A digital copy of the Business News 24 (16 February 2015 edition). Zimbabwe's premier business news free sheet published by the Zimpapers Newspapers Group (1980) Limited and available every week day from 1530hrs to give a summary of the day's business news.

1. News Update as @ 1530 hours, Monday 16 February 2015
Feedback: bh24admin@zimpapers.co.zwEmail: bh24feedback@zimpapers.co.zw
The European Union remains a cru-
cial development partner to Zimba-
bwe which has contributed immensely
towards poverty eradication and eco-
nomic transformation of the country, a
Cabinet Minister said on Monday.
Finance and Economic Development
Minister Patrick Chinamasa said this at
a function where the EU was extending
234 million Euros (about $270 million)
to the Zimbabwe Government under
the 11th European Development Fund
(EDF, 2014-2020) to be utilized in var-
ious sectors of the economy.
Chinamasa said the event was a signifi-
cant step towards normalisation of rela-
tions between the EU and Zimbabwe.
“It would be the first time since 2002
that the EU is engaging the Govern-
ment of Zimbabwe directly with devel-
opment assistance funds being chan-
neledthroughTreasuryandnotthrough
NGOs as was the case before,” he said.
“Let me re-affirm Government’s com-
mitment to the Zimbabwe–EU co-oper-
ation and successful implementation of
the NIP," he said.
Chinamasa urged the EU, which has
removed economic sanctions on some
Government officials and entities, to
also remove President Robert Mugabe
and his wife Grace from the embargo to
foster better ties.
“Zimbabwe Incorporated has a chief
executive and as long as the chief
executive remains under sanctions our
relations remain poisoned and unpro-
ductive,” he said. The funds will be
utilised under the National Indicative
Programme (NIP), a joint framework
between the Government of Zimbabwe
and the EU that will guide formulation
and implementation of projects funded
under the EDF.
About EUR 88 million will be channeled
towards the health sector, another EUR
88 million will be directed to the agricul-
ture sector while EUR 45 million will be
used on governance and institutional
capacity building.
Civil society, the national authorizing
office and technical services would get
EUR 6 million, EUR 3 million and EUR 4
million respectively.
Speaking at the same event, EU
ambassador to Zimbabwe Philippe Van
Dammesaiddespitepoliticaldifferences
of the past the EU was more than ready
to normalise relations with Zimbabwe.
He pledged more dialogue and engage-
mentwithZimbabwe,whichmissedout
EU extends $270m to Zim

2. on the 9th and 10th edition of the EDF
due to sanctions imposed on Harare.
“The will and commitment has always
been there to search for common strat-
egies,” he said.
Van Damme said the EU was ready
to provide at least half of the pledged
funds this year. The EDF is the main
instrument for EU aid for development
cooperation with the African, Caribbean
and Pacific Group and is funded with
contributions from the EU member
states. The NIP is complemented by
additional thematic and regional pro-
grammesinfieldsthatincludetradeand
regional integration, peace and security,
natural resource management, support
to civil society and human rights. --
New Ziana •
Beverage manufacturer Delta Corpora-
tion says it did not increase production
of sorghum this year since it does not
anticipateasubstantialriseinbeersales
mainly due to the economic challenges
the country is facing.
Delta company secretary Alex Maka-
mure told New Ziana that they were
still assessing the hectares planted this
season though the target yields were at
4 to 6 tons per hectare for commercial
and 1 to 2 tons for communal.
“The target output for 2015 is at the
same levels as last year as the vol-
umes of beer sales are not expected to
increase substantially given the state of
the economy,” he said.
Delta contracts farmers to grow sor-
ghumfollowingthedeclineinitsproduc-
tion as most farmers shifted to growing
cash crops such as tobacco.
Makamure said Delta contracted 27
commercial and 5 000 communal farm-
ers to produce sorghum in this cropping
season.
Hesaidthecompanyusesabout12500
tons of red sorghum and 2 000 tons of
white and sweet red sorghum annu-
ally to produce opaque beer and Eagle
larger.
Sorghum is a small grain crop ranked
second as a staple cereal crop after
maize in Zimbabwe.
It is a drought resistant crop grown
mostlyinregions3,4and5wherethere
is uneven distribution of rainfall.— New
Ziana •
2 NEWS
Delta expects beer sales to remain flat
Beverage manufacturer Delta Corpora-
tion says it did not increase production
of sorghum this year since it does not
anticipateasubstantialriseinbeersales
mainly due to the economic challenges
the country is facing.
Delta company secretary Alex Maka-
mure told New Ziana that they were
still assessing the hectares planted this
season though the target yields were at
4 to 6 tons per hectare for commercial
and 1 to 2 tons for communal.
“The target output for 2015 is at the
same levels as last year as the vol-
umes of beer sales are not expected to
increase substantially given the state of
the economy,” he said.
Delta contracts farmers to grow sor-
ghumfollowingthedeclineinitsproduc-
tion as most farmers shifted to growing
cash crops such as tobacco.
Makamure said Delta contracted 27
commercial and 5 000 communal farm-
ers to produce sorghum in this cropping
season.
Hesaidthecompanyusesabout12500
tons of red sorghum and 2 000 tons of
white and sweet red sorghum annu-
ally to produce opaque beer and Eagle
larger.
Sorghum is a small grain crop ranked
second as a staple cereal crop after
maize in Zimbabwe.
It is a drought resistant crop grown
mostlyinregions3,4and5wherethere
is uneven distribution of rainfall.— New
Ziana •
Delta expects beer sales to remain flat

