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Tax issues of medical claims

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Sickness has no respect of affluence and it befalls us all. At a given point in time, we may not all be in a position to cover the medical bills associated with such sickness and to guard against that some may decide to take medical insurance. 

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Whenever one visits the doctor, a claim form is completed by the health service provider (HSP) for an onward refund by the medical insurer. 

Developments in the country however, make the HSPs having to wait for a long period spanning into more than 12 months in some cases. 

What is brought to the fore is the issue of when such long outstanding claims would be reported for income tax purposes. 

This is an issue of contention that needs to be ironed out to avoid situations whereby the taxpayer or the taxman tend to lose out on tax savings or tax revenue respectively due to ignorance or failure to understand the treatment of these medical claims. 

The purpose of the article therefore is to clarify the issue in respect of how medical claims are treated for income tax purposes.

At what point are claims recognised as income?

Income is brought to tax when it is received or when it accrues, whichever occurs first. 

In reference to the phrase “accrues” the law has stated that income accrues when a taxpayer becomes entitled to it. 

An accrual is distinguished from a receipt because it is based on a taxpayer becoming entitled to an amount. 

A medical service provider becomes entitled to payment upon performance of services or supply of goods and normally this is signified by an invoice which is an amount which is non-contestable. 

A non-contestable invoice is an invoice which is complete in respect of quantity supplied and the price of the supply and there are no conditions attached whatsoever as to the service provided and the amount to be charged. 

The fact that an amount is long outstanding or is paid in installments is not a condition precedent. 

Coming back to the definition of an invoice, an invoice is a document instructing the other party to make payment for goods or services supplied. 

It can therefore be argued that a medical aid claim form is an invoice. 

The medical fraternity provides for the Association of Health Funders of Zimbabwe (AHFoZ) rates on medical aid claims and these are well known within the medical fraternity. 

This means the conditions precedent are satisfied at the point of completing the claim. Hence the moment a claim is completed by the patient, the HSP becomes liable to pay tax on income accruing under the claim notwithstanding the money will be recovered from a medical aid society at a later date. 

The Medical and Dental Practitioners Council of Zimbabwe sets a tariff to be charged on any procedure performed by a medical and dental practitioner. 

If the tariff exceeds the amount set by the AFHoZ rates for a medical procedure the excess will be paid by the patient. 

This therefore buttresses the fact that a medical aid claim form suffices as an invoice for the payment of claims made by a medical service provider.  

Tax in respect of waiver of right to receive payment

The fact that the taxpayer has waived the right to receive the payment or will receive the amount in instalments does not defer the tax point. 

In other words the condition of payment cannot postpone point of accrual. Watermeyer J in the case of Lategan whilst stressing this point had this to say “… He has not become entitled to a right to claim payment in the year of assessment, but he has acquired a right to claim payment of the debt in future. This right has vested in him, has accrued to him in the year of assessment, and it is a valuable right which he could turn into money if he wishes to do so”. 

This therefore means that, so long as the taxpayer becomes entitled to income, then the income has to be declared in the year of assessment. Any postponement of declaration of such income would be a violation of the tax laws. 

HSPs cannot avoid income tax on long outstanding claims.

However, in the event that the claims become bad debts, these can be claimed as expenses to the extent that they are proved to the commissioner to be irrecoverable. 

This is a contentious matter requiring a separate article.

HSPs are found in a fix to declare income for tax purposes and pay taxes on amounts not yet received, on the basis of their accrual. 

In the event that the HSP omits the income in his/her return and the error is picked by the Zimbabwe Revenue Authority (Zimra) he/she may face stiff penalty measures. 

The revenue authority may raise an assessment in terms of the law for the understated income and request the HSP to settle the understated tax plus additional tax of 100 percent and interest at 10 percent per annum on the understated tax.

The HSP should therefore take into account outstanding claims in their returns to avoid the penalties. If you do not have the money to pay you should agree on a payment plan with Zimra to avoid the penal measures.

Meanwhile Matrix Tax School will be hosting its 2019 Victoria Falls Tax Conference from May 22 to 25, 2019. 

Also join us on our 2019 VAT Seminar on the March 21, 2019 at Meikles Hotel to obtain an in-depth understanding of VAT rules. 

n Tapera is the Founder of Tax Matrix (Pvt) Ltd and the CEO of Matrix Tax School (Pvt) Ltd. He writes in his personal capacity.

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Power transition in Zim: From frying pan into fire?

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A time comes when overwhelmed Africans desperately desire to see a change in leadership and don’t pay rapt attention to the details of the next leadership provided it is a new face. 

This desperate measure for a change can’t be totally disdained, however, what is the need for a revolution without a resolution to be better than the previous administration?

This is a disturbing attribute of Africans that must be addressed judiciously; a change in leadership shouldn’t come with a pain to pay as the price. 

Just like disgruntled Nigerians cried out for a change in power, Zimbabweans also took to the street to celebrate the exit of the world’s oldest leader. 

In 2015, Nigerians had what they wanted but over the years got below what they bargained for. 

In November 2017, Zimbabwe experienced a peaceful and bloodless power transition; it was the talk of the world. 

After the transition, Zimbabweans took to the street to celebrate the revolution; it was a great celebration and a beautiful sight. 

Also, they cheered Emmerson Mnangagwa as their desired head of state.

Who is Mugabe?

The world’s oldest head of State rose to political power in 1980 by leading a guerrilla war against the colonial masters of his country. 

He trained as a teacher and spent 11 years as a political prisoner under Ian Smith’s Rhodesian government.

Mugabe led the Zanu movement and was one of the key negotiators in the 1979 Lancaster House Agreement which led to the creation of a fully democratic Zimbabwe.

Robert Mugabe born in 1924, joined the pro-independence National Democratic Party (NDP) in 1960, becoming its publicity secretary. 

In 1961, the NDP was banned and reformed as the Zimbabwe African People’s Union (Zapu). 

Two years later, Mugabe left Zapu for the Zimbabwe African National Union (Zanu, later Zanu PF), his political home before he was ousted.

In 1982, Mugabe sent his North Korean-trained Fifth Brigade to the Zapu stronghold of Matabeleland to smash dissent.

Over five years, 20 000 Ndebele civilians were killed as part of a campaign of alleged political genocide. 

In 1987, Mugabe changed methods, inviting Zapu to be merged with the ruling Zanu PF and creating a de facto one-party authoritarian state with himself as the ruling president.

In the early years of his rule, Mugabe was a hero, building schools and hospitals and was indeed a great leader.

Unfortunately, he became infamous towards the end of his rule; he overstayed his welcome and had to leave the ruling seat through the back door. Mugabe moved from hero to zero!

The man called Mnangagwa

Emmerson Mnangagwa — born in 1942 — is a revolutionary and political leader of Zimbabwe, he became the head of state in 2017. 

He was the vice president under the administration of Mugabe before he is fired but came back into power as the ruling president in a coup d’etat.

In 1965, he led a group called “crocodile gang”, attacked white-owned farms in the Eastern highlands. 

In the same year, he bombed a train and was jailed for 10 years. In 1980, he was assigned to be Mugabe’s bodyguard and accompanied him to Lancaster House Agreement, which led to the independence of Zimbabwe.

After independence, he held various Cabinet positions under Mugabe-led administration. He was Zimbabwe’s first minister of state security and supervised the Central Intelligence Organisation.

Mnangagwa was considered the country’s spymaster. Despite his denial, he is accused by foreign governments, opposition party and human rights group of being the brain behind 1980s civil conflict in which thousands of civilians were killed.

Served as the minister of Justice, Legal and Parliamentary Affairs from 1989 to 2000. From 2000 to 2005, he was the Speaker of Parliament. 

However, he was relieved of his duties and demoted to minister of Rural Housing for openly declaring to succeed Mugabe. 

Mnangagwa later paid his allegiance to his master during 2008 general election, he ran Mugabe’s campaign and played out the political violence against the opposition party; MDC.

After his display of loyalty, Mnangagwa was appointed as the minister of Defence from 2009 to 2013 and became minister of Justice again. 

