Zimbabwe A Country Rising from the Brink © AFP The Country and its Residents H.E. Emmerson Dambudzo ON APRIL 17, 1980, UNDER THE RULE OF ROBERT MUGABE, THIS SPECTACULAR COUNTRY CELEBRATED ITS Mnangagwa, President of the Republic of INDEPENDENCE AND CHANGED ITS NAME TO ZIMBABWE. n Now, almost 40 years later, infrastructure and noted the need district in the country. If you look at food crop is corn (maize), which is Zimbabwe is open for business and to address the root causes of our budget that was presented last grown throughout most regions of steadily moving towards their 2030 conflict, which include poverty, month, you will see that we complied Zimbabwe. Other food crops include vision of an upper-middle-income inequality and disputes over land with the Constitution where we set wheat, millet, sorghum, barley, economy under the direction of and resources. aside $310 million that will benefi t cassava, peanuts (groundnuts), the new President, H.E. Emmerson every local authority in the country, soybeans, bananas, and oranges. Dambudzo Mnangagwa. be it rural or urban,’ continued Zimbabwe is predominantly a President Mnangagwa. Zimbabwe’s ethnic and linguistic There is a brighter savanna landscape and the 5,000 diversity is reflected in the 2013 Although the agricultural sector square mile Hwange National Park, constitution, which gives official future in the country, declined dramatically in the early a UNESCO World Heritage Site, status to 16 languages: Chewa, better than where we are 21st century, it is still an important holds some of the densest wildlife Chibarwe, English, Kalanga, Khoisan, coming from. We understand productive sector of the country’s concentrations in Africa. Hwange Nambya, Ndau, Ndebele, Shangaan, the challenges that we are economy and one that President National Park and Mana Pools, another Shona, sign language, Sotho, Tonga, Mnangagwa plans to focus on in UNESCO World Heritage listed site, Tswana, Venda, and Xhosa. President currently experiencing but the coming years. But he won’t are among the best National Parks Mnangagwa himself was born in in the new dispensation we stop there. Recognising the need and safari destinations in the world Southern Rhodesia to a large Shona have programmes meant to to improve nutrition and broaden and Victoria Falls, known as ‘The family, who were farmers, and both income opportunities, Zimbabwe’s Smoke that Thunders’ is the largest he and his father were political develop rural areas, including President has also recently extended waterfall in the world, and a major activists in the 1960s. This activism, devolution. So, things will support to the livestock, fisheries global tourist destination. aimed at correcting skewed colonial change for the better soon,’ and wildlife sectors. President Mnangagwa’s land ownership, led to his eventual Zimbabwe is a landlocked country, government is also paving the way imprisonment. However, after said President Mnangagwa. consisting mainly of a vast plateau, for foreign investment. He has his release he studied law at the with a land area of 391,000 square made the landmark statement that, University of London, becoming kilometres, or roughly three times other than for certain minerals in a practicing attorney, and after Zimbabwe’s population on the whole the size of England. Although the mining industry, the 50% local Zimbabwe’s independence, returned is very young, with more than one- the country is entirely within the ownership policy has been revoked. to politics in his home country. third under 15 and about one-third between the ages of 15 and 29. About tropics region, it enjoys balmy There is now a rising degree of Zimbabwe has a bright future and one-third of the total population sub-tropical conditions due to investor confidence in Zimbabwe President Mnangagwa recently lives in urban centres, particularly its high average elevation, and and the government is committed acknowledged that peace, security, in either Harare or Bulawayo, but provides fertile agricultural land to making Zimbabwe’s social and stability, democracy and good President Mnangagwa is committed and fruitful conditions. In fact, this economic environment conducive governance are essential ingredients to working with local authorities area regularly generates about to market growth. for sustainable development, and an in both rural and developed areas 15% of Zimbabwe’s gross domestic The change in Zimbabwe’s essential part of Zimbabwe’s vision and noted that government policy product and more than one-half of leadership and their vision and goals of its future. should ensure that both rural and the total labour force is engaged for the country is the beginning His government has outlined urban areas benefit from local directly in agricultural activities. of Zimbabwe’s journey on its path steps required to modernise the resources.‘We are committed to the Crop production is well diversifi ed, to economic, political and social country’s roads, airports and other development of every region and although the most important recovery, and into a bright future. The Economy, Vision and Financial Future of Zimbabwe

ZIMBABWE IS A COUNTRY RICH IN NATURAL MINERALS, AND WITH A PEOPLE DEDICATED TO ITS SUCCESS. THE COUNTRY FACES CHALLENGES TO STABILISE ITS ECONOMY, ESPECIALLY IN TERMS OF ITS FINANCIAL SECTOR. TO OVERCOME THE NATIONAL ECONOMIC DOWNTURN OF THE LAST TWO DECADES, FURTHER CHALLENGES LIE WITH THE REDUCTION OF NATIONAL DEBT, THE STIMULATION OF GROWTH AND INVESTMENT, AND IN INCREASING TAX REVENUE COLLECTION.

