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Economic Opportunities For All Under President Chamisa Government – ZimEye – Zimbabwe News

Economic Opportunities For All Under President Chamisa Government

13 May 2022

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FIX THE ECONOMY – HIGHLIGHTS OF THE CCC ALTERNATIVE
The illegal and grossly irrational economic measures announced by Mr Mnangagwa on 7 May 2022 point to an economy that has imploded.

As the alternative and a government-in-waiting, we wish to put forward an alternative CCC economic policy approach which will solve the nation’s economic crisis at its root.

Rethinking the economy
The CCC will offer a break from the present predatory order and a bridge that will accelerate the transformation and make Zimbabwe a stable, democratic and development-focused, modern nation.

We will reshape Zimbabwe through the creation of a shared vision and a sustainable transitional framework that will be the foundation of transforming the structure of our economy, eliminating poverty and enabling the pursuit of sustained, equitable and shared growth.

The new economic framework will be underpinned by a new governance culture and the creation of a consensus state.

Core features of the new governance culture will include respect for the rule of law and constitutionalism, building strong, independent institutions, devolution and equal development, the creation of a rights-based society, eliminating corruption, infrastructure transformation and the development and urbanization of rural areas.

Restoring confidence
The social contract between the state and citizens in Zimbabwe has broken down.

There is a lack of confidence or trust in the State, government and public institutions.

The lack of confidence finds expression in the thriving parallel market, acute hyperinflation which officially stands at 96% year on year, although economic experts have said it is much higher, in the region of 265%.

This is partly because the State and its institutions are corrupt and inefficient.

The lack of confidence and trust in the State and the failure of the State to meet its social obligations to the citizens has resulted in the majority of citizens operating outside the ambit of the State.

Poverty has compounded these problems. The World Bank reports that 49% of the Zimbabwean population lives in extreme poverty.

A CCC government will restore confidence in the government through ethical leadership, the creation of a consensus state where there is wide consultation with key stakeholders before policies are created or changed, the building of a shared and inclusive society and the creation of an economic environment that promotes opportunities for widespread prosperity, especially for the ordinary citizen.

Anchoring the economy on the democratic developmental state model
In addressing the economic challenges faced by Zimbabwe, the CCC accepts that tough decisions will have to be made.

In this regard, the ability of our Government to widely consult and negotiate with local partners will be key.

We will build the capacities of strategic state entities to ensure that they can effectively implement economic policies.

As we have learnt from other successful developmental models e.g. Estonia, we recognize that policy trade-offs will be essential.

Pillars of CCC economic framework
Under a CCC government, the economy will be anchored on macro-economic stability, fiscal discipline, resolution of the debt crisis, financial service sector reform, pension reform and social protection, currency reform, industrialization and alteration of the accumulation model, rationalization of the land reform program including securing land tenure for those who hold agricultural land, agro-industrial transformation, mining sector reform including beneficiation, job creation and formalization of the economy.

Zimbabwe Emergency Economic Rescue Program

Since the end of the GNU in August 2013, Zanu PF has pushed the economy into a state of disequilibrium and dislocation through ballooning debt, fiscal deficits, rampant and uncontrollable expenditure and stagnation.

Correcting the wrongs of Zanu PF’s flawed economic policy is a necessary pre-condition to moving forward.

In this regard, upon assuming office, a CCC government will embark on a short-term stabilization agenda upon which our economic recovery program will be anchored.

This will entail restoring macroeconomic stability and fiscal consolidation. Given the current budget deficit, fiscal adjustments will be necessary.

Fiscal adjustments will be achieved through a number of measures including fiscal consolidation by, inter alia, the pursuit of a primary balance and restoration of balanced budgeting, rationalization of expenditure and improving the expenditure mix, building capacity on revenue management and strengthening public finance management systems, taking measures to reduce debt and improving debt management to reduce the risk of inflationary pressures, crowding out of private sector activity and continued liquidity shortages, expediting State-Owned Enterprise reform, rationalization of the public service and the elimination of ghost workers to reduce the employment cost to 30% of total expenditure, expansion of the revenue base through increased productivity and expansion of the economy, for the short to medium term – scrapping the bond note and strengthening the multiple currency regime, Central Bank Reform including the urgent audit of RBZ assets and liabilities, export promotion, narrowing the current account and rationalizing the capital account, accelerating ease of doing business reforms and promoting policy coherence.

