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Zimbabwe has placed Emmerson Mnangagwa in power hoping that he
revive its struggling economy. This expectation is on a downward spiral like
harbaded citizens take to the streets.
Just 14 months ago, people sang and danced in the streets
cheering. After 37 years at the helm, Robert Mugabe had finally resigned.
The mbades sang fighting songs saying that "true independence" had finally arrived.
They hoped that his successor, Emmerson Mnangagwa, would bring back the dark country of Zimbabwe.
and far-off economic boom.
Optimism was misplaced. The economic situation of the country
it's been progressively worse since then.
On January 12th, the horror is installed.
President Mnangagwa has announced a 150% increase in fuel consumption overnight.
It now costs $ 3.31 (local bond note) to buy one liter of fuel. From this, 78% will
taxes, making fuel in Zimbabwe one of the most expensive in the world. Yes
you drive a 40-liter gas tank car, you will now spend $ 265 (local ticket)
on two gas tanks, per month, when an average Zimbabwean earns a simple
$ 300 (local tickets).
"That fuel increase only triggers a price surge
hikes on each of the other items on the shelves is as obvious as the
The inability of Zanu-PF to govern and lead a prosperous Zimbabwe, "says Jacob
Mafume, national spokesperson of the Movement for Democratic Change (MDC).
The shocking fuel surge comes when most of Zimbabwe's fuels
the stations have been dry for weeks.
"I have to spend one day a week in a fuel line and I lose
precious time. I spend six to eleven hours queuing at a time. I am even forced
to do my work in a queue, otherwise I will not be able to go to
work or take my kids to school. The worst thing is that this fuel is not unleaded,
it's actually mixed with ethanol, which means it does not last, "he says.
Zimbabwean resident Grace Zulu.
The fuel surge has pushed citizens to the brink and
The Zimbabwe Congress of Trade Unions (ZCTU), the coordinating body of all Zimbabweans
workers, to ask people to stay home for three days, in protest.
"The government has officially declared its" anti-workers,
ideological position anti-poor and anti-people by raising fuel prices.
Workers' wages have now been reduced to nothing and our suffering has increased
to another level. We must and will mobilize and fight for our survival, "said
the ZCTU in a statement.
Instead of facing the growing anger of Zimbabweans,
after the announcement of the hike, Mnangagwa launched a tour in five countries that
started in Russia and was to end at the World Economic Forum in Davos,
Swiss. At the time of press release, Mnangagwa had finally canceled the
trip, but it was the reactions of citizens before the announcement.
"He does not even care about us or what's going on in the
country. He has money and his family is ready for life while we all fight for
Make ends meet.
"He should be here for the moment and deal with that.
with solutions that work, instead of trying to convince countries that we do not have
know how to put money [back] in the countryside. Even I know that in this state,
Zimbabwe is not investable, "she laments.
Angry citizens, like Zulu, took to the streets of
country in protest. Among them, Nomathemba Ngwenya, an unemployed 30-year-old
Graduate of a master's degree in philosophy.
"I can not believe it's happening. I knew that Mnangagwa
It was not going to be great but I did not expect things to be so bad. We are
in trouble and since coming to power, the situation has been worse. I am
protest today because I have enough and the government must hear us ",
Ngwenya said.
In Bulawayo, in the south-west of Zimbabwe, schools, taxi stands and
the workplaces were empty. Protesters blocked roads, burnt tires and parade
around the city center singing 'Into' yenzayo siyayizonda ', which means' we despise
What do you do".
The government reacted by deploying police and armed soldiers
with tear gas and rifles. This caused panic, violence, looting and the demonstration
extended to residential areas.
"The situation is bad here. Some people have taken advantage of
the situation and the looted shops. When the police arrived, they burned the police car
and everything got worse. I could feel the tear gas in my throat and my eyes
My house. Many people were hurt during this whole affair. The government comes
must act in ways that benefit its citizens, "says a resident of Bulawayo
Mbongeni Mabhena.