n Despite these economic pressures, future. Tobacco sales have reached growth by using tax and business stabilised as well, with shortages, President Mnangagwa has declared a record high, and as its second incentives to attract foreign long queues and protests soon to his intention to return the country biggest export, it could help ease investment and technology. The be a thing of the past. President to the prosperity and economic the country’s dollar shortage. Zimbabwe Special Economic Zones Mnangagwa attributed the promise of earlier years and though Tobacco also accounted for a Authority (Zimseza) is expected to shortages to ‘the growing economy it is a ‘monumental task’ he believes quarter of Zimbabwe’s $3.8 billion announce even more SEZs in the and rampant illegal currency fuel that Zimbabwe is ‘moving in the total export earnings in 2017, coming months. trading activities,’ adding that right direction’. only behind gold. With these two Overall Growth Economy the government ‘will not allow The Transitional powerhouse industries, gold and businesses to trigger a new round tobacco, Zimbabwe was able to get Overall, the Zimbabwean economy of price increases.’ Prior to the price Stabilization Programme through a difficult time in its history. showed modest but sustainable increase, the government was in In that vein the government has Tobacco is projected to continue growth in 2018, and expanded by effect subsidising fuel prices by recently announced the Transitional to perform well, despite potential 3.5%. This growth was primarily selling fuel at prices less than cost, Stabilization Programme 2018- drought conditions. driven by agriculture and supported but it scrapped the program because 2020. This programme contains by the peaceful elections. The Tourism of the damaging effect of this policy the government’s plans to ensure economy is also expected to grow on foreign exchange reserves. financial stabilisation, attract foreign Lonely Planet has very aptly a further 4.2% in 2019 and 4.4% investment, improve trade and described Zimbabwe’s tourism 2020. Again, the main drivers of Foreign Currency stem currency challenges, including sector by noting that, ‘Throughout this growth are the agricultural and A lack of U.S. dollars in Zimbabwe its past two decades of governmental inflation pressures. Zimbabwe’s mining sectors, as well as increases causes obstacles to businesses who mismanagement, political violence ‘open for business’ dispensation, in public and private investment. need to import goods, and investors and economic disaster, Zimbabwe which began in November 2017, is who can’t access their money in the continued to welcome visitors with Stabilisation of Basic the start of its transition to a private stock market. Zimbabwe abandoned the same grace and politeness sector economy, which will allow it Commodities its currency in 2009 in favour of the N T IMES TO they were famed for…. In 2017 the to achieve its ‘Vision 2030’. The supply of basic commodities dollar after an economic downturn post-Mugabe dawn that millions continues to stabilise as well. saw hyper-inflation at its peak 3-Pronged Strategy: of Zimbabweans longed for finally ASHING Measures have been put into place reaching 500 billion percent. But a Agriculture, Tourism and arrived, and their excitement of what to ensure the availability of basic widening trade deficit and declining the future may hold is still palpable to Special Economic Zones commodities at affordable prices. lack of foreign investments have all who visit.’ The government is adopting a three- Finance and Economic Development led to dollar shortages. Finance pronged strategy to help achieve Ranked as the third best tourist Minister Professor Minister Ncube and President its economic vision for Zimbabwe. location to visit next year, tourism says the government is committed Mnangagwa are working with These are based on Agriculture, in Zimbabwe is going from strength to price stability and restoring foreign investors to draw in a cash Tourism and the creation and to strength and is expected to confidence in the economy including infusion, negotiating with foreign subsequent focus on Special continue to rise by 2.5% per year by lifting the imports ban known as lenders and creating conditions to Economic Zones. to a total of 3.3% of total gross Statutory Instrument 122, in order reduce unemployment and increase domestic product in 2028. This will to increase the flow of basic goods TO T HE W t ising supplemen TO Agriculture money flows. also contribute to the growth of in to the market. Agriculture continues to play a direct employment for Zimbabwe’s RTGS Dollars He says, ‘In terms of stabilizing crucial role in Zimbabwe’s economic citizens from 27,500 jobs in 2017, to prices in shops, the initial lifting of In February, the much-awaited 33,000 jobs in 2028. SI 122, which is temporary of course, monetary policy statement Special Economic Zones is designed to increase supply of presentation by RBZ Governor John Panonetsa Mangudya introduced A dver a S pecial basic commodities on the market for | The government of Zimbabwe has set up 13 Special Economic Zones ordinary people and all of us, and to the RTGS dollars as a currency to (SEZs) where business and trade laws make sure prices also come down.’ trade along the other currencies in the domestic market. are different from the remaining Stabilisation of Fuel Prices parts of the country. Generally, The currency reform which resulted these areas are aimed at allowing and Accessibility in the conversion of bond notes and increased trade, higher investment, With an increase on the state- all electronic money into a currency greater job creation and more controlled price of fuel, the called the RTGS dollar, will help effective administration. These government hopes the fuel to mitigate shortages of foreign zones will allow rapid economic supply is well on its way to being currency and inflationary pressures. Thursday • A pril 11 2019 Thursday 2 Dr. John Mangudya, Governor, Reserve Bank of Zimbabwe (RBZ)