Financial Sector Reform
Upon assuming office, a CCC Government will immediately embark on a process to transform Zimbabwe into an attractive financial services centre adopting models similar to Mauritius and Botswana. We will create a vibrant venture capital sector to assist entrepreneurs.

The CCC will introduce policies and incentives to attract international capital into the local venture capital sector with an emphasis on creating new businesses in key areas such as tech, manufacturing, agro-processing, and mining beneficiation, among others.

We will strengthen the existing development banks and institutions through recapitalization programs, bringing back international development finance institutions.

The CCC will implement broad measures to strengthen oversight over the financial services sector by establishing an independent body, separate from the Central Bank to supervise financial institutions.

We will seek amendments to the Banking Act to enhance good corporate governance and strengthen corrective measures and stop measures that prejudice depositors.

Currency Reform
Zimbabwe has an ongoing currency crisis that is adversely affecting the economy and resulting in irrational outcomes such as multi-tier pricing and a multi-tier foreign exchange rate. To resolve this, the CCC will adopt both short and long term measures.

In the short term, the CCC will immediately scrap the bond note, return to the multiple-currency regime, rationalize the capital account, increase productivity, and grow the national GDP in order to build substantive reserves for the country.

We will also ring-fence USD bank balances to protect depositors against any further shocks.

The CCC recognizes that in the long term, it is not sustainable for Zimbabwe to continue to use a basket of multiple currencies as legal tender.

We are alive to the fact that the USD does exacerbate the challenges of high-cost structures as well as adversely affect Zimbabwe’s exports.

In the long term, we believe a complete solution to the Zimbabwean currency crisis lies in a currency model built on regional integration.

Central Bank Reform
The CCC will amend Banking legislation to establish an independent Central Bank with a governor, a single deputy governor and a strong monetary policy committee.

We will ensure that the Central Bank sticks to its core function of monetary policy as well as the management of the national payments system.

The CCC will enact legislation that prevents the central government from borrowing from the Central Bank and put an end to murky debt assumptions by the citizens.

Restoring savings
A CCC Government will restore a savings culture in the country. We will create an environment that protects the interests of savers.

Citizens must not face punitive measures from the financial system which makes them averse to savings.

In this regard, we will implement measures to promote financial inclusion including for the rural economy, establish a credible Credit Reference Bureau, restore the operation of savings accounts and promote savings instruments including paid-up permanent shares and other savings paper to ensure that savings are at least 25% of the national GDP, monitor fee charges and lending rates to avoid arbitrage and usurious rates, restore mortgage finance facilities, return consumer lending and credit finance.

Fiscal Reforms
Fiscal consolidation is one of the most urgent and critical elements of stabilizing the Zimbabwean economy.

In this regard, a CCC government will reintroduce balanced budgeting to limit the exposure of the Government to the Central Bank, rationalize the public service, suspend all costly quasi-fiscal activities, rationalize Government expenditure, build capacity on budget management, expand the revenue base through measures to improve productivity and introduce a citizen portal for feedback on public services.

Conclusion -a CCC Government will create economic opportunities for all
The CCC will promote a market-led, entrepreneurial society that is socially just and inclusive.

This includes policy formulation that will deliberately take into account those who have previously had unequal access to opportunities by reason of gender, ethnicity, region, race and other points of disadvantage.

We will do this mindful of the fact that creating opportunities requires the construction of a stable and growing economy.

This also requires the state to ensure that there is adequate housing, a sustainable and clean environment, food and the realization of all socio-economic rights that will improve the daily life of all citizens.

Fadzayi Mahere
National Spokesperson

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Americans' support for Russian sanctions falters as the economy takes the battering – The Zimbabwe Mail




WASHINGTON (AP) — Americans are becoming less supportive of punishing Russia for launching its invasion of Ukraine if it comes at the expense of the U.S. economy, a sign of rising anxiety over inflation and other challenges, according to a new poll.