In the absence of a positive response from the government, the
spread to other cities.
In Epworth, a poor township southeast of
Harare capital, residents woke up in front of blocked roads and
has degenerated into violence.
"A stay away had been suggested instead of an event because
the state likes to infiltrate the demonstrations and make violence a pretext.
It may have been caused by the protesters themselves, but there are signs
that the state was involved, for example, when there is someone who wears a
AK-47, unpublished in Zimbabwe due to strict gun control ", says
Doug Coltart, political activist and lawyer in Zimbabwe.
Strong cracks echoed around Bulawayo, Harare and even
relatively smaller cities like Mutare in eastern Zimbabwe. The people were
injured, they were shot and lost their lives. He marked a fast
week developing shocking news in this poor country of southern Africa.
"I can not believe it's happening. The president should be
here is sort this. He even left the vice president, who was general in
the army and played a role in the overthrow of Mugabe, in charge. Of course,
he will send the army. That's the kind of language he understands, "says
Ngwenya, who spends hours reading current and historical stories of Zimbabwe
policy.
"Soldiers are in the townships beating people
protest and even break into people's private homes. At that time, my
understand is that more than 200 people have been arrested and at least five have
lost their lives. "
As the protest intensified, the #ShutDownZimbabwe had a tendency
media. The story had begun to repeat itself.
As in the Mugabe regime, where speaking against the
the government was censored, the Mnangagwa government sent a message
order mobile networks to shut down the Internet to silence
people.
This order has been confirmed by the largest company in Zimbabwe.
Econet Wireless telecommunications company.
The founder, Strive Masiyiwa, said on the social networks of society
received a warrant, intended to disconnect Internet services, by the Minister of State
in the office of the president.
"We are obliged to act when we ask and the question
out of our control, "Econet said in a text message to customers, adding that
all networks and providers have suspended their services.
"Non-compliance would result in a three-year sentence of imprisonment
for members of the local management within the meaning of section 6: 2 (b), "said Masiyiwa.
"I did not have a network for most of the day and I'm not sure
How long will it last. Mnangagwa encouraged us to speak when he was
orchestrating a shot but now that he's the one in the hot water he becomes a
problem, "says Zulu.
After two days of chaos, Mnangagwa finally broke his
silence.
"As I have said many times, everyone in Zimbabwe has the
the right to express oneself freely – to express oneself, to criticize and to express oneself.
Unfortunately, we have witnessed violence and vandalism instead of
peaceful and legal demonstrations.
"There can be no justification for violence against people
and the property. Violence will not reform our economy. Violence will not rebuild
our nation, "he said in a statement from Russia.
He said he traveled abroad to convince investors to
economy. He said the answer was positive.
"Alrosa, the largest diamond company in the world, has decided to
launch operations in Zimbabwe, and we have also signed a series of important
agreements that will lead to investment, development and jobs ".
Although the increase in fuel was the straw that broke the camel's back
camel back, for months leading up to the protests, Zimbabwe faces its
worst economic crisis in 10 years.
The economy is in crisis since July 30
peaceful election that became violent. The army and the police clashed
protesters who have again come out on the streets amid allegations that the decision
The Zanu-PF party rigged the vote. Six people died and hundreds were injured
source of uncertainty and doubt for the investor community.
"The signs are there from the beginning. This crisis
is caused by the administration of Mnangagwa in the months leading up to the
elections. There has never been any sign of real improvement, it's a disaster
from the first day, "says Coltart.
Many were skeptical but hopeful when Mnangagwa took power.
Mnangagwa had previously served as Mugabe's right hand man.
Earlier in his life, he played a role in the struggle for independence. It was
is part of a gang called "The Crocodile Gang" and was known for his ruthless
which later earned him the nickname Crocodile.
Mnangawa's reputation has been recounted in various ways. A
Ray Ndlovu's book, published in 2018 and entitled In The Jaws of the Crocodile
tells these incidents.
