A NUMBER of images flashed through my mind as I read through Finance Minister Tendai Biti’s “revised” budget statement. Images of Gideon Gono; footprints of potential donors in retreat; Zimbabwe’s poor left to dry out in the sun; and of course sanctions and the phantom known as “remaining” white commercial farmers.
Let me from the start ask for Biti’s indulgence. My comments on his budget statement are based on assumptions and, as the British Council wisely counsels in its leadership training programmes, we should hold our assumptions lightly in case there is need to discard them in the light of new information. Mine are borrowed assumptions based on his alleged relationship with Gono.
So here I go. The fight in Zimbabwe’s crisis is not with Gideon Gono. The fight is against low productivity and hunger. What is needed is an urgent economic turnaround.
But I have failed to rationalise Biti’s appointment as Finance Minister with Gono as Reserve Bank governor. This was soon after Biti likened Gono to an al-Qaeda who deserved to stand before a firing squad. It is as if somebody endorsed the view that Gono was the enemy of the state and only Biti could tackle him.
Biti appears to have taken the post with a lot of relish, ready for a fight, either to get rid of Gono or to humiliate him. First, he left him out of his delegation to South Africa to explain Zimbabwe’s financial situation.
I don’t know what South Africa’s Tito Mboweni made of it but it must have been awkward trying to deal with a Finance Minister who is at war with the man in charge of his nation’s financial intermediation; the man who not only understands better the depth of the crisis but will also determine how the debt is repaid once the political rhetoric is over. Why wash your dirty linen on a neighbour’s yard?
Second, it was Gono who announced the use of multi-currencies in his monetary policy statement on February 2. He, however, said the Zimbabwe dollar would remain legal tender “to safeguard our national identity and sovereignty” after lopping 12 zeros, and an immediate end to quasi-fiscal activities by the Reserve Bank. This signified a reduced role for Gono in the economy.
Biti rammed it in through his “revised” statement, declaring the Zimbabwe dollar “dead”. There would be “no more printing of money”, he announced enthusiastically. He got a round of applause. You would have thought there was a chance of Gono printing the Rand and US dollar.
Yet Biti makes an important point, whose import he unfortunately misses. He says in his statement he had learnt three lessons in the four weeks since he assumed office. “The first (lesson) being high levels of demand on the fiscus, the second being huge expectations, and the third being limited capacity to deliver on the part of the fiscus.”
He is Finance Minister in a new government. Previously, in a broke government with limited options under sanctions, those demands fell on Gono at Reserve Bank. He didn’t have the optimism of a minister expecting donor funds.
In his optimism, Biti has removed the 7,5% “surrender requirement” for miners which Gono had progressively reduced from over 45% when he took over at the RBZ in 2003. Thanks to Biti, I am also a beneficiary of his decision to raise the tax free band from US$125 to $150. Cutting the budget by US$700 million is no more than showmanship if it doesn’t relieve the load on the poor by reducing the executive payroll.
I would assume that the Mercs which the freshmen have appropriated to themselves were also purchased with proceeds of Gono’s printing press! It was naive of him to even dream of winning the senseless battle against inflation.
But then Biti, when you rely on the promise of others to finance your requirements I think it is prudent to allocate what you have “gathered” according to need than to get a round of business applause.
Similarly, while money printed by the RBZ might have been open to abuse, by instantly killing the Zimbabwe dollar, Biti has burnt all bridges behind him in the hope that there will be a lot to “kill” and “eat” in the forest ahead.
To raise the tax free band in an economy with a claimed unemployment of 90% might be a stimulus package for consumers and business but smacks of too much faith in the promises of donors. Biti might live to rue these impetuous decisions.
Yet, on matters of substance, Biti’s “reality check”, like Gono’s in the past, is strong on the obvious aspects of our crisis, giving us a litany of the problems just like Gono removing zeros from the local currency, but leaves the crux of solution in the realm of political speculation – whether potential donors can be sufficiently humoured to coax money from taxpayers lately hit by the plague of irresponsible laissez faire.
