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RUEHUJA/AMEMBASSY ABUJA 2269
RUEHAR/AMEMBASSY ACCRA 2782
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RHMFISS/EUCOM POLAD VAIHINGEN GE
RUEHGV/USMISSION GENEVA 2070
RUZEJAA/JAC MOLESWORTH RAF MOLESWORTH UK
RHEFDIA/DIA WASHDC

UNCLAS SECTION 01 OF 03 HARARE 000326 
 
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 04-17-2009 
 
----------- 
¶1.  SUMMARY 
----------- 
 
Topics of the week: 
 
- Outstanding Issues Still Outstanding... 
- Communications Portfolio in Limbo... 
- Constitutional Process Kicks Off... 
- Joint Independence Day Celebrations Planned... 
- MDC MPs Divided Over Cars... 
- U.S. Lauded for Lifting Travel Warning... 
- MDC MP Jailed for "Inciting Violence"... 
- MPs Charged With Diverting Agriculture Inputs... 
- Poverty Datum Line (PDL) Falls As Prices Continue To Drop... 
- Econet Wireless Secures 3G Frequencies... 
- Cholera and Election Violence's Toll on Tourism... 
- Stable Food Security Situation... 
- Cautious Optimism at Agribusiness Firm... 
 
----------------------------- 
On the Political/Social Front 
------------------------------ 
 
¶2.  Outstanding Issues Still Outstanding... The inaugural meeting of 
the Government Executive Committee, comprising President Robert 
Mugabe and his two vice presidents and Prime Minister Morgan 
Tsvangirai and his two deputy prime ministers which was to discuss 
outstanding issues-media, land invasions, appointments of governors 
and permanent secretaries, the stripping of MDC minister Nelson 
Chamisa's portfolios (see below), and Mugabe's failure to swear in 
Roy Bennett as Deputy Secretary of Agriculture-took place on 
Thursday and was adjourned without discussion of any of these 
issues.  ZANU-PF participants expressed uncertainty about what was 
called for in the Inter-Party Agreement, and who had what authority. 
 At Tsvangirai's suggestion, three of the Agreement's negotiators, 
Tendai Biti, Welshman Ncube, and Patrick Chinamasa, will discuss the 
Agreement and its mandates with the Committee on Monday. 
 
¶3.  Communications Portfolio in Limbo... The communications 
portfolio of the Ministry of Information and Communications 
Technology, headed by up-and-coming MDC minister Nelson Chamisa, was 
suddenly reallocated by Mugabe's office to the Ministry of Transport 
and Infrastructure Development, led by ZANU-PF minister Nicholas 
Goche.  While Chamisa and the MDC fight the reallocation, the 
government mouthpiece The Herald has already begun referring to the 
"Ministry of Transport, Communication, and Infrastructure 
Development."  Tsvangirai termed the move "illegal" and the MDC has 
stated it will not accept it.  Chamisa has threatened to quit if the 
action is not rescinded.  See Harare 321. 
 
¶4.  Constitutional Process Kicks Off... On April 12, the House of 
Assembly announced the formation of a Parliamentary Select Committee 
to direct the process to form a new Zimbabwean constitution. 
Members are divided between the three political parties.  The 
committee chair-who may come from outside Parliament-has not yet 
been chosen.  Civil society groups quickly opposed the process, 
arguing they are not adequately epresented.  See Harare 323. 
 
¶5.  Joint Independence Day Celebrations Planned... For the first 
time, MDC officials will join ZANU-PF at national Independence Day 
celebrations on April 18.  The main celebration will be led by 
Qcelebrations on April 18.  The main celebration will be led by 
President Mugabe at the National Sports Stadium.  Officials will not 
wear party regalia. 
 
¶6.  MDC MPs Divided Over Cars... The Reserve Bank of Zimbabwe 
distributed vehicles to MPs this week, despite protestations from 
Prime Minister Tsvangirai that the RBZ should cease all quasi-fiscal 
activities.  Some MDC MPs reportedly accepted vehicles against the 
MDC leadership's directive that no one should accept a vehicle from 
 
HARARE 00000326  002 OF 003 
 
 
the RBZ.  The Independent reports that some MPs have declared this 
"unfair" and have threatened to break away. 
 
¶7.  U.S. Lauded for Lifting Travel Warning... Given the improved 
availability of basic food, fuel, and health care in Zimbabwe, on 
April 8 the USG lifted the travel warning on Zimbabwe that was 
issued on December 12, 2008.  In a front page article in The Herald 
on April 16, the newspaper inaccurately states that the travel 
warning had been in place since 2002, making this big news that the 
paper optimistically expects the lifting will "open the floodgates 
for tourist arrivals." 
 