3. BH24 Reporter
The Zimbabwe Stock Exchange has
suspended Meikles Limited from trading
with effect from today.
Thebourseannouncedwithoutimmedi-
ately giving reasons for the suspension.
However, sources have said the move is
meant to pave way for the ZSE to seek
clarification on the hotel group’s latest
financials.
There have been reports that the group
published erroneous information with
regards the Reserve Bank of Zimbabwe
debt.
Meikles reported a $2,8 million loss
for the half-year ended September 30
2014 and said it was owed about $90
millionbythecentralbank,adebtwhich
had accrued over the years from as far
back as 1998.
But Bikita West legislator, Munyaradzi
Kereke, and former advisor to then
central bank Governor Gideon Gono
accused the group inflating figures with
theintentionofmanipulatingitspriceon
the stock market.
In a parliamentary portfolio committee
meeting recently, Kereke said the RBZ
debttoMeiklesstoodat$34,1millionas
at December 2008 and could not have
ballooned to $90 million as Meikles had
stated in its financials.
“Meikles published completely errone-
ous information (whose) implications
are far much more in the financial sys-
tem than just the numbers.
“They created a stock exchange bubble
which is tantamount to fraud. When
you artificially present falsehoods on
the stock exchange you uplift the stock
price or keep it where it is when in
effect it was supposed to fall. The stock
exchange has been tampered with,” he
said.
Questions sent to Meikles had not been
responded to by the time of publishing.
•
3 analysis3 NEWS
Meikles suspended from ZSE

4. By Funny Hudzerema
The Food and Agriculture Organisation
of the United Nations (FAO) will provide
irrigation facilities to more than 2000
families in Manicaland before the end of
the year as part of its Smallholder Irri-
gationSupportProgrammewhichseeks
to protect rural farmers from climate
change and frequent droughts.
Speakingduringagraduationceremony
of irrigation engineers, FAO representa-
tive for Zimbabwe David Phiri said the
organisation is committed to assisting
the Government to construct and reha-
bilitate irrigation schemes to increase
agricultural production in the rural
areas. “FAO has introduced the Small-
holder Irrigation Support Programme
aimed at improving the rural agricul-
ture but Government support is critical.
“This will be done through, improving
irrigation infrastructure, capacity devel-
opment of farmers to practice irrigation
farming as a business and strengthen-
ing of community-level Irrigation Man-
agement Committees,” he said.
A survey conducted by FAO indicated
that 70 percent of the population of
Zimbabwe live in rural areas that are
characterised by low and unpredictable
rainfall patterns.
He said the country’s irrigation system
hasbeenaffectedbylackoffunding,sil-
tationoflocaldamsandcanalsandthese
issues could be addressed to maintain
food security. Currently only 61 per-
cent (10 000 ha) of total land equipped
with irrigation facilities is functional.
“We remain committed to addressing
capacity gaps through mixed strategies,
including development of appropriate
technical information, specific studies
and professional exchange, provision of
material resources for strategic projects
implementationandtechnicalbackstop-
ping of counterparts,” he said.
He also said in 2016 FAO is also plan-
ningtotrainotherirrigationengineersto
help rural farmers. In a speech read on
his behalf during the same event, Sec-
retaryforAgricultureMechanisationand
IrrigationRingsonChitsikosaidtheGov-
ernment is working on policies which
support the irrigation farmers to reduce
food shortages in the country.
“The Government is committed to mak-
ing the Smallholder Irrigation Develop-
ment Programme a success by devel-
oping both institutional innovations and
enabling policies that can ensure adap-
tation of new irrigation technologies in
the agriculture sector,” he said.
He also said agriculture productivity is
being affected by frequent droughts
and effects of climate change leading to
crop failure hunger and poverty hence
irrigation development and training is
critical. •
4 AGRICULTURE
FAO irrigation programme to benefit more than 2000 rural
farmers by year end