Mnangagwa was accused of bringing his cruelty to
Zimbabwe independent. He is also accused of having supervised some of the
crimes committed by the state during Mugabe's reign. When he was fired by Mugabe, he
orchestrated a coup with the help of the army led by the vice president
President Constantino Chiwenga.
"Zimbabweans were only pawns in a fight between
Mugabe and Mnangagwa. I do not think he ever intended to repair the
problems that we have in this country. If I see a queue, I just enter before I
even ask what this is for there is a shortage of cooking oil, even
Zulu says.
The monetary crisis
One of the problems that the president inherited from Mugabe is a
monetary crisis.
Zimbabwe abandoned its currency in 2009 and adopted
currencies like the South African rand and the US dollar. Among
shortage of foreign currency, in 2016 he introduced the bond note that the
the claims of the government are equivalent to the US dollar.
"There was a lot of hope for many Zimbabweans who
because they thought the new administration would do a lot better, but they were
so desperate for change. You would think any administration that came
after that would be listening to try to solve the problem for the
ordinary citizen, but there is no evidence of that, "says citizen Kukhanya
Ndlovu.
Hyperinflation is aggravated.
The bond note is sold on the black market at $ 3 and
inflation is close to 21%. The problems are aggravated by the high unemployment rate in
the country, but even those who have a job are not paid enough. Zulu, for
For example, a secretary earns about 450 bonds a month.
"When we are in the field, we understand how Zimbabweans
suffer and suffer for a long time. For some reason, the
the government does not understand. At some point, something gives and something has to
Dr Nkosana Moyo, politician, economist and former president of Zimbabwe
Minister of Industry and International Trade.
It got worse.
Businesses continue to shut down or demand
motto. Bulawayo, which was once the country's industrial center, closed an important
many of its factories. Spaces are now used as places of worship.
One of the last companies to seal its doors is
National Foods, one of the largest food manufacturers and distributors
some products. There is also Olivine Industries, which makes soap and cooking
oil. He suspended his production and put the workers on leave for an indefinite period
because it owes $ 11 million to foreign suppliers.
"The company had a hard time restarting its manufacturing activities
operations in January 2019 due to lack of imported raw materials. As such
remains closed, "says Olivine Industries in a statement.
There is more.
As of Jan. 4, Zimbabwe's largest brewery, Delta
Corporation, began selling only in hard currency to keep its doors open.
"Our business has been affected by the predominant factors
shortage of hard currency, which means that the company does not respond to your
orders, "he said in a statement.
It is clear that for money to work, people have to believe
in her. Nobody believes in the bond rating or its valuation 1: 1. The government
she herself does not seem to believe it.
"When the president announced the new fuel prices, he hinted
a 1: 3 exchange rate between the dollar and the bond note. He reports that
there is no honesty in the way the government communicates with the public.
This crisis is more painful and almost unforgivable because it does not indicate any
lessons were learned from 2008, "says Moyo.
In 2008, Zimbabwe experienced an impressive inflation of
80 billion, printing notes up to 100,000 billion dollars. When the Zimbabwean dollar
tanked, saving life disappeared from the banks; the stores were empty and the teller machines dry. In
2019, panic and knee-jerk reaction saw people hanging on to their United States
dollars and move them out of the country.
"People have forex but it's not with the government
structures because people do not trust banks because of what happened in 2008
where there was a shortage of everything and the hyperinflation was terrible. Part
of the crisis is exaggerated, people have the forex, "says the former deputy
Bright Matonga, Minister of Information in the cabinet of Robert Mugabe.
The government encourages people to put their banks in the bank
motto. He says that he has now opened foreign currency bank accounts that he
the claims are safe.
"The legislation protects your account. At the time, they used
to loot your account, but now they can not. You can transfer your US dollars
dollars and can go to the bank and withdraw everything, "says Matonga.
According to Finance Minister Mthuli Ncube, the country also
plans to bring the Zimbabwean dollar back in the next 12 months. A lot
Zimbabweans think it will not work.
