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Zimbabwe dollar’s second death predicted

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BY RAY NDLOVU

When Zimbabwean businessman Nigel Chanakira asked 100 chief executive officers at a seminar in Harare on January 27 if they were willing to use the local currency, only one raised his hand.

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That reluctance is a stark demonstration of the government’s failure to win confidence in the Zimbabwe dollar, the reintroduction of which Finance minister Mthuli Ncube has staked the stagnating economy’s recovery on.

For the second time in two decades, Zimbabweans are abandoning their local currency.

At restaurants, a simple request for “the rate” sees one’s bill halved if it’s met in hard currency, and supermarkets openly offer discounts for goods purchased in United States dollars.

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The government paid public workers their Christmas bonuses in dollars, and the revenue service collects a third of its income in greenbacks.

“We can’t deny the reality,” Chanakira, the founder and former CEO of now-closed bank Kingdom Financial Holdings Ltd., said in an interview.

“When you get the Zimbabwe dollar you spend it quickly. No one wants to save in that currency.”

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Between 2009 and 2019, Zimbabwe’s economy was dollarised after hyperinflation led the government to print trillion-Zimbabwe dollar notes before abandoning its currency, leaving the country’s name synonymous with economic malfunction.

While the subsequent dollarisation tamed price growth, it hurt businesses as neighbouring countries using their own depreciating currencies undercut Zimbabwean manufacturers.

“Zimbabwe had become uncompetitive by 2013 and was burdened by an expensive workforce,” John Legat, CEO of the country’s oldest brokerage, Imara Asset Management Ltd., said in a note to clients.

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In February 2019, the government dropped a peg that kept a precursor of the Zimbabwe dollar at parity with the US dollar.

In June, it was rechristened the Zimbabwe dollar and use of foreign currency was briefly outlawed.

Today the currency trades at 115 to the greenback, and more than twice that on the black market.

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While inflation slowed from a 12-year high of 837 percent in July 2020, it was at 61 percent in January, still rapidly eroding the value of the local unit.

Officials including Ncube, a former Oxford University lecturer, and Reserve Bank of Zimbabwe Governor John Mangudya, said government policy is to stick with use of the Zimbabwean dollar.

“The country is not re-dollarising,” Mangudya said in a interview on January 17. “We need to find a home for our currency.”

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Ncube and his ministry didn’t respond to requests for comment.

Alois Burutsa, the lone defender of the Zimbabwe dollar at Chanakira’s meeting, said in an interview that “without our own currency, our exports become uncompetitive.”

He’s general manager of Buy Zimbabwe, an organisation that promotes local goods.

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Capitulation

Yet central bank figures show that 44 percent of transactions in the country are conducted in greenbacks.

The American currency is used to pay for everything from fuel to food, passports, medicines and school fees.

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Econet Wireless Zimbabwe Ltd., the country’s largest mobile phone operator, offers additional airtime and data if purchases are made in US dollars.

With the Zimbabwe dollar untradeable outside the country, companies need foreign currency to pay for imported equipment, consumer goods, and to placate an increasingly dissatisfied workforce.

And it’s not only businesses that are seeking alternatives to the local currency.

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The government itself is increasingly finding it has to pay in US dollars if it wants to get things done.

Already it’s told public workers that they’ll be paid partly in hard currency this year.

According to Imara, the brokerage, 45 percent of infrastructure contracts are being met in dollars.

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“Dollarisation is the ultimate outcome of a failed economic policy,” said Gift Mugano, executive director at Africa Economic Development Strategies, a Harare-based consultancy.

The Zimbabwe dollar “will be in the graveyard” by June, he predicted. Imara says it’ll be largely obsolete by the end of the year.

Chanakira was more optimistic: he said the currency could survive for another two years. – Bloomberg

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National

Zim hosts 7 000 children, regional delegates for World Children’s Day

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UNICEF

BY LEONARD NCUBE

Part of the over 7 000 children and delegates from across Southern Africa who are expected to attend the World Children’s Day celebrations in Victoria Falls tomorrow have started arriving in the resort city, which is already experiencing huge vehicular and human traffic.

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The Chronicle, reports that, Zimbabwe, in partnership with Unicef, is hosting the children from seven SADC countries — Botswana, Malawi, Mozambique, Namibia, South Africa, Zambia and Zimbabwe, for the World Children’s Day.

The day is observed every November 20 but celebrations will be held tomorrow at Baobab Primary School so that the programme does not disturb learning and examination processes.

High ranking delegates from Namibia, and children from five of the countries had arrived yesterday, with the majority expected today and tomorrow.

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Public Service, Labour and Social Welfare Minister July Moyo, his Permanent Secretary Mr Simon Masanga, Matabeleland North Provincial Affairs and Devolution Permanent Secretary Ms Sithandiwe Ncube plus officials from the Ministry of Primary and Secondary Education are already in Victoria Falls coordinating preparations for a successful event.

Proceedings will start this morning with a golf and chess tournament for children at Elephant Hills Golf Course and Mosi-oa-Tunya High School.

This will culminate in a prize-giving ceremony for winners of the two tournaments at a dinner to be hosted by the First Lady, Dr Auxillia Mnangagwa, this evening at Elephant Hills Resort.

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According to update reports at the preparatory meeting chaired by Minister Moyo yesterday, the golf and chess tournaments will start this morning with junior golfers teeing off and those playing chess also taking part.
There will also be about 200 non-golfers who will also be taken to the golf course so they learn the sport.

The main event will take place tomorrow where President Mnangagwa is expected to be joined by his counterparts and their representatives from the six SADC countries that are part of the programme.

Proceedings will start with a road march by children between 7am and 9am ahead of the main programme.
After the proceedings and lunch, a total of 570 children will be taken for a tour of the Victoria Falls Rainforest, a Unesco designated World Heritage Site and one of the Natural Wonders of the World.