5. 55 AGRICULTURE
The Tobacco Industry and Marketing
Board (TIMB) says the 2015 marketing
season will begin on March 4 this year
at auction floors, while contract sales
commence the following day.
The tobacco marketing season, which
traditionally opens mid-February, was
delayed as the crop was still at different
vegetative stages.
The TIMB said three auction floors,
namely the Tobacco Sales Floor, Boka
Tobacco Auction Floor and Premier
Tobacco Auction Floors had been
licensed to conduct sales this season.
“Sales bookings will open on Wednes-
day 18th February 2015 and deliveries
accepted as from Wednesday 25th Feb-
ruary 2015,” the TIMB said.
Since the country adopted multiple for-
eign currencies, the tobacco industry
has experienced rapid growth as many
farmers have shifted from other crops
to the “golden leaf” due to the orderly
marketing and favorable prices it
attracts.
The growth and viability of the tobacco
industry has in turn inspired the local
financial services sector to increase its
supporttowards productionofthecrop.
The Bankers Association of Zimbabwe
says local financial institutions have
extended to tobacco farmers about
58 percent, of the cumulative loans
extended to the agriculture sector dur-
ing the 2014—2015 season, which
translates to about $600 million.
In the 2015 National Budget, the gov-
ernment projected that 90 000 hec-
tares would be put under tobacco, with
output projected at 220 million kg.
Last year, flue-cured tobacco output
amounted to 216 million kg, compared
to 165, 85 million kg in 2013.
An oversupply of tobacco on the inter-
national market is expected this year
and this may affect prices on the local
market.— New Ziana •
Tobacco sales to begin next month

6. BH24

7. 7 MINING
BH24 Reporter
Mwana Africa’s Freda Rebecca recorded
a 14 percent decline in production for
the third quarter ending December
2014 as the average feed grade fell 16
percent below the second quarter.
Although tonnes milled rose by 0.8 per-
cent to 322,216 tonnes from 319,767
tonnes, total output for the period was
14,298 ounces from 16,555 ounces.
In a trading update, Mwana Africa said
the main production stopes posted
lower than expected grades resulting in
the lower feed grade.
The group said gold recovery rate fell to
78 percent from 80 percent in the prior
period as the plant had to cope with a
low-quality replacement carbon batch
whichresultedingoldbeinglostthrough
finecarbonandbeingpassedtotailings.
Cash costs for the quarter under review
increased by 27 percent to $1,118/oz
from the September quarter’s $880/oz
as a result of the decrease in production
and a 10 percent increase in operating
costs.
All-in sustaining costs rose by 23 per-
cent to $1,304/oz quarter-on-quarter
from $1,061/oz in September. Royalties
for the quarter were cown 37 percent
due to lower gold production and to
lower royalty rates introduced in Octo-
ber.
The group’s Trojan Nickel Mine also
recorded lower production as a result of
fewertonnesoforemilled,alowerhead
grade and reduced recoveries.
Production was 30 percent below the
previous quarter at 1,383 tonnes from
1,989 tonnes in the second quarter.
Equipment taken out for an ongoing
refurbishment exercise resulted in a
23 percent drop in mill head grade and
recoveries were also 2 percent lower
thaninthepreviousquarter.Nickelsales
were31percentlowerquarter-on-quar-
ter from 2,008 tonnes to 1,395 tonnes.
Cash costs and all-in sustaining costs
both increased by 17 percent on a per
tonne basis quarter-on-quarter as a
result of the reduced nickel production.
ThegroupalsosaidworkontheBindura
smelter re-start was ongoing with the
delivery of the furnace bricks expected
during fourth quarter of the year.
Mwana chief executive Kalaa Mpinga
said the third quarter of the 2015
financial was a particularly challenging
period.
“Thenickelpricedecreasedby15%dur-
ing the December quarter to $15,867/t
(Q2 2015; US$18,592/t). Although
gold’s price fell to an average •
Low head grade negatively impacts Mwana Africa Q3 perfor-
mance

