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RR RUEHBZ RUEHDU RUEHJO RUEHMR RUEHRN
DE RUEHSB #0268/01 0891127
ZNR UUUUU ZZH
R 301127Z MAR 09
FM AMEMBASSY HARARE
TO RUEHC/SECSTATE WASHDC 4298
RUCNSAD/SOUTHERN AF DEVELOPMENT COMMUNITY COLLECTIVE
RUEHUJA/AMEMBASSY ABUJA 2258
RUEHAR/AMEMBASSY ACCRA 2737
RUEHDS/AMEMBASSY ADDIS ABABA 2859
RUEHRL/AMEMBASSY BERLIN 1305
RUEHBY/AMEMBASSY CANBERRA 2124
RUEHDK/AMEMBASSY DAKAR 2480
RUEHKM/AMEMBASSY KAMPALA 2907
RUEHNR/AMEMBASSY NAIROBI 5348
RHEHAAA/NSC WASHDC
RHMFISS/EUCOM POLAD VAIHINGEN GE
RUEHGV/USMISSION GENEVA 2026
RUZEJAA/JAC MOLESWORTH RAF MOLESWORTH UK
RHEFDIA/DIA WASHDC

UNCLAS SECTION 01 OF 03 HARARE 000268 
 
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 J. HARMON 
COMMERCE FOR ROBERT TELCHIN 
 
SIPDIS 
 
E.O.12958: N/A 
TAGS: PGOV PREL ASEC PHUM ECON ZI
 
SUBJECT: ZIM NOTES 03-27-2009 
 
----------- 
¶1.  SUMMARY 
----------- 
 
Topics of the week: 
 
- Parliament Getting its House in Order... 
- Zimbabwean Teachers Consider Striking... 
- Government Sponsors Stakeholders Meeting... 
- Cholera Continues to Decline... 
- Zimbabwe Hosts Tourism Conference... 
- Court Update... 
- Scandinavians Send Delegates to Zimbabwe... 
- UZ Postponed Again! 
- Banks Struggle to Pay US$ Allowances... 
- Kimberley Process Chair Gives Zimbabwe Kid-Glove Treatment... 
- IMF's Recommendations... 
- Biti's Revised Cash Budget... 
- Fungibility of Shares Restored... 
- Former Trade Minister Appointed Vice President of AfDB... 
 
----------------------------- 
On the Political/Social Front 
------------------------------ 
 
¶2.  Parliament Getting its House in Order...  Parliament has 
recently constituted the important Standing Rules and Orders 
Committee and is in the process of establishing Portfolio 
Committees, setting up a Standing Committee on the Constitution, and 
making appointments to the Media, Anti-Corruption and Electoral 
Commissions.  These new bodies will help enable Parliament to 
promote its legislative agenda and push reform, though any new 
legislation will likely originate from the executive branch. 
Parliament also resumed "question time," an important mechanism that 
allows MPs to ask policy questions of government ministers.  See 
Harare 264. 
 
¶3.  Zimbabwean Teachers Consider Striking...  Faced with 
government's continued inability to pay teachers a living wage in 
foreign currency, Zimbabwe's teachers are growing restless and may 
resort to a work stoppage if the situation does not improve in the 
next couple of months.  Currently teachers are only receiving the 
US$100 allowance paid to all civil servants.  Many teachers are 
frustrated because they returned to their posts after having been 
promised more substantial forex salaries by Prime Minister 
Tsvangirai, but recent statements by Education Minister David 
Coltart have made clear government does not have the funds 
available.  See Harare 246. 
 
¶4.  Government Sponsors Stakeholders Meeting...  The GOZ sponsored a 
stakeholders meeting with government officials, donors, and civil 
society which was promoted as an opportunity to engage in dialogue. 
Prime Minister Morgan Tsvangirai keynoted the day-long meeting.  A 
ministerial retreat is to take place next weekend. 
 
 
¶5.  Cholera Continues to Decline...  The World Health Organization 
reports that, for the week ending March 14, there was a 45 percent 
decrease in suspected new cases of cholera and a 39 percent decrease 
in deaths compared to the prior week, despite a reemergence of cases 
in Harare and Chitungwiza.  UNICEF reports that water supply 
chemicals in main urban areas are now secure.  On March 20, a water 
and sanitation-focused World Bank team finalized a one-week 
assessment mission to allocate emergency funds, and will likely 
initiate a US$10 million infrastructure repair project in Harare, 
with another US$3 million to be utilized as a pilot in suburban or 
Qwith another US$3 million to be utilized as a pilot in suburban or 
rural areas.  As of March 24, the cholera outbreak has claimed 4,077 
lives and affected more than 92,000 people. 
 
¶6.  Zimbabwe Hosts Tourism Conference... The Zimbabwean government 
 
HARARE 00000268  002 OF 003 
 
 
hosted a two-day tourism conference in Harare on March 25 and 26 in 
an effort to revive the country's moribund tourism industry. 
Concurrently, Minister of Tourism and Hospitality, Walter Mzembi, 
announced that the GOZ would initiate an emergency tourism revival 
fund.  On the heels of the well-attended conference, Japan announced 
that it would remove its travel advisory discouraging Japanese 
travel to Victoria Falls. 
 
