Jan Raath in Harare
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President Mugabe has shored up his election campaign with a handover of millions of pounds of imported vehicles, machinery and cattle paid for with money seized from private companies and local and international aid agencies, business sources say.
On Saturday Mr Mugabe, 84, presided over the distribution of 500 tractors, 20 combine harvesters and an array of modern farm equipment as well as 50,000 ox-drawn ploughs, 60,000 ox carts, tools, cattle, buses, motorcycles, generators and diesel.
The goods were to be distributed around the farming districts, he said, under the agricultural mechanisation programme, which would produce “the sound of machinery tilling the land in places far and wide and announcing with an irreversible finality that our land has returned to us”.
In two similar handouts last year —- of £12.5 million of equipment —- the main recipients of the modern machinery were members of the ruling elite in Zimbabwe. Human rights organisations said that peasant farmers were forced to chant party slogans to qualify for the manual implements.
No indication was given of the value of the handout on Saturday. John Robertson, an economist, said: “They must have paid cash [in hard currency] because no one anywhere will give the Government credit. It's a desperate attempt at vote buying.”
Mr Mugabe, after 28 years in power, is standing for another term in elections on March 29. He is challenged by Simba Makoni, his former finance minister and Morgan Tsvangirai, the pro-democracy leader. Mr Makoni hopes to capitalise on the despair within the ruling Zanu (PF) party.
With the agricultural and mining industries in ruins, the coffers drained by excess and its international credit ratings exhausted, there is one source of finance left —- the foreign currency bank accounts of private companies.
The money is routed into commercial banks via the central bank, which is under the control of Mr Mugabe.
“Every company that has tried in the last two months to draw on its export earnings has been told by their bank that the Reserve Bank of Zimbabwe [the central bank] says it can't be done at the moment because they don't have the money,” Mr Robertson said.
Bankers said that central bank agents have been buying foreign currency from black market dealers in the past month to pay for the re-election costs of Mr Mugabe.
At the time of the latest acquisition the Government has been struggling to pay for imports of grain and electricity and to supply drugs for hospitals.
A Cabinet minister complained last month that the equipment handed out last year was being used as transport and parked outside beer halls “instead of tilling the land”.
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'But,tell me,what black man in his right mind woud not vote for a governmet that gives him land,a tractor or a combine harvester for free. '
Alton.
One that can see through the gifts as an empty gesture or ploy designed to enable a madman to keep control of a country he has ruined. These people are working themselves out of poverty that has been created by Mugabe's disastrous policies. Please don't come back with a bleating remark about sanctions by the West have destroyed the economy etc. They are targeted sanctions aimed at the government.
Gareth, UK,
Its not true that every family has a member living abroad. However what is true is that those with family members have a better living compared to those without. Families without outside help have been at times wiped out has anyone given any thought to that.
Mapundu, Manchester,
Alex McHugh, Edinburgh, Scotland
Funds stolen from who?
Ezhi Opfu, London, UK
Anecdotal statistics say that diasporean Zimbabweans remit no less that 20% of their income to their families back home through unofficial routes.This income lands in Zimbabwe either as hard forex or as real goods like food, clothes, equipment,cars etc.
And if it is true that 3 million out of the total 12 million Zimbabweans are living outside,then almost every family has an economically active member living outside.
Add to this the fact that most Zimbabweans living outside are very educated and are earning very decent salaries(thanks to Mugabe's deliberate heavy investment in education in the 80's and 90's)
Wake up to this fact and you will soon discover the unofficial vibrancy of the Zimbabwean economy that I am talking about.
And you will also begin to understand how an economy that has been diagnosed as 'collapsed' is still able to pay for its imports cash upfront.
..and you will also understand why the people have not risen up against the government.
Alton Hadzisa, London, UK
Alex appears to have a very superficial view of Zim . The 30% (a questionable figure) of able bodied that he refers to are making a contribution with their remittances. However, the people who are contributing a hell lot of the foreign currency are the cross border traders and most of these are women. Women have been cross border traders since independence.
Going to places like South Africa is not a post 2000 event. You will now find Zimbwean women traders in all corners of the globe.They are using their wealth to start businesses, support their families, educate their children and to develop their communities. For gender equality and empowerment check out Zimbabwean women. They are an embodiment of self help/ empowerment and they are demonstrating what can be achieved when one self helps and not wait for aid or charity. The women have been able to do so because they are educated and have been beneficiaries of an excellent post independence education and are not "handout clients".
chenzira, London,
Hadzisa the forex flows from remitances from thousands of people who indirectly or directly have been forced out of Zimbabwe. What smacks about this policy is not necessarily that blacks are being given these tractors etc for "free", but the opportunity cost of such a move.
It is obvious that ZANU is buying this foreign currency on the parallel market, which increases the effective exchange rate and this translates into the high inflation figures we now see. Any perceived benefit of increased farm produce is already eroded with high inflationary pressures, but do ZANU care. NO. as long as they win the next election. What a shame.
Fatso, belfast, antrim
Alton - Zimbabwe is 'unofficially' vibrant because 30% of the able bodied population outside of government and his handout clients now tilling the land with equipment bought with stolen funds, have fled to other countries and now send remittances back to support the remainder who are largely unemployed. You don't have to be a bookonomist (sic) to realize that Mugabe is running a downwardly mobile parasite state feeding on the misery of the majority for the benefit of the few. Go Bob! You make the last despicable lot look tame.
Alex McHugh, Edinburgh, Scotland
Feedback from Zim is that the majority of the relevant electorate are very pleased with the farm mechanisation program because the people are being given the tools to self help ,work themselves out of proverty and not wait for aid. The saying goes that "give a man a fish and you feed him for the day but teach him how to fish and he will never go hungry".
Begging bowl syndrome has been a mitigated disaster for Africa.
The majority of Zimbabweans want peace and stability and do not want to be preached to about democray. Building of democratic structures has taken 1000 years to establish in mature democracies and why is Zimbabwe expected to achieve the same within 30 years? Why can't Zimbabwe and other similar developing countries be given the space to develop their own forms of democratic government that suit their culture/stage of development. As Hadzisa states how is a country that is described by some comentators as "officially collapsed is unofficially vibrant"
chenzira, London,
Mugabe clearly has no interest in democracy, and his continued rule means the disintegration of the country. It is hard to see that the people will take any more of his mis-management of the economy and abuse of the people. His time has long been over as a legitimate president. Hopefully, the Zimbabwean people will defy the coercise measures taken by his henchmen and vote him out of office. But, who will be counting the ballots?
Rick Friedl, Edwards, USA/California
Country A has no use for the currency of country B except only if country A wants to import goods from country B.
All the bookish economic commentators on Zimbabwe are too foolish to realise that the Zimbabwe government has no headaches of trying to source forex from outsiders like IMF,World Bank,donors etc when the same forex is awash in the streets of Harare and Bulawayo.
A smart government like Mugabe's simply scoops the forex using ZimDollars and goes ahead to impressively mechanise the now-black-owned farms with imported equipment!
Good timing you might say.But,tell me,what black man in his right mind woud not vote for a governmet that gives him land,a tractor or a combine harvester for free.
What these bookonomists must attempt to tell the world is how and why all this forex continues to flow into the streets of Zimbabwe.The country is officially collapsed but unofficially vibrant.This is a case for all economists to think outside their outdated boxes and get real for once.
Alton Hadzisa, London, UK