In 2014, he became the vice president. As the vice president, he focused on reviving the country’s agricultural sector and expanding its global trade connections. 

He negotiated trade deal with Russia, China and South Africa. In 2015, he led trade delegates to Europe to try and re-open trade ties that had been severed since 2001.

Post Mugabe era

On his return to Zimbabwe, masses gathered to welcome him home, Mnangagwa said to the thousands: “Today, we are witnessing the beginning of a new and unfolding democracy”. He assured the people of a peaceful and a more democratic reign, so, he was seen as the hero.

During his campaign for the 2018 general election, he promised to be a business friendly leader and to return the country back to economic prosperity. 

Unfortunately, his promises have not been met; the economic catastrophe facing Zimbabwe began to actualise as there are shortages of food, cash and fuel prices skyrocketed. 

It is not yet Uhuru, as Mnangagwa has shown inability to jettison the State centrist predilections of his predecessor.

Mnangagwa’s administration is battling with economic destructions wrought through the hands of Mugabe. The once productive country is ravaged by lavish spending, huge debt, corruption.

Just like the era of Mugabe, the current administration resulted into printing it’s own faux money that has led to hyperinflation and monetary base collapse in the country.

The official year-on-year inflation rate rose from 2.97 percent in November 2017 to 3.56 percent in January 2018 and by November 2018 it reached 31 percent; the highest since the inception of multi-currency regime.

On this backdrop, there was shortages of food, cash and major shops that sells food stuff were shut. 

The situation that broke the camel’s back was the announcement made by the president in January 2019. 

He announced a 150 percent rise in the fuel prices, according to him, the price rise was aimed at tackling shortages caused by an increased in fuel use and rampant illegal trading. 

Is that a strategic way of reducing illegal trading? 

No consideration about the welfare of the masses, they should come first irrespective of the measures the government seek to employ.

According to Global Petrol Prices, Zimbabwe now has the most expensive fuel in the world. Zimbabweans could not afford to go to work again because of the sharp increase, commodities became more costly while salary remains the same; this led to a nationwide protest.

The police and military retaliated to the protest with a crackdown that resulted in thousands of arrests and more than ten people were killed. 

In response to the crackdown when interviewed by France24, Mnangagwa showed no remorse, saying, the protest and claims of death was staged and plan against his administration. He further said that the “claims” of misconduct by the security forces would be investigated.

Has the man once seen as “our hero” now become a terror to the Zimbabweans? One of the bereaved admitted: “I am angry about our government, it is a ruthless government. It is a careless government, they don’t care about humanity.” 

The crackdown widely displayed that the Mnangagwa administration has slipped into the era of brutal treatment of civilians. Indeed, once a military man, always a military.

Concluding, indeed desperate situations might warrant desperate measures, however, it is time Africans stopped seeking for any alternative in the bid to get rid of the present leadership. 

A revolution should usher in a more democratic and just system, not another round of autocratic rule. 

Zimbabweans have chosen this path already, one can only hope it is not from fry pan to fire and that it is not a journey under Mugabe II, which can be more toxic if you ask me.

 

Omolola Lipede (The Talking Pen) is a contributor to The African Progressive Economist and the opinions expressed here are her own. She is currently an Economics post graduate student at the University of Ibadan.

Disappointed

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EDITOR — Traditionally, meals in Zimbabwe are prepared three times a day (breakfast, lunch and dinner) and it is my concern that with the so-called new dispensation the Energy and Power Development ministry should encourage the use of gas for cooking so as to save power.

The ministry should create awareness on the use of gas as a way of saving scarce electricity in the country.

Most people are afraid of using gas, but if awareness is carried out, most people will resort to using gas.

I am sure if most of us use gas for cooking, we will be able to save a lot of power in the country, hence less load-shedding.

I have seen in Botswana, they do not experience the load-shedding because most households use gas.

There are also a lot of gas service providers who deliver into homes, which is something we should also be doing.

It would therefore be fair for the ministry to put a duty-free policy on gas and solar equipment so that we can access them at a reasonable rate.

If we use gas for cooking, which is faster, and then solar geysers for heating bathing water, we save a lot of energy and end the frustration of load-shedding. The ministry should see what our neighbours are doing and learn from them.We are tired of the load-shedding and we now expect action.

HCC should revise its parking laws

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EDITOR — On Tuesday I was  driving  from Marondera to Bulawayo in my Honda Fit.  Around 11 am, I arrived in the Sun-shine City of Harare.

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 I decided to check on my relative at the Trust Towers Building along Samora Machel Avenue. I properly parked my car along Samora Machel Avenue directly opposite the Trust Towers building.  

I looked for the parking marshall but could not see one and decided to dash to the Trust Towers. After about 10 minutes I dashed back to my car. The plan was to arrive in Bulawayo before 3.30pm. I had a very crucial meeting. Upon getting into my car and to my utter shock and horror the right front wheel was under clamp. I tried to investigate why a whole city council would resort to such a draconian measure. 

To my dismay the parking marshal appeared and told me that I had parked without a pre- paid ticket. I tried reasoning with her but she referred me to Traffalga Court were I tried to explain  that did not see any parking marshall the time I arrived and decided that I would pay the 2RTGS dollar when I come back. The officers at Trafalgar Court could not even understand me despite the fact that I told them I was a Bulawayo resident as evidenced with my City of Bulawayo parking disk 

I had properly parked my car without crossing any lines of my parking box

I was told I had to pay 57RTGS dollars for my car to be released. 

I felt my fundamental rights as listed in the freedom charter were being curtailed .

I suggest that Harare City Council increase the number of parking marshals.

They need to stop the practise of clamping vehicles, it is primitive and reminiscent of the spikes era.

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A divided opinion on national dialogue

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Zimbabwe’s prolonged crisis has not only polarised society but it has simultaneously sown a pervasive sense of doubt, suspicion, mistrust and even indifference on anything political, especially when it has to do with Zanu PF government. 

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The current national dialogue as initiated by President Emmerson Mnangagwa has unavoidably suffered the same fate. 

There are sharp divisions in public opinion on the purpose and possible outcome of this process. 

Unfortunately, these perceptions have a huge bearing not only in the process but outcome of the dialogue and hence a subject worth discussing. 

In my previous instalment on this subject, I observed that there was some disquiet and serious pessimism. 

Considering the context of the national dialogue coming hard on the heels of a national protest turned riotous and subsequent killings, abductions and rape cases allegedly by security personnel; the doomsayers were not entirely wrong. 

I also pointed out that some people saw the dialogue as Zanu PF’s ploy to hoodwink people and divert attention not only from economic problems but recent blatant human right violations.

In this article, I will interrogate further the implications of this assumption that the national dialogue is nothing but a farce calculated to rescue Mnangagwa’s tottering public image as a reformist leader.

It is important for a genuine debate on this pressing national concern. That things are not at their best for Mnangagwa needs no emphasis; the post-election soldiers shooting of protesters and bystanders, the spiralling inflation and decaying economy, shortages of basic commodities, fuel price hike(currently service stations have run dry), the riots and shooting of even more people. 

The strong condemnation of the Government of Zimbabwe was both internal and international, including by countries like Britain, that were warming to the so-called reformist Zanu PF.

It is very possible then that perhaps Zanu PF just wants to ease pressure from itself by using the national dialogue to buy time. If that were to be the case one further asks the question to what end and who would be the loser? 

My answer to my own question is that Zanu PF would be the loser and Mnangagwa’s credibility would have been shredded beyond repair. Not that Zanu PF is sincere but it is unlikely that the party would take such a risk where its president stands to lose face. Why am I saying so?

First of all, Zanu PF was not directly coerced to the national dialogue process. It chose the timing, venue (although some participants have reservations on the choice of the venue) and potential participants. 

In all honesty, the process is government-driven as the president’s initiative.

If the national dialogue pays dividends, which hopefully it does, definitely Mnangagwa gets the bigger credit and by extension Zanu PF as a party. 

Of course, the spirit of the talks should be a victory for Zimbabweans and not politicians but still credit would be given to Mnangagwa.

In the unfortunate event of the national dialogue failing to restore basic normalcy like security and public safety, the situation could easily get out of control. 