8. BH24

9. Zimbabwe’s first ever microfinance
bank (MFB) will soon open its doors
to the public after it was licensed to
operate by the Reserve Bank mid-last
month, an official has said.
The microfinance bank, named African
Century Limited, will be a deposit tak-
ing microfinance institution and makes
history by becoming the first such legal
entity operating in the economy.
ReserveBankofZimbabwegovernorDr
John Mangudya said the central bank
had licensed ACL on January 15 after it
had met the minimum requirements.
“The institution will commence depos-
it-taking microfinance business upon
thesuccessfulcompletionofapre-open-
ing inspection,” he said.
“The coming on board of deposit-taking
microfinance institutions is envisaged
to enhance access to financial services
particularlybythe lowerincomegroups
of our society, thereby promoting a sav-
ings culture in the economy.”
The central bank said nearly two years
ago it would permit MFBs, required to
have a minimum capital threshold of $5
million, to operate but there had been
no takers despite earlier market cries
for such institutions to be allowed to
operate.
Struggling commercial banks, some of
which have since ceased operations,
had been largely expected to down-
grade their operations into MFBs while
some microfinance institutions (MFIs)
were anticipated to upgrade their
license but this did not happen.
“While the current minimum capital
of $5 million may be too high for our
members to consider upgrading, there
is likely to be new players coming into
the sector and open microfinance banks
orexistingbanks strugglingtomeetthe
new capital requirements downscaling
to micro banks,” said Zimbabwe Asso-
ciationofMicrofinanceInstitutionschair-
man, Patrick Mangwendeza.
Zimbabwe has 147 registered microf-
inance institutions registered with the
central bank and hundreds more oper-
ating in the shadows.
Experts in the MFIs sector say some
of the institutions have not upgraded
into microfinance banks to avoid central
bank scrutiny.
Unlike commercial banks, which have
been criticised for milking depositors,
MFBs are expected to serve low income
groups, providing not only basic bank-
ing services at reasonable rates but also
extending loans at affordable rates
compared to those offered by ordinary
microfinance institutions.
Referred to in some countries as “bank-
ing for the poor” MFBs are popular and
areflourishingincountriessuchasNige-
ria where over 700 are in operation.
MFBs are known for being the major
players in supporting the informal sec-
tor as well as small to medium enter-
prises, which in the case of Zimbabwe
have become the economy’s spinal
cord. — New Ziana•
99 NEWS
Zimbabwe licenses first Microfinance Bank

10. The equities market opened the week
on a higher note in thin trading with the
industrial index adding 0.66 points to
close at 169.02 points.
Delta and Zimplow were up a cent each
at 116 cents and 7.50 cents respectively
andInnscorgained0.99centstocloseat
59.99 cents.
FidelityLifewastheonlycountertotrade
in the negative territory after shedding a
cent to trade at 5 cents.
Theminingindexwasflatat58.13points
as Bindura, Falgold, Hwange and RioZim
were unchanged at 5 cents, 3 cents, 4
cents and 15 cents respectively
Meanwhile, Meikles limited was sus-
pended from trading on the ZSE with
effect from today. — BH24 Reporter
•
10 ZSE REVIEW
Equities opens week higher…as ZSE suspends Meikles

11. Last year, Finance Minister Patrick
Chinamasa noted how the sanctions
imposed upon Zimbabwe had brought
the economy to its current precarious
position.
“Over the past 15 years our economy
has been battered by the imposition
of sanctions by Western countries,” he
said.
He offered a solution too. “Because of
the sanctions, we are basically on our
own. We have to look inward to see
what we can do to leverage our own
resources and mobilise fresh money.”
Zimbabwe presently has all the symp-
toms of an economic depression, nota-
bly a long-term downturn in economic
activity.
But as Minister Chinamasa explicitly
highlights, Zimbabwe needs to start
building up savings.
Economists contend that savings are
critical for economic growth because
savings are offered to businesses that
need credit hence boosts investment
and economic growth. To this extent,
it becomes clear that the liquidity con-
straints in the country is an indication of
lowsavingsandlowincomes,whichhas
led to low aggregate demand and low
economic activity hence declining infla-
tion and the cycle continues.
The situation therefore needs critical
and urgent redress.
First, we need to ensure that all eco-
nomicrelatedpoliciesareconsistentand
in line with what it is trying to achieve.
Policies have effects on credit distribu-
tion and availability, FDI, external credit
attraction and private domestic invest-
mentandideallytheseeffectsshouldbe
positive.
This step will help identify and under-
stand the factors that can assist in
attracting the much needed capital and
the factors that disrupt the attraction.
If these are identified Government may
begin to immediately work on imple-
menting the factors that will improve
the liquidity situation in the short term
than develop the ones that have a long
term effect. Second, considering that
resources are extremely limited, the
Government needs to focus on spe-
cial and critical areas that need to be
addressed.
ZimAsset is a good policy but it is
extremely broad in the areas that need
to be sorted out yet funding is limited.
The State needs to take a specialisation
approach in resolving the economic cri-
sis rather than trying to divide the little
Government revenue it has on a large
number struggling sectors.
The Government needs to identify
the few well performing sectors at the
moment and try to focus of boosting
themsothattheybecomethedriversof
investment. Income from these sectors
will then be spread to the other strug-
gling sectors for their growth and devel-
opment. Because of the low revenue
levels the state has it is almost impossi-
ble that all sectors can be assisted ade-
quately at this point.
Third, Government should assertively
tap into the informal sector and illicit
activities that are feeding both external-
isation and the underground economy.
Zimbabwe is only a few steps and a few
decisionsawayfromrightingitswrongs.
•
11 analysis11 BH24 COMMENT
Few decisions needed to avoid economic depression
Minister Chinamasa