"Money is a symptom, not the cause. This is not serious
which currency we adopt, we will find ourselves at the same point as long as
because we do not have a government that understands what needs to be done. Our
The problem is the irresponsible behavior of the government. How do you run a country
who has a budget of more than 90% who is in recurrent expenditure? How to do
you run a country with a government that does not understand that taxes should
to be a small fraction? "Moyo asks.
The demonstrations took place a few days before the World Economic Forum
gathering in Davos. Mnangagwa was to appear under the banner of his
"Zimbabwe is open for business" is the motto. This year, he also visited Azerbaijan,
Kazakhstan, Belorussia and Russia to attract investment. Before
cancellation of the trip there was public pressure because citizens felt aggrieved
about his decision to attend.
"Instead of accepting his blatant failure to transform the economy
the cartel hides now under the pretext of "mega offers" in curious corners
of the forgotten world such as Uzbekistan, Kazakhstan and other places where you can
have never heard of it, "says Mafume.
Moyo thinks no one is going to invest money in Zimbabwe
until Zimbabwe demonstrates investment-friendly behavior and
can manage his own finances.
"These mega offers do not come. What people are talking about
on are indications. People are interested in Zimbabwe but investors
look for certain signals, without which they will not put money into the
country, "says Moyo.
"What product does it take in Davos? Does he really think
investors around the world are stupid enough not to see that they should not
their money in the country? Last year he should not even have gone to Davos.
I do not know why he even goes to all these countries. It's totally
absurd."
Gaining the trust of people is one of the few things that Matonga and
Moyo agree on.
"Leadership should come from the top so that people see the
the gravity of the mantra that Zimbabwe is open to business. We must obtain
trust our own people here at home and then get the trust of Zimbabweans in
the diaspora because they bring a lot of foreign currency, so we can go
outside, says Matonga.
In fact, according to Moyo, with this government, there is no
sector in which it is prudent to invest.
"At the country level, there is stupidity. If all you see is
Irrationality and kleptocracy, how can nothing survive? "
Moyo says Mnangagwa should first create an environment
which is conducive to investing before wasting money on travel to sell a
product that will not be purchased.
"In terms of investment, if I were president, I would have
approached two categories of investors. We would be someone who is
already invested in Zimbabwe and then the regional investors who are mainly
South African. These are people who understand the environment and who would help
the economy to start taking off. "
On the other hand, Matonga blames economic sanctions,
and not the government, for the fall of Zimbabwe.
"Anyone who wants to bring money to Zimbabwe must get
authorization from the United States Government. As long as the sanctions remain,
it will be difficult to effectively manage business challenges. the
Sanctions are the root of all our problems, "said Matonga.
Coltart, who lived eight years in South America and the United States
returning to Zimbabwe to be an activist and a human rights lawyer,
the policy mistakes that are the main culprits of the lack of investor confidence.
"As Zimbabweans, we want stability and investment, but
is clear that the government does not know how to do that. Their policies are
badly, they are wasting government funds and the wrong cabinet is in charge, "said Coltart.
said.
Matonga, who now has a business that helps people in search
investing in Zimbabwe, says Zimbabwe is open to business.
"We are currently trying to put
our house in order. It's a very difficult process but the new minister is
try to put systems in place to make sure the business is done properly. This process
It's painful, but it will take time to see the results, "says Matonga.
Coltart encourages government to address policy issues, to engage
people dedicated to the revival of the country's economy and looking for good
investors in mining and agriculture.
"We need credible investors in the mining and agricultural sectors, but a
government like ours attracts the worst kind of investor like the sharks that go
in a crisis situation in order to make a huge amount of money because no one
the rest will go there. In general, this type of investment is not good for the
country, "says Coltart.
Matonga shares the same feeling about the direction of the investment
areas.
"Yes, we need to invest more in agriculture to start
import into the region; we need to invest more in the mining sector in order to have enough
gold reserves to support our currency. The tourism sector is doing very well,
Matonga said.