Only the Zanu PF government would have lost the grip of the country and the world would not watch by the country tearing into pieces by strife and lawlessness. That is, if the last public protests are anything to go by.

The last thing any ruling party would want and Zanu PF in particular would be to lose grip of levers of power and invite international interference. 

Of course, the Constitutional Court ruled on the electoral dispute and legally Mnangagwa assumed the country’s highest office. Legally he is secure but definitely not politically if the economic situation continues to deteriorate.

Logically, the president would not allow a situation, if he can control it, where the political and economic crisis brings into question his legitimacy which remains contested by the MDC Alliance in particular. The National Dialogue becomes one avenue to move the country forward without further jeopardising his standing.

Generally, the atmosphere in the country is potentially explosive. Anywhere with a combination of both political and economic decline one would expect civil and political unrest and instability. In Zimbabwe, the history of repression of dissenting views and the recent overt acts of shooting at unarmed civilians in the full glare of international media leaves a lot to be desired. The government has a lot of soul searching and has to go overdrive to lessen the tension in the country.

Failure to arrest the trends could easily slide the country into a failed state with rogue army elements being a law unto themselves. It is easy to be a “Somali” and have warlords and other criminals mushrooming all over as motorists were being reaped money at fake roadblocks by marauding youths (where I was also a victim of the reap off). Any ruling party would be wary of that.

But Zimbabwe’s biggest challenge remains the economy. The democracy deficits and lack of constitutionalism are matters that can be easily settled with political will from the ruling party. However, the economy is another matter. It is easier to destroy than build. Besides, there cannot be political stability in a collapsed economy. We can dream of investors and the country being open for business but that would take us nowhere unless we put certain fundamentals right.

Economic recovery is not an overnight matter and would still call for further sacrifice by citizens and business. Therein, lies the importance of a national consensus which can only be guaranteed by processes like the National Dialogue if properly executed. The onus is on Zanu PF to ensure there is a national buy-in.

In conclusion, I do not rule out that those who believe the National Dialogue could be a gimmick may be correct.

Though only time will tell. In my view, the ruling party has limited choices, if any, from the present crisis and thus cannot close its only possible way out. In the unlikely event Zanu PF is foolish enough to use the National Dialogue as a gimmick, then it is Mnangagwa’s government that stands to lose whatever ounce of credibility that may be remaining. In politics anything is possible, but in this case, there are more reasons for the president to want the National Dialogue process to succeed especially to lift the country out of the current quagmire but also to save himself.

He should try hard to reach out to all political players and extend his invitation to non-political players like churches, civil society, academics, business and many more. 

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Food security remains key for any economy

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The reality of a drought this farming season is beginning to dawn on most people as crops they grew with positive expectations fail under their watch.

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After the heavy downpours some time ago during which places like Buffalo Range in Chiredzi had a record 203mm pounding the arid cane-farming area of Masvingo Province, most regions have gone for weeks without rains, compromising the potential yield farmers expected to harvest.

However, what is perhaps disturbing is the lethargy by government in mobilising food aid for communities that have real prospects of a drought. Already, there are places where crops have experienced severe moisture stress.

Authorities actually got early warnings from specialised organs like Famine Early Warning Systems (Fewsnet) on the prospects of an El Nino-induced drought ravaging Zimbabwe and the sub-region but conveniently chose to ignore completely.

It is difficult to guarantee the security of a hungry nation and there are several examples that have been witnessed all over the African continent and beyond.

Government should have started planning for anticipated food shortages well on time and obviously this would have allowed Treasury some bit of elasticity in the mobilisation of resources for that purpose.

Rural subsistence farmers could be the hardest hit given that they grow crops for domestic consumption and if the year is good enough may only spare a little surplus to sell in order to raise money for their children’s school fees. 

Some urban families have found farming helpful as 

they complement meager earnings with the food they grow on little plots on the outskirts of the their areas of residences.

These little plots have wilting maize crops, clear evidence of severe moisture stress, meaning they may not harvest anything substantial from these plots. 

Once this crop fails, it impacts negatively on the families concerned who have had to rely on such agricultural activities in these difficult economic times.

The bigger picture is that government then struggles in its obligation to ensure food security for its people, while at the same time being forced to redirect resources meant for developmental purposes for the sourcing of food.

Provinces like Matabeleland North had already written off some crops by mid-January, implying that authorities there, especially the provincial administration, were well aware of the situation on the ground and should have escalated the issue to central government.  

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Clash of titans looms in MDC . . . all eyes on Chamisa, Mwonzora, Mudzuri

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Jostling for positions in the MDC ahead of the May 22 congress has reached a critical juncture. Vital battlegrounds such as Harare, Bulawayo, Mutare and Masvingo have been turned into ‘war zones’ of intense political contestation for positions.

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Nominations for the do-or-die congress are in later this month, taking the country’s largest opposition party into a crucial phase which means different things to various constituencies making up the party.

For the supporters of MDC leader Nelson Chamisa, the upcoming elective congress is more of a referendum on the charismatic 41-year-old politician who has had a tumultuous 13 months in office.

Chamisa seized the leadership of the party after the heart-breaking loss of founding leader Morgan Tsvangirai who lost his valiant fight against colon cancer last year in February.

Ever since, Chamisa has struggled to shrug off accusations that he used his then assumed closeness to Tsvangirai’s widow, Elizabeth, to torpedo the ambitions of the likes of Elias Mudzuri and Thokozani Khupe who were also eyeing the post.

A titanic leadership battle subsequently ensued in the party, which eventually led to Khupe forming a breakaway faction which went on to perform dismally in last year’s elections.

The general feeling among MDC supporters is that while Chamisa ultimately prevailed over his party competitors, the congress is critical as it will settle once and for all the legitimacy question dogging him.

While for many, Chamisa is seen as the frontrunner to retain his MDC party presidency, some argue that the contest could go in any direction.

The MDC leader is likely to be challenged by the party’s secretary-general Douglas Mwonzora or Mudzuri (one of the party’s vice presidents) or both.

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Amid indications that all the candidates vying for the top office have equal chances of success, analysts this week said success at the MDC congress will depend on who can mobilise the most delegates. 

“This will depend on the respective candidates support and their capacity to mobilise within the reconstituted branches of the party,” said Piers Pigou, a senior consultant at the International Crisis Group. Pigou said Chamisa is the favourite on account of his profile and multiple platforms he has been able to benefit from.

While acknowledging Chamisa’s advantages, another analyst said Mwonzora could also reap rewards from his long association with the MDC as its secretary-general.

South African-based political analyst Ricky Mukonza said by its very nature politics is complex and there may be a lot of dynamics that could favour the other potential candidates.

“For example, Mwonzora as the current secretary-general of the party has significant influence in the party structures which could have a bearing on the outcome of the congress elections,” he said.

Mukonza argued that the fact Chamisa has been at helm could also work to his disadvantage because it has probably exposed his weaknesses in as much as it has allowed him to demonstrate his strength.

“The position has also resulted in him making some enemies within the party. The coming few weeks could be very crucial for this race,” he opined.

But Maxwell Saungweme,another political analyst, insisted that the advantage of incumbency would be the biggest undoing of Chamisa’s rivals.

“Chamisa is a man-of-the-moment in public and based by his popularity at rallies and the two plus million votes he got at presidential election, it looks foolhardy and hare-brained to try to challenge him,” Saungweme said.

He was, however, quick to point out that if elections are going to be done constitutionally with “the right delegates at the congress based on the party’s constitution, it’s conceivable that he can be challenged successfully.”

“But as we know, as much as democracy is scant in Zanu PF, so it is in MDC Alliance.  You are likely to have both constitutional and unconstitutional sanctions and impediments being put in the way of anyone who dares challenge Chamisa.

“Whether Mudzuri or Mwonzora challenges Chamisa is dependent on the two’s reading of the congress, its constitutionality and the type of delegates invited. It will be heedless and daredevil for a monkey to go challenge for a position at a Congress of baboons,” said Saungweme.

