Sunday, 15 October 2017

Lessons from Zimbabwe



SOCIAL MEDIA TWIST

 Panic buying, hoarding of foreign currency and the attempt to burn the bond notes was a direct result of social media abuse and foreign-owned interests in commerce and industry who have been opponents of the bond notes.Here Zimbabweans learnt that social media can influence consumer behaviour negatively and positively. This lesson has also panicked government to set up a ministry to mitigate effects of social media abuse.




FEAR AND PANIC
Every adult in Zimbabwe was affected in one way or another by the foreigner's attack on the Zimbabwean dollar. It is the fear of the repeat of 2008 that panicked the public into the hoarding frenzy and the subsequent hike in prices. The panic attack was triggered by professional political agitators on social media.

 Zimbabweans are a gullible lot when it comes to anything in print and the internet. Thanks to the high literacy rate, the political agitators are taking advantage. High literacy rate does not grow in tandem with financial literacy. The lesson learnt here is that financial illiteracy is a big problem and there is need for educating the masses


SYSTEMIC ABUSE

The fear of a repeat of 2008 keeps us in bondage and helps to perpetuate the very system that you are fighting against. Foreign-owned and controlled industry, the underground economy and the paid politically agitators have continued to fight against the bond notes. It is again this time there is bull run on the stock market and people are trying hard to ride on the dual listing of Old Mutual. It is not a coincidence that Old Mutual has a finger in all the listed companies. It is the benefactor of the panic buying and the attack of the bond notes.The lesson learnt here is that the foreigner owned companies that are systematically abusing our people and our economy.


LAUGHING LESSON
 On a lighter note, our conspiracy theorist buddies believe that last month's panic buying of everything was instigated by the powers that be. They say the move was to get people to bring out all that cash they been keeping out of the system. The bulk buying did indeed put money into the formal sector, but it is what the informal sector is doing with the money that the Reserve bank should ask this sector.

Still, on a lighter note, Robert Mugabe did get credit for the stabilisation of both the prices and the rates. it was said as soon as he got off the plane from New York .the prices and money rates went down.I observed it but I could not link his arrival with the fall of the prices and money rates.

THE LESSONS LEARNT
 We have learnt as Zimbabweans that just because the rates and price have stabilised, and the money changers have disappeared it doesn't mean the problem has been solved. Our fears as Zimbabweans is that are our threats are external. Our government, industry, commerce and the ordinary people should come together and work to exorcise the demon of sanctions on our country.

The panic buying and manipulation of money rates is a symptom of an economy under siege. The external trade and financial sanctions are the diseases.Let us fight for the total removal of the sanctions or let us find better means to bust the economic sanctions.

We are authors of our predicament, and we have the power to build or destroy our society and economy.


Saturday, 7 October 2017

Bond Notes and The Panic Buyer Rates Explained

The bond notes celebrate a year in circulation. It has baffled the finance markets by not only competing with the USA dollar but proving its opponents wrong.The bond notes have a different effect on different markets. These markets and effects are often confused. This confusion l hope to clear below, l have split the markets into four.
I have also provided the rates for each market and the causes for the different rates.





THE BLACK MARKET 

I would like to define the black market and draw a clear line between it and the informal market. The former is illegal and the latter is legal.
The black market is where there are different rates on transactions. The nature of black market calls for different rates depending on the illegality of the transaction and the desperation and vulnerability of the parties to a particular transaction.
The rate can vary from 6% to 100%.

THE INFORMAL MARKET 

The informal market before the introduction of the bond notes was operating on a strict cash basis.The USA dollar was the medium for all transactions.
The informal market transactions are still on a strict cash basis, that is why we do not see swipe machines at Mbare or Sakubva market.
Here the dollar and the bond notes will trade at par. It is still one as to one.

THE FORMAL MARKET
 
The formal market is the least likely place for the bond note or any other currencies manipulation. It is the perfect market, as the economist likes to say.
The rates on all fronts are the same and only a business which acts unethically will be able to manipulate the rate.
In the formal market, a business that acts unethically is bound to be punished by the people through market forces and it is also bound to break some laws and will face appropriate legal sanctions.

