Insane-Breaking-News: Pastor Evans Mawarire arrested during Church-Service today!

I’m just about to finish preaching and I’m told the police are waiting for me outside” – Evans Mawarire (24.09.2017).

Because of yesterday on Social Media while being in a que, the #ThisFlag founder and Opposition activist Evans Mawarire was discussing and showing the Bond Notes crisis and the lack of Petrol in Zimbabwe. Clearly, that didn’t run well with the authorities. The Zimbabwean African National Union – Patriotic Front (ZANU-PF), the ruling regime with President Robert Mugabe got a whiff of this and not strange. Since, even I watched the clip on Facebook yesterday.

This with the knowledge of the cost of 50 Cents bond-notes from the South African Mint that was ordered on the 20th September 2017, cost about $3 Million US Dollars. Therefore, before the money hit the streets and towns, the cost is huge for the state. This should worry anyone, this is just one order and one type that has been revealed. We can just wonder how much the Zimbabwean government has paid for other bond-notes from South African Mint. As the debt created by creation and the funds loaned by the Afreximbank. Therefore, the loans that has to repaid on the weak currency, that is now failing. Just like the bearers notes given in 2008. That is what Pastor Mawarire was discussing yesterday. The reason why he was detained while preaching today.

The Zimbabwe Republic Police has really overstepped, we know they have a grudge against the pastor and his civil activism. But taking him during a service is just out of order. Its shocking and insane. It’s like taking an MP while in the Parliament during a plenary session. How can you barge in to the church and arrest the fellow preacher? Are there no honour within the ZRP? Has not the double or triple doctorate of Mugabe any common sense?

Certainly, the Mugabe family is not that common anymore, since they are riding in expensive rides, while the public are in ques for petrol. That the people are on the black-market for the imported goods, while the industries and the exchange are growing. The running inflation of the currency, while the state trying spin-control it. Like it isn’t happening and the world doesn’t know.

If you want proof of impunity and nonsense. Just follow the trail of the civil activist in Zimbabwe, how they are threaten, treated and detained. Where else can a pastor be arrested while leading his church service with his congregation? Where else can a civil activist without court order or even a court ruling be detained for months upon end and released suddenly, that has happen to several activists. That proves how little Mugabe cares, except getting his wife pardoned for violence in South Africa. It is two classes of people in Zimbabwe, the ZANU-PF elite and the rest! Peace.

Zimbabwe: Letter from Ministry of Rural Development, Promotion and Preservation of National Culture and Heritage – “Appeal for Contributions towards Mash Central Presidential Youth Interference” (03.09.2017)

Zimbabwe: The Bond-Notes are creating higher prices on goods and a big black-market for currency exchange!

The launch of the Bond Notes has been hectic and been untrustworthy. Zimbabwe has been hit with economic difficulties, as to the policies and thieving of the state reserves. That is why the inflation and value of the currency dwindles. As well, as the lack of trust of the currency and the central reserves issued notes, are the reason for the troubling issues with the monetary policies. The Zanu-PF government have been more preoccupied with serving themselves, than the people who are spending the notes.

The questions in the beginning of the of the current value of a note issued on a loan through Afrieximbank, this means the state was taking on debt. This is was to issue a new currency, a temporary note that was gaining new debt to the state. Just take a look!

Chakravarti, a University of Zimbabwe economics professor, said keeping the peg is only depreciating the value of the Real-Time Gross Settlement system (RTGS). He noted that the Confederation of Zimbabwe Industries had revealed that the RTGS premium to real money is now at 30%, meaning if one had US$1 000 in RTGS, they only have US$700 in real money. He added that it was “pointless” to have the Afrieximbank facility, which the central bank said backs the bond notes, if it is not convertible.” Chakravarti said it was unhealthy for the economy to have government crowding out funding for the private sector. He noted that the country has the highest tax-to-GDP in Africa which is 30% against the continental average of 22%, a situation he described as unviable. Chakravarti predicted that by December this year bond notes will constitute 50 to 60% of the currency in circulation which will qualify it as a local currency” (Ndebele & Kuwaza, 2017).