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'Scare tactics will not work'

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The continued clampdown and arbitrary arrest of civic leaders and opposition Members of Parliament in the aftermath of the January 14 to 16 stay-away called by the Zimbabwe Congress of Trade Unions (ZCTU) to protest escalating prices will strengthen the resolve of the intended targets and their supporters, analysts contend.

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Police have targeted at least a dozen MDC MPs, political activities and leaders of labour unions accused of inciting the anti-government protests which turned violent in some areas. 

They are accused of attempting to overthrow the government through unconstitutional means.

MP for Harare East Constituency, Tendai Biti recently told Parliament that since August 12 last year, 12 MPs from his party have been arrested on various charges. 

The ZCTU alleges that State security agents have been pouncing on perceived opponents at the instigation of President Emmerson Mnangagwa after he was quoted at a Zanu PF rally saying; “we will sort them out”. 

“Such words are unacceptable coming from the Head of State who is supposed to be a unifier,” said the labour body. 

“The ZCTU is worried that this ‘New Dispensation’ has become more dangerous than the notorious racist Rhodesian regime of Ian Smith. It has become too paranoid that it is even afraid of its own shadows,” the union said in a statement.

ZCTU said the State action is contrary to the Constitution which guarantees freedom of expression. 

“The ZCTU demands an environment conducive for freedom of expression and where every Zimbabwean can discharge his or her duties without fear of being arrested. We also demand that the government addresses issues that led to the 14 January 2019 stay away.”

Analyst Rashweat Mukundu believes that there is a pattern of wanting to instil fear and cower the opposition, civic and labour leaders by not only charging them with ridiculous allegations but also sentencing protesters to ridiculous years in prison. 

“This is a collusion of the party, government, judiciary and the security services which demonstrate that our judiciary is not independent but acts on instructions from Zanu PF.”

Social analyst Lenox Mhlanga believes such a strategy is self-defeating and akin to shooting oneself in the foot. 

“Such scare tactics will only serve to strengthen the resolve of the intended targets and their supporters. It will generate empathy for the victims and disdain for the perpetrators,” said Mhlanga.

Political analyst Vivid Gwede said intimidation will not work because it is short-lived and people will find their voices again. 

“But it is worrying though that people appear to be targeted based on their very legal activities such as civic leaders. The Constitution of Zimbabwe does not criminalise that, but encourages civic participation. In fact, it does not criminalise having different views to the government of the day because that is a democratic right,” said Gwede.

ZIPP president Blessing Kasiyamhuru said government must focus on fixing the problem not the symptoms.

He said: “As long as real issues are not addressed, it won’t prevent others from rising again, you can actually harden them worse.”

Human rights lawyer Dewa Mavhunga said the State crackdown on civil society and opposition leaders reflect a massive erosion of the rule of law and persecution through prosecution. 

“Even if the courts eventually go through the trumped up charges, these leaders would have already suffered injustice of being arbitrarily arrested, detained, and taken through sham and expensive court processes. 

“The Zimbabwe government ought to know that respect for the rule is a key pillar essential to political stability and to creating a conducive environment for investment and economic revival,” said Mavhunga. 

He added that this mindless crackdown will not work, it is counterproductive and will undermine Zimbabwe’s efforts at international reengagement.

Lawyer and politician Obert Gutu said Section 59 of the Constitution clearly and unequivocally provides that every person has the right to demonstrate and to present petitions, but these rights must be exercised peacefully. 

“For as long as Zimbabweans demonstrate peacefully, I honestly don’t foresee any situation whereby the State will, willy-nilly, persecute them and arrest them simply because they have peacefully demonstrated. That, of course, would be absolutely unreasonable and unconscionable. 

“The trick is for demonstrators to play a smart game and to abide by the dictates of the supreme law of the land. There is no country in the world that will tolerate violent demonstrations that will lead to destruction of property and loss of innocent lives.”

He added that we have got to strike a balance here. “The rule of law dictates that all matters that are brought before the courts should be adjudicated upon expeditiously and impartially. It is not the responsibility of any one (no matter how powerful and/or aggrieved they might be), to dictate to the courts of law how matters that are brought before them should be handled.”

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'Subversion charge used to cripple opposition'

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Legislator Joanna Mamombe was making a presentation at a parliamentary workshop in Nyanga when a team of about eight officers came to arrest her.

The officers claimed to be from Harare Central Police Station’s notorious Law and Order Section and arrived driving a spanking new Toyota Fortuner registration number ACI 4582. 

The Harare West MDC Member of Parliament had been in Nyanga for parliamentary business since February 24.

The night before, another security services team had visited Mamombe’s parents’ home in the working-class suburb of Glen Norah in Harare at midnight in search of her, harassing everyone and “intruding into personal privacy of innocent people.”  

The 25-year-old opposition lawmaker was driven to Harare and appeared in court last Monday charged with attempting to subvert a constitutionally-elected government.

The State claims she called the southern African country’s government “authoritarian” at a press conference on January 14 in remarks that were posted to Facebook.

The court heard between January 14 and 16 and in response to Mamombe’s presser, members of the opposition, various trade unionists, pressure groups, youth forums and members of the public engaged in violent protests across the country.

As a result, property was destroyed, lives were lost, several police officers and members of the public were also injured.

Mamombe, who is out on bail, is just one of several opposition politicians and human rights defenders arrested in Zimbabwe over the past two weeks.

Most of them face charges related to subversion, which is punishable by 20 years in jail.

Opposition leaders allege that the powers-that-be are abusing the justice delivery system to weaken their opponents.

They further allege that the arrests are meant to influence a particular outcome at the MDC’s May congress.

A day before Mamombe’s arrest, MDC legislator Godfrey Sithole — who had been in hiding — surrendered himself to the police. 

Sithole appeared before Chitungwiza magistrate, Winfilder Tiatara, who remanded the legislator for Chitungwiza North in custody.

Another MDC legislator Charlton Hwende was this past week arrested before being released on Friday on $3 000 bail, after appearing in court again on subversion charges relating to the same allegations that the opposition leaders incited Zimbabweans to overthrow President Emmerson Mnangagwa.

He was represented by Harrison Nkomo who told the court that police officers who arrested Hwende flagrantly violated his rights. 

The court issued an order to investigate the complaints against the arresting details.

“My client was arrested while on board flight SW411, Air Namibia, as soon as it touched the ground. His passport was taken away from him by the police officers and technically he has not entered Zimbabwe because he was not given a chance to regularise with Immigration,” Nkomo said.

“I wish to have this on record in case the State might want to charge him with violating the Immigration Act later. He was detained from 10:45am to 17:30pm without being advised of the reason for his arrest in violation of constitutional provisions.

“The State papers do not disclose any offence and these are issues we shall address the court on the next remand date.”

The matter was remanded to March 20.

MDC parliamentary chief whip Prosper Mutseyami told the Daily News on Sunday that government’s disdain towards upholding fundamental human rights is reflected in these wanton arrests of perceived opponents.

“The manner the operation was done sends shivers down the spines of the ordinary civilians. It is a sad incident reflecting retrogression in our constitutional democracy against reform pretence by Mnangagwa,” Mutseyami said. 

“The MDC caucus strongly condemns the abduction and arrest of Hon Mamombe and Hon Sithole and Hwende. When Members of Parliament are harassed and their rights violated in that manner, it means the ordinary citizens are worse off. In general, acts of torture, arbitrary arrests on trumped up charges, mass trials and conviction are of concern to the MDC caucus.”

Activists say the government is using subversion — which was initially used to quash rebellion by nationalists in the post-independence era — as a bank of ammunition it can use to cripple opposition.

Bekithemba Mpofu, the MDC deputy spokesperson, said “during the many years of their political apprenticeship, the leaders of the military government were party to a process which accused political rivals of treason.”

“They charged Dr Joshua Nkomo, Lookout Masuku, Dr Dumiso Dabengwa, Dr Morgan Richard Tsvangirai, Prof Welshman Ncube and Hon Tendai Biti among others. The new leaders on the list are just a continuation.

“Persecution of MDC leaders and members must stop, mass and fast-tracked trials, denial of due process and violations of people’s rights must stop forthwith,” Mpofu said.