12. BH24

13. The Executive Board of the Interna-
tional Monetary Fund (IMF) yesterday
approved the immediate disbursement
of SDR 45.135 million (about US$63.6
million)totheRepublicofGuineatohelp
enhance international reserves, and
cover the budget and urgent balance of
paymentsneedsresultingfromthefight
against the Ebola crisis.
This follows the completion of the fund’s
fifth review of Guinea’s economic per-
formance under the program supported
by an Extended Credit Facility (ECF)
arrangement.
The West African country has now
received a total disbursement of SDR
136.935 million (about US$192.9 mil-
lion) under the ECF agreement.
The IMF said it also approved a request
for an extension of the current ECF
arrangement to end-December 2015;
it had in 2012 approved the three-year
ECF arrangement for Guinea on Febru-
ary 24, 2012, for SDR 128.52 million.
Naoyuki Shinohara, IMF’s Deputy Man-
aging Director, praised Guinea’s appro-
priate response to the humanitarian
andeconomiccrisiscausedbytheEbola
epidemic. He said that although the epi-
demic slowed growth in 2014, inflation
continued to decline despite the modest
exchange rate depreciation, while inter-
national reserves were maintained at a
satisfactory level.
“Despite these challenges, program
performance under the Extended Credit
Facility (ECF) arrangement was satis-
factory. All end-June 2014 performance
criteria and indicative targets, and most
indicative targets for end-September
were met. However, progress in struc-
tural reform has been slow, in large part
because of Ebola-related constraints on
capacity and delays in the delivery of
technical assistance,” said Shinohara,
who is also the chair of the Executive
board, in an IMF press statement.
Uncertainties about the impact and
duration of the Ebola epidemic dampen
the near-term macroeconomic outlook,
and real GDP is projected to contract in
2015. The 2015 budget, which appro-
priates resources to combat Ebola and
maintain a strong public investment
effort, envisages an expansion in the
fiscal deficit.
The January 2015 agreement on
increases in civil service wages is within
the limits of the 2015 budget, but
will reduce budgetary flexibility over
the medium term. The IMF says it is
important to ensure that recruitment
in the social sectors is implemented as
planned. The board adds that going
forward, the authorities should press
ahead with their civil service reform
to ensure that the wage bill remains
affordable and creates space for priority
expenditure.
The IMF also called for sustained assis-
tance from the international commu-
nity,throughtheprovisionofhighlycon-
cessional loans and grants and technical
assistance.
It said the authorities have proven their
commitment to ensure transparency in
Ebola-related spending and complete
their structural reform agenda under
the program, to help underpin a revival
in growth in the period ahead. — Ven-
tures Africa•
REGIONAL News13
IMF approves $63.6m loan for Ebola-hit Guinea

14. 14 DIARY OF EVENTS
The black arrow indicate level of load shedding across the country.
POWER GENERATION STATS
Gen Station
17 February 15
Energy
(Megawatts)
Hwange 275 MW
Kariba 614 MW
Harare 30 MW
Munyati 28 MW
Bulawayo 26 MW
Imports 100 MW
Total 1079 MW
Powerspeed Electrical AGM, 17 February 2015 at
1100 hrs, Powerspeed Complex Boardroom, Gate
1, Cnr Cripps road/Kelvin north rd.
26 February - 48th Annual General Meeting of
Mashonaland Holdings Limited; Place: Boardroom,
19th Floor, ZB Life Towers, 77 Jason Moyo Avenue;
Time: 1200 hours.
11 March 2015 - 3rd ZIMBABWE SME BANKING &
MICROFINANCE SUMMIT 2015; Place: Sango Con-
ference Center (Cresta Lodge Harare); Time: Time:
8.30am -4.30pm
THE BH24 DIARY

