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News, Vol. 25, No. 4

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Aluka is a not-for-profit initiative dedicated to creating and preserving a digital archive of materials about and from the developing world. For more information about Aluka, please see http://www.aluka.org Zimbabwe News, Vol. 25, No. 4

Alternative title Zimbabwe News Author/Creator Zimbabwe African National Union Publisher Zimbabwe African National Union (, Zimbabwe) Date 1994-07-00 Resource type Magazines (Periodicals) Language English Subject Coverage (spatial) Zimbabwe, United Kingdom, China Coverage (temporal) 1994 Rights By kind permission of ZANU, the Zimbabwe African National Union Patriotic Front. Description EDITORIAL. LETTERS. NATIONAL NEWS: Government committed to black economic empowerment. Zimbabwe committed to achieving convertibility of Z$. Mining opportunities challenging — Zvobgo. Government to support small holder families. Investment conference a success. Zimbabwe woos British investors. Government to upgrade primary road network. Banking Act to be amended. Mass mobilisation the biggest challenge. New ZANU PF Youth National Council elected. Zimbabwe African National Union PF resolutlons for the Youth Conference 1994. REGIONAL NEWS: New showdowns brewing for South África. Rwanda — A chronology of colonisation and conflict. INTERNATIONAL NEWS: Clinton extends China's MFN status. Bosnia dustbin for a world of dirty politics. The sweet smell of success. Noriega's party wins elections. FEATURE: The rise and fall of Kamuzu Banda. The professor who enjoys linguistic joy-riding. Format extent 52 page(s) (length/size)

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http://www.aluka.org ZANU PF

ZANU PF V. Peace and Development L12

0p Q: ILJ C02 Uw / ' 0 THE NEW $50 NOTE The new $50 banknote will be issued on 14th March. It retains the traditional security features which have been improved and new ones have been introduced to make the note easy to recognise. Look for these five(5) distinctive features :" CHECKLIST FRONT The Zimbabwe Bird Watermark. 2 Two see-through rhinoceroses on either side which are in perfect register. i The security thread with 4 3 32 RBZ50 printed on it. BACK Raised print which can easily be felt by running your nail along it. 5 IN Extra small print which reads 50, 50, 50 ... 2 4 situated to the left of the balancing rocks. The New $50 Note... the convenience of handling money Is now here. Published by R.B.Z. 7th March 1994

Zimbabwe News Official Organ of ZANU PF Contents Editorial: Letters: National News: Regional News: International News: Feature: ...... o. o. . . . .o...... ° ...... °...... 3 Government committed to black economic empowerment ...... 4 Zimbabwe committed to achieving convertibility of Z$ ...... 5 Mining opportunities challenging - Zvobgo ...... 9 Government to support smallholder families ...... 10 Investment conference a success ...... 11 Zimbabwe woos British investors ...... 12 Government to upgrade primary road network ...... 19 Banking Act to be amended ...... 22 Mass mobilisation the biggest challenge ...... 24 New ZANU PF Youth National Council elected ...... 30 Zimbabwe African National Union PF resolutions for the Youth Conference 1994 ...... 31 New showdowns brewing for South ...... 36 Rwanda - A chronology of colonisation and conflict ...... 37 Clinon extends China's MFN status ...... 38 Bosnia dustbin for a world of dirty politics ...... 40 The sweet smell of success ...... 41 Noriega's party wins elections ...... 43 The rise and fall of Kamuzu Banda ...... 45 The professor who enjoys linguistic joy-riding ...... 47 Zimbabwe News is the official Organ of the Zimbabwe African National Union IZANU PF] and is produced on the authority of the Central Committee by the Department of Information and Publicity, Jongwe Printing and Publishing Co., No. 14 Austin Road, Workington, Harare. World Copyright, Central Committee IZANU PF]. Editorial Counc I: Cde. N.M. Shamuyarira Cde. C.C. Chimutengwende Cde. C. Ndhlovu Cde. S. Kachingwe Cde. A. Sikhosana Cde. M. Munyati. ZIMBABWE NEWS VOL: 25 NO. 4, 1994 C CIMMM

EDITORIAL Benefits of organisation The wonderful force of organisation is today making itself felt in every branch of the efforts of the people of Zimbabwe. Whether in society, politics or industry, it is the force of organisation that tells. It was through being well organised with clear, people-oriented objectives, that we today have a country and government of our own. We must, therefore, proceed to see to it that the same degree of organisation is applied in the economic field. Eventually, this means the indigenisation of the economy. For us to win that battle, we must be strong. If we must come together, we can only do so through organisation. The government of Zimbabwe is committed to the economic empowerment of indigenous Zimbabweans who form 96 per cent of the country's population by increasing their participation in the economy at all levels and in all sectors. This is the battle that the people of Zimbabwe are currently involved in and they should aim at winning it. Past experience has taught us that in fighting for the interests of the majority, there will be those who will oppose from within and without. They will do everything possible to distort the justice of the aims and objectives of those efforts. They will criticise every step taken without offering any alternative. They will do everything in their power to try and disorganise the people, discouraging them from pursuing their chosen path. We believe that Zimbabweans who were tempered by the liberation war, drought and many other national disasters cannot be fooled by the designs of the wicked. The wicked among us will always be there. The wicked and unjust have opposed people- oriented reforms under all circumstances. We wish His Excellency, Cde. President Mugabe, his ministers and the business community to continue in the joint efforts aimed at improving our country's economic situation. The workers' organisations which must be kept informed of these economic developments must be encouraged to get better organised and supported in an endeavour to create a healthy, mutually beneficial relationship with the employers' organisations. Let not the prophets of doom disturb the rhythm of collective efforts of the people of Zimbabwe aimed at building a country in which our people enjoy better life. There is no better step towards success in the indigenisation of our economy than being well organised among ourselves. Even foreign investors will in this case feel more confident in their dealings with us. We all stand to benefit from good organisation. .-0 ZIMBABWE NEWS VOL: 25 NO. 4, 1994

Pseudo human rights groups Dear Editor Recent criticisms from some misguided sections of our society, of President Mugabe's call on his Party's youth wing to engage on house to house campaign need to be condemned in the strongest of terms by all progressive Zimbabweans. Some human rights groups were among those who voiced their criticisms of this noble call by His Excellency which was aimed at canvassing support for the Party, from those who feel Party victory is guaranteed even without them voting. This was the tone of the message and he directed it at the youth because of a myriad of reasons. The youths are physically capable of undertaking the exercise. The youth constitute the bulk of the electorate and so they can saliently campaign to their peers. They also are aware that it is their political obligation to campaign for their Party. Those being some of the reasons for the President's call for a door to door campaign, one sees no reason why so much noise is being made by the pseudo human rights groups, opposition parties and some sections of the press. Their real fear is that because of the mass support which ZANU PF enjoys and the electorate's reluctancy to identify with some dubious parties such as Forum and Zum, their attempt to hoodwink the electorate will be foiled by the politically shrewd Youth League. They accuse the Youths of being overzealous and that the exercise would be an invasion of privacy. This would appear as a genuine concern but a close examination of the criticism would reveal the real causes of concern. If they are really concerned about privacy they should tell house owners how best they could treat these youths when they call on them. Suggestions include displaying notices, telling youths that their presence is not required. Some gates have messages which read "No Jehovah's Witness" and religious people know what this means and youths are literate enough to understand such messages and they will direct their efforts on Party supporters only. Cde. Mugabe's door to door campaign message made no mention about perpetrating violence against anti ZANU PF supporters and to suggest otherwise would be putting words into the President's mouth. The fact that we have a multiplicity of frail opposition parties means that ZANU PF tolerates a divergence of views irrespective of their weirdness and suggest that some people would be intimidated and beaten up by the youths is not only distorting the statement but mischievous. The critics of Cde. Mugabe's message who fear that there will be violence, should instead have launched a scathing attack on Tekere's declaration of war in Chitungwiza in April, Ndonga's attacks on ZANU PF members on June 3, unnecessary attacks on the Youth League by the 'Daily Gabbage' and acts of hooliganism by some UZ students who have proved beyond doubt that they are more violent than any other youth group in the country. The pseudo human rights groups and other critics of ZANU PF who claim to be neutral on the political arena have developed a strange knack of attacking ZANU PF political and racial groups. We know that is was not by coincidence that it was at the height of the 1992 drought and the negative repercussions of ESAP that there was a proliferation of "independent papers, human rights groups, forums to "stimulate national debates" and some political parties. Now that the drought is history and the economy is showing signs of recovery, all these organisations have been rendered useless because they can no longer take advantage of the 1992 situation, and hence their pre-occupation with criticising speeches of top ZANU PF officials and poisoning the minds of an electorate which is proving not gulliable to the virulent propaganda of the opposition -press. A successful youth conterence is the last thing these so called human rights groups and their masters in amature politics wanted to see and their criticism is only frustration at the organisational ability of a party that they have failed to subdue. The Youth League being the vanguard of the Party will not pander to the whims of the directionless critics of ZANU PF and will defend the fearless people's Party. If they want to be people's enemies or anti ZANU PF they should come out in the open as the Forums have done and then they will be given relevant treatment. If they do not come out in the open and keep on wearing the human rights masks, the Youth Wing will remove the masks and people like Wilbert Mukori will be exposed. Questions will then be asked if these human rights groups are not being used by frustrated politicians like Mukori to gain some political mileage. If that is the case, a Joker will be thrown since their cards have been seen. "Pamberi neZANU PF" Peter Prosper Gunda Harare ZIMBABWE NEWS VOL: 25 NO. 4, 1994 Government committed to black economic empowerment "Economic empowerment of the indigenous Zimbabweans is necessary for the promotion of long-term political stability and a more harmonious and just society. In addition, the policy of indigenisation is very much in line with our new conceptions of human rights, including the right to development, the right to employment, the right to own property and the right to an adequate standard of living," President Mugabe said. Cde. President R. G. Mugabe he government of Zimbabwe is committed to the economic empowerment of indigenous Zimbabweans, who form some 96 percent of the country's population, by increasing their participation in the economy at all levels and in all sectors. President Robert Mugabe told participants at the recent Confederation of British industry conference on trade and investment in Zimbabwe that the policy of black economic empowerment was necessary for the laying of a strong foundation for the development of a democratic society in which all Zimbabweans equally enjoy, not only political and civil rights, but also economic and social justice. Continuing, he stated that the increase of indigenous private investment in the economy would be achieved through creating conditions that promote the establishment of new enterprises, including joint ventures with non-Zimbabwean investors. Such economic expansion, the President remarked, would create a bigger domestic market for existing and new enterprises, transform Zimbabweans from being predominantly consumers to active producers of goods and services, create new employment opportunities, increase national income and expand the revenue base to sustain social services and provide economic infrastructure. "My government is therefore working out the necessary incentives to encourage our foreign partners to team up with indigenous Zimbabwean entrepreneurs in setting up the new manufacturing industries. I believe foreign investment is crucial in providing President Mugabe (standing right) addressing the CBI conference in London Cde. Mugabe chatting to Queen Elizabeth 11 and Prince Phillip the necessary capital for importation of the required machinery and equipment, the embodied technology and production know-how, providing scope for expanded external markets, as well as providing new managerial expertise." Cde. Mugabe ensured the participants of his government's commitment to the protection of individual property rights and to the maintenance of Zimbabwe's international obligations. The country had signed investment protection agreements with a number of countries whose nationals wish to invest in Zimbabwe in order to protect the rights of individual investors. Cde. Mugabe noted that the British, with investments estimated at about 400 million pounds sterling, still remain Zimbabwe's largest foreign investors. He said the two countries had strong cultural and econoric relations that should be cemented by increased investments. "British investments in Zimbabwe have remained crucial to the development ofthe country. The British people have been associated with Zimbabwe for a century, and I believe they have goodwill to see the country succeed. The British should therefore be our ambassadors to the rest of Europe and the developed world." He told the conference that Zimbabwe had taken measures to move away from a highly regulated economy to one where market forces are allowed to play a more decisive role. "The strategy is intended to enhance the role of the private sector as the.engine of growth in Continued on page 5 ZIMBABWE NEWS VOL: 25 NO. 4, 1994 iimrnbabwe is firmly committed to achieving convertibility of the Zimbabwe dollar by the end of the economic reform programme, the Senior Minister of Finance, Economic Planning and Development, Dr. Bernard Chidzero has said. Addressing the London trade and investment conference on Zimbabwe in Britain in May, Dr. Chidzero said in line with the Economic Structural Adjustment Programme in this area, Zimbabwe has moved nearly 85 percent "of our current account transactions to the market system." "To facilitate this, we have created an inter-bank. market system where foreign exchange is sourced for the transactions at a market determined rate. The Reserve Bank is now no longer involved in the fixing of the rates. Their role is now confined to frequent intervention Continued from page 4 the econdmy while government creates the necessary environment for investment." The govertment has also made significant changes to the economy to attract both local Ind foriegn investors. These initiativess can be seen in the areas of taxation, trade policy, exchange control liberalisation and economic deregulation. President Mugabe said the government was however aware of the problem of a high budget deficit which has necessitated borrowing on the domestic market with the tendency to crowd-out the private sector. "To address the situation, my government is continuing to implement fiscal and other measures directed at reducing government expenditure and the size of the budget deficit." Turning to the land policy, President Mugabe told the participants that the essence of the policy was to effect a more equitable distribution of agricultural land. He said the majority of the Zim- on the market for stabilisation purposes in the case of exogenous shocks which would adversely disrupt the market," he stated. Dr. Chidzero noted that once full convertibility on the current account has been achieved by the end of the programme, government will work at introducing convertibility on the capital account. Below is the full text: "Mr Chairman, Ladies and Gentlemen. I wish to express sincere appreciation to the organisers of this conference for affording us the opportunity to talk to you today about our country and the opportunities it offers. My statement is by way of providing some technical information or additional details in the context of the statement already made by His Excellency the President of Zimbabwe, which is the key policy statement, in light of sec- babwean population was still rural and the rate of population growth was still high. "To reverse a major urban drift of our population and the attendant problems that this has brought about, it is essential that opportunities to make a living on agriculture are created. "It is the view of my government that this is important in maintaining Zimbabwe's enviable reputation for political and social stability since independence. I am inviting any and all of you to visit Zimbabwe to gain an appreciation of the problems we face and of the critical need for land reform. To ensure effectiveness of the land reform policy, my government has also .set up the Land Tenure Commission whose task is to come up with appropriate land tenure systems for our people," he explained. Cde. Mugabe concluded his address by extending a warm invitation to investors to come to Zimbabwe and expressed hope that the reforms taldng place in the country would add confidence to those investors already in Zimbabwe. E Dr. Bernard Chidzero toral papers presented at this conference. 1. Zimbabwe is a country endowed with a variety of natural resources as well as human resources which create a great potential for the growth of the productive sector and sustained economic development. The first decade of Zimbabwe's independence saw the government concentrate on redressing past distortions in development and the provision of essential services especially in education, health and rural infrastructure. 2. University education has been provided both at home and abroad. Zimbabwe now has three universities, and a fourth one to be set up shortly. These, combined with the several technical institutions, give the country a highly skilled manpower base which can quickly adjust to new technologies, production systems and management techniques. 3. It became dear in the late 1980's that the economy could not sustain the investment made in education and health without a sustainable higher rate of economic growth. This led to the adoption of the Economic Reform Programme which we started to implement in 1991. The essence of the reforms was to dismantle the controls and regulations which the economy had been subjected to for over twenty-five years and to introduce a more market based, competitive economic Continued on page 6 ZIMBABWE NEWS VOL: 25 NO. 4, 1994 Government committed to black economic empowerment N iona l CN Zimbabwe committed to achieving convertibility of $ Continued from page 5 environiment. It is this open, competitive, market determined environment which is conducive to increased investment in the productive sectors of the economy especially in mining, manufacturing and in agro-industry where our growth potential is virtually unlimited. Recent Economic Developments 4. After growing at 4.9 percent in real terms in 1991, the first year of our reform programme, Zimbabwe's economy suffered a devastating drought in 1992 where the economy declined by 8 percent in real terms. The balance of payments position deteriorated recording a current account deficit of 17 percent in 1992. The overall budget deficit for 1992/93 turned out to be 11.2 percent of Gross Domestic Product (GDP). Our people mounted orderly, sustained and heroic efforts in this regard, but our sincere thanks also go to the donor community, including the British, who generously stood by our side and helped us go through the difficult period. 5. In 1993 we saw the recovery of the economy with GDP growing at 2.2 percent. The recovery was driven by agriculture which grew by 35 percent but the lagged effects of 1992 remained in the manufacturing and mining sectors which experienced negative growth rates in 1993. Our balance of payments position improved with more liberalisation on the, trade regime contributing to a reduced balance of payments current account deficit which was 15 percent in 1993. The rate of inflation declined tremendously to 18.6 percent in December 1993, from a peak of 49 percent in August 1992. Government is taking all possible steps to ensure that the decline in inflation is sustainable by ensuring that only essential activities are funded without negating the gains made in education and health. 6. Economic policies and government expenditures are therefore being managed in such a way that the gains made in education, health and rural development are supported on a sustainable basis through more investment in the productive sectors of the economy. It is government's objective to reduce its expenditures to about 35 percent of During the CBI London conference, the Queen hosted a dinner which was attended by President Mugabe (centre), Prince Phillip (right) and the Minister of Foreign Affairs, Cde. Nathan Shamuyarira among others GDP with revenues of about 30- 32 percent of GDP. This approach will release more resources to the private sector for investment at affordable rates of interest. 7. Government policy on parastatals is that these should operate efficiently on commercial lines with a view to privatisation. Work is currently underway to transform these institutions into viable commercial operations. This transformation entails giving the parastatal management and boards autonomy in the day to day running of the enterprises including privatisation where necessary. 8. We are now in the fourth year of our structural adjustment programme whose essence is to increase real incomes through higher levels of investment and ecomonic growth. Government's role is changing from direct participation in the economic sectors, to the provision of infrastructure and the creation of a conducive environment for the private sector to operate in. This is in view of Government's recognition of the pivotal role of the private sector as the engine for growth. 9. While the budget deficit continues to be high and crowds out the private sector on the money market, Government is continuing the implementation of fiscal reform measures intended to reduce this deficit. These include among others, parastatal reform to reduce this sector's reliance on the fiscus, civil service reform to reduce the civil service wage bill, and the introduction of cost recovery measures to ensure that services provided by Government are paid for. Collectively, these measures -will reduce Government expenditure and hence the need to borrow on the market, thus releasing resources for use by the private sector. 10. Infrastructure - Telecommunication and Power While telecommunication and power are well developed, lately there have come under increasing pressure to provide efficient services to new industries. To facilitate this, the Post and Telecommunication has embarked on major expansion programmes. This is an extremely important matter. In particular this includes the digitalisation project which has already substantially increased the number of lines available to industry and the public. The issue of a cellular phone network is important to increase communication capacity. This matter is seriously being considered because Government is committed to the provision of an efficient communiContinued on page 7 ZIMBABWE NEWS VOL: 25 NO. 4, 1994