A furious MDC leader Nelson Chamisa told a news conference on Wednesday: “The level of human rights violation is worsening by the day. Hon Morgen Komichi, Hon … Biti, Hon Hwende, Hon Amos Chibaya, Hon Happymore Chidziva, Hon Godfrey Sithole, Hon Levi Chimina, Hon Lloyd Mukapiko, Hon Settlement Chikwinya and Hon Mamombe have all been brought before the courts on trumped-up charges.”

The MDC leader said at least 17 people have been killed in January of 2019 on account of the State’s heavy-handedness.

“Beyond these killings, there has been a systematic targeting of MDC members including senior leaders, MPs and councillors. Leaders of the ZCTU and civic society were also targeted. There has been invasion of homes, abductions, and arbitrary arrests, mass and fast-tracked trials,” he said. 

A human rights lawyer, who didn’t want to be named for fear of reprisals, explained that authorities were using “subversion” charges as a way to quell any opposition to the regime, including from pro-democracy activists.

Just last week, civil society activist Rashid Mahiya was arrested and charged also with subversion over the same fuel riots.

Mahiya is director of Heal Zimbabwe Trust and also chairperson of the Crisis in Zimbabwe Coalition, peace-building and civil rights non-profit organisations operating in the country.

Just like others, he is also charged with attempting to subvert a constitutionally-elected government. 

He has retained lawyer Tonderai Bhatasara as his lead counsel. 

Cuurentl,y he is out of custody after being granted bail.

Leaders of Zimbabwe Congress of Trade Unions, president Peter Mutasa and secretary-general Japhet Moyo are out on bail after being arrested for calling for the January national stay-away against the 150 percent hike in fuel prices. 

Mutasa and Moyo have both been granted $2 000 bail and are reporting three times a week to the Criminal Investigations Department Law and Order.

They are also facing charges of attempting to subvert a constitutionally-elected government. 

Earlier in January just after the protests, Zimbabwe’s high court granted activist pastor Evan Mawarire bail following his arrest again on charges of subversion related to the violent anti-government protests.

Critics say Mnangagwa’s government is walking in the footsteps of former president Robert Mugabe.

During Mugabe’s era, subversion charges were used to subdue politicians and pro-democracy activists alike.

The subversion charges were also used during the colonial regime to suppress black dissent because of the chilling punishment upon conviction.

Prominent human rights lawyer Dzimbabwe Chimbga told the Daily News on Sunday the charge of subversion of a Constitutional government stipulates that anyone who uses physical force or violence or the threat, boycott, civil disobedience or resistance to any law, actively or passively, “shall be guilty of subverting constitutional government and liable to imprisonment for a period not exceeding 20 years without the option of a fine.”

Many had hoped Mnangagwa would change policies and tactics that were used by his predecessor to thwart dissenting voices.

“I guess as they say, new wine, old bottles, the recipe remains the same, even when the cook has changed,” Chimbga said.

Political analyst Maxwell Saungweme said the law and State apparatus are still being used the same way they were used under Mugabe to thwart voices of dissent.

“Under Mugabe it was as predictable as day and night that all political arrests were harassment meant to break dissenting voices, but convictions were never secured and cases would fall apart in a simple court scrutiny. But now convictions (on political cases) are now being secured and it’s more worrying to see judiciary more and more passing political decisions dressed as judgments. Human rights defenders have more cause of concern now than before.  Maybe it’s the entrenchment of the military factor in all spheres and facets of our lives leading to these convictions.”

MDC member and lawyer David Coltart, writing on his Twitter account, said in his over three years of practice no convictions have been secured by the State.

He said the only act deserving of a conviction was Mnangagwa’s November 2017 coup against Mugabe.

“Ironically the only clear-cut case of treason since independence is what Mnangagwa, (vice president Constantino) Chiwenga & (Foreign Affairs minister Sibusiso Busi) S.B. Moyo did in 11/17,” he wrote on Twitter.

Another political analyst Pedzisai Ruhanya, commenting on the same issue on his Twitter account, said the rate at which treason charges are being preferred against the opposition is more than that of the Mugabe regime.

“Zimbabwe’s new treason dispensation. Treason charges are being dished against opposition politicians like at no other time. Mugabe dished them too but not at this Coup class rate!” he wrote sarcastically.

British Labour MP Kate Hoey has since called on the United Kingdom minister for Africa, Harriett Baldwin to summon Zimbabwean ambassador to the UK Christian Katsande to explain the developments in the country, pertaining to the charges being levelled against the opposition.

“Hope @hbaldwin is calling in Zimbabwean Ambassador. This is happening too often @UKinZimbabwe,” she wrote on Twitter.

. . . as MDC Alliance leader fears split

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Ahead of the MDC Alliance’s 5th congress, the party’s president Nelson Chamisa has sensationally claimed that Zanu PF is working around the clock to ensure that the country’s biggest opposition movement splits into two.

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This comes as senior officials in Zanu PF have openly declared

interest in the opposition party’s impending congress to be held later next month.

Chamisa is likely to face his secretary general Douglas Mwonzora at the congress. 

Mwonzora has openly declared that he has rights, including contesting the sitting leader since he is a “full member of the MDC.”

Zanu PF politburo members Victor Matemadanda and Lewis Matutu have publicly stated their preference of the candidature of Mwonzora ahead of Chamisa, the 41-year-old who the ruling party regard as immature.

As a result, Chamisa’s backers have come out guns blazing

threatening to mercilessly descend on anyone who will challenge the incumbent.

Tempers are flaring in the MDC, with fault lines now emerging between those who back Chamisa and Mwonzora, amid growing fears that the party could split again as happened in the past.

Since its formation in 1999, the MDC has split three times, first in 2005 after disagreements over participation in the Senatorial elections.

The second split came in 2014 after the party’s dismal showing in the elections where former president Robert Mugabe thumped the late MDC leader Morgan Tsvangirai by a wide margin.

The MDC also split last year following a vicious and acrimonious battle to succeed Tsvangirai after his death.

Although former officials who had walked away from the Tsvangirai led MDC are now back in the broader MDC Alliance, there are several individuals who are dissatisfied with the leadership of Chamisa who came to power through an internal coup.

In a thinly veiled attack on Zanu PF, Chamisa said non MDC members cannot dictate what happens in their movement.

The MDC leader said he is aware that their foes are working through the witching hours and burning the midnight oil to see the upcoming congress in disarray and to destroy the movement and throw it into jeopardy.

“The MDC will never split for it is the people’s project. The people cannot split. The people’s project will never be split by selfish motives. Individuals may from time to time elect and choose to get lost but along the way, often sooner, they will either find themselves or be found,” said Chamisa.

Last week, government was forced to deny that it was interfering with the MDC impending congress saying it had bigger fish to fry.

Information, Publicity and Broadcasting Services deputy minister Energy Mutodi dismissed talk that government was making arrangements to use security agents to weaken the opposition.

“Government is not worried who emerges the winner at the MDC congress, be it Chamisa or Mwonzora. None of the two is capable of overcoming our 2023 Zanu PF candidate…Mnangagwa. We have started reviving the economy and the gains are open for everyone to see,” Mutodi said.

But the MDC youth assembly is adamant that the ruling party wants a “weaker candidate” to emerge as the party’s leader in May “for obvious reasons” — vowing that this would not happen.

“It is saddening that Zanu PF wants to give us a leader and we know why. We are, however, clear as youths and other organs of the party that we have Chamisa as our leader and the decision is ours not Zanu PF’s,” said Lovemore Chinoputsa, the MDC youth assembly secretary-general.

MDC vice chairperson Tendai Biti has angrily reacted to the

suggestions that Mwonzora was likely to emerge as the new party leader after the May congress. 

He said the party would not accept to be led by “a ruling party chosen half-wit”. 

“We will reject any nincompoop given to us by Zanu PF. We already have a candidate in … Chamisa. So, we will not tolerate that.

“Our duty is to protect the legacy of our dear leader Morgan

Tsvangirai and we know with Chamisa we will be able to do that,” Biti thundered. 

Chamisa has, however, been at pains preaching peace.