New Revenue Streams The Reserve Bank The government will continue to look Central banks are at the heart of who believes in discretionary field charges of corruption were laid at its for clever, technologically advanced fundamental economic variables, and monetary policies and in the doorstep. Dr Mangudya took swift ways to collect revenue, including and have far reaching impacts and rational expectations hypothesis.’ action to manage the accusations focussing more on the informal responsibilities to drive economic Discretionary policies in economics and the panic that these accusations sector (that part of the economy development and monetary stability allow for decision-makers to form triggered within the central bank. that is not taxed or monitored in any country. The Reserve Bank policies on case-by-cases bases, The RBZ quickly organised and by government generally). One of Zimbabwe (RBZ) is no different. instead of following a set of carried out investigations into the such revenue-generating tax is However, the last two decades have predetermined ideological rules. Dr accusations and, in coordination the ‘money transfer tax’, which proven problematic for the RBZ, and Mangudya, and other proponents of with law enforcement agents, was raised by switching the rate today it works hard to fight its way the discretionary policy argue that eventually cleared the four central from 5 cents per transaction to 2 back from the problems instigated our understanding of the workings bank bosses of any wrongdoing. cents for every dollar transferred under the previous governor’s of the economy is sufficiently Though the future of the RBZ and electronically. tenure. astute and our ability to access real- its monetary policies are still being This tweak to the money transfer The RBZ traces its history to the time economic data is sufficiently resolved, Dr Mangudya continues tax will expand the tax base and Reserve Bank of Rhodesia, founded great that in practice, pragmatic to reinforce his commitment, ‘to help the government tap into a in 1964. It has long performed the application of discretionary policies deal with stability of prices and previously largely untaxed portion essential functions of creating create a stabilising influence on the bring sanity to the financial services of the market. Furthermore, this and enacting monetary policies, economy. sector.’ He understands as well that additional revenue stream will ease serving as an advisory body to the One frequently cited example of increasing production and exports the deficit burden, provide more government and safeguarding discretionary policy in action is will stimulate the economy and do money for the health sector and the country’s gold and precious when the U.S. Federal Reserve used much to strengthen the currency, even fund Parliament. If this tax minerals. extreme monetary base expansion both bonds and dollars. had been in place since January The RBZ is organised under The in order to prevent the recession Indeed, the RBZ will need to handle 2018, the government would have Reserve Bank of Zimbabwe Act, of the 2000s from becoming a full- the multi-currency issue, but collected approximately $1.3 billion, blown depression. Dr Mangudya there are options to consider. One which provides for the appointment A S pecial A dver an amount that will go a long way of a board of directors and a believes that adoption of these option proposed is to promote the to easing revenue challenges in governor. The current governor types of policies can have an increased use of the Rand because Zimbabwe. is John Panonetsa Mangudya who equally stabilising effect on the it is more readily available than the Takeaway was appointed in March 2014. Dr Zimbabwean economy. Dollar. Yet, with no consensus at the Mangudya holds a PhD in economics time, stakeholders will need to agree Given its vast natural resources, Surely Dr Mangudya is on the right from Washington International on a common position, including t ising S upplemen to T HE W relatively good infrastructure and track in the RBZ. CBZ Holdings was University, which makes him how to tackle inflation, and the comparatively skilled labour force, one of the most profitable banks eminently qualified to head up the foreign exchange situation. Zimbabwe has an opportunity to in the country under Mangudya’s RBZ and help lead Zimbabwe into a embrace existing supply chains in watch and his appointment to the President Mnagagwa, however, bright future. Africa and elsewhere. This would RBZ served as a confidence booster is confident that the RBZ and its create jobs, boost the availability Dr Mangudya also served as to the financial markets. His actions governor will soon be shepherding of essential goods and lead the way Managing Director of CBZ Bank since have reinforced this belief. in a new golden economic era for for meaningful economic recovery. Limited and CEO of the state-linked Dr Mangudya’s monetary policies Zimbabwe. He said, after meetings More importantly this would create CBZ Holdings, and is facing the seek to stimulate circulation of with world leaders in October 2018, a renewed engagement with the challenges of taking over the central foreign currencies, like U.S. dollars ‘Those we met were impressed by the bold economic and political government, a regeneration of civil bank in a struggling economy but without completely abandoning ASHING society and will accelerate political head on. Former Minister of the current system of bond notes. reforms we are undertaking, and our reform and enhanced economic and Finance said, ‘Dr He aims to drive confidence and commitment to bringing progress, political governance. Mangudya is a Keynesian economist encourage people to use the U.S. prosperity and real change to TO N T IMES dollars that have been driven out of Zimbabwe.’ the market, by either spending them in the Zimbabwe market system, | or by depositing them within the banking system. Thursday • A pril 11 2019 Unstable economic conditions and rampant inflation have led some economists to suggest that the RBZ needs strong reform. This reform began in late 2018, with Dr Mangudya enacting major changes at the executive level of RBZ when

