this year.

 

 

 

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