“Therefore, when we speak of unity in the MDC, we refer to the united action of the people through the concert of a festival of ideas, as they put aside their racial, tribal, gender and class differences to map out a common national development trajectory. The people shall govern! We must not be extremists causing hatred. We must be measured

in our language and tone.

“What makes the MDC great is the celebration of dissent and diversity. The MDC is intact and growing bigger into a post-independence liberation force, democratization catalyst and transformation agent in Zimbabwe.

“Nonetheless, we will be vigilant and guard against infiltration and violence from without. Non-members cannot manage internal affairs,”

In a conciliatory message, Chamisa said the party is determined to add instead of subtracting and will try everything possible to ensure that it remains united.

“We want to grow the base. As I always say, we grow by adding, where necessary by multiplying and never by dividing or subtracting. To add is to strengthen and to subtract is to weaken. We must remain focused on the goal. That which unites us far exceeds whatever might separate us. Together we shine, asunder we are all dust,” said Chamisa.

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Chamisa ready to step down

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MDC leader Nelson Chamisa says he is ready to step down if he loses the party’s internal polls scheduled for May this year, the Daily News on Sunday can report.

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Chamisa – who assumed the reins of the country’s largest opposition party in February last year, albeit under controversial circumstances – faces a challenge from the MDC’s secretary-general, Douglas Mwonzora.

Mwonzora, who beat Chamisa during the 2014 congress for the post of secretary-general, has previously kept his cards close to his chest. It was only last month that he openly declared his ambition if nominated.

Elias Mudzuri, one of the MDC’s three vice presidents, is still weighing his options and may also throw his hat into the ring.

In an exclusive interview with the Daily News on Sunday yesterday, the MDC leader said he will respect any outcome at the upcoming polls, but underscored the fact that safeguards would be put in place for the conduct of free and fair elections.

“They can never be democracy without democrats; I am a democrat – whoever comes out the winner in the process, I will also be a winner and I am duty bound by my beliefs to support the outcome,” he said.

“In any electoral processes in a democratic organisation, democracy is always the winner. And we are going to have an independent commission to run the election so that the process is not contaminated by internal pollutants,” added Chamisa.

In the July 30, 2018 presidential polls won by President Emmerson Mnangagwa, Chamisa rejected the outcome of the elections on account of the electoral processes, which the MDC argued were designed to favour Zanu PF party. Chamisa took his case to the Constitutional Court which dismissed his application with costs, while upholding Mnangagwa’s razor-thin victory. Regardless, the MDC leader has vehemently refused to recognise Mnangagwa saying the Zanu PF leader owes his presidency to an illegitimate process.

Chamisa is hopeful that an independent commission would produce internal polls that are not “contaminated by internal pollutants,” in a bid to avoid disputes.

The 41-year-old politician warned his would-be challengers for the party’s presidency to hold their horses and quit campaigning for posts before nominations.

“In our party, leaders don’t determine their fate. We have over a million members, and delegates who will come to the congress and those are the people who are going to choose their leaders,” said Chamisa.

“We do not self-deploy; we are deployed by the people. The nominations are going to be determined in the provinces – there is no way anybody is going to say I want to be this.”

Even though Mwonzora has expressed his desire to challenge for the top post in the MDC, he also alluded to party processes which he said must be followed ahead of the elective congress.

He said: “I will be giving you a statement regarding to what I will be standing for. There are key processes that must happen first and these include the nomination process. Within the MDC set-up, people are nominated by the structures; I want to emphasise I am a full member with full rights including the right to contest any position.”

Mwonzora was also quoted previously laying down the rule to be followed.

“There are processes that have to be followed, we must have branch congresses, then ward, district, provincial congresses and after that the provincial assemblies will do nominations, it is at that time that we will know if we have been nominated,” Mwonzora was quoted saying.

Mwonzora told the Daily News recently that he is aware of a smear campaign targeting him but that will not deter him to contest in any position “because the opposition now requires someone with the right temperament” and who understands democracy”.

“We are also aware of the smear campaigns that are going on but that is expected considering that we are now going to the congress,” said Mwonzora.

But in a thinly veiled attack on those who have been beating war drums ahead of the elective congress, the first since the death of the party founding president Morgan Tsvangirai, Chamisa said those with unbridled ambition are failing to appreciate the heart and soul of the MDC.

Asked about his relationship with Mwonzora who recently declared that he has a right to contest in any position, Chamisa said the office of the MDC presidency works closely with that of the secretary-general to enhance democracy not only in the party but also in the country.

“I have a very good relationship with Mudzuri, (vice president Welshman) Ncube, (vice chairperson Tendai) Biti and Mwonzora. As far as I am concerned, the relationship (with the MDC leadership) is of people in a team.

“In our party, we don’t crucify ambition. In our party, we don’t persecute desire. In our party, we celebrate diversity, but it has to be anchored on leaders being chosen and not individuals indicating where they want to be. 

“It should be about the organisation; people have to choose you, you don’t deploy yourself, you don’t say I want to be there – those are not attributes of a leader. People must be ready to be nominated but not to self-nominate; you are nominated first before you pronounce yourself.  In our party, leadership is in the doing rather than in the being…that is how we were taught by our president the late Morgan Tsvangirai…,” said Chamisa.

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ED pleads for sanctions removal

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President Emmerson Mnangagwa has pleaded with the United States of America (USA) to remove sanctions arguing that they were not what the country fought for during the liberation struggle.

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He was speaking at the burial of the late army brigadier-general Emilio Munemo who died on Sunday from a short illness and was declared a national hero. Munemo is revered as one of the founders of the Chitepo School of Ideology.

Mnangagwa’s sanctions plea comes as the USA extended sanctions on the country last week for another year.

“I am aware that as I make this exhortation, the American government has renewed sanctions against us. We call for the unconditional removal of the illegal, spiteful and completely unjustified sanctions on our country which continue to violate the basic human rights of our people.

“We fought for peace, we believe in peace and we do not pose any type of threat to any country in the world,” Mnangagwa said.

Mnangagwa and his senior government colleagues were recently given a stay of execution by the European Union (EU), which last month decided against hitting the country’s under-pressure ‘‘new dispensation’’ with fresh sanctions.

This comes as Trump had last year raised hopes that his government could finally end nearly two decades of frosty relations between the USA and Zimbabwe — after he sent a powerful delegation to Harare to engage with Mnangagwa, ahead of the country’s historic elections.

Meanwhile, the president described the late Munemo as a reservoir of knowledge on the ethos and ideology of the liberation struggle.

“…Munemo was a mobiliser and reservoir of knowledge on the ethos, history, norms and values of the liberation struggle. The late national hero served the country with loyalty and distinction,” he said.

The President challenged researchers to take a leaf from Munemo to be catalysts in instilling a new and patriotic mind-set in learners. “I challenge educators in the country to draw lessons from Cde Munemo and to inculcate a new mindset in our learners, a mind-set that is patriotic,” the President said.

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Electric transport: Leaving no woman behind

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When people talk of women empowerment or come up with brilliant innovative start-ups that empower members of the gentle sex, they tend to prioritise those in urban areas while marginalising their rural counterparts.

And yet both have great potential in transforming economies in the world.