3 Revenues Information, THE ZIMBABWE REVENUE AUTHORITY (ZIMRA) IS THE Publicity GOVERNMENTAL ORGANISATION RESPONSIBLE FOR COLLECTING ALL and Broadcasting Services REVENUE STREAMS, INCLUDING Ms. Faith Mazani , TAXES, FOR THE GOVERNMENT OF Commissioner General , Minister for Information, ZIMRA ZIMBABWE. Publicity and Broadcasting n It’s mandate to collect revenue, launched a fiver year strategy Services facilitate trade and travel, advise anchored on “The Four P’s”. Hon. was government on fiscal and economic The first is People. A good team will appointed Minister for Information, matters and protect civil society embrace and enhance the vision of Publicity and Broadcasting is supported by its bold vision and a department. Services in September 2018. Upon high values: The second is Processes. With her appointment she was clear Vision: to be a beacon of excellence international ‘best practices’ in that her highest priority must in the provision of fiscal services and place, Mazani knows her department be to rebrand Zimbabwe’s image facilitation of trade and travel. is meeting its responsibilities head to bring it in line with President Mnangagwa’s ‘Zimbabwe is open Values: integrity, transparency, on and with efficiency. for business’ drive. fairness. The third is Partnership. ZIMRA sees As one of the rare female ministers Ms Faith Mazani, as Commissioner itself as a partner with the taxpayers in the Zimbabwean government, General of Zimra, is the perfect themselves. To collect revenues Mutsvangwa is a dynamic and ‘Good laws are those that have a representation of both this vision from the citizenry, they must abide popular force for good. When buy-in from those they intend to and these values. With over 35 by an agreed social contract. she was appointed as Minister of govern,’ she says. Mutsvangwa years of experience working with And finally, fourth is Project State for Manicaland Provincial continues to welcome the media’s both regional and international Approach. Without exception, good Affairs, she vowed to give her all recommendations to the ministry organisations including ATAF, management creates a good project to turn around the fortunes of the to assist in their advisory role to COMESA, the OECS and SADC, among outcome and delivery, including province. the government. others in revenue administration, delivery that is on time, on budget Mutsvangwa also hopes to change including customs and both direct and within stated parameters. With a degree in marketing and indirect taxes, she herself is a from the City University in New public perception and create a beacon of organisation and efficient These 4Ps work hand in hand to York, and a master’s degree in more accurate image of Zimbabwe administration within ZIMRA. help deliver ZIMRA’S strategic business administration from abroad. As a first step she wants objective to provide sustainable Baruch College, there’s no one all government ministries to Mazani also holds a bachelor’s N T IMES TO domestic revenue. In the past this better positioned to help execute have a functional website to degree in business studies from has meant the introduction of the government’s new vision for better disseminate information the University of Zimbabwe and a innovative new revenue streams, Zimbabwe. Speaking during a publicly and to post cabinet ASHING master’s degree in economics from such as the Zimbabwean value dinner to honour and farewell her meeting media briefings. She the Yokohama National University added tax that replaced sales tax, service in Manicaland, Mutsvangwa further believes public perception in Japan. She is without a doubt presumptive tax, road tolls and clarified her earlier message: can be changed by promotional eminently qualified to drive the new systems like Asycuda World, an public relations efforts aimed at economic reforms, programs and automated system that administers foreign markets. This will include vision of President Mnangagwa. the country’s customs, and a self- packaging Zimbabwean content One of these programs is the assessment system of taxation. It and material on various economic President’s well-known fight against also includes a group of measures We need to portray our sectors and distributing it to corruption within the Zimbabwe that maximise revenue collection, country in the right way embassies worldwide. Secondly, government. Ms Mazani has followed grows the tax base, enhances through social media and by inviting foreign media to set TO T HE W t ising supplemen TO suit, and ZIMRA has implemented integrated data management, up bureau offices in Zimbabwe so a Loss Control Division that tracks increases security and agility in newspapers, and I need to their journalists will have a clearer incidences of corruption and the international flow of goods and urge journalists to report picture of the country. And thirdly corruption-related cases that are services, modernises infrastructure professionally and in a way by conducting media seminars for reported and investigated against and integrates ICT systems. that markets our country.’ foreign journalists and business ZIMRA staff. Moreover, ZIMRA So far, ZIMRA has done a great job people willing to work in Zimbabwe. also conducts lifestyle audits on A dver a S pecial | generating and collecting revenues. Mutsvangwa says the biggest employees to ensure that the staff is In 2018, it saw collections reaching challenge in Zimbabwe’s future all behaving in a moral manner. This $5 billion at year’s end. Mazani told She believes that Zimbabwe is the economy, but meeting this falls squarely in line with the values journalists that revenue collection needs to embrace media reform, challenge involves Zimbabweans espoused by ZIMRA. had been consistently above target in order to ensure the issues that working with foreign investors. The Beyond ‘fixing’ problems, such as from January to November 2018, on are being reported are done so best way to move this forward is possible corruption, Mazani knows the back of the various interventions professionally and factually, and by creating a more accurate public that proactive goals are the best aimed at maximising collections. she believes that members of the perception of Zimbabwe. That is way forward within a government media themselves should help just what Monica Mutsvangwa department. To that end, ZIMRA continued on page 6 >> to formulate the new legislation. intends to do. Thursday • A pril 11 2019 Thursday 4 Public Service, Labour and Social Welfare HON. SEKAI NZENZA WOULD BE THE FIRST TO ADMIT THAT RETURNING TO ZIMBABWE AFTER MANY YEARS ABROAD WAS NOT EASY, BUT SHE ALSO KNOWS THAT IT WAS WITHOUT DOUBT THE RIGHT DECISION. DUE TO HER STRONG SENSE OF PATRIOTISM, NZENZA, A NURSE, WRITER, CULTURAL CRITIC AND POLITICIAN, HAD A STRONG YEARNING TO RETURN TO THE ZIMBABWE OF HER YOUTH AND WORK TO MAKE IT A BETTER PLACE. n Hon. Sekai Nzenza would be the fi rst to admit Social Security The new government under President Mnagagwa that returning to Zimbabwe after many year Zimbabwe’s National Social Security Authority has opened the way for new investment abroad was not easy, but she also knows that it (NSSA) has an important mission – to provide opportunities, both locally and abroad through was without doubt the right decision. Due to sustainable social security and promote its pro-business mantra, ‘Zimbabwe is open for business’. This campaign will rejuvenate the foreign her strong sense of patriotism, Nzenza, a nurse, occupational health and safety to all members investment sector within Zimbabwe and help to writer, cultural critic and politician, had a strong through responsive schemes and services. This support the President’s vision of transforming yearning to return to the Zimbabwe of her youth means that it is responsible for instituting Zimbabwe into an upper-middle income economy and work to make it a better place. measures intended to protect an individual in by 2030. It also impacts the NSSA and the wider Nzenza recognises that there are some big situations or conditions where his or her livelihood economy in some key benefi cial ways. challenges facing Zimbabweans at the moment, and or well being is under threat. It’s an important some of these relate to the delivery of public services role, and it’s one that the NSSA and its General First, it opens up opportunities for strategic and goods. She sees the government’s wage bill as Manager, Mr David Makwara, take very seriously. partnerships with other investors. This helps to meet the NSSA’s goal of becoming a preferred one of the most signifi cant of these challenges, as it In fact, the NSSA is looking beyond the basic domestic anchor partner to local, regional consumes a large part of public revenues. social security schemes that provide benefi ts to and international investors and enables it to The National Social Security Authority (NSSA) is pensioners. Its long-term plans are more expansive participate in projects of national importance and also under Nzenza’s and the Ministry’s purview. and aspirational. Part of these plans includes expand from its traditional investment classes of Established in 1989 under the terms of the NSSA extending coverage to the informal sector, which money markets, properties and projects and move Act of 1989, the NSSA administers social security is estimated to employ more than 90% of the into infrastructure and development. Mr Makwara public funds for the benefi t of about 1.3 million workforce. NSSA is in the early stages of carrying says of this opportunity, ‘NSSA is an ideal partner contributors. At the moment it pays pensions to out feasibility studies for the development and in terms of investment and the muscle we have about 180,000 members. implementation of this scheme. gives comfort to both foreign and local investors.’ Nzenza knows there is a need to create a The NSSA will also continue its work to enhance Second, it widens the contributor base by creating Zimbabwean sovereign wealth fund that focuses current schemes to combat poverty and raise the jobs, as current companies expand, and new A S pecial A dver on sensible investments and that will truly benefi t standard of living for Zimbabweans. Two schemes capital investment is brought into Zimbabwe. pensioners. She cites the Australian government’s currently in operation are the Pension and Other NSSA will also benefi t from widened social security ‘Future Fund’ as a successful example of this. Benefi ts Scheme and the Accident Prevention and coverage for the new extended contribution base. Borrowing from the experiences of successful Workers Compensation Schemes, which provide President Mnagagwa’s government has also taken and well-run sovereign wealth funds that benefi t benefits covering old-age, employment injury, steps to promote better performance within a nation’s citizens will help Zimbabwe fi nd a better invalidity and survivors. t ising S upplemen to T HE W way to serve its citizens going forward. pension plans, such as NSSA, in order to increase In 2017 the NSSA won two international awards the country’s socio-economic development. Mr There is also a need for reforms to strengthen from the International Social Security Association Makwara says of this move, ‘the government has public service management and administration. with respect to the Funeral Benefi t Enhancement categorised SEPs (Simplifi ed Employee Pensions) From the Ministry’s point of view, these would and the Mobile Clinic initiatives, both of which according to their potential for turnaround as effectively reward an effi cient and highly capable were recognised as unique innovations to the some have been earmarked for privatisation, workforce by offering competitive salaries and social security space. commercialisation and restructuring.’ These benefi ts. Effective management systems would The NSSA is also an important actor in Zimbabwe’s changes will improve the performance of these go a long way to helping to achieve this goal by economy with an investment portfolio valued pension plans and have a beneficial knock on helping to identify the right employee, with the at around $1.6 billion spread across fixed effect within the greater economy.

