Sapes Trust and Ned Conference Report

REPORT OF THE INTERNATIONAL CONFERENCE ON:

“ZIMBABWE GOING FORWARD: CONSOLIDATING THE DEMOCRATIZATION PROCESS AND REINFORCING RE-ENGAGEMENT WITH THE GLOBAL COMMUNITY”

SOUTHERN AFRICA POLITICAL ECONOMY SERIES (SAPES) TRUST

AND NATIONAL ENDOWMENT FOR DEMOCRACY (NED)

5TH AND 6TH MAY 2014 – RAINBOW TOWERS

TABLE OF CONTENTS Acronyms 3 Background 4 Conference Objectives 5 Opening Remarks 5 Official Opening 7

DAY ONE: Enabling Environment: Consolidating Constitutional Reforms and Strengthening National Institutions

Session I: Consolidating Constitutional Reforms 11

Session II: Strengthening National Institutions 22

Session III: The Role of Civil Society: From Advocacy to Engagement 25

Session IV: Examining the Role of the Media in a Democracy 28

Session V: Reinforcing Zimbabwe’s Democratization Process: A Dialogue to Reinforce Engagement 30

DAY TWO: An Agenda for Economic Recovery

Session VI: Restoring the Social Contract 34

Session VII: An Agenda for Economic Recovery 37

Session VIII: Reviving Zimbabwe’s Productive Sectors 41

Session IX: Mobilizing Foreign Direct Investment: Transcending the Sanctions Regime 44

Closing Remarks 46

Policy Recommendations 47

Conclusion and Way Forward 50

ACRONYMS BOTs Build-Operate-Transfers CCZ Crisis Coalition of Zimbabwe CIMA Centre for International Media Assistance CIPE Centre for International Private Enterprise CSOs Civil Society Organisations EU European Union FDI Foreign Direct Investment GDP Gross Domestic Product GPA Global Political Agreement GNU Government of National Unity IMF International Monetary Fund ICT Information and communication technology JICA Japan International Cooperation Agency MDC Movement for Democratic Change MDC - M Movement for Democratic Change (Mutambara) MDC - N Movement for Democratic Change (Ncube) MDC - T Movement for Democratic Change (Tsvangirai) MP Member of Parliament NED National Endowment for Democracy SADC Southern African Development Community SAPES Southern Africa Political Economy Series SEZ Special Economic Zones UK United Kingdom US United States UZ University of Zimbabwe ZANU (PF) Zimbabwe African National Union – Patriotic Front ZAPU Zimbabwe African People’s Union ZCTU Zimbabwe Congress of Trade Unions ZIMASSET Zimbabwe Agenda for Sustainable Socio Economic Transformation

BACKGROUND SAPES Trust and NED work in Agreement, Zanu PF, MDC-T and MDC, partnership to promote democratisation and representatives of civic groups to and strengthen democratic institutions. attend both events, aimed at reinforcing Sapes Trust works to facilitate multi- Zimbabwe’s engagement with the stakeholder dialogue around global community. governance, democracy and national development as well as promoting civic The objectives of the May 2014 participation in international dialogue. international conference was to bring The 2014 International conference was together all stakeholders to the national aimed to build on two previous development of Zimbabwe, to conferences in July 2012 “Re-thinking deliberate and identify effective Zimbabwe” and July 2013 “Beyond approaches to reinforce the country’s Elections in Zimbabwe”, hosted by NED re-engagement with the global in Washington DC. Sapes Trust led a community and support the delegation of all the three political democratisation process. parties to the Global Political

CONFERENCE OBJECTIVES: The objectives of the conference were to; a) Encourage debate around the socio-economic and political developmental trajectory predicated on constitutional reforms, a sound macro-economic framework, strengthened national institutions, civic society engagement and re- engagement with the global community; b) Bring together government, the private sector, civic society and the international community to exchange ideas on re-engagement and investment in Zimbabwe; c) Identify lessons, constraints, design strategies and build consensus among government, the private sector, civic society and the international community in implementing policies that promote good governance; d) Build strong and joint initiatives among government, the private sector, civil society and the global community; e) Provide policy recommendations in the implementation of constitutional reforms, promoting economic recovery, strengthening national institutions and engaging with the global community; and, f) Help to strengthen initiatives towards Zimbabwe’s re-engagement with the global community.

OPENING REMARKS

Ibbo Mandaza: SAPES Trust and Dave increasingly apparent, was a new model Peterson of NED set the tone by of African political systems which welcoming participants and re-affirming seemed to be bucking the trend of the objectives of the conference. The democratization on the continent. conference is an opportunity and a These systems happened to be not critical space for reflection, experience simply authoritarian, but in many sharing and charting a unified way respects, verging on totalitarian, forward in re-enforcing re-engagement according to the classic model of state- with global community and party-social conflation, ideological drive, consolidating democracy. The centrality and mass participation. Yet these of multi-stakeholder collaboration in countries were close partners of the Zimbabwe’s current economic, social Western democracies, particularly the and political climate cannot be US. overemphasized and SAPES is committed to facilitating the dialogue in Zimbabwe, by contrast, had been an open, forthright and constructive isolated. The elements of this new manner. The oil that drives nation authoritarianism, however, did not building lies in joining forces in the spirit seem to be present here. Instead, for all of truth, collaboration and mutual its weaknesses and dysfunction, accountability. We appreciate all the Zimbabwe seemed to have a multi-party support and contribution given to SAPES system, even during the government of by all and look forward to open and national unity. The elections, whatever forthright discussions as we chart the their flaws, including unfortunate way forward for Zimbabwe. violence, seemed to be some reflection of the popular will, especially when Dave Peterson: This is the third in a tracking them with credible polling data. series of Zimbabwe conferences we Crucially, civil society seemed to be have held in partnership with SAPES robust and operated with reasonable Trust. It really began with a freedom. Freedom of the press, despite conversation Ibbo Mandaza and I had some limitations, nevertheless some four years ago. I have known and appeared to be substantial. There was a respected Ibbo Mandaza for more than serious, independent trade union 20 years, but after having been out of movement and business community. touch for a while, I sought to tap his Few remnants remained of an all- wisdom regarding the nature of the encompassing ideology, and the kind of Zimbabwean state. I had been doing compulsory mass participation some research on some other African identified with the neo-totalitarian political systems and was coming up systems was not apparent either. I with some intriguing findings and could only conclude that there was a wanted to explore with him how they double standard at work. might apply to Zimbabwe. What I had found, and what is becoming

The first two conferences in this series, and culture. Freedom House has given in their own way, succeeded in pointing Zimbabwe a modest arrow ticking up out this contradiction. We brought this year, but I think there is no reason representatives of all the parties why the country should not be rated in together in Washington, along with the free category in the near future. business and labour representatives, There’s a lot of work to do, and I expect political analysts, as well as US this conference will lay out some of the government spokespersons. I would like benchmarks and strategies for getting to think these two events helped de- there. mystify Zimbabwe for some policy- makers in Washington, as well as I hope that Ambassador Wharton and contributing to the debate in Zimbabwe, his staff will be able to convey to by showing that real democratic Washington that this conference has exchange could happen among intensified the engagement between Zimbabweans and that there was the US and Zimbabwe, and has made a considerable consensus around which contribution to democracy here. In progress could be encouraged. All sides some other countries to which I have were able to express their positions travelled recently, citizens are afraid to freely, and I don’t think any of us was debate openly or express any criticism. blind to the problems and differences Other countries are consumed with and challenges that still exist. horrific civil war and even genocide. Here in Zimbabwe we are able to come This conference that is now being held together and discuss controversial in Harare is intended to take this issues openly and peacefully, in the conversation one step further. I spirit of fellow Zimbabweans and consider now to be an opportunity to international partners. That’s the way it restore friendly relations between the should be. I must make it clear that my US and Zimbabwe, both politically and remarks today are my own personal economically. I believe that with views and do not reflect the policy of implementation of the new constitution the National Endowment for and greater political will, Zimbabweans Democracy, and certainly not that of the can make sustained progress in US government. consolidating democratic institutions

OFFICIAL OPENING OF THE CONFERENCE

KEYNOTE SPEECH BY THE MINISTER OF FINANCE AND ECONOMIC DEVELOPMENT, HONOURABLE P.A. CHINAMASA (MP)

Members of the Diplomatic Corps; conference is two-fold. It acknowledges Government Officials; Sapes Board; NED the implementation of the new Officials and visitors to Zimbabwe; constitution as part and parcel of Invited Guests; Ladies and Gentlemen; Zimbabwe’s democratization process; and encouraging closer interaction I am informed that this conference between Government, the private comes against the backdrop of two sector and civil society in reinforcing similar conferences in July 2012 with the Zimbabwe’s engagement with the global theme “Re-thinking Zimbabwe” and in community. July 2013 with the theme “Beyond Elections in Zimbabwe.” At both these Therefore, these initiatives are critical in conferences, Sapes Trust led a complementing the Government’s delegation made up of all the three efforts, particularly the work being done political parties to the Global Political by the Ministry of Finance and Economic Agreement that is, Zanu PF, MDC-T and Development towards engagement with MDC, representatives of civic groups to the IMF and other multilateral attend these conferences in organisations, namely, the Staff Washington. Monitored Programme (SMP), discussions on Zimbabwe’s debt arrears This conference is therefore an clearance relief and appropriate fiscal extension of both these two previous and monetary policies – all of which are conferences and the Sapes Trust Policy geared towards macro-economic Dialogue Forum, an important forum stability, renewed foreign direct that has established itself as a veritable investment, economic growth and think tank and non-partisan platform progressive social development. through which to discuss pertinent issues of the national, regional and For the avoidance of doubt, let it be international levels. I have had the known and understood that the policies pleasure of addressing the Sapes Trust that we are pursuing and implementing Policy Dialogue Forum on a number of under the IMF Staff Monitored occasions. Programme are policies crafted by us and not the IMF and are for the benefit In line with the theme of the of the economy of Zimbabwe and if conference, “Zimbabwe Going Forward - successfully implemented will lead to Consolidating the Democratization the economic recovery of our country. It Process and Reinforcing Re-engagement is and remains in the country’s strategic with the Global Community,” the interest to remain engaged with the importance of this initiative cannot be Bretton Woods Institutions and I am overemphasized. The theme of this pleased that of late the engagement has

7 been conducted with frankness and in a While other economies in Africa and constructive and cordial manner. across the globe have experienced record, remarkable and rapid economic Accordingly, in October 2013, the growth due to their access to Government of Zimbabwe launched international capital, investment and Zim-Asset, an economic blueprint, markets, Zimbabwe has remained whose vision is “Towards an largely closed due to sanctions and such Empowered Society and a Growing related consequences that have Economy.” The implementation of Zim- impacted negatively and exacerbated Asset is guided by the need “to provide the country’s socio-economic malaise. an enabling environment for sustainable economic empowerment In this regard, the Zimbabwe and social transformation to the people government is putting in place a flexible of Zimbabwe.” policy framework that attracts investment while at the same time Zim-Asset is anchored on ensuring that the four priority clusters: …it is meant to empower and people of Zimbabwe food security and integrate the majority of our people also benefit, hence the nutrition; social services indigenisation and and poverty eradication; into the mainstream economy. The empowerment policies. infrastructure and policy aims at achieving inclusive What do these terms utilities; and value- growth, sustainable development and “indigenization and addition and economic beneficiation. The central social equity. There is not empowerment” mean? objective of this blueprint expropriation or nationalisation of The President of the is to “achieve sustainable shares held by non-indigenous Republic of Zimbabwe, development and social persons in companies… Cde Robert Mugabe, equity anchored in was explicit in both indigenization outlining the policy on empowerment and employment indigenization and dispelling whatever creation, based on natural and human confusion has plagued this important resources.” This is one of the many pillar of Zimbabwe’s economic policy, initiatives that the Government has firstly on the occasion of the expressed its political will towards fixing commemoration of or 34th the economy. Independence and also on the occasion of the opening of the 55th edition of the The Government of Zimbabwe is very Zimbabwe International Trade Fair on alive to the fact that systematic 26 April 2014: engagement with all nations will be key to unlocking funding and winding down “As originally set out, it is meant to the tight liquidity currently being empower and integrate the majority of experienced in the country. our people into the mainstream economy. The policy aims at achieving inclusive growth, sustainable

8 development and social equity. There is Economic Consultative Forum held at not expropriation or nationalisation of the ZITF: shares held by non-indigenous persons in companies, as some of our detractors “We are not taking 51 percent of would want the world to believe. Rather, anyone’s money. There’s no one-size- any equity that an indigenous person fits-all. Zimbabwe will decide the takes up will be disposed of at fair value. threshold of how much local blacks With this clarification, let me take this should own in foreign companies on a opportunity to invite potential investors sector-by-sector basis and over what to come and do business in Zimbabwe in timeline. Further the Investor has the which there is huge potential for joint power to choose the local partner and to venture partnerships between investors, determine the price. The government is manufacturers, industrialists and the quite comfortable with the injection of public sector. We want investment from foreign capital in the banking industry abroad.” because it will increase the volume of credit to the productive sector. On my part, and emphasizing the Zimbabwe’s Indigenization Minister, foregoing, I stated the following on 23 Francis Nhema, will put proposals to the April 2014 and also at the National country’s cabinet for this sector by sector approach.”