Dollarisation has two forms, namely, official/de jure and unofficial/de facto. BMI Research found that an increase in bond notes was actually de-dollarising the economy. BMI Research warned last week that increasing money supply would contribute to an accelerated growth of inflation from 1,4% by year-end to 8,5% in 2018 — making the steepest growth since 2009. “The Reserve Bank of Zimbabwe’s (RBZ) decision to more than double the size of its bond-note programme — to $500m from $200m previously — confirms our view that the country is headed towards de jure de-dollarisation,” it said” (Zwinoira, 2017).

Because Zimbabwe imports more than it exports, the black market is now influencing pricing trends. As such, a transfer now attracts a 48 percent premium, while cash transactions for smaller denominations range between eight and 9,5 percent, depending on the currency involved. For larger notes such as US$50 and $100, it can cost the buyer up to 10 percent. The majority of companies, whose payments fall outside the Reserve Bank of Zimbabwe (RBZ) priority list for accessing the elusive US dollars in banks, rely on bank transfers to get the coveted currency on the parallel market. As a result, prices for all basic consumer goods have gone up by between 20 and 50 percent as companies and retailers pass on the costs to the ordinary consumer” (Bulawayo24, 2017).

We can easily see that the trustworthy levels of Bond-Notes isn’t there, as the businesses not connected with Reserve Bank of Zimbabwe payment system makes the exchange of currency more expensive. The trust was already bad before the issue of the bond-notes before June 2016. It haven’t got better, it is worse as the percentage cost is 10%.

Therefore, the value of the Bond-Notes has made ordinary life harder. The prices on ordinary goods has gone up. This because of the issue of the Bond-Notes and the whole fiscal policy, that is clearly not working. Peace.

Reference:

Bulawayo24 – ‘Value of Bond Notes Tumbles’ (05.09.2017) link: http://bulawayo24.com/index-id-business-sc-economy-byo-117175.html

Ndebele, Hazel & Kuwaza, Kudzai – ‘Officialise bond notes, govt told’ (01.09.2017) link: https://www.theindependent.co.zw/2017/09/01/officialise-bond-notes-govt-told/

Zwinoira, Tatira – ‘‘Zim heading towards de-dollarisation’ (04.09.2017) link:https://www.newsday.co.zw/2017/09/04/zim-heading-towards-de-dollarisation/

Press Statement by Hon. Kasukuwere responding to allegations of trying to topple President Mugabe (20.04.2017)

Zimbabwe: Moto Republik Demolition Press Release (10.03.2017)

Opinion: A 93 year old, apparently doesn’t need succession!

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The President of Zimbabwe, President Robert Mugabe, the man who is in the psalms, who was written to stay as a leader and even be voted on after death, that is if Grace Mugabe, the first lady gets her wish. The Zanu-PF which was created by him as he mended to parties together when he got rid of a rival; so many forgets the past history of how ZANU became Zanu-PF. The Patriotic Front was sucked into the merger for the political ambition of President Mugabe, as he swallowed and got rid of Joshua Nkomo. Nkomo also lost his party as it became one party Zanu-PF.

Therefore listening to the President and leader of decades upon decades Mugabe had to say this on his 93rd birthday:

“PRESIDENT Mugabe has warned ambitious lieutenants in his party who are angling to succeed him to stop fanning divisions, saying he will not be pressured into appointing his successor” (…) “He slammed succession-driven factional divisions in Zanu-PF, called for unity in the ruling party, and reaffirmed his position that whoever would succeed him was going to be chosen by the people through an election” (Gono, Mukarati & Tshuma, 2017).

The man who will run and continue to be the kingpin, the grand master of Zimbabwe, President Mugabe will not leave the republic and the reign before his last breath. The lasting regime and the will to stay is not only for his benefit, but for his closest allies and elite. The ones who drives flash cars in Harare, who owns the banks and export resources to abroad, also the ones who sells special-made cakes, lays chips and all sort of imported goods. That is who keeps breathing air into the Zanu-PF regime and Mugabe’s continues reign.