15. 15 zse
ZSE
Movers CHANGE Today Price USc SHAKERS Change TODAY Price USc
Zimplow 15,38 7.50 Fidelity -16.66 5.00
Innscor 1.67 59.99
Delta 0,86 116.00
Indices
Index Previous Today Move Change
Industrial 168.09 168.36 +0.27 points +0.16%
Mining 59.93 58.13 -1.80 points +3.00%
Stocks Exchange
PREVIOUS

16. 16 AFRICA StockS
Botswana 8,664.65 -11.96 -0.14% 12July
Cote dIvoire 249.37 -2.77 -1.10% 13Jan
Egypt 9,544.08 +235.10 +2.53% 14Jan
Ghana 2,259.78 -0.36 -0.02% 13Jan
Kenya 5,138.07 +16.08 +0.31% 13Jan
Malawi 14,904.99 +0.00 +0.00% 14Jan
Mauritius 6,693.78 -23.07 -0.34% 14Jan
Morocco 10,221.94 +195.15 +1.95% 13Jan
Nigeria 28,740.61 -1,149.25 -3.84% 14Jan
Rwanda 143.39 +0.20 +0.14% 02Oct
Tanzania 2,602.19 -30.74 -1.17% 28Oct
Tunisia 4,624.39 -39.32 -0.84% 07Mar
Uganda 1,942.77 -12.69 -0.65% 10Dec
Zambia 6,155.26 +3.96 +0.06% 12Jan
Zimbabwe 164.41 +0.66 +0.40% 14Jan
African stock round up Commodity Prices
Name Price
Crude Oil 1,300.91 -0.21%
Spot Gold USD/oz 1,292.63 -0.26%
Spot Silver USD/oz 19.38 -0.46%
Spot Platinum USD/oz 1,421.25 -0.33%
Spot Palladium USD/oz 798.50 -0.64%
LME Copper USD/t 6,770 -0.18%
LME Aluminium USD/t 1,780 -1.17%
LME Nickel USD/t 18,230 -1.73%
LME Lead USD/t 2,095 -1.41%
Quote of the day — Either
you run the day, or the
day runs you.
Globalshareholder.com

17. 17 INTERNATIONAL NEWS
FOR more than a fortnight, Europe’s
single warning to Greece has been that
the chaos and misery of national bank-
ruptcy await it unless its new govern-
ment changes its anti-austerity tune.
The message of impending doom
appears to have gone largely unno-
ticed on the streets of Athens, where
a mood of hope and optimism border-
ing on euphoria reigns as Greeks see
themselves finally shaking off foreign
shackles to shape their own destiny.
"Bankrupt but free" proclaimed a ban-
ner at a pro-government demonstra-
tion last Wednesday that drew thou-
sands.
Finance Minister Yanis Varoufakis was
isolated at Thursday’s crunch eurozone
meeting in Brussels, however, Greek
TV channel Mega’s main news broad-
cast gushed over him "stealing the
show".
"For the first time in years I feel proud
to be Greek," said Lena Dousiou, who
worked in a printing shop before being
laid off two years ago. "We went to the
Europeans with our head held high and
told them ‘Enough is enough!’"
Another TV feature on Mr Varoufakis
had the pop hit Can’t take my eyes
off you in the background. Far from
obsessing over a potential Greek
banking collapse or a euro exit after
Thursday’s talks ended without agree-
ment, Greek newspapers suggested a
"bridge" deal would soon be adopted.
"Spring in Athens, fog in Brussels" pro-
claimed Efimerida ton Syntakton on its
front page.
Two polls last week showed that over
three-quarters of Greeks support
Prime Minister Alexis Tsipras’s hardline
stance for a wholesale cancellation of
Greece’s bail-out programme, which
has alarmed Europe and left Athens
close to bankruptcy.
An opinion poll last week showed 79%
of Greeks backed Mr Tsipras’s policies
and74%believedhisnegotiatingstrat-
egy will succeed, even though Greece
hassofarfoundnotasingleallyamong
19 eurozone nations.
The mood is in stark contrast to 2012
when panic over a potential Greek
eurozone exit prompted Greeks to
vote in a pro bail-out government
despite popular discontent with the
programme. Two and a half years later,
the public mood has shifted from anger
to the point where many Greeks feel
they have nothing more to lose.
Austerity imposed as a condition of the
€240bn European Union-International
Monetary Fund bail-out has pushed
joblessness over 25% and cut incomes
by over a third.
"We’d hit rock bottom," said Minas
Kontogeorgopoulos, 59, who works in
a key-cutting shop. "The Europeans
have humiliated us. I don’t know if Mr
Tsipras will succeed but someone had
to tell them enough is enough."
The fledgling prime minister’s resound-
ing success on the domestic front,
while simultaneously horrifying policy
makers elsewhere, reflects the extent
to which Greeks resent the "humilia-
tion" of being told what to do by foreign
powers, a common theme in the Medi-
terranean nation’s history.
In an emotional first speech to par-
liament as prime minister, Mr Tsipras
mentionedtheword"dignity"11times.
A skilled orator with a keen sense of
the public mood, he has made restor-
ing Greek pride after four years of
"national humiliation" at the hands of
what he paints as dogmatic foreign
technocrats a cornerstone of his rhet-
oric. "We declare categorically that we
will not negotiate our history. We will
not negotiate the pride and dignity of
this people," he said.
While many European policy makers
see the Greek problem as a mostly
economic issue which Greeks must
resolve by following the terms of com-
mitments they have made to secure
money, for many Greeks it is a cultural
issue that taps into suspicions of nefar-
ious foreign interests and victimisation.
Much Greek resentment towards for-
eigners stems from the centuries when
it was under Ottoman rule, cut off in
what many Greeks saw as a backwater
away from the Renaissance and other
enlightenment progress enjoyed by
other Europeans.
There is also simmering discontent
with Germany’s Second World War
occupation, some of Britain’s colonial
exploits and the role the US played in
both the 1944-49 Civil War and the
1967-74 military dictatorship.
Many senior Syriza officials have spent
years portraying Greece as a victim of
foreign interests. — Reuters •
Greece shrugs off Europe warning of bankruptcy