Zimbabwe commit Continued from page 6 cation system. Similarly, our power authority is also undertaking major expansion of its generation, transmission and distribution facilities to meet the new demand for power arising from new investments. These essential infrastructural investments are also geared towards improving the efficiency of these two parastatals for successful commercialisation. 11. Dividend Remittance The continued difference in the treatment of old and new investors is a function of our balance of payments problems. However, as part of our reform, to attract investment we are now guaranteeing 100 percent dividend remittance for all new investments with no restrictions on capital repatriation except for normal taxation provisions. The old investors who sustained our economy through the difficult period but were still pegged at the 25 percent level were elevated to 50 percent in December 1993. The situation is being reviewed in line with our balance of payments with the objective of raising the dividend levels to eliminate the differential treatment between old and new investors. 12. Capital Repatriation As we proceed with our reform programme the issue of capital repatriation is being reviewed to ensure that full liberalisation is achieved. As His Excellency the President has already indicated, we are committed to addressing the problems of the old investors as we are aware that growth can quickly be achieved through the expansion of existing investments. Existing investors are our best ambassadors in sourcing new foreign investment as they have a clear perception of the investment climate in Zimbabwe. 13. Access to foreign exchange Before we embarked on the reform programme, foreign currency was a critical problem frustrating investment and growth. We have successfully addressed this issue under trade liberalisation, another element of the reform programme. From the Open General Import Licence and Export Retention Schemes, we introduced in Decem- ted to achieving co ber, 1993, foreign currency accounts (FCA) for corporate bodies where 60 percent of export proceeds in cash are credited to those accounts with the balance 40 percent being sold to the Central Bank. Funds in these accounts can be used for almost all imports save for a short negative list. The system has virtually removed all the bureaucratic problems associated with the licensing system. (Details will be provided by the Governor in his presentation.) 14. Blocked Funds Blocked funds were a product of the UDI and also our limited dividend remittance policy, but the system now in place has eliminated the creation of new blocked funds. We are aware of the limited options available for armotising these funds. In line with our liberalisation of exchange controls, we are currently considering a number of options to release these funds over shorter periods. 15. ConvertibilIty of the Zimbabwe Dollar When we embarked on our reform programme, one of our targets was to achieve convertibility on the current account by the end of the programme. Government still remains firmly committed to realising this objective. In line with our programme in this area, we have to date moved nearly 85 percent of our current account transactions to the market system. To facilitate this we have created an inter-bank market system where foreign exchange is sourced for the above transactions at a market determined rates. The Reserve Bank is now no longer involved in the fixing of the rates. Their role is now confined to infrequent intervention on the market for stabilisation purposes in the case of exogenous shocks which would adversely disrupt the market. Once full convertibility on the current account has been achieved by the end of the programme, we will work at introducing convertibility on the capital account. 16. Taxation In the area of taxation, both individual and company tax-levels have been reduced since the start of the reform programme. The tax level for individuals has been sub- ZIMBABWE NEWS VOL: 25 NO. 4, 1994 nvertibility of Z$ stantially improved wnile nominal corporate tax was reduced to 40 percent from April 1994. The effective tax rate is however lower when all tax concessions are taken into account, especially for new companies. Our objective is to have attractive corporate rates of taxation and personal rates which allow for greater investible surpluses with a significant boost to domestic demand. To promote indigenisation and joint ventures, for investors establishing themselves in Growth Points, the tax rate is only 10 percent for the first five years. Further, capital expenditure allowances are tax deductible. For capital goods imports, the import tax and surtax are exempted such that the only levy payable is customs duty which is generally very low. Most of the tarriffs are being adjusted so that they lie within 0- 30 percent band. Where protection is required, the tarriff system can be used to afford such protection especially in cases of infant investment. 17. The Zimbabwe Stock Exchange In April 1993 we introduced foreign investment on the Stock Exchange subject to the limits of 25 percent of the shares on offer and five percent per individual investor. We are aware of the immense interest this initiative has generated as well as the representations we have had from our own people and a number of Investment Funds on the need to improve this facility further. Work is underway to see how the role of the Stock Exchange could be expanded to increase the mobilisation of more resources for our industry. Further liberalisation of investment on the Stock Exchange will build up investor confidence and enable the institutional investors to invest directly in productive sectors of the economy. The Government of Zimbabwe is totally committed to the creation of an environment in which the private sector takes a leading role in spearheading productive investment and growth. British investors are, therefore, an essential part of our effort to expand growth." [AdvrieI h ~imbabNiw e News fo godreut I Nalion ll Nc\N"

* A. ---I '~ *,~ wnON ON m 'Emm1a.bA LTD Shipping, Clearing and Forwarding Agents 57 FIfe Avenue P.O. Box 250 Harem Zimbobwe !f you are importing or exporting, whether by sea, air rail and road you need an agent that is reliable, Airland freight, with a team of dedicated, highly trained protessionals who are fast on their feet, are totally committed to service. We have offices in Harare and Beitbridge and plans to start up in Plumtree are under way Airland Freight are represented in South Africa and overseas and works closely with and Affretair PERSONAL ATTENTION AND GRACIOUS SERVICE IS AN ANCIENT TRADITION AT AIR[_AND For all your cargo requirements contact us on the following Telephones: 79315415 or 79185617 Fax: 702544 Telex: 24787 ZW and we will go to the ends of the earth to give you world-class service ZIMBABWE NEWS VOL: 25 NO. 4.1994 ~.il _ -...... 7

Mining opportunities challenging-- Zvobgo he Zimbabwean government is very supportive to the mining industry by way of provision of various technical services and financial assistance particularly to small and medium scale miners. Referring to investment opportunities in the mining sector in Zimbabwe as really challenging, the Minister of Mines, Dr. Eddison Zvobgo, told participants to the recent conference on trade and investment in Zimbabwe held in London, that the geology of the country was very favourable for the production of several significant mineral deposits. He also noted that the infrastructural development was second to none in Africa with well developed roads, rail, air, telecommunication and electrical power services. In addition to these, all mining activities are conducted under the Mines and Minerals Act which ensures security of tenure from exploration through to mining and production. babwe as a result of the introduction of favourable incentives after the implementation of the Economic Structural Adjustment Programme in 1990. He said in 1990, 54 applications for new Exclusive Prospecting Orders (EPO) were submitted. This was followed by 74 in 1991, 62 in 1992 and 120 in 1993. By the end of 1993, there were 131 EPO's which were current compared with 75 in 1992. "This is a record in the history of mineral exploration in Zimbabwe. Of the 131 current EPO's 98 are for and the rest for and base metals this is no doubt indicates that we are witnessing a rush in Zimbabwe at present." The minister told the conference that the notable activities of significance are the development of the first platinum by a joint venture between BHP Minerals and Delta Gold of which a feasibility study was completed last year. Development work is now in progress and production of platinoids is expected to start in 1995. Dr. Zvobgo said that there has been an "Another project is the Sanyati Copperupsurge in mineral exploration in Zim- lead-zinc deposit which is being jointly The geology of Zimbabwe is very favourable for the production of several significant mining deposits Dr. Eddison Zvobgo developed by Reunion Mining and the Zimbabwe Minerals Development Corporation." Dr. Zvobgo stated that in order to cope with demands of current and future activities his Ministry was in the process of setting up a mineral resources data management system which would enable easy storage and retrieval of data through any of the regional offices in the country. "This system will initially involve the redrafting of mining claims maps and producing microfiche of all information on mining claims which will be made available to all our offices. The data will then be accessible to investors and other users at any office without the needto travel to the individual district office in which the claim is located. Eventually, this will lead to a computer system which will link all our offices on mineral information," he explained. The minister said the mining industry in Zimbabwe was a very significant sector in the economy in that it earns nearly 45 percent of foreign currency; about 40 percent of manufacturing industry's raw materials and in turn consumes about 30 percent of that industry's products. The sector contributes 7 percent of GDP with a total output of Z$3 billion in 1993 and provides employment to 55 000 people and therefore sustains the lives of nearly 250 000 people when dependants of the miners are taken into account. He said the main minerals produced indude gold, asbestos, ferrochrome, nickel, , tin, lithium minerals, , . The first production of diamonds took place in 1992. El ZIMBABWE NEWS VOL: 25 NO. 4, 1994 LN

Cde. Kumbirai Kangai oting that the small holder sector is a vulnerable group because of its poor resource base, the Minister of Lands, Agriculture and Water Development, Cde. Kumbirai Kangai, has said that it is the paramount task of government to address this income and poverty problem by providing small holder families with the necessary opportunities to produce and survive. Addressing the trade and investment conference organised by the Confederation of British Industry and the Confederation of Zimbabwe Industries in London, Britain from 18-20 May, 1994, Cde. Kangai said in order to address the income problem and achieve a more equitable distribution of land, the government is undertaking a major land resettlement programme. "It should be noted that our land resettlement programme has experienced problems because most of the land available for resettlement is in marginal Government to support .smallholder families areas and in small scattered parcels which makes the provision of public services, such as roads, clinics and schools uneconomic because of the low population density," he said. He told the conference that Government has established land identification and selection committees in each province to identify land that can be purchased for resettlement. The committees are composed of representatives from the large scale commercial, the small holder farmers, agricultural extension officers, local government representatives and environmental expert. Cde. Kangai stated: "it is generally accepted that there is an urgent need to deal with the problem of overcrowding in the communal farming areas if the economy is to develop, without jeopardising environmental sustainability. A Land Tenure Commission was established whose primary purpose is to recommend the most sustainable tenure system for Zimbabwe. The findings of the Commission will provide a valuable input for future policy decisions by government on land tenure." He said that there is significant potential for investment in the agricultural sector especially in the manufacturing of farm inputs and in the production, marketing and processing of horticultural products. "Zimbabwe is capable to produce a very Zimbabwe's agricultural sector has significant investment potential in the marketing and processing of agricultural products as well as the manufacture of inputs wide range of agricultural products bocause of its sub-tropical climate. With the recent policy of trade liberalisation, the existing agro-industries and agricultural marketing boards are starting to undertake a wide range of joint ventures with foreign investors. Potential joint ventures exist in the manufacture of grain bags, cotton lint processing, meat and dairy processing and many others. "With regard to trade, the domestic marketing of agricultural products has been totally liberalised. Current arrangements on agricultural exports are designed primarily at ensuring food security. A permit system is used to monitor the health standards of all exports in order to ensure that the phytosanitary requirements of the countries in which we market our products are fully complied with," he said. He informed the delegates that Zimbabwe's economic reform programme Was embarked upon in 1990 and is designed to change the management of the economy by moving from a highly regulated environment to one where market forces play a decisive role. It is to be implemented over a five-year period. A major feature of the reform programme is the deregulation of the agricultural sector to facilitate private sector investment. The minister acknowledged that significant progress has been made in the deregulation of the agricultural sector over the past three years. Agricultural marketing boards which have dominated the marketing of agricultural products since the 1930s are currently going through a process of major reform. The general thrust of this reform, he noted, is to allow private sector participation in the marketing of agricultural commodities that were previously controlled by government. The marketing boards directly involved in the marketing and handling of agricultural products are the Dairy Marketing Board (DMB), the Cold Storage Commission (CSC), the Cotton Marketing Board (CMB), and the Grain Marketing Board (GMB). These boards used to have exclusive monopolies in the marketing of their Continued on page 11 ZIMBABWE NEWS VOL: 25 NO. 4, 1994

Investment conference a success iving his impression of the Conferederation of British Industry (CBI) conference on Zimbabwe trade and investment held in May 1994, the Deputy Minister of Industry and Commerce, Cde. Simon Moyo, has described the event as a great success. "The fact that it was over subscribed is a clear indication of the confidence investors and would-be investors in the United Kingdom and Europe have in Zimbabwe. This is enhanced by the charisma and statesmanship embodied in His Excellency President Robert G. Mugabe's personality and the abundant political peace and stability the country enjoys under his wise and tested leadership," the deputy minister explained. He described the success of the conference as a challenge to all Zimbabweans and stressed that the momentum must not be lost. "In military language 'a hot pursuit' strategy must be instituted to ensure that the goodwill cultivated at the London Conference does not evaporate unexplained." Cde. Moyo, however, noted that whilst the current investment incentives in line with the economic reform programme Zimbabwe lost thousands of cattle during the drought Continued from page 10 respective products but this monopoly has been removed and the boards can now compete with private enterprises in both the buying and selling of agricul. tural products. Cde. S.K. Moyo were appealing to would-be investors, there was need to address issues pertaining to duty drawbacks, individual and corporate taxes as well as export incentives. He also pointed out that the fact that two trade delegations from the UK were coming to Zimbabwe following the London Conference and that the Director General of the CBI, Mr. Howard Davies, was expected to give the keynote ad- "While our commitment to the reform programme has been strengthened as we progress from one year to the next, the 1991/92 drought year has had very serious adverse effects on our plans. Total agricultural production declined by more than 50 percent during the drought period and the country had to import over two million tonnes of grain with severe adverse effects on the balance of payments situation. In 1993, the agricultural sector experienced a notable recovery as a result of a more reasonable rainfall season," he said. He explained that the agricultural industry in Zimbabwe consists of a small holder sector with approximately 1.2 million farm families and a large scale commercial sector with about 4 500 farm units. Agriculture, he added, plays a key role in the development of the economy because it earns about half of the country's earnings, provides the livelihood of 70 percent of the population and contributes about 14 percent to the Gross Domestic Product. 0 dress at this year's CZI congress is further testimony of the confidence bestowed on Zimbabwe by the outside world. In his address during the conference, Cde. Moyo said Zimbabwe had a relatively well developed and diversified manufacturing base, characterised by its strong linkages with the other two major productive sectors of the economy, agriculture and mining. The manufacturing sector, he told the meeting, contributes about 25 percent to Gross Domestic Product (GDP) and about 30 percent of export earnings. "It is the largest employer of labour after agriculture, accounting for approximately 16 percent of total formal employment and 25 percent of national wage bill. "In our assessment, the Zimbabwe manufacturing sector offers a unique opportunity for foreign participation. Zimbabwe has limited resources to undertake the considerable rehabilitation and modernisation that is required in the sector both from a financial and technological point of view." To encourage exports, the deputy minister said a bill establishing the Export Processing Zone Authority, was due for consideration by Parliament this calendar year. The Export Processing Zone Authority will come up with a regime that accords special treatment for producers whose output is mainly for export. He also revealed that plans were at an advanced stage to establish a Competition Commission which will ensure that the business environment was truly free by breaking the monopolistic structures that were nurtured by the old protective environment. "The tariff regime is also under review to ensure that while reasonable protection is afforded to infant industries and industries going through time bound restructuring and modernisation programmes, tariffs do not become a source of protection for the inefficient," he told the conference and added that entrepreneurial development of the indigenous population was being undertaken with a view to ensuring a wide participation of the population in economic activities, which, besides ensuring long term social and political stability, creates a more dynamic economic environment. 0 ZIMBABWE'NEWS VOL: 25 NO. 4, 1994 Government to support smallholder families

Zimbabwe woos British investors By Our Economic Correspondent Cde. President Robert Gabriel Mugabe officially opened the London conference on trade and investment in Zimbabwe here was a sharp exchange 16f views and experiences between about 100 British businessmen and many Zimbabwean government ministers as well as businessmen from Zimbabwe in London on Thursday, May 18, 1994. This was at a Trade and Investment Conference called jointly by the Confederation of British Industries (CBI), and the Confederation of Zimbabwe Industries (CZI). The conference was opened by the President of Zimbabwe, Cde. Robert Gabriel Mugabe, and the Minister of Trade in Britain, Mr. Michael Heseltine. The President and Mr. Heseltine both stressed that Zimbabwe had created a favourable climate for investment by British businessmen. The Economic Structural Adjustment Programme (ESAP) had removed many of the constraints and restrictions of the past. Zimbabwe was now ready to receive foreign investment, they said. In the one-day conference, a large number of issues that worried British businessmen were discussed. Below, we summarise some of the questions that were raised, and the answers given by Zimbabweans: Question 1: 1 understand that a great deal has been done in the last 18 months or so to improve the climate for foreign investment in Zimbabwe. I believe that the investment "product" that Zimbabwe now offers is substantially better than that offered at the last Zimbabwe investment conference held in London. But how does this new " roduct" compete on the open market? Would I receive greater benefit if I were to invest in Zimbabwe rather than in the Far East? Indeed, would I be better off if I were to invest in Zimbabwe instead of, say, Botswana, South Africa, Tunisia, Mauritius or Egypt? Answer: First let me review the measures we have taken since the last investment conference we held in London. On December 31, a far reaching set of measures liberalising the foreign exchange market were announced. These measures, which took a great step towards our ultimate objective of convertibility for the Zimbabwe dollar, abolished import licensing and the foreign exchange allocation system and the comprehensive pre-shipment inspection scheme, created a free market for foreign exchange, and eliminated export surrender requirements for 60 percent of export proceeds. At the same time, we abolished restrictions on the use of surplus funds, further relaxed limits on dividend remittance on pre- independence investments and relaxed offshore bor- ZIMBABWE NEWS VOL: 25 NO. 4, 1994 rowing controls. These actions reflect our strong commitment to creating a liberal climate for trade and investment. Would an investor be better off investing in some other country? Let us remember that government policies represent but a small part of what makes a country attractive to foreign investment. Zimbabwe is well endowed with resources and is situated in a growing regional market. We have a well educated workforce with a strong work ethic and high productivity relative to wage levels. Zimbabwe is a stable country with harmonious relations among its people. Compared to many of our neighbours - and in fact many much more developed counties - we have minimal security problems. While we have experienced problems of fiscal imbalance during the difficult drought years, my government is committed to restoring -a low deficit, price stability and expanding markets. We have a well developed business sector - particularly as regards financial and business services, and we have a substantial industrial base to build upon. Our physical infrastructure is improving steadily, and we hope to make great strides In the provision of services to the private sector as our parastatal reform programme takes root. This said, I think that the actions we have taken since the inception of ESAP have been important in creating a welcoming policy environment for foreign investment to complement the material and human attractions of our country. Question 2: Will the discrimination against pre-1979 investors be removed? When will these investors be allowed to remit 100 percent of declared dividend? Answer: The discrimination will definitely be removed as government recognises that free remittability of dividends and profits as well as disinvestment proceeds is an important consideration for all foreign investors. The issue of allowing pre-1979 investors 100 percent dividend remittability rights is currently under review and as has previously been stated is dependent on the Balance of Payments position. Question 3: Is the government of ZimContinued on page 13.