The ones who thinks this isn’t eating he system, isn’t costing the republics coffers, the possibility for good governance and accountability are not there with a man who rules and give the rules, without following any common-sense himself. A man has used any trick possible in the book and use all sort force to gain his will.

Are now imposing him and continuing his ill-will reign with the force of his army and sometimes like in the past mercenaries or paid forces from North Korea even. Because Mugabe doesn’t believe in democracy, but in his power to reign by all means!

Also, so his family can benefit and earns wealth on his reign. The Mugabe clan must surely have become rich from all of these years. If not why would he not step down and give way for somebody else? That is because he knows that all that is created around him and his family de facto disappears the day he leaves. However, the Mugabe name will tarnish history of a liberator turned Orwellian master. Nobody foresaw the transformation, but over time he has showed more and more traits of a scrupulous leader who use any means to stay and to forge the power around him. Therefore, the ones near him and the first lady are loyal fellows with no spine. If they had spine they would be beaten by the Police in protest, getting produced in courts or starving, even lacking civil service salaries. That is the means of lacking of governance and institutions as it all is and has been all Mugabe.

So there is no surprise, that the future casket President and the one ruling into death. So why be subtle about it. That is not the need of the Mugabe regime now. They are beating civilians, detaining civilian activists and silencing the opposition. Therefore, they feel invisible to anyone who thinks they can bring down President Mugabe. Peace.

Reference:

Gono, Vincent, Mukarati, Levi & Tshuma Nduduzo – ‘NO PRESSURE ON SUCCESSOR: President speaks on party divisions, bond notes’ (26.02.2017) link: http://www.sundaynews.co.zw/no-pressure-on-successor-president-speaks-on-party-divisions-bond-notes/

Zimbabwe: United Bulawayo Hospitals – “Re: Industrial Action by Junior Doctors” (20.02.2017)

bulawayo-20-02-2017

#ThisFlag: “Back to the issues. The dreams of our youths have been stolen and we need to salvage those dreams somehow” (Footage)

Footage: Evan Mawarire update from Courts earlier today (17.02.2017)

“Update from the courts earlier today. Matter has been postponed to March 16 because the state was not ready. Our resolve remains steady in uniting the citizens of Zimbabwe as we prepare for the coming season of change. #ThisFlag” (Evan Mawarire, 17.02.2017)

Reserve Bank Gov. Mangudya says the economy of Zimbabwe is an ‘albatross’!

john-mangudya-rbz-ken-y-11-may-16

The Governor Dr. J.P. Mangudya Zimbabwean Reserve Bank writes a special piece on the Zimbabwean economy, not as bleak as the one Finance Minister P.A. Chinamasa wrote in mid-year report of 2016. The Monetary Policy Statement (MPS), of January of 2017, as still evident of the issues in the Zimbabwean economy. With the knowledge of the debt-burden that has arisen together with the suspended international loans, the state funds has funds dwindled. Also, the monetary and fiscal prudence has been weakening as told by the governor of the Reserve Bank. The Governor even called the Zimbabwean Economy an “albatross”, the rest of it says it all.

Zimbabwean economy needs to catch up:

“The positive spin-offs from the recent removal of Zimbabwe from the International Monetary Fund (IMF) remedial measures, following successful clearance of its arrears to the Fund in October 2016, are also expected to go a long way in reducing Zimbabwe’s country risk, thus attracting the much needed foreign investment. Completion of the clearance of external debt arrears to the rest of the international financial institutions – African Development Bank (AfDB), World Bank and European Investment Bank (EIB) – is expected to further reduce the country’s debt burden that continues to be an albatross on Zimbabwe’s access to foreign finance for the past 16 years now at a time when other emerging markets have been making tremendous strides in their economic transformation. As a consequence, Zimbabwe has lagged behind and needs to catch up with its peers” (Mangudya, P: 6-7, 2017).

