Tuesday, August 20, 2013

(NEWZIMBABWE, REUTERS) Election ‘seriously compromised’: ZESN
01/08/2013 00:00:00
by Staff Reporter I Reuters

WEDNESDAY’S election was "seriously compromised" with up to a million people prevented from voting, local observer group, the Zimbabwe Election Support Network (ZESN), has said.

Most of those turned away were in urban areas, where support for Prime Minister Morgan Tsvangirai is strong, said the group, which had 7,000 observers.

It noted that fewer voters were rejected in rural areas, seen as strongholds of President Robert Mugabe.

Mugabe's allies are already claiming a victory in Wednesday's poll.

"We've buried the MDC," a senior party source told Reuters news agency.

It is illegal to publish unofficial results. The electoral commission has five days to declare who won the poll.
Regional observers have praised the peaceful nature of the election.

In a statement on Thursday, the Zimbabwe Election Support Network (ZESN) said that potential voters were turned away from 82% of urban polling stations.

In rural areas, it said, the percentage was less than half that.

"The election is seriously compromised," ZESN chairman Solomon Zwana said.
Mugabe, 89, has pledged to step down after 33 years in power if he and his party lose.

Zanu PF and the MDC have shared an uneasy coalition government since 2009 under a deal brokered to end the deadly violence that erupted after a disputed presidential poll the previous year.

The first round of the 2008 poll was also praised for being peaceful - trouble broke out after the results were announced, with Tsvangirai gaining more votes than Mugabe.



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(NEWZIMBABWE) MDC-T cries fraud as Zanu PF claims landslide
01/08/2013 00:00:00
by Reuters

PRESIDENT Robert Mugabe's Zanu PF party claimed a landslide victory on Thursday in Zimbabwe's elections, but its rival, Prime Minster Morgan Tsvangirai's Movement for Democratic Change (MDC), said there had been "monumental fraud".

Wednesday's voting was peaceful across the southern African nation, but the early conflicting claims from the two sides heralded an acrimonious dispute over the outcome and raised fears of a repeat of violence that marred a 2008 election.

Releasing unofficial results early in Zimbabwe is illegal, and police have said they will arrest anybody who makes premature claims about the result. Election authorities were due to announce results within five days from Wednesday.
But a senior source in Mugabe's Zanu PF party, who asked not to be named, said the outcome was already clear.

"We've taken this election. We've buried the MDC. We never had any doubt that we were going to win," the source told Reuters by phone on Thursday.

Riot police took up positions outside the party's headquarters in central Harare and other key locations in the capital. MDC offices appeared to be almost deserted.

An independent election monitor in Zimbabwe, who also could not be named for fear of arrest, said early results were looking like a "disaster" for Tsvangirai, who was making his third bid to unseat the 89-year-old Mugabe.

Responding to the Zanu PF claim, a high-ranking source in Tsvangirai's MDC party described the election as "a monumental fraud".

"Zimbabweans have been taken for a ride by Zanu PF and Mugabe. We do not accept it," the source, who asked not to be identified, told Reuters.
The MDC was to hold an emergency meeting later on Thursday.

Several political sources told Reuters key MDC members had lost their seats, even in the capital, Tsvangirai's main support base since he burst onto the political scene 15 years ago.

The head of an African Union observer mission said late on Wednesday the polls appeared at first glance to be "peaceful, orderly and free and fair" - an assessment at odds with the view of the MDC and of independent entities monitoring the poll.

In Thursday, the Zimbabwe Election Support Network (ZESN), the leading domestic monitoring agency, said the credibility of the poll was seriously compromised by large numbers of voters being turned away from polling stations in MDC strongholds.

"It is not sufficient for elections to be peaceful for elections to be credible," ZESN chairman Solomon Zwana told a news conference. "They must offer all citizens... an equal opportunity to vote."

The United States, which has sanctions in place against Mugabe, had also expressed concern before Wednesday about the credibility of the vote, citing persistent pro-Zanu PF bias in the state media and partisan security forces.

Other worries centred on the voters' roll, which was meant by law to be released in electronic form to all parties before the poll, but which has still not been made available.

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Monday, July 22, 2013

(NEWZIMBAWE) Election battle: JUICE versus Indigenisation
09/07/2013 00:00:00
by Garikai Chengu

THE upcoming general election will be a defining moment for Zimbabwe. The two main political parties have two completely different economic visions for the nation’s future. For a moment, let us observe, without political judgment or party bias, our country’s options for its future.

One party is promoting Jobs, Upliftment, Capital Investment, and Environment, which is termed the JUICE plan. JUICE aims to increase foreign investment, so as to reinforce domestic production and create new jobs. The other party wants to democratize the economy and ensure that indigenous Zimbabweans own the nation’s land, mineral resources, and corporations.