He thought, however, that it was unfair to say that Zimbabwe was not
attract investors and the government does not do its job.
"There are many mbadive offers that have gone into the
country. On the one hand, there is an agreement on electricity that has happened and soon Zimbabwe
sell electricity throughout the region. Our tourism sector is also
do very well. Last December, it was 90% reserved. Investors are listening
for us because our new minister is also credible. He is invited all around
the world to talk about opportunities in Zimbabwe, "he says.
The challenge so far is that if investments are made,
It is becoming difficult to recover money because of cash shortages in Zimbabwe.
"I had planned to expand my agricultural logistics business to
Zimbabwe but the problem is that I would have invested in rand and people
would have paid me in bond notes and I could not have used that
money anywhere outside of Zimbabwe, that's where I really need to use it, "
says South African entrepreneur Mark Zondo.
To make matters worse, even the ticket is rare.
According to the governor of the Reserve Bank, John Mangudya, in 2017, 96% of transactions
in Zimbabwe were electronic. So, if you are a company operating in Zimbabwe,
you would have money on a mobile money account or a bank account, but not on hand.
Matonga says it's not the ideal situation but things are going
improved.
"Doing business in Zimbabwe is easier than in the
past. For example, the government abolished the indigenization law that required
a foreign investor had to partner with a local to start a business. If you
are a company that imports and exports, you can also get at least 50 percent of
your motto in hand to keep running, "he says.
Although this is the case, investors will have to take the
the remaining 50% reduces their profits.
Matonga insists the government is doing well. "The Minister
of finance closed the loopholes and even the black market rate is
descent. He also introduced a 2% tax on mobile transactions and
has raised more than $ 550 million, which means we are able to fund the government
projects, road building, infrastructure development, "he says. He blames
current fuel shortages on increased car imports.
"At the same time last year, we had about a million cars on the market.
road and we now have about 1.7 million. In the last six months, Zimbabweans
imported about 700,000 vehicles, putting the forex to the test ",
Matonga said.
However, it is appropriate that there is a pressure of exchange
crippling the country.
"When you do not have your own currency, it's extremely
difficult. If you want to import the necessary raw materials or equipment,
difficult to obtain foreign currency. You have to get it on the informal market
where rates are three times higher, "he says.
Moyo, who ran against Mnangagwa during the presidential election
elections, says that he was called by Mnangagwa to help boost the economy, but their
the relationship was short lived.
"I allowed myself to be invited to the government and I
joined. I then realized that I could not work for this government. The way the earth
question was dealt with and how the profession of industries unfolded in a
In the same way, I just felt it was going badly. Political positioning
Zanu-PF was not strategic, so I told the president that I was not going to work for
an administration like that, "said Moyo.
"He said that he had brought me to make those changes, but I had
enough evidence because of the number of times I went to him and asked him
do some things with which he would agree and never do them.
According to Moyo, the evidence to date shows that Mnangagwa is
not able to step back and actually repair the country. He is at
people to repair Zimbabwe.
"There is despair. Young men spend their days
play board games while he is drunk with alcohol or drugs. When I asked them
in this regard, they would tell me that this is the only way to maintain their mental health
because there are no jobs. People do things that they would not do otherwise.
As a country, we have committed a crime against our youth, "said Moyo.
Last year, for the first time in 37 years, the country surrendered
at the polls to choose a leader and 133 parties took part in the elections, and
23 candidates ran for president. Mnangagwa won by 2,460,463 votes (50.8%),
followed by Nelson Chamisa of the MDC with 2,147,436 votes (44.3%).
"Zimbabweans need to know what democracy really is. We must learn that elections mean choosing the person who will solve the problems facing the country at that time. We must take responsibility for our actions, "says Moyo.
Taking responsibility imposes on people the burden of
drive the change in the direction that they want. This has been done before.
Another wait of 37 years might be too late.
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