right skills for the right job. ASHING income, listed equities, property investments, Makwara says, But Zimbabwe does have the unique challenge infrastructure and other alternative investment of how to draw many of its highly talented options. In a diffi cult economy it can sometimes citizens back from abroad. Nzenza recognises be challenging to ensure that investments are TO N T IMES that Zimbabwe has been exporting talent to generating growth and creating sustainable More often than not, visitors to other countries, and there is strong need to income streams to cover all its benefi t obligations Zimbabwe are pleasantly surprised attract these skills back and bring these talented and fund operating costs. when they discover the mismatch |

Zimbabweans home. She believes strongly that Mr Makwara says the NSSA manages this between popular discourse in the media Thursday • A pril 11 2019 such highly skilled individuals will come back to through an investment policy that ‘provides for and reality on the ground.’ Zimbabwe once there are increased investments the investment of surplus funds in a diversifi ed into the public service sector and a greater move portfolio that strikes a balance among key towards Zimbabwe becoming a middle-income investment themes of income, growth and Communicating information that is on the country as the President envisions. impact.’ Its investment policy also takes into ground, accurate and balanced will go a long way But she is quick to say, ‘Do not wait…for 2030…. account the current economic reality and sets to increasing investors comfort and confi dence Come back now so that we can help build Zimbabwe about achieving real growth by investing in assets as well, which will be good for both the NSSA and together.’ that can weather infl ation. Zimbabwe as a whole.