THE FOREIGN EXCHANGE MARKET 

This market from my on observation is the most difficult to be able to distinguish it from the three markets above. The difficulty arises because the bond note is both an internal and external holder of value.
This problem is further made more complex by the fungibility of the bond notes going beyond our borders. The bond notes are an acceptable currency for business transactions in our neighbour states.
It is the most difficult market as all three of the above makes up this market. This makes the foreign exchange rate for the bond note to fluctuate between 6% and 30%. This rate depends on the availability or to be more accurate,  the supply of the bond notes on the market.
MY PARTING SHOT
I am a proponent of the bond notes and from my observations, the bond notes have had a positive impact on our financial system. I believe the Reserve Bank of Zimbabwe has worked around the financial sanctions against Zimbabwe.
It is the enemies of Zimbabwe who were calling bond notes a failure before their introduction. These people like the fake born - again brothel runner, the fake pastor for hire and the professional paid political agitators cannot discount the positive effect the bond notes have had on our economy.

Monday, 11 September 2017

The Diasporan In the Rhodesian Shadows


This is post is going to ruffle one or two diasporans hair and I am just in my I-do-not-care mood. You know what I mean!!

The diasporan I am after is that black person who left the country as political refugees-not economic refugees.These are people who were given special dispensation to stay in the UK, USA or South Africa.These are people who faked their way to get visas or even permanent residence in those foreign countries.

I go ballistic when these people get into the front when it comes to tarnishing the image of their country. They are the most vocal against the land issue and indigenisation of the economy. They mimic their masters and hosts fears. These people speak and talk like their own masters. The slaves had a nice term for them.Kitchen niggers!!! I still call them that.

 When they left Zimbabwe leaving their motherland to take up what they thought as an opportunity in the diaspora. They made a lot of the mistakes of their lives and the older they get the more bitter they become. They are frustrated that fellow blacks now own farms which used to belong to their white masters. They do not believe that a black man cannot run a company or govern a country.

It is as if every black person in the diaspora believes and think that Robert Mugabe messed up their lives. They have the same attitude with there Rhodesian masters. They feel for their masters on the land issue and are the first to tell you how a black person can not govern a country. They speak of dispossession of land which they never possessed. They are the authorities of white property rights in Africa, but they do not even own a house in Europe or the USA.

These diasporans believe that we as a nation have messed up. Today I just want to force these diasporan to reflect on where they have messed up. What have you messed up? Why do you think your own brother cannot run a country?

Here is why you think like you are white Rhodesian in exile;

  1.  You have lost touch with your kith and kin. You can not create a working relationship with people in Zimbabwe.
  2. You have not read enough of Zimbabwe's laws, policies and regulations but you read their biased and opinionated reviews on white supremacist's media channels.
  3. You believe that Zimbabwe"s government does not have any developmental programs or strategies like Zimasset.
  4. You have no respect for news emanating from Zimbabwe public broadcasting services and public media but read news from the white supremacist's sponsored news sources.
  5. You have not taken time to understand Zimbabwe's political system but rely on the opinionated white supremacist's media outlets.
  6. You believe there are no sanctions on Zimbabwe but against the person of Robert Mugabe.



 Well, my brother and sister, I am not saying you should have stayed at home to hustle for a piece of land, farm or mine and to be part of the revolution. You are still part of us. We have a country to built and the Rhodesians still have a country to destroy. That country is Zimbabwe.