Zimbpbwe woos British investors Continued from page 12_Mbabwe willing to sign an ivestnent protection agreement with the British government, and if so, when is this go[ ing to happen? Answer. The Government of Zimbabwe is committed to the protection of individual property rights and to the maintenance of Zimbabwe's international obligations. The government has signed investment protection agreements with a number of countries whose nationals wish to invest in Zimbabwe. The negotiations on the Bilateral Investment Promotion and Protection Agreement between Zimbabwe and the United Kingdom have reached an advanced stage. We hope the agreement will be signed in the near future after the details are finabsed. Question 4: Can an investor bring into the country the skilled personnel from outside Zimbabwe that his enterprise may require? We are told that it is very hard for expatriate workers 4, be given work permits or immigration papers. Is this so? Answer: Skills can be easily imported into Zimbabwe provided such skills are not available in Zimbabwe. However, these skilled people must apply and obtain temporary employment permits. Permits for such personnel are issued by the Department of Immigration upon application by the company provided qualifications of the applicants justify the need. Such permits are normally issued for two years renewable for a further three years. In normal circumstances where all documentation is provided the process takes 5 - 6 weeks. To facilitate the speedy issuance of the advised skill requirement the investor will state that on the investment form issued by the Zimbabwe Investment Centre. Question 5: We hear that the population of Zimbabwe is relatively well educated to secondary level. Does Zimbabwe have the capacity to train people in the skills that will be needed by industry if the economy takes off? Answer: Zimbabwe has made significant investments into education. The country also has the capacity to train people in the various skills needed as the economy takes off. Principally, education and training policies of the decade 1980 to 1990 constituted a significant element of the government's empowerment programmes. The policies were an important part of intervention strategies Queen Elizabeth II (left) introducing President Mugabe to British officials while on his state visit to that country by government to establish mechanisms for the equitable distribution of wealth. Thus the country has not only made significant investment in improving education and literacy level, the technical colleges were expanded and the university increased its enrolment. The country has eight technical colleges and three universities. The share of the budget allocated to education reached a peak of 20 percent of government spending in 1990/91, allowing an almost threefold expansion in primary and secondary school enrolment. In 1992, 35 percent of total enrolment at the technical colleges was in Business Studies, followed by Mechanical Engineering (13.07 %), Secretarial Studies (12.7%), Automotive Engineering (11.9%) and Electrical Engineering (8.34). In addition universities are all producing over 6 000 students from the various faculties annually. Question 6: How is it envisaged that foreign investment will be able to run parallel to the indigenisation of the economy? Answer: The concept of indigenisation should not pose a threat to both old and new investors. What government aims to do under this policy is to integrate the predominantly black indigenous sector into the mainstream of the economy. This will be achieved by affirmative action by the government which entails among other things the provision of credit facilities to this sector as well as entrepreneurial and managerial training to develop the business acumen among the indigenous people. The training will ensure that our people are able to come up with new projects which promote growth in the economy and provide new employment opportunities. Rather than achieving indigenisation from existing enterprises, the new indigenous entrepreneurs will act as sub-contractors to the established industries thereby gaining a foothold in the economy. The role of foreign investment in promoting indigenisation is essential in that foreign investment can bring in new technology, new production systems and new management techniques which the indigenous can be exposed to and therefore develop their own enterprises or go into joint ventures with the foreign investors. Question 7: In the Zimbabwe Investment Centre Act certain unspecified sectors of the Zimbabwe economy are reserved for local investors. Which are these sectors? Answer Investment sectors reserved for locals are those that do not require massive capital outlays and are easy to run such as primary production of food and cash crops, game, wildlife, ranching and livestock, poultry farming, transportation (excluding airways) retailing, Continued on page 14 ZIMBABWE NEWS VOL: 25 NO. 4, 1994

Zimbabwe woos British investors Continued from page 13 wholesaling, and minor services such as hairdressing, photocopying employment and estate agencies. However, it should be noted that these are not completely closed to foreigners. Foreign investors can have minority shareholding in these ventures up to a maximum of 25% shareholding. If an investor takes up residency the restrictions fall away. Question 8: The Land Acquisition Act refers to any property and not just "agricultural land". Does this mean that the provisions of the Act could be extended to property and land used in industries and commerce? Answer. The Land Acquisition Act, 1992 No.3 empowers the President and other authorities to acquire LAND AND OTHER IMMOVABLE PROPERTY compulsorily in certain circumstances. In this case: i) "LAND" includes: a) anything permanently attached to or growing on land; and b) any interest or right in land; ii) "PIECE OF LAND" means a piece of land registered as a separate entity in a Deeds Registry, and includes anything permanently attached to or growing on land and any interest or right in land; iii) "RURAL LAND" means any land other than land which is; a) Communal Land or b) in a municipal area, town area or local government area c) in a town, ward of a rural land district council or an area declared to be a specified area in terms of the Rural District Council Act, 1988 (No. 8 of 1988); or d) in the designated area of a rural council area as defined in the Rural councils Act (Chapter 211); or e) in the area of any township as defined in the Land Survey Act (Chapter 147); or f) State land the layout of which has been approved in terms of section 44 of the Regional Town and Country Planning Act, 1976 (No. 22 of 1976) or g) State land specified in the Third Schedule to the Agricultural Development Authority Act (Chapter 100); iv) OTHER IMMOVABLE PROPERTY means building and other improvements to, in this case, property and land used in industry and corn- merce is excluded trom the provisions of the Land Acquisition Act since it falls under the Urban Councils Act. Question 9: It has recently been suggested that the policy whereby any land can be compulsorily acquired by Government should be extended to apply to industries and business. Is this the Government's intention? Answer: As indicated in the answer to Question 10 the same applies to Question II Question 10: It has been stated that insurance companies are to be localised. Does this mean that this sector is no longer open to foreign investors? Answer: This sector is open to foreign investors who are prepared to invest in partnership with local investors. Government would wish to see increased participation of local investors in this sector in order to assist in creating a more stable socio-political environment. Question 11: It is always our understanding that the land being "designated" that is being compusorily acquired by Government is for distribution to the landless poor. is it true that a substantial amount of this designated land has been allocated to senior Government officials and politicians. Answer: It is true that the land being designated is for distribution to the landless poor. However it is not true that a substantial amount of this designated land has been allocated to senior government officials and politicians. Only one measuring 1 232 hectares had been leased to senior official temporarily pending completion of plans for resettling the farm by the responsible Ministry. The situation has since been reversed by withdrawing the offer of lease and this farm has now been handed back to the responsible Ministry for resettlement. Question 12: In a recent issue of the Economist magazine the problem of AIDS in Zimbabwe was highlighted. Is AIDS a threat to investment in Zimbabwe. Answer: There has been a rapid increase of AIDS cases since 1987 when a system for routine reporting of AIDS was established. From 119 in 1987 the total cumulative of reported persons with full blown AIDS has reached 27 905 as of end of December 1993. In the absence of a vaccine against and cure for HIV/AIDS the only weapon available is prevention. Although more than 90 percent of the 15-49 years old may be aware of HIV/AIDS as a result of The education and awareness campaign, to date efforts are being undertaken to sustain awareness and motivate safe sexual practices among both the general public and specific target groups. A five-year (1994-1998) multisectoral plan for AIDS/STD prevention, control and care has been developed by the National AIDS Co-ordinating Programme in collaboration with nongovernmental organisations and the private sector. Question 13: Many believe that blocked funds outlived their usefulness. What does government intend to do with these? Answer: The release of blocked funds is subject primarily to budgetary considerations (since government has already utilised these funds and would therefore have to make budgetary allocations for their release) as well as Balance of Payments considerations. The issue of releasing blocked funds is currently under review, in particular the 12-year 4 percent bonds which relate to individuals. Question 14: Customs and Immigration Departments in Zimbabwe have been singled out as bureaucratic, rude and outright inhibiting to business travellers. What is being done to address this situation? Answer: Customs and Immigration officers undergo training in dealing with the public. They are therefore expected to be courteous in the discharge of their duties. However, there have been some reports of unbecoming behaviour from some officers. It is unfortunate that bad behaviour by a few individuals tarnishes the image of the whole department. Efforts will be made to identify the culprits and take appropriate disciplinary measures. Problems of bureaucracy were to some extent, caused by the controls we had on the movement of goods. Those controls have been relaxed and we expect Customs and Immigration officers to execute their duties more expeditiously. Question 15: Is the government considering further deregulation of the Stock Exchange and what has been done to clear the confusion caused by the statement made on December 31. Continued on page 15 ZIMBABWE NEWS VOL: 25 NO. 4, 1994

Zimbabwe woos British investors President R. G. Mugabe (right) pictured with British Prime Minister, Mr. John Major Continued from page 14 Answer: In May, 1993 government introduced far-reaching measures permitting foreign investors to purchase up to 25 percent of the equity of any company listed on the Stock Exchange with a single investor acquiring a maximum of 5 percent of the shares on offer. When government, on 31 st December, 1993, raised the threshhold from 25 percent to 35 percent of the equity of any company listed on the Zimbabwe Stock Exchange, it became apparent that a number of companies would be prejudiced by this move. Consequently, government reverted to the original 25 percent equity threshhold. As part of the on-going process of improving the investment climate government is willing to consider further deregulation of the Zimbabwe Stock Ex, change. in this regard, it is worth noting that, in response to the measures instituted by government, the Zimbabwe Stock Exchange was in 1993 the world's fourth best performer, after having been rated the worst performer in 1992 by the International Finance Corporation. Question 16: When is exchange control to be completely abolished? Answer: In line with the economic reform programme, government is committed by the end of 1995 to remove all exchange control restrictions on current account transactions. The sustainability of the Balance of Payments will determine the pace of liberalisation of the capital account. It remains government's overriding objective to establish an efficient market economy which allows free movement of the factors of production. Question 17: We hear that Zimbabwe has one of the highest tax rates in the world. If so, what is being done to make it more reasonable? Related to this, the budget deficit in Zimbabwe is said to be the single major factor inhibiting economic growth. Is the government able to reduce the deficit? Answer: Nominal tax rates in Zimbabwe are indeed fairly high. However, when one takes into account the numerous allowances and deductions which are provided, one will find that effective rates are much lower. Making comparisons on the basis of nominal rates only can therefore be misleading. We have been reducing taxes in the last three years. We have also programmed further reductions and rationalisation of our tax system. Rationalisation on the tax system entails re-examining the allowances deductions and widening the tax base so a§ to enable further reductions in nominal rates. By increasing the number of transactions which are liable to sales tax we have to some extent been able to broaden out tax base. Tax reduction has to be linked to expenditure reduction so as to avoid an unsustainable budget deficit. Measures are being taken to reduce government expenditure. The major targets for this reduction have been public enterprises and the civil service. Public enterprises are being rationalised to enable them to be more efficient and reduce their dependence on government. Through the abolishment of some posts and the provision of voluntary retirement in the civil service, we hope to have a trimmer and efficient civil service which in turn should lead to reduced government spending. Question 18: Is government equally at ease with 100 percent direct foreign investment as it is with joint ventures? Answer. Yes, government is at ease with 100 percent foreign investment as it is with joint ventures. In fact government encourages foreign direct investment. Question 19: Zimbabwe suffered frorp a severe energy shortage not long ago. What guarantee is there for an investor that sufficient power will be available to supply him? Answer: Zimbabwe's sources of power are hydro and thermal. Severe energy shortages experienced recently had arisen due to the low Lake Kariba levels due to the drought. This happened at a time when the thermal power station also experienced serious breakdowns due to obselence of equipment. To redress the situation in the short to medium term, measures have been taken to inter-connect the national grid to South Africa through the Matimba project and with Mozambique through the Cabora Bassa project. While progress in implementing these projects continues the supply gap is being met through increased imports from Zaire and Zambia. The long term project to boost power supply will be achieved through the implementation of the Batoka Hydro Scheme which will be situated on the Zambezi River. The Power Utility Organisation has also embarked on a programme of rehabilitation of old thermal stations through replacement of obsolete equipment and refurbishment. Question 20: Power costs in Zimbabwe have escalated over the last few years. What control is there on the cost of energy and who ensures that energy costs are fair, what is the government policy on electricity pricing? Is there any guarantee of medium price stability? Answer: Following the removal of goods Continued on page 16 ZIMBABWE NEWS VOL: 25 NO. 4, 1994

Zimbabwe Continued from page 15 Noos British investors country has not yet reached its full insufficient and difficult to operate. Irawater yield capacity. The amount of mediately when these problems were water available which has not yet been realised the PTC embarked on a harnessed is estimated to be about programme of rehabilitation and moder9 300 million cubic metres of surface nisation. The end result expected to be water and one million cubic metres of achieved included an expansion of caunderground water. We are encourag- pacity to meet the need of the nation ing our local authorities to implement in an efficient and effective manner. It programmes to recycle this important is unfortunate that most of these natural resource as is common through- projects will take longer before their imout the world, pact begins to be felt. and services provided by public enterprises (PEs) prices were naturally expected to rise. The objective of liberalisation of trade is to allow market conditions to be determined more by market forces. Although government is extending autonomy to the operation of public enterprises, this has made them (PE's) to be more accountable for their action, that is success and failure of the organisations. Because ZESA is strategic government controls the operation of the PE through its regulatory mechanisms. The objectives of the regulatory framework is to ensure that there is stability to an acceptable level in the operation of ZESA. Question 21: Can Zimbabwe welcome energy intensive industries as was the case in the past. Answer: The objectives of the power utility organisation is to ensure that there is adequate, reliable and safe supply of power to support development in the country. As long as any user can afford to pay for the power utilised they are allowed to operate. Question 22: Zimbabwe recently had a devastating drought and we understand that water restrictions are still in place in all major centres. Does the country have enough stored water capacity to facilitate industrial development? Answer: Zimbabwe is generally wellendowed with water and has a mean, annual rainfall comparable with the world average. However, the mean annual rainfall exhibits considerable variation and the country experiences intermittent droughts. The 1992 drought was the worst drought in living memory in Southern Africa. In order to minimise the disastrous effects of the drought, Zimbabwe is undertaking major water development programmes. These programmes aim to ensure that the country has adequate water for domestic, mining, industrial and agricultural use. Current government policy on water development is to construct at least one large dam in each of the eight provinces, and at least one small or medium sized dam in each of the 55 districts. The water restriction that is currently in place is designed to ensure that the general public are made aware of the need to conserve water. The public awareness programme is part of our long term water conservation strategy. it should, however, be noted that the Question 24: Is the Post and Telecommunication Corporation in Zimbabwe determined to preserve its monopoly of telecommunications? Are there any opportunities for investment in telecommunications in Zimbabwe? Answer: The PTC is not determined to preserve its monopoly. The Government of Zimbabwe is setting up a monopolies commission whose function would be to regulate monopoly power and other restrictive business practices. The PTC will not be spared from such policy actions. In any case one of the integral components of the reform programme is opening up and allowing private investors, both local and foreign, to participate. In this regard certain functions will be subjected to competition. One local company has since applied to provide telecommunication services in Zimbabwe. But it must be pointed out that recognised as a strategic service, telecommunication is vital to a nation's infrastructure Continued on page 17 Cde. President R. G. Mugabe shares a joke with Prince Charles while on his tour of Britain ZIMBABWE NEWS VOL: 25 NO. 4. 1994 Presently there are more than 25 dam projects under consideration throughout the country. In developing the country's water resources the Ministry of Lands, Agriculture and Water Development takes cognisance of the fact that there are competing demands for water and all these demands need to be satisfied. The major users of water include industrialists, farmers, miners and urban domestic users especially the local authorities. Water resources development is a priority area of Government policy which requires proper planning and coordination in order to satisfy competing demands. Efficient and effective use of water is paramount to the development of the Zimbabwean economy. Question 23: The telephone system in Zimbabwe is notorious for its usefulness. What is being done to alleviate the problem? Answer: At independence Government inherited a very outdated telephone system and equipment which proved to be [_)ational NUN%,,

Zimbabwe woos British investors Continued from page 16 for public and private applications and also as a component of national security. Hence as we liberalise the telecommunication sector we must make sure we are not compromising national security. But there are vast opportunities for investment in this sector. Question 25: 1 hear that air freight services to Zimbabwe are almost entirely monopolised by the State-owned freight , is that true? Are there any plans for an 'open skies policy' on air freight to and from the country? Answer. Quite on the contrary Affretair doesn't have a monopoly on air cargo. Quite a number of foreign national are allowed to carry cargo to and from Zimbabwe. The extent and magnitude might be minimal. Question 26: We understand the Zimbabwe Iron and Steel Corporation, a State-owned business, is a major drain on the country's resources. Are there plans to close it down? Answer. There are no plans to close ZISCO, it being the largest integrated steel works in sub-Sahara and the largest only employer in Redcliff. Instead government's plans are to rehabilitate ZISCO through relining of blast furnace Number 3, complete overhaul of blast fur- nace Number 4. Current plans are to inject as much capital as possible and put ZISCO back onto a self sustaining position. Question 27: It has been stated that insurance companies are to be localised. Does this mean that this sector is no longer open to foreign investors? Answer: Localisation does not mean nationalisation. Localisation is a means through which Government is requiring foreign investors in the insurance sector to share in the ownership of these companies by giving the locals an opportunity to contribute their own share capital. The capital bases of the insurance companies are generally weak and even the increased minimum capital requirements can not go far enough to strengthen the financial bases of these companies. Hence Government after causing a detailed technical study by an insurance expert way back in 1982 decided that requiring insurance companies to localise their shareholders was the only viable way of strengthening the capital bases while at the same time ensuring that this sector was integrated into the economy. Insurance sector is one of the most important non-banking sources of funds for utilisation in the economic development process. It is important that the shareholders of these companies come from the diverse in- tegrated into the economy. While accepting that this sector may have contributed to a strong savings base, it should be acknowledged that the sector has not been a very active player in stimulating economic development process as well as broadening the economic base. Government believes that this attitude could have largely been due to the fact that the ownership base has not been that wide to the extent that even the corporation missions or objectives have also not been that broad. It is in this context that Government would wish the international community to appreciate the requirement for localisation. Localisation is certainly seen as the only viable means through which Government can promote partnership between foreign and local partnerships in this important sector of the Zimbabwean economy. The local capital would also contribute in further strenthening the capital bases of insurance companies. it has to be understood that insurance is a security to the whole economy hence a further strengthening of its financial base can be for the benefit of just Zimbabwe for the whole world. Other industries are not in the business of providing financial security to the economy or selling promises so neither are most of these sectors statutorily regulated. In any case it is the sensitivity of this sector to the security of the economy of each country that has given rise to the need to have this sector adequately controlled. The Government of Zimbabwe has a record for honouring its international obligations. Unless it was in the public interest the Zimbabwe government has no reason to require the localisation of any industry. In the case of the Zimbabwe insurance industry, there is room for further strengthening the capital bases of the companies so that insurance capacities increase. This does not apply to other sectors of the economy. In any case investors in other sectors of the economy take an up front risk. This is not the case with financial institutions, insurance companies included in Zimbabwe. Question 28: Are there any tax or other advantages to having a joint venture investment rather than a 100 percent foreign owned one? Answer: All investments are treated equally. Question 29: It has been said that Zimbabwe is only interested in investment in export based industries. Is this true? Answer: It is not true, all investments that will enhance the economic development of Zimbabwe are welcome. LI ZIMBABWE NEWS VOL: 25 NO. 4, 1994 Yes things are not right Your business is burning down to ashes, the competition is stiff and a small slip could cost you your life's sweat. there seems to be no light ahead... OOBUT WAIT! HERE WE ARE TO PROVIDE HELP IN WITH FIRST CLASS ADVERTISING CALL US ON 79014819 Yes it is - Zimbabwe News

