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FM AMEMBASSY HARARE
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RUCNSAD/SOUTHERN AF DEVELOPMENT COMMUNITY COLLECTIVE
RUEHUJA/AMEMBASSY ABUJA 2214
RUEHAR/AMEMBASSY ACCRA 2662
RUEHDS/AMEMBASSY ADDIS ABABA 2783
RUEHRL/AMEMBASSY BERLIN 1253
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RHEHAAA/NSC WASHDC
RHMFISS/EUCOM POLAD VAIHINGEN GE
RUEHGV/USMISSION GENEVA 1952
RUZEJAA/JAC MOLESWORTH RAF MOLESWORTH UK
RHEFDIA/DIA WASHDC

UNCLAS SECTION 01 OF 03 HARARE 000163 
 
AF/S FOR B. WALCH 
ADDIS ABABA FOR USAU 
ADDIS ABABA FOR ACSS 
NSC FOR SENIOR AFRICA DIRECTOR 
STATE PASS TO USAID FOR L.DOBBINS AND E.LOKEN 
COMMERCE FOR ROBERT TELCHIN 
 
SIPDIS 
 
E.O.12958: N/A 
TAGS: PGOV PREL ASEC PHUM ECON ZI
 
SUBJECT: ZIM NOTES 02-27-2009 
 
----------- 
¶1.  SUMMARY 
----------- 
 
Topics of the week: 
 
- MDC and ZANU-PF Going Head to Head in Government... 
- SADC Looking to Raise US$2 Billion for Zimbabwe... 
- Roy Bennett Granted Bail, but Still in Jail... 
- Tsvangirai to Attend Bob's Birthday Bash? ... 
- USAID Employee Released... 
- WOZA Women Beaten-Again... 
- Commodity Prices Keep Falling... 
- Policy Tug of War on Dual-Listed Stocks... 
- Platinum and Diamond Companies Buck Gono Directive... 
- ZESA Told to Reconnect Customers... 
- Zimbabwe has Trade Surplus with U.S... 
- IMF Coming to Zimbabwe... 
 
----------------------------- 
On the Political/Social Front 
------------------------------ 
 
¶2.  MDC and ZANU-PF Going Head to Head in Government...On February 
24, President Mugabe unilaterally appointed a new slate of permanent 
secretaries-the third-ranking official in each ministry-without the 
"consultation and agreement" of the senior members of government 
(including the Prime Minister) as stipulated in the Interparty 
Political Agreement signed last September and in Amendment 19 to the 
Constitution. Tsvangirai immediately held a press conference and 
declared their appointments "null and void." He also said the 
appointments of Reserve Bank Governor Gideon Gono, Attorney General 
Johannes Tomana, and of provincial governors should be dealt with 
immediately, that Mugabe had agreed to the release of political 
detainees but this had not happened, and condemned the recent spate 
of farm seizures. See Harare 149. Mugabe publicly responded that the 
appointments of Gono, Tomana, and the permanent secretaries had been 
appropriately made. At week's end, government principals Mugabe, 
Tsvangirai, and Arthur Mutambara met to discuss these issues. 
 
¶3.  SADC Looking to Raise US$2 Billion for Zimbabwe... On the heels 
of Prime Minister Tsvangirai's fund-raising trip last week to South 
Africa, and after a meeting of SADC finance ministers including 
Zimbabwe's Tendai Biti, South African Finance Minister Trevor Manuel 
told the media on February 26 that SADC would seek to raise US$2 
billion in funds for Zimbabwe's recovery. The figure is less than 
the US$5 billion Tsvangirai said was necessary to rebuild the 
country. Half of the money would be spent on activities that would 
restore economic activity, while the other half would be directed 
towards restoring basic services such as health and education. 
Meanwhile, several of the new MDC ministers have been appealing for 
financial support, including new Education Minister David Coltart 
who estimated he needed US$483 million to resurrect the education 
sector. See Harare 156. 
 
¶4.  Roy Bennett Granted Bail, but Still in Jail... The incarcerated 
Deputy Minister of Agriculture, Roy Bennett, was granted bail by 
Zimbabwe's High Court. Zimbabwean law grants the State seven days in 
which to decide whether to appeal the bail decision and, pursuant to 
law, Bennett remains in custody for this period. Bennett's lawyers 
are optimistic that the State will not appeal and that Bennett will 
Qare optimistic that the State will not appeal and that Bennett will 
then be released. 
 
