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Ukraine conflict raises fears of another economic crisis in Zimbabwe

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BY NOKUTHABA DLAMINI

Elina Ncube, a former housekeeper at one of the prime lodges in the northern Zimbabwean tourist gateway of Victoria Falls, now survives by scavenging for food at the municipal dumpsite.

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The 39-year-old mother of five wakes up as early as 4am to make her way to the Masuwe dumpsite because competition is tough as more and more of the city’s residents resort to scavenging due to deepening poverty.

A recent survey by the We Are Victoria Falls initiative found that 7,000 people in the resort city had lost their jobs because of the Covid-19 pandemic.

Forty six percent of workers in the tourism sector which covers leisure, hunting and tours as well as transfers were forced to work reduced hours.

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Ncube was fortunate to get a temporary reprieve when the tourism industry reopened late last year after her former employer rehired her as a gardener, but her contract was terminated when Russia invaded Ukraine in February 2022.

The faraway conflict is having ripple effects across the planet, including in Zimbabwe.

Sectors including tourism that had felt they had turned a corner in recovering from the pandemic are now reeling from the impact of Vladimir Putin’s war.

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Ncube’s employer is one of the many tourism operators who relied on Russian safari tourists in Zimbabwe, whose numbers have taken a dramatic dip since the war began.

“My husband is disabled and when I lost my job my neighbours introduced me to Masuwe dumpsite where we survive on picking up old clothes to wear, food to eat and plastic and metallic objects for resale to recyclers,” Ncube said.

“I can no longer afford to buy basic groceries such as bread and flour to feed my family and prospects of finding another job in this Covid-19 era are near impossible.

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“The war in Ukraine has made the situation even more desperate because most of the tourists that booked at our lodge were from Russia and we were told that most of them had cancelled their bookings.”

Victoria Falls is one of Zimbabwe tourism industry’s major attaractions

Clement Mukwasi, president of the Employers Association for Tours and Safari Operators, said Russia is a big source market for Zimbabwe’s hunting industry and the war had an immediate impact on the country’s tourism industry that was beginning to recover from the impact of Covid- 19 lockdowns.

“We were hoping that we would begin to see some tourist arrivals from all over the world, but we have seen that the tourists, specifically those that come from Russia have completely stopped coming to the continent of Africa,” Mukwasi said.

“Russian citizens are unable to transact on any of the monetary platforms because of the sanctions that the country has been hit with and also when there is instability, it becomes difficult for people to freely move. So what is going to continue happening is that certain sectors of tourism are going to be affected, especially the hunting sector which is mainly dominated by the Russian, Belarusian and Ukrainian tourists.”

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“Tourist arrivals from Russia’s neighbours such as Ukraine, Turkey, Poland and Germany have also dropped significantly.”

Mukwasi said the cost of travel globally was rising rapidly as a result of the war and this will negatively impact tourism.

“We are watching that closely and we hope that it will not get back to a point where we are on our knees again, but our bookings that were from these war-zone countries, their neighbours and some parts of Europe have already been cancelled,” Mukwasi added.

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O’brien Dube, a driver employed by a tours and transfers service provider in Victoria Falls, said since the Russia-Ukraine war began the number of tourists had gone down significantly.

“I earn on commission, and this means that if there are no tourists coming through, the demand for my services is low,” Dube said. “Bread now costs over US$2 in supermarkets and the price of fuel has also gone up. I am struggling to feed my children because my taxi has been parked for several weeks.”

A loaf of bread now costs US$2.21 after a series of price reviews in the last two months, which the Grain Millers Association of Zimbabwe attributes to the increasing difficulties in importing wheat from Ukraine and Russia. Zimbabwe sources nearly 60 percent of its wheat supplies from Russia and Ukraine.

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Beyond the toll on people, conservationists say a combination of Covid-19, effects of the Russia-Ukraine war and Zimbabwe’s worsening economic problems is increasing cases of poaching in communities around game reserves.

Trevor Lane, founder of Bhejane Trust in Victoria Falls, said the Covid-19 pandemic and the general economic collapse has seen both large and small wild animals being targeted by poachers.

Lane said there has also been a rise in fish poaching where poachers resort to using mosquito nets to catch larger volumes of fish

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“Covid-19 has had a massive impact across Africa, which is having devastating consequences, and we are seeing an alarming surge in wildlife and fish poaching,” Lane said.

“We find mosquito nets and cheap filament nets being used illegally with an alarming number of small fish being taken out of the waters before they reach maturity and reproductive size, and this is compromising our ecosystem,”

Ollen Dube, an environmental expert based in Victoria Falls, said there was a worrying increase in poaching activities.

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“Large mammals such as the elephants and rhinos are the prime target too and with this on-going war in Ukraine, the Covid pandemic and general levels of unemployment, we are likely to see many more of them being poached,” Dube said.

In the past few months, police have made several arrests of people found selling ivory in areas such as Victoria Falls, Hwange, Kamativi and Dete.

At least three rhinos have also been killed by poachers in game reserves in Matabeleland South and Masvingo.

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The impact of the war is also being felt through the frequent fuel price increases. Stevenson Dhlamini, an economist from the National University of Science and Technology in Bulawayo, said the Russia-Ukraine war was having a devastating impact on Zimbabwe’s already struggling economy.

“The effect is especially felt in the wheat sector, where supply chains were disrupted by the conflict and consequently created production bottlenecks,” Dhlamini said.

Finance minister Mthuli Ncube last month blamed Zimbabwe’s galloping inflation on the Russia-Ukraine war, saying it was disrupting global supply chains. – The Independent

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ZIMRA customs officer appears in court for criminal abuse of office

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BY STAFF REPORTER 

A Zimbabwe Revenue Authority (ZIMRA) customs officer, Phillip Kuvenga, has been accused of criminal abuse of office for allegedly assisting in the importation of banned motor vehicles.