¶7.  Court Update...  The case of three elderly white Zimbabweans -- 
arrested in early January on charges of training MDC activists in 
terrorism and banditry -- was removed from remand this week by 
magistrate Gloria Takundwa.  In addition, strict bail conditions for 
four of the seven accused of bombing police stations were relaxed; 
now they must report to police stations once per week rather than 
twice daily.  The trial of eight Women of Zimbabwe Arise women and 
two lawyers, arrested in connection with a Valentine's Day march, 
failed to start on March 25.  For the second time, police witnesses 
failed to appear for the trial.  The magistrate delayed the trial 
again to April 29. 
 
 
¶8.  Scandinavians Send Delegates to Zimbabwe...  Norway's 
Environment and International Development Minister, Erik Solheim, 
and Denmark's Minister for Development Cooperation, Ula Toernas, 
made separate trips to Zimbabwe to meet with President Robert Mugabe 
and other senior officials during the past two weeks.  The purpose 
of their visits was to evaluate conditions in Zimbabwe as a 
potential pre-curser to renewing ties and channelling assistance. 
Zimbabwean officials also pressed Denmark to lobby other EU members 
to lift sanctions.  The state-controlled media gave significant 
coverage to the visits and portrayed them positively, though both 
representatives were critical of the continued detention of 
political prisoners and rash of recent farm invasions. 
 
¶9.  UZ Postponed Again!  The University of Zimbabwe, scheduled to 
start its second semester of the 2008-09 academic year three months 
late next Monday, has postponed opening once again, this time to a 
date "to be advised in due course."  All faculty and staff at the 
university are still only being paid monthly US$100 allowances, so 
faculty and staff strikes would have been imminent had the 
university tried to open.  The only exceptions are the Medical 
School and the few, small graduate programs. 
 
----------------------------------- 
On the Economic and Business Front 
---------------------------------- 
 
¶10.  Banks Struggle to Pay US$ Allowances...  The GOZ again this 
month topped up the worthless Zimbabwe dollar salaries of its 
employees with a US$100 allowance.  Problems and lines arose at 
primarily non-bank financial institutions, where most civil servants 
bank, as these institutions struggled to pay out the allowance. 
With the official Poverty Datum Line for a family of five set at a 
very generous US$552 per month, even assuming cash distribution 
problems are solved, the meager allowance may lead to frustration 
Qproblems are solved, the meager allowance may lead to frustration 
and impatience.  See Harare 266. 
 
 
¶11.  Kimberley Process Chair Gives Zimbabwe Kid-Glove Treatment... 
KP Chair Bernard Esau of Namibia got a white-washed account from the 
GOZ of violence in the disputed Chiadzwa diamond field during his 
team's visit to Zimbabwe last week.  He made conciliatory remarks 
about the need for SADC to support Zimbabwe in his parting address 
to a select group of stakeholders.  See Harare 263. 
 
¶12.  IMF's Recommendations...  In a statement at the conclusion of 
the IMF's Article IV mission, the mission chief welcomed the new 
government's commitment to ending off-budget spending and matching 
expenditure to revenue in 2009.  He recommended greater 
accountability and transparency of the Reserve Bank and restricting 
 
HARARE 00000268  003 OF 003 
 
 
it to core central bank activities.  The mission chief also 
recommended strengthening the investment climate, ensuring property 
rights protection, and maintaining wages at competitive levels to 
increase investment.  See http://www.imf.org/external 
/np/sec/pr/2009/pr0993.htm. 
 
 
¶13.  Biti's Revised Cash Budget...  Despite the improvement in 
economic policy underlying Finance Minister Biti's revised budget, 
members of the recent IMF mission suggested that the government's 
revenue projection of US$1 billion was high.  We expect the IMF 
staff report to project a US$200 million deficit.  See Harare 260. 
 
¶14.  Fungibility of Shares Restored...  Following several policy 
flip flops, the Reserve Bank of Zimbabwe (RBZ) restored offshore 
trading of dually-listed shares on March 17, 2009.  For stock 
listings with full fungibility, investors can now buy shares from 
one stock exchange and transfer them to another exchange where the 
company is also listed.  Partially fungible shares will continue to 
trade in one direction --from overseas to Zimbabwe-- although the 
RBZ may consider full fungibility for these shares in order to raise 
capital for expansion projects. 
 
¶15.  Former Trade Minister Appointed Vice President of AfDB...  The 
Zimbabwe Independent reported today that former Minister of Industry 
and International Trade Nkosana Moyo has been appointed Vice 
President of the African Development Bank (AfDB).  Meanwhile, an 
AfDB private sector specialist was in Harare this week looking at 
the possibility of channeling credit to the private sector, and a 
further AfDB team is on an extended three-month mission in Zimbabwe. 
 
 
----------------- 
Quote of the Week 
----------------- 
 
¶16.  "Conditions, they're always setting conditions! It's their way 
of making us slaves. If Zimbabwe is to accept aid, it must be 
offered on a friendly basis. We will not bow to the donors." -- 
President Mugabe speaking at a joint press conference with the 
Norwegian development minister in Harare on March 25. 
 
 
MCGEE