5 National Parks and Wildlife FOR TOURISTS, ZIMBABWE CONTINUES TO BE ONE OF THE FRIENDLIEST AND MOST EXQUISITE COUNTRIES IN THE WORLD. DESPITE ECONOMIC Mr. Fulton Upenyu Mangwanya, AND SOCIAL CHALLENGES THAT HAMPERED TOURISM IN RECENT Director General, Zimbabwe Parks and Wildlife Management Authority (Zimparks) DECADES, IT IS ONCE AGAIN EMERGING AS ONE OF THE WORLD’S BEST AND MOST ICONIC TRAVEL DESTINATIONS.

n In fact, it is currently ranked as the Zimbabwe’s vast national parks and for their great beauty and the unique Zimparks and the act that created it third best travel destination for 2019 wildlife. In fact, the national parks experiences available within them. is a fundamental breakthrough for by Lonely Planet who describes it as constitute upwards of 5 million Their protection is of the utmost conservation. The lands and wildlife ‘one of Africa’s safest destinations’ hectares of land, an incredible 13% importance to the Zimbabwe that Zimparks vows to protect and ‘blessed with ultra-friendly of Zimbabwe’s total land area. government. are of great value not only to the locals, Big Five-filled national parks, Many of Zimbabwe’s parks are Mr. Fulton Upenyu Mangwanya Zimbabweans themselves, but also World Heritage-listed archaeological located in rugged, mountainous was appointed the new director- to all the rest of the world who ruins, forested mountains and, of areas that would not otherwise have general of Zimparks in August 2017. are now able to see this wonderful course, the mighty Victoria Falls.’ a great deal of economic value. The A family man with five children, he landscape and incredible wildlife Much of this well-deserved acclaim national parks were initially founded is described as committed, self- remain pristine into the future. is due to its incredibly diverse as a means of using unproductive motivated, adaptable, technology- landscape, from lush mountains land, but the Zimbabweans have focussed, results-oriented and a and teeming mountain rivers, to responded to modern conservation team player. He was a farm manager >> continued from page 4 vast savannahs and the rolling sand values and have become a world in the 1980s before joining the dunes of the Kalahari. There is a leader in wildlife management. President’s department in 1988 and The actual gross revenue totaled reason why Zimbabwe is home to The Zimbabweans in general, and working his way up the ranks. He $3,978 billion, $350 million ahead five UNESCO World Heritage Sites Zimparks in particular, recognise has a degree of MSc in international of the $3.4 billion target. and a Natural Wonder of the World. that their wildlife resources are relations and a BSc Honours Degree not just an asset to be nurtured, in politics and administration. Some of this success stems Zimbabwe might be known best for from ZIMRA’S shifting tax mixes its game-rich wilderness areas, and but an incredibly rare opportunity His rural background, personality for conservation to ensure benefits traits, education and hardworking towards well-designed, growth- is incredibly popular for its wildlife friendly taxes combined with safaris. Visitors flock to its national continue into the future. values will serve him well in the administration of such an important measures to improve progressivity

N T IMES TO parks to see the Big Five: elephants, Zimparks was established under the organisation as Zimparks. and to remove inefficiencies and lions, leopards, rhinos and buffalos. Parks and Wildlife Act of 1975. This regressive tax expenditures. It is also home to some many more Act also set out a system of national Mr Mangwanya has been working

ASHING species, including cheetah, giraffes, parks, botanical reserves and closely with President Mnagagwa’s Of course, ZIMRA’s biggest hippos, crocodiles, wild dogs, gardens, sanctuaries, recreational government to ensure that Zimparks challenge remains formalising the sable, roan, eland and an incredible parks and safari areas. Over the is helping move the economy of informal sector, and implementing diversity of bird life. years the Act has been amended Zimbabwe forward, particularly in tax schemes that target the parts of the economy that are not Zimbabwe Parks and Wildlife and refined to allow for the adoption relation to tourism, into the new of dynamic wildlife-protection vision for Zimbabwe’s future. On already taxed, revenue-generating Management Authority (Zimparks) or monitored. Latest International is the Zimbabwean governmental procedures. This is great news as the occasion of the President’s visit many of Zimbabwe’s national parks, to Zimparks in December 2017, Monetary Fund figures show that authority that has the honour and Zimbabwe has the second largest immense responsibility of managing especially Hwange, Mana Pools and Mangwanya said, Victoria Falls, are known worldwide informal economy (by percentage ‘As you know, the national parks of its total economy) in the TO T HE W t ising supplemen TO is part of the cog of tourism… the world, and experts say innovative President is on the drive to make sure measures and policies are critical that tourism picks up. Visitors come in extracting fair revenues from here for the heritage that we have Zimbabwe’s informal economy. and what we are doing is to push up tourism so that we benefit as a Ms Mazani is ready to tackle this as well. ZIMRA has begun making