JEGA COMMERCIAL COLLEGE "The Ladder To Success In Life" November & December Intake Environment Management Training for Industry Courses contacted with the acknowledgement of UNEP, WHO and ILO include: *Chemical Safety and Accident Prevention *Environment Health and Safety Programme Scale Enterprises *Cleaner Production (Pollution Prevention) *Industrial Waste Management for Small IU -- . o. ZIMBABWE NEWS VOL: 25 NO. 4, 1994

Government to upgrade primary road network he government will from the 1995/96 financial year start upgrading Zimbabwe's primary road network from the present 8.2 tonnes equivalent standard axle to 10 tonnes equivalent standard axle. According to a document presented to the recent London conference on trade and investment, implementation will be done over a phased period. The document, which dwelt on transport and energy sector issues, said it was agreed at regional level to redesign the roads to 10 tonnes equivalent standard axles. The document noted that the government is committed to deregulation and is now in the process of changing the legislation on the Road Motor Transportation Act which gave government regulation and control of the transport industry. The new Act will give control to the private sector and government will remain with the regulatory aspects like the issuing of operators' licences, setting the standards, vehicle and road safety among others. The following is the full text of the document: Road infrastructure Zimbabwe has a well developed road network system of 107 256 kilometres of which 13 383 kilometres (12,5 percent) is surfaced and 46 866 kilometres (43,7 percent) is gravel and 46 778 kilometres (or 43,6 percent) is earth or track. The management of roads is run by Rural District Councils, Municipalities and Central Government. The primary road network system which is largely limited to the inter-urban and to the border posts is in a good state designed to an 8,2 tonne equivalent standard axle. It has been agreed at a regional level that the economic standard axle that should be allowable is 10 tonnes equivalent standard axles. This is going to be implemented over a phased period taking into consideration the upgrading of the primary road network that is required, starting 95/96 financial year. Road Transport CAPACITY: Government implemented the $1 billion project whereby vehicles, mainly trucks were imported. The specific type of vehicles that were imported through this scheme were the ERFs, the Bedfords and the Nissan. with the liberalisation of foreign currency the private sector is now able to source and buy their own vehicles from sources of their choice without any Government interference. This has improved tremendously the vehicle situation in Zimbabwe but nevertheless more investment is still required in this sector. DEREGULATION: Government has agreed on the policy of deregulation and is now in the process of changing the legislation on Road Motor Transportation Act which gave Government regulation and control of the tranport industry. The new Act will give all the control to the private sector and Govern- Continued on page 20. FIG i STATE ROAD NETWORK As at 29th June 1993 LENGTH (K ----tC00 1 317 -_fWfRC E2.1E 2022 V.:, 0' ZIMBABWE NEWS VOL: 25 NO. 4, 1994

Government to upgrade primary road network the region have instituted the following measures:(a) Introduction of block trains for international traffic to expedite its movement from country to country; (b) Traffic is no longer transshipped at borders, instead, traffic will only off load at destination; (c) joint rates with other railways for international traffic to obviate the need for clients to negotiate rates with all railways on which their traffic will move; Continued on page 21 Continued from page 19 ment will remain with the regulatory aspects , that is issuing of Operator's Licence, setting the standards, vehicle inspection, road safety, et cetera. REGIONAL LINKAGES: Zimbabwe is signatory to the Preferentail Trade Area (PTA) and Southern Africa Development Community (SADC) Protocols which allow any international cargo, once it has the PTA seal or SADC seal to cross borders without being opened thus reducing on delay time at crossing the border. All PTA traffic is charged a uniform transit fee. COMPETITION WITH RAIL TRANSPORT: The Road Transport sector competes for the same traffic with the rail transport for import and export. traffic to the seaports within the SADC and PTA region. The railways although currently 100 percent owned by Government does not get preferential treatment in the movement of traffic. Rail Infrastructure The main rail network was built between 1897 and 1904 to link Harare with Bulawayo; to Hwange coal fields and to seaports of Beira and Cape Town, 1950 via Chicualacuala to the seaport of Maputo and 1974 via Rutenga the seaports of Durban and Port Elizabeth. The railway line also links with Zambia and Botswana through the border posts at Victoria Falls and Plumtree respectively. The beauty about this railway system is that it is the 1.067 metres guage standard which is compatible with other contiguous railway system of the region, that is, from South Africa including SADC countries to Zaire. Physical assets and Resources The National Railways of Zimbabwe's (NRZ) locomotive power fleet is as follows: 30 electric locomotives, 163 diesel and 15 steam locomotives for shunting. purposes mainly in Bulawayo. The rolling stock: 12 148 wagons (Open H'side: 60 percent, Open d'side: 17 percent, tank: 7 percent, containers: 4 percent, other 12 percent) Freight The NRZ carries 14 million tons per year. To facilitate trade and speedy movement of traffic from ports to some other destinations, the contiguous railways in ZIMBABWE NEWS VOL: 25 NO. 4, 1994 REGIONAL AND INTERNATIONAL AIR SERVICES OPERATING IN AND OUT OF HARARE TABLE 2

Government to upgrade primary road network Continued from page 20 (d) Use of single consignment form for all international traffic to facilitate movement of traffic on different railway administrations; fe) Establishment of Account Currents (Railway Clearing Facility) whereby client pays only one railway administration and the rest get paid at the end of the month through the Clearing House. The NRZ is also building the Advanced Trekking System that is capable of tracing cargo from origin through the route up to destination. It will be possible to locate cargo at any point in time after it has been despatched. With these measures traffic is definitely destined to reach on time. Plans are also, at an advanced stage between NRZ and the private sector (Freight Forwarding Agents) to build a Dry Port at Lochinvar in Harare. This Port will guarantee a much speedier delivery of traffic through the combination of rail and road transport. AIR TRANSPORT - Airports Zimbabwe had eight airports, three of which serve international traffic, that is, Harare, Bulawayo and Victoria Falls. A programme for the construction of the Harare International airport is at an advanced stage and tenders will be floated before September 1994. In addition there are 494 official aerodromes scattered throughout the country for use by defence, farmers, Government departments and civilians. Passenger Air Zimbabwe operates a fleet of three B737-200's one BAe1 46-200's and two B767-200, two B707-320 B's. Air Zimbabwe capacity has increased substantially since independence. Most of the business of Air Zimbabwe is geared towards passenger traffic. There are also 23 airlines operating into Harare with a minimum of two flights each per week. Scheduled carriers offer large tonnages per week, for example BA, 12 tons per flight and flies three times per week out of Harare. KLM and UTA have combi aircrafts with a tonnage around 30 tonnes each. They both fly twice a week out of Harare. TAP, Lufthansa, Qantas et cetera have bellyhold with a capacity of 6- 8 tons and they fly twice per week out of Harare. Cargo Affretair has a fleet of two cargo aircraft of the DC8 type. Of late Affretair has had some problems with its aged equipment which has translated into financial problems. Government is examining the options that are available for Affretair to be able to operate viably. The options also include private participation in the company. Freight Agencies/Clearing Houses Zimbabwe has several clearing and forwarding companies that are involved in the clearing and forwarding of cargo with good infrastructure. They have offices at all points of entry into Zimbabwe including the most commonly used seaports. They have a well developed network with road, rail, air and sea transporters. Summary In the Transport sector further private participation in organisations which had Government monopoly is now open, for example, the running of the new airport, railway system and air transport. ENERGY SECTOR ISSUES SYSTEMS DEVELOPMENT PLAN: The severe energy shortage that was experienced in 1992 was a result of a number of factors which include: (a) The drought in the region that resulted not only in reduced generation from Kariba Power Station due to low water levels but also loss of the traditional Zambian imports which accounted for roughly 200 MW of supply. (b) Poor performance of the Hwange Power Station due to not only shortage of spares but design faults. (c) Poor performance and water shortage especially in Bulawayo of the smaller thermal power stations because of old age; (d) Delays in implementing additional supply projects. To overcome this situation as outlined above government embarked on demand side management and imports of power from Zaire and South Africa. government also took forward planning by giving a Systems Development Plan which captures the following:- TABLE 1 MW Rehabilitation of the Old Thermal Stations Refurbishing of Hwange Power Station (Units 1-4) Cahora Bassa -Bindura nterconnector 500 Matimba - Bulawayo Interconnector S00 Kariba South Ref Upgrading Batoka Hydro Electric Scheme 800 Hwange State 7 and 8 400 Sengwa Coal Field 600 STATUS OF THE SYSTEMS DEVELOPMENT PLAN: Work on the rehabilitation of the old thermal power stations is in progress and Phase I is expected to be completed by September, 1994. Efforts towards improvement of the Hwange Power Station (HPS) have already started. A management adviser and operations specialists have been appointed. Negotiations for a loan for the major refurbishment work of HPS have been completed with the World Bank who have agreed to fund the refurbishment of the power station. Work on Cahora Bassa, MatimbaBulawayo interconnector is expected to start in mid 1994. The feasibility study has confirmed the desirability of the Batoka Hydro Electric Scheme and efforts are being made to meet the 2003 deadline. REGIONAL CO-OPERATION: The Power System Development Plan is structured in such a way that there will be adequate reserve levels to maintain the required level of reliability. The Southern African countries are also in the process of forming a regional "power pool" which will further boost the reliability and adequacy of supply. This is illustrated in Fig. 5 which shows the Existing and Proposed Electrical Grid System in Southern Africa and its relation to Zimbabwe. ENERGY INTENSIVE INDUSTRIES: Zimbabwe is going to rely on a mix of hydro, coal and imports and this mix will ensure a least cost security of supply and is one that can attract energy intensive industries which need intensive energy use as well as those that need low energy use. In the past some companies were set up on the basis of low energy prices - electrolysis process for fertiliser manufacture, ferrochrome and steelworks for example. While there is a tendency to move away energy from intensive industries, it is still possible to invest in these Continued on page 22 ZIMBABWE NEWS VOL: 25 NO. 4, 1994

Banking Act to be amended he government is actively consider. ing amending the Banking Act with a view to increasing competition, the general manager and executive director of the Merchant Bank of Central Africa (Zimbabwe) Limited, Mr. David T. Hatendi, told the London trade and investment conference in Britain in May. Mr. Hatendi told British industrialists that foreign investment or input is desirable in order to fruitfully exploit the emerging new opportunities. "There is room for new entrants into the Zimbabwean financial sector, especially those that increase the depth of existing institutions and provide the necessary competitive edge while introducing new instruments," he said. Mr. Hatendi presented a paper on bankGovernment to upgrade primary road network Continued from page 21 industries provided they are more energy efficient. POWER TARIFFS: The escalation in the cost of power in Zimbabwe in the recent years has been necessitated by the fact that for a long time electricity tariffs had been kept artificially low even to maintain existing services, and, with the expansion projects cited above funds have to be raised to meet the expected project costs. The levels have stabilised and may rise only at rates consistent with inflation. A regional comparison of Zimbabwe tariffs shows that Zimbabwe is among the cheapest as illustrated by the Bar charts in Fig 3a and Fig 3b. It is government policy to move towarcs long run marginal costing (LRMC) for electricity. Energy costs have also to be viewed from the whole exercise of cost cutting and efficiency improvement of parastatals, including ZESA. UQUID FUELS: Fig. 4 has a comparison of Zimbabwe's petrol and diesel prices to that of the region. SUMMARY: Government has agreed on private participation in power generation and any of the Systems Development Plan projects that ae listed above. Other areas of private participation include manufacture and provision of energy related equipment and services. ing and finance which is reproduced below: 1 Structure of Zimbabwe's Financial Sector Zimbabwe's Banking and Financial sector, I believe illustrates perhaps most convincingly the positive impact of a constructive alliance between foreign and local capital. This is true both in terms of the shareholding of the various financial institutions which remain predominantly foreign as well as in terms of the markets or clients which these institutions serve. While the preponderance of foreign investment in this sector originates from the United Kingdom, there is a presence on the part of European and other foreign investors which over the years have contributed to the establishment of a nighly diversified and sophisticated sector. It is composed of a Central Bank, three discount houses, five merchant banks, five commercial banks, five finance houses, four building societies, a development bank, a venture capital company, a stock exchange as well as several insurance companies and pension funds. The sector rapidly developed in the post-independence period, markedly increasing both its breadth and range of specialist services or products. The total assets of the banking sub-sector inclusive of building societies and finance houses increased from about Z$1,5 billion in 1980, to approximately Z$20 billion by the end of 1993, which is equivalent to an average annual growth rate slightly above 20 percent. As of December, 1991, the total assets of pension funds had grown to approximately Z$6,6 billion while those of insurance companies had grown to over Z$5,4 billion. In addition to conducting traditional central banking functions, the Reserve Bank of Zimbabwe has played a crucial role towards the liberalisation of the money market and continues to play a critical role towards the complete liberalisation of the foreign exchange market. The monetary banking sector has the requisite infrastructure, expertise and experience to source short-term finance from both domestic and for- eign depositors. Zimbabwe's merchant banks have effectively serviced the working capital, international trade and project finance needs of the economy as well as provided expertise in capitalstructure related activities such as stock exchange listings, rights issues, private placings, mergers and acquisitions. In this context, it is noteworthy that the Zimbabwe Stock Exchange is the second largest in Africa with a capitalisation of Z$14 billion. The market, which features on the Financial Times and the International Finance Corporation Emerging Markets index has been instrumental in raising finance for both local and foreign controlled corporations. 2. A Brief Outline of the Recent Policy Changes A brief outline of the policy environment in which these institutions operate will, I believe enhance your appreciation of the market in general, as well as the potential that Zimbabwe's financial sector stands to realise By 1992 the money market was completely liberalised with intervention by the authorities being confined to open market operations for the purpose of determining interest rates. A vigorous contraction of money supply was maintained in 1991 and 1992, which succeeded in quelling inflationary pressures as signified by the notable decline of the inflation rate from above 45 percent in August 1992 to 18,5 percent in January 1994. At the beginning of 1994 quantitative restructions on virtually all goods were removed. Dividend remittance as wel as the repatriation of previously injected investment capital have been completely liberalised for investments made after May, 1993 and handsome concessions have been granted to pre-May 1993 investments. A twotier exchange rate system was introduced on 1 January, 1994. Sixty percent of the export proceeds of the country can now be retained in the private sector and traded through the financial sector at market-determined exchange rates. Continued on page 23 ZIMBABWE NEWS VOL: 25 NO. 4, 1994

Banking Act to be amended Continued from page 22 An official exchange rate for government and a few crucial public enterprises' transactions has been maintained. Nevertheless, it is Zimbabwe's intention to ultimately merge the two exchange rates with a view to establishing full convertibility of the Z$. It is encouraging that to date, Zimbabwe has not experienced the wide swings in the Z$ that skeptics thought liberalisation would produce, this is largely attributable to continued prudent domestic demand management and continuous efforts to correctly align the $Z. It remains, I believe, our government resolves to relentlessly pursue prudent demand management policies - the battle has yet to be won. While future macro-economic adjustment is still necessary, the reforms introduced to date have ushered in an environment conducive to the initiation of robust and sustainable investment projects. However, as in any liberalised economic environment, ingenuity in planning and dynamism in responding to changes in the macroeconomic and international environment on the part of both entrepreneurs and their bankers will be essential ingredients for our success. 3. Evidence of Response to Change Evidence of the financial sector's response to the challenges and opportunities I have alluded to abounds. A good number of flotations and rights issues were embarked on by Zimbabwean corporations at the inception of Structural Adjustment Programme (in 1990 and 1991). These were motivated by the need to gear up for the challenges of adjustment in particular the anticipated escalation in interest and inflation rates. Both the Zimbabwe Stock Exchange (ZSE) and the merchant banking industry were put to test and they performed. Over a billion Z$ worth of equity was raised on the ZSE in that two-year period. The ZSE and the Banking Community has also demonstrated tremendous capacity as conduits for foreign portfolio investment into Zim. babwe. After the liberalisation of foreign participation on the ZSE on 30 June 1993, there has been an influx of foreign portfolio investment into Zimbabwe to the tune of about Z$200 million, leading to a more bullish stock market. As a result, between 30 June 1993 and 28 February 1994, the industrial and mining indices have dramatically risen by 267% and 357%, respectively. This year has already seen more than four listed companies seek to raise equity on the ZSE and more activity is expected as the corporate sector re-structures in order to more effectively address the challenges and opportunities presented by a new and more dynamic trading environment. After the escalation of domestic interest rates in 1991 and 1992, with the co- operation of the central bank, the financial sector again demonstrated its capacity to respond to the challenges of adjustment by securing cheaper off-shore debt finance for Zimbabwean companies. Cognisant that the interest rate differential between the domestic and foreign money markets will soon disappear with the advent of a liberalised foreign exchange regime, greater emphasis is now being placed on raising foreign equity capital in the form of both direct and indirect inwstment. In this regard, perhaps the most exciting development in terms of Zimbabwe's relationship with international capital markets has been our securing a position amongst those new and growing economies that make up what is now commonly referred to as the emerging Mar. kets. Since the beginning of this year no less than three Emerging Market funds with an African focus have incorporated to varying ex. tends, Zimbabwe as an investment home. The largest of these funds, the Southern Africa Fund which was listed on the New York Stock Exchange in February is capitalised at over US$90 million, 20% of which is being invested in Zimbabwe. In this, as is the case with the other Funds, Zimbabwean financial institutions have effectively collaborated with major international fund managers to facilitate a dynamic private sector response to the positive policy initiatives being introduced by government. 4. Investment opportunities in the new environment While the new environment has engendered new opportunities, concomitant to them have been new challenges for the financial sector. Regardless of our policy makers resolve to preserve monetary and exchange rate stability, a liberalised financial environment is by definition more volatile. New financial instruments will need to be developed to capture new opportunities and to manage risk more effectively. Accordingly, financial institutions need to continuously develop the requisite analytical tools. Notwithstanding the small size of the financial market, the introduction of derivative instruments is not inconceivable. A commodity exchange has already been established. Immediately investment opportunities in the financial sector exist in areas such as leasing, the secondary mortgage market and the structured trade business. The amendment of the Banking Act with a view to increasing competition is under active consideration. In order to fruitfully exploit these new opportunities foreign investment or input is desirable. There is room for new entrants into the Zimbabwean financial sector, especially those that increase the depth of existing institutions and provide the necessary competitive edge while introducing new instruments. In conclusion, it is noteworthy that one of the major sponsors of this Conference, Bardays Bank has through the ZSE reaffirmed the fruitful utility of an alliance between foreign and Zimbabwean investment in the financial sector. Furthermore, I would be greatly amiss if I did not mention my own Bank, The Merchant Bank of Central Africa Limited which is a consortium of banks whose international shareholders include NM Rothschild, Hill Samuel, BNP. (France), Dresdner iGermany) BBL/Luxemburg and more recently Nedbank (South Africa) constitutes the most elegant demonstration of the positive attributes of foreign investment in Zimbabwe's financial sector. To be certain, the majority of peo",, in my country aspire greatly to Continued on page 24 ZIMBABWE NEWS VOL: 25 NO. 4, 1994 he most urgent and demanding task before the ZANU PF Youth League on the political front is the mobilisation of people for the Party's victory in the forthcoming elections, the Secretary for Youth in the Politburo, Cde. Josiah Tungamirai, has said. Presenting his report to the Party's National Youth Conference held in Harare from 26 to 28 May, Cde. Tungamirai told the delegates that such a task needed a well-organised Party machinery from the cell upwards; "the first task entrusted on us by His Excellency the President and first Secretary, Cde. R.G. Mugabe, five years ago." He said the general elections also brought into focus the second and third tasks assigned to the youth - the education and recruitment of youths into the Party, and their preparedness to defend the Party and the country. "Have we done enough in this regard?" He asked the delegates. Banking Act to be amended Continued from page 23 a more substantive involvement in the mainstream of the financial, industrial or commercial economy. I believe that the legitimacy of these aspirations cannot be questioned, and indeed their fulfilment would be entirely consistent with the interests of foreign investment flows, not least by lending greater opportunity and security to such investors. I believe a special onus rests on Zimbabwe's financial institutions, which as in other parts of the world where real sustainable growth and development is occurring, financial institutions have been arguably been the single most important positive catalyst for change. In most, if not all such situations, foreign investment flows have been a critical ingredient. Zimbabwe, I believe, is no different and I am confident that our banks and financial institutions stand ready to play their part in complimenting government's efforts on the policy front while facilitating direct or indirect foreign capital inflows. (3 Cde. Josiah Tungamirai Following is the full text of the secretary's full report: 1 Comrades and friends, I would like to ask you to bear with me as we remember most fondly those of our colleagues and friends whose contributions to the work of the Youth League can never be forgotten. Before I deliver my report I would like to remind you of the late Cde. E.R. Kadungure, the First Secretary for Youth Affairs for the ZANU PF Youth League. Many of you gathered here today may well remember his outstandihg contribution to the nation through ZANU (PF) and, particularly for this occasion through, the Youth League. He passed away in May 1990 and to him we say go well brother and comrade in arms. May you rest in peace. We must also remember the tireless and hardworking late First Lady Amai Sally Mugabe who left us in January 1992. Her participation in the struggle for Zimbabwe and her keen interest in youth and children and other disadvantaged groups is without parallel. As co-patron of the 21st February Movement and Executive Chairperson of the Child Survival Development Foundation the late First Lady showed love unbounded for mankind. May she rest in peace. I must also take this opportunity comrades and friends, to ask you to think of all those other known and unknown to us who at one time or the other in their lives rendered service to the Youth League at whatever level. To them we say thank you for a job well done. Please rest in peace. Comrades and friends, on behalf of the National Executive I now give you the report on the activities of the ZANU PF Youth League over the last five years. It is a report that covers a period during which momentous decisions were made to influence the political and economic directions Zimbabwe would follow in future. At the beginning of the period, during the last Youth Conference held in October 1989, we had set ourselves to tackle vigorously the Resolutions and the ten tasks assigned us during that historic occasion by His Excellency the President and First Secretary of ZANU PF Cde. R.G. Mugabe. However, it is important, to remind ourselves of some of these tasks as set out by the supreme leadership of the Party. These were:a) To help complete the Party's organisational structure from the Party cells upwards; b) To educate all the country's youths and bring them into the ZANU PF Party; c) To be vigilant so as to defend the country; d) To organise the youth for selfreliance and to form co-operatives; e) To fight alcoholism, drug abuse and moral depravity; f To eradicate illiteracy within the population; g) To fight sex discrimination, corruption, tribalism, regionalism and nepotism in the public and private sectors;. h) To fight against colonialism. i) To interact with youth from other countries, and Continued on page 25 ZIMBABWE NEWS VOL: 25 NO. 4, 1994 Ili, 11 J1 I ff.,