¶8.  MDC MP Jailed for "Inciting Violence"... MDC-T MP for Chipinge 
East, Mathias Mlambo, was arrested on April 13, accused of inciting 
violence at a funeral for an MDC member in his constituency on April 
¶10.  While Mlambo was at the graveside with the deceased's family, 
an altercation broke out nearby when ZANU-PF supporters reportedly 
taunted MDC supporters attending the funeral.  When the MP went to 
report the incident, police detained him and accused him of 
provoking the violence.  Mlambo has spent the week in jail, and a 
Chipinge magistrate is set to rule on bail conditions on April 17. 
Numerous MPs reporting incidents during election-related violence in 
2008 were also arrested in similar fashion. 
 
¶9.  MPs Charged With Diverting Agriculture Inputs... Six MPs from 
Masvingo province (5 MDC and 1 ZANU-PF moderate) are set to face 
trial May 5 for allegedly diverting a total of maize seed and 
fertilizer valued at near US$90,000. 
 
----------------------------------- 
On the Economic and Business Front 
---------------------------------- 
 
¶10.  Poverty Datum Line (PDL) Falls As Prices Continue To Drop... 
According to the Central Statistical Office, the PDL for a family of 
five, which stood at US$552 in February 2009, fell to US$461 in 
March in line with the general decline in prices of most food items. 
 Reputable independent estimates put the decline in Zimbabwe's 
general price level in March as high as 19 percent for low-income 
earners, who make up the vast majority of the population. 
 
¶11.  Econet Wireless Secures 3G Frequencies... According to the 
operations manager of Zimbabwe's largest mobile network operator by 
number of subscribers, Econet Wireless, the company has secured 3G 
frequencies from the Posts and Telecommunications Regulatory 
Authority of Zimbabwe.  How soon 3G will be available, however, is 
uncertain, as the associated equipment, which has been idle over the 
past three years, needs retesting before its deployment. 
 
¶12.  Cholera and Election Violence's Toll on Tourism... The Zimbabwe 
Tourism Authority reported a 24 percent decline in tourism receipts 
from US$365 million in 2007 to US$294 million in 2008. The fall is 
attributed to a sharp decrease in tourist arrivals caused by 
election-related violence, as well as the cholera outbreak in the 
latter half of the year.  Although violence and cholera are on the 
wane, the renewed wave of farm invasions is likely to prevent the 
Qwane, the renewed wave of farm invasions is likely to prevent the 
tourism industry from realizing its full potential yet again in 
¶2009. 
 
¶13.  Stable Food Security Situation... Zimbabwe's food security 
situation remained stable and food supplies improved in March due to 
the relaxation of restrictions on private sector trade and the 
subsequent increase in private sector activity, according to the 
March 2009 report of the Famine Early Warning Systems Network 
(FEWSNet).  Late summer harvests also improved household food 
supplies in both urban and rural areas.  See www.fews.net/zimbabwe. 
Separately, a team from the Alliance for a Green Revolution in 
Africa (AGRA), an organization chaired by former UN Secretary 
General Kofi Annan, visited Harare last week and is looking to 
initiate projects to improve food security for the 2010 harvest. 
 
HARARE 00000326  003 OF 003 
 
 
See Harare 306. 
 
 
¶14.  Cautious Optimism at Agribusiness Firm... CFI Holdings is 
optimistic that, with the liberalization of grain importation, it 
can up its capacity utilization from the current 20-25 percent level 
to 60-70 percent, albeit pending an injection of US$5 million in 
working capital.  The manufacturer of animal feed, flour and maize 
products stopped its grain outgrower scheme due to side marketing by 
farmers and now relies on imports.  With the increasing availability 
of stock feed, the company's poultry division has started exporting 
day-old chicks and hatching eggs to Europe. 
 
----------------- 
Quote of the Week 
----------------- 
 
¶15.  "So for them (MDC-T), after calling for the imposition of 
sanctions yesterday to go back to those  same people and say 'remove 
the sanctions' is difficult...  They will have psychological 
difficulties and we should help them get over it.  With time they 
will have summoned the courage to go to the same people and say we 
don't need them anymore." -- President Robert Mugabe, in his annual 
Independence Day interview with ZBC-TV. The Herald, Friday April 
¶17. 
 
 
MCGEE