18. By Bernard Bwoni
A recent report by the Oakland Institute
revealed that there are billionaires from
the West who have been buying and
grabbing land in Africa at a very con-
cerning rate.
These investors and hedge funders are
reportedly paying next to nothing for
these vast tracts of land in some Afri-
can countries. This is a worrying trend
and puts into context the Zimbabwe
land policy and reform. Interestingly in
South Africa in his State of the Nation
address, President Zuma said that for-
eignnationalswillnotbeallowedtoown
land in South Africa but will be for long-
term lease only.
The land reform debate in SA has been
taking centre stage with the country
exploring a 50-50 Policy framework on
rights to people who live and work on
farms. The Zimbabwe Land Reform
programme is a beckon of hope for
the historically and perennially disad-
vantaged and displaced Africans. Any
other African country in the same pre-
dicament as Zimbabwe was before the
land reform will have to go through the
same mire and mud Zimbabwe went
through to regain their land. It is such a
shame that some African countries are
relinquishing their God-given heritage
for a few pieces of silver. Zimbabwe is
a unique country and all the hard work
was not for nothing. There is no other
route to land reform in Africa except for
the Zimbabwe Model. Anything else is
child's play.
There is no universal definition of the
term property rights as everyone has
an opinion and vested interest in the
matter. The definition can and has been
evolving over time, thus considering
different perspectives, the historical
context and background underpinning
the Zimbabwe land and property rights
issue is necessary. Property rights
are not absolute but just a function of
what society is willing to acknowledge,
defend and enforce. They may need
to be adjusted at some point because
they do not evolve optimally on their
own. There is not enough empirical evi-
dence in Zimbabwe of how the complex
property rights package influences eco-
nomicbehaviourandassuchthosewho
remain fixated on property rights as
the panacea to Zimbabwe’s economic
woes are unreflective and insincere.
The Development Economist Daniel W.
Bromley in his book, Environment and
Economy: Property Rights and Public
Policy, argued “property rights do not
necessarily imply full ownership and
the sole authority to use and dispose
of a resource”. To be secure, property
rights should be of a sufficient duration
to allow one to reap the benefits of the
investment and should be backed by an
effective, socially sanctioned enforce-
ment institution. Zimbabwe has in place
ninety-nine year lease in place and that
is “a sufficient duration” for anyone to
benefit from their investment, case
closed.
The relationship between the rights
of the individual and the rights of the
community has been constantly chang-
ing and without doubt will continue
to evolve. We live in a complex and
dynamic world where conventional wis-
dom can be overturned for the good
of the majority and it is important to
acknowledgethatchangesintheoretical
views on property rights do take place.
During the unrestrained land grab by
the colonial settlers the rights of the
individual settlers took precedence over
the collective rights of the indigenous
community and in the new Constitution
the Zimbabwe government addressed
those inequalities created by these his-
torical interactions.
Much of the early property rights litera-
ture was quite optimistic about the evo-
lution of property rights towards eco-
nomic efficiency. The available literature
indicate that property rights form the
cornerstone of every Western country’s
economic modernisation and Hernando
De Soto even calls the system of legal
property rights the ‘’hidden architecture
of modern economies’’ and “if a devel-
oping country is willing to succeed eco-
nomically, property rights which have to
be well-defined must be enforced”. De
Soto of course did not factor in China
which “recognises the right to private
property but only as a right bestowed
by the state and not as a natural right’’.
And, by the way China, is by far the
fastest growing economy in the world
and is poised to edge the USA as the
biggest economy in the world by 2016
or so. My argument is that the property
rights construct and debate in Africa
was distorted by the colonialism and
imperialism’s accumulative streak and
18 analysis
Africa's only hope is Zim's land reform model
18 analysis