Reactions to drought:

“In 2016, food imports (maize and wheat), however, surged owing to the El Nino induced drought that destroyed crops in the Southern African region, including Zimbabwe. Continued reliance on imports of finished goods is unsustainable as it undermines current efforts to resuscitate domestic industrial production, leading to significant trade and current account deficits” (Mangudya, P: 15, 2017).

Other key development:

“Driven by merchandise trade developments, the current account deficit is estimated to have narrowed down by about 15.5%, from a deficit of US$1,519.4 million in 2015, to a deficit of US$1,283.9 million in 2016, partly on account of the projected decline in the import bill. Remittances, which are also a major source of import financing declined by 17.9% in 2016, from US$1,917.7 million received in 2015 to US$1,574.0 million in 2016. Of the total amount received in 2016, US$779.0 million reflects remittances from the Diaspora while remittances from International Organizations (NGOs) amounted to US$795.0 million” (Mangudya, P: 16, 2017).

Problematic government loans:

“Reflecting developments on both the current and capital account, the overall balance of payments position is estimated to have deteriorated from a deficit of US$25.8 million in 2015 to a deficit of US$186.4 million in 2016. This phenomenon reflects an unsustainable economic situation of funding capital projects using loans as opposed to equity. The danger with this scenario is that debt would become unsustainable as exports are mortgaged towards debt repayments” (Mangudya, P: 19-20, 2017).

Unbalanced economy:

“The fact that the 14.4% of the country’s foreign receipts handled by RBZ for redistribution into the market seems to have more impact in the economy is a sign of market failure. The Bank shall quickly move to redress this market failure through measures that compel banks to adhere to the import priority list and to mitigate against institutional indiscipline such as the use of more foreign exchange for personal card and DSTV transactions ahead of raw materials to produce cooking oil, for example. Financial institutions should do some soul searching and rethink on how they add value to the economy under the New Normal” (Mangudya, P: 67, 2017).

Bond- Notes introduction:

“The Bank is encouraged by the manner in which the nation embraced bond notes. The Bank has to date issued $94 million of bond notes into the market against an aggregate value of the export incentive of $107 million. Whilst the circulation of the bond notes represented by levels of deposits and withdrawals is also encouraging, the Bank is putting in place a redistributable measure that mitigates against skewed concentration of bond notes within the banking sector by limiting the maximum amount of bond notes that each bank should hold at any given point in time in relation to its level and type of transactions. This measure is necessary to ensure that bonds notes are distributed proportionately according to the customer base or customer profile of each banking institution” (…) “The Bank is directing financial institutions to strictly observe the policy to deposit bond notes into the US$ accounts without requesting the banking public to differentiate between bond notes and US$ cash. This measure is essential to ensure that bond notes continue to trade at parity with the US$ and to reflect the fact that bond notes are supported by the US$200 million offshore facility to support the demand for foreign exchange attributable to bond notes” (Mangudya, P: 67-68, 2017).

When you see this numbers alone, there would be more meat in the report that says lots of the downfalls of the economy. The Governor said the fiscal issues and debt, together with the lacking of imports and exports, the short and less infused funds. With that in mind, instead of pounding on the troubled economy, we should rather enjoy a moment of explanation of why albatross is so dire:

“something or someone you want to be free from because that thing or person is causing you problems” (Cambridge Dictionary) and this one too: “a continuing problem that makes it difficult or impossible to do or achieve something” (Merriam Webster Dictionary). So the Albatross for the Zanu-PF is the economy, even as they eat of it and deplete it. However, the turbulence and insecurity isn’t over as the trust in the Bond-Notes or the other factors as the New Normal isn’t giving. Peace.

Reference:

Dr. J.P. Mangudya – ‘“Stimulating Economic Growth and Bolstering Confidence”’ – Monetary Policy Statement, Reserve Bank of Zimbabwe (RBZ)