Wednesday, 23 August 2017

The Ides of March

THE QUEEN BEE AND THE NEW HIVE
The lady who was fired from a party yet to be born did something in March. She pointed her middle finger to her worker bees in ZPF and to Morgan Tsvangirai of MDC-T. She then proceeded to form her own party.
As l had earlier indicated in my previous post she had to shake her war veteran image and her past to links to ZANU Pf if she has to attract the money from Western regime change sponsors.
In March Joice Mujuru weaknesses were exposed. The BBC had her in a tight knot as she failed to articulate her position on the land issue, Gukurahundi and why she formed her own party.
NERA DEMONSTRATION
The self-declared 'elections' reforms watchdog NERA called for a demonstration and they did half fill Robert Mugabe Square. The demo was called after Rita Makarawu of the Zimbabwe Election Commission had walked out of a meeting organized and called for by the disorganized NERA.
The demo organizers said Robert Mugabe Square ( Haru Mutasa of Al Jezera sheepishly called it Freedom Square ) was half full which means, in reality, it was half empty.It was a non-event as the people of Zimbabwe went on with their lives.
Didymus Mutasa of ZPF, Morgan Tsvangirayi,  Evan Mawarire and other suspicious characters were at the  NERA demonstrations. Some were booed from the stage.Some were cheered off the stages. Some were lifted onto the stage. Others never reached the stage.
This sums up how our so called opposition is disoriented and disorganised. 
IS HE A SAVIOUR OR A TYSON
On the same day of  NERA demonstration, members of the ruling party's Women League carried out a demonstration calling for the ousting of Comrades Sandi-Moyo and Sarah Mahoka to resign their posts.Whoever organized the demo must have a hidden agenda. The political commissar Saviour a.k.a Tyson Kasukuwire professed total ignorance of the demonstration.
The political commissar has been accused by both the war veterans and youths, as out of touch with the grassroots of the party.
He might be the saviour of the party or as destructive as  Mike Tyson.
THE PROFESSOR AND THE PAPERS
This month Professor had a tiff with the state media. Jonathan was accused of misleading the public. He had said what he saw in Tsholotsho but the state media wanted him to say what was politically correct. He misfired again about the cost of the Command Agriculture program, and the state media was quick to point fingers at him. I feel there is no love lost between the state media and Professor Jonathan Moyo.
For the record, though the Professor's twitter handle has more followers than the state media publications. I think that the guys at the Herald and Sunday Mail are just out fo some mischief.
THE BOND NOTES
The bond notes reached 100 days and the usual suspects, the international banks and the illegal dealers are at it again. A three tier system of our monetary system has been created and the Reserve Bank has remained a toothless bulldog as no punitive action has been taken against the culprits.
I demand the governor of the Reserve Bank to proactive and come up with an effective piece of law to stop the bond notes abuse and manipulation by banks and illegal foreign currency dealers.
THE GREAT CAF AND THE GREEN MACHINE COUPS
The Green Machine and Philip Chiyangwa were in on fire in March in our Football circles.
Hayatou was pushed out of office by the solo effort of Bra Fidza. Bra Fidza always do his thing with style and great noise. Yes, Bra Fidza was there.
T.P Mazembe were the victims of the ides of March. They lost to CAPS United of Zimbabwe.The current  CAPS United squad has by this act made history.  It was a great month for Zimbabwean football!!
It was a month of positive and negative ides .










Zimasset Successes Unpacked

The Command Factor

You have heard of the success of the command agriculture. The program has managed to stimulate the growth of the agriculture sector in terms of production and employment levels.The program has also managed to stimulate the rural areas economies.
There are those among us who have been critics of the command agriculture program. It has become a victim of its own success, as people are at pain to dismiss it as a non-event, but its result is there for us all to see.



The Two Million Jobs Myth or Fact

The command agriculture has been a game changer in terms of employment levels on the farms and in downstream industries such as milling, processing and transportation of the produce. The facts on the ground indicate that more than two million people were employed in one way or the other during the program.

 I know we have heard a lot of air on the jobs created!! By using the simple method that is used in USA employment data, we might have created those jobs. The USA classify jobs as farm and non-farm jobs.



Import Substitution And Job Creation

One of the objectives of Zimasset is import substitution and saving the vital foreign currency, the government has come up with Statutory Instrument 64 of 2016. The purpose of this instrument is to protect local industries and create jobs.

The Value-addition and the Food and Nutrition Clusters have seen the most noticeable deliverables of  ZIMASSET. In Mutare, for example,  a cooking oil manufacturer Willowton has set up shop and Cairns Food has increased both production and employment.

 The two entities are going to contract farmers to produce crops for their production intake. This will create more jobs downstream.

ZIMASSET In Action

The people of Zimbabwe are seeing the result of Zimasset and will continue to support and benefit from it.






Thursday, 3 August 2017

My Budget Proposals For 2018


SECOND-HAND MOTOR VEHICLES
 I propose that motor vehicles duty on second-hand cars should be lowered as the duty only serves to burden the poor as it makes transport expensive. We do not have the comparative advantage in the manufacturing of motor vehicles and the so-called motor vehicle manufacturing companies are importing kits which they assembly.