Our parents’ generation aspired to become lawyers, doctors, teachers, and engineers – persons of standing in society. The political party advocating JUICE would seek to broaden opportunities for people to access these jobs.

On the other hand, the party pushing for Indigenisation, believes that Zimbabweans must ensure that they have access to these jobs and that their children inherit an even greater future.

Under Indigenisation, Zimbabweans will be educated and empowered to not only hold these higher paying jobs but also to aspire to run law firms, set up medical practices, create engineering firms, and build centres of scholastic excellence.

In short, Zimbabweans will become the owners and entrepreneurs, rather than CEOs and employees.

The pro-JUICE party argues that Zimbabwe needs to attract foreign investment by selling its capital assets to foreigners, in order to “balance its payments.”

Such an approach can be compared to a previously wealthy family selling off its antique furniture and silverware in order to maintain its lavish lifestyle. The problem with this approach is that when a country sells off its capital assets, this negatively affects the nation’s finances in the future, as “rents and dividends” increasingly hemorrhage out of the country.

The pro-Indigenisation party wants these rents and dividends to remain in the country and flow directly to communities and employees. By transferring share ownership from foreigners to locals, Indigenisation will stimulate domestic demand, thereby boosting economic growth and reducing unemployment.

Simply because for every share that is in foreign hands, the nation hemorrhages disproportionate amounts of rent, dividends and profits to bank accounts in far-away lands.

On the other hand, local shareholders are more likely to save their rent in a local bank, spend their dividends on domestic goods, and invest their profits in local businesses.

Over the next Presidential term, the Indigenisation policy is estimated to create a value of $7.3 billion from the Indigenisation of 1,138 companies, across fourteen key sectors of the economy.

The Indigenisation Programme will transfer over $2 billion from foreign companies to local communities in the mining sector alone. Community Empowerment Trusts will use these funds for building schools, equipping clinics, and paving roads.

Just recently, government announced that Indigenisation is going to pour $100 million into Zvishavane from the Mimosa platinum mine's Community Trust.

One could ask proponents of the JUICE plan how many hundreds of years it would take the profit-driven foreign investors to invest $100 million into this local community for non-profit, development projects?

As Indigenisation shifts through the gears in 2013 and beyond, hundreds of millions of dollars will flow into the nation's Sovereign Wealth Fund (SWF) from the Indigenisation of banking, manufacturing, telecoms, retail, tourism and other areas.

A SWF is a state-owned investment fund, composed of financial assets, such as stocks, bonds and property, which will benefit the country's local economy and citizens.
Zimbabwe's Sovereign Wealth Fund has the potential to become one of Africa's largest.

The government has already made the mandate of the financial technocrats that will run the Wealth Fund very clear: invest in jobs here at home and make profitable investments abroad. In fact, indigenization is primed to create an estimated 2.2 million new jobs.

However, the ace up the indigenisation programme’s sleeve, and the reason why it is a stronger hand than JUICE, is neither the community trust, nor the Sovereign Wealth Fund.

The trump card is the National Indigenisation Fund’s plans to stimulate small business growth by promoting entrepreneurship, especially amongst women, youth, the underprivileged, disabled and orphans.

In today’s global, knowledge-based economy, entrepreneurs play a vital role in creating a new currency: ideas. Zimbabwe’s best way to be globally competitive and create jobs is not foreign investment or lower prices but new ideas.

According to a recent report by the U.N.'s trade body "Foreign Direct Investment in Africa: Performance and Potential", the single biggest driver of job creation on the continent has been local African entrepreneurs, not foreign direct investment. In fact, a small number of innovative Zimbabwean start-up companies account for a disproportionately large number of new job creation.

So why then does JUICE’s investment and jobs plan shun the real engine for job growth, only to put foreign investors in the economy's driving seat?

Local ownership through Indigenisation creates jobs, boosts entrepreneurship, and ensures that Zimbabweans have the lion’s share of an ever-growing economic pie.

Reliance on foreign investment artificially fattens that pie. Zimbabweans may benefit from the odd piece of the pie, here and there, by way of employment; but eventually, the foreign owners of that pie will repatriate rent, dividends and profits, leaving Zimbabweans back to square one. Foreigners would own Zimbabwe’s wealth, yet again.

In a matter of weeks, Zimbabweans will go to the polls to choose which economic vision they believe best serves the nation.
Garikai Chengu is a Fellow of Harvard University's Du Bois Institute for African Research. Garikai can be contacted at chengu@fas.harvard.edu

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