With respect to investment, I wish to make the following five points; i. Government is doing everything to create a good business climate. This is why we have clarified the policy on indigenization and declared our invitation to foreign direct investment. ii. In this regard, government will seek to ensure that the Zimbabwe Investment Authority will have full authority to determine investment conditions as a One- Stop-Shop, and thereby approve foreign direct investment. iii. We are inviting investment in power generation, road and rail network, water and irrigation infrastructure and information technologies. The government will invite players through Build-Operate-Transfer (BOTs). iv. Government is committed to fighting corruption and we are already demonstrating that we are serious about it. v. Government is committed to assist in reforming and building the public service capacity, not least improvement in service delivery in all sectors, effective and quick decision-making, and the eradication of self-defeating red tape and corruption.

However, Government’s efforts and Government has always maintained, is commitments towards re-engagement an important precondition to need to be reciprocated by the same Zimbabwe’s re-engagement with the efforts from the global community, by global community. Furthermore, the honestly re-engaging with Zimbabwe. removal of sanctions will also constitute The removal of sanctions, as the

9 a critical step in Zimbabwe’s efforts we forge must be without towards economic growth and stability. preconditions. FDI will hopefully bring I have perused with interest the into our country capital, technology and programme of this conference and the much needed managerial skills. On commend Sapes Trust and their our part, we offer a diversified resource Sponsors for involving a cross-section of base, a good climate, a readily available the global community; the Fishmongers educated and enlightened human Group of Embassies represented in capital and the warm hearts of our Zimbabwe, particularly the USA and people. Let the message go out loud and Britain, and also the BRICS countries and clear that Zimbabwe is ready to re- our own African constituency such as integrate into the global economy. the Ambassadors from the African Zimbabwe is looking for new Union, COMESA and SADC. friendships, new opportunities while consolidating old ones. We are looking We await your response for mutually beneficial and advice as regards our economic relationships stated objectives on the Government, civil society, the not confrontation. We economic policy front; and labour movement, the global are too small a country a resolute stand on the community and the business sector to pursue a policy of issue of sanctions which, to are partners who should have a confrontation. be fair, must be declared Sanctions are one of inconsistent with, and common understanding of the many strategies in a inherent constraint on challenges we face as a nation, a policy of confrontation. Zimbabwe’s economic common understanding of how to Sanctions dignify what recovery and re-entry into is termed in military the global economy. address these challenges and, most terms low intensity importantly, a common vision for warfare. Government, civil society, Zimbabwe’s future. the labour movement, the Again, I compliment the global community and the Sapes Trust and their business sector are partners who should Sponsors for this grand initiative, a have a common understanding of the contribution whose initial results in such challenges we face as a nation, a process is surely this conference, one common understanding of how to which coincides with Zimbabwe’s address these challenges and, most economic renaissance, an indigenous importantly, a common vision for journey, the long road from political Zimbabwe’s future. In short Zimbabwe emancipation to economic liberation. is open for Foreign Direct Investment (FDI) from all Nations of the World, With these words, I hereby declare this whether these be in the North, South, conference open, and wish you fruitful East or West. The business Partnerships deliberations.

DAY ONE - MONDAY 5 MAY 2014

ENABLING ENVIRONMENT: hallmarks of democratic institutions but CONSOLIDATING CONSTITUTIONAL on its own does not guarantee REFORMS AND STRENGTHENING democracy for the country. Likening it NATIONAL INSTITUTIONS to a marital situation where the presence of a marriage certificate SESSION I: CONSOLIDATING doesn’t guarantee sustainability and CONSTITUTIONAL REFORMS marital bliss, the minister emphasized on the need for mutual accountability, Moderator: Dr Alex Magaisa Former commitment and fidelity between both Advisor COPAC parties. The establishment of the new constitution in March 2013 was a The Zimbabwean history has been that defining moment in the political history of struggle for democracy. The of Zimbabwe. There is Lancaster constitution need to expedite the …it is important that we mean was imposed on the implementation of the what we say as a people and that people of Zimbabwe, constitution and to however our promote constitutionalism. we engage in a forthright manner. constitution is evidence Having a constitution in Success and failure will depend on of the collaboration place is a fundamental step the will power of all stakeholders. among all stakeholders towards democratisation, to the national but not an end in itself. ‘A People in positions of authority development of the bird that flies from should be prepared to give quality country. Democracy the ground onto leadership as has been seen during doesn’t have finite an anthill, does not the electioneering process… boundaries. Through know that it is still on the the peaceful elections ground.’ in 2013, the democratic path was consolidated .Our struggles as Fortune Chasi – Deputy Minister Zimbabweans recognise the need to Justice, Legal and Parliamentary Affairs entrench democracy and rule of law and The SAPES international conference is we commit ourselves to building a an important platform in the history of united nation underpinned by values of Zimbabwe, providing an opportunity for honesty, transparency, and exchange on the way forward of our accountability. country and an important step rebuilding trust. We have travelled a It is important that we mean what we long journey and have arrived where we say as a people and that we engage in a are as a result of collaborative forthright manner. Success and failure engagement. A surge of mistrust has will depend on the will power of all been building up since the constitution stakeholders. People in positions of making process, and this may be the apt authority should be prepared to give time to tackle it. The constitution has all quality leadership as has been seen

11 during the electioneering process. constitution and typically enshrine it in Minister Chinamasa is a re-engagement the bill of rights and protect people. The incarnate and has been going around in need to underpin values, fairness, a re-engagement process. But the re- justice, and equality cannot be engagement has to be home grown, overestimated. On its own, the locally owned and driven. This will not constitution becomes just a paper, be without challenges, as are still hence the need to consolidate the grappling with of, for example, constitutional reforms. There are five corruption, suspicions among main primary stakeholders in this process, political parties, state of the media law who include: civil society actors, etc.they all need to be tackled if we are executive, legislature and judiciary. to be successful in the democratisation agenda. We also need to establish The executives are the policy drivers electoral reform frameworks which are and hence need to adapt and promote gateways to democracy, working in the culture of constitutionalism. For close collaboration with NGOs and civil example on press freedom day when society. The government has an open protesters where barred from door approach to all stakeholders in expressing their opinions, there should order to establish common ground to have been a consistent and robust ensure that we forge ahead the nation response, that is enshrined in the of Zimbabwe. constitution provisions. On the other hand, the legislature has not done much DZIMBABWE CHIMBGA – ZIMBABWE since the promulgation of the LAWYERS OF HUMAN RIGHTS constitution apart from a bill. The 22nd of May 2013 was one of the most defining moments in Zimbabwe The judiciary plays a significant role in when we signed the new constitution the process of constitutionalism. The into law. It was a jubilant moment for inclusion of socio economic rights has the nation where for the first time in the provided a judiciary leg to stand on in history of Zimbabwe, we had our own any violations as has been evidenced by home-grown constitution. After signing the past week’s events .The judiciary it president Mugabe celebrated the took a robust approach in challenging birth of our national identity, a violations of such. A high court judge constitution that mirrored the needs was reported as having denounced the and expectations of all Zimbabweans turning off of water on the grounds of and one that enables us to take pride in its unconstitutionality. the ability to define our destinies. The constitution equalises us all, no one can The civil society have a variety of roles claim greater superiority above others. and need to work as technical partners Despite diverse backgrounds and with government and ensure that there diverge opinions, we have all come is mutual accountability with together to establish our commonality government, underpinned by mutual through the Zimbabwe born trust. Trust is the glue that holds it all constitution. We now need to live the together and makes it sustainable. The

12 constitution is a piece of paper, but the to been made with the consent of the way forward is its systematic and Prime Minister first obtained. This transparent implementation. provision was repeatedly ignored.

DEREK MATYSZAK – RESEARCH AND Secondly, the Inclusive Government ADVOCACY UNIT Constitution fettered President Constitutionality in Zimbabwe needs to Mugabe's power to appoint Ministers. be viewed against an important aspect The number of Ministers he could of President Mugabe’s style of appoint was set at 31. The governance. Successive administrations establishment of the Ministries under President Mugabe have tended to appeared in Article 20.1.6 of Schedule 8 regard executive power as plenary, in of the Constitution of the Inclusive other words, that government officials Government, which was as follows: may do whatever they deem necessary to govern, unless constrained by There shall be thirty-one (31) legislation. For this reason, in addition Ministers, with fifteen (15) to the Constitution, general statutes are nominated by ZANU PF, thirteen (13) frequently regarded by President by MDC-T and three (3) by MDC-M Mugabe and his administration as restricting executive power, rather than, th as is usual in a constitutional On the 13 February, 2009, President Mugabe purported to swear into office democracy, enabling and authorising its th use. President Mugabe has little 35 Ministers and, on the 19 February, tolerance for any constraints placed 2009, a further six Ministers, bringing upon his executive power, and few have the total to 41, ten more than were been. However, under the Constitution, permitted by the Constitution, and establishing the Inclusive Government agreed in the GPA. As such, the (2009 - 2013) and the new Constitution appointments of these ten additional (which became law on 22nd May, 2013) Ministers were unconstitutional, Mugabe’s powers were marginally unlawful, and void – a literal case of restricted. President Mugabe’s response executive excess. Which Ministers were to these constraints has been to simply unconstitutionally in office depended ignore them. upon the order of the swearing-in: once the quota of 15 ZANU PF nominees was The examples which follow are but a reached, the purported assumption of few of the many possible: office by any ZANU PF nominee a)Prime Minister’s consent ignored: In thereafter was unconstitutional. The terms of the Constitution establishing same considerations applied once the the inclusive government, the quota of 13 MDC-T and 3 MDC-M President’s extensive powers remained Ministers had been reached. Ministers intact except for two important are required to both take and subscribe limitations. One was that all key to oaths of loyalty and of office. While appointments in terms of the then they all took the verbal oaths Constitution, and under any statute, had simultaneously on the date of their