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Celebrating rural women last year, United Nations secretary-general Antonio Guterres emphasised that the empowerment of rural women and girls is essential to building a prosperous, equitable and peaceful future for all on a healthy planet, adding that it is needed for achieving gender equality, ensuring decent work for all, and eradicating poverty and hunger.
Taking the secretary-general’s words seriously, an Aussie humanitarian worker Shantha Bloemen who is also the founding director for Mobility for Africa, has decided to test the waters by channelling her energy towards empowering rural women in Wedza, Mashonaland East as a starting point in creating local and vibrant rural economies in Africa.
Working alongside her partners from Mobility for Africa whose aim is to create community-based renewable transport solutions for Sub Saharan Africa, Bloemen took it upon herself to import the first batch of solar-charged electric tricycles from China and introduce them to rural women in Wedza District for mobility and an ease of doing business.
Speaking to the Daily News on Sunday, Bloemen said in rural Zimbabwe, women and girls are responsible for water and firewood collection as most households do not have direct access to drinking water and electricity, adding that the strenuous journey often takes several hours and poses many safety risks.
“There is a revolution going on in electric transport with huge improvements in battery technology and renewable energy. This innovation should not bypass rural women in Africa as they need mobility more than anyone else. We believe we can bring social disruption that can ultimately bring social transformation,” Bloemen said.
“Rural women still carry an enormous burden of raising children, providing livelihoods for their families, and contributing to their community. Yet so much of their busy days are spent managing long distances.
“My hope with mobility for Africa is we can start investing in solutions tailored to their needs that can help improve their quality of life for their families.”
According to an observation made by the UN in rural areas, women are more likely to fend for their families with whatever benefit they get from farming.
“There is a lot of talk in the development space about gender and how to improve women’s well-being. We need to focus now on practical solutions that can ultimately transform their lives,” Bloemen said.
She added that the electric tricycle pilot programme will allow her team to access the performance of the vehicles so that the next batch would be adjusted accordingly if need be, and that Mobility for Africa in partnership with Chinese university students and Midlands State University students are working on manufacturing the tricycles locally, which will create employment and boost business.
Speaking during the pilot programme launch in Wedza at Shaka Farm, Mobility for Africa director, Felicity Tawangwa said the initiative is in line with government’s call of empowering women and rural development.
“The aim of this initiative is ambitious yet we believe that by providing mobility solutions targeted in transforming the way women move in rural areas, productivity will increase and the quality of life in rural areas can be improved,” Tawangwa said.
“The aim is to create local and vibrant rural economies that stimulate new opportunities and improve the quality of life for poor communities.”
Research has shown that of the 45 percent of the world’s population that is rural based, women in those areas face a disproportionate amount of marginalisation and poverty.
Transport and lnfrastructural Development deputy minister Fortune Chasi believes that the launch of this pilot programme in Wedza, which is expected to spread throughout rural Zimbabwe and Africa is a first step in empowering women and involving them in economic development.
“Women often bear the brunt of transporting goods from point A to point B. Some transport firewood and water while tying their babies on their backs which makes the whole process difficult and strenuous,” Chasi said.
“With the tricycles put in place, women will now be able to carry their loads without any hustles and be empowered to go by their daily routines without much stress.”
Chasi added that Wedza is a community that thrives on farming and the scarce means of transport forces women to deliver their produce on foot posing limitations to their deliveries and others struggling to get their produce to markets on time.
“These tricycles will play a pivotal role in transportation and l hope more women will take advantage of the opportunity,” he said.
Mobility for Africa second director who identified herself as Celani applauded the noble idea which she attributed to be the brainchild of Bloemen who is said to have developed an appreciation of rural women’s challenges when she first volunteered in rural Zambia at the age of 23.
“While volunteering in rural Zambia, Shantha had to do all the chores that women in that area did, she had to fetch her own water as well. She found herself carrying the water bucket on her head and struggling to get home from the river with the bucket still full,” Celani said.
“All the hardships she encountered and observed women undergo in a rural set up made her develop a soft spot for these women and the desire to see them excelling in whatever  they do because of the resilience they show.”
While research shows that in most countries around the world, rural women and girls face daily challenges of access to sustainable infrastructure, services and social protection, UN women executive director,  Phumzile Mlambo-Ngcuka believes that the ubiquity of these challenges offers a large scope for change so that they no longer dominate and constrain women’s and girls’ lives.

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CBZ trains 3 000  entrepreneurs

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CBZ Holdings (CBZ) says it has trained over 
3 000 young entrepreneurs in the last three years, as the financial institution moves towards promoting financial inclusion and new startups.

Blessing Mudavanhu, the group’s chief executive, on Friday said the country’s largest financial institution was providing a platform for previously unbanked young people to participate in the banking system.

[GoogleAd]“The platform being created will allow youngsters to create jobs for themselves and others,” he said, adding that CBZ — through the Youth Entrepreneurship Programme (Yep) — was bringing disruptive innovation into the economy.  
“It’s all about the future. If we invest in the youths then we are investing for the future,” Mudavanhu added.
Yep is a practical and results-based initiative involving youths from all the 10 provinces, which is nurturing a new generation of growth-oriented business persons.
The programme seeks to improve Zimbabwe youths including those who are in the rural areas through offering business opportunities which will in turn create employment opportunities.
This is in line with the Reserve Bank of Zimbabwe’s 2016-2020 National Financial Inclusion Strategy, which seeks to foster economic and social development by increasing fiscal space for previously marginalised key players such as smallholder farmers, women, youth, micro-small to medium-scale enterprises in the formal banking system.
To date 2 900 entrepreneurs have gone through the programme, with 52 percent of them being women. More than 400 businesses have been registered and are functioning as a result of the programme according to CBZ.
As part of the programme, the selected businesses compete with each other over the set period until winners are crowned at the end of the programme. The winners are given seed money to invest into their businesses. 

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Willdale profits ahead of target

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Willdale says its profits in the five months to February are ahead of target despite the current economic crisis.

Nyasha Matonda, the company’s chief executive, told shareholders at an annual general meeting that sales volumes in the five-month period were 22 percent and 18 percent below prior year and budget largely as a result of mismatch between disposable incomes and prevailing prices.

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“However, despite the dip in volumes, our profit is way ahead of target due to cost containment and pricing. Our cost of sales went up by just under 10 percent while general price increases have been more than 50 percent,” he said.
Matonda said the listed brick manufacturer’s production started earlier due to low rainfall, therefore expect to surpass targets for the year.
“Fired production for the five months is 18 percent ahead of prior year while extrusion is 68 percent ahead. Rains have been low so far to our advantage,” he said.
The Willdale boss noted that during the last five months, the company has managed to stockpile critical raw materials such as coal and machine wear parts and these helped in production efficiencies.
 “We anticipate plant availability and utilisation of at least 85 percent following planned maintenance during the off-season. We are well placed in the market to compete effectively supported by our quality bricks and superior brands,” he said.
Matonda said the company has firm order book after receiving several inquiries from envisaged projects.
 Meanwhile, in terms of the land the company disposed last year, Matonda said the company realised $11,3 million against an indicative value of $4,5 million.
“As a result, all targeted debt has since been repaid, strengthening the balance sheet and improving profitability. Excess funds amounting to $4 million were invested in a housing development project,” he said.
Matonda said the company is now well placed to operate profitably and pursue growth initiatives that grow the company.
“We are currently exploring ways to modernise our production processes and we remain confident of the future of the company,” he said.  

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Byo hails Monetary  Policy Statement

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The business community here last week hailed government for floating the exchange rate but urged policy-makers to move with haste to fully operationalise the interbank market.

Last month, Reserve Bank of Zimbabwe (RBZ) governor John Mangudya liberalised the foreign exchange (forex) market by allowing the RTGS dollar to freely trade with other units making up the country’s basket of currencies.