These companies in light of advancing technology and automation are never going to employ as much as they were employing in the seventies and eighties.
In short, we do not have the motor industry to protect, and the notion that second-hand cars are a nuisance is an elitist one. The benefit of having more second-hand motor vehicles on our roads beat that of not importing as I shall highlight on my second proposal.

CASH AND SPOT FINES
I propose that spot fines charged for traffic offenses be reduced to between $1.00 and $5.00. All other fines should be paid directly to the Consolidated Revenue Fund by direct deposit or by bank transfers.

FUEL TAX
I propose that a fuel tax is charged per every liter of diesel and petrol. This will work as opposed to the one-time import duty on the second-hand vehicle. Every vehicle that is moving on our roads will be contributing to the fiscus; in short, it means every vehicle registered or not, will become a revenue source that will contribute to the fiscus  on a daily basis. The more the merrier as the Englishman will say.

This tax is hard to invade and easy to collect and Zimra should have their supermarket machines at every service station and collect hard cash every morning.

 50%  EXCISE DUTY ON THE ALCOHOL
I propose that the excise duty is the same on imported beer and local beers as these are all manufactured by a cartel. Canned and bottled beer is being dumped in Zimbabwe and the importers should fund the fiscus. I propose 50% excise duty on a liter of beer, wine, and spirits.



Gonomics (the economics according to Gideon Gono) used to call these sin taxes let the sinners pay. The official smugglers (Multinational Corporations) and the unofficial smugglers pay the tax for their sins. Amen!!!

EXPORT PRE- INSPECTIONS
I propose that all exports be pre-inspected and valued before being shipped. I also propose that all companies that export and do not want their shipments inspected pay a refundable deposit of say $10 000 per consignment for exemption.

My proposal is in view of the rampant under-invoicing by multinational companies and former foreign-owned companies especially those in Manicaland 

WHISTLE BLOWERS FUND
I propose that a fund for whistleblowers be set up at the Anti Corruption Commission which will reward people who make genuine
reports on corruption be rewarded. This will go a long way in reducing corrupt activities in our economy.


More Proposals to Follow

Monday, 31 July 2017

Coalition of Confusion

We have heard a lot about the coalition of the Zimbabwean opposition parties. It seems it's all about talking and more talking.The opposition as a whole is in disarray. It is a coalition of confusion.

Deadline for Coalition

Morgan Tsvangirayi had set up a deadline for a coalition. The deadline was 31st of July. It has come to pass. The self-declared head of coalition had the cheeky ( no pun intended ) to threaten the other parties that if they fail to meet the deadline, he would go it alone. A coalition of one party l believe!!
The other parties, which are not real parties but individual hiding behind names, just put up their middle fingers at Morgan Tsvangirayi and his deadline.
Our question to Morgan Tsvangirayi the self-declared leader of the yet to be formed a coalition is: What next?

The Price for Coalition

The little parties led by individuals, including the likes of Hosea Chipanga,  Egypt Dzinemunhenzva and of late Nkosana Moyo are aware of the price they have to pay just to associate with MDC-T and Morgan Tsvangirayi. It will cost them their clean names just to sit down on the same table.
MDC-T has had a history of being a project of the former Rhodesian white supremacists settlers. It has been seen as the sponsor of economic sanctions against Zimbabwe. It is also viewed as an opponent of the land reform program. Not one sane person would associate with the MDC-T and still his or her hands clean.
The price is too high to pay for most the parties.


I have an interesting observation on the coalition. Why can't MDC-T go it alone and contest the elections? Why is it that the MDC-T wants the coalition so desperately?
The MDC-T has lost support over the years due to dictatorial tendencies of its leadership. The likes of Ncube, Biti and Mangoma has jumped ship and formed their own parties. This has drained, confused and split the party's constituency.

It is my belief that we will have a coalition of some sort after the elections.
The coalition will according to the facts on the ground, be to make up one-third of the parliamentary seats. ZANU Pf is assured of two-thirds or more of the parliamentary seats.

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