¶5.  Tsvangirai to Attend Bob's Birthday Bash? ... A spokesperson for 
Tsvangirai informed the press that the Prime Minister planned to 
attend Mugabe's lavish 85th birthday party this weekend. While his 
presence is certainly intended to strengthen their long-frayed 
relationship, Tsvangirai's attendance has drawn criticism at a time 
of great economic hardship for most Zimbabweans. The menu for the 
event purportedly includes 2,000 bottles of champagne, 8,000 
 
HARARE 00000163  002 OF 003 
 
 
lobsters, 200 pounds of shrimp, 4,000 portions of caviar, 8,000 
boxes of Ferrero Rocha chocolates, and 500 bottles of high-end 
liquor. Perhaps most offensive to hungry Zimbabweans was the boast 
that "no mealie meal or beef!" would be served. 
 
¶6.  USAID Employee Released... USAID employee Frank Muchirahondo was 
released from prison on February 24, after the State failed to make 
the case that he was involved in the alleged attempted assassination 
of Air Marshal Perence Shiri. Muchirahondo had been held in police 
custody since January 22. 
 
¶7.  WOZA Women Beaten-Again... At least nine members of Women of 
Zimbabwe Arise (WOZA) were treated for injuries inflicted by police 
and five were arrested on Wednesday when 450 members attempted to 
deliver a petition to Education Minister David Coltart. The 
petition, signed by 25,000, called on government to cancel the 2008 
school year and allow children to repeat the year at no charge. As 
of Friday morning, the five in custody had not yet been charged. 
Riot police indiscriminately beat protesters and chanted, "today we 
are going to beat you" and "why are your husbands allowing you to 
protest?" The arrested women sang "we want education for our 
children" as they were hauled off to jail. One woman sustained 
serious injuries and is unable to walk; another's toe was fractured 
when a policeman stomped on her foot. 
 
----------------------------------- 
On the Economic and Business Front 
---------------------------------- 
 
¶8.  Commodity Prices Keep Falling... A quick survey of six different 
shops in Harare on February 26 showed that prices of most basic 
commodities continued to fall during the week under review. The 
decline in prices ranged from as low as 4 percent for maize meal to 
as high as 30 percent for salt and sugar. Despite the recent 
declines, most prices are still above regional averages and are 
expected to fall further in the short term. 
 
¶9.  Policy Tug of War on Dual-Listed Stocks... Boding ill for the 
promotion of foreign investment, and hardly a week after Finance 
Minister Biti had restored trading of dual-listed shares offshore 
(i.e. their fungibility), Reserve Bank of Zimbabwe (RBZ) Governor 
Gono issued a directive on February 23 reversing the practice. The 
RBZ also reiterated its claim to 5 percent of hard currency sales of 
shops for "monitoring and administration" purposes. 
 
¶10.  Platinum and Diamond Companies Buck Gono Directive... 
Zimbabwe's established platinum and diamond mining companies are not 
complying with RBZ Governor Gono's directive to localize their 
foreign currency accounts and submit to greater RBZ control. See 
Harare 161. 
 
¶11.  ZESA Told to Reconnect Customers... The new Minister of Energy 
and Power Development has ordered Zimbabwe Electricity Supply 
Authority (ZESA) to reconnect consumers who had failed to pay its 
new forex rates until "appropriate tariffs" have been set. Following 
years of under-pricing, ZESA appeared to have set rates designed to 
Qyears of under-pricing, ZESA appeared to have set rates designed to 
recoup all its losses in the shortest time possible. With many 
people still being paid the bulk of their salaries in worthless 
local currency, the move drew the public's ire. 
 
¶12.  Zimbabwe has Trade Surplus with U.S... Interestingly, despite 
the U.S. targeted sanctions on Zimbabwe that have been blamed by 
ZANU-PF stalwarts for the country's economic decline, Zimbabwe 
posted a trade surplus in 2008 with the United States. In 2008, 
Zimbabwe exported US$112 million worth of goods to the U.S., 
dominated by minerals exports, and imported US$92.9 million worth, 
predominantly food, according to the U.S. Census Bureau. 
 
¶13.  IMF Coming to Zimbabwe... The IMF expects to arrive on March 8 
for a mission to Zimbabwe to assess the economic health of the 
 
HARARE 00000163  003 OF 003 
 
 
country and forestall future financial problems. 
 
 
------------------ 
Quotes of the Week 
------------------ 
 
¶14.  "Therefore the announcement of the permanent secretaries has no 
force of law and is therefore null and void." -- Morgan Tsvangirai 
in reference to the unilateral nomination by Mugabe of permanent 
secretaries. 
 
¶15.  "I do not see any reason why those people should go and they 
will not go." -- Robert Mugabe's response to calls to dismiss Gono, 
Tomana, and the permanent secretaries. 
 
 
MCGEE