While broad support for U.S. sanctions has not faltered, the balance of opinion on prioritizing sanctions over the economy has shifted, according to the poll from The Associated Press-NORC Center for Public Affairs Research. Now 45% of U.S. adults say the nation’s bigger priority should be sanctioning Russia as effectively as possible, while slightly more — 51% — say it should be limiting damage to the U.S. economy.

In April, those figures were exactly reversed. In March, shortly after Russia attacked Ukraine, a clear majority — 55% — said the bigger priority should be sanctioning Russia as effectively as possible.

The shifts in opinion reflect how rising prices are biting into American households — surging costs for gas, groceries, and other commodities have strained budgets for millions of people — and perhaps limiting their willingness to support Ukraine financially. That may be a troubling sign for President Joe Biden, who on Saturday approved an additional $40 billion in funding to help Ukraine including both weapons and financial assistance. The poll shows low faith in him to handle the situation, and an overall approval rating that hit the lowest point of his presidency.

“We’re killing ourselves,” said Jeanette Ellis-Carter, a retired accountant who lives with her husband in Cincinnati, Ohio. “We can help other people, but in helping other people, we have to know how to help ourselves. And we’re not doing that.”

Ellis-Carter, 70, noted that annual inflation topping 8% would erase any cost-of-living adjustment for retirees, especially with the rising costs of health care and food. She continues to do accounting work but has lost small-business clients who no longer can afford to hire her.

The poll shows wide majorities of U.S. adults continue to favor imposing sanctions on Russia, banning oil imported from Russia and providing weapons to Ukraine. And most U.S. adults continue to say the U.S. should have a role in the war between Russia and Ukraine: 32% say the U.S. should have a major role in the conflict, while 49% say it should have a minor role.

But there’s muted support for sending funds directly to Ukraine. Forty-four percent of Americans say they favor sending funds, while 32% are opposed and 23% are neither in favor nor opposed.

The new poll shows just 21% of Americans say they have “a great deal of confidence” in Biden’s ability to handle the situation in Ukraine; 39% say they have some confidence and 39% say they have hardly any.


“Sometimes we get involved in things that we really shouldn’t, and it’s going to make things worse,” said Angelica Christensen, a 33-year-old from Ithaca, New York. “We need to focus right now on building up our economy.”

The U.S. and European allies have imposed several rounds of sanctions on Russia, cutting off major banks from global transactions and going directly after Russian President Vladimir Putin, top leaders, and their families. The U.S. also banned the importation of Russian oil.

While Russian oil makes up a small part of America’s total energy imports, the ban comes as gas prices have surged in recent months, hitting $4.71 per gallon, or $1.61 higher than a year ago. Supply chain problems and increased economic demand as COVID-19 restrictions ease have contributed to rising prices. Biden and many Democrats have accused gas companies of price gouging, while Republicans say the White House should support increased domestic oil and natural gas drilling.

Overall, 45% of Americans approve of Biden’s handling of the U.S. relationship with Russia, while 54% disapprove. That’s held steady each month since the conflict began. Seventy-three percent of Democrats and 15% of Republicans approve.

Shantha Bunyan, a 43-year-old from Loveland, Colorado, said she still supports Biden and believes he’s performed better than former President Donald Trump. She’s heard jokes that the most expensive place to visit in town is the local gas station. But Bunyan, who spent years traveling abroad before the pandemic began and lived for a month in Moscow, said she believes the U.S. has to continue to sacrifice to support Ukraine’s resistance.

“We seem to think that everything that goes on in the world isn’t going to affect us and that we live in some sort of a bubble,” she said. “It seems to me that anything that happens in the rest of the world is going to affect us. Unless we do something proactive, our economy is going to be affected anyway.”

But Jackie Perry, a 62-year-old from Centre, Alabama, said while she sympathized with Ukrainians and believes Russia was unjustified in launching its invasion, the White House needed to focus more on the economy. She has had to cut back on driving because gas is too expensive.

“They don’t have to worry about the price of gas,” she said about the Biden administration. “If they were more interested in the people that they’re supposed to be serving, our gas wouldn’t be that high.”

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The AP-NORC poll of 1,172 adults was conducted May 12-16 using a sample drawn from NORC’s probability-based AmeriSpeak Panel, which is designed to be representative of the U.S. population. The margin of sampling error for all respondents is plus or minus 4.0 percentage points.


