I’ve recently heard about a new directive from the Reserve Bank of Zimbabwe. Announced in RBZ Governor Gono’s July Monetary Policy Statement, it effects sellers of immovable property such as real estate.

A synopsis by MBCA Bank Limited explains the directive, but the notice on the Seeff home page draws more question marks around it, in terms of it not being written down formally or gazetted in a Statutory Instrument.

Effectively, the new policy required home sellers to wait a year before they can access the proceeds from selling their property. During that year, the money goes into a special “FCA Property” account. I’ve heard some estate agents argue that the new regulations “aren’t so bad.” You can access $50,000 of the value immediately, you can earn interest on the funds in the meantime, and you can access them if, for example, you have sold one house to buy another, or if you need to pay for things like school fees or other services locally or internationally.

But looking back at the past decade of Reserve Bank autonomy – and the impunity with which it printed money, financed pet-projects and engaged in quasi-fiscal activities such as car purchasing, it’s very difficult not to be cynical.

Surely if I sell my asset, the proceeds from this sale (barring perhaps something like a capital gains tax) are mine? No doubt since the switch to the US Dollar, the Reserve Bank has been short of work. Is the RBZ not trying to just divert all property sale proceeds through itself so it can keep some operating funds, have to fire fewer people,  and try and keep itself afloat a little bit longer?

I’m surprised not to have heard more about this. Maybe it isn’t actually as outrageous a move as it sounds? Or maybe  property sellers are such a small pool, the RBZ knows it can target them in this way without too much fall out? But if Zimbabwe is serious about trying to rebuild its economy and attract investment, surely the idea should be to make the transaction environment more free, rather than more restricted? It sounds like one rationale behind this new regulation is that buyers and sellers have been moving off shore without the Zimbabwean economy benefiting from these transactions at all. I agree that’s problematic – but with a history of the RBZ seizing assets, freezing accounts, and redirecting funds for its own purposes, is there any wonder investors are reluctant to keep their funds here? Surely moves like this one make it even more difficult to recover, rather than less?

Informed opinions about the legality of this move by the RBZ, and what it means for the Zimbabwean economy, are most welcome.

ZESA Holdings Group Stakeholder Relations Manager, Mr Fullard Gwasira clarified the new electricity tariffs In a telephone interview. He said that the 31% increase in tariff was not an increase in the overall charge to ZESA customers and the new tariff is structured as follows:

- The first 50 kWh had increased to 2.35c
- 51kWh to 300kWh will be charged at 11c
- Any usage over 300kWh will be charged at 15.c

Mr Gwasira said that with the new tariff they expected the average customer bill to be charged at 9.34c/ kWh. Since ZESA has removed the fixed monthly charge, this will translate to a marked reduction in charges to the customer, as long as they remain within expected usage parameters.

ZESA has changed its tariff scheme because the company is unable to sustain its operations. In the period 2009 to present the commodity prices of water, diesel and coal, all of which are required to generate power increased, but ZESA was not been able to raise its tariffs in order to compensate. Electricity in Zimbabwe was subsidised by the government through the Reserve Bank of Zimbabwe, however, since dollarization, the RBZ has been unable to support ZESA operations leading the power supplier to operate at sub-economic levels. Other factors affecting electricity tariffs include the strengthening of the Rand against the US Dollar, as ZESA purchases power from South Africa and Mozambique, both countries are members of the Rand monetary Union. Further there had been no inflation adjustments to the price of electricity.

Mr Gwasira went on to say that on the 1st January 2009 ZESA had written off customer bills that were unpaid prior to this date.

View the tariff schedule here

Shame, poor Tendai Biti, for all his well meaning it seems his partners in Zimbabwe’s economy, our so called captains of industry, are only in it for short term profits and themselves. It wasn’t that long ago that Zimbabweans were making trips across the border to Musina and Francis Town en mass to buy their monthly groceries. And now our so called captains of industry are doing their best to revive what had become a dying means of survival.

The logic behind a reintroduction of import tariffs cannot really be faulted. According to an analysis in the Financial Gazette, there had been an improvement in the supply of basic goods on the market, and local producers needed protection from government to allow their industries to grow. But before the ink had even dried on the Minister’s midterm fiscal policy, retailers, local manufacturers and even hoteliers practically fell over themselves in their rush to increase prices.  By the end of July not only had the prices of the commodities listed by the Minister increased, but also the prices of those that were not listed including bath soap, detergents and hotel accommodation.