The difference between the two is that while Gono looked to our politicians to work out a deal and printed money to fill the deficit gap, Biti has opted to destroy the mint and instead prioritise the begging bowl, apparently oblivious of the “global” financial crunch or too confident of the bounty of the MDC’s “friends” despite their setting conditions which would be too embarrassing to accept.
Some have made it clear they won’t release any money so long as Robert Mugabe is president. They (donors) want to be in charge of the government because, they dare say, “Tsvangirai is too weak”. He is not as strong as Kenya’s Raila Odinga.
The point about Mugabe leads me with trepidation into the hallowed sphere of that breed of our citizens called “remaining” white commercial farmers. I almost avoided mentioning them, because they are a protected species.
In our inclusive democracy, it has become risky to be different, to say the unpopular truth. But I was relieved when Professor Ken Mufuka added to my limited ken by indicating that part of the reason we should not expect aid from, or the lifting of sanctions by the US any time soon, is because for Democrats to be seen to be giving money to Mugabe is a sure way to lose elections.
“The anti-Mugabe propaganda war (in the US) can only be assuaged by some arrangement satisfactory to (Zimbabwe’s) white farmers …,” Mufuka wrote in his column.
One such farmer who has relocated to Mozambique wrote boldly on her web site two weeks ago that there would be no peace in Zimbabwe “until Mugabe is dead”.
My feeling is that Mugabe and Zanu PF have become victims of their own half-hearted measures in the fast-track land reform. It is those farmers who were left on the land who have become Mugabe’s relentless nemesis.
Their number changes everyday from 72 to 100 to 500. If they were left on the farms because they were viewed as “friends”, that was a huge mistake. They have become the coalition government’s most implacable enemy. Touch any one of them and before the end of the day news portals are clogged with reports of “fresh farm invasions”, “threats to property rights”, “human rights violations”, travel warnings to Zimbabwe and investor flight.
A single white farmer’s eviction poses a serious threat to food security. Then you wonder why we ever needed 4,500 of them. Are these genuine farmers or a decoy for a sinister project?
Given the pernicious influence of these “remaining” white farmers, it is easy to see why a key “pillar” of Biti’s STERP, the short-term economic recovery programme launched last week, is “democratisation”. This is the “pillar” which will open the floodgates of foreign financial aid to Zimbabwe, and its components are listed with telling boldness about their origin:
Rule of law;
A new people-driven Constitution;
Restoration of property rights;
Restoration of political legitimacy;
Freedom and liberties;
Restoration of personal measures;
Opening up of the media; as well as
Restoration and re-integration of Zimbabwe into the community of nations.
There is nothing wrong with these concepts per se. In fact their realisation should be every nation’s ultimate goal. What worries me is their prioritisation in a short-term programme, in the specific case of STERP, about 10 months.
Biti is aware that the GPA and the MoU before it are unequivocal that the land reform programme “is irreversible”. This raises questions about repeated references to “restoration”. To whom? From whom? By whom? Covering what historical period?
This “pillar” is inextricably tied to the begging bowl than the long-term interests of the nation. While its components are a vital indicator of a nation’s democratic well-being, to place it as the top priority in our emergency is misplaced. It’s like the Fire Brigade coming to rescue people from a burning house demanding that “all women should be decently dressed first before we can come in”.
It is not a condition set by someone who wants to help you. The aim is to settle a score. The West has never disguised its distaste for the coalition arrangement. In fact it is now demanding that the AU and SADC, which guaranteed the initial agreement between Zanu PF and the MDC and the coalition government which followed, should fund it.
In short, to take Biti’s democratisation “pillar” as a priority ahead of food, health, water and security is to stand Maslow’s hierarchy of needs on its head.
Joram Nyathi is deputy editor of the Zimbabwe Independent. He writes here in his personal capacity



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