A dver a S pecial country.’ | presentations to Zimbabwe’s Zimbabwe has proven to be a leader Treasury department to review the in wildlife and land conservation tax structure for small and micro and many other African countries enterprises. The goal is to see the have followed suit. Zimparks has former paying a turnover-based been instrumental in changing the tax, while the latter could pay a mindset of the people of Zimbabwe, fixed amount. These innovative from hunters and poachers to revenue streams will have a great custodians of the land and its many impact on the development of varied creatures. sustainable domestic revenue. Thursday • A pril 11 2019 Thursday 6 The Aviation Industry HISTORICALLY, AIR TRAVEL IN ZIMBABWE HAS BEEN THE PRESERVE OF THE ZIMBABWEAN ELITE, DUE TO ITS GENERALLY HIGH COSTS. HOWEVER, IN 2017, THE NEW GOVERNMENT BEGAN TO CHANGE THIS STANCE BY INCREASING COMPETITION AMONG AVIATION PLAYERS. THIS LED TO AN ALMOST IMMEDIATE CHANGE AS A VARIETY OF LOW-COST CARRIERS BEGAN TO EMERGE. THIS HAS OPENED UP AIR TRAVEL BOTH DOMESTICALLY AND INTERNATIONALLY, AND, THOUGH STILL A FAR CRY FROM ITS HEYDAY IN THE LATE 90S, PASSENGERS UTILISING AIR TRAVEL IS ONCE AGAIN ON THE RISE. n This all bodes very well for and aviation will help him do this. this department, and CAAZ is ready also increase services for cargo Zimbabwe, a country that After all it is, above all else, the entry to meet rising demand and modern entities and rehabilitate navigational relies on its incredible tourism into this incredible country, and international standards. systems and infrastructure. opportunities. Aviation plays a necessary for its future. This is a task CAAZ is well equipped The funding for this project, as well central role in supporting tourism The Civil Aviation Authority of to handle, as the recent Victoria Falls as others will primarily come from and, by extension, supporting Zimbabwe (CAAZ) was established International Airport renovation CAAZ’s own revenues. Chawota sees sustainable economic growth, a in 1999 and is responsible for shows us. The upgrade means that revenue increasing from the natural fact that President Mnangagwa regulating the aviation sector in tourists seeking to visit the UNESCO growth of traffic that is occurring understands very well. It is his goal Zimbabwe. It is also the entity that World Heritage Site will have a much in Zimbabwe, both from tourism to help Zimbabwe rise towards the provides air navigation, technical easier job of it, as the new facilities and other travellers, but also from a government’s 2030 vision of an services, airport development are capable of handling around 1.5 growth in the cargo section as more upper-middle-income economy, and operations, and regulates and million passengers annually while consumers turn to exporting goods enforces flight safety standards. its new runways can accommodate by air rather than by road. It’s a big job, and, as David Chawota, some of the largest modern jetliners. In general, CAAZ is creating an CEO and General Manager of CAAZ Mr Chawota says the next major environment to facilitate growth has said, ‘the aviation sector’s priority of CAAZ will be ‘to and progress, and this is already performance is largely dependent on rehabilitate the Robert Gabriel occurring throughout the aviation the dynamics of general economic Mugabe International Airport.’ This sector. This potential makes CAAZ activities.’ But though this may international centre is located in a very interesting opportunity for have posed challenges in the past, Harare and is the largest airport in investors as well as it moves from things have begun to change for the country. This renovation would strength to strength.

Presidential Advisors A S pecial A dver POLITICIAN, DIPLOMAT AND BUSINESSMANS HAS LONG SERVED ZIMBABWE. FROM HIS FIRST POST AS A DIPLOMAT IN BRUSSELS TO HIS CURRENT ROLE A SPECIAL ADVISOR TO PRESIDENT

MNANGAGWA, HE HAS ALWAYS HAD ZIMBABWE’S BEST INTERESTS AT HEART. AND MR MUTSVANGWA’S VARIED t ising S upplemen to T HE W CAREER WILL CERTAINLY HELP HIM GUIDE ZIMBABWE TOWARD THE PRESIDENT’S ‘VISION 2030’.

n From the beginning Mutsvangwa was an avid supporter of President The Chinese have billions of dollars’ worth Mnangagwa. In fact, he was one of the only politicians willing to oppose Grace of capital invested in everything from Christopher H. Mutsvangwa, Mugabe, the former first lady, when it became clear that she was attempting agriculture to construction in Zimbabwe. Ambassadeur to run the government on behalf of her elderly husband, President Mugabe. China also provides the largest markets Mutsvangwa knew that President Mugabe’s inability to reverse Zimbabwe’s for Zimbabwe’s exports, including its most important agriculture exports – economic crisis had ‘left the country on a knife edge’ and was concerned tobacco and cotton. As Mutsvangwa’s close ties with China remain, his input that the first lady intended to oust then vice president Mnangagwa and take and advice to the President and his government is invaluable. over the government leading to a continuation of their destructive legacy. Though he is extremely close to the President, Mutsvangwa remains Mutsvangwa, described as the eloquent leader of the War Veterans, was so committed to causes close to his own heart. One of these is the opposition ASHING convinced of Mrs Mugabe’s inability to run the country that he opposed of economy-draining, competition-limiting monopolies, and Mutsvangwa

her vehemently, and in effect became a prime mover in the anti-Mugabe has been working against these monopolies since the Mugabe-era. This is TO N T IMES campaign. When 93-year-old Mugabe was removed from office by military often an unpopular position, as certain types of monopolies, corruption forces on 15 November, tens of thousands of Zimbabweans marched through and self-advancement have been part of the status quo in Zimbabwe for Harare and Bulawayo in celebration. Mutsvangwa also organised a solidarity many, many years. But Mutsvangwa knows that monopolies are the enemy

rally to support the military action. of economic advancement. They must be shed if Zimbabwe wants to meet |