Mass mobilisation the biggest challenge The late Secretary for Youth, Cde. Ernest Kadungure (right) with Cdes. Edna Madzongwe (second from right) and Fay Chunga (centre) in a jovial mood Continued from page 24 j) To mobilise maximum support for the people of Namibia and South Africa in their fight against the apartheid regime. Over the period, ZANU PF has witnessed a shift in ideological emphasis from the socialist one-party State goal to social democracy within multi-partysm. The economic thrust has also witnessed significant changes in direction with the introduction of the structural reform programme and its ancilliary mechanisms of free rein market forces. "hese major changes in the political and economic spheres have impacted strongly on every aspect of life for the Zimbabwean citizen. They spell irreversable change. Another major development over the same period has been the har rowing experience of the worst drought Zimbabwe has ever had to go through. This well-documented chapter in Zimbabwe's history speaks for itself. Again, the effect on the ordinary Zimbabwean is of life-time significance and the Party's role in meeting the challenge can never be taken for granted. Some of the more common effects of ESAP are the numerous retrenchments of people from their jobs, the ever rising cost of living and the increased charges for health and other social services. These negative effects are further compounded by the fact that, every year over 250 000 school leavers are added to the numbers of the jobless. We can only hope that the fruits expected out of this painful exercise will soon be realised for the betterment of all. Comrades and friends, on the one hand, it is against these developments that the Youth League's efforts to realise their set goals should be judged. For the greater part, these exogenous factors could not be significantly influenced by the League. However, on the other hand, an examination of the League's ability to carry out those functions assigned us, no matter how difficult and changeable, is a most desirable exercise. In presenting this report, comrades, it is primarily this aspect t. At we should focus on. More so because man is supposed to be master of his destiny, and therefore capable of influencing events towards a desired end. More so because the other major reason why we are here today is to set ourselves new tasks that should be tackled again vigorously in pursuit of service to the Party, nation and country. There are great challenges ahead, all of which demand well-planned and effective programmes of action executed by a well-organised machinery. The question is: Is the ZANU PF Youth League capable of these? On the political front the most urgent and demanding task is the mobilisation of people for a ZANU PF victory in the coming elections. This presupposes a well- organised Party machinery from the cell upwards; the first task entrusted us by His Excellency the President and First Secretary Cde. R.G. Mugabe, five years ago. Have we fulfilled that task? Cde. First Secretary and President once said and I quote: "Organise the people in the name of the Party and the Party in the name of the people". The general elections also bring into focus the second and third tasks assigned us - the education and recruitment of youth into thd Party, and their preparedness to defend the Party and country. Again, have we done enough in this regard? In the same vein the youths' moral, social psychological concerns so clearly set out in the fifth, sixth and seventh tasks pose great challenges for the League. As in all the other cases, the League's past performance serves as background for its ability to meet the challenges ahead. Comrades and friends, in prefacing my remarks on the departmental operations of the League I must say a lot more 3till remains to be done. Reference has already been made to numerous forces that had an effect on the League's performance in pursuing the set tasks. What should be perceived clearly is the nature of these assignments as given. Most of these tasks are a countinuous process providing general guidelines that should direct political activity for the Youth League for years to come. It is therefore beholden on the League to examine itself critically in all its departments and in its mode of operations. Allow me now comrades and friends to present to you departmental briefs of the Youth League. 2. Departmental Reports 2.1 Introduction: (The Secretariat): In preparation for laying the groundwork for the various tasks set by His Excellency the President, the Secretariat had drawn up a Programme of Action over the five year period. During its historic first National Executive and National Assembly meetings of 20 and 21 January 1990 a Programme of Action was drawn up, which, among other things set out clearly the roles and functions of the different departments as set out in the Constitution of the Party. This programme emphasised the need for the Continued on page 26 ZIMBABWE NEWS VOL: 25 NO. 4, 1994

Mass mobilisation the biggest challenge Continued from page 25 different departments to draw up annual departmental work plans with all relevant details on each activity. I regret to inform the meeting that though some of the departments adopted this approach, not many of these programmes ever came to realisation. Financial constraints and other organisational problems seriously hampered the implementation of these programmes. The early determination to approach the task at hand with vigour characterised by the above approach is also illustrated by the Secretariat's decision to have at least four heads of department employed on full-time basis stationed at Head Office. The Secretariat lobbied for this arrangement and by the end of 1990, four heads of thefollowing departments were then based at Head Office: Administration, Finance, Commissariat and Production and Labour. 2.1.2 Meetings: Over the period, the Secretariat convened twelve (12) National Executive Committee and seven National Assembly meetings as follows:- National Executive 1. 20/01/90 2. 28/06/90 3. 16/02/91 4. 01/06/91 5. 13/12/91 6. 16/01/92 7. 19/06/92 8. 30/10/92 9. 07/05/93 10. 05/06/93 11. 11/03/94 12. 20/05/94 National Assembly 1. 21/01/90 2. 02/10/90 3.01/06/90 4. 14/12/91 5. 31/01/92 6. 18/06/93 7. 19/03/94 The number and frequency of the meetings do not meet the provisions as laid down in the Constitution largely because of financial constraints. However, some of these meetings were important especially in the laying down of strategies to implement programmes. 2.1.3 Provision for standing committees Realising the lack of progress in some of the key areas identified in the Programme of Action, the National Executive committee had in its meeting of 16/2/91 at the Ambassador Hotel, established two special standing committees in the fields of Employment Creation and Political Mobilisation. The compo- The late Cde. Sally Mugabe worked tirelessly to improve the welfare of children, the youth and disadvantaged groups sition of the committees were as follows: The Production and Employment Committee The Secretary for Production and Labour The Secretary for Finance The Secretary for Transport and Welfare The Deputy Secretary for Production and Labour The Political Mobilisation Committee The Secretary for Commissariat and Culture The Secretary for Education The Secretary for Publicity and Information The Deputy Secretary for Commissariat and Culture These committees did not produce results to our expectation. 2.1.4 The 21 st February Movement This movement has grown in popularity but needs to be firmed through appropriate annual programmes evident throughout the year. It is not to be identified merely with His Excellency's the President's birthday. As already spelt out, the Movement was es- tablished to inculcate among the youth those values and principles so evident in the character and personality of his Excellency the President and First Secretary Cde. R.G. Mugabe. This important organ of the young, though operating under the tutelage of the Youth League has its own legal framework under which it operates. This has come in the form of guidelines for the operations of the Movement. I am happy to report that these guidelines are now in place and hopefully significant annual programmes for the organisation will be pursued. It is still our intention to develop the piece of land donated by the Harare City Council to the Movement for beneficial use. In this regard, I am happy to report that in its eleventh meeting on 11 March, 1994, the National Executive Committee set up a task force to examine, among other things the legal framework applicable to the donation and therefore to research on, identify and recommend to the N.E.C. a suitaContinued on page 27 ZIMBABWE NEWS VOL: 25 NO. 4, 1994

Mass mobilisation the biggest challenye Continued from page 26 ble project to be undertaken on the premises. Over the period, the Movement has held highly successful celebrations to mark its anniversary as well as His Excellency the President's birthday. Perhaps the most colourful was this year's event when a total of 250 delegates instead of the usual 100 came in from the provinces. This was to honour the special event of His Excellency the President's 70th birthday. Quite appropriately, there were no celebrations in 1992. These were cancelled because the Movement was still in mourning for the passing away of one of its co-patrons, mother, and leading light - the late First Lady Amai Sally Mugabe. 2.1.5 Staffing De As part of the re-organisation of the Party's administrative structures at the national, provincial and district levels, the League is in the process of filling in a number of posts. At national level the 2.3 Deputy Director of Youth and typist are now in place. We believe there is need for at least one other Assistant Director and a driver at this level and negotiations are continuing in this regard. At provincial level, the full time youth officers are now in place having been selected by the relevant provinces. Also in place are the full time elected members working at that level. Discussions are still in progress on employment at district level. 2.2 Administration The two major functions of the department are coordination of departments and their programmes and the maintenance of smooth communication channels at the different levels of the Party. The department has had difficulty in carrying out these functions. While we note, correctly, that some of the constraints have been outside the control or influence of the League, we also note equally clearly that much of the problem has been due to lack of concentra. tion and application in the department. Complaints at all levels about lack of information or correspondence from the national level and vice versa abound. 'legates to the ZANU PF national youth conference awaiting accreditation at Party headquarters in Harare However, we hope for some significant improvements in this area in the near future. Finance: This is another problematic area largely because the League's capacity to run and generate its own funds is severely limited. Though the League has its own account in which it can deposit revenue from its fund-raising efforts, these attempts to establish a meaningful revenue base have all not realised anything significant simply because the working capital is just not available. For any of its operations the League has had to depend on funds from the central fund of the Party. This is not surprising as all the revenue realised from subscriptions and the sale of membership cards including those of the Youth League accrue to the central account. The Youth League has no revenue base. Over the period two major efforts to raise funds were made but neither of these yielded much. The first was the Magic Show run whereby the League entered into a contract with an expatriate magician. $9 000 was raised through this arrangement. Another effort was the ill-fated Dynamos vs CAPS United soccer match played late last year. A generous sponsor had put up $15 000 to stage the game. A miserable turnout due to poor public- ity and other organisational factors turned the event into a major loss. Fund- raising efforts should be properly organised and managed. For the League, we should not restrict ourselves to the singular event. It is therefore our intention to examine various possibilities of projects that will prove to be continuous sources of revenue. In the area of membership subscriptions, we intend to engage into dialogue with the Central Finance Department to examine possible arrangements whereby a significant portion of that revenue from the League is retained for funding the various programmes the League is engaged in. It is a fact that one of the major reasons behind the failure of a number of proposed programmes, especially at grassroots level has been the unavailability of funding. However, I am pleased to report that towards the end of the period we have benefited significantly through an allocation of $500 000 from the Party's central coffers made possible by the recently promulgated Political Parties Finance Act of 1993. Through this facility, it has been made possible to hold meetings and workshops at various levels. We believe that if progress is achieved in some of the proposals Continued on page 28 ZIMBABWE NEWS VOL: 25 NO. 4. 1994

Mass mobilisation the biggest challenge Continued from page 27 outlined above, the League should be in a position to carry out meaningful programmes all year round as well as settling its numerous outstanding bills which at present are in the region of about $200 000. 2.4 Commissariat This department did not perform to expectation over the period, though about two supposedly major programmes had been planned and an inter-departmental standing committee set up to assist in the work of the department. We 'are encouraged, however, to learn that something was going on at the grassroot level. At the lower levels the department worked together with its counterparts in the restructuring programme of the Party and achieved some notable results. The Commissariat is the heart and lifeblood of the Party and we cannot afford to take any risks in this regard. In our deliberations, we should bear this in mind, and in our selection of the people to man this crucial lifeline, we should be most analytic of the qualities and other attributes needed for the functionaries at every level. This is of utmost importance especially now as we go towards a general election. 2.5 Security Despite the low level of activity over the period, the department of Security acquitted itself well at all levels. The general peace and tranquility now prevailing in the country must be due in no small measure to the effective linkages obtaining between and among the various security organs of both Party and Government at all levels, and, obviously the Youth League's contribution in this regard cannot be underestimated. It is pleasing to note that the Youth League Security department played its meaningful role along our eastern boundaries during the height of the Renamo atrocities. The youth have passed information which has led into the apprehension of criminals involved in the numerous armed robberies, et cetera, now prevalent in the countryside. it is our wish that the improved communications links between the department and the various law enforcement and security agencies of the State be further strengthened. Full advantage must be taken now of the innovative mechanisms being put in place by the Z.R.P. especially in the field of community interraction. 2.6 External Affairs Over the period, the League has hosted seven delegations from outside countries such as the People's Republic of China, the then USSR, Angola, Cuba, Egypt and the then liberation movements of South Africa. We in turn have sent out delegations to five countries namely Bulgaria, Cuba, Angola, China, and D.P.R.K. Al these visits are meant to renew or cement the good relationships that exist between ZANU PF and our sister parties in these countries. As the Youth League has managed to maintain the protocol agreements with these progressive organisations elsewhere, I am pleased to report that our external relations continue to flourish. On the continental and regional level we have witnessed the unfolding process of peace, and much of it brought about by the involvement of His Excellency the President, and First Secretary of ZANU PF, Cde. R.G. Mugabe. Comrades and friends every youth in Zimbabwe must surely join hands with the ZANU PF Youth League as we raise our voices in thanks and appreciation on the role played by the leadership of the Party in bringing about peace and understanding in the region. May we forever benefit from his wise leadership. 2.7 Publicity and Information Despite commitment and hardwork in the department at national level, the image of the Youth League has not been properly and adequately portrayed to the nation by our public media. To the ordinary person, the ZANU PF Youth League raises images of political thuggery or some other similarly unsavoury picture. It is of utmost importance that the League be portrayed as it really is a progressive Youth organisation dedicated to the positive values of livelihood as well as the overall development of Zimbabwe through ZANU PF. The League has carried out many beneficial projects at different levels for communal benefit - but in these days of smear campaigns and vindictive reporting by those sections of the media who prefer lies and distortions as opposed to the truth in regard to ZANU PF, such events are not receiving coverage at all. The department must seek to redress this position. Numerous attempts have been made to attract the relevant authorities and organs to the reporting of most of the good work being undertaken by the Youth League - but apparently good work is not newsworthy for some of these publications. A credible publicity and information network for the youth should have credible publication and dissemination channels and unfortunately because of inadequacy in resources priminarily financial, the League has no such infrastructure in place. It is hoped that new strategies will be devised to effect a powerful information system. Central to this strategy will be the revitalisation of the Youth Magazine - Today's Youth. 2.8 Transport and Welfare This is another department that has suffered seriously from lack of resources. Every function of the League demands the services of this department - but with virtually no resources, the department can hardly operate. As has been said in the past, a vehicle for each province and at least two at head office would be a modest beginning. However, as already explained elsewhere, without the capacity to generate and receive revenue the League can never hope to have such basic infrastructure in place. In fact, the department is so incapacitated that its transport component translates into nothing more than pleadings to central transport and administrative secretaries at all levels, whereas the welfare aspect virtually does not exist at all. 2.9 Production and labour The department leaves a lot to be desired. It lacks resources to carry out meaningful projects. it must be emphasized that the function of this department is very closely aligned to that of the Commissariat. On Continued on page 29 ZIMBABWE NEWS VOL: 25 NO. 4, 1994