Let’s be honest, the quality of Zimbabwean goods has decreased so much that they would be unable to compete on an open market. My most favourite thing to snack on is potato chips, and in the 90s I was a Willard’s tomato flavoured chips loyalist. Yet when Willards potato chips returned to supermarket shelves, my favourite flavour had a bitter after-taste and was far more expensive than imported Simbas or Lays. So I stopped buying them. In terms of cooking oil, I’ve found that the cooking oil I used to buy in Mbare during gore renzara, that had been pressed from soya beans and sun flower seeds left food without any strange tastes or smells after frying unlike the locally produced cooking oils I’m now supposed to start buying. And, it’s all very nice that a certain locally produced soap lasts and lasts, but it would be nice if the manufacturers reduced that soaps percent content of perfumes, because it’s scent also lasts and lasts. And how about diversifying that product range to include shower gel and body lotion.

In a post about the launch of the ‘buy Zimbabwe’ campaign, blogger Zakeo Zakeos observed:

… it amazes me that some people still choose to have seminars and such without consulting me first. Because if these learned gentlemen had taken 2 minutes to brief me that they are concerned about Zimbabweans not buying enough local products, I would have given them one devilishly simple but amazingly effective strategy: Stop making shit.

At the unveiling of its flag Mthwakazi Liberation Front Vice President Edgar Gumede told the NewsDay that:

“It is time we face reality. The naked truth is that we are under black colonial rule, masterminded by the Mugabe-led regime. It is not true that we in MLF hate Shonas. No, no, no, we don’t! We hate the colonial system of government that they imposed in Mthwakazi.”

This is a South Africa based party, which was launched to protect and safeguard the interests of Mthwakazi State.  But one wonders who are the Mthwakazi and who are they fighting against and who colonized them in the first place? If my memory serves me right MLF supporters clashed with MDC supporters during the SADC summit held in South Africa a clear sign that the party is serious in its fight against any political party and tribe Zimbabwe, especially the Shonas. During the skirmishes MLF supporters went on to burn the Zimbabwean flag and recently the same party made news headlines when they said they wanted to unveil Mthwakazi flag and currency.

In my own view even if a new government comes to power MFL will continue with its struggle for independence. Whether MLF is a genuine party or not is a question that many people would ask since this party is only heard in the newspapers and operates mainly from South Africa.

In a follow up to my disappointment with the MDC’s cancelled Minister’s feedback meeting, I was interested to get a new text message last night from them:

You are invited to attend the MDC 12th Anniversary Rally at Gwanzura Stadium on Saturday 10 September 2011, Time 10:30am – 4:30pm.

So the community feedback meeting is cancelled. But not the anniversary rally?

It’s hard not to be cynical that this is because politicians find it so much easier to talk at people, rather than speak with them.

Late yesterday morning, I got an SMS from the MDC announcing an MP feedback meeting in Harare that evening. Finance Minister Tendai Biti, co-Home Affairs Minister Theresa Makone, Minster of State in the PM’s Office Jameson Timba and Deputy Justice Minister Obert Gutu were slated to attend.

Coincidentally our newsletter headline that same morning had been “Seen your MP lately?” And when I got the SMS, I was pleased with this example of Ministers making themselves available to the public.

But I was also frustrated to have gotten the announcement at such short notice – which made it harder to share with others and encourage more people to attend. But I put it up on Twitter and Facebook in the hopes of inspiring at least a bit of participation – only to learn later that it had been cancelled, at even shorter notice.

Nine people attended, the speakers never appeared, and one of the participants finally phoned a different MP, who told them the meeting had been cancelled.

So why announce a meeting you don’t intend to have? And why announce with such little turn around time that hardly anyone hears about it and even fewer people can attend? It left me cynical and sceptical. Do the MDC Ministers actually want to be seen – and heard, and to see their constituents and hear what they might want to say? That is do they actually want to deliver or receive the feedback? Or do they just want the kudos of being seen to engage the public, without any of the hard work of actually having to organise, listen, or discuss?