13 swearing in, the process was not not) if the intention of the legislature completed until they had subscribed in was to create stability, as Chiweshe JP writing to these oaths. The ten that did simply declared was so, it had so after the quotas had been reached determined that this was to be were not constitutionally appointed as accomplished with and by an Ministers. Of the ten, three were MDC-T establishment of 31 Ministers, and not nominees, one an MDC-M nominee and 41. six ZANU PF nominees. Justice Chiweshe’s ruling came only It was not open to ZANU PF and the weeks after a judgment given by the MDC formations to argue that they had Supreme Court in an analogous matter an agreement amongst themselves to which did set aside the appointment of provide for the increased number of an official, the Speaker of Parliament. Ministers. As part of the law of The Supreme Court had ruled that Zimbabwe, the number of Ministers was election of the Speaker of Parliament set by Schedule 8 to the Constitution was invalid as the Standing Orders of and not by any inter-party agreement. Parliament, as read with the Any alteration to the Schedule required Constitution, required that Parliament a constitutional amendment. “shall conduct the election of the Speaker by a secret ballot.” The Chief The issue was brought before the High Justice stated that “the golden rule of Court by a concerned governance NGO interpretation is that one has to give the and an individual taxpayer. In a legally words of a statute their primary questionable ruling the Judge President, meaning”. Accordingly, the word “shall” George Chiweshe, held that the had to be read as meaning precisely “anomalous” appointments did not that. The use of the word “shall”, his “outrageously exceed” the number honour ruled, rendered the use of a provided for by the Constitution, and, secret ballot peremptory. The matter that if they were set aside: would be different, he stated, if the word “may” had been used. The failure “… it would destabilize the to comply with the peremptory government of national unity and requirement of secrecy rendered the cause unnecessary confusion within election of the Speaker and thus his the body politic and prejudice the appointment invalid. The “explicit” public interest at large. That cannot language of the statute allowed no be said to be consistent with the variation, the court ruled. Justice intention of the legislature in Chiweshe, contrary to this ruling of enacting Schedule 8 to the Supreme Court, felt the peremptory and Constitution.” explicit language requiring that there shall be 31 Ministers, no more and no The obvious flaw in this “reasoning”, less, could in fact be varied. apparent even to lay persons, is that (even if this kind of approach were Justice Chiweshe’s judgement was jurisprudentially permissible, which it is appealed and argued on 10th July 2012.

Neither Counsel for the State nor the the “explicit” language of the Supreme Court seemed to find any Constitution, which seemed to “allow merit in the Justice Chiweshe’s ruling in no variation” to the quota of 31 the High Court. His “reasoning” was not Ministers? Unable to immediately see referred to by either. However, during any basis upon which the case could be the hearing the Chief Justice, Godfrey dismissed on procedural grounds, the Chidyausiku, displayed considerable Court has simply not ruled on the discomfort at the prospect of having to matter. Two years have gone by, the declare that certain Ministers had been Inclusive Government has ended, and unconstitutionally appointed by the unlawfully appointed Ministers have Mugabe. He suggested to Counsel for completed their full tenure without any the Appellants that perhaps it would judgment issued. This instance of suffice merely to order the reduction of unconstitutional executive excess has the number of Ministers to 31, leaving it thus effectively been allowed to pass by to Mugabe to select who these should the Courts. The matter is not, however, be. This approach would overlook the now merely academic. Regulations were initial unlawfulness of the introduced by some of the invalidly appointments. The Chief Justice then appointed Ministers, rendering the surprised some of those observing validity of these regulations themselves proceedings by descending in to the suspect. Most notable amongst these arena and suggesting to the Counsel for are the Indigenisation and Economic the State that he might want to consider Empowerment (General) Regulations 21 whether there was some procedural of 2010, a key component of defect in the appeal, thus rescuing him government policy, made by Saviour from having to rule on the substance of Kasukuwere. the matter. The Chief Justice, for example, suggested to State Counsel Fast forward to the introduction of a that perhaps ZANU PF should have been new Constitution for Zimbabwe on 22nd cited as a party in the application. The May 2013, and we see little change in hapless Counsel could not, however, the modus operandi of the Mugabe find any argument to lend support to administration in regard to this and other similar suggestions from constitutionalism. Due to political the bench. considerations, the new Constitution became law very shortly after it had Neither the erstwhile enthusiasm for been agreed. Inadequate time was left compliance with the explicit language of to prepare for the establishment of the Constitution and the nullity which various commissions and institutions accompanies any failure in this regard, required by the new charter, or for the nor the assurance displayed in setting amendment of numerous pieces of aside the appointment of the Speaker of legislation to bring them into line with Parliament, was evident when called the constitution. The result was a upon to set aside the appointment of plethora of constitutional violations the the extra Ministers. What did the moment the new constitution became Chidyausiku Court thus do in the face of effective.

cases were brought, the Court has yet But, in addition to these passive to give a judgment on the point. violations of the supreme law of the law, there have been active violations of Once the new Constitution became fully the Constitution by the President, effective, the use of the Presidential seemingly simply because he and his Powers (Temporary Measures) Act in Administration do not like the certain any manner at all became provisions thrust upon them by the unconstitutional. Section 134 proscribes negotiating process that led to drafting the ability of Parliament to delegate its of the document. “primary law-making function” allowing only the delegation of the power to Two examples will suffice to illustrate make statutory instruments by way of the point: firstly, the use of the an Act of Parliament which “must Presidential Powers (Temporary specify the limits of the power, the Measures) Act. This Act granted the nature and scope of the statutory President sweeping powers to make law instrument that may be made and the by way of presidential regulation. Laws principles and standards applicable to made in this way overrode the the statutory instrument.” Such provisions of any Act of Parliament to legislation is referred to in the the contrary. However, a part of the Constitution as “subsidiary legislation”. new Constitution pertaining to elections The Presidential Powers (Temporary which became effective on the 22nd Measures) Act clearly conferred primary May, 2013 provides that elections must law making powers upon the President, be conducted under an “Act of allowing the President to make Parliament”, not Presidential Regulations which “may provide for any Regulations. An “Act of Parliament” is matter or thing for which Parliament specifically defined in the Constitution can make provision in an Act”. as a Bill which has been presented to and passed by Parliament, and assented Given that any laws made under this to and signed by the President. legislation prevailed over any Act of Regulations made under the Parliament to the contrary, Presidential Powers (Temporary) notwithstanding the fact that they could Measures Act do not fall within this be revoked by Parliament, or lapsed definition. Notwithstanding this clear after six months if not approved by provision, the elections were conducted Parliament, they could hardly be under provisions introduced by Mugabe described as subsidiary legislation - the in the form of the Presidential Powers only category of law making power that (Temporary Measures) (Amendment of the Constitution now allows to be Electoral Act) Regulations. This use of delegated. Furthermore, since the the Presidential Powers (Temporary Presidential Powers (Temporary Measures) Act was challenged in the Measures) Act conferred a general and Constitutional Court in four election primary law making power, it did not related cases. Nearly a year after the specify the limit of the power, nature and scope of each instrument to be

16 made under the Act. It is likely that this process ZANU PF made it clear that it section was introduced into the new wished to retain the powerful control of Constitution precisely with the intention central government over local of rendering the Presidential Powers government and rural administration. (Temporary Measures) Act Other than in the metropolitan unconstitutional. Although the provinces, a key component of this Presidential Powers (Temporary control had been exercised previously Measures) Act is only supposed to be by Provincial Governors appointed in used in cases of urgency when terms of the Provincial Councils and exigencies prevent the passage of Administration Act for two year terms of necessary legislation through office. The importance of this means of Parliament, this requirement has often control to President Mugabe is reflected been ignored, and the Act deployed on in the fact that, when Provincial numerous occasions. Governors’ terms of office expired during the course of the Inclusive The Mugabe Administration found the Government, he proceeded to appoint Act a means to introduce legislation party stalwarts into these posts in without the inconvenience of blatant violation of the then provisions approaching Parliament and became of the Constitution and in violation of a heavily reliant upon it. Accordingly, reported understanding that these ten section 134 of the Constitution has been posts would be apportioned to the treated by the new government as parties in an agreed ratio. These having no impact upon the Presidential Provincial Governors exercised a power Powers (Temporary Measures) Act. in the provinces far beyond that Mugabe has continued to legislate using contemplated by Provincial Councils and its provisions. In January 2014, the Administration Act, including chairing all President purported to bring three sets Provincial Lands Committees which play of Regulations into law – The an often determining role in the Presidential Powers (Temporary allocation of land within the Province. Measures) (Amendment of Money Laundering and Proceeds of Crime Act) One such Provincial Governor was Regulations; The Presidential Powers Martin Dinha. In late 2012, Dinha in his (Temporary Measures) (Amendment of capacity as Provincial Governor for Criminal Law (Codification and Reform Mashonaland Central and Chairman of Act) Regulations; and Presidential the Lands Committee for the province Powers (Temporary Measures) was able to help the First lady, Grace (Trafficking in Persons Act) Regulations. Mugabe acquire more land for the This is all primary law, not subsidiary advancement of her philanthropic legislation. projects in Mazowe, which apparently have been much admired by visiting The second aspect of the new dignitaries. Constitution of concern, for present purposes, is that pertaining to The new Constitution abolished the devolution. During the negotiation posts of Provincial Governors. Instead of

17 local government in the provinces in the fact that many of the people conducted through appointees of the appointed as Ministers of State for President, Provincial Councils ought to Provincial Affairs by Mugabe were in be established. Rather than being fact the Provincial Governors of their headed by appointees of central respective provinces before the government, the Councils are to be abolition of these posts, thus effectively headed by Provincial Chairpersons, continuing in their offices with their elected by the Councils themselves from work under different titles, with no lists of two people submitted by the devolution of governance having taken National Assembly members with the place. One such person appointed as majority in the province. Minister of State for Provincial Affairs for Mashonaland Central by President These provisions in the new Mugabe is Martin Dinha. Martin Dinha Constitution have been ignored by was thus conveniently on hand to be Mugabe and his Administration. The helpful (as he had been when Provincial new Constitution requires that “an Act Governor) once more when Mrs of Parliament must make provision … for Mugabe once more required more land the establishment and functions of in the Province. Provincial Councils” No such enabling Act has been passed or even seems to President Mugabe has declared zero form part of the immediate agenda for tolerance for corruption, regardless of the Eighth Parliament. There is no the quarter from which it emanates. apparent allocation for the operations This and other considerations mean that of the Provincial Councils in the budget there is no absolutely no suggestion for 2014. here of any impropriety in this transaction. Mr Dinha has clearly stated Furthermore, in direct conflict with the Mrs Mugabe’s “request for more land principles of devolution set out in the was justified considering the great work Constitution, Mugabe has appointed ten she was carrying out.” What is Ministers of State for Provincial Affairs. suggested, however, is that the totality These Ministers are essentially of the circumstances is unlikely to result Provincial Governors in all but name, in favorable comment in the reports of and have seamlessly continued with the risk assessors detailing the investment same activities and functions carried out climate in Zimbabwe. by Provincial Governors. But they do so without any legislation which confers The few examples given here are merely such power, and have simply arrogated a small corner of a larger picture to themselves the authority they hold is showing a disregard for the principles of necessary to exercise whatever power constitutionality and the rule of law by they deem appropriate to their position. Zimbabwe’s policy makers. Yet this aspect of Zimbabwe’s policy is That the clear intention of the extremely important when assessing Constitution in regard to devolution has Zimbabwe’s investment climate. When been circumvented is starkly illustrated to this governance style is added the

18 fact that successive Mugabe 1992-1997 Describes a ‘Big man’ Administrations have a long track record government terms: ‘His face is on making policy decisions oblivious, and money. His photograph hangs in every seemingly unconcerned about their office in his realm. His ministers wear economic impact, it is likely that in gold pins with tiny photographs of him order to attract investment to on the labels of their pinstriped tailored Zimbabwe more will be needed than suits. He names streets, football nebulous statements that “Zimbabwe is stadiums, hospitals and universities open for business”. What is required is a after himself. He carries a silver inlaid somewhat cathartic event which signals, ivory rungu or an ornately carved to those wishing to engage with walking stick or a flywhisk or chiefly Zimbabwe, a clean break with the past. I stool. He insists on being called doctor leave it to the imagination of others the or being the big elephant or the number nature of such an event. one peasant or nice old man or the national miracle or the most popular ERIC MATINENGA – ADVOCATE AND leader in the world. His every LAW AND FORMER MINISTER OF pronouncement is reported on the first CONSTITUTIONAL AFFAIRS page he shuffles ministers without Zimbabwe became independent in 1980 warning, paralysing policy decisions as and adopted a constitution which had he undercuts pretenders to his throne. been negotiated at Lancaster house. He scapegoats minorities to shore up Like many countries in the region, popular support. He bans all political Zimbabwe, soon amended the parties except the one he controls. He negotiated independence constitution. rigs elections. He emasculates the Unfortunately, the majority of the courts and he cows the press. He stifles amendments were not for the better academia. He goes to church. The Big but for the worse. There was a general Man’s off-the –cut remarks have the shift to monolithic executive power of law. He demands thunderous governments chaired by an all-powerful applause from the legislature when president. The emphasis on governance ordering far-reaching changes in the shifted from people rights to nation or constitution. He blesses his home region sovereign rights. People were told that with highways, schools, hospitals, western concepts of democracy did not housing projects, irrigation schemes and work in Africa and that there was, a presidential mansion. He packs the therefore, need to search for an ‘African civil service with this tribesmen… his democracy’. enemies are harassed by youth wingers from the ruling party. His enemies are However ‘African Democracy’ came to detained or exiled, humiliated, tortured be synonymous with the tyranny. or killed’ Instead what emerged is what Willy Mutunga (now the Honourable Chief To a large extent, the ‘Big Man’ led to Justice of Kenya) in constitutional the agitation for a new constitution in making from the middle: Civil Society Zimbabwe. Various attempts were and Transitional Politics in Kenya, made in writing a new constitution for

Zimbabwe. Finally and arising out of the public houses were the landlords Global Political Agreement of 15th are Tories and similarly attacked the September 2008, the three main residents of the Chairman of the political parties, agreed amongst others, Conversation Party’. to write a new constitution for Zimbabwe. The process was long and Having quoted the above passage, the arduous but finally, a new constitution learned judge proceeded to question was signed by the president on 22nd whether we had, in Zimbabwe, may 2013. mechanisms to enforce electoral morality. One could question whether In steering the constitution the new we have mechanisms to enforce constitution bill through parliament, I morality in our various and varied remarked as follows: schemes of life. Yes, the constitution However, having a good constitution on and the laws made in terms thereto is a its own is not sufficient. It is of good starting point but a change in paramount importance that we respect culture and/ or morals go beyond law. the constitution and the laws made in terms thereof. We need to develop a Five aspects of the constitution will be culture of constitutionalism. As always instrumental in consolidating the said, good constitution does not, of its constituionalisation process: own, deliver an election free from • The Preamble in lofty words indeed violence. sets out who we are, where we came from and where we are I made specific reference to violence heading. A most significant point of free election as the conduct of our the preamble is that it subtly election since independence have been addresses our history, the issues we violent and the results from heavily cherish as a nation which we re- contested. Such has been the violent establish in the constitution making nature of our election petition, process and the contents which Makamure v Mutongwizo & Ors 1998 followed. The process of (2) ZLR (H) 154 at 155 drew an analogy constitution making which identified to a violent British election in 1874 in the lofty ideas set out gives what Wolverhampton, which was as follows: follows in the document its ‘blood flowed freely and they were legitimacy. The preamble terribly kicked, one so shocking encompasses both the morality and about the head and face that his life the law which we aspire to. is in much jeopardy- so soon as the • The Bill of Rights: The jury is still out roughs were able they got back to on the application of socio- the rail stations were the profuse economic rights.It is important to flow of blood has left painful note that the new constitution, evidence of the extent of the most section 85, provides a more open injured have sustained. The and liberal approach to a court for victorious mob then paraded the the enforcement of breaches of streets; smashing windows of three fundamental rights. It is interesting

to note that in 2009, a section on old older. This is most unfortunate. political rights, section 23A, was It is hoped that government introduced in the old constitution. addresses this critical and essential The section has been reintroduced, element of the constitution with the with positive modifications, in urgency it deserves. section 67 of the new constitution. • Term Limits: Zimbabwe has had one Conclusion. Whilst the nature of the president since the introduction of constitution one has, determines the an executive President in the mid- nature of democracy one enjoys under 1980s. The introduction of a two five that constitution, the key determinants year term limit is certainly to are people and the executive who give address the ‘Big Man’ syndrome effect to that constitution. In essence, .The two five year term limit is any practitioner working under any complemented by; a) Fifteen year constitution needs to accept that their term limit for a Constitution Court personal views, desires, wishes, are judge , b) Two five year term limits subordinate to the constitution. It is not for a permanent secretary, c) Two about what one says or wants but it is five year term limit for a service about what the constitution says. The chief. values set out in our constitution • Devolution of Power: Section 5 of demand that nobody can conduct the constitution provides for three themselves illegally and with impunity. tiers of government. The structures It directs that the executive will respect of provincial and local governance the constitution and the court are fully set out in Chapter 14 of the judgement arising there from no matter constitution. Unfortunately, more how detestable the rulings are. This is than a year into the new what constitutionalism is all about. This constitution, the operationalisation is how we can consolidate what has of provincial and local governance been provided for in our constitution structures has not been addressed. and, consequently, reintegrate Indeed, the President has appointed ourselves in the international Ministers responsible for the community of nations. provinces, a relic of governors of the

Questions/Comments • How do we go beyond the deficiencies that arose from the GPA? • Is there an action plan in prioritising election reform? • Limited participation by women in the panel discussions is detrimental to the re- engagement and democratisation agenda. Women are key agents of change and hence should be involved in issues of strategic importance to the nation building process. • What has slowed down implementation of the constitution? • What aspects do you regret about the constitution?

SESSION II: STRENGTHENING loss of public value that is attached to NATIONAL INSTITUTIONS many of our constitution.

MODERATOR KEITH JENNINGS – At the core of the problem is, NATIONAL DEMOCRATIC INSTITUTE unaccountable governance, where (NDI) leadership is corrupt and the architects Of fundamental importance in nation of corruption also accuse others of building is safeguarding democratic corruption. The moral fibre has participation and deliberate diminished over the years and has advancement of democratic values. It is affected the integrity of state upon the parliament that oversees the institutions. There is a dire and urgent government and the judiciary. need for renewal and radicalisation of Sustainable development can only be state institutions, underpinned by the achieved with democratic values and values as in chapter 9 of the processes. constitution. Value systems must be established and entrenched in all GORDEN MOYO – FORMER MINISTER dealings and people of Zimbabwe OF PARASTATALS AND STATE should engage in debate around the ENTERPRISES implementation of the constitution. To understand the notion of state Unfortunately the people who were institutions it’s important to understand driving constitutional reform are no the architecture of the state itself. longer in the driving seat of Zimbabwe was a colonial state, whose constitutional reform and those who architecture was centred on the elite resisted change are the ones tasked and the bourgeoisie. We inherited that with the mandate to implement. It is a colonial state without any political tragedy of our time and calls for transformation or shift in political the institutionalisation of our collective culture. Hence we operate under a value systems. Zimbabwe now needs a mirror image of a colonial state in terms new breed of leadership, one that of the, behaviour, form, character etc. respects, upholds, defends and Unfortunately public confidence has promotes these values. Now is the time been atrociously eroded and people for multilevel accountability – vertical, have lost ownership in state enterprises. lateral and societal accountability Public trust is zero in normative terms complemented by the renewal of state because of the accumulation of wealth, institutions and provision of public at the expense of the masses, by state goods. managers. Zimbabweans cannot have trust in state which accumulates wealth DUMISO DABENGWA – ZIMBABWE at their expense. This has had a AFRICAN PEOPLE’S UNION (ZAPU) cascading effect on the reception and The theme of this conference may need perceptions around the newly some refining. Do we need established constitution, as there is now strengthening of national institutions or rather reorientation? Strength is not

22 synonymous to clarity of purpose. While lot more remains to be done by all. The strong institutions are important, we country needs to address the issue of should seek to have values that protect winner takes all and resort to and support democratisation. In my proportional representation. time as government minister I took time Strengthening institutions should start to reorient state institutions, in an with the restoration of values that built intensely challenging landscape, where this country to being a prosperous and institutions where hugely politicised international emblem that it was. There making it intensely difficult to get things is need for a coordinated internal done without political interference and review of the government and to tackle resistance by political loyalists. Despite the unproductive competition within. these challenges I managed to push for Elected officials should be pressured to reform in the police force. For example, discharge their roles seriously and the the shift from police force to police public must engage legislators to go service was a landmark achievement beyond raising issues. On the other which revolutionised the culture in the hand, opposition and independent industry. Making a police service, meant parties should play their roles in the that the power barrier between the political system. There must police officials and the general public predictability and consistency in was dismantled. It also meant that we decision-making. All people must have where providing a deserved service to equal access to decision-making and the people , as opposed to being an contribute to policies that affect them. autocratic, all-powerful institution. In There is need for collective effort in this, the biggest lesson learnt was the championing democracy by all. need for changing institutions in order to deliver positive public goods. Zimbabwe must be a reliable partner to all they are working with locally and Democratisation provides with a lifeline internationally. There must be a level to re-engagement. In 2014 we have playing field for all players and must witnessed the manifestations of demolish gatekeepers to the awarding institutional decay in the parastals’ of contracts. In order to ensure that scandal. While there was general institutions don’t degenerate after appreciation of the exposure by the being strengthened, it is paramount press, there remains widespread that constitution provisions are cynicism, based on the inability to enforced and monitored and address systemic corruption and the incumbents of the various offices patent erosion of political oversight. adhere to principles of fairness. When Dr Mandaza was in charge of the parastals, he was on top of salary details IBBO MANDAZA – SOUTHERN AFRICAN of each of the parastal chiefs. A lot of POLITICAL ECONOMY SERIES (SAPES) lessons can be learnt from the past. TRUST The purpose of this event is to reflect on We have made strides with the the past, share experiences and lessons establishment of our constitution but a and also to acknowledge what has not

23 worked well. We are currently operating amendments to the Lancaster House under a Bourgeoisie state model which constitution was to reaffirm the big man was inherited from the colonial state syndrome. We are restoring model. We are clear that the Lancaster constitutionalism, how to restore and House constitution was conflated with strengthen constitutionalism. The new the Rhodesia front. The concern was constitution is it possible for us as how to ensure that the new state would Zimbabwe to at least to return to 1980 conform to the new model. We had where we had non-partisan state none partisan state institutions institutions.

Questions/Comments • What needs to be done in addressing peace and reconciliation? • Why should we aim to strengthen already politicised institutions? • How are we going to practically take away the regime? • Militarisation of state institutions – the reporting structure of the military struggle was never dismantled. We don’t have parastatals but party-statals. There is need for institutional framework governing the running of the parastals. • Need for a commission to set rules and regulation. • The need for involvement of youth in leadership. • Renewal of political parties is critical - political parties are crucial vehicles for national dialogue. But they have to be value driven not for personal wealth accumulation and personal advancement. There is need to review party constitution against national constitution and ensure that they are aligned. Cross party dialogue has commenced, in light of the contemporary political situation, particularly around the implementation of the new constitution. • Role of diasporas - There is need to engage diaspora voices in the political processes, they constitute 30% of our professional people who have left the country to secure better livelihoods. • Where do we situate privatisation? – State enterprise is needed by the state due to their social imperative, social security and can’t be commercialised. We can’t commercialise water, there are parastatals and enterprises that should still be government controlled, but some that should be commercialised.

SESSION III - THE ROLE OF CIVIL While there was a binge mushrooming SOCIETY: FROM ADVOCACY TO of mechanisms such as JOMIC, Copac ENGAGEMENT etc there wasn’t an economic mechanism under GPA.The new MODERATOR: RUDO GAIDZANWA constitution was meant to carry forward DEPARTMENT OF SOCIOLOGY, the reform agenda. The July 31 outcome UNIVERSITY OF ZIMBABWE means that we are stuck in parliament with a symbolic opposition. There is a JOY MABENGE - CRISIS COALITION role for CSO in precipitating this and ZIMBABWE with a watchdog mandate in light of the The opinions raised in this discussion do weak opposition mechanisms. Civil not reflect those of Crisis Coalition society must reclaim the agenda setting Zimbabwe. responsibility as in the early 1990s.

The emergence of civil society in post Civil society has disconnected with the colonial Zimbabwe dates back to the general citizenry, a recipe for regression 1980s.The relationship between civil and disenfranchisement. This was society and the state has evolved over emphasized in the post July 31 scenario the years and has been shaped by the where citizenry where hugely political changes in the country i.e. pre demoralised and will further entrench if and post Global Political Agreement. the civil society community does not July 31 was a watershed moment both wake up to that reality. Failure of which for the opposition parties and the civil they will not gain traction on issues of society. national development without the back up and input of the general citizenry. It The Zimbabwean society has been is paramount that civil society compartmentalised into sub-political reengages downwards and also communities loyal to specific dominant identifies strategic entry points. The political forces. Civil society has been state cannot and should not self- perceived as an extension of political monitor, the need for CSO to play its parties particularly MDC, in stark part cannot be overemphasized. They contrast to the more authentic, should guard against regression and ‘complementary and watchdog role’. fatigue. Civil society organisations where called under the banner of political parties. All CSOs engagements should be This has left civil society deeply underpinned by fundamental principles disenfranchised and in tatters. The way and value systems that retain autonomy forward is to depoliticise civil society and uphold democracy. There is space and to reintroduce the watchdog status for independent and authentic civil of the civil society. society to participate.

The Global Political Agreement never addressed the question of the economy.

CHARLES MANGONGERA – The role of diasporas and how they can INDEPENDENT ANALYST be mobilised to make meaningful This is a rare space for debating and contributions towards national deliberating on issues that pertain to development cannot be emphasized national development and enough. democratisation. National economy is in a bad state, poverty is deepening, Engagement does not mean one is thousands of people loosing abandoning the reform agenda, the employment, private businesses closing constitution still needs to be up etc. Yet there hasn’t been efforts to implemented. We need to prioritise foster national dialogue of this nature. media reforms, in particular, de- Where it is has been done, it has been politicisation of media, strengthening to further political interests, CS is also the role of community radio stations guilty of disengagement. etc. CSOs have the responsibility and a key role in engaging with regional There has not been broader mechanisms such as SADC and AU. engagement on the ZimAsset, the government’s economic blueprint, to WELLINGTON ZINDOVE – YOUTH ensure that there is understanding and FORUM ZIMBABWE ownership at all levels. There is a The process of re-engagement comes at difference between a constitution and a a cost in the post GNU era. ZANU has culture of constitutionalisation that more than two-thirds majority in fosters effective behavioural change in government, hence we cannot do things the political system. Civil society has a the same way. We need to identify role to play in the reform agenda. effective approaches to both, engage Unfortunately some have lost their the new political regime and to re- impartiality in the recent years, as the engage domestically. country navigated through its political storms. There was an emergence of CSOs lack a unified approach in tackling parallel structures leading to the challenges currently ravaging polarisation of our society. Zimbabwe and in engaging the global community. There is need for dialogue There is need for a separation between to build consensus on the issues of political mechanisms and NGOs who national interest and democratic should be promoting governance and progression of our country. The re- monitoring government processes. The engagement process needs to begin media has recently been highlighting with consensus building. Currently CSOs some of the untold salary scandals in face an identity and credibility crisis and our country’s history, highlighting the state actors hesitate to engage with absence of the watchdog role of CSOs CSOs due to the opposition tag. This has and political parties. The emergency of weakened civil society engagement with prosperity gospel aims to fill the gap left regional and international mechanisms. out by CSOs.

There is need for a strategic approach in important entry point in fostering a engaging ZANU PF as they control state spirit of accountability and processes and structures. ZimAsset is an transparency.

Questions/Comments • What exactly is the role of civil society? • What is the opportunity for civil society? • How do we define civil society? • The GPA had positive outcomes but the current government hasn’t made sufficient efforts to take development further than July 31. • The government is committed to engaging with civil society and involved them in the constitution making process. • What can be done about civil society fatigue? • Do we believe that democratisation is taking place? • CS shouldn’t be ashamed to be connected to political parties

SESSION IV – EXAMINING THE ROLE OF self- censoring themselves due THE MEDIA IN A DEMOCRACY to fear of retribution. • Is the fear of retribution still MODERATOR - MARK NELSON, CENTER contextualised? Does retribution FOR INTERNATIONAL MEDIA really happen to vocal members ASSISTANCE (CIMA) of the media? Some of us have been forthright with our PANELLISTS; opinions, speaking out against MICHAEL CHIDEME - ZUJ poor and accountable VINCE MUSEWE – MEDIA ANALYST; governance, with no ANDREW MOYSE – MMPZ, ramifications. SEKAI NZENZA – COLUMNIST • We inherited a system where we have a centralised power and we This panel used a question and answer don’t have a culture of format. To make for easy reporting, the questioning authority. Unlike in key issues from this session are captured the developed world where in bullet points. media is investigative and question the status quo. Key Issues discussed: • Media monopoly is crippling • The media can be a key player in innovation. Zimbabwean media promoting good governance and has never been free, ZBC democracy. monopoly is a real challenge. • Unfortunately there has not • There is a state of media been a separation between the paralysis since independence, media and politics. the democratic space has been • Most elements of the media are largely closed up for media to either linked to political parties, exercise full freedom. or owned/supported/sponsored • There some notable media by specific political party malpractices i.e. licenses are loyalists. being granted before there is • Media tends to take a partisan any reform of the broadcasting stance, lacks deep and critical sector. analysis of information. • The processes aren’t transparent • Media is not playing its full role , there is need to reform the because of the ownership laws. structure of the media houses • There are some real barriers and • State intimidation, threats of stereotypes that prevent certain closure for perceived media actors from accessing government opponents prevent vital information. For example innovation and stops the media working for the Herald can turn from delving into sensitive areas off some people from engaging. of the state. Media houses are

• There is need to expand international image of the information access to remote country. areas. • The state needs to realise that it • Without political will to is no longer possible to control implement the constitutional the media but allow media provisions around media freedom to shape freedom of expression there democratisation process. won’t be sea change in the state • The state- media relationship of the media. needs to be detoxified and • Need for democratic media laws needs to be upgraded to a that govern practice and control complementary one where it is unfair and undemocratic use of a primary indicator. power in the media. • Media should push boundaries and speak out without fear. • Need to reflect on the role of media in shaping the

Questions/Comments • Responsible reporting - media should not critique for the reader. • Liberalise print media sector and be more stringent on the electronic media. • Its dangerous to assume that the state is monolithic, its symptomatic of the discord in state institutions. • The role of the media is to create space for dialogue and they need to be careful not to tar everyone with the same brush. • Use of social media in the exchange of information needs to be promoted and strengthened. • People don’t have the capacity to interrogate what they read. • The quality of journalism is poor and inconsistent. • The culture of fear among journalists is a reality and needs state reassurance. • Inclusion of sub communities – youth, disabled, in such fora so that they can articulate their own issues. There is need to engage the alternative voices • It is difficult to engage without leverage. • Media is a critical part to effect change and also to stall change. The conference has done well to integrate the issue of the media.

SESSION V: REINFORCING ZIMBABWE’S We also work through the UN system to DEMOCRATISATION PROCESS: A engage the Zimbabwe situation. DIALOGUE TO REINFORCE The EU is re-engaging with Zimbabwe, ENGAGEMENT and it’s important to state that we did not impose sanctions but restrictions. MODERATOR: IBBO MANDAZA, SAPES Currently the restrictions are against TRUST Mugabe, the first lady and the We have focused on bringing diverse Zimbabwe Defence industry. We voices through this conference to recently waived Mugabe’s restriction so ensure that there is effective that he could attend a meeting in EU, representation of a variety of yet the focus was on the ban on the first perspectives. On this panel we have lady in attending. Of the companies former finance ministers, EU and under restrictions, Agribank was not ambassadors who have been engaged in there but companies linked to specific national discussions. The aim for tonight individuals. is to share practical approaches in strengthening democratisation and European investment can only work reinforcing national and international with the private sector. We have engagement. promoted an engagement with the private sector, Zimbabwe private sector ALDO DELL’ARICCIA – EU DELEGATION has engaged internationally presenting TO ZIMBABWE their views in order to attract FDI. The I am here tonight representing the fact that investment banks owe debts to European Union. The European Union is the EU is evidence of engagement. committed to engagement with Zimbabwe and we have been working in We are committed to engagement with partnership with Zimbabwe in a number Zimbabwe while expecting to see some of ways. For example our trade with practical steps towards Zimbabwe is healthy. There is a market democratisation. We have witnessed for Zimbabwean products in the EU. some progress, a good constitution, Also if EU did not have economic more positive messages - Mugabe at partnership agreement, Zimbabwean Trade Fair, and Independence inviting products such as sugar and tobacco investors to Zimbabwe, but haven’t would be subject to paying tax. translated into much change. We have seen continuing EU, US bashing, We are preparing a country cooperation Electoral promises that haven’t been strategy, the condition of public finance honoured and the burdens are on the management is not mature. Our key shoulders of the government. focus areas will be governance among others. There won’t be budgetary EU is not against land reform but land support to Zimbabwe. reform doesn’t mean that you kill people as has been in the seizure of farms in Mazoe .EU is reengaging with

Zimbabwe, but its important to put the and desist from protecting the house in order. There is need to address narrow interests of a few elite. issues of transparency, accountability • We cant talk about politics without and strengthen democratisation. touching on the economy • There has to be an TENDAI BITI – MDC T acknowledgement of failure on the We are in the middle of an part of the ruling party, ZANU pf and unprecedentent crisis manifesting in to call for national dialogue. multiple forms. The is crisis of • ZIMASSET hasn’t been inclusive and democracy did not start in 1980, we consultative and there is need to have had two political leaders in the last engage all key stakeholders in its 49 years. There is a democratic deficit in operationalisation. Zimbabwe. • China isn’t Zimbabwe’s closest friend, they are a business country We have witnessed an unprecedented and focused on self interest economic downturn, and an uneven and • Its time high time Zimbabwe had a unequal economy.90% of the tobacco second ZIMCORD, it urgently needs we are producing is being exported. We financial investment. need 12-15% growth rate but will not be • Use minerals strategically, establish able to realise these in the absence of linkages in the private sector beneficiation. • Competitiveness of our economy - bringing back the Zim dollar isn’t the There are some systemic challenges in solution the political system which include; a • Finalise dialogue with IMF and EU conspicuous absence of leadership, around budgetary support. polarised and internally divided ruling party, politicised state departments, MATTHEW NEUHAUS – AUSTRALIAN crisis of governance, electoral crisis etc. AMBASSADOR Zimbabwe’s history dating back to The emergence of the national tabloid Rhodesia never knew democracy. There paper HMetro is reflective of the moral are many elements to a democratic decadence of the nation of Zimbabwe. society. In Australia we had frequent Proposed solutions: regimes change, ensuring injection of • The need for a brand new paradigm fresh ideas, that’s how we keep our – where the culture of intolerance, democracy fresh and vibrant. We tackle exclusion and unaccountable corruption upfront, here in Zimbabwe I governance should be tackled. The have not seen any ministerial winner takes- all approach should resignations due to corruption. be banished. • There is need for real and Australia has been engaged in meaningful national dialogue. Zimbabwe during independence and • National healing and institutional since 2008 when GPA gave us the space reform is key. The liberation to engage. We took a strong stance movement has to demilitarise itself 31 against the Smith regime. When I was about engagement. Western elements appointed in this role in 2011, I made it are constantly denigrated in the state my priority to engage with ZANU Pf and sponsored papers – the Herald. The MDC and we have achieved significant government media denigration of the progress in many of these. We are West does not show commitment pleased to see that there was a change towards engagement. We are ready to from 2008 While we have some do more and engage. Your future is in disgruntlements about the electoral your hands process 2013 there has been some significant improvements in the recent SIMBA MAKONI - years. MAVAMBO.DAWN.KUSILE Reengagement with the global Australia has had parliamentarians visit , community assumes that the country sports officials visits – Australian cricket disengaged from the global community team, Zimbabwean ministers have also and also that reengagement is attended our conference and also some necessary only with global community. engagements through the Kimberly It is critical that there is strengthening of process. domestic re-engagement. We remain deeply polarised as a nation, we can and Investing in Zimbabwe is like swimming should re-engage and not exclude/veto in Zambezi between Crocodiles and other key stakeholders. Hippos. You don’t get new investors unless The diaspora constituencies need to be you’re able to look after existing engaged – they shouldn’t also wait to be investors. The presence of red tape in engaged but should position themselves business enterprises makes it difficult to to return. National recovery will be conduct business in Zimbabwe. realised when we engage with Zimbabwe is at the bottom of Zimbabweans in various corners of the international ranking in tackling globe. corruption, and business attractiveness. Ministers appear disempowered but Leaders are detached from the realities however I congratulate Minister of the people on the ground. There is Mutsvangwa for his dedication to need to demolish the culture of fear in engaging international community and the general public and foster public also Minister Chinamasa following his confidence in public systems. EU and US engagement meetings. He probably could have engaged donors With regards to international following these meetings. engagement, there have been significant acts of engagement and The Australian government has taken there has been growth in our formidable steps to engage the engagements over the years. It is government of Zimbabwe but we have Important that government normalises not seen proactive steps by the GOAZ.It its relationship with international makes us wonder if Zimbabwe is serious community to ensure effective

32 engagement. The world has moved on where there is an acceptance that ZANU while we have been focusing on our is an indispensable player on the petty fights. We need the world, it does political playing field. ZANU PF is a key not need us. We need to make our first stakeholder in the economy and politics move towards reengagement. of Zimbabwe and has a lot to contribute to the future of Zimbabwe. As a This country should not be an aid member of the liberation movement I recipient but at the forefront of global witnessed firsthand the struggles trade. With so much mineral wealth in endured and hence the need to situate Zimbabwe we should not be begging for the party at the centre of national budgetary support. development going forward.

In as much as we face economic In terms of engagement with the global challenges we need to forge community, there is need for mutual international relations where there is a honesty and respect on both sides. If fair and level playing field for confidence is to be built, there will have participants. to be robustness also on the part of the international community. Confidence is CHRIS MUTSVANGWA – DEPUTY enhanced if we don’t inculcate bad MINISTER OF FOREIGN AFFAIRS manners in international relations such The concerns raised by EU and as the refusal of visas to the Zimbabwe Australian government will be taken first lady. It is immature and constitutes back to government and the relevant bad manners. authorities. There is huge amount of potential in our The last three weeks have economy, to sustain the entire demonstrated that maybe ZANU PF was population of Zimbabwe. The country right in defending the country. The does not need to rely on international polarisation and ineffectiveness of the aid. We can and should strengthen our opposition parties hasn’t escaped our national mechanisms to ensure that we radar. We now need a definite paradigm are a self-sustaining country.

Questions/Comments • The recent attack on Elton Mangoma constitutes human rights violation and the EU should have taken a stance against it in the same way as they have in previous cases. • Confidence building has to be underpinned by non-partisan principles and honesty, integrity and mutual respect. The importance of sound value systems cannot be over emphasized. • ZANU PF isn’t the only player but an important player • What has happened to the GPA mechanisms of JOMIC, COPAC and how have they played out up until now? How do they contribute to the current politico-economic situation? We need to build on these efforts in so far as they were important to the national development. • MDC is 15 years old, it has to be understood in context. • There is need for formal, non-partisan think tanks in selected sectors. Currently there is an over reliance on elected representatives to foster dialogue on national development.

DAY 2: TUESDAY 6 MAY 2014

AN AGENDA FOR ECONOMIC RECOVERY contract. Some elements of the constitution have elements of social SESSION VI - RESTORING SOCIAL contract. CONTRACT The country is in a bad state at the MODERATOR: IMANI COUNTESS – THE moment and there is common SOLIDARITY CENTRE US BASED recognition of the depth of the crisis SOLIDARITY CENTRE characterised by closure of firms, job The discussions so far have emphasized losses, economic decline and it is going to the importance of an overarching get worse. framework for the entire region. A social contract, ensuring that governments, It is therefore timely to bring in social institutions and labor markets are partners in mapping out the road map, engaged and radicalized, is critical. It explore how policies should be revisited, requires a deep examination of the strengthened and implemented. There is government processes. Gender need to work out a point of compromise mainstreaming and integration is a critical and for closer collaboration among all element of this process. Its important stakeholders. We did not see this under that we recognize that gender equality the GPA where the contest was largely does not just benefit women but also the over state power and resources between entire society and patriarchy hurts both parties in government, much to the men and women. Patriarchy hurts both exclusion of other key players. We are men and women and is an impediment to going to have to involve and national development and social accommodate informal operators such as sustainability. constituencies of farmers and miners.

LLOYD SACHIKONYE - INSTITUTE OF Political will is absolutely necessary and a DEVELOPMENT STUDIES, UNIVERSITY OF shift in mindset is critical in the way we ZIMBABWE approach politics. There is need for a It is important that we change our national development framework, some attitudes towards each other in a way kind of anchor rather than short term that allows national interests to fixes. Economic blue prints etc are short subordinate our narrow interests. A social term, but there is need for social contract has evolved from state contract, an institutional framework to formation in 1980s through Kadoma define and oversee national Declaration (a major moment) and the development. crises of 2000, to the 2009 set up of GNU. Unfortunately, the Kadoma declaration was shelved in the process and now with the ZIMASSET, the focus of the government has been on the economic blue print without any reference to social

TONGAI MUZENDA – DEPUTY MINISTER Key elements for catalyzing this process PUBLIC SERVICE, LABOUR AND SOCIAL include: the need to instutionalise open, WELFARE transparent and inclusive governance, There is need to reflect on the past with a need to pursue poverty reduction, need view to draw lessons for going forward. for rapid human growth, sustainable Our past experiences should be the livelihood, justice and peace engine that drives our national development. development efforts. The government is committed to social dialogue as PETER MUTASA - ZIMBABWE evidenced by the creation of the tripartite CONGRESS OF TRADE UNIONS (ZCTU) social mechanism for social dialogue. The This discussion is timely, happening at a social partners agreed on three protocols time when the country is experiencing which include business, price controls etc. unprecedented economic challenges Progress on this can only be fully realized and political upheaval. Our economic if these social mechanisms are problems are well document and need depoliticized. There have been some no emphasis. The difference between underlying political forces in the social the previous economic crisis and the dialogue, dragging things from moving current one is that the government forward. Disharmony is not helpful to the acknowledges it. In order to formulate a cause for social dialogue. There is need to way forward we need to track the path advance a common cause and to reorient we have travelled on and draw lessons. our programmes. There hasn’t been sufficient The current political climate shouldn’t implementation of the social contract deter us from forging a way forward for despite the 2010 launch by the social dialogue and collaboration. The President. The government has been failure to implement the social contract using unilateral and coercive presents with an opportunity to learn. approaches in the process and this need We need to create an institutional to be revisited. There is no trust framework for social dialogue. There is between the government and social also need for actors in the social dialogue partners, and there has not been to put their act together to ensure that adequate funding committed towards the process is effective. Captains of the the implementation of the mechanism. industry should make conscious efforts to If we are to make meaningful take TNF deliberations seriously. development, there ought to be an agreed social contract and enduring The social contract required is one that’s social dialogue. The nation cannot be broader and more inclusive, beyond our ruled on the mighty power of the state traditional tripartite agreement. This is but on social collaboration. The presents an opportunity to reawaken a government should abandon sense of morality and thereby build our unilateralism and adopt social work on solidarity. consultation and dialogue. There is need for investment in the building of trust between government and social

35 partners and all stakeholders must partners, in discussion, in commitments. abandon pursuing narrow interests. It’s The social dialogue will not work if one important to bear in mind that the part cherry picks what part they will political context has a bearing on the honor. Trust will never be bought but social contract and hence emphasizes earned. The government of Zimbabwe the need for robustness to develop a should not undermine the role of new political paradigm. tripartite partners, business, labour and all have a role in this. Rather they We are all in some form of a social should provide with an enabling contract, it may not be perfect and up environment, create productivity and to our expectations but we are in it. attract FDI. There is need to explore the There will have to be investment in possibilities of boosting the business capacity building and gender between Wankie and NRZ, the mainstreaming to ensure that all foundation on which we can trigger the stakeholders engage meaningfully. It’s economy. also important to tackle underlying issues instead of focusing just on Zimbabwe is small, micro and medium manifestations. Also of importance is enterprise, there is a difference developing frameworks, monitoring and between informal and small business evaluation processes. enterprise. It is important to bear in mind that social dialogue works and can OSWELL BINHA – ZIMBABWE work in Zimbabwe too, provided we NATIONAL CHAMBER OF COMMERCE foster the right environment. In (ZNCC) Indonesia they couldn’t do it in a In 2011 the social contract was declared military state, they only did it in 1997.I dead. Business is meant to make have seen the success of social dialogue money, the more money we make the in South Africa. We need to garner more jobs we create. The perception efforts, and to learn the power to that business is the enemy of the state suspend. Some of us are still in the is only detrimental to the government yesteryear when the world has moved itself. When you are at a negotiating on. We need to explore ways of table, you all reduce yourselves to equal resuscitating the Kadoma declaration.

Questions/ Comments • People are in the informal sector not by choice and we can’t build the country on the informal sector. • Tripartite negotiation forums aren’t legislated. • Practical implementation must ensure that the playing field is level. • Change the language and tackle the underlying issues. • What monitoring mechanisms have been put in place for this process. • Need for public policy infrastructure. • Political will is central and trust is critical. • Total commitment from all stakeholders to the social contract is essential. • Success of a social contract defines the success of Zimbabwe.

SESSION VII – AN AGENDA FOR democracy, the country will not deliver ECONOMIC RECOVERY for the people of Zimbabwe.

MODERATOR: ABDULWAHAB ALKEBSI, There is need for a shift towards market CENTRE FOR INTERNATIONAL PRIVATE oriented reform in order to provide ENTERPRISE (CIPE) sustainable livelihoods for the people of This is my first trip to Zimbabwe and I Zimbabwe. With 70% of people under have learnt a lot from all the 30 in unemployed and with no means of deliberations. We have been sustenance, democratization is thrown operational in Zimbabwe since the out of the window. In the absence of job 1980s working with ZNCC and have creation efforts by the government, witnessed some key changes and people are not going to support progress towards democratization, democracy. Its critical that institutions through elections, working with the of accountability, transparency, public private sector etc. A lot more remains to governance are established, supported, be done. Without consolidating monitored and effectively discharged.

ASHOK CHAKRAVARTI – ECONOMICS following formation of GNU, yet we are DEPARTMENT, UNIVERSITY OF already seeing a steady regression. ZIMBABWE Formal industry is in decline, due to Zimbabwe needs to normalize its competition from SA imports. 70 relationship with international financial percent of imports are from SA and also systems, that is, IMF, World Bank, with high cost environment particularly the West and East. There is need for an related to wage costs. Dollarization internal reflection and identify brought some economic stability but a approaches to creating an enabling policy dead end made Zimbabwe a high environment for economic recovery. cost economy, wages are high, industry The world has moved on and Zimbabwe cannot compete. needs to raise its game. In the last 15 years, economics has changed, it is no Mining contributes almost 20% of GDP longer resources based. It is not yet there isn’t much revenue going into resources which are the basis of the national coffers. The national development but institutions that steer budget is constrained by limited and release energy for progression and revenue from formal sector and development. Without the right and increasing wage bill. It is also effective institutions, it is difficult to constrained by dollarization and high navigate out of an economic depression. wage bill. There is no policy to curb wage increases. Countries such as India and China have been widely quoted for FDI going into Informal sector is estimated at 40% of their countries. Their leaders had to GDP but there is no strategy to raise consciously revolutionize domestic revenue from them. Mining policy is policy environment and institutions. In dominated by indigenization concerns Zimbabwe, growth started in 2009 and beneficiation. There are no

37 incentives for farmers to produce foods is no real solid policy to raise required vs nonfood crops. investment. The president has appealed The economic blue print has been for FDI but there is no solid process to widely praised and it is robust, but there garner investor confidence.

PROPOSED SOLUTIONS: • Monetary Union with SA.180 countries have no currency of their own. • Restore property rights • Restore competitiveness • Enforce wage and employment freeze in public sector • Focus on informal sector to raise new revenues • Institute salary ceilings • Gazette and formalize new regulations. • Relax indigenization norms • Institute corporate governance - strict new laws to criminalize corporate fraud.

debt overhang of 7 billion and 75% of KUPUKILE MLAMBO – DEPUTY the debt which is in arrears. There is GOVERNOR, RESERVE BANK OF also export underperformance to worry ZIMBABWE about. Capital scarcity is the most defining challenge in an economy. Capital is what Overall, our problems are structural. We matters most in an economy. When lack competiveness and productivity, implementing ZIM Asset we should face declining profitability. Public understand the context we are confidence in the banks has diminished. operating in. Persistent, declining I am not sure we want to pick a inflation is what the country is faced currency, the rand is the most volatile with. If we sink into deflation we don’t currency in the world. Let’s keep the have fiscus stimulus to come out of it. currency we have and monitor the Our most pressing worries are, high situation.

PROPOSED SOLUTIONS a) Improve the investment climate – challenge the financial sector, implement institutional reforms at the central back, recapitalize central bank, find market based solutions, financial inclusion, increase the capacity to invest, invest in infrastructure. b) Enhance the productivity of investment. FDI levels are low and hence a need for policy consistency. Investment takes time to build. c) Resolve the debt overhang d) Identify international champions for Zimbabwe to improve the international image and speak on our behalf.

DANIEL NDLELA – ECONOMIST The government should adopt a We should start by addressing the facilitative role in fostering dialogue challenges ravaging the country. We among all stakeholders. There has to be need to realize that sustained economic a deepened national and regional recovery will require policy integration. There is need for value coordination, cohesion and chains and improved national and commonality of views. There is need for regional infrastructure. There is need a comprehensive institutional for a clean economic environment, radicalization as has been seen in improve capital productivity, create Ethiopia and Rwanda. There are no soft conditions for investment by improving landings in curing a structural problem, domestic investors. The macro as in the cases of Liberia and Sierra environment has to be conducive for Leone. In Zimbabwe there is lack of FDI flows, strengthen public financial vision and planning to anchor the new management and improve confidence. development plan. There has to be a serious anchoring of policies to promote economic growth.

Proposed Solutions: • We have to tackle debt overhang. • If we are to deal with SMES we are to bring the capital systems. Move into inclusiveness SMEs shouldn’t be an add on appendage. • We have to address the ambiguity of legislation so that the message is clear and sound. • There has to be revenue transparency in the mining sector. • Overhaul and increase efficiency of state enterprise • Strengthen the resilience of domestic financial sector. • Improve confidence. • Policy consistency.

NGINYA MUNGAI LENNEIYE – FORMER emphasized the centrality and an ZIMBABWE COUNTRY MANAGER – empowered society. This is also WORLD BANK important in the drive towards a The country has been dominated by the growing economy. Everyone has got indigenization debate since 1998. We have access to information on have collected an enormous amount of opportunities available to them. There information since then and we now has to be meaningful participation by need to chart a way forward that does individuals and communities and allow not keep us on the subject much longer. the exercise of choice by all.

Zimbabwe has a population of 12 Efforts towards a growing economy million in a world of 7 billion, a tiny should be driven by human activities percentage of the global population. All that create wealth necessary to address the historic national strategies have

39 human needs. Zimbabwe economic growth is stunted.

Proposed Solutions • Empowerment can drive development – information, participation, accountability and organization. • Existence of legally enforceable individual property rights provides a sound foundation for rapid economic growth • Foreign investors are on the whole attracted to countries where conducive conditions exists for investment by local entrepreneurs • Create a conducive environment that unleashes the talents of Zimbabweans.

Questions/Comments • We have very informed think tanks in our country and we have a government which either lacks in capacity or is impervious to advice. There is need to buttress policy. • This information needs to be shared widely • Obscene salaries - companies must disclose remuneration of their employees. • Corporate governance is more than criminalization of corruption. Businesses close down not only because of the state of the economy but due to bad governance. Corporate governance is a major issue that we need to spend more time on. • What should the Diasporas do to contribute to the economy of Zimbabwe? • How do we climb out of the horrible pit of debt? • Persistent constrains , broken down institutions, a ruling elite which has a stake in the lack of transparency and consistency and the murkiness of policy • What does participation mean in politics? • Zimbabweans talk but nothing happens, it’s the nature of decision making and policies adapted. • Rwanda is an interesting case study for the government to follow up on. • Zimbabwe has attributes of a fragile state • Joining the common monetary area of the rand may be the least of the evils. • If Diasporas don’t invest in Zimbabwe why should foreigners invest? • Seek yee the economic kingdom and the political kingdom will come • Understand the political ideologies of the ruling party – we are our own liberators • Need for a proper scheme for engaging the diasporas.

SESSION VIII – REVIVING ZIMBABWE’S PRODUCTIVE SECTORS

Moderator: Caleb Dengu – Zimbabwe Investment Bank The way the Zimbabwean economy operates is like one running on a treadmill. The ZimAsset is a business plan as opposed to being a national development plan. We have to develop a national framework first before we seek to engage internationally. One cannot play the champions league unless they win the domestic league. We do not manufacture a single handset yet Zimbabwe has millions of them.

NADIA PIFFARETTI- WORLD BANK conditions. Structural transformation Current trends in Zimbabwe are in line takes time; it is a decade long process. with the rest of Africa. There is growing There is need to grow domestic interdependence with the global demand, improve productivity of economy. Smallholder agriculture is smallholder farms and household firms. vulnerable and there is widespread Zimbabwe can get a boost from external unemployment. The 2009-2011 growth demand and take advantage of was powered by favorable economic technological advancement.

PROPOSED SOLUTIONS • Focus state activity on service provision. • Avoid being locked in resources dependency by increasing productivity of smallholder farmers, increasing internal demand for manufacturing services, pushing demand for services by informal sector, boosting their finances so they can pay tax. • Lower the high country risk. If you want investment to flow in , break the country risk down • Tilt towards short term rent extraction • Saving levels - growth from the inside – in 1998 Zimbabwe was much richer than China, they where poor but they where saving. Why is Zimbabwe struggling in empowering their people? There is need for savings. China is a good saver • Leverage the mineral rent • Strengthen public investment strategy • Strengthen financial supervision • Keep macro economic framework stable • Support increased productivity in small holder farmers • Access global markets and technological transfer.

GEORGE GUVAMATANGA - BARCLAYS should centre on the ‘hows’ not the BANK OF ZIMBABWE ‘whats.’ There is need to develop a It is important to look at what has shared vision, sense of ownership – key brought us where we are currently, in elements of our national development terms of value systems, vision and that have been lacking among operationalisation of policies. Debates Zimbabweans.

We are in competition with other BRUCE WHARTON – US AMBASSADOR countries and they emerged and SAPES has created a platform for progressed ahead of us while we were engagement in a constructive and down. There is need for a close productive manner. Zimbabwe needs to examination of every issue and learn look at ICT as a productive sector and lessons. I have been travelling across the driver of the Zimbabwean economy. the world to identify potential investors. The future of ICT isn’t in the hardware We need to identify strategic sectors, but software. Zimbabwe stands at an and most importantly prioritize our advantage and has a unique natural resources accordingly. There is combination of being an English need for flexibility around hiring and speaking country, have uniquely firing after the hyper inflationary era. educated and hard working workforce The cost of everything ended up mixed which sets it up for productivity up and unprecedented. We need price correction, failure of which we can’t Zimbabwe has sovereign power over its compete with these levels of costs. The own economy. There is need to talk to multi currency system is going to be the ZANU PF government. US is not an around for the long haul. As we do not enemy of Zimbabwe and is keen to have have domestic savings, we will support an activities and policies that have to rely on borrowing. When you increase the country’s productivity and borrow from external sources, the international influence. The world wants country risk is a key factor determining to see a Zimbabwe that feeds its own the price of borrowing. Higher country people. Zimbabwe needs to recognize risk rating also means the cost of the its own power, look inwards and see its money from multilateral lenders is own strengths and leverage these. higher. There is no panic withdrawal - from the banks such stories give us a CHARLES MSIPA – CONFEDERATION OF poor risk rating ZIMBABWE INDUSTRIES (CZI) There is need for a diversified Policy consistency is critical for the manufacturing sector to maintain banking sector. Policies must be clear, competiveness. It’s important to straightforward and underpinned by recognize the integral linkages between legislation. This will minimize policy manufacturing and agriculture. There is reversal and misinterpretation. No one now a problem of an overvalued will give you money because they love exchange programme. The multiple you but because you have created currency regime has resulted in conducive environment for investors. shortage of capital. With the lack of It’s important to acknowledge the affordable funding, manufacturing is consultative spirit by Minister sliding backwards. Chinamasa and his efforts to engage us trying to understand things. There are some sectors we are not competitive and we need to focus on fundamental things that we must fix. We need to increase the ease of

42 conducting business and stay focused instability, inadequate infrastructure on addressing the fundamental factors. (water, electricity), restrictive labor regulation, corruption etc.We have an There is need to expand access to increasingly positive dialogue, the pre- finance and tackle the factors that slow multiple currency era was much more down progress such as, policy challenging.

Comments/Questions • International business actors visiting Zimbabwe should meet with Zimbabwe businesses too. • For any investor the risk return profile should be acceptable. • Normalize relations with IMF and World Bank. • The operational environment is complex. There is rapid, unpredictable change, information access is poor and rumour is rich. • Expansion of markets for Zimbabwean business beyond Zimbabwe is important. • Property rights – to what extent has the land reform programme affected them? • What does a conducive environment look like? • Media isn’t reporting accurately due to lack of access to key people, what systems are in place to facilitate access? • Vulnerability of labour in the current climate. What is the banking sector going to do to ensure that labor market feels safe and protected? • Would the world bank be prepared to give assistance to empower rural farmers • World bank has been conducting knowledge generation initiatives around land.