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Kuvenga, 28, who is stationed at Victoria Falls, allegedly received documents from clients, completed valuation sheets, and carried out the valuation process. However, he is accused of endorsing different chassis numbers to deceive his supervisors during the validation and approval process.

After obtaining approval, Kuvenga would capture the correct chassis numbers in the ASYCUDA World System. He would then alter or replace the documents submitted earlier to his supervisors.

The offense came to light when a motor vehicle that had not yet arrived in Zimbabwe was found to have been already registered. A thorough check by ZIMRA led to Kuvenga’s arrest.

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Kuvenga appeared in court on February 1, where he was denied bail by Magistrate Gift Manyka. He is expected to appear in court again today for another bail hearing.

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Retailers send Mnangagwa SOS as shops continue shutting down over operational woes

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BY ZIMLIVE

The Confederation of Zimbabwe Retailers (CZR) has implored President Emmerson Mnangagwa to intervene and save the sector which has seen various formal retail and wholesale businesses closing shop countrywide due to operational challenges.

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In a statement on Sunday, CZR president Denford Mutashu said the continued closure of formal retail and wholesale businesses is a direct consequence of the tough economic environment that has consistently failed to support formalised sector players who face stiff competition from informal businesses and vendors the majority of whom have no tax obligations to deal with.

Mutashu said his association was concerned that authorities continue to downplay the crisis.

“The recent closure of several outlets under the N. Richards Group, coupled with Spar Zimbabwe’s painful decision to shut down Queensdale Spar, Choppies Zimbabwe’s exit from the market, and Mahommed Mussa’s significant reduction of shop space by 60%, highlights the growing crisis.

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“As the representative association for these and other brands, CZR is alarmed that while formal businesses face enormous challenges, the authorities continue to present a different picture of the operating environment,” he said.

Given the situation, Mutashu said, only President Mnangagwa can rescue the troubled sector.

“CZR therefore calls for urgent intervention from His Excellency, President Emmerson Dambudzo Mnangagwa, to rescue what remains of the formalized retail and wholesale sector,” said Mutashu.

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He said the sector was in urgent need of rescue.

“While CZR acknowledges the continued support from the Ministry of Industry and Commerce, it is clear that the root causes of these challenges are fiscal and monetary in nature. These require urgent and decisive action to ensure the survival of formal businesses.

“CZR therefore appeals to the Presidium to prioritize interventions aimed at saving jobs and mitigating the ongoing wave of shop closures and retrenchments,” he said.

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Crisis in Zimbabwe Coalition vows to resist term limit changes

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BY WANDILE TSHUMA

Zimbabweans are speaking out against proposed constitutional amendments that would extend President Emmerson Mnangagwa’s tenure beyond the constitutional limit of two five-year terms.

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A stakeholder engagement meeting convened by the Crisis in Zimbabwe Coalition today brought together a diverse group of stakeholders, including labor, church, and business representatives, to devise a collective strategy against the proposed amendments.

“The participants firmly argued that such changes would significantly undermine the spirit and collective will of the Zimbabwean populace,” the meeting noted.

They characterized the amendments as “self-serving maneuvers orchestrated by a small clique of politicians pursuing personal ambitions over the broader interests of the nation.”

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“This clique’s pursuit of power undermines the very foundation of Zimbabwe’s democracy,” the meeting emphasized. Furthermore, the participants noted that the proposed amendments “fundamentally contradict the democratic principles enunciated in the country’s constitution.”

The meeting expressed concern that enacting such changes would exacerbate the lingering legitimacy crisis, leading to increased international isolation and a further decline in Zimbabwe’s global standing.

The participants also reflected on how these ongoing attempts to alter the constitution demonstrate a profound disregard of the will of Zimbabweans, as expressed in 2013 when they unanimously voted for the supreme law.

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The meeting further noted that the relentless efforts to amend the constitution will continue to limit the democratic space in Zimbabwe. “The shrinking environment poses a serious risk of consolidating authoritarian practices and eroding the fundamental rights and freedoms of the citizens,” the meeting warned.

In addition to the constitutional amendments, the meeting highlighted the ongoing economic crisis in Zimbabwe, which has severely impacted the daily lives of ordinary citizens. “As inflation spirals and basic necessities become increasingly scarce, many families struggle to meet their fundamental needs,” the meeting noted.

The participants expressed concern that political elites and a small group of individuals with close ties to the government are exploiting the nation’s resources for their own gain. “This systematic looting occurs with little regard for the welfare of the populace, exacerbating the country’s economic plight and contributing to widespread hardship among the general population,” the meeting emphasized.

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To resist these developments, the meeting resolved to:

– *Build a Broad-Based Movement*: Unite various stakeholders to defend democratic space and resist the proposed constitutional amendment. This comprehensive approach seeks to unite stakeholders, including the media, diplomats, community mobilizers, and rapid response teams, to ensure ordinary Zimbabweans are empowered to engage in this righteous and noble cause.
– *Mobilize Nationally*: Prioritize community consultation to safeguard the constitution and nurture a culture of constitutionalism. This mobilization effort must extend across all political affiliations and should commence without delay.
– *Convene a National Convention*: Organize an inclusive national all-stakeholders convention that incorporates all stakeholders to prepare for a united response, specifically a collective VOTE NO campaign, should a referendum be called regarding any constitutional changes.
– *Employ All Permissible Channels*: Utilize mass mobilization initiatives, organize demonstrations, engage in diplomatic discussions, and pursue public interest litigation to challenge and stop the encroachments on democracy.

The Crisis in Zimbabwe Coalition emphasized the urgency of mobilizing citizens across the country to defend democratic ideals and resist any proposed amendments to the constitution.

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