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Business leaders who met with Industry and Commerce minister Mangaliso Ndlovu in the second capital last week applauded government for finally coming to terms with the reality that the United States dollar was hardly at par with the local currency.
They, however, pleaded with government to liquify the interbank market with hard currency so that businesses do not have to stray into the black market for forex.
Alternately, they argued government must repeal laws that punish those caught trading forex on the black market.
Addressing questions from the floor, Ndlovu said it was too early to form judgments on the interbank market.
The Industry minister said he is in agreement with Finance minister Mthuli Ncube and Mangudya that there was need to avoid fixing the exchange rate, noting that the rate should be market-oriented.
“Yes it (the interbank market) has not worked smoothly but it is still early days and we should give it time. Zimbabweans are always averse to developments; we always start by resisting.
“I hope there will be a lot of trading taking place in that market in a few weeks to come. It is still too early to make conclusions as we might come up with measures that will frustrate the progress made so far,” said Ndlovu.
Zimbabwe National Chamber of Commerce Matabeleland chapter vice chairperson Brighton Ncube said there was need for government to consult businesses before making key decisions and announcements.
He said industries were suffering due to policy inconsistencies, adding the unfavourable political atmosphere and corruption had increased the country’s risk profile.
Ncube also said there was need for government to give a regular update on how the proceeds from the two percent tax, introduced in October last year, on electronic transactions were being utilised.
Confederation of Zimbabwe Industries’ Matabeleland chapter president Joseph Gunda said despite the introduction of Statutory Instrument (SI) 122, prices of commodities have remained beyond the reach of most consumers.
“Prices are still high, they have not gone down. We need protection; perhaps there is need to review the policy. Was it not supposed to be temporary?” he said.
He bemoaned the obsession with profiteering by most retailers, hinting that was only afflicting the already struggling consumers.
Gunda said the violent looting by the Bulawayo community in January was a message to retailers and manufacturers that consumers were grossly affected by the overpricing of goods in the outlets.
He further said despite the provisions made in the recent monetary policy statement, very few if any companies had been able to access foreign currency from the commercial banks.
“We need to implement policies fully; members of the business community are going to the bank but they cannot access forex. Soon we will be forced to go into the forex black market and prices will remain high,” he said.
Ndlovu said government was forced to maintain the SI 122 instrument to curb the previous experiences where products had dried up in the market; a situation which presented a security threat as consumers scrambled for goods before they were even off-loaded from delivery trucks.

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Prospect Lithium  gets Sez status

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The Zimbabwe Special Economic Zones (Zimseza) has granted Prospect Lithium Zimbabwe a special economic zone status in a development that will bring into the country US$165 million in foreign direct investment.

Zimseza and Prospect Lithium are now working on the modalities to operationalise the zone.

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The project will attract foreign direct investment to the tune of $165 million with a potential income to Zimbabwe to the tune of approximately $2,93 billion during the first 12-year life of this resource.
Prospect Lithium Zimbabwe has completed mineral exploration work leading up to a definitive feasibility study on its mining claims on the Arcadia Lithium Project in the Arcturus area of Goromonzi.
In phase one the investment will utilise standard mining technologies common in lithium mining, namely crushing, dense media separation, spirals and flotation. 
The company is excited about the possibility of developing phase two which would be the chemical plant to produce either lithium carbonate or lithium hydroxide. 
In addition, the company’s petalite concentrates can be used in multiple configurations in the unique global glass and ceramics markets. 
The key focus of this phase will be on value addition and beneficiation. 
Zimbabwe is now focusing on exports which bring real value to the nation instead of mere commodities.
The project will attract a minimum start-up capital of approximately $165 million and the annual export revenues for the project are estimated at approximately $200 million from the year 2021.
The project will see the creation of approximately 500 jobs during the construction phase and approximately 260 direct jobs.

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BNC acquisition deal falls through

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Bindura Nickel Corporation (BNC) says discussions between its ultimate holding company Asa Resource Group (Asa) and a third party relating to the sale of a majority stake in the mining company have been terminated.

The company had issued cautionary statements from December last year to mid-February this year advising shareholders that negotiations were in progress.

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“Shareholders are advised that discussions regarding the proposed acquisition of the interest of Asa in BNC by the third party have been terminated,” the company said in statement on Friday without disclosing the reasons for the termination of the deal.
The nickel-mining company had earlier disclosed that Asa had entered into a “sale and purchase agreement with a third party in relation to the 74,73 percent shareholding in BNC.”
The unnamed third party was said to be a United Kingdom-based nickel producer with complementary interests in southern Africa.
The only other detail about the deal that had been made public was that “the conditions of the agreement included various regulatory approvals and other conditions as expected with a transaction of this nature.”
However, media reports have been linking Asa with London and Johannesburg-listed Pan African Resources (Pan African), which announced last year that it was in “exclusive negotiations with the joint administrators of Asa”.
Pan African said at the time that the talks were around “acquiring certain of the assets and liabilities of Asa.”
Pan African also did not give details and warned that there was no certainty any purchases would be concluded.
Asa, which is currently under administration, has been in turmoil since last year when it fired its chief executive and financial director after they allegedly defrauded Freda Rebecca Mine, in which Asa holds 85 percent.
The Africa-focused miner also recently reportedly faced a hostile takeover from Rich Pro, a Chinese firm allegedly tied to the sacked executives.
In June last year, Asa cancelled its London listing after delays in fixing a deep cash flow crisis.
Asa, formerly known as Mwana Africa, holds interests in gold and nickel in Zimbabwe. Its two key assets are Freda Rebecca gold mine, the Trojan nickel mine and the Bindura nickel operation, which has a mill, a concentrator, a smelter and a refinery.
Meanwhile, BNC says its $20 million smelter project is on hold due to declining nickel prices.

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Crisis at Rufaro Marketing . . . board not constituting a quorum

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Rurafo Marketing (Private) Limited is in serious breach of international best practices and corporate governance rules after it emerged that the Harare City Council (HCC)’s liquor business is technically operating without a board.

Minutes of HCC’s finance and development committee indicate that the company is only operating with three people on its board who do not constitute a quorum.

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A quorum is the minimum number of members that must be present at a meeting. 
A meeting of an organisation cannot take place unless the required quorum is in attendance. 
Any decision passed without a quorum is null and void, which means that, technically, Rufaro Marketing is operating without a board.
It therefore requires two more board members to be fully functional.
However, engaging additional board members would result in additional financial burden to the company whose profitability has been vacillating like a yo-yo.
In 2016, Rufaro Marketing made a profit of $299 000, with profitability dipping the following year to $14 000 in 2017.
Last year, the business was up on the previous year with profits reaching $110 000.
According to the HCC, Rufaro Marketing’s debts have been reduced from $12 million to $5 million after key payments were made to banks and other creditors, among them the National Social Security Authority, African Distillers and BDO.
Significant payments were also made towards human resources matters with $2,7 million going towards retrenchments from a total of $3 million owed. 
A total of $826 000 was paid in pensions against a total of $1,698 million.
“Payment on the Zimbabwe Revenue Authority debt was yet to be paid as priority was given to employee-related benefits,” read part of the minutes.
While a decision has been made to venture into real estate on property investments and turn former beer halls and gardens into students accommodation, leisure and children play centres, this is yet to be implemented as the company’s focus was to retire the legacy debts.
Rufaro Marketing’s chief executive officer told the finance committee that there were still four employees at the company who had taken them to court over salary disputes.
Acting human capital director Matthew Marara said some employees had been retrenched while others had been absorbed by HCC.
“Those employed by council had been vetted for their suitability and had been engaged with the understanding that the city would be responsible for their welfare from the date of engagement into council services. The salaries that they were owed by Rufaro Marketing would be resolved there,” Marara said.

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'Command Agric biggest  source of wheat, maize'

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Command Agriculture programme has saved the country for the past three years as it has become the biggest source of local wheat and maize, Grain Millers Association of Zimbabwe (Gmaz) has said.

Speaking in Bulawayo recently at a gala exhibition dinner that was meant to showcase millers’ products and create a platform for engagement and interaction, Gmaz chairperson Tafadzwa Musarara said they have now stepped up contract farming activities as they aim to yield in excess of 100 000 metric tonnes of wheat every year for the next three years.

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“Let me assure you of continued and stable supplies of maize meal and other related products we produce. Strenuous efforts are being exerted to normalise flour supplies.  
“We are here to register to you that the milling industry is ready, willing and able to be your suppliers and allies as you commence the process of rebuilding in terms of restocking and replacement of capital equipment wantonly destroyed and looted during the disturbances of January 2019. We salute the resilience of those affected but keen to resume business,” said Musarara.
He added that following the announcement of Government’s intervention, Gmaz decided to host the exhibition and reconnect with customers.
“The milling sector has enjoyed tremendous support from retailers in this precious Metropolitan Province of Bulawayo. Many retailers have proved to be honest and consistent in their dealings with millers.  We are nothing without you our customers. Your role in providing us the key link with the consumers is immeasurable.”
Musarara said in the previous disturbances, the milling sector lost nearly $3 000 000 worth of stock, largely stocks that were on consignment in shops but yet to be paid, loss arising from non-productivity for nearly seven days. 
“And also our stocks from our own premises were looted.”

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