Mass mobilisation the biggest challenge Continued from page 28 numerous occasions the Party leadership has talled for mobilisation of the people around a project site. In addition, today's politics are the politics of employment and economic survival. All these are actual functions for this department. Realising the central role this department has, especially in the new politics of economic development, the Secretariat has arranged provincial seminars aimed at exposing the participants to the various possible channels for sourcing money and other assistance for them to embark on selfemployment ventures. At these seminars, organisations such as SEDCO, the Ministry of National Affairs, Employment Creation and Co-operatives, as well as other commercial banks and N.G.O.'s were invited to make presentations on what they can offer. Though logistical and other organisational problems have hindered the programme, each province has been allocated $1 s000 00 to organise a two-day seminar. Two successful seminars have already been held in Mashonaland West and Harare. The department noted the serious lack of resources for youth advancement. It therefore calls for improved access by the youth to the various financial facilities being put in place by Government; to land for productive exploitation; and to an expanded training programme for the youth; we look forward to more concerted effort in this area of endeavour. 2.10: Education: In the early days of the period under scrutiny, the department was primarily concerned with the selection and forwarding of succesful candidates for study courses abroad, mostly in countries with which we had dose relations. That facility has since been closed, for various obvious reasons except the teacher- education programme in Cuba which continues to progress in leaps and bounds. Educational policy in Zimbabwe, though recently modified, is still the subject of controversial debate, and numerous shortcomings in thb delivery mechanisms ranging from the inadequate provision of qualified teachers to inaccessibility of the SDF facility continue to make headlines in the media. All these are areas that need careful scrutiny. This department demands analytic and planning skills especially the ability to link education within the general development thrust of Zimbabwe. 2.11 Health and Child Welfare: A new department that came in during this term of office, the department, like that of Education has to work very closely with Government. The major problem faced by the department appears to have been the lack of a co- ordinated approach and work plan from the main wing downwards. The major function of the department would be to enlighten and closely liaise the Youth League functionaries with the medical and child welfare programmes, personnel and institutions all over the country. This would be achieved mostly through seminars, workshops, meetings and obviously site-visits. The leadership of the department has tried under very difficult circumstances to initiate some of these programmes but without sufficient guidance from the top and virtually no resources, the struggle has been an upward battle. It is hoped the new era will bring in more purpose and clearer direction. 3. Conclusion Comrades and friends, as you have heard, a lot still needs to be done. We have learnt from our mistakes and we must look forward for improvement. The uncompleted continuous tasks, the forthcoming general elections, the new tasks that we must expect - all these are great challenges facing us and we can never tadde them unless we take stock of ourselves and take measures to rectify our shortcomings. However, I would like to draw your attention to two very critical elements that affect the functioning of any organisational machinery in the execution of its tasks. It is important that we think about these broad elements seriously. 3.1 Organisation and Management We must work towards improving our organisation in its administration and management of the various programmes we undertake. We must establish smooth lines of communication at all levels and up and down the leadership ladder. We must establish clearly defined departmental tasks with set targets of attainment within specified timeframes so that we can be able to evaluate or review our own performance over a set period. A work ethic illustrated by a high level of duty consciousness is desirable for any organisation and we should also strive towards that end. All these measures and many others unsaid will help in improving our delivery mechanisms. 3.2 Leadership Quality Very often and at all levels of Party structure we are called upon to select those we believe will guide us as leaders to carry out the various duties for the benefit of Party and country. in selecting our leaders we should always remember that we will be entrusting them with the Party's health and welfare for a significant period to come. The right people are those who will give service to the Party, who will design and implement effective programmes for the youth of Zimbabwe, and who are committed Party cadres ready to give all their worth in the interests of the Party. Sometimes, such people are difficult to come by. However, the problem is not that such people cannot be found - it is more to do with our ability and willingness to select them. After our deliberation today, I hope tomorrw this meeting will choose the right people for the right positions. People we will expect to give us service for the next five years. Comrades and friends, I hope this brief report over our past term of office will be of some assistance in our deliberations. Fl themii I Ziba w Ne s ZIMBABWE NEWS VOL: 25 NO. 4, 1994 elegates to the three-day ZANU PF National Youth League Conference elected the League's new national executive in what has been described by senior Party officials and delegates as the best organised and successful conference for the youth. Finance Secretary: Cde. (Mani Commissariat Secretary: Cde. (Midla Security Secretary: Cde. 1 (Masl External Relations: Cde. I (Mast Information Secretary Cde.i (Bula Transport Secretary: Cde. I (Mas% Production Secretary: Cde. I (Mata Education Secretary: Richa (Mast Health Secretary: Cde. I (Mas\ Economic Affairs: Cde. Legal Affairs: Cde. I (Mani Deputy Secretary: Administration Cde. I Only two of the thirteen posts were contested with the rest of the office bearers standing unopposed. Cde. Josiah Tungamirai was appointed by the Party's presidium as the National Secretary for the Youth League, with Kenneth Nyagura calanda) Finance George Chipadza nds) External Affairs irivangani Muduwa onaland West) Commissariat Kenneth Bute ionaland East) Security Absolom Sikhosana vayo) Information Kennedy Matimba ingo) Transport Rodrick Miso beleland North) Production rd Chirongwe ionaland Central) * Education Miriam Madheya dngo) Health Silas Mutendi (Midlands) Economic Affair, essica Chidza caland) Legal Affairs David Ndlovu (Bulawayo) Cde. Kembo Mohadi, from Matabelelancl South being elected his deputy. Cde. Ephraim 'Masawi (Harare Province) stood unopposed for the post of Secretary for Administration. The following is tfie list of the other members of the new executive: Cde. Colbie Ncube Cde. Bombshell Hokonya Cde. Elijah Joko (Mashonaland South) Cde Stanley Mafuko (Harare) Cde. Siboniwe Sithole (Mashonaland West) Cde. Leo Chiropa (Mashonaland Central) Cde. Langton Nyewera (Midlands) Cde. Moses Mutasa (Manicaland) Cde. Nicholas Kazviyo (Mashonaland East) s Cde. Richard Sibanda (Matabeleland South) Cde. Sydney Nyandoro (Mashonaland East) Cde. Joseph Msika, the Party's national chairman, was the returning officer. ZIMBABWE NEWS VOL: 25 NO. 4,1994 LIN '-diolud N(,\\"

Zimbabwe African National Union PF Resolutions for the Youth Conference 1994 chain of command in the administration of the affairs of the League, we call upon the Party to grant a full operation autonomy to the League; and thus have a direct link from the cell/village to the National Executive. Bulawayo b) Also worried of the lack of Youth representation in Government, albeit fully aware that establishment of Government ministries is the sole prerogative of His Excellency the President of the Republic of . .Zimbabwe, as Head of the Government, we hereby pray that consideration be given to setting up a Ministry of Youth Affairs. Bulawayo Harare Mashonaland West Midlands Government should introduce subjects with a technical bias at all school levels Mashonaland Easth Matabeleland South 1. Party PresidentConscious of the popular support that the President of the Party Comrade R.G. Mugage enjoys among the grassroot following of the Party and the people of Zimbabwe in general, we hereby resolve to affirm our loyality and faith in his continued leadership of the Party. Mashonaland East l-ovince Masvingo Province Mashonaland Central Province 2.1 Party Ideology a) Aware of the need for ideological - guidance in the shaping of our political economic and cultural values, we pledge our continued support for the principles of socialism. In pursuance of such principles, cognisance should be taken of our historical background and concrete political and economic conditions prevailing in Zimbabwe today. Mashonaland East Province Mashonaland Central b) Instead we urge the Party to concentrate on Seminars at national, provincial and district levels. Resource persons at such seminars to be knowledgable people from the Party environment and private sector to assist the Commissariat. N.B. The underlined is attributed to Midlands only. Midlands Mashonaland West Manicaland c) And further call upon the Party to clarify, by way of educating us, the ideology of social democracy. Bulawayo. 2.2 Chitepo Ideological College a) In order to mobilize youth and our people to support the Party against mushrooming opposition parties which cause confusion among the youth in particular, we urge the Party to implement ideological college. Mashonaland Central Mashonaland West Mashonaland East 3 Party Supremacy The Party should direct and supervise the Government on all programmes. Harare Masvingo 4.1 Re-organisation of League/Youth Affairs Youth a) Worried by the missing link in the 5.1 Education and Skills training a Education curriculum should be revised to include political economy and agriculture as basic subjects, also to introduce other subjects with a technical bias from the primary education level with a view to preparing pupils for self-reliance. b) To achieve the objectives of paragraph (a) we call upon Party and Government to build a technical col. lege and a youth training centre in each and every province. c) Procedures to be used in the selecv tion of candidates to youth training centres to be the same as those which were used by the now defunct Ministry of Youth, Sports and Culture. The Party should play a positive role in the selection process. Mashonaland East Matabeleland North Mashonaland Central Masvingo Mashonaland West Manicaland Midlands Harare Bulawayo Matebeleland South Continued on page 32 ZIMBABWE NEWS VOL: 25 NO. 4, 1994

Resolutions for the Youth Conference 1994 Continued from page 31 5.2 That primary education be made compulsory and students be assisted to choose their career fields at Zimbabwe Junior Certificates level. In addition Government should continue subsidizing formal education. 5.2 a) We further call upon Government to decentralise the awarding of scholarships to avoid corruption and that such scholarships should be given to the Party. Bulawayo Mashonaland East Mashonaland Central Harare Manicaland Mashonaland West Matabeleland South b) That in the light of employment prospects, polytechnics and other colleges should with immediate effect reverse the policy to exclude students, who in the past were allowed to continue studying while at the same time supplementing. Bulawayo 6.1 Youth Employment Bearing in mind that the education system is not preparing youths for meaningful role in employment and recognising that in order to achieve our socialist goals all human resources must be utlised tothe full in all spheres of national development. a) Government should clearly state its policy on the employment of youths and ex-combatants and that only recommended Party cadres from provinces should be employed in Party companies and at Party Headquarters. b) Party youths to be given first preference in case of casual jobs such as voter registration and the census programmes. Mashonaland Central Matabeleland South (c) The less educated to be given first preference when recruiting unskilled labour in Party companies. Bulawayo Harare Mashonaland Central Mashonaland East Manicaland 6.2 We, hereby urge Party and Government to have a youth national policy and thus have it enshrined in the constitution. Harare Mashonaland East 7. Land Redistribution (a) That land redistribution be made in Primary school education should be made compulsory and government should subsidise education at that level such a way as to enable young people to have access to it. Mashonaland East Matabeleland North Matabeleland South (b) That state land be leased to unemployed Party youths instead of government officials who are already rich. Bulawayo Mashonaland Central Mashonaland West (c) A quota system be introduced inland distribution and unemployment so that at least 85 percent of the land and all employment opportunities be preserved for blacks and that all barriers, cultural, traditional, legal and social that have actively hampered youth participation in national development be removed. Harare (d) That changes be made in the legal position of youths in relation to ownership of property, land rights and credit facilities. Harare Mashonaland East Matabeleland South Matabeleland North 8. Access to credit That the Party stands as guarantor for loans borrowed by young Party members who want to go into business ventures. Bulawayo Harare 9. Welfare Section The Party must cater for its members who are destitutes. Bulawayo 10. Rural Development That title deeds be granted to developers in growth points and incentives given to those wanting to start businesses in rural areas tax reduction et cetera. Mashonaland East Mashonaland Central 11. Youth Revolving Fund Government should re-establish the Youth Revolving Fund to assist in job creation by financing youth projects - also the youths should have access to the $400 million earContinued on page 33 ZIMBABWE NEWS VOL: 25 NO. 4, 1

Resolutions for the Youth Conference 1994 Continued from page 32 marked for small businesses development. Manicaland Midlands Mashonaland West Mashonaland East Matabeleland South Matabeleland North 12. Natural Resources That the Party should urge Government to ensure natural resources extracted from particular parts of the country by some companies are seen to benefit local people not only in terms of employment but by construction of public facilities such as schools, clinics and recreational centres. Mashonaland East Manicaland 13. That government scrap legislation requiring local authorities to build schools with not more than 21 , classrooms. Bulawayo 14. That people with a monthly income of $600 and less be entitled to assistance under SDF to obtain medical services and that this be extended to local authorities health centres. Bulawayo 15. Health Education: That health education be intensified to conscientise youths against AIDS and drug abuse. (b) Also government should address the problem of shortage of drugs in clinics and hospitals, and refurbish health facilities. Mashonaland East Mashonaland Central Masvingo Midlands 16. Employment of Children: Employment of children must be prohibited - this is prevalent In commercial farms. Mashonaland Central Matabeleland South Mashonaland West 17. Provincial and District Heroes That provincial and district heroes declaration be decentralised. Heroes' acres be maintained. Bulawayo Manicaland 18. Elections: Members who stand as independants for election should be dealt with severely. Mashonaland East Harare 19. That the Party shuns all forms of tribalism, sexism, nepotism, et cetera. Mashonaland West. 20. Party democracy, That democracy must be seen to be practised in Party elections. Vote buying must be prohibited. Bulawayo Mashonaland West Midlands. 21. Leadership Code: Subject to removal of paragraphs 8 section (a) to (h) and 9 we uphold the leadership code ethics. We strongly feel that this code is very relevant in our civilised and democratic society. Therefore we strongly urge that it be adhered to at all Party levels. Midlands Mashonaland East. 22. We condemn unreservedly Party leaders who go insulting one another through the mass media and thus cause divisions in the Party. We call upon the Party to apply strictly the Party code of conduct. Mashonaland East. 23. We hereby recommend that Air Chief Marshal 1. Tungamirai be reappointed as leader of National Youth League. Mashonaland Central. 24. That the Party acknowledges the contribution made by Mufibha; Chimbwido and ex-detainees to the liberation struggle by considering them for resettlement and financial assistance to enable them to start income _enerating projects. Mashonaland East Manicaland 25. We call upon government to pension ex-combatants. Bulawayo 26. We call upon the Party to urge government to consider exparamilitary trainees for recruitment into ZRP and Zimbabwe National Army. Mashonaland East Harare 27. We call upon the Party and government to take a re-look at the concept of national service with a view to reintroducing it. Midlands. 28. Communication: We call upon Party cadres to communicate with the people more The youth should have access to land ZIMBABWE NEWS VOL: 25 NO. 4, 1994 Continued on page 34 I

Resolutions for the Youth Conference 1994 Current health facilities should be refurbished to cater for increasing demand while the problem of drug shortage is addressed Continued from page 33 through Party structures than through the mass media. Harare 29. We call upon the Party to provide a car to each and every youth ,province and a bicycle. Harare Matabeleland South Mashonaland East 30. We call for improved working relationships between the members of the Youth League and the Zimbabwe National Army. 31. We call upon government to control the mushrooming of opposition parties and also monitor activities of certain churches whose activities are suspect. Mashonaland East. 32. Party leaders in provinces and districts should Jbe allowed to work for the Party. Harare. 33. The government should seek solutions to the problem of street kids. Mashonaland East Masvingo. 34. Youth League age group should be verified, older people should be made to join main organ of the Party. Mashonaland West. 35. That corruption in parastatals be eradicated. We call for review of the Maintenance Act. Mashonaland West. 37. We urge that the Youth League have a uniform like the Women's League. Masvingo. 38. We support the Party and government in their efforts to find peaceful solutions to many conflicts in various areas of the world. Midlands. 39. We call for exchange programmes with other countries. Masvingo. 40. We call upon government to speed up the implementation of the Matabeleland/Zambezi Water Project. Bulawayo. 41. Party sponsored Members of Parliament to stop negative attitudes towards the performance of the economy and assist to ensure the success of ESAP. Bulawayo. 42. We call upon a recount of the population of Bulawayo. Bulawayo. 43. We call upon the Party to urge government to make a provision for youth representation to be appointed by the President with no constituencies. 44. Urge government to ensure that retrenchments in employment situations must be in favour of youths. Masvingo. 45. That irrigation schemes be carried out in region 5 areas. Masvingo. ZIMBABWE NEWS VOL: 25 NO. 4, 199

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New showdowns brewing for South Africa By Linda de Hoyos, for the Executive Intelligence Review C mrade Nelson Mandela was inauguated on May 10, 1994 as the irst black president of the Republic of Soutb Africa, after the African National Congress (ANC) won a 62 percent victory over its opponents in the country's first multi- racial elections from April 26-29. During the period of the election process and immediately thereafter, Cde. Mandela has emerged as a symbol of, national unity and reconciliation, as South Africa emerges from international isolation. The ANC dominates a new government of national unity. The ANC won the overwhelming majority, but did not tally the two-thirds majority that would have enabled it to change the constitution unilaterally. The Inkatha Freedom Party (IFP) was also able to win the majority of the hotly contested state of KwaZulu/Natal, giving the IFP the look of a major contending opponent of the ANC down the line. The composition of Cde. Mandela's cabinet indicated the fragile balance in South Africa today. The unity government indudes six ministers from the former ruling National Party and three from the iFP of Zulu chief Mangosuthu Gatsha Buthelezi. Buthelezi has been named interior minister, which gives him significant political power. On the other hand, Thabo Mbeki, secretary- general of the ANC, and South Africa's former president, F.W. de Klerk were appointed first and second executive vice-presidents, respectively. Also named in the cabinet were leading members of the South African Communist Party, which holds major posts in the ANC. This includes Joe Slovo, housing and welfare minister and chairman of the SACP. He is known to have significant British backing and first suggested the idea of a national unity government. The cabinet appointments represent an attempt to-postpone the economic reckoning that will soon hit the country. In an effort to reassure the business community, Cde. Mandela kept Chris Stals as head of the Reserve Bank and also kept Derek Keys as finance minister. The London Financial Times hailed the decision to retain Keys, whom it described as a "tough fiscal disciplinarian ... (who) has halted the rise in government spending and reined in the budget deficit," as Cde. Nelson Mandela demanded by the International Monetary Fund (IMF). Economic issues central Such fiscal discipline will make it wellnigh impossible for the ANC to carry out its reconstruction and development programme, which promises housing and electricity to South Africa's longdeprived black population. An editorial in the Johannesburg Business Day complained that Cde. Mandela had already struck "a discordant note" in his inaugural address, "when he warned cabinet partners would have to accept the ANC reconstruction and development programme, failing which there would be serious strains". The government has named ANC professor Ben Turok, known for his opposition to the IMF, as head of the regional plans for the heavily populated PWV region. But, as the Financial Times happily noted, the ANC's "Jay Naidoo has been appointed minister without portfolio and is expected to oversee the ANC's development programme, though it is not dear how much power he will have over' finance minister, Keys." . The ANC has already outlined plans to bolster the living standards of the majority population. The new water and forestry minister Kader Asmal, of the ANC, announced on May 19 an effort to bring clean, safe water and sanitation to millions of deprived people in rural areas. The government, he said, would proceed with the Lesotho Highlands project designed to supply the Johannesburg industrial heartland with water. The ANC also wants to lift the value added tax on food and increase food sub.. sidies. It is seeking government funds in labour-intensive infrastructure projects in road-building and irrigation. It has also vowed to provide electricity to the rural population. But on the other side, the ANC has essentially pledged that its budget, to be presented on June 22, will adhere to the "mock budget" of the National Party, dating from March, which calls for cuts in government expenditure. While the ANC hopes to reshape government spending by significantly decreasing military spending, there is an inherent contradiction between the ANC's commitment "to deliver" and its also-stated commitment to abide by the free trade rules of the IMF. The British and Britishdominated business press of the country is already warning that if Keys or Stals were forced to resign over a collision between economic reconstruction and the demands of the IMF, this would be "a disaster for South Africa." But the British, whose corporations, such as Anglo-American, initiated the negotiations in 1985 that brought the ANC to power, believe they have their options covered. The May 5 Business Day noted that "there is a strong argument to be made that keeping cabinet Continued on page 37 ZIMBABWE NEWS VOL: 25 NO. 4, 1994