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Zimbabwe's Acardia Lithium Project to promote employment – Construction Review

The Arcardia Lithium Project in Zimabawe will undergo major construction works that will generate over 1000 new jobs. This is after Huayou, a Chinese corporationmade the $372 million acquisition.

Huayou, a worldwide firm headquartered in Tongxiang, China, announced recently the acquisition of the Arcadia lithium project from Prospect Resources Plc and minority shareholders. Following the acquisition, the business stated that it would invest $300 million over the following year to develop the mine and build a processing plant.

Arcadia Lithium Project mine capacity

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The Arcadia Lithium Project is located 38 kilometers from Harare and is an open put mine. It is considered to have the largest hard rock lithium resource in the world.

According to the firm, the mine would have a capacity of 4.5 million tonnes of ore per year, which translates to around 400 000 tonnes of lithium concentrate per year. Huayou’s large investment has the ability to drastically impact the local community and promote Zimbabwe’s economic growth. President Mnangagwa presided at the project’s groundbreaking event in April 2018, which fits in with his “Zimbabwe open for business” credo. Lithium is strategically important to Zimbabwe’s economy, and it is a critical component of the Second Republic’s goal of developing a US$12 billion mining industry by 2023.

Read Also Revival of closed mines in Zimbabwe on the cards

The mineral, whose popularity has skyrocketed in recent years due to rising demand in the manufacture of electric vehicles, is estimated to contribute $500 million by that time. Notably, mining, in general, is an important aspect of Zimbabwe’s economy, accounting for more than 75% of the country’s foreign exchange profits and at least 12% of GDP. Huayou’s Arcadia project is Africa’s most advanced lithium project, and it will significantly boost Zimbabwe’s standing as a major worldwide supplier of rechargeable lithium minerals, which is presently the world’s fifth-largest producer with a single working mine (Bikita Minerals).

Huayou stated that the Arcadia project would be executed with great attention to the essential environmental care to restrict harmful emissions to a bare minimum. The corporation has also vowed considerable expenditures on cutting-edge technology to generate lithium concentrate and has committed to ensuring that information is passed on to its staff. The Chinese battery minerals company stated that individuals from the local community and the surrounding area would be given preference for employment at the mining site in Goromonzi, 38 kilometres east of Harare.

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Teachers Blast Mthuli Ncube – ZimEye – ZimEye – Zimbabwe News

Teachers Blast Mthuli Ncube

24 May 2022

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Teachers’ unions on Sunday expressed anger over Finance and Economic Minister Mthuli Ncube’s claims that the Government has done a lot to improve teachers’ conditions of service.

Last week Ncube told Parliament that teachers were never paid US$540 before October 2018 when the Government effectively brought to an end the policy that had placed bond notes at par with US dollars.

Teachers and other civil servants are demanding the restoration of their pre-October 2018 salaries.

Progressive Teachers Union of Zimbabwe (PTUZ) secretary-general Raymond Majongwe accused Ncube of creating falsehoods. Said Majongwe:

He can’t create falsehoods. If he isn’t aware that we earned US$540, he can go back to government files and see that.

Soon, we’ll be told that we are not Zimbabweans. The so-called middle-income economy can’t be achieved without teachers.

Our families are here and we want the country’s wealth to be shared equally.

Educators Union of Zimbabwe secretary-general Tapedza Zhou told NewsDay that it was Ncube who was misleading the nation. He said:

Mthuli Ncube should not misinform the nation and himself as well by some cheap semantics.

To then claim that they have done a lot to improve salaries for civil servants when he presided over the loss of value for the local currency makes us want to know if the minister is good at addition and subtraction.

Amalgamated Rural Teachers Union of Zimbabwe president Obert Masaraure accused Ncube of arrogance. He said:

The statement is reckless and hinges on arrogance. It is a fact that the cost of living is rising both in US$ and local currency terms.

Zimbabwe Union of School Heads secretary-general Munyaradzi Majoni said:

The statements are not only untrue but unfortunate. We don’t know the technical explanations he will use to justify his false assertion on pre-October 2018 salaries. – NewsDay

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