Mr Mutsvangwa’s varied career has certainly helped him in his role as Special the President’s ‘Vision 2030’. Thursday • A pril 11 2019 Advisor to the President. A veteran of the Rhodesian Bush War, Mutsvangwa Ambassador Mutsvangwa is often credited as ‘the brains’ behind the has close ties with the Zimbabwe Defence Forces and remains the Chairman downfall of corrupt officials and monopolies and has left no uncertainty in of the Zimbabwe National Liberation War Veterans Association. the fact that he will continue this fight under the new presidential regime as Additionally, in 2002 Mutsvangwa was appointed as the Zimbabwean he works to move Zimbabwe towards a genuine democracy that represents Ambassador to China and served four years in that role. He was tasked with a modern model nation. deepening the country’s foreign policy away from the West and towards With such a rich culture, incredible land and a forward-thinking, motivated China, a task he fulfilled admirably. In fact, China is Zimbabwe’s fourth largest leader, Zimbabwe truly is a country ready to take a prominent seat at the trading partner and its largest source of investment. world table. 7 Dr Blessing Mudavanhu, Group CEO, CBZ The Banking Industry Holdings Limited THE ZIMBABWEAN BANKING INDUSTRY CONSISTS OF THE RESERVE BANK OF ZIMBABWE AND DEPOSIT-TAKING INSTITUTIONS SUCH AS COMMERCIAL BANKS, CO-OPERATIVES, MICROFINANCE INSTITUTIONS, BUILDING SOCIETIES AND MERCHANT BANKS. IN 2017 TOTAL BANKING SECTOR ASSETS GREW BY 9.6% TO US$11.25 BILLION, MAKING IT AN INTEGRAL PART OF ZIMBABWE’S ECONOMY AND OF ITS ECONOMIC RECOVERY. OF THESE VARIOUS FINANCIAL INSTITUTIONS, CBZ BANK IS ONE OF THE LARGEST, REPRESENTING A MARKET SHARE OF AROUND 22%, AND IS ONE OF THE LEADING BANKS IN ZIMBABWE.

n CBZ Bank offers a wide range of previously chosen to remain outside government’s free inputs support banking and financial services to of the formal banking system. program that targets smallholder farmers. individual and corporate customers. Banking Strengths It is in a strong position as well, There are also plenty of The banking industry in Zimbabwe, especially within a country that is opportunities to invest in the particularly CBZ, has begun to invest currently suffering under economic country’ infrastructure, including challenges. It holds a short-term in modern digital and forward- roads, energy and airport credit rating of A1 and a long-term thinking financial solutions. This refurbishment, to name just a few. credit rating of A from the Global includes things such as mobile Within energy, renewable energy Credit Rating Company of South banking applications, 24-hour is the real highlight as Zimbabwe Africa. It employs over 900 staff, customer service centres, internet looks to solar energy to help end operates a network of 66 branches banking and even ensuring they are energy shortages and cut power bill across the country and had revenue engaging with customers through costs. The demand for solar panels of USD 152.95 million in 2017. social media. continues to rise, and so therefore Because of its role in the banking Encouraging digital transactions do the opportunities within this industry and as a large employer, has the added benefit of appealing energy sector. CBZ Bank is in a unique position to to Zimbabwe’s youth, who make The government has indicated understand the current status of up over 60% of Zimbabwe’s further that it will reform a number Zimbabwe’s banking industry and population, as well as mitigating of State Owned Enterprises, has continued to rise in Zimbabwe, overall economic future. Dr Blessing against prevailing cash shortages. including some privatisation. These which has led to a 40% loan to Mudavanhu, the Group CEO of CBZ Investment into technology will will be excellent opportunities, deposit ratio and had a negative Holdings Limited, knows that these increase competitiveness among and will likely include such effect on the amount of money insights are important for the the members of the financial sector, sectors as telecommunications, banks are able to lend to their economy of Zimbabwe overall. She both locally and abroad. aviation, petroleum, transport, customers. This has meant that believes the private banking sector is manufacturing and banking. in line for growth and development banks are not able to access this Investment Opportunities within Zimbabwe due to President traditional source of income. The future of investments in The Future of Banking N T IMES TO Mnangagwa’s new vision for the Instead, the major source of income Zimbabwe is widely believed to lie The future of the banking industry country. She says, for banks has been transactional. with small to medium enterprises in Zimbabwe is looking brighter, and

ASHING But with other entities, including (SMEs). The economic decline of the there are so many options for the mobile network operators, stepping last few decades have led to many savvy investor within its borders. In in to offer transactional banking corporations shrinking in size, and fact, Dr Mudavanhu says, Our government’s services, there are now even more in effect, becoming SMEs. But today, difficulties for banks that have there are many areas representing stance towards private invested in a more fulsome banking growth within the SME sector. enterprise has been very infrastructure. However, banks will Especially noteworthy is of course We will definitely be pleasing. I am convinced that continue to offer other services agricultural, which has always been seeing real growth and with increased transparency and securities that mobile network an integral part of the Zimbabwean development. As with any and commitment, many operators and other non-banking economy with no signs of this change, there is a period

TO T HE W t ising supplemen TO entities cannot duplicate. investors will be interested changing. Take one look at the of adjustment, which is Banks in Zimbabwe also face the tobacco output of Zimbabwe and in exploiting the vast challenge of historically high banking you’ll see it is still an excellent what we are seeing right opportunities that Zimbabwe fees and charges. Yet, evidence investment opportunity. Mining now. Nonetheless, it is has to offer.’ shows that today, bank charges and is another great investment important to make these fees are reducing to much more opportunity. Recent governmental difficult decisions in order A dver a S pecial | competitive rates. This is due in part regulation changes have left for the country to advance to financial inclusion, and in part the sector ripe for growth and Banking Challenges to regulations introduced by the expansion, and gold, chrome and experience economic Of course, Dr Blessing is the first central bank. Banks are also utilising and lithium should certainly be success. I believe that it will one to see the challenges that CBZ out of the box thinking to lower considered. This is also an interesting not even take five years; and other members of the banking fees, including introducing products time for cotton manufacturing, as three years should suffice to cotton lint production is expected industry face. One of these is that are low-cost, such as KYC-light see real palpable progress.’ lending. Over the years credit risk (or Know Your Customer) products to have increased 62% in the that cater to customers that have 2017/2018 financial year due to the

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