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Transport, accommodation and feeding logistics for all the children have been arranged so that they enjoy their day.
Speaking at the meeting, Minister Moyo said he was impressed by the Whole of Government approach exhibited by various ministries and departments, in partnership with Unicef, which is co-hosting the event with Zimbabwe.

“We will assembly at the Elephant Hills where the First Lady and other delegates will participate at the children’s dinner. Some have started arriving so we will end the dinner early so that the children go and rest,” he said.

“On Saturday they will march from 7am so that they arrive at the venue by 9am. After the programme, 570 children are what we are going to cater for at the Rainforest.

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“In the evening there will be a monumental lighting of the Flame of Hope on the ‘No Man’s Land’ on the Victoria Falls Bridge officiated by Vice-President General (Retired) Dr Costantino Chiwenga. That is the broad outline of the programme,” said Minister Moyo.

Matabeleland North will provide the bulk of the 7 470 children expected at the event.
According to the organising committee, 450 will come from the country’s nine provinces other than Matabeleland North who will provide 7 020. About 1 200 of these will come from the six Matabeleland North districts while 5 820 will come from Hwange District.

Of these Hwange children, 4 520 will arrive early tomorrow morning while 1 300 are coming today.
The children will be staying at Rest Camp and several schools that have been designated as villages for them.

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The Environmental Management Agency has identified 60 volunteer litter pickers and still wants 40 more, the mop out litter during the course of the two days.

The venue is almost ready will tents set, chairs set and final touches being done.
If anything, Baobab Primary School, looking more like a mini-city because of the set-up, are the biggest beneficiaries of the programme considering the amount of rehabilitation work being done at the school.

Classroom and administration blocks have been repainted, landscaping done on the school grounds while a perimeter fence is being erected and a new gate opened.

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A borehole is to be drilled at the school and Minister Moyo yesterday said the facility should be allowed to run a tuck-shop during the event so they benefit from hosting the crowds. There will also be various exhibitors at the event while a roadshow will also be done to publicise the event.

Unicef country director, Ms Etona Ekole, appreciated work done by the organising committee so far.
“Thank you for the organisation and dedication you have shown. We are impressed by the commitment and I think we are going to have incredible celebrations,” she said.

The 2024 Regional World Children’s Day commemorations will build on the Calls-for-Action of children and the commitments by the Heads of State made at the previous celebrations, which focused on education, climate, children with disability and the need for society to be inclusive and uphold children’s rights.

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The children from the participating countries will present an updated call for action and hold their governments accountable for the commitments made to promoting children’s rights.

Every 20 November, the world celebrates World Children’s Day, which highlights the right to participation, which is one of the underpinning principles of the United Nations Convention on the Rights of the Child (UNCRC).

Since 2021, four countries — Botswana, Namibia, Zambia and Zimbabwe — have come together to celebrate the Regional World Children’s Day jointly, and this year Zimbabwe hosts the programme building on the momentum created by the commemorations in Botswana in 2021, Zambia in 2022 and Namibia last year.

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Malawi, Mozambique and South Africa have been invited to join the commemorations making seven attending countries.

SOURCE: THE CHRONICLE

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ZESA struggles to meet demand as Hwange fault and Kariba dam water levels bite

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BY WANDILE TSHUMA

Zimbabwe Electricity Supply Authority, ZESA has announced that the national power grid is experiencing reduced electricity generation capacity due to a technical fault at Hwange Power Station and low water levels at Kariba Dam.

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“ZESA Holdings would like to advise its valued stakeholders that the national power grid is currently experiencing reduced electricity generation capacity due to a technical fault at Hwange Power Station,”

“This has been further compounded by low generation capacity at Kariba Power Station, resulting from low water levels.

Our technical teams are actively working to resolve the fault at Hwange to minimize the impact on our customers.”

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ZESA STATEMENT

Meanwhile, the Zambezi River Authority has sounded the alarm on the dire water levels at Kariba Dam, which has dropped to a critically low 2.40%.

This has left Zimbabwe and Zambia facing a precarious electricity supply situation.

As the power cuts continue, communities are feeling the brunt of the outages.

Businesses are struggling to operate, and residents are forced to go without electricity for extended periods. The situation has also affected water supply, communication, and healthcare services.

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Other news organizations and research have highlighted the severity of the power crisis in Zimbabwe.

According to a report by the Zimbabwe Coalition on Debt and Development, the country’s energy sector is facing a myriad of challenges, including aging infrastructure, lack of investment, and a heavy reliance on imported electricity.

The report notes that the power cuts have had a devastating impact on the economy, with businesses losing millions of dollars in productivity and revenue.

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The situation has also affected the livelihoods of ordinary Zimbabweans, who are struggling to access basic services like healthcare and education.

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Stepdad accused of killing three months old daughter

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BY STAFF REPORTER 

A Shurugwi stepfather has appeared in court facing allegations of poisoning to death his 3-month-old stepdaughter.

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According to the National Prosecuting Authority, Tatenda Masunda (24) appeared before the Shurugwi Magistrates’ Court facing a murder charge.

The State alleges that on the 3rd of November, at around 5 AM, the accused stopped the infant’s mother from taking the baby with her to a nearby borehole where she intended to do the laundry.

He then retrieved a poisonous substance, commonly used in gold purification, which he had hidden in the yard, and fed it to the infant.

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The accused later brought the visibly distressed and crying infant to the mother.

The mother rushed the infant to Zvamabande Hospital.

She was referred to Shurugwi District Hospital, where the baby was pronounced dead upon arrival.

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The accused fled to Chegutu, where he was arrested on the following day.

He was remanded to the 21st of November
pending investigations.

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