Mugabe’s ‘centsless’ 10-point plan

Obituaries
Our lives revolve aro-und money — disposable incomes to buy food, clothes, medicine and pay school fees for our children, electricity, telephones, transport, fuel, reading materials, seed, fertiliser and other services.

Our lives revolve aro-und money — disposable incomes to buy food, clothes, medicine and pay school fees for our children, electricity, telephones, transport, fuel, reading materials, seed, fertiliser and other services.

Welshman Ncube

We toil day and night because we want to make money — just enough to survive under the circumstances. It is Zanu PF that has made our “centsless lives” progressively unbearable.

From year 2000 to 2009, President Robert Mugabe’s ruinous economic policies destroyed the confidence we had in the Zimbabwe dollar, until the currency became “centsless”.

We are now one of the few, if not the only country in the world, without own national currency. And Mugabe is still speaking! And continue to speak cluelessly he will.

If you therefore take a closer look at his 10-point plan, presented in Parliament recently, you will see nothing but hot air, egotistic, self-praising rhetoric.

We have heard the same points many times over in previous Zanu PF electoral manifestos. However, as leader of a progressive, social democratic party, I am not one to mourn without proffering sustainable alternatives.

What would I have said in 10 points had I been President of Zimbabwe, under the current painful circumstances? Would I have restored the courage and confidence that Zimbabweans should have in the future? Could I have managed to recover national pride? I definitely think so. Here is why.

He talks about revitalising agriculture and the agro-processing value chain.

As I wrote last week, it is critical to restore property rights and return market value into agricultural land, so farmers can present bankable plans.

Crop and grain research must be strengthened to mitigate climate change, while extension services and irrigation efficacy has to be attended to.

The spin-off effect will be seen in industry which is agri-based. Advancing beneficiation and value addition can only be possible where we have sophisticated industrial efficiency, by adopting policies that reverse capital flight so factories can be re-capitalised to attract new machinery, economies of large-scale production, product and price competitiveness.

Infrastructural development, particularly in the key energy, water, transport and ICTs subsectors, is dependent on our capacity to attract “off-shore”, long-term and affordable billion-dollar partnerships.

A smaller efficient government releases more money into capital expenditure rather than public services salaries.

Unlocking the potential of Small to Medium Enterprises begins with organised micro finance and strategic alliances with blue-chip corporates. Once there is banking confidence, borrowing-to-do-business is easier while higher disposable incomes can support SME products and services without being stifled by cheap imports.

Encouraging private sector investment has, as I have mentioned, to do with good investment and labour policies, affordable/accessible finance, a functional banking system, a vibrant middle-income consumer market and comparative advantage.

Without our own currency, it will be difficult to restore and build confidence and stability in the financial services sector.

It is the citizens that save money, thus if they cannot generate enough of it, they will keep the little they have under their pillows.

Strict banking controls and a liquid Reserve Bank of Zimbabwe are part of this restoration calculus.

Most vibrant economies survive on joint ventures and public private partnerships, but “boosting the role and performance of State-owned companies” is not the way.

The State should stay out of business, unless, like in the case of Ethiopian Airways, such companies like TelOne, GMB and NRZ become 100% private State entities with properly constituted, professional boards.

I am not sure what “modernising labour laws” means, but certainly the “new” labour law has no “win-win” content. Modern labour laws are those in line with ILO provisions, offering job security, but also reassuring employers that the labour market does not become our albatross around their necks.

Our national Constitution and laws have sufficient teeth to deal with corruption — only if adhered to.

A functional, independent anti-corruption commission with suitable investigative and “arresting” powers backed by a professional judiciary and police is the panacea to corruption.

Professional, well-remunerated, highly-motivated, efficient public service that adheres to a strict code of behaviour adds value to this point.

Mugabe finally refers to implementation of Special Economic Zones (SEZ) to provide the impetus for foreign direct investment.

According to Wikipedia, “in these zones, business and trades laws differ from the rest of the country. … The aims of the zones include: increased trade, increased investment, job creation and effective administration.” My strong belief is that Zimbabwe in its entirety must be a SEZ with fair, just and liberal tax, trade, customs and labour regulations.

We need better incentives and more progressive investment policies. This will encourage export-oriented toll manufacturing and regional competitiveness, especially for neglected regions like Masvingo, Manicaland, Matabeleland North and Bulawayo.

Successful EPZs are in Bangladesh (Chittagong); Cambodia, and of course, Guangdong province (China).

Ethiopia has Oriental in Dukem (near Addis) that produces electrical machinery, construction materials, steel and metallurgy.

Mauritius’ Jinfei Economic Trade and Cooperation Zone produces excellent textiles, while South Korean FEZs are designated by law to facilitate foreign investment, and thereby to strengthen national competitiveness and seek balanced development among regions by improving the business environment for foreign-invested enterprises and living conditions for foreigners.” The China Ferrous Metal Mining Corporation SEZ in Zambia “focuses on garments, food, appliances, tobacco and electronics combining expedited customs and administration procedures with tax incentives, to attract increased investment”.

My conclusion is that Mugabe deliberately evaded the Eleventh Point because he resents and despises effective democracy.

Zimbabwe needs to adhere to proper constitutionalism so we can have free, fair and credible elections.

We have a dysfunctional Parliament paralysed by Zanu PF hegemony.

This portrays a banana republic, failed state, high country risk impression that repels international friendship and cooperation. What we need are more cents and dollars in our pockets and less political hot air.

  • * [abridged version] Welshman Ncube is MDC president