19. 19 analysis19 analysis
that makes De Soto’s claim invalid in
the African context. Property rights are
theoretical constructs in economics and
the discourse needs to reflect that espe-
cially on a uniquely multiplex case like
Zimbabwe. Property rights are formed
and enforced by political entities and
they reflect the historical context, the
conflicting economic interests and the
bargaining strength of those affected.
They are the social institutions that
define or delimit the range of privileges
granted to individuals of specific scarce
resources. In the modern economic lit-
erature the argument is that it makes
sense to have secure property rights as
it makes it easy to access finance and
creditfromfinancialinstitutionsandpro-
mote sustainable development.
Some contemporary development
economists have gone as far as stating
that sustainable development will only
come from stable property rights and
that markets are less efficient when
propertyrightsdonotexist.Fromathe-
oretical economic point of view that is
true however complexities in different
situations need to be acknowledged.
There is an element of imperialism that
has pervaded much of the discourse of
property rights on Zimbabwe. I have
looked into available literature on prop-
erty rights on Zimbabwe and there is
absolutely nothing and the question is
how do you make recommendations
withoutempiricalevidencefromrealities
on the ground?
Those who remained opposed to Zim-
babwe’s land reform have argued that
separation of provisions on property
rights from rights over agricultural land
is fatal as the section in the new Consti-
tution on agricultural lands restricts thus
running against natural justice. Chapter
4, Part 2, Section 72 of the Constitution
points out that access to agricultural
land is seen as a “fundamental right”
and that “every citizen of Zimbabwe
hasarighttoacquire,hold,occupy,use,
transfer, hypothecate, lease or dispose
of agricultural land regardless of his or
her race or colour’’. The new Constitu-
tionalsonotesthatfollowingthecolonial
occupation and the triumphant libera-
tion war “the people of Zimbabwe must
be enabled to re-assert their rights and
regain ownership of their land”. If you
readtheaboveclausesthentheissueof
secure property rights is not as conten-
tious as some would want the world to
believe. The land reform in Zimbabwe
is irreversible, and that is fact. Property
rights with regards to agricultural land
fall within the limits set by the State to
avoid abuse and the government has
set up the Land Commission to address
issues of abuse through a transparent
landauditwhichisstillpending,andthis
is all within the bounds of international
law. Chapter 4, Part 2, section 71 of the
new Constitution addresses the overall
issue of property rights fairly and again
in line with international law. The rights
areextendedtoallpeopleandtherights
to compensation are recognised. How-
ever the issue of property of agricultural
landneededtobeandwasaddressedin
line with the need to “redress the unjust
and unfair pattern of land ownership
that was brought about by colonialism”.
Conventional economic wisdom tells
you that economic progression is based
on strong foundation of secure property
ownership, but what it does not do is
take into account complex interactions
on the ground.
Chapter4,Part2,section72oftheCon-
stitution seeks to protect the continuing
rights of persons currently occupying or
using agricultural land under a lease or
other agreement with government and
states that the State must take appro-
priatemeasures‘’togivesecurityoften-
ure to every person lawfully owning or
occupying agricultural land”. The Con-
stitution states that, not all agriculture
land will not be State land and “owners
and occupiers will be allowed under
the provisions and limits of the law to
‘transfer, hypothecate, lease or dispose
of his or her right in agricultural land”. It
is important to understand the fact that
the property rights issue is insufficient
in explaining why capitalism has suc-
ceeded in the West but failed dismally in
other parts of the world.
The issue of property rights surely can-
not be absolute without taking into con-
sideration the realities on the ground.
The choices we make today are often
constrainedbythedecisionsandactions
of yesterday. History does matter and it
is history that shapes our futures. The
shifting relationships of property and
property rights in the Zimbabwean con-
text are contentious and as such it is
important to adopt a historical outlook
to it to garner a better understanding.
The discourse around the issue of prop-
erty rights needs to be reflective and
all-encompassing for better outcomes
forallZimbabweans.—benardbwoni.
blogspot.com •