New showdowns brewing for South Africa Former South African president, Mr. F. W. de Klerk is now second vice president in the new government Continued from page 36 colleagues to their spending limits will take more than Keys' determination and understanding of the economy; it will require someone with deep ANC roots and party authority to have those limitations accepted in the cabinet and by an ex- pectant populace." whether the new South Africa can avert the'disaster that has collapsed eastern Europe and Russia at the hands of the IMF, will depend upon the ability of the ANC leadership to prove Business Day wrong. South Africa's Government of National Unity Cabinet announced by President Nelson Mandela, 11 May 1994 1.President ...... Nelson M andela (ANC) 2.Frst Deputy President ...... Thabo Mbeki (ANC) 3.Second Deputy President ...... Frederick De Kierk (NP) 4.M inister of Justice ...... Dullah Om ar (ANC) 5 M inister of Defence ...... Joe M odise (ANC) 6.Minister of Safety and Security...... Sidney Mufamadi (ANC) 7.M inister of Education ...... Sibusiso Bengu (ANC) 8.Minister of Trade, Industry and Tourism ...... Trevor Manuel (ANC) 9.Minister of Foreign Affairs...... Alfred Nzo (ANC) 1 OMinister of Labour...... Tito Mboweni (ANC) 1 .Minister of Posts, Telecommunications and Broadcasting ...... Pallo Jordan (ANC) 12.Minister of Transport...... Mac Maharal (ANC) 13.Minister of Provincial Affairs and Constitutional Development .Roelf Meyer (ANC) 14.Minister of Land Affairs...... Derek Hanekom (ANQ 1S.Minister of Public Enterprises g...... Stella Sicau (ANC) 16.Minlster of Public Service and Adm inistration ...... Zola Skweyiwa (ANC) 17.Minister of Housing ...... J oe Slovo 18.M inister of Public W orks ...... leff Radebe (ANd 1 9.Minister of Correctional Services ...... Sipho Mzimela (IFP) 20.M inster of Finance ...... Derek Keys (NP) 21.M inister of Agriculture...... Karal van Niekerk (NP) 22.Minister of Sport and Recreation ...... Steve Tshwete (ANC) 23.Minister of Home Affairs __...... Mangosuthu Buthelezi (IFP) 24.Minister of Water Affairs and Forestry ...... Kader Asmal (ANQ 25.M inlster of Health ...... Nkosazana Zum a (ANC) 26 Minister of Environmental Affairs ...... Dawle de Williers (NP) 27.Minister of Mineral and Energy Affairs ...... Pik Botha (NP) 28.Mn ster of Welfare and Population Development_...... Abe Williams (NP) 29.Minister of Arts, Culture, Science and Technology ...... Ben Ngubane (IFP) 30 Minister without Portfolio ...... Jay Naidoo (ANC) Deputy Ministries 1.Foreign Affairs ...... Aziz Pahad (ANC) 2.Provincial Affairs-...... Valli M oose (ANC) 3.Justice...... Chris Fismer (NP) 4.Home Affar ...... Penueg Maduna (ANC) SA ts, Culture, Science and Technology...... Winnle Mandela (ANC) 6.Finance ...... Alexander Erwin (ANC) 7.Environmental Affairs ...... Bantu Holomisa (ANC) &Land Affairs ...... Tobi Meyer (ANC) 9.F4ucation _ ...... Renler Schoeman (NP) lO.Safety and Security ...... Joe Matthews (IFP) 11 A griculture ...... Thoko M sane (ANC) 12.W elfare ...... Sankie Nkondo (ANC Rwanda --A chronology of colonisation and conflict igali - Following is a chronology of events in Rwanda, where rebel Rwanda Patriotic Forces (RPF) troops seized the airport and the Kanombe military barracks in their first major victory since their invasion from Uganda in 1990. 1500 - The Kingdom of Rwanda is established in the 16th century and the monarchy is kept alive under first German then Belgian colonial rule in the 20th century. 1899 - West Germany establishes colonial rule in Rwanda. 1916 - Belgium takes over territory under a League of Nations mandate. 1959 - Tribal warfare sends tens of thousands of Tutsis, closely identified with the monarchy, fleeing into exile. 1961 - The monarchy is formally abolished by a referendum. 1962 - Rwanda gains independence from Belgium, with Gregoire Kayibanda as president. 1963 - Further outbreak of tribal warfare sends even more Tutsis fleeing for their lives into neighbouring Uganda Tanzania, Burundi and Zaire. 1973 - Regional tensions lead to downfall of Kayibanda in a bloodless coup; since then power stays in hands of major general Juvenal Habyarimana. 1973 - Habyarimana founds new party, the revolutionary movement for national development (MNRD). 1978 - The MNRD becomes the country's sole party under a new constituContinued on page 38 ZIMBABWE NEWS VOL: 25 NO. 4, 1994

Rwanda - A chronology of colonisation and conflict Continued from page 37 tion. Habyarimana is confirmed as president in single candidate elections in 1978, 1983, and 1988, winning more than 99 percent of the vote. 1990 - Evidence of power struggles between elite clans of the Tutsis and Hutu and within the ruling MNRD party. Habyarimana quashes growing dissent by arresting journalists and banning newspapers which reported on famine in the south of the country. October 1990 - Uganda-based Rwanda patriotic front (RPF) rebels invade the tiny and overcrowded country demanding right to settle thousands of refugees, mainly from minority Tutsi tribe. The attack is repulsed and rebel leader Fred Rwigyema killed. August 4, 1993 - The government and the RPF sign an accord in the Northern Tanzanian town of Arusha to end years of civil war, allowing for power-sharing and the return home of refugees. President Habyarimana is slow in implementing accord protocols. November 1, 1993 - UN peace monitors. take up positions in Northern Rwanda to observe implementation of the peace accord. Observers are joined later by Belgian forces sent to former colony under UNAMIR (The UN assistant mission in Rwanda) mandated to police a ceasefire under the Arusha accords. December 30, 1993 - April 5, 1994 Transitional government agreed by both parties fails to take off with each side blaming the other for blocking its formation. April 6 - Habyarimana and neighbouring Burundi's President Cyprien Ntaryamira killed in a rocket attack on their plane at Kigali airport. Habyarimana's death triggers orgy of violence between Habyarimana's fellow Hutu tribesmen and the minority Tutsis, feudal lords until the 1959 uprising. RPF at the same time starts new offensive from the north. Hundreds of thousands of people are driven to exile in neighbouring Zaire, Burundi, Tanzania and Uganda. April 7 - Soldiers from presidential guard kill Prime Minister Agathe Uwilingiwimana with 10 Belgian peacekeepers. April 8 - Parliament speaker Venat Theodore Sindikubwawo declares himself in- terim president and names interim government. April 10 - France, Belgium and the United States start evacuating foreign nationals. April 21 - UN Security Council votes to reduce its peacekeeping force in Rwanda to 270 from 2 500 men. April 28 - RPF takes Kibuye, sending a surge of 250 000 terrified refugees into Tanzania in what the UN says is the biggest movement of homeless people within a 24-hour period. May 17 - UN Security Council authorises additional force of up to 5 500 to go to Rwanda to halt massacres. May 20 - Fight for airport begins. May 22 - RPF troops say it is too late to agree ceasefire allowing UN exclusive control of Kigali airport to allow for humanitarian supplies and military logistic arrangements. The RPF seizes airport and the Kanombe Barracks, main stronghold of Rwandan government army units in Kigali. ( Clinton extends China's MFN status W ashington - Here is the text of President Bill Clinton's announcement, Thursday, 26 May, on the renewal of China's most favoured nation trading status despite concerns over its human rights record: Today I would like to announce a series of important decisions regarding the United States' policy towards China. Our relationship with China is important to all Americans. We have significant interests in what happens there and what happens between us. China has an atomic arsenal and a vote and a veto in the UN security council. It is a major factor in Asian and global security. We share important interests, such as in a nuclear-free Korean Peninsula and in sustaining the global environment. China is also the world's fastest-growing economy. Over eight billion dollars of United States exports to China last year supported over 150 000 American jobs. I have received secretary Christopher's letter recommending, as required by last year's executive order - reporting to me on the conditions in that executive order. He has reached a conclusion with which I agree, that the Chinese did not achieve overall significant progress in all the areas outlined in the executive order relating to human rights, even though clearly there was progress made in important areas, including the resolution of all emigration cases, the establishment of a memorandum of understanding with regard to how prison labour issues would be resolved, the adherence to the universal declaration of human rights, and other issues. Nevertheless, serious human rights abuses continue in China, including the arrest and detention of those who peacefully voice their opinions and the repression of Tibet's religious and cultural traditions. The question for us now is, given the fact that there has been some progress but that not all the requirements of the executive order were met, how can we best advance the cause of human rights and the other profound interests the United States has in our relationship with China? I have decided that the United States should renew most favoured nation trading status towards China. This decision, I believe, offers us the best opportunity to lay the basis for long-term sustainable progress in human rights and for the advancement of our other interests with China. Extending MFN will avoid isolating China and instead will permit us to engage Continued on page 39 ZIMBABWE NEWS VOL: 25 NO. 4, 1994

Clinton extends China's MiFN status US president Mr. Bill Clinton Continued from page 38 the Chinese with not only economic contacts but with cultural, educational and other contacts, and with a continuing aggressive effort in human rights - an approach that I believe will make it more likely that China will play a responsible role, both at home and abroad. I am moving, therefore, to delink human rights from the annual extension of most favoured nation trading status for China. That linkage has been constructive during the past year, but I believe, based on our aggressive contacts with the Chinese in the past several months, that we have reached the end of the usefulness of that policy, and it is time to take a new path towards the achievement of our constant objectives. We need to place our relationship into a larger and more productive framework. In view of the continuing human rights abuses, I am extending the sanctions imposed by the United States as a result of the events in Tianannien Square. And I am also banning the import of munitions, principally guns and ammunition, from China. I am also pursuing a new and vigorous American programme to support those in China working to advance the cause of human rights and democracy. This programme will include increased broadcasts for radio free Asia and the voice of America, increased, support for non-governmental organisations working on human rights in China, and the development, with American business leaders, of a voluntary set of principles for business activity in China. I don't want to be misunderstood about this. China continues to commit very serious human rights abuses. Even as we engage the Chinese on military, political and economic issues, we intend to stay engaged with those in China who suffer from human rights abuses. The United States must remain a champion of their liberties. I believe the question, therefore, is not whether we continue to support human rights in China but how we can best support human rights in China and advance Former US president Mr. George Bush our other very significant issues and interests. I believe we can do it by engaging the Chinese. I believe the course I have chosen gives us the best chance of success on all fronts. We will have more contacts. We will have more trade. We will have more international cooperation. We will have intense and constant dialogue on human rights issues - we will have that in an atmosphere which gives us the chance to see China evolve as a responsible power, ever growing, not only economically, but growing in political maturity so that human rights can be observed. To those who argue that in view of China's human rights abuses we should revoke MFN status, let me ask you the same question that I have asked myself over and over these last few weeks as I have studied this issue and consulted people of both parties who have had experience with China over many decades: Will we do more to advance the cause of human rights if China is isolated or if our nations are engaged in a growing web of political and economic cooperation and contacts? I am persuaded that the best path for advancing freedom in China is for the United States to intensify and broaden its engagement with that nation. I think we have to see our relations with China within the broader context of our policies in the Asian-Pacific region, a region that, after all, includes our own nation. This week we've seen encouraging developments; progress on resolving trade frictions with the Japanese and possible progress towards stopping North Korea's nuclear programme. I am determined to see that we maintain an active role in this region in both its dynamic economic growth and in its security. In three decades and three wars during this century, Americans have fought and died in the Asian- Pacific to advance our ideals and our security. Our destiny demands that we continue to play an active role in this region. The actions I have taken today to advance our security, to advance our prosperity, to advance our ideals, I believe are the important and appropriate ones. I believe, in other words, this is in the strategic economic and political interests of both the United States and China, and I am confident that over the long run this decision will prove to be the correct one. - ZIANA El ZIMBABWE NEWS VOL: 25 NO. 4, 1994

Bosnia dustbin for a world of dirty politics Courtesy ofthe Independent osnia continues to live up to its reputation as a graveyard of Western politicians' careers: the latest controversy about the role of Yasushi Akashi, the UN SecretaryGeneral's special envoy to the former Yugoslavia, mirrors the diplomatic scandals that accompanied both his military and civilian predecessors. When Lewis MacKenzie left his post in the summer of 1992 as commander of the United Nations Protection Force, for instance, the Canadian general was accused by the Bosnian government of siding with the Serbs, and by ordinary Muslims of taking an active part in the rape of local women. His successors may have fared better, but all ultimately come to grief in one way or another for one simple reason: the mission they were seeking to complete was and remains utterly unachievable. The UN presence in Bosnia is now a political disaster: harassed by a US administration eager to do something, attacked by Western media which report events highly selectively, and expected to show sympathy for the Muslims 'without taking sides in the war. Former president, George Bush concluded in 1991 that the Yugoslav war was an exclusively European problem. Bill Clinton shares this view, with one difference: while Bush accepted that those who are not prepared to bite should not bark, America's current president continues to do a great deal of barking, with false teeth. With its strident calls for airstrikes, the US administration asserts that it wants to reinforce the uN's credibility. Far from it: Washington's policy is to use the UN as a justification for policies already decided by the president and his bumbling entourage. The recent plan to lift the arms embargo on the Bosnian government without consulting the Security Council is the dearest indication of this attitude. The Americans were right to object to Mr. Akashi's open criticism of their policies. Mr. Akashi should have saved his breath: most American commentators are now saying publicly what some notable US-ambassadors privately admit: that Clinton's policy in Yugoslavia is idiotic. The war in the former yugoslavia has cost many lives and destroyed vital infras- tructure and no end seems in sight The frustration of UN personnel is compounded by the selective media coverage of events. The Bosnian government is fully aware that only public pressure can draw the West even further into the war, and only Western military intervention can recreate its old republic. The Bosnian ambassador to the UN has everything that US television networks want: a handsome face, a good suit complete with floral tie, perfect oneliners delivered in fluent English and a determination to appear on every television programme in defence of his beloved "Baasnia". Media influence is the only effective instrument the Bosnians have and, as the chief victims in the current warfare, their efforts in this direction are understandable. But as every UN envoy in Yugoslavia knows, the Bosnian Muslims are not entirely the blameless characters the Western media make them out to be. UN personnel in Yugoslavia know that the famous attack on the bread queue in Sarajevo in May 1992, as well as the bombardment of a cemetery in that town, conveniently at the moment when Western journalists arrived on the scene, were probably not committed by the Serbs. More recently, the tragedy of Gorazde rightly aroused international indignation. But how many media networks reported the fact that the Bosnian authorities maintained a weapons manufacturing facility there, in contravention of the very idea of a safe haven? How many in the West know that the figures for the casualties in Gorazde were deliberately exaggerated by radio ham transmissions purporting to come from within the town, but actually being operated from outside? It is the Muslim government, not the rebel Serbs, which now refuses to sign a general ceasefire in Bosnia. The Muslims are currently amassing forces in nqrthern Bosnia for a new offensive. Bereft of allies, the Bosnians cannot be, expected to do other than resort to the traditional subterfuges of war. But that does not mean that Western governments - which are fully aware of these subterfuges - should act as though they are not taking place. Such complicity both restricts and distorts the UN operations on the ground. For example, last April Britain sent an RAF aircraft to evacuate many woundContinued on page 41 ZIMBABWE NEWS VOL: 25 NO. 4, 1994 By 7onathan Eyal

Bosnia dustbin for a world of dirty politics Continued from page 40 ed from Gorazde. The UN on the ground could not find enough victims to fill the plane. A dignified silence was maintained over the episode: it would have been a brave Western leader who would have suggested that the Bosnians had exaggerated the extent of the tragedy. Yet the discrepancies between the reality and its portrayal on Western television screens are now among the main frustrations for anyone dealing with Yugoslavia. It is, however, the duplicitous policies being pursued by all Western governments that have the most demoralising effect on the UN's ground troops. No Western politician believes that the old Bosnia can be recreated, but America, in particular, refuses to say so publicly. The hope is that the Bosnian government itself will accept the carving up of the republic, thereby relieving the West of a moral dilemma. Not surprisingly, the authorities in Sarajevo refuse to do anything of the kind. The UN is therefore left in a position of trying to douse the flames of warfare convincingly enough to calm public opinion in the West, but not so energetically as to lead the Muslims to believe that the West will come to their aid. The UN has reverted to its traditional role as the dustbin for all the world's inherently insoluble problems. It is not the reputations of Mr. Akashi or of General Rose that should be questioned but rather the conduct of all Western leaders, and America's President in particular. The author is Director of Studies at the Royal United Services Institute, London. A Serbian civilian takes a rest during a night guard near Caplfina town The sweet smell of success By Lucia Costanzo, Business Wiiter I ore than 90 years ago a French chemist, Rene Maurice Gattefosse, was working in the laboratory when a small explosion seriously burnt his hands. He plunged them into a jar of neat lavender oil which happened to be close by on the desk and was amazed at how quickly they healed without any apparent scarring. Following this findings, he made use of the healing properties of essential oils in his surgery during World War I, coining the term aromatherapy to describe the therapeutic use of aromatic oils. Aromatherapy is still highly valied in France, where practitioners also have to be qualified doctors. But the United Kingdom is now home to the fatest growing market for essential oils. There are now literally hundreds of specialist suppliers of such oils, as well as many companies which specialise in producing natural cosmetics based on the techniques of aromatherapy. Essential oils appear to work by speeding up the process of cellular regeneration, making the skin heal faster. Certain Continued on page 42 ZIMBABWE NEWS VOL: 25 NO. 4, 1994

The sweet smell of success A selection of aromatherapy products i Continued from paoe 41 essential oils also help to reduce inflammation and they are particularly beneficial for treating sore cuts, burns and bruises. Their anti- inflammatory properties also make them useful for relieving the pain of arthritis and rheumatism both inflammatory conditions affecting joints, bones, muscles and joint linings. Some essential oils are claimed to have a dramatic effect on the mind. Chamomile is said to aid relaxation, lemon provides a natural tonic and ylang-ylang is noted as an aphrodisiac. Aromatherapy is now one of the most popular natural or complementary medical therapies in the UK The therapy has become something of a national obsession. Many people consult trained therapists for a range of medical conditions; more still use the wide range of toiletry from Body Shop and cosmetics products containing essential oils now manufactured and marketed by United Kingdom companies. Frangranced air Aromatherapy has even been used in a trial on the London underground two years ago. Air fragranced with refreshing and revitalising oils such as lemon was pumped through train carriages to alleviate the frustrations of the passengers. Both specialist natural cosmetics retailers and well-known chains of chemists now market product ranges of soaps, bath additives and massage oils and creams all containing a small percentage of the natural essences. Boot$ the chemists, a chain of pharmacies with outlets in almost every town in the United Kingdom, has recently introduced its aromatherapy bath range which incorporates ylang-ylang, sandalwood, jasmine, rosewood, rosemary and juniper oils into standard toiletry formulations. A bubble bath and a body massage lotion is available in three variants, sensuous, relaxing and revitalising. The company claims these formulations provide an easy-to-use introduction to aromatherapy at very low prices. A similar approach is taken by the Body Shop, the specialist natural cosmetics manufacturer and retailer with shops across the United Kingdom and increasingly overseas. The company has recently introduced a variety of ready-blended oils and creams including an aromatherapy relaxing moisture cream to promote sleep and a relaxing warming cream to help ease aches and pains in the muscles. There are also oils blended with essential oils for use i n the bath or shower or rubbed into the scalp. Alleviate difficulties .The Body Shop claims that its products help alleviate the difficulties encountered by many first time users of aromatherapy. "The Body Shop is on a mission to clear away the mysticism and doubt that surrounds aromatherapy. Our new range of products proves that you don't have to have a degree in herbalism to use it. The idea is to make it accessible, understandable and easy," says a company spokesman. The Body Shop is especially concerned about the safe use of aromatherapy products. Some of the oils can cause miscarriage if used during early pregnancy, for example. Others can lead to epileptic fits in people prone to this conditionMany experts in the field claim that consumers need to take care when purchasing products containing essential oils. There are at present no UK or European guidelines for labelling of the products, standards or safety. With the increasing popularity of aromatherapy - it now ranks as the fifth most popular natural treatment in the United Kingdom - it is not surprising that companies want to cash in on the trend. The consumer must ask if the products contain sufficient essential oil to help their complaint and also if the blends really do contain the pure oil and not just a similar smelling chemical copy. Sweeter smell "Cheaper oils tend to have a sweeter smell artificially created by chemicals to Continued on page 43 ZIMBABWE NEWS VOL: 25 NO. 4,1994