SESSION IX – MOBILIZING FOREIGN Brazil has become a preferred DIRECT INVESTMENT: TRANSCENDING investment destination internationally THE SANCTIONS REGIME and potential investors are clear about options for foreign investments, policies MODERATOR – JEITENDRA TRIPATHI, and legislation. Clarity, confidence, trust INDIAN AMBASSADOR political and social consensus are key in There is need for a clear-cut policy, attracting foreign investment. Also, investment protection and investor continuity in policy implementation incentives. In India, you inform the despite change in governance is key in reserve bank within 30 days of planning sustain investor confidence. to invest there. Eliminate corruption to attract investment. Democracies are There is need to tackle problems of living organisms; they differ from hyperinflation and government country to country. expenditure. Democratisation is a process and requires change in political MARCIA MARO DA SILVA – BRAZILIAN culture. AMBASSADOR Brazil does not a have bilateral LIN LIN – CHINESE AMBASSADOR investment policy, neither does it have a In 1978 we adopted reforms SEZ which FDI policy. The change that catalyzed have become a trend setter for the Brazil’s economic growth was a social economy. If economic growth is to be and political pact that, we do not want realized, there is need to respect basic an economic crisis, hyperinflation etc economic rules, test the water before The government signed a law, a fiscal you cross and replace planned economy responsibility act, which was then with market access. Foster an cascaded to the state level. We adapted investment friendly environment which a target inflation, reduced debt and includes: preferential land use, tax and increased reserves so that we wouldn’t industrial policies and protection of spend more than we where earning. intellectual property rights.

The macroeconomic environment There is need for support from central became conducive for growth and and local government and direct respected the commitments to the pact. support from different ministries. Local Each state decides what they do to government is encouraged to take attract FDI and there is innovation and initiatives in planning and policy making, competitiveness. There is diversification and fostering competition between of foreign investments and reduced different regions. Hundreds of interest rate has allowed for foreign government officials are invited to investment. There has been an increase China for training etc in job creation and which in turn allows Reform and opening up of policy has for sustainable growth. brought about substantial changes as well as giving incentives to potential investors.

SOUTH AFRICAN AMBASSADOR – VUSI institutions and vehicles for MAVIMBELA development investment both in South South Africa’s approach to investment Africa, the region and the continent. and economic development in the The Development Bank of Southern African continent is premised on South Africa is wholly owned by the South Africa’s foreign policy. We recognize the African government. need to invest and innovate around power and ICT in order to compete on FRENCH AMBASSADOR – LAURENT the international stage. DELAHOUSSE The EU is engaging with Zimbabwe, SADCs regional Infrastructural sanctions are behind us and we want development plan has identified them behind us. Sanctions have had catalytic infrastructure that requires 64 little effect on the economic situation of billion dollars. SADC should give Zimbabwe so no need to blame it on the infrastructure linkages that are easy to sanctions. Better act on the sanctions reach.JICA assessed 18 corridors for you are imposing on yourself through infrastructure development. There is country risk, corruption, lack of clarity o need for increased SADC implementation of the indigenization competitiveness for FDI.Transport, law. Discretion is not going to work for power, and water sectors are lucrative international investors. International for FDI.There is need to build political perception of Zimbabwe is important. consensus and secure high level support and buy-in. Promote competitiveness The government is starting to do what is and focus on infrastructure. needed to attract foreign direct investment. Ideally they should be able Think regionally when developing to control its own monetary policy and national projects and finance projects reengage financial institutions. There is that matter South Africa’s development need to move swiftly toward the culture finance institutions are government of accountability.

Questions /Comments • Sanctions propaganda has been effectively anchored into all levels of Zimbabwean society. EU doesn’t have sanctions but restrictions. • South Africa /Zimbabwe relations - South Africa emphasizes multilateral relations, have a bilateral agreement with Zimbabwe on the protection of investment, which contradicts the superior agreement with SADC protocol. • What is the effectiveness of sanctions in pushing for democratization of Zimbabwe? • The Africa visit by the new Chinese prime minister hasn’t been extended to Zimbabwe. This contrasts the perceived strong relations between Zimbabwe and China – There are ongoing diplomatic visits between the Chinese government and the government of Zimbabwe. China has different relations and priorities with different African countries, so the priority of the current visit is not necessarily Zimbabwe. 45

CLOSING REMARKS forum there was intense dialogue that emphasized the need for national IBBO MANDAZA – SAPES TRUST dialogue. Political parties must move Sapes Trust and NED express their forward to institute a national gratitude to all participants particularly convention. We need to move beyond Ambassadors, NED, SAPES team arrogant posturing and foster national (particularly Fortune Gwaze), panelists, consensus. the rapporteur, Tendai Madondo, and all participants. The participation in the DAVE PETERSON - NED last two days has been phenomenal, I would like to acknowledge and thank with 76 organizations, 21 ambassadors, the participation of US representatives. I 7 government ministers, 12 people from am delighted that we are able to bring the diaspora, 153 participants and 500 together all stakeholders in various in the public forum. sectors to open up political systems. Democracy is a system that has This marks the beginning of the long advantages and that is our mission. overdue national dialogue. There has Ideas have been raised before but what been a growing incapacity at the level of has been striking is how it has brought the public sector. Zimbabweans are together variety of stakeholder in frank concerned about the need to improve and open dialogue - business, civil our conditions. There will be a follow up society, political parties etc. We look in form of policy workshops in various forward to continuing this dialogue capacities including global community and state departments. At the public

CONFERENCE POLICY RECOMMENDATIONS

The following policy recommendations were made in the nine sessions covered by the conference;

1. Minister Patrick Chinamasa’s Opening Address • Government should create a good business climate. This is why we have clarified the policy on indigenization and declared our invitation to foreign direct investment. • In this regard, government will seek to ensure that the Zimbabwe Investment Authority will have full authority to determine investment conditions as a One- Stop-Shop, and thereby approve foreign direct investment. • Government is inviting investment in power generation, road and rail network, water and irrigation infrastructure and information technologies. The government will invite players through Build-Operate-Transfer (BOTs). • Government is committed to fighting corruption and we are already demonstrating that we are serious about it. • Government is committed to assist in reforming and building the public service capacity, not least improvement in service delivery in all sectors, effective and quick decision-making, and the eradication of self-defeating red tape and corruption. • The Zimbabwe government is putting in place a flexible indigenization policy framework that attracts investment while at the same time ensuring that local people of also benefit.

2. Consolidating Constitutional Reforms • The enactment of the constitution was a milestone for Zimbabwe. However, the process of implementing this constitution will require the passing of a plethora of legislation. • Government must prioritise and expedite the implementation of the new constitution particularly provisions dealing with human rights, rule of law and socio-economic rights. • The implementation of this constitution must be an all-inclusive process involving all stakeholders to ensure mutual accountability with government, underpinned by mutual trust. • It is important to distinguish between adopting a constitution and constitutionalism. The supremacy of the constitution is sacrosanct and the provisions of the constitution must be observed in letter and spirit to ensure that the constitution is not just another piece of paper.

3. Strengthening National Institutions • Zimbabwe inherited most institutions from the erstwhile colonial period and has not made efforts to transform the same in accordance with pluralistic practices. Thus there is urgent need for renewal and radicalisation of state institutions, underpinned by the values as in Chapter 9 of the constitution. • National institutions in Zimbabwe should operate in a politically impartial manner to ensure they operate efficiently and retain the trust of the people they must serve. • While strong institutions are important, we should seek to have value-based national institutions that protect and support democratisation. National institutions should be free from political and undue interference to ensure they operate effectively.

4. The Role of Civil Society: From Advocacy to Engagement • Civil society organisations should cease to be extensions of political parties and political forces to ensure that they play their watchdog role. • Civil society organisations should consider transcending from advocacy to engagement and ensure complementarity with process by other stakeholders. • Civil society should prioritise the implementation of the new constitution and guard against processes that may result in regression of the milestones made this far.

5. Examining the Role of the Media in a Democracy • Government must prioritise media reform to ensure with particular emphasis on the broadcasting media. • The ownership structures in the media have resulted in polarisation between state owned and private media. This has militated against the media playing its functional role in society. There is need for government and the media sector to deal with this polarisation.

6. Reinforcing Zimbabwe’s Democratisation Process: A Dialogue To Reinforce Engagement • Government commitment towards reinforcing engagement must be buttressed by action on the ground. Government must speak with one voice and have policy consistency which is supported by a coordinated approach towards reengagement. • Whilst international engagement is critical, Zimbabweans must also be in a position to engage with itself through a national dialogue. Local engagement is critical in the development of a common vision and a common message for Zimbabweans predicated on tolerance and accountable governance. • Zimbabwe’s commitment to attracting new investors will be judged according to the manner in which it treats existing investors. As such, a conducive investment

environment for existing investors will be a critical pulling factor to other potential external investors. • In terms of engagement with the global community, there is need for mutual honesty and respect on both sides. If confidence is to be built, there has to be robustness on the part of the international community.

7. Restoring the Social Contract • It is important to change our attitudes towards each other in a way that allows national interests to subordinate our narrow interests. • The Government’s new economic blueprint, ZimAsset, does not mention the issue of the social contract. In this regard, there is need, on the part of government, develop long-term economic blueprints which also enshrine government’s commitment to the social contract. • There is need for the common recognition of depth of crisis in the current situation, characterised by closure of firms, job losses, decline in capacity utilisation and how the same has impacted negatively on the social contract. • Government must develop an institutional framework to define and oversee the social contract which framework must include all stakeholders, government, the private sector and labour.

8. An Agenda for Economic Recovery • The normalisation of Zimbabwe’s relations with international financial institutions should be at the epicentre of the current efforts towards economic stability and growth. • Government should work on improving the investment climate and ease of doing business, implement institutional reforms at the central bank, recapitalize the central bank and increase the capacity to invest particularly in infrastructure. • As investment takes time to build, government should have policy consistency, eradicate ambiguity of messaging, have a commitment to implementing policies and resolve debt overhang as sustained economic recovery will need policy coordination, cohesion and commonality of views. • There is need for government to create a balance between the need to empower locals while at the same time attracting foreign direct investment. In this regard, there is need for a paradigm shift on the part of government in the implementation of the Indigenization and Empowerment regulations. • While the multicurrency policy has brought relief, government should consider adopting the Rand as the preferred currency as trading in the US$ is making the Zimbabwean economy less competitive. • Government should tackle corruption as it is militating against its efforts towards economic growth.

9. Reviving Zimbabwe’s Productive Sectors • Zimbabwe should avoid being locked in resources dependency and focus on increasing productivity of smallholder farms and household enterprises which will increase internal demand for manufacturing and services and push demand for services by informal sector. • Zimbabwe needs to prioritise investment in ICT as a productive sector and as the future of Zimbabwe. • The contribution of the mining sector to the growth of the economy measured against its potential has been dismal. There is need for government to put in place a legislative framework that ensures maximum contribution of the mining sector to the overall growth of the economy. • Policy inconsistency and lack of clarity have impacted negatively on Zimbabwe’s country risk assessment, credit worthiness, ease of doing business resulting in international investors shunning the Zimbabwean economy. • Government should enhance support to the informal sector as a critical productive sector by ensuring access to finance and a conducive operating environment.

10. Mobilising Foreign Direct Investment • Government should put in place an operating environment which attracts foreign direct investment and position Zimbabwe as an investment destination of choice. • Government should consider adopting Special Economic Zones which have become international trend setters for the economic growth. SEZs should be accompanied by government firm commitment and support and generous preferential policies to attract investment. • The Government’s economic policy should be augmented by its foreign policy as complementarity between the two policies is vital for attracting foreign direct investment.

CONCLUSION AND WAY FORWARD The conference concluded that; i. Sapes Trust, as a matter of urgency, convene follow-up meetings to focus on; first, the implementation of the constitution; and second, the economic agenda. ii. Sapes Trust coordinate follow-up think-tanks meetings focusing on discussions around each session of the conference. iii. Sapes Trust continue to work with all stakeholders, that is, government, civil society, the labour movement, the private sector, academia, development organisations, the international community, the church, youth and women organisations in creating platforms to deliberate on the challenges facing Zimbabwe and map the way forward in transcending the same.