The sweet smell of success Continued from page 42 resemble perfumes," says Teddy Fearnhamm of Saffron Oils, a company that sells oils worldwide by mail order. "We are all tempted by things that smell pretty and look nice but they may be of no value. The Aromatherapy Organisations Council wants to make sure that people get the right treatment and there are moves afoot to bring in legal requirements and standards." This view is backed up by Robert Tisserand, author of many books on aromatherapy and founder of the first company in the UK specialising in essential oils and associated aromatherapy products. The Tisserand range is now manufactured and distributed worldwide by Aromatherapy Products of Brighton using oils from organic sources. "Aromatherapy is for everyone but it is important to remember that the better the product, the more premium the price point and there are many "me too" products on the market that may be diluting the efforts of the traditional aromatherapy companies. Are the products genuine, do they have that natural pure essential oil smell or are they just pretty copies?" says a spokesman from Aromatherapy Products. Price variation Essential oils can vary dramatically in price. Some such as lavender can be relatively inexpensive. It is available from Aromatherapy Products for less than £4 for 5 ml and diluted in vegetable oil from the Body Shop for less than £2 for 10 ml. Yet others can cost nearly ten times as much. Rose oil can cost more than £100 for 5 ml, which is not surprising because it takes 2 kilogrammes of rose petals to produce 1 gramme of oiL The price of oils also varies according to the whims of nature. A disastrous lemon harvest in Sicily, where most lemon oil is manufactured, could easily quadruple the price of the oil overnight. This means that some companies may be tempted to substitute other chemicals or cheaper essential oils when the price goes up, simply to keep their blended massage oil at an acceptable price to the consumer. For example, lavender spike or lavandin may be used instead of lavender. This may well smell identical to the untrained but does not have the same therapeutic benefits. There is also danger that some oils may have lost their potency by the time they reach the customer. This is especially true for oils used in blended products such as soaps or bath oils. If sufficient care is not taken during the manufacturing process, the healing benefits of the oils can be destroyed, claim aromatherapy experts. Also the volatile nature of these oils means that they need to be kept out of bright light and hot places, preferably in dark glass bottles to prevent evaporation. Despite these drawbacks the popularity of aromatherapy in the United Kingdom continues to rise. The United Kingdom market is now demanding delicious smelling products that give the promise of rejuvination, relaxation or sensuality. But as is the case with many fashions, the buyer must be cautious. Is the delightful herbal smell the result of health-promoting essential oils for a subtle chemical copy? 0 N early five years after George Bush sent tens of thousands of American troops into Panama to remove General Manuel Antonio Noriega and the military-founded Revolutionary Democratic Party (PRD) from power, that same party was returned to office by Panamanian voters in presidential elections held on May 8. Elected president for a five-year term was PRD candidate Ernesto "Toro" (Bull) Perez Balladares. He received just over 33 percent of the vote, defeating Mireya Moscoso, widow of Panama's late would-be fuhrer, Armulfo Arias, 29 percent; Sals King Rueben Blades; and former Chase Manhattan Bank official Rueben Dario Caries. Three other candidates each got less than three percent. Although Balladares, a US-trained economist of free trade inclinations, disavowed Noriega and denounced the former Panamanian defence forces throughout the campaign, the perception inside and outside Panama is that the PRD was "Noriega's party". This was reintorced by the PRD's opponents, whose electoral propaganda hammered away on the theme that a PRD victory meant a return to the military governments of the past. General Emmanuel Antonio Noriega A few weeks before the election, for example, US-installed President Guillermo "Porky" Endara announced that he would have a "momentous" announcement in the next few days. Expecting the worst, Panamanians stockpiled food and water and sat down in front of their television sets on April 14, only to see Endara present a series of videos documenting the ties of Balladares and his running mates with the previous Noriega government. Thus, the elections provided a vindication of sorts for Noriega, currently a prisoner of war of the United States in Florida. The results- also demonstrate that Bush lied when he justified launching his New World Order by claiming that an invasion was necessary to free the oppressed Panamanians from the "hated dictator" Noriega. In fact, as US Democratic pre-candidate Lyndon LaRouche, an outspoken critic of the invasion, recalled in a May 12 radio interview, Bush went after Noriega beContinued on page 44 ZIMBABWE NEWS VOL: 25 NO. 4, 1994

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Th 's an fal of 1(rnz Banda; he fall of Hastings Kamuzu Banda from power in Malawi represents the end of an era for Africa which has been home to some of the most vicious ahd self-defying despots in the world. Africa's oldest and longest-serving president, who in 1971 proclaimed himself president-for-life and ruled the tiny Central African nation of nine million peo- pie with fear and unforgiveness brooking no opposition and incarcerating, eliminating and persecuting political opponents into exile, Banda failed to die in power as he had declared. His 30-year uninterrupted reign came to an unhappy end on May 17 when he lost to Bakili Muluzi (51) in an election forced upon him by the tide of democracy and multi-party politics sweeping the continent. Noriega's party wins elections Continued from page 43 cause the Panamanian leader refused to co-operate with "Bush's illegal operations in connection with the Contras," including "drug running". LaRouche said that Bush was "the Willie Horton of Panama" who "iled thousands of Panamanians by ordering a strike against the most densely inhabited tenement slum in Panama". Alas, the elections give Panamanian nationlists no reason for elation, because the architects of this "democratic experiment" of the New World Order prediscounted the results and rigged the race so that no matter who won, the policies carried out by the continued US occupation - through Endara's narcogovernment - remain unchanged. Virtually the first appointment Balladares made to his cabinet was that of Gabriel Lewis Galindo to the foreign ministry. Lewis Galindo was the Washingtonbased leader of the Civic Crusade, which provided cover for Bush's campaign against Panama, first by lobbying for a crippling embargo and economic sanctions, and then calling for the invasion. Having betrayed his country once, Lewis is now charged with getting Panama into the North American Free Trade Agreement. More importantly, he will be in a key position regarding the transfer of big chunks of valuable real estate from the former Canal Zone to Panama, a potential boondoggle worth several billion dollars. But, the key reason he got the job is to revise the 1977 Torrijos- Carter treaties (which he helped negotiate), for the United States to keep its military bases in Panama past the year 2000. US representative Charles Rangel (Democrat, New York) said at a conference shortly before the elections that "the US needs assurances that Panama can defend the canal". Panama cannot do so, since its army was destroyed by the US invasion and Endara. Rangel said that the US has susbtantial "military investments in Panama, and tens of thousands of people directly or indirectly depend on the US military there, so we just can't pull out". The only reason the treaty has not been renegotiated yet, he said, is because Endara "is perceived as a puppet of the United States. But, we will deal with this right after Panama's election". Former US President Jimmy Carter, in Panama to monitor the election, hailed Lewis Galindo as an excellent appointment. In fact, sources say, Lewis Galindo was appointed by Balladares as Carter's suggestion. Since Balladares campaigned by wrapping himself in the mantle of national hero Omar Torrijos, one wag commented: "That's the new meaning of Torrijos-Carter: use Torrijos to win the elections, and Carter appoints your cabinet." Indicating that Lewis Galindo is part of a package deal, Carter also announced the appointment of his long-time aide, Robert Pastor, as the new US ambassador to Panama. 0 Dr. Kamuzu Banda Banda becomes the last of three African despots who had elevated themselves to demi-gods and insisted on dying in power. Felix Houphouet-Boigny who ran a de facto one-party state system in Ivory Coast and died last year of old age was the only one who managed, while Habib Bourgiba of Tunisia was toppled in a palace coup in 1987 when doctors confirmed that he was senile and unfit to rule. By far the most ruthless and despotic of the three, 97-year-old Banda is the last of the independence struggle African leaders who had declared themselves life- presidents. -Under present political circumstances it is highly unlikely that any other African leader can declare himself life-president unless by some cruel atavistic resurgence, the continent reverts to the discredited one-party-state dictatorships. For many it is unbelievable that Banda, always in dark glasses and a trademark fly whisk in hand, who made his ministers and ambassadors go down on their knees in supplication when greeting or addressing him, the man who made sycophants out of the women "Mbumba" who. sang their voices hoarse and stomped their feet sore, for him at every public gathering, is finally on his way to political oblivion. Banda also joins the ranks of Kenneth Kaunda, Zambia's founding leader who ran a mildly dictatorial but corrupt oneparty-state system of government in neighbouring Zambia for 27 years until he was toppled in 1991 in the country's first multi-party elections in two decades by the dimunitive trade unions' boss, Frederick Chiluba. Continued on page 46 ZIMBABWE NEWS VOL: 25 NO. 4, 1994

The rise and fall of Kamuzu Banda Continued from page 45 Banda had brain surgery in South Africa last October and many Malawians believe he is senile, judging from his frequent lapses in memory. Magnanimous in victory President Muluzi, who assumed power on May 21, has said the "Ngwazi" will be retired with full benefits as a precedent to all those who will hold the highest office in Malawi. The UDF government is to work out a handsome package for Banda that would include some of the comforts enjoyed by a serving head of state. Muluzi has also said Banda is free to live in the Opulent Sanjika Palace in the commercial capital, Blantyre, for as long as he likes. Banda's era, from 1964 until he agreed to multi-party politics in 1993, was characterised by an authoritarian personal style of government. His absolute power was backed by his grip on Malawi's economy through the press holdings conglomerate, controlled by Banda and, which accounts for 30 percent of all Malawi's economic activity, including retail shops, hotels, office complexes and daily newspapers. In Banda's government, senior officials were liable to dismissal or imprisonment if the dictator perceived that they were building an independent power base or exhibiting a divergent line of thought. On more than two occasions in the seventies, Banda abruptly removed the secretary-generals of his ruling Malawi Congress Party (MCP) after their names were mentioned as possible successors. He also dissolved the entire Malawi cabinet on several occasions without explanation, taking over all the ministries before naming a new cabinet. Most capable Malawians chose to stay out of politics rather than submit to Banda's strict line. Those who fell. out of favour had no option but to flee to neighbouring countries. There are millions of Malawian refugees in neighbouring Zambia, Tanzania, Mozambique and Zimbabwe which hosts 2,5 million, according to latest figures from the Malawi High Commission in Harare. Many were economic refugees, for Banda's Malawi, with widespread starvation and acute drug shortages in hospitals and clinics, was among the poorest in the world, despite claims by the despot that he improved the living standards of all Malawians. During his reign, Banda, who did not speak any vernacular language but English which always had to be translated, also wore various prestigious crowns that he vain-gloriously bestowed on himself to underline his self-proclaimed immortality. He called himself and demanded Malawians to address him as "Ngwazi", the warrior, "Chatonda" (conqueror), "Lion of Malawi" and "Wamuyaya" (Who never dies). Banda also liked to call himself an elder of the church of Scotland but in May 1992, the church disavowed him, saying it was erroneous to describe him as an elder of the church given his widespread human rights abuses and self-deification. Since he returned to Malawi from 40 years self-imposed exile in Britain where he practised medicine, Banda for years maintained secrecy over his deteriorating health. "I am too busy to be ill - I am even too busy to die," he would declare. Even his recent illness which led to his brain surgery last October, was shrouded in secrecy until South African hospital authorities made it public while at home the nation was told that the president had gone abroad for a "routine medical check-up." Banda also had a lavish lifestyle, despite Malawi being one of the world's poorest nations. A bachelor president, who only had the powerful mama Cecilia Tamanda Kadzamira as his official hostess, Banda had a taste for affluence and his foes accused him of using government funds to lead an extravagant lifestyle, building about 13 state houses or palaces across the country which cost 18 million Kwacha to maintain each year. For example, his new residence built in the capital, Lilongwe, a showpiece of architectural design, took nearly two decades to complete and is said to have cost the government about 300 million Kwacha. Banda also had almost every major infrastructure named after him - Kamuzu Highway, Kamuzu Academy, Kamuzu International Airport, Kamuzu Stadium, Kamuzu Central Hospital. Banda always rejected a multi-party political system in Malawi arguing that it was unstable and would cause strife and corruption. Malawi would remain a one-party state whether the country's "friends or enemies like it or not," he once said. Banda's fall began in March 1992 when Catholic bishops in Malawi came out with a pastoral letter condemning his ruling MCP governr:ent's excesses, abuse of power and widespread human rights violations. This emboldened the once cowed and silent opposition to publicly press for a multi-party democratic system of government. Bowing to international pressure, and giving in to western donors who froze US$150 million in aid in May 1992 until Malawi's human rights record improved, he ordered political detainees charged and tried in an open court only two months later, a major improvement in Banda's Malawi where political opponents "rotted" in prison without trial. He also ordered a review of all repressive legislation and agreed to a referendum to assess whether Malawians wanted a one-party system of government or multi-party politics. On June 14, 1993, Banda reluctantly had to accept multi-partyism when Malawians voted overwhelmingly in favour of multi- party politics, preparing the way to the first plural general and presidential elections, a year later. Following the referendum, Banda declared an amnesty for thousands of political exiles, inviting them to return home for the first democratic elections since independence. From there, Banda's route to political oblivion was paved and on May 17, 1994, he reached the end of his road from life president to former president of Malawi. if you feel the need Zimbabwe News Magazine is here to provide you with adequate space for that vital link to your customers through advertisement. whether its a black & vhite or colour production we fulfil ZIMBABWE NEWS VOL: 25 NO. 4, 1994

The professor who enjoys linguistic joyriding By Lee Rodwell, LPS Special Correspondent xford's new Professor of Language and Communication is rarely lost for words - but ask her why she loves language so much and even she has to fumble for an explanation. "The use of language is an integral part of being human," says Professor Jean Aitchison. "Most people spend an enormous part of their life talking and listening. In a day, we might speak 100 000 words. Our inability to use words can affect our status in society. I know that doesn't explain why I enjoy language, but I do think it's very important." The chair at Worcester College that the professor now occupies has been endowed by Rupert Murdoch, better known to the British public as the man who owns "The Sun" newspaper. However, sniping cleverclogs who think the Professor might find fault with the notorious tabloid style of English used by ',The Sun" are soon put in their place. "I tell them 'The Sun's'use of language is impressive and vigorous," she says. Professor Aitchison has a particular interest in newspaper headlines since part of her work will be to research into key aspects of the language, especially that of the media. Above all, though, she sees her role as one in which she can help educate the people she calls lockkeepers of the modem world. These may be parents, teachers, journalists, civil servants, film makers - all those who filter and distil the flood of information which threatens to swamp our society. Prior to taking up her new post at Oxford, Professor Aitchison, 55, spent 27 years at the London School of Economics. A classics graduate from Girton College, Cambridge, she was the first lecturer and reader of linguistics at the London School of Economics (LSE). Yet despite her impeccable pedigree, there is nothing of the dry-as-dust academic about her. Scholarship tools Her study may be lined with books but the tools of her scholarshi I are the words people use - wherever they appear. This explains both her fondness for cartoon strips and her interest in the words children use. One of her recent project on the language of 11 to 14-year-olds looked at, amongst other things, the ways children Professor Jean Aitchison formed diminutives. Told that a "wug" was an insect, and asked to come up with a name for a very small wug, many suggested mini-wug or microwug. "Most adults," she says, "would have offered wuglet or even wugling." New words are all grist to her mill. She is fascinated by the way they are coined, approving of blendings like bruncH, joking that she wants to catch affluenza, "the disease of being too rich." She notes, too, the way words drift in and out of fashion (maxi is currently being superceded by mega, while mini survives) or undergo a subtle shift of meaning. "Words have always changed their meaning," she says. "I want to keep an enormous variety going." Not surprisingly, then, the professor is quick to disabuse people of the nation that her job is to lay down rules about how language should be used. She has little sympathy with those who behave like English-language police, tut-tutting when people use "prevaricate" instead of "procrastinate"; insisting on "might" instead of "may"; waylaying her with pleas to stop people talking about joyriding when they mean stealing cars. Grammatical forms She says: "People worry a lot about which grammatical forms to use, about swear words and about politically correct terms. Should sightless people be labelled visually handicapped or visually challenged? "Yet debates about these and other issues - such as children's education, standard English and Americanisms are often carried on at an emotional level, with preferences depending largely on a person's age and upbringing. "I believe it is a case of what is appropri- ate rather than what is right or wrong. For instance, 'would of' seems to me to be appropriate in novels where the words are used to reflect the way people speak, while 'would have' is more appropriate in other forms of written English." Professor Aitchison argues that trying to stop the process of change once it has begun is virtually impossible. What most people do, she says, is to find different ways of saying what they mean so that they avoid confusion. Instead of risking "prevaricate" or "procrastinate", for example, they learn to say "lie" or "delay". She also believes that people who have linguistic hobby-horses often fail to notice more important issues: "Many people who have a hobby-horse can get quite unbalanced over it and miss out on the truly important questions, like the extent to which they are being bamboozled by language, by metaphors carrying them along certain paths without noticing." Indian English Having taught for a time at Delhi and Hyderabad, the professor is well aware that English is not the same the world over. "There are many differences between Indian English and British English," she says. "For instance, in India. if you ask the shopkeeper whether your copy of 'The Times' has arrived, he may say 'No, but I'm expecting.' An English person would only use 'expecting' like this if they were pregnant. In England, most people wrongly assume there is only one form of English. In fact, the varieties of English ought to be something people can cope with without a fuss." By and large, says the professor, people who fuss about words make fools of themselves. She cites the case of the missionaries in Papua New Guinea who managed to delete "blari" (bloody) from pidgin. However, they failed to recognise "bagarup" (bugger up) and the word is still used for anything from a mix-up to an air crash. In English the word "tragedy" is probably the nearest equivalent - at least, as far as the popular press is concerned. And as Professor Aitchinson says: "Some people object to the word being used for a lost football match rather than something like the air crash disaster in Lockerbie, Scotland. "But if you look at what's actually happening, you see that 'disaster' is takingover from 'tragedy'. The language books after itself." l ZIMBABWE NEWS